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MIRA INFORM REPORT
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Report No. : |
503734 |
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Report Date : |
19.04.2018 |
IDENTIFICATION DETAILS
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Name : |
PORTAL STEELS INC. |
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Registered Office : |
B2 Sitio Gitna Tatalon St.,Ugong, Valemzuela City, Metro Manila |
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Country : |
Philippines |
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Financials (as on) : |
2015 |
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Date of Incorporation : |
05.02.2013 |
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Legal Form : |
Private Limited Liability Corporation. |
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Line of Business : |
General contracting business with any party, including the
constructing, repairing, remodeling operation |
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No. of Employees : |
Not available |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Philippines |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
PHILIPPINES - ECONOMIC OVERVIEW
The economy has been relatively resilient to global economic shocks due to less exposure to troubled international securities, lower dependence on exports, relatively resilient domestic consumption, large remittances from about 10 million overseas Filipino workers and migrants, and a rapidly expanding services industry. During 2017, the current account balance fell into the negative range, the first time since the 2008 global financial crisis, in part due to an ambitious new infrastructure spending program announced this year. However, international reserves remain at comfortable levels and the banking system is stable.
Efforts to improve tax administration and expenditures management have helped ease the Philippines' debt burden and tight fiscal situation. The Philippines received investment-grade credit ratings on its sovereign debt under the former AQUINO administration and has had little difficulty financing its budget deficits. However, weak absorptive capacity and implementation bottlenecks have prevented the government from maximizing its expenditure plans. Although it has improved, the low tax-to-GDP ratio remains a constraint to supporting increasingly higher spending levels and sustaining high and inclusive growth over the longer term.
Economic growth has accelerated, averaging over 6% per year from 2011 to 2017, compared with 4.5% under the MACAPAGAL-ARROYO government; and competitiveness rankings have improved. Although 2016 saw a record year for net foreign direct investment inflows, FDI to the Philippines has continued to lag regional peers, in part because the Philippine constitution and other laws limit foreign investment and restrict foreign ownership in important activities/sectors - such as land ownership and public utilities.
Although the economy grew at a rapid pace under the AQUINO government, challenges to achieving more inclusive growth remain. Wealth is concentrated in the hands of the rich. The unemployment rate declined from 7.3% to 5.5% between 2010 and 2016, but underemployment hovers at around 18% to 19% of the employed population. At least 40% of the employed work in the informal sector. Poverty afflicts more than a fifth of the total population but is as high as 75% in some areas of the southern Philippines. More than 60% of the poor reside in rural areas, where the incidence of poverty (about 30%) is more severe - a challenge to raising rural farm and non-farm incomes. Continued efforts are needed to improve governance, the judicial system, the regulatory environment, the infrastructure, and the overall ease of doing business.
2016 saw the election of President Rodrigo DUTERTE, who has pledged to make inclusive growth and poverty reduction his top priority. DUTERTE believes that illegal drug use, crime and corruption are key barriers to economic development. The administration wants to reduce the poverty rate to 17% and graduate the economy to upper-middle income status by the end of President DUTERTE’s term in 2022. Key themes under the government’s Ten-Point Socioeconomic Agenda include continuity of macroeconomic policy, tax reform, higher investments in infrastructure and human capital development, and improving competitiveness and the overall ease of doing business. The administration sees infrastructure shortcomings as a key barrier to sustained economic growth and has pledged to spend $165 billion on infrastructure by 2022. However, the need to finance rehabilitation and reconstruction efforts in the southern region of Mindanao following the 2017 Marawi City siege probably will inhibit other spending on infrastructure.
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Source : CIA |
ANTECEDENT
INFORMATION
Company: PORTAL STEELS INC.
Address: 1401-A ONE
CORPORATE CENTER, J. Vargas St. corner Meralco, Avenue corner Meralco
Avenue, Ortigas Center, Pasig City.
Country: Philippines
Service Type: Normal
Contact Person: Colly
Tan, Managing Director
Email: colly@silverdragon.sg.
FINDINGS
We conducted research
and investigation on PORTAL STEELS INC. and showed the following, viz:
VERIFICATION
WITH SECURITIES & EXCHANGE COMMISSION (SEC): PORTAL STEELS INC.
Legal Entity -
PRIVATE. Limited Liability
Corporation.
REGISTRATION
(Per General
Information Sheet (GIS) filed Feb. 12,
2016, latest on file.)
Certificate No. : CS201302310
Date :
February 05, 2013
Term :
Fifty (50) years
Company Type : Stock Corporation
Telephone No. : (632)
921-0086
Corp. Tax ID No. : 008-463519-000
Email : portal_scrap@yahoo.com,
Kristine Bensurto (sdz_scrap@yahoo.com
Principal/Business
Address: B2 Sitio Gitna Tatalon
St.,Ugong, Valemzuela City, Metro Manila
(Note: Currency in Philippine Peso, unless otherwise
specified)
CAPITALIZATION
(As of 2016)
Kind of No. of Par Value
Share Shares per
Share Amount
Authorized Capital
Stock - Common - 300,000
- 100. 30,000,000.
Subscribed
Capital - Common - 75,000
- 1,000. 75,000,000.
Paid Up Capital - Common -
18,753 -
1,000. 18,753,000.
PRIMARY
PURPOSE
To carryon and
conduct general contracting business with any party, including the
constructing, repairing, remodeling operation.
STOCKHOLDERS/DIRECTORS/OFFICERS
(For Year 2016)
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Name / Nationality |
Position |
Amount Paid |
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Rosalinda B. Galicia, Filipino |
Chairperson & President |
188,000. |
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Jackelyn M. Cheng, Fililipino |
Treasurer |
NIL |
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Francisco Conrado P. Banzon, Filipino |
Director |
188,000. |
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Kristine G. Bensurto, Filipino |
Corporate Secretary |
188,000. |
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Julius Mangupag, Filipino |
Director |
188,000. |
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Benito Salazar, Filipino |
Director |
188,000. |
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Huang Chang Ming, Chinese |
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469.000. |
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Xiao Mei Cong, Chinese |
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469,000. |
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SILVER DRAGON HOLDINGS INC., Fil. |
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8,625,000. |
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SILVER DRAGON SCRAP METAL INC., Fil. |
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8,625,000. |
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TOTAL |
18,753,000. |
BUSINESS
ACTIVITY
To provide world
class level of quality service and marketing efficiency.
MEDIA REPORT:
Portal Steels, Inc. is investing P322.7 million for a steel
manufacturing plant in Carmona, Cavite to supply its own requirement and to
serve the local market as well. The Board of Investments (BOI) has approved the
project with tax and fiscal incentives. Based on its application, the firm will
produce steel billets and rebars at an annual production of 48,000 metric tons
(MT) and 22,800 MT, respectively. Raw materials (scrap metals) will all be
sourced locally. Around half of the billet production is for commercial sale in
support for other rolling mill operations inside and outside the country while
the other half is for its own use intended for integrated rolling mill
operations. The project is expected to start commercial operations in December
2017 with 75 personnel
VERIFICATION OF ADDRESS.
a) 1401-A ONE CORPORATE CENTER
Building, Ortigas Center, Pasig City
According to the Property Manager, Portal Steel Inc., is not listed as
Tenant, neither as unit owner in said building, as mentioned in the request.
There is not even a business name signage.
b) B2 SITIO GITNA TATALON ST., UGONG, VALENZUELA CITY.
According to the Business Permit Div., Brgy, Ugong, Valenzuela City, shows
that portal steel inc. conducts business operation thereat.
FINANCIAL
CONDITION
(Audited Financial
Statement for years 2015 & 2014, as
compiled)
(Latest on file with SEC.)
BALANCE
SHEET
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2015 |
2014 |
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Current Asset |
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Cash & Cash Equivalent |
5,469.461. |
18,146,490. |
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Other Current Assets |
2,715,359. |
NIL |
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Total Current Assets |
8,184,820. |
18,146,490. |
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Non Current Assets |
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Property & Equipment – net |
11,177,549. |
NIL |
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Total Non Current
Assets |
11,177,549. |
NIL |
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TOTAL
ASSETS |
19,362,369. |
18,146,490. |
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LIABILITIES
& STOCK HOLDER’S EQUITY |
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Current Liabilities |
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Accrued Expenses & Other Payables |
2,250,104. |
10,000. |
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Other Current Liabilities |
190,987. |
NIL |
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Total Current Liabilities |
2,441,091. |
10,000. |
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TOTAL
LIABILITIES |
2,441,091. |
10,000. |
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Equity |
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Capital Stock |
18,753,000. |
18,753,000. |
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Retained Earnings
(Deficit) |
(
1,831,723.) |
(
616,510.) |
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Total Equity |
16,921,277. |
18,136,490. |
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TOTAL LIABILITIES & EQUITY |
19,362,368. |
18,146,490. |
INCOME
STATEMENT
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REVENUE |
90,493,363. |
NIL |
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Gross Profit |
40,231,341. |
NIL |
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Administrative
Expenses |
( 41,446,554.) |
( 10,000.) |
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NET LOSS FROM
OPERATION |
(
1,215,213.) |
( 10,000,) |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.78 |
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1 |
INR 93.42 |
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Euro |
1 |
INR 81.39 |
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PHP |
1 |
INR 1.27 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VAR |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.