MIRA INFORM REPORT

 

 

Report Date :

23.05.2014

 

IDENTIFICATION DETAILS

 

Name :

OLEO FATS INC.

 

 

Registered Office :

No. 5 Mercury Avenue, Libis, Quezon City, 1110 Metro Manila

 

 

Country :

Philippines

 

 

Financials (as on) :

2012

 

 

Date of Incorporation :

04.05.1987

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturer of specialty food oils in the Phils. From coconut oil, palm oil, soft oils, to specialty blends and specialty fats, the product portfolio is the largest in the country. These products are manufactured in state-of-the-art refining and food oil modification facilities under the strictest quality assurance standards. It provides a diverse range of fats and oils for the use in the food industry.

 

 

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 :

Slow but correct

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, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Philippines

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

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:                 OLEO FATS INC.

Address:                    No. 5 Mercury Avenue, Libis, Quezon City, 1110 Metro Manila

Country:                     PHILIPPINES

Telephone No.:           (632) 709-5636

Fax No.:                     (632) 709-3036

Website:                    www.oleofat.com

Service Type:            Normal

 

 

FINDINGS

 

We conducted research and investigation on  OLEO FATS INC., and showed the following, viz:

 

 

VERIFICATION WITH SECURITIES & EXCHANGE COMMISSION (SEC):  OLEO FATS INCORPORATED.

 
 

-          REGISTRATION –

 

a)     Certificate No.            :  0000140409

b)     Date                           :  May 4, 1987

c)      Term                          :  Fifty (50) years

d)       Corporate TIN            :  000-421-965

e)       Fax No.                     :   635-0696

f)         Telephone No.           :   635-0680

g)       Industry Classification : Manufacturing

 

                   Address                    :     5 Mercury Ave., Bagumbayan, Quezon City

 

 

CAPITALIZATION -    (As of 2013)

 

Authorized Capital Stock                                    -      P1,000,000,000.       -    100,000,000 Shares

Type of Shares                                                  -      Common

Amount Subscribed  & Paid Up                           -      P1,000,000,000.

Par value per share                                                        -      P                  10.

 

 


AFFILIATES

 

D&L Industries Inc.(1971) - D & L Industries provide centralized services, namely, administrative,

financial, human resource, procurement and others, to all the companies under the group.

Aero-Pack Industries, Inc.(1990) - Manufactures and markets a full range of aerosol cans; contract

manufactures aerosol products for selected customers

Chemrez Technologies Inc. (1988) - Manufactures and sells powder coatings and oleochemicals

as Corro-Coat Inc.

First in Colors, Inc. (1991) Dry colors & masterbatches, color compounds, plastic additives &

functional compounds are manufactured and sold by this Company

F.I.C. Marketing Co., Inc.(1986) - A trading company that imports and distributes various foreign &

local chemicals and materials to manufacturers in the plastics, paint, and other related industries

MRI Terminal(1995) - The terminal and tank farm that serve the bulk storage and delivery

requirements of the group and some selected customers

 

 

                                                      Stockholders/Directors/Officers

                 Name

Position

Amount Paid

1. Dean L. Lao

Chairman/President

P                    10.

2. Leon L. Lao

Executive Vice President

                      10.

3. Alex L. Lao

Director

                      10.

4. Yin Yong L. Lao

Director

                      10.

5. John L. Lao

Director

                      10.

6. D & L Industries, Inc.

-------

      999,999,940.

7. Vincent D. Lao

Director

                      10.

8. Alvin D. Lao

Treasurer/Corp. Sec.

             NIL

9. Haeng L. Tan

Asst. Treasurer

             NIL

10. Kristine Catindig-Ong

Asst. Corp. Sec.

             NIL           

 

 

P1,000,000,000.

vvvvvvvvvvvvvvv

 

 

BUSINESS ACTIVITY  

 

As gathered, subject firm is a member of Coconut Oil Refiners Association (CORA).

Representatives are - Pres. – Dean Lao, Jr.;  Managing Director – Vicente Lao.

Address at 65 Industria St. Bagumbayan, 1110 Q.C. Tel no. 636-0680;

Fax No. 636- 0703

 

Oleo Fats Inc. was established atond has since become the leading manufacturer of

specialty food oils in the Phils. From coconut oil, palm oil, soft oils, to specialty blends

and specialty fats, the product portfolio is the largest in the country. These products are

manufactured in state-of-the-art refining and food oil modification facilities under the

strictest quality assurance standards. It provides a diverse range of fats and oils for the

use in the food industry

 

Product lines includes, among others:

 

Specialty Fats                                Specialty Oils

AMF Substitutes                            RDB Coconut Oil

Bakery Shortenings                       RDB Palm Oil

Cocoa Butter Substitutes               RDB Palm Olein

 

 

FINANCIAL CONDITION

 

(Audited Financial Statement for years 2012, 2011, & 2010, as compiled)

 

BALANCE SHEET

 

 ASSETS                                           2012                                2011                            2010

Current Assets

 

 

 

      Cash

P     457,813,597.

P       418,310,459.

P      362,420,751.

      Trade & Other Receivable – Net

    1,127,736,515.

       1,596,827,002.

      1,457,220,225.

      Due from Related Parties

           8,216,302

              7,791,429

           NIL

      Inventories

       994,010,995

       1,388,009,498

         755,956,920

      Other Current Assets

       122,612,234

          265,045,000

         310,783,557

Total Current Assets

P 2,710,389,643

P    3,675,983,388

P    2,886,381,453

 

 

 

 

Non-Current Assets

 

 

 

      Prop., plant and Equip. – Net

P 1,374,007,770

P    1,227,516,448

P       974,532,640

      Deferred income Tax Assets,Net

           NIL

             3,049,932

             2,762,284

      Retirement Benefit

          2,621,265

             2,727,384

             3,984,425

      Refundable Deposits

           NIL

             7,170,040

           10,170,040

Total Non-Current Assets

P 1,376,629,035

P    1,240,463,804

P       991,449,389

 

 

 

 

Total Assets

P 4,087,018,678

vvvvvvvvvvvvvv

P    4,916,447,192

vvvvvvvvvvvvvvvv

P    3,877,830,842

vvvvvvvvvvvvvvvv

LIABLITIES AND EQUITY

Current Liabilities

 

 

 

      Trade & Other Payables

P    237,350,564

P       596,940,071

P       708,510,638

      Due to Related Parties

        29,478,912

           87,930,851

            NIL

      Accrued Interest

          3,701,269

             1,586,103

             2,251,684

      Borrowings

    2,640,000,000

      2,747,640,246

      2,111,993,062

Total Current Liabilities

P 2,910,530,745

P    3,434,097,271

P    2,822,755,384

 

 

 

 

Non- Current Liabilities

 

 

 

      Deferred Income Tax Liability

          2,962,039

            NIL           

              NIL          

Total Liabilities

P2,913,492,784

P    3,434,097,271

P     2,822,755,384

EQUITY

 

 

 

      Share Capital

P1,000,000,000

P    1,000,000,000

P     1,000,000,000

      Retained Earnings 

     173,525,894

          482,349,921

            55,075,458

Total Equity

P1,173,525,894.

P    1,482,349,921

P     1,055,075,458

Total Liabilities and Equity

 

P4,087,018,678

vvvvvvvvvvvvv

P    4,916,447,192

vvvvvvvvvvvvvvvv

P     3,877,830,842

vvvvvvvvvvvvvvvv

 

                                                                                                                                              

 

 

 

 

 

 

 

 

 


INCOME STATEMENT

 

Net Sales

P    7,929,615,182

P 10,267,771,910

P  7,471,637,348

Gross Profit

P       971,301,313

P      995,513,908

P     645,404,045

Selling & Marketing Expenses

(        204,227,802)

(       174,858,789)

(      149,245,475)

Administrative Expenses

(        131,527,145)

(       118,106,145)

(        91,285,501)

Other Income/(Loss) Net

           62,771,217

               499,918

(          3,806,243)

Operating Profit

P       698,317,583

P      703,048,624

P     401,066,826

Interest Expense

(          91,891,804)

(         78,865,777)

(         87,678,607)

Foreign Exchange Gain/(Loss)

            NIL             

(         15,394,375)

            5,165,380

Profit Before Income Tax

P       606,425,779

P      608,788,472

P     318,553,599

Profit for the Year

P       418,512,428

vvvvvvvvvvvvvvvv

P      427,274,463

vvvvvvvvvvvvvvv

P     219,376,656

vvvvvvvvvvvvvvv

 

 

 

                                                                        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.57

UK Pound

1

Rs.98.87

Euro

1

Rs.80.05

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

PDT

 

               

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.