MIRA INFORM REPORT

Report Date :

17.05.2011

IDENTIFICATION DETAILS

Name :	DAVAO BAY COCONUT OIL MILLS INC
Formerly Known As :	TABACO OIL MILLS INC.
Registered Office :	Room 403 CSP Building, 815 Quezon Avenue Quezon City 1104
Country :	Philippines
Financials (as on) :	31.12.2009
Date of Incorporation :	14.04.2008
Com. Reg. No.:	CS200805532
Legal Form :	Joint Stock Company
Line of Business :	Crude coconut oil milling and export

RATING & COMMENTS

MIRA’s Rating :

B

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

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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Philippines	B1	B1

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

REGISTERED NAME & COMPANY SUMMARY

IDENTIFICATION
Given
Subject Name:	Davao Bay Coconut Oil Mills Inc
Address:	Room 403 Csp Building, 815 Quezon Avenue
Town:	Quezon City
Zip/postal code:	1104
Country:	Philippines
Verified
Subject Name:	DAVAO BAY COCONUT OIL MILLS INC
Address:	AU. Belts St.
Town:	Tabaco City
State/province:	Albay
Country:	Philippines
Telephone:	+63 (2) 2380335 / 3731219 (HQ)
Fax:	+63 (2) 3731209 (HQ)
Remarks:	The Subject's registered address is: Rm. 403, CSP Bldg., Quezon Ave Quezon City, Metro Manila Philippines

EXECUTIVE SUMMARY

Date registered:	14-04-2008
Legal form:	Joint Stock Company
Authorised Capital:	PHP 320,000,000
Main activities:	Crude coconut oil milling and export
Employees:	17
REGISTRY DATA
Key Facts
Date registered:	14-04-2008
Legal form:	Joint Stock Company
Registration no:	CS200805532
Registry auth.	Philippines Register of Companies
Fiscal/tax code:	TIN: 007-011-798
Registry status:	Live/Active
Previous names:	The Subject initially operated under the name of TABACO OIL MILLS INC.

DIRECTORS/MANAGEMENT

MANAGEMENT & STAFF
Key Managers
Name:	Mariano Mc Arnold Lim
Job Title:	President
Name:	Eddie S. Crescini
Job Title:	Director
Name:	Elmo C. Villanueva
Job Title:	Company Secretary
Name:	Jhonny T. Pua
Job Title:	Company Secretary
Name:	Nelson S. Lim
Job Title:	Treasurer
Name:	Romualdo Domingo
Job Title:	Sales Manager
Key Advisors
Auditor:	Ocampo, Mendoza, Leong, Lim & Co.
Staff
No of employees	17
BOARD OF DIRECTORS / OTHER APPOINTMENTS
Appointments
Name:	Mariano Mc Arnold Lim
Board function:	President
ID Number:	108-913-978
Address:	Rizal St. Tabaco, Albay Philippines
Name:	Eddie S. Crescini
Board function:	Director
ID Number:	114-082-152
Address:	New San Roque. Pill. Camarinies Sur Philippines
Name:	Jhonny T. Pua
Board function:	Director
ID Number:	162-246-152
Address:	No 30 Don Ramon Street Tayalan Village Quezon City Philippines
Name:	Elmo C. Villanueva
Board function:	Company Secretary
ID Number:	101-210-618
Address:	No 67 Don Ramon Street Tayalan Village Quezon City Philippines
Name:	Nelson S. Lim
Board function:	Treasurer
ID Number:	103-996-663
Address:	27 Oakville St , White Plains Quezon City, Metro Manila 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 320,000,000
Number/type:	3,200,000 common shares
Share value:	PHP 100
Issued:	PHP 69,500,000
Paid-up:	PHP 69,500,000
Shareholders/Owners
How Listed	Full List
Composition
Name:	THIRD MILLENNIUM OIL MILLS, INC.
No. of shares:	660,000 common shares
Address:	Rm. 403, CSP Bldg., Quezon Ave., Quezon City, Metro Manila Philippines
Name:	Julio T. Poraque
No. of shares:	21,000 common share
Address:	San Isidro, Northern Samar Philippines
Name:	Eddie S. Crescini
No. of shares:	21,000 common shares
Address:	New San Roque. Pill. Camarinies Sur Philippines
Name:	Charles S Lim
No. of shares:	19,600 common shares
Address:	207 9th Avenue Cor. A Del Mundo St. Grace Park Caloocan Philippines
Name:	Mariano Mc Arnold Lim
No. of shares:	19,600 common shares
Address:	Rizal St. Tabaco, Albay Philippines
Name:	Jhonny T. Pua
No. of shares:	19,600 common shares
Address:	No 30 Don Ramon Street Tayalan Village Quezon City Philippines
Name:	Elmo C. Villanueva
No. of shares:	19,600 common shares
Address:	No 67 Don Ramon Street Tayalan Village Quezon City Philippines
Name:	Nelson S. Lim
No. of shares:	19,600 common shares
Address:	27 Oakville St , White Plains Quezon City, Metro Manila Philippines

PAYMENT INFORMATION

PAYMENTS
Purchase Terms
Local:	Cash Credits 14-30 days
Imports:	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:	THIRD MILLENNIUM OIL MILLS, INC.
Affiliation type:	Parent Company
Address:	Rm. 403, CSP Bldg., Quezon Ave., Quezon City, Metro Manila Philippines
Name:	THIRD MILLENNIUM COMMODITY TRADING INC.
Affiliation type:	Sister Company
Address:	Unit 801, Tiffany Mansion 21 Eisenhower St. Greenhills San Juan City Metro Manila Philippines
Name:	SPECIALTY PULP MANUFACTURING, INC.
Affiliation type:	Associate
Address:	Philippines

FINANCIAL INFORMATION

FINANCIAL ACCOUNTS
Description
Required to file:	Yes
Source:	Commercial Registry Filings
Presentation:	Attached to this report / Summarised below
Date of accounts:	31-12-2009
Type of accounts:	Full audited
Currency:	Philippines Peso (PHP)
Exchange rate:	USD 1 = PHP 43.08 as of 06/05/2011
Summarised
	31-12-2009	31-12-2008
Consolidation:	Non-consolidated	Non-consolidated
Period:	12 months	12 months
Income interest:	14,465	23,090
Profit after tax:	1,846,761	1,189,171
Non-current assets:	331,244,113	192,119,430
Current assets:	16,691,534	2,667,762
Inventories:	164,143	35,363
Total assets:	347,935,647	194,787,192
Current liabilities:	9,367,497	316,888
Non-current liabilities:	272,104,082	126,159,475
Total liabilities:	281,471,579	126,476,363
Shareholders' equity:	66,464,068	68,310,829

Davao Bay Coconut Oil Mills Inc
Statements of Financial Position
In Philippine Peso
	Years ended December 31
	2009	2008
Assets
Current assets
Cash	1,666,950	1,949,598
Advances to officers and employees	93,316	18,118
Tools inventories	164,143	35,363
Other current assets	14,767,125	664,683
Total Current Assets	16,691,534	2,667,762
Non Current Assets
Due from related party	-	200,000
Property plant and equipment	322,479,396	189,450,379
Other Assets	8,764,717	2,469,051
Total Non Current Assets	331,244,113	192,119,430
Total Assets	347,935,647	194,787,192
Liabilities and stockholder's equity
Current liabilities
Accounts payable and accrued expenses	9,367,497	316,888
Total Current liabilities	9,367,497	126,159,475
Non-Current liabilities
Due to related party	272,104,082	126,159,475
Total Non-Current liabilities	272,104,082	126,159,475
Stockholders' equity
Share Capital (at P100 par value per share)
Authorized - 3,200,000 shares
Issued - 660,000 shares	66,000,000	66,000,000
Subscribed - 140,000 shares	3,500,000	3,500,000
Deficits	(3,035,932)	(1,189,171)
Total Stockholders' equity	66,464,068	68,310,829
Total Liabilities and stockholder's equity	347,935,647	194,787,192

Davao Bay Coconut Oil Mills Inc
Statements of Comprehensive Income
In Philippine Peso
	Years ended December 31
	2009	2008
Income
Interest	14465	23090
Expenses
Travel and transportation	472,232	73,992
Representations	368,115	12,497
Salaries and Wages	277,700	-
Taxes and licenses	194,380	1,092,143
Supplies and postage	142,614	15,573
Professional fees	95,517	1,100
Communications	85,440	15,377
Repairs and maintenance	48,687	-
Government premiums and employee benefits	39,593	-
Water	36,786	-
Outside services	21,868	-
Bank charges	17,950	1,570
Rentals	15,495	-
Insurance	13,873	-
Miscellaneous	30,976	9
	1,861,226	1,212,261
Net loss for the year	(1,846,761)	(1,189,171)

Financial Ratios
	31-12-2009	31-12-2008	Trend
PROFITABILITY [%]
Gross Margin	N/A	N/A	N/A
Gross Profit / Revenue * 100
Operating Margin	N/A	N/A	N/A
Operating Income / Revenue * 100
Net Profit Margin	12767.1%	5150.16%	147.9 %
Profit After Tax / Revenue * 100
Return On Equity (ROE)	2.78%	1.74%	59.77 %
Profit After Tax / Equity * 100
Return On Assets (ROA)	0.53%	0.61%	-13.11 %
Profit After Tax / Total Assets * 100
Return On Investment (ROI)	N/A	N/A	N/A
Profit Before Tax / Equity * 100
EFFICIENCY [%]
Asset Turnover	0%	0.01%	-100 %
Revenue / Total Assets * 100
Inventory Turnover	8.81%	65.29%	-86.51 %
Revenue ./ Inventory * 100
LIQUIDITY [%]
Current Ratio (CR)	178.19%	841.86%	-78.83 %
Current Assets ./ Current Liabilities * 100
Quick Ratio (QR)	176.43%	830.7%	-78.76 %
(Current Assets – Inventory) ./ Current Liabilities * 100
DEBT [%]
Debt Ratio	80.9%	64.93%	24.6 %
Total Liabilities ./ Total Assets * 100
Long-Term Debt Ratio	409.4%	184.68%	121.68 %
Long-Term Liabilities ./ Equity * 100

FOREIGN EXCHANGE RATES

Na

ADDITIONAL INFORMATION

OPERATIONS & HISTORY
Activities
Full description:	The Subject is engaged in crude coconut oil milling and export. The Company had not started its commercial operations yet in 2009. Davao Bay plans to sell and supply the products to the domestic market, especially coconut oil refineries and soap and oleo chemical companies in the Visayas and Mindanao regions.
Products/services:	coconut oil,copra cake,abaca and abaca pulp
Key Events	Davao Bay Coconut Oil Mills Inc. is investing P358.41 million to put up a facility that will produce crude coconut oil and copra meal and cake in Tagum City. The project involves the setting up and operation of a manufacturing plant with 14 copra expellers with crude coconut oil and copra meal and cake as by-products. The Board of Investments approved the grant of fiscal incentives to the project under the preferred activity of agriculture, agribusiness and fishery. Davao Bay plans to sell and supply the products to the domestic market, especially coconut oil refineries and soap and oleo chemical companies in the Visayas and Mindanao regions. The manufacturing plant, located in Madaum, Tagum City, will have an annual capacity to produce 65,625 metric tons of crude coconut oil and 36,225 MT of copra meal and cake. The facility will start commercial operations in July 2009. Crude coconut oil is a vegetable oil extracted from dried coconut meat. It is generally used as raw material in the production of edible oil, and specialty oil products such as lard, shortening, baking fats and margarine. It is also used in the manufacture of soap and soap products and for the preparation of important fatty acid derivatives. Copra meal, mainly used in animal feeds, is produced after crude coconut oil is extracted by the use of screw shaft expellers, with its high protein, carbohydrates and fat content.
PROPERTY & ASSETS
Premises	The Subject operates from premises located at the heading address, consisting of production facilities, a warehouse and administrative offices.
BANKING & FINANCING
Bankers
Bank name:	BANCO DE ORO
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.

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.45.07
UK Pound	1	Rs.72.97
Euro	1	Rs.63.57

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%)

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