MIRA INFORM REPORT

 

 

Report Date :

05.08.2014

 

IDENTIFICATION DETAILS

 

Name :

FLAVORS PHILIPPINES, INC.

 

 

Registered Office :

Plainview Subd., 153 San Francisco St., Mandaluyong City,1550

 

 

Country :

Philippines

 

 

Financials (as on) :

2013

 

 

Date of Incorporation :

20.07.1994

 

 

Legal Form :

Private Corporation

 

 

Line of Business :

Produce & manufacture food flavors in all its forms in the preparations of refreshments, commonly sold to beverage companies.

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Philippines

A2

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

ANTECEDENT INFORMATION

 

Company:                     FLAVORS PHILIPPINES, INC.

Address:                       Plainview Subd., 153 San Francisco St., Mandaluyong City,

                                    1550 PHILIPPINES

Service Type:                 Normal

 

 

FINDINGS

 

We conducted research and investigation on FLAVORS PHILIPPINES, INC. and showed the following, viz:

 

VERIFICATION WITH SECURITIES & EXCHANGE COMMISSION (SEC):  FLAVORS PHILIPPINES, INC.

CORPORATION

 

Legal Entity       -     PRIVATE CORPORATION

 

 

REGISTRATION

 

Certificate No.           :      AS94-006536

Date                         :     July 20, 1994

Term                         :      Fifty (50) years

Corporate Tax No.      :      003-932-690

Telephone No.           :      533-5945

Fax No.                     :      533-5948

 Address                   :     153 San Francisco Street, Plainview, Mandaluyong City

             

 (Note:  Currency in Philipine Peso, unless otherwise specified)

           

     

CAPITALIZATION -    (As of 2013)

 

Authorized Capital Stock                           -      3,000,000.        30,000.  Common Shares

 

Amount Subscribed & Paid Up                  -      2,700,000.

    

Par value per share                                            -               100.

 

 

PRIMARY PURPOSE

 

Produce & manufacture food flavors in all its forms in the preparations of refreshments, commonly sold to beverage companies.

 

STOCKHOLDERS/DIRECTORS / OFFICERS (As of 2013)

 

              Name / Nationality

            Position

      Amount  Paid Up

Foods and Aroma Ventures, Inc. (*)

                NIL

            1,349,700.

Flavors, Inc. (American) (**)

                NIL

            1,079,900.

Wilfredo O. Chingcuanco, Pilipino

      President

                      100.

Julie T. Chingcuanco, Pilipino

     Treasurer/Corp. Sec.

                      100.

John Cua

     Director

               270,000.

Joshua Cua

     Director

                      100.

Evaristo  Kho

     Chairman

                      100.

 

     TOTAL                            

            2,700,000.

           vvvvvvvvvv

 

 

 

 

 

 

 

 

 

 

 

 

(*) A Pilipino company duly registered. Its stockholders/officers, among others are, Evaristo Kho, Chairman/

President; Wilfredo O. Chingcuanco, Treasurer; & Julie T. Chingcuanco, Corp. Secretary. Located at Flavors, Phils. Inc.

 

(**) Not listed with  SEC’s registered companies, located at Flavors Phils. Inc.

 

 

BUSINESS ACTIVITY

 

Subject firm is known as the Philippines manufacturer riof beverages, canned food, food additives, flavors and flavors enhancer. Registered with the Food & Drugs Authority of the Phils. Telephone No. 532-8464. Product

lines, among others, includes  - Crème flavor flavoring; chocolate flavor flavoring; garlic flavor; garlic/onion flavoring; beef flavor, leek flavor; tomato flavor flavoring; vanilla flavoring; silamon vanilla & silamon coffee, and etc.

 

 

FINANCIAL CONDITION

 

(Audited Financial Statement for years 2013, 2012, & 2011, as compiled)

 

 BALANCE SHEET

 

                                                                   ASSETS

         

         2013

        2012

       2011

          Current Assets

 

 

 

Cash & Cash Equivalents

     4,811,335.

     1,865,240.

     4,094,954.

Account Receivables - Trade

   15,710,964.

   11,658,131.

   10,549,600.

Merchandise Inventory

     3,902,437.

     6,062,437.

      3,641,906.

         Total Current Assets

   24,424,736.

   19,585,808.

    18,286,460.

         Total Assets

   24,424,736.

   19,585,808.

    18,286,460.

 

 

 

 

         Non – Current Assets

 

 

 

Property, Plant  and Equipment, Net

     2,644,348.

     2,756,378.

      1,807,392.

Creditable Withholding Tax

           NIL

        246.087.

           NIL

Rental Deposit

        437,704.

        393,265.

          393,264.

MERALCO Deposit

          22,000.

          22,000.

            22,000.

         Total Non-Current Assets

     3,104,052.

     3,417,730.

       2,626,777.

         Total Assets

   27,528,788.

   23,003,538.

     20,913,237.

                                               

                                                   LIABILITIES AND EQUITY

 

         Current Liabilities

 

 

 

Accounts  Payable

     9,416,722.

     7,626,739.

      9,546,662.

Income Tax Payable

        152,090.

     1,140,006.

         842,061.

Other Current Liabilities

          37,137.

        190,119.

         185,233.

          Total Current Liabilities

     9,605,949.

     8,956,864.

    10,753,956.

          Total  Liabilities

     9,605,949.

     8,956,864.

    10,753,956.

 

 

 

 

          Equity

 

 

 

Capital Stock

     2,700,000.

      2,700,000.

       2,700,000.

Retained Earnings

 

 

 

    Appropriated (warehouse expansion)

   10,000,000.

    11,346,674.

       7,639,281.

    Unappropriated

     5,222,839.

           NIL

            NIL

          Total Equity

   17,922,839.

    14,046,674.

     10,339,281.

          Total Liabilities & Equity

   27,528,788.

    23,003,538.

     20,913,237.

 

INCOME STATEMENT

 

Revenues

 

129,444,897.

   118,241,816.

   103,086,097.

Gross Profit

 

 18,732,594.

     13,640,862.

     12,041,143.

Operating & Administrative Expenses

(12,181,968.)

(7,464,392.)

(6,919,646.)

Interest Income

      

  NIL

            16,092.

         NIL          

Net Income before tax

  

  6,550,626.

       6,192,562.

       5,121,497.

NET INCOME

  

  4,585,438.

       4,334,793.

       3,581,491.

 

                                    


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.02

UK Pound

1

Rs.102.69

Euro

1

Rs.81.91

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

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.