Lending Unit MANAGEMENT CREDIT COMMITEE

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EGParasPPSantiago
Relationship Manager Group Head

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ARContreras, VP
Cluster Head, South Luzon Enterprise Banking Segment Head

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RLCanlas, VP
Credit Approval Head

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BPRGuiao,FVP
Commercial Risk Head



OWNERSHIP / MANAGEMENT

A. Zarate General Hospital/ Life One Trading/A-Z Hardware and Construction Supply/ Dr. Albert Zarate
Address Atlas Cmpd., Naga Road, PulangLupa II, Las PInas City
Birthdate/Age June 12, 1964
Citizenship Filipino
Educational
Attainment
Medical Practitioner (Phils.) License No. 74532
Registered Nurse (New York, USA) License No. 567300-1
Registered Nurse (Phils.) License No. 0365300
Doctor of Medicine (UST)
Bachelor of Science in Biology (UST)
BS in Nursing (St. Dominic Savio, Caloocan City)
Brief
Employment
History





Company Position Date
A. Zarate General
Hospital
Proprietor 1991 to present
Corinthian Placement
Services Inc.
Chairman/President 2010-Present
Life One Trading Proprietor 1994-Present
AZGH College Inc. President 2011-Present
A-Z Hardware and
Construction Supply
Proprietor 2010-Present
Olivarez College of Nursing Professor 1991-1994
University of Perpetual Help-
Rizal
Professor 1993-1996
Albert L. Zarate M.D., R.N., M.A.N., MBA, has been in the field of medicine for more than 2 decades.
With a vast experience in medicine, he learned to develop his business and management skills as
well. He ventured into several businesses which may or may not be related to his profession. He is
well-known in the area for his Admit All policy for all emergency cases even if patients have no
show-money. He has learned to venture into several other businesses to support his mission of
helping the sick who cannot afford medical expenses.



COMPANY BACKGROUND
Type of Business: Sole Prop. Partnership Corporation Others:


A. Zarate General Hospital opened an Emergency Clinic in 1991 with only 3 staff members
and a handful of patients. Since then, it has grown to become one of the prominent Private
hospitals in Las Pinas City. A. Zarate General Hospital, formerly known as A. Zarate
Emergency Clinic, is a secondary hospital duly recognized by the Department of Health,
Philippine Hospital Association and PhilHealth.

Web address : http://www.azarategeneralhospital.com/v2/
Office address : Atlas cmpd., Naga Road, PulangLupa II, Las Pinas City

Life One Trading and Pharmacy is a trading firm of pharmaceutical
products and imported medical equipments. The company believes
in the principle that no man loses any other life than which he now
lives, or lives any other life than which he now loses. To this belief,
Life One Trading and Pharmacy has derived its name.

Life One was born out of the owners desire to bring professional
medical devices, equipments, supplies and services closer to people
at an affordable compensation package. He envisioned this
endeavor as a means to support his fellow medical practitioners in their shared mission and advocacy to help those
who are in need of the medical services at the most reasonable rate. Besides putting up a general hospital, he also
established Life One to bring the cost of pharmaceutical products at an affordable level, in line with the governments





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Account Name AO CA. NO. CA DATE
Albert L. Zarate EGParas 549-14-003 April 2, 2014
program of making the cost of health services and products more reachable by the common and indigent Filipinos.

In less than a year, Life One Trading and Pharmacy has metamorphosed into a full time trading firm that sells imported
medical equipment. As part of its expansion, Life One Trading and Pharmacy has tied up with surgical manufacturing
company, and the other leading manufacturers and exporters of quality surgical instruments. Life One is now an
exclusive agent and distributor of many surgical, dental and orthopedic instruments in the Philippines.

Another prominent product that Life One offers is the introduction of CRTECH computed radiography system at the
most cost-effective prices and self-liquidating deals best for the clients.

Today, Life One Trading and Pharmacy continues to innovate and demonstrate stronger commitment in finding a better
access for medical products. It will be a never ending job on their end to supply products of highest quality and render
excellent services to meet their clients satisfaction.

LIFE ONE TRADING PRODUCTS

AlterG Anti-Gravity
Treadmill M320

AlterG Anti-Gravity
Treadmill P200

Lokomat Nanos


AST Lithospace Basic

iSYS 1

Jaco Rehab Edition


CRTECH 5020S COMPUTED
RADIOGRAPHY SYSTEM

X-RAY MACHINE


ULTRASOUND PROBES


iE 15 Digital 15-channel
ECG

iM 15 Patient Monitor

iS 210/220 Ultrasound
System
Web address : http://lifeonetrading.com/
Office address : 375 Real St. PulangLupa Dos Las Pinas City/Atlas cmpd., Naga Road, PulangLupa II, Las Pinas City

Corinthians Placement Services, Inc.is a land-based manpower agency in the Philippines
that operates for over 20 years now. CPSI was issued a license by SEC in 1992, followed by
the POEA in 1993. They currently hold a valid license no. POEA-053-LB-061710-R thru June
18, 2014. The Chairman of the Board and President is a respected Physician with extensive
experience in the medical field owning and operating a hospital to his name and other
businesses of different nature. The other shareholders are all professionals in the fields of Engineering/Construction,
Finance and Accounting, and business consultancy. The company takes pride in its staff of highly trained professionals
experienced in the recruitment and deployment processing of workers to various industries and locations globally.


Name Position
Dr. Albert A. Zarate Chairman of the Board & President
Conrado S. Milan Vice President for Operations
Richard Michael Zarate Vice President for Marketing
Suzanne A. Ledesma Consultant- International Market
Engr. Israel B. Fernandez Consultant- Canada Market
Engr. Willie Bantog Treasurer
Randy S. Milan Head, Recruitment & Processing





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Account Name AO CA. NO. CA DATE
Albert L. Zarate EGParas 549-14-003 April 2, 2014
Pacita D. Milan Consultant- Local Division
Office Address: MRJR Bldg., No. 34 DBP Main Road, DBP Subdivision, Pulanglupa Dos, Las Pinas City
Canada Office: 999 Canada Place, Suite 404, Vancouver, British Columbia V6C3E2

OTHER BUSINESSES:


MAJOR SUPPLIER :

Company Name Contact Person/Experience Terms Tenure of Dealings
EAN DISTRIBUTORS JAY ALCARAZ/ SATISFACTORY 30-45 DAYS 5 Yrs.
ENDURE MEDICAL INC. JOY SUMAGIO/SATISFACTORY COD MORE THAN 5 YRS.
FIRMUS DISTRIBUTION
CORPORATION
GRACE VINIA/ SATISFACTORY COD ALMOST 1 YEAR
GLOBO ASIATICO ENTERPRISE
INC.
ERNA AHERA/SATISFACTORY 20 DAYS 1 YEAR
GOODFELLOW PHARMA
CORPORATION
JASMIN ABASTA/SATISFACTORY COD 3 YEARS
OXFORD DISTRIBUTIONS INC. TRICIAN DONOR/ SATISFACTORY 30 DAYS ALMOST 2 YEARS
Source: Trade checking dated FEBRUARY 13, 2014 conducted by ELMAR TAMAYO of CRG-INVESTIGATION.

RISK ASSESSMENT
Risks Mitigants
1. Doubtful Accounts/ Bad Debts:Dr. Zarates Admit
All policy will probably have an adverse effect on the
level of his doubtful accounts. As per client the level of
his bad debts is currently at 5-15%, but he is not
considering it as a lost business but a
donation/charitable activity.

Dr. Albert Zarate studied business and how to manage
diversified businesses. He entered into several ventures
that have proven to support his passion to cure the sick
and indigent patients. Life One trading for example sells
equipments at least 100% above cost.

2.Competition:This industry is highly competitive,
which may impact the ability to compete successfully
with other hospitals.

Dr. Albert Zarates hospital may not look as the posh
hospitals we patronize, but the equipments within are first
in its class. His desire to build the most advanced
rehabilitation center will help several stroke and paralyzed
patients regain their strength. Moreover, this can also serve
as a free ad for the product lines of Life One.
3.Management: The businesses are mostlya sole
proprietorship being headed by a single individual- Dr.
Albert Zarate.

Dr. Albert Zarate is very keen on having full control with his
businesses. He employs though consultants from various
fields to support him on aspects which he is not adept with.
He has at least 2 trusted individuals per business to whom
he delegates some decisions related to the business.
4. Market Risk: Several traders can distribute Life One
trading products in the Philippines.
Dr. Zarate has secured exclusive distributorship of most of
his products from Canada, US, etc.
5. Credit Exposure Risk: The client may be
overexposed for debts since he is requesting a big
credit line in terms of aggregate facilities.
About 20% of the requested facility is trade related (short-
term of up to 120 days only). Term Loan is projected on a
long term period to anticipate several orders that will be
given on a 1-7 year terms to the clients. Client expects to
pay-off the loan in less than 5 years which is feasible with
his 100% markup.
CREDIT RELATIONSHIPS
Bank Checking dated: 2/14/2014 Source: Credit Investigation
Bank Facility Total Lines Outstanding Security Experience





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Account Name AO CA. NO. CA DATE
Albert L. Zarate EGParas 549-14-003 April 2, 2014
(000) (000)

BDO
CONSUMER 1,680 - CHM
NO PAST
DUE
CONSUMER 4,904 3,969 REM
CONSUMER 596 479 REM
Sub-total 7,180 4,448
NFIS checking as of FEBRUARY 14, 2014 :Found in cancelled cards file with EastWest Bank. The card was issued
for Life One Trading which is being monitored and utilized by Dr. Zarates point person for life one, but the particular
employee mishandled the credit card. Client has requested for a payment scheme to payoff the credit which he did not
use.





























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Account Name AO CA. NO. CA DATE
Albert L. Zarate EGParas 549-14-003 April 2, 2014

























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Account Name AO CA. NO. CA DATE
Albert L. Zarate EGParas 549-14-003 April 2, 2014














RECOMMENDATION / JUSTIFICATION
Recommending approval in consideration of the following:
1. Business viability:
i. A. Zarate General Hospital. The hospital is located in the heart of Las Pinas City, catering to clients
from South Luzon and Southern Metro Manila. There are voluminous out-patient check-ups per day
due to a very affordable professional fee charged by Dr. Zarate and his pool of Doctors (Php 300 per
out-patient check-up).
ii. Life One Trading. This particular business is expected to grow in unimaginable percentages in the
future. Exclusive distributorship and dealership of high-end medical equipments for radiology and
rehabilitation medicine. Client is expected to build the most advanced rehab center in the Philippines,
right in the heart of A. Zarate General Hospital using most of the products of life one trading.
2. Profitability. The company exhibited strong and profitable operations over the past three (3) years.
3. Good character. No Adverse findings on the company and its principal, dealings have likewise been
satisfactory except for an unpaid EWB credit card of Life One Trading that was mishandled by Dr. Zarates
employee. Client has decided to avail a payment scheme to pay-off the credit which he did not use.

4. Collateral. The collateral being offered is a prime property in Las Pinas City. DMCI is selling at Php 66,000
psm (with improvement), Vista Land on the other hand is selling at Php 30,000 psm (subdivision right beside
the property. The collateral is the residential address of Dr. Zarate. He eats, sleeps and live there. He
mentioned that he will never let go of his home.





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Account Name AO CA. NO. CA DATE
Albert L. Zarate EGParas 549-14-003 April 2, 2014










5. Aggregate Facility is 50% of clients net worth. As per client his net worth is ranging from Php 130-160
Million depending on the market value.

6. Management. The company is spearheaded by a highly qualified entrepreneur who has been in this kind of
business for 2 decades.

7. Assigned Receivables from Reputable Hospitals and Medical Practitioners. Attached NFIS checking of
all the issuer of post-dated checks and all clients who has received equipments from Life One has shown no
adverse findings.

8. Good Credit Dealings. Past credit dealings with PlantersBank and current credit dealing with Active Alliance
Finance Corporation has shown good credit standing for the client with no record of past due or delayed
payments.