MIRA INFORM REPORT

Report Date :

30.07.2011

IDENTIFICATION DETAILS

Name :	UNITED COCONUT CHEMICALS INC
Registered Office :	17/F UCPB Bldg., Makati Ave., Makati City, Metro Manila, Zip Code 1226
Country :	Philippines
Financials (as on) :	31.12.2010
Date of Incorporation :	08.12.1981
Com. Reg. No.:	0000102421
Legal Form :	Joint Stock Company
Line of Business :	Manufacture of fatty acids, fatty alcohol and glycerine utilizing coconut oil.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	PHP 1,003,000
Status :	Moderate
Payment Behaviour :	Unknown
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 – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Philippines	b1	b1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Bottom of Form

REGISTERED NAME & COMPANY SUMMARY

IDENTIFICATION
Given
Subject Name:	United Coconut Chemicals Inc
Address:	17th Floor Ucpb Bldg Makatl Avenue
Town:	Makati City Metro Manila
Country:	Philippines
Verified
Subject Name:	UNITED COCONUT CHEMICALS INC
Address:	17/F UCPB Bldg., Makati Ave.,
Town:	Makati City
State/province:	Metro Manila
Zip/postal code:	1226
Country:	Philippines
Telephone:	+63 (2) 8160371 / 72 / 7521870 - 73
Email:	elpatino@cocochem.ph
Website:	www.cocochem.ph

EXECUTIVE SUMMARY
Date registered:	08-12-1981
Legal form:	Joint Stock Company
Authorised Capital:	PHP 1,000,000,000
Sales turnover:	PHP 21,742,000 (Consolidated 12 months, 31/12/2010)
Main activities:	Manufacture of fatty acids, fatty alcohol and glycerine utilizing coconut oil.
Employees:	200
REGISTRY DATA
Key Facts
Date registered:	08-12-1981
Legal form:	Joint Stock Company
Registration no:	0000102421
Registry auth.	Philippines Register of Companies
Fiscal/tax code:	000-157-621-000
Registry status:	Live/Active

CREDIT RECOMENDATION

Current Credit Limit: PHP 1,003,000

DIRECTORS/MANAGEMENT

MANAGEMENT & STAFF
Key Managers
Name:	Andres D. Bautista
Job Title:	Chairman
Name:	Evelina L. Patino
Job Title:	Vice President
Name:	Douglas L Lu Ym
Job Title:	Director
Name:	Eusebio H. Tanco
Job Title:	Director
Name:	Florentino M. Herrera III
Job Title:	Director
Name:	Laura V. Nunez
Job Title:	Director
Name:	Leo A. Magno
Job Title:	Director
Name:	Nelson Acebo
Job Title:	Director
Name:	Ramon Y. Sy
Job Title:	Director
Name:	Rizalino S. Tady Jr.
Job Title:	Director
Name:	Anna Liza M. Ang-Co
Job Title:	Company Secretary
Name:	Glacy E. Garcia
Job Title:	Treasurer
Name:	Augusto D. Regalado
Job Title:	Vice President for Operations and Plant Manager
Name:	Belen H. Corrado
Job Title:	Materials Mgt. Group Manager
Name:	Leovino C. Ramirez
Job Title:	Production Manager
Name:	Nathaniel E. Ching
Job Title:	Vice President - Marketing
Name:	Ramon F. Evangelio
Job Title:	Engineering Manager
Key Advisors
Auditor:	SYCIP GORRES VELAYO & CO.
Staff
No of employees	200
BOARD OF DIRECTORS / OTHER APPOINTMENTS
Appointments
Name:	Andres D. Bautista
Board function:	Chairman
ID Number:	107-287-852
Address:	IRC Bldg.. #82 EDSA. Mandaluyong City Philippines
Name:	Evelina L. Patino
Board function:	Vice President
ID Number:	107-073-481
Address:	17th Floor UCPB BIdg., Makati Ave. Makati City Philippines
Name:	Douglas L Lu Ym
Board function:	Director
ID Number:	132-620-215
Address:	171F UCPB Bldg., Makati Ave., Makati city Philippines
Name:	Eusebio H. Tanco
Board function:	Director
ID Number:	141-978-255
Address:	7/F Philippines First Bldg., 6764 Ayala Ave., Makati City Philippines
Name:	Fe C. Diabordo
Board function:	Director
ID Number:	938-773-262
Address:	Greenthumb Tamontaka Awang, Datu Odin Sinusuat, Maguindariao Philippines
Name:	Florentino M. Herrera III
Board function:	Director
ID Number:	106-098-926
Address:	5F SGV II Bldg., 6758 Ayala Ave.. Makati Cy Philippines
Name:	Laura V. Nunez
Board function:	Director
ID Number:	157-795-292
Address:	Barangay Bebito, Lopez, Quezon Philippines
Name:	Leo A. Magno
Board function:	Director
ID Number:	162-619-798
Address:	427 Victorino St. Talipapa, Novaliches, Quezon City Philippines
Name:	Nelson Acebo
Board function:	Director
ID Number:	128-085-142
Address:	142 Valero St.. Makati City Philippines
Name:	Ramon Y. Sy
Board function:	Director
ID Number:	107-202-849
Address:	15F UCPB Executive Building, Makati Avenue, Makati City Philippines
Name:	Rizalino S. Tady Jr.
Board function:	Director
ID Number:	143-268-270
Address:	113 Cecilio Tady St. Sara. Iloilo Philippines
Name:	Anna Liza M. Ang-Co
Board function:	Company Secretary
ID Number:	165-024-929
Address:	1105 Atlanta Centre, 31 Annapolis St., Greenhills, San Juan City, Metro Manila Philippines
Name:	Glacy E. Garcia
Board function:	Treasurer
ID Number:	107-074-950
Address:	CAIP, Inc. Brgy. Aplaya, Bauan, Batangas Philippines

NEGATIVE INFORMATION

LEGAL FILINGS
Bankruptcy Filings:	None
Court Judgements:	None
Tax Liens:	None
Other:	None

SHARE & SHARE CAPITAL INFORMATION

SHARE CAPITAL
Composition
Authorised:	PHP 1,000,000,000
Number/type:	1,000,000,000 ordinary shares
Share value:	PHP 1
Issued:	PHP 734,485,567
Paid-up:	PHP 734,485,567
Shareholders/Owners
How Listed	Full List
Composition
Name:	UNITED COCONUT PLANTERS BANK
% of shares:	92.85%
Address:	UCPB Bldg,. Makati Ave.. Makati City Philippines
Comment:	UCPB for and in behalf of the coconut farmers as administration of Coconut Industry Investment Fund (CIIF)
Name:	PHILHOLDING, S.A
% of shares:	7.15%
Address:	Switzerland
Comment:
Comments	Cocochem is 92.85% owned by the Coconut Industry Investment Fund (CIIF) for the benefit of the Coconut Farmers of the Philippines and 7.15% owned by PHILHOLDING, S.A of Switzerland. CIIF is administered by the Trust Department of United Coconut Planters Bank (UCPI3).

PAYMENT INFORMATION

PAYMENTS
Purchase Terms
Local:	Cash Credits 14-30 days
Imports:	L/Cs Credits 30 days net
Sales Terms
Local:	Cash Credits 14-30 days
Exports:	L/Cs Credits 30 days net
Debt Collections / Judgements	No negative information was found.
Payment Experience
Payment Behaviour:	As trade references were not supplied, the Subject's payment track record history CANNOT BE ACCURATELY DETERMINED, but payments are believed to be PROMPT.

GROUP STRUCTURE & AFFILIATED COMPANIES

CORPORATE AFFILIATIONS
Structure
Name:	UNITED COCONUT PLANTERS BANK
Affiliation type:	Parent Company
Address:	UCPB Bldg,. Makati Ave.. Makati City Philippines
Comment:	UCPB for and in behalf of the coconut farmers as administration of Coconut Industry Investment Fund (CIIF) COCOCHEM® belongs to the CIIF Group of Companies, which includes a universal bank (UCPB); 5 coconut oil mills (CIIF) which account for more than 30% of the coconut oil exports of the country; a life insurance company (Cocolife), and other service companies.
Name:	COCOCHEM AGRO-INDUSTRIAL PARK. INC.
Affiliation type:	Wholly-owned Subsidiary
Address:	CAIP, Brgy. Aplaya. Bauan. Batangas Philippines
Comment:	A199909257
Name:	UNITED SAN PASCUAL PROPERTIES. INC.
Affiliation type:	Wholly-owned Subsidiary
Address:	UCPB BLdg., Makali Ave., Makati City Philippines
Comment:	A199717660

FINANCIAL INFORMATION

FINANCIAL ACCOUNTS
Description
Required to file:	Yes
Source:	Commercial Registry Filings
Presentation:	Attached to this report / Summarised below
Date of accounts:	31-12-2010
Type of accounts:	Full audited
Currency:	Philippines Peso (PHP)
Exchange rate:	USD 1 = PHP 42.86 as of 19-Jul-11
Summarised
	31-12-2010	31-12-2009
Consolidation:	Consolidated	Consolidated
Period:	12 months	12 months
Sales turnover:	21,742,000	19,982,000
Gross profit:	-351,000	-1,365,000
Profit before tax:	-1,794,000	-4,868,000
Profit after tax:	-1,923,000	-5,888,000
Non-current assets:	16,708,000	16,306,000
Current assets:	16,257,000	18,662,000
Inventories:	10,574,000	9,759,000
Total assets:	32,965,000	34,968,000
Current liabilities:	5,972,000	6,448,000
Non-current liabilities:	170,000	44,000
Total liabilities:	6,142,000	6,492,000
Shareholders' equity:	26,823,000	28,476,000

UNITED COCONUT CHEMICALS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
	Years Ended December 31
	2010	2009
ASSETS
Current Assets
Cash and cash equivalents	83,435	1,828
Trade and other receivables	1,678	6,028
Inventories	10,574	9,759
Due from related parties	4	4
Available-for-sale financial assets	—	670
Prepaid expenses and other current assets	566	373
Total Current Assets	16,257	18,662
Noncurrent Assets
Property, plant and equipment	11,242	11,630
Available-for-sale financial assets	4,015	19
Investment properties	1,326	1,333
Investments in associates	—	3,054
Notes receivable - net of current portion	—	146
Deferred tax assets - net	—	15
Other noncurrent assets	125	109
Total Noncurrent Assets	16,708	16,306
	32,965	34,968
LIABILITIES AND EQUITY
Current Liabilities
Trade and other payables	5,742	6,055
Loans payable	-	350
Income tax payable	10	6
Due to related parties	220	37
Total Current Liabilities	5,972	6,448
Noncurrent Liabilities
Deferred tax liability - net	64	-
Other noncurrent liabilities	106	44
Total Noncurrent Liabilities	170	44
Equity
Capital stock	72,001	72,001
Deficit	-46,041	-44,118
Other comprehensive income	863	593
Total Equity	26,823	28,476
	32,965	34,968
UNITED COCONUT CHEMICALS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in Thousands)
	Years Ended December 31
	2010	2009
REVENUES	21,742	19,982
COST OF GOODS SOLD AND SERVICES	22,093	21,347
GROSS LOSS	351	1,365
General and administrative expenses	1,426	3,007
Selling expenses	1,044	767
Foreign exchange gains — net	-244	-374
Equity in net losses (earnings) of associates	-78	373
Interest income	-29	-122
Interest expense	7	99
Other income	-683	-247
LOSS BEFORE INCOME TAX	1,443	3,503
PROVISION FOR INCOME TAX
Current	50	33
Deferred	79	987
	129	1,020
NET LOSS	1,923	5888

Financial Ratios
	31-12-2010	31-12-2009	Trend
PROFITABILITY [%]
Gross Margin	-1.61%	-6.83%	76.43 %
Gross Profit / Revenue * 100
Operating Margin	N/A	N/A	N/A
Operating Income / Revenue * 100
Net Profit Margin	-8.84%	-29.47%	70 %
Profit After Tax / Revenue * 100
Return On Equity (ROE)	-7.17%	-20.68%	65.33 %
Profit After Tax / Equity * 100
Return On Assets (ROA)	-5.83%	-16.84%	65.38 %
Profit After Tax / Total Assets * 100
Return On Investment (ROI)	-6.69%	-17.1%	60.88 %
Profit Before Tax / Equity * 100
EFFICIENCY [%]
Asset Turnover	65.95%	57.14%	15.42 %
Revenue / Total Assets * 100
Inventory Turnover	205.62%	204.75%	0.42 %
Revenue ./ Inventory * 100
LIQUIDITY [%]
Current Ratio (CR)	272.22%	289.42%	-5.94 %
Current Assets ./ Current Liabilities * 100
Quick Ratio (QR)	95.16%	138.07%	-31.08 %
(Current Assets – Inventory) ./ Current Liabilities * 100
DEBT [%]
Debt Ratio	18.63%	18.57%	0.32 %
Total Liabilities ./ Total Assets * 100
Long-Term Debt Ratio	0.63%	0.15%	320 %
Long-Term Liabilities ./ Equity * 100

FOREIGN EXCHANGE RATES

Na

ADDITIONAL INFORMATION

BANKING & FINANCING
Bankers
Bank name:	UNITED COCONUT PLANTERS BANK
Address:	Philippines
Relationship type:	Current Account
Comments	It is generally not the policy of local banks to provide credit status information to non-bona fide applications, and interested parties would be advised to consult first with the Subject if banker's references are required.

OPERATIONS & HISTORY
Activities
Full description:	The Subject is engaged in the manufacture of fatty acids, fatty alcohol and glycerine utilizing coconut oil as the principal raw material and in the sale, marketing and distribution of such products in the Philippines and anywhere in the world.
Products/services:	Fatty Alcohol and Flakes Fatty Acid and Flakes Soap Base Glycerine Safety Precautions
Sales
Local:	Yes
Export:	Worldwide
Key Events	Status of Operations and Management Plans On February 24, 2009, the BOD approved the suspension of the Parent Company’s operation for three (3) months, effective April 1 to June 30, 2009. The Parent Company has also reduced the number of employees at the end of the first quarter of 2009. On July 29, 2009, the BOD approved the resumption of operations beginning September 1, 2009 or at such time as may be feasible. The operations of the plant officially started on September 7, 2009, the date when the rehiring of personnel was completed. On December 3, 2009, on a special BOD meeting, the directors and officers of the Parent Company discussed the viability of the Parent Company whether to Continue operations or go on a permanent shutdown. On the said meeting, the BOD required management to provide plan and basis or justification for the Parent Company’s continued operations. The viability report was then presented to the BOD in March 2010. However, on April 1, 2010, the Parent Company temporarily shutdown its manufacturing Operations due to the rupture of fatty alcohol hydrogen gas line. On January 18, 2011, the BOD approved the resumption of operations. The plant was restarted on January 19, 2011 and commenced delivery to customers the following month. The plant is currently operating at a 60% capacity and the Parent Company expects to increase its operating rate to I 100% by June 2011, to accommodate the committed sales volumes. As of April 5, 2011, the Parent Company has secured sales commitments of about 19,000 metric tons with an estimated sales value of $45.13 million. For the first quarter of 201 I, the Parent Company has sold 2,000 metric tons with a sales value of $3.77 million. By the end of 2011, the Parent Company expects a positive cash flow from operations of about $0.85 million and an income before tax of$1 .72 million. Management is confident that it would meet its projections due to its improved plant reliability and the positive market developments for the Parent Company.
Trade Bodies	COCOCHEM® is a member of the Asean Oleochemical Manufacturers Group
PROPERTY & ASSETS
Premises	The Subject operates from premises located at the heading address, consisting of administrative offices.
Branches	United Coconut Chemicals Inc. (Plant) Aplaya, Bauan Batangas, Philippines Trunk Lines: (6343) 727-1511, (6343) 984-1602 to 06

NOTES & COMMENTS

INVESTIGATIVE NOTES
Sources:	Interviews and material provided by the Subject Other official and local business sources

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.16
UK Pound	1	Rs.72.10
Euro	1	Rs.63.10

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.