MIRA INFORM REPORT

 

Report No. :

325369.2

Report Date :

08.06.2015

 

IDENTIFICATION DETAILS

 

Name :

ENERTECH SYSTEMS INDUSTRIES INC.

 

 

Registered Office :

3855 Technology Road, Prenza II, Marilao, Phils

 

 

Country :

Philippines

 

 

Financials (as on) :

2013

 

 

Date of Incorporation :

14.12.1979

 

 

Legal Form :

Private Corporation

 

 

Line of Business :

Manufacturer & supplier of industrial steam boiler.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Philippines

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

PHILIPPINES - ECONOMIC OVERVIEW

 

The economy has weathered global economic and financial downturns better than its regional peers due to minimal exposure to troubled international securities, lower dependence on exports, relatively resilient domestic consumption, large remittances from four- to five-million overseas Filipino workers, and a rapidly expanding business process outsourcing industry. The current account balance had recorded consecutive surpluses since 2003; international reserves are at record highs; the banking system is stable; and the stock market was Asia's second best-performer in 2012. Efforts to improve tax administration and expenditure management have helped ease the Philippines' tight fiscal situation and reduce high debt levels. The Philippines has received several credit rating upgrades on its sovereign debt, and has had little difficulty tapping domestic and international markets to finance its deficits. Economic growth in the Philippines averaged 4.5% during the MACAPAGAL-ARROYO administration, but poverty worsened during her term. Growth has accelerated under the AQUINO government, but with limited progress thus far in bringing down unemployment, which hovers around 7%, and improving the quality of jobs. Underemployment is nearly 20% and more than 40% of the employed are estimated to be working in the informal sector. The AQUINO administration has been working to boost the budgets for education, health, cash transfers to the poor, and other social spending programs, and is relying on the private sector to help fund major infrastructure projects under its Public-Private Partnership program. Long term challenges include reforming governance and the judicial system, building infrastructure, improving regulatory predictability, and the ease of doing business, attracting higher levels of local and foreign investments. The Philippine Constitution and the other laws continue to restrict foreign ownership in important activities/sectors (such as land ownership and public utilities).

 

Source : CIA

 

ANTECEDENT INFORMATION

 

Company:                 ENERTECH SYSTEMS IND. INC.

Address:                   3855 Technology Road, Prenza II, Marilao, Phils. 

Country:                    Philippines

Service Type:            Normal

 

 

VERIFICATION WITH SECURITIES & EXCHANGE COMMISSION (SEC)

 

Legal Entity       -     PRIVATE CORPORATION
 

- REGISTRATION –  (Per General Information Sheet (GIS) for Year 2013)

 

 

a)     Certificate No.           :      0000090210

b)    Date                          :      December 14, 1979

c)     Term                         :      Fifty (50) years

d)    Company Type         :      Stock Corporation

e)     TeleFax No.              :      (63) 044 769 8019

f)     Corp. Tax ID No.      :       000 372 708 000

g)    Email                        :       lbcariaga@enertech.com.ph

 

 

      Address:   No. 3855   Bayan-Bayanan Street, Prenza II, Marilao, Bulacan

                             

     (Note:  Currency in Philippine Peso, unless otherwise specified)

          

     

-       CAPITALIZATION -    (As of 2013)

 

Authorized Capital Stock                           -       50,000,000.     –   500,000  Shares Common

 

Amount Subscribed  & Paid Up                 -       35,000,000. 

    

Par value per Share                                  -                 100.

 

 

-       PRIMARY PURPOSE:   General & specialty contractors for the fabrication, supply, distribution of

steam boilers & generating plants, controls & instrumentation, panel boards, energy related

equipment.                                        

                         

             STOCKHOLDERS/DIRECTORS/OFFICERS  (As of 2013)

 

              Name / Nationality

         Position

Amount  Paid Up

Guillermo C. Simeon

Chairman/Pres. & CEO

       29,747,700.

Azucena B. Simeon

Treasurer

         5,249,300.

Leonora B. Cariaga

Corp. Secretary

                1,000.

Felipe S. Baroga

Director

                1,000.

Jules Gerald B. Simeon

VP-Business Dev’t.

                1,000.

Ma. Zerlina Simeon-Tolentino

Co-CEO

             NIL

Ceasar C. Acosta

COO

             NIL

Roberto L. Zuniga

VP – Quality

             NIL

Marsulin L. Danila

Engineering Manager

             NIL

Edrick B. Lamug

Production Manager

             NIL

Ben H. Quendangan

Operation Manager

             NIL        

 

 

        35,000,000.

        vvvvvvvvvv

 

    

 

 

 

           

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS ACTIVITY 

 

As gathered, subject firm, a “complete  boiler technology solution”. A leading  manufacturer & supplier of industrial steam boiler to the various industries in the Philippines and other Asian countries. It’s modern fabrication plant in a 3 hectares lot in Marilao, Bulacan, to export biomass, oil & gas fired boiler products to Malaysia, Vietnam, and other countries. The plant houses its state of the art manufacturing facilities from computerized plate bender/roller, plate cutting & fan balancing, submerge arc welding machine.

 

Specialties – Engineering design; turnkey projects; fabrication of industrial boiler; biomass fired combination boiler; material handling system; build & operate transfer for steam & power outsourcing, wet-back package Fire Tube boiler, & water tube boiler.

 

Address: 3855 Technology Road, Prenza II, Marilao, Bulacan, Philippines

Tel Nos. (02)  986-5132; 985-9565; 401-3862

              (044) 769-8016-17

Fax No.  (044) 769-8019

Email:  enertech@enertech.com.ph

Website: www.enertech.com.ph  

 

 

FINANCIAL CONDITION

 

(Audited Financial Statement for years 2013, 2012, & 2011, as compiled)

 

                                                                                 BALANCE SHEET

                  

                                                          ASSETS

         

         2013

        2012

       2011

          Current Asset

 

 

 

Cash

     4,542,063.

     2,093,688.

       6,750,765.

Account Receivables

   95,792,507.

   73,958,950.

     83,916,355.

 Inventories

   51,219,632.

   70,813,974.

     47,306,349.

Prepaid Taxes & Other

    Current Assets

 

   12,288,662.

 

   13,722,856.

 

     13,175,379.

Total Current Assets

 163,842,864.

 160,589,468.

   151,148,848.

 

 

 

 

       Non Current Assets

 

 

 

Investment Property

   16,184,000.

   16,184,000.

     16,184,000.

Property & Equipment, net

   65,802,790.

   58,504,984.

     57,554,202.

Available for sale –  

    Financial Assets

 

        500,000.

 

        500,000.

 

          500,000.

Advances to Stockholders

     1,904,768.

     1,904,768.

       4,033,970.

Deferred Tax

     4,047,435.

     3,728,758.

       3,410,081.

Other Non-Current Assets

     8,958,132.

     8,958,132.

       9,318,133.

Total Non Current Assets

   97,397,125.

   89,780,642.

     91,000.386.

TOTAL  ASSETS

 261,239,989.

vvvvvvvvvvvv

 250,370,110.

vvvvvvvvvvvv

   242,149,234.  

   vvvvvvvvvvv

                                               

                         

LIABILITIES AND STOCKHOLDER’S EQUITY

 

         Current Liabilities

 

 

 

Account Payable -  Trade

   49,146,628.

   53,282,544.

  38,146,656.

Customers’ Deposit

   23,401,594.

   41,472,162.

  55,090,936.

Notes Payable

   67,818,228.

   55,294,279.

  55,964,463.

Trust Receipts Payable

   22,579,805.

     8,092,685.

    2,280,855.

Accrued Expenses & other

   Current liabilities

 

   21,644,053.

 

   18,005,569.

 

  20,483,636.

Total Current Liabilities

 184,590,308.

 176,147,239.

171,966,546.

  

 

 

 

    Non Current Liabilities

 

 

 

Notes Payable

        NIL

      1,728,586.

    1,728,586.  

Deferred Tax Liability

    4,384,356.

      4,384,356.

    4,384,356.

Retirement Benefits

     Obligation

 

  12,446,004.

  

    11,383,748.

 

  10,321,492.

Total Non-Current

     Liabilities

 

  16,830,360.

 

    17,496,690.

 

  16,434,434.

Total Liabilities

201,420,668.

  193,643,929.

188,400,980.

 

 

 

 

            Equity

 

 

 

Share Capital

  35,000,000.

    20,000,000.

  20,000,000.

Retained Earnings:

    Appropriated

    Unappropriated

 

    5,000,000.

  19,819,321.

 

    36,726,181.

       NIL

 

  10,000,000.

  23,748,254.

Total Equity

  59,819,321.

    56,726,181.

  53,748,254.

TOTAL LIABILITIES &   

    EQUITY

261,239,989.

vvvvvvvvvvv

  250,370,110.

vvvvvvvvvvvv

242,149,234. vvvvvvvvvvvv

 

 

INCOME STATEMENT

                       

Revenues

  286,448,270.

   202,535,237.

     273,678,192.

Gross Profit

    73,749,176.

     60,901,359.

       81,360,645.

Operating Expenses

(   64,838,543.)

(    51,512,256.)

(      69,198,425.)

Income from Operation

      8,910,633.

       9,389,103.

       12,162,220.

Other Income (Charges)

   Interest & Bank Charges

   Interest & Dividend Inc.

   Miscellaneous Income

 

(    5,223,549.)

          24,916.

     1,727,926.

 

(      6,764,896.)

            12,567.

       1,612,021.

 

(        6,631,137.)

              41,309.

            691,209.

 

(    3,470,707.)

(      5,140,309.)

(        5,898,619.)

Net Income before Tax

     5,439,926.

       4,248,794.

         6,263,601.

NET INCOME

     3,093,141.

  vvvvvvvvvvv

       2,977,926.

   vvvvvvvvvvv

         4,131,776.

      vvvvvvvvvvv

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.90

UK Pound

1

Rs.97.97

Euro

1

Rs.71.82

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

VNT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.