MIRA INFORM REPORT

Report No. :	506442
Report Date :	30.04.2018

IDENTIFICATION DETAILS

Name :	BAYKOLOR CORP

Registered Office :	25 Norway St., Better Living, Bicutan, Paranaque City

Country :	Philippines

Financials (as on) :	2015

Date of Incorporation :	03.06.2003

Legal Form :	Private. Limited liability corporation

Line of Business :	Primarily engage in trading business. Products include among others, paints, varnish. Manufacture & wholesale assimilated ad chemical products

No. of Employees :	7

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate

Payment Behaviour :	Slow but Correct

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Philippines

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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.

Source : CIA

ANTECEDENT INFORMATION

Company: BAYKOLOR CORP.

Address: 25 Norway St., Better Living, Bicutan, Paranaque City

Country: Philippines

Service Type: Normal

Tel. No.: +63 2 824 0481

Contact Person: Mohit

FINDINGS

We conducted research and investigation on BAYKOLOR CORP. and showed the following, viz:

VERIFICATION WITH SECURITIES & EXCHANGE COMMISSION (SEC):  BAYKOLOR CORP.

Legal Entity       -     PRIVATE. Limited Liability Corporation.

REGISTRATION – (Per General Information Sheet (GIS) filed April 29, 2016, latest on file.)

a) Certificate No. : CS200312621

b) Date : June 03, 2003

c) Term : Fifty (50) years

d) Company Type : Stock Corporation

e) Telephone No. : (632) 824 0481 / 0922 870 3518

f) Corp. Tax ID No. : 224-719-431

g) Email : baykolorcorp@gmail.com

Principal/Business Address: 25 Norway St., Better Living Subd., Paranaque 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 - 10,000 - 100. 1,000,000.

vvvvvvvvv

Subscribed Capital - Common - 2,500 - 100. 250,000.

vvvvvvvv

Paid Up Capital - Common - 625 - 100. 62,500.

vvvvvvvv

PRIMARY PURPOSE: Trading of goods such as consumer products, pharmaceuticals

STOCKHOLDERS/DIRECTORS/OFFICERS

(For Year 2016)

Name / Nationality	Position	Amount Paid
Armando U. Tonelete, Filipino	Chairperson & President	60,000.
Concepcion M. Tonelete, Filipino	Corporate Secretary	625.
John Paul M. Tnonelete, Filipino	Treasurer	625.
Armand M. Tonelete, Filipino	Vice President	625.
Sherryll M. Tonelete, Filipino	Compliance Officer	625.
	TOTAL	62,500.

BUSINESS ACTIVITY

Primarily engage in trading business. Products include among others, paints, varnish. Manufacture & wholesale assimilated ad chemical products.

Total manpower complement - Seven (7); 2 officers & 5 rank & file.

FINANCIAL CONDITION

Audited Financial Statement for years 2015 & 2014, as compiled) (Latest on file with SEC.)

BALANCE SHEET

	2015	2014

Current Assets	19,782,507.	15,731,998.
Non Current Assets	646,862.	853,457.
TOTAL ASSET	20,429,369.	16,585,455.

LIABILITIES & STOCK	HOLDER’S	EQUITY

Current Liabilities	7,642,651.	7,724,013.
Equity	12,786,718.	8,861,442.
TOTAL LIABILITIES & EQUITY	20,429,369.	16,585,455.

INCOME STATEMENT

REVENUE	38,019,231.	29,387,767.
Gross Profit	11,905,190.	9,505,764.
Administrative Expenses	( 6,297,653.)	( 5,650,713.)
NET INCOME BEFORE TAX	5,607,536.	3,855,051,
TOTAL INCOME	3,925,275.	2,698,535.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.78
UK Pound	1	INR 92.89
Euro	1	INR 80.74
PHP	1	INR 1.28

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRI

Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
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)

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