MIRA INFORM REPORT

 

 

Report Date :

11.03.2014

 

IDENTIFICATION DETAILS

 

Name :

STEPAN PHILIPPINES QUATERNARIES INC.

 

 

Registered Office :

Cochem Agro-Industrial Park, Bauan, Batangas 4201

 

 

Country :

Philippines

 

 

Financials (as on) :

2011

 

 

Date of Incorporation :

15.04.2005

 

 

Legal Form :

Private Corporation

 

 

Line of Business :

Manufacturing of fabric softener & armine derivatives, also distributing & marketing

 

 

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 – 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

 

 

 

 

ANTECEDENT INFORMATION

 

Company:                 STEPAN PHILIPPINES QUATERNARIES INC.

Address:                   Cochem Agro-Industrial Park, Bauan, Batangas 4201

Country:                     PHILIPPINES

Telephone No.:          (6343) 727-2828 Ext 218

Fax No.:                    (6343) 727-2831

Service Type:             Normal

           

 

FINDINGS

 

We conducted research and investigation on STEPAN PHILIPPINES QUATERNARIES, INC, and showed the following, viz:

 

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

 

Legal Entity       -     PRIVATE CORPORATION

 

 

REGISTRATION

 

Certificate No.    :      CS-2005-06302

Date                   :      April 15, 2005

Term                  :      Fifty (50) years

 

 

Principal Office Address :  

Cocochem Agro-Industrial Park, San Antonio, San Pascual,

Batangas (formerly CAIP, Brgy. Aplaya, Bauan, Bats.)

Telephone No.: (043) 727 – 2828

            

     

CAPITALIZATION    

 

(As of 2013)

 

Authorized Capital Stock                           -      P336,000,000  – 3,360,000 Shares 

Amount Subscribed                                   -      P136,140,000

Amount Paid Up                                      -      P136,140,000                                   

Par value per share                                -      P       100   

 

 

PRIMARY PURPOSE

 

Engaged in the manufacturing of primary active ingredients in fabric softeners, other quaternaries & tertiary armine derivatives and in the wholesale, marketing and distribution of such products in the Philippines & anywhere in the world.

 

       STOCKHOLDERS (As of  October 29, 2013)

 

 

      Name / Nationality

 

         Position

Amount Subscribed

     & Paid (Php)

Stepan Phils. Inc.

Parent Company

136,139,500

John Hall/British

Chairman/President

                      100

Thomas Giese/American

Board Member

                      100

Januario Atienza/Filipino

Board Member

                      100

Voltaire B. Orpilla/Filipino

Treasurer

                      100

Erlinda M. Sarmiento/Fil.

Board Member

                      100

TOTAL

 

136,140,000

 

 

===========

 

 

BUSINESS ACTIVITY

 

Manufacturing of fabric softener & armine derivatives, also distributing & marketing the same  

 

As gathered, Stepan Phils. Quaternaries, Inc. (SPQI) operates as a subsidiary of

Stephan Phils. Inc., which is a subsidiary of Stepan Company, USA and United Coconut

Chemical Inc, USA.  Since its inception, SPQI continue to produce sulfanates and

sulfates. Subject’s corporate office is situated at 17th Floor, Tower 2 Insular Life

Corporate Center, Insular Life Drive, Filinvest Corporate City, Alabang, Muntinlupa City.

 

 

FINANCIAL CONDITION

 

(Audited Financial Statement for years 2011, 2010, & 2009, as compiled)

 

Balance Sheet

 

 

 

    2011 (US$)

  2010 (US$)

 2009 (US$)

Assets

 

 

 

Current Assets

 

 

 

     Cash

444,009

698,786

626,353

     Receivables – net

4,839,724

4,271,882

3,491,282

     Due from parent company

585,114

1,328,717

932,597

     Inventories

2,460,048

1,327,007    

862,930    

     Other Current Assets

         64,703

         77,331

        70,039

       Total Current Assets

    8,393,598 

    7,703,723

   5,983,201

Non-Current Assets

 

 

 

     Property, Plant & Equipment

    8,649,256

    6,294,365

   6,888,411

TOTAL ASSETS

17, 042,854

13,998,088

12,871,612

 

==========

==========

==========

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities & Stockholder’s Equity

 

 

 

Current Liabilities

 

 

 

     Account Payables & Accrued

        Expenses

 

3,876,606

 

2,338,036

 

1,804,976

     Due to related parties

1,390,709

1,750,047      

1,662,603       

     Current maturities of long term debt

   2,333,333

   1,166,667

    875,000

        Total Current Liabilities

7,600,648

5,254,750

4,342,579

 None Current Liabilities

 

 

 

     Long Term debt - net of Current 

        Maturity

 

4,698,895

 

5,829,282

 

6,116,869

     Due to related parties-non current

177,305

177,304

1,071,934

     Accrued retirement benefit

       11,273

       10,136

        7,556

         Total Non Current Liability

  4,887,473

  6,016,722

 7,196,359

 

 

 

Equity

 

 

 

     Capital Stock

1,495,274

1,495,274

1,495,274

     Retained Earnings/(Deficit)

     3,059,459

    1,231,342

    (162,600)

        Total Equity

     4,554,733

    2,726,616

   1,332,674

TOTAL LIABILITIES &

   STOCKHOLDERS EQUITY

17,042,854

==========

13,998,088

==========

12,871,612

=========

 

 

 

 

Income Statement

 

 

 

Revenues

     22,669,950

   16,482,261

   12,942,029

Gross Profit

       2,573,270

     1,766,133

     1,288,719

Operating Expenses

          114,744

          31,254

          27,334

Income from operation

       2,458,526

     1,734,879

     1,261,385

Other Income/(Expenses)

        (625,728)

      (336,781)

      (458,358)

Income before Income Tax

       1,832,798

     1,398,098

        803,027

Net Income

1,828,117

1,393,942

798,918

 

     ==========

==========

==========

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.20

UK Pound

1

Rs.102.35

Euro

1

Rs.84.95

 

 

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.