MIRA INFORM REPORT

 

 

Report Date :

02.04.2014

 

IDENTIFICATION DETAILS

 

Name :

DAVAO CENTRAL CHEMICAL CORPORATION

 

 

Registered Office :

Km.19  Tibungco, Davao City Philippines 8000

 

 

Country :

Philippines

 

 

Financials (as on) :

2011

 

 

Date of Incorporation :

20.10.1992

 

 

Legal Form :

Private Corporation

 

 

Line of Business :

Manufacture, produce, buy, sell, deal on wholesale coconut activated carbon, its immediate and/or allied products & by products.       

 

 

No. of Employees :

Not Available

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Philippines

B1

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

PHILIPPINES - ECONOMIC OVERVIEW

 

The economy has weathered global economic and financial downturns better than its regional peers due to minimal exposure to troubled international securities, lower dependence on exports, relatively resilient domestic consumption, large remittances from four- to five-million overseas Filipino workers, and a rapidly expanding business process outsourcing industry. The current account balance had recorded consecutive surpluses since 2003; international reserves are at record highs; the banking system is stable; and the stock market was Asia's second best-performer in 2012. Efforts to improve tax administration and expenditure management have helped ease the Philippines' tight fiscal situation and reduce high debt levels. The Philippines has received several credit rating upgrades on its sovereign debt, and has had little difficulty tapping domestic and international markets to finance its deficits. Economic growth in the Philippines averaged 4.5% during the MACAPAGAL-ARROYO administration, but poverty worsened during her term. Growth has accelerated under the AQUINO government, but with limited progress thus far in bringing down unemployment, which hovers around 7%, and improving the quality of jobs. Underemployment is nearly 20% and more than 40% of the employed are estimated to be working in the informal sector. The AQUINO administration has been working to boost the budgets for education, health, cash transfers to the poor, and other social spending programs, and is relying on the private sector to help fund major infrastructure projects under its Public-Private Partnership program. Long term challenges include reforming governance and the judicial system, building infrastructure, improving regulatory predictability, and the ease of doing business, attracting higher levels of local and foreign investments. The Philippine Constitution and the other laws continue to restrict foreign ownership in important activities/sectors (such as land ownership and public utilities)

 

Source : CIA

 

 

 

 


Company name and address

 

Company:                 DAVAO CENTRAL CHEMICAL CORPORATION

Address:                   Km.19  Tibungco, Davao City

Country:                    Philippines 8000

Phone:                      63 (82) 2380042-45

Fax:                          63 (82) 2380046

Service Type:            Normal

 

 

FINDINGS:

 

We conducted research and verification on DAVAO CENTRAL CHEMICAL CORP. Hereunder, our report, viz:

 

 

VERIFICATION WITH SECURITIES & EXCHANGE COMMISSION (SEC):  DAVAO CENTRAL

CHEMICAL CORPORATION.

 

 

Legal Entity  -  PRIVATE CORPORATION

 

 

REGISTRATION –  (Per 2013 SEC General Information Sheet)

             

Certificate No.     :        48956

Date                    :        October 20, 1972

Term                   :        Fifty (50) years

Taxpayer ID No.  :        000-074-707

 

Address                           :        Km. 19 Tibungco, Davao City

Telephone No.                  :        63 (082)  238 0042

Fax No.                           :        63 (082)  238 0042

           

 

PRIMARY PURPOSE                  :        To manufacture, produce, buy, sell, deal on wholesale coconut

                                                            activated carbon, its immediate and/or allied products & by

                                                           products.          

 

PARENT COMPANY                   :        JAPAN ENVIROCHEMICAL LTD., in Japan

 

                       


                       

CAPITALIZATION                                           

                                                                                                                 (Php)  

No. of Shares                           Par Value/share                                                 Amount

 

Authorized Capital Stock    -

Common             -                     5,000,000            -             P10.                    -     50,000,000.

 

Subscribed & Paid Up        -

Filipino                 -                         1                                                -                  10.

Japanese             -                    2,939,990                                                -     29,399,990.

29,400,000.

       

 

  SHAREHOLDERS / DIRECTORS / OFFICERS 

 

 

        Names                 Nationality              Designation

      Amount

Paid – Up (Php) 

Motoya Mori                Japanese     -    Chair & President

P               10.     

Yoshiaki Eunishi         Japanese      -    Director

                 10.

Akihiro Hachiya          Japanese      -    Director

                 10.

Tatsuo Fujii                 Japanese     -    Director

                 10.

Rogelio J. Lu               Filipino         -    Director

               100.

Dina D. Lucenario       Filipino         -    Corp. Secretary

          NIL

Arsenio T. Roferos      Filipino         -    Treas./Asst. CS

          NIL

Japan Envirochemicals Ltd

  23, 519,960.

Mitsubishi Corp.

     5,879,900.

 

P29,400,000.

vvvvvvvvvvv

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS ACTIVITY   

 

As gathered, subject firm, is the premier manufacturer of  the purest activated   

carbon in the Phils. Operation started in l975. In 1998, subject becomes 100%

Japanese company, a joint venture with Japan Envirochemicals Ltd., Osaka Gas

Group Co., and Mitsubishi Corporation. It uses charcoal from coconut shell as

raw materials, through  “Fluidized Bed Steam Activation” technology. Most of its

production are exported to Japan to cater its filtering needs of its cigarettes

industries. Likewise exports to Korea, Indonesia, Venezuela, US, Europe and

others.

 

 

 

Website                             :      www.dccc-activatedcarbon.com.ph

Telephone No.                   :      (63) 82 238 0045

Fax No.                             :      (63) 82 238 0046

 

 

FINANCIAL CONDITION (Audited Financial Statement for years 2011, 2010 & 2009, as

compiled)

 

BALANCE SHEET

 

 

 

 2011 (PHP)

2010 (PHP)

2009 (PHP)

Current Assets

 

 

 

        Cash

    13,005,539

   21,845,163

   13,440,730

       Trade Receivables

    10,033,326

   13,137,961

   18,945,846

       Inventories

  196,285,141

 103,667,805

 104,737,197

       Other Current Assets

    48,182,328

   42,006,960

    31,046,431

Total Current Assets

267,506,334

180,657,889

168,170,204.

 

 

 

 

Non-Current Assets

 

 

 

       Investment in an Associate

     7,070,085

     7,068,681

     7,099,754

       Property, Plant and Equipment

 129,244,264

 118,417,266

   67,340,493

       Pension Assets

     7,064,054

     7,650,401

     1,978,445

       Defend Tax Assets-Net

     4,421,239

     6,006,456

     5,664,980

       Other Non-Current Assets

     2,169,791

     1,500,469

     1,810,469

Total Non-Current Assets

149,969,433

140,643,273

83,894,141

Total Assets

417,475,767

vvvvvvvvvvv

321,301,162

vvvvvvvvvvv

  252,064,345

vvvvvvvvvvvv

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Current Liabilities

 

 

 

       Bank Loans

  129,674,000

    26,870,000

    55,649,000

      Trade and Other Payables

     75,264,790

    72,205,704

    50,118,937

      Current Portion - Long Term Debt

     11,276,000

    10,748,000

      -------

      Income Tax Payable

       2,660,076

      9,003,515

      7,643,523

Total  Current Liabilities

  218,874,866

 118,827,219

 113,411,460

 

 

 

 

Non-Current Liabilities

 

 

 

      Long Term Debt- Net of

            Current Portion

    33,828,000

    42,992,000

         NIL         

Total Non Current Liabilities

    33,828,000

    42,992,000

         NIL         

Total Liabilities

 252,702,866

  161,819,219

 113,411,460

 

 

 

 

EQUITY

 

 

 

Capital Stock -  P 10/per value

       Authorized – 5,000,000 Shares

       Issued –         2,940,000 Shares

  29,400,000

   29,400,000

   29,400,000

Additional Paid in Capital

         45,000

           45,000

          45,000

Retained Earnings

 

 

 

Appropriated

106,173,311

   74,174,911

   60,174,911

Unappropriated

   29,154,590

   55,862,032

   49,032,885

Total Stockholder’s Equity

164,772,901

159,481,943

138,652,796

Total Liabilities & Stockholder’s Equity

417,475,767

321,301,162

252,064,345

                                                               

 

INCOME STATEMENT

 

NET SALES

2011 (PHP)

2010 (PHP)

2009 (PHP)

Net Sale

 

 

 

         Foreign

   614,665,483

     476,852,216

       482,688,506

         Local

        9,872,554

         8,302,811

         14,516,969

Total Net Sale

   624,538,037

     485,155,027

    497,205,475

Gross Income

     93,686,354

     109,445,127

         89,913,397

General and Admin Expense

(   60,121,562  )

  (    62,989,204)

   (     61,492,216)

Foreign Exchange Loss - Net

(   15,232.687  )

  (      9,024,824)

   (           637,472)

Interest & Other Financing Charges

(     1,544,242  )

  (         794,098)

   (       1,097,644)

Equity on Net Earnings of an Associate

          313,404

             280,927

               286,865

Interest Income

            63,164

               67,747

                  48,391

Miscellaneous

       1,713,041

          1,156,271

               223,368

Income Before Tax

    18,877,472

      38,141,946

       26,798,553

NET INCOME

    13,317,158

       26,797,258

        19,847,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.99.85

Euro

1

Rs.82.58

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.