MIRA INFORM REPORT

 

 

Report No. :

321565

Report Date :

14.05.2015

 

IDENTIFICATION DETAILS

 

Name :

STEPAN PHILIPPINES QUATERNARIES INC.

 

 

Registered Office :

Cocohem Agro-Industrial Park (CAIP), San Antonio, San Pascual, Batangas 4201

 

 

Country :

Philippines

 

 

Financials (as on) :

2013

 

 

Date of Incorporation :

15.04.2005

 

 

Legal Form :

Private Corporation

 

 

Line of Business :

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

 

 

No. of Employee :

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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:                 STEPAN PHILIPPINES QUATERNARIES INC.

Address:                   Cocohem Agro-Industrial Park (CAIP), San Antonio, San Pascual,

                                 Batangas 4201 Philippines

Country:                     PHILIPPINES

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

 

a)     Certificate No.    :      CS-2005-06302

b)    Date                   :      April 15, 2005

c)     Term                  :      Fifty (50) years

d)    Corp. Tax ID No. :     006 317 633

e)     Fax No.               :     (632) 842 1236

f)     Telephone No.     :     (632) 842 9751       

 

Principal Office Address :    Cocochem Agro-Industrial Park, San Antonio, San Pascual, Batangas (formerly CAIP, Brgy. Aplaya, Bauan, Batangas.)

Telephone No.: (043) 727 – 2828

 

 

CAPITALIZATION

 

(As of 2013)

 

-       Authorized Capital Stock                           -      P336,000,000.        3,360,000 Common Shares 

-       Amount Subscribed  &    Paid Up              -      P136,140,000.                                   

-       Par value per share                                -      P             100.  

 

PARENT COMPANY  -   STEPAN PHILIPPINES INC.,  Cocochem Agro-Industrial Park, San Antonio,

                                                                                                 San Pascual, Batangas

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/DIRECTORS/OFFICERS

 

(As of  2014)

 

 

      Name / Nationality

 

         Position

Amount Subscribed

     & Paid (Php)

Stepan Phils. Inc.

Parent Company

  136,139,500.

John Hall, British

Chairman/President

                      100.

Januario Atienza, Filipino

Director

                      100.

Voltaire B. Orpilla, Filipino

Treasurer/Director

                      100.

Gopi Rarman, Indian

Director

                      100.

Pearl T. Liu

Corporate Secretary

                      NIL

Alain Charles J. Veloso

Asst. Corp. Secretary

                      NIL

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 2013, 2012, & 2011, as compiled

 

BALANCE SHEET 

 

2013 (Php)

2012 (Php)

2012 (US$)

   2011 (US$)

Assets

 

 

 

 

Current Assets

 

 

 

 

     Cash

84,566,210.

47,217,303.

240,372.

444,009.

     Receivables – net

190,597,308.

211,232,312.

5,374,679.

4,839,724.

     Due from related parties

1,294,356.

8.558,477.

3,128,539.

585,114.

     Inventories

210,021,296.

185,531,044.

160,083.

2,460,048.

     Prepaid Expenses & Other

        Current Assets, net

 

     26.763,207.

 

     46,771,262.

 

         63,902.

 

         64,703.

Total Current Assets

513,242,377.

499,310,398.

8,967,575.

    8,393,598. 

 

 

 

 

 

Non-Current Assets

 

 

 

 

     Property, Plant & Equipment, net

372,234,631.

426,718,946.

8,051,670.

    8,649,256.

     Investment in subsidiary

136,140,000.

136,140,000.

  NIL

NIL

     Deferred Tax Asset, net

1,702,920.

498,068.

  NIL

NIL

Total Non Current Assets 

510,077,551.

563,357,014.

    8,051,670.

    8,649,256.

TOTAL ASSETS

1,023,319,928.

vvvvvvvvvvvvv

1,062,667,412.

vvvvvvvvvvvvv

17,019,245.

vvvvvvvvvvv

17, 042,854.

vvvvvvvvvvv

 

 

 

 

 

-------Stepan Phils. Inc.-------    Stepan Phils. Quaternaries Inc

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities & Equity

 

 

 

 

Current Liabilities

 

 

 

 

     Account Payables & Accrued

          Expenses

 

158,543,505.

 

149,790,788.

 

5,602,132.

 

3,876,606.

     Due to related parties -current

1,101,937.

48.411,683.

181,245.

1,390,709.

     Current maturities of long term

          debt

 

          NIL       

 

26,000,000.

 

2,333,333.

 

   2,333,333.

 Total Current Liabilities

159,645,442.

224,202,471.

8,116,710.

7,600,648.     

 

 

 

 

 

Non Current Liabilities

 

 

 

 

     Long Term debt - net of Current 

          maturities

 

NIL

 

13,000,000.

 

1,166,667.

 

4,698,895.

     Due to related parties

349,737,942.

349,237,141.

177,305.

177,305.

     Accrued retirement benefits

25,949,757.

8,206,117.

14,274

       11,273.

Total Non Current Liabilities

375,687,699.

370,443,258.

1,358,246.

  4,887,473.

TOTAL LIABILITIES

535,333,141.

594,645,729.

9,474,956.

12,488,121.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT

 

Equity

 

 

 

 

     Capital Stock

500,000,000.

500,000,000.

2,695,274.

1,495,274.

     Net actuarial gain/(losses) on net

          defined benefit plan

 

(21,620,767.)

 

(5,928,266.)

 

   NIL

 

  NIL

     Retained Earnings/(Deficit)

9,607,554.

(26,050,051,)

4,849,015.

  3,059,459.

TOTAL EQUITY

487,986,787.

468,021,683.

7,544,289.

  4,554,733.

TOTAL LIABILITIES &  EQUITY

1,023,319,928.

vvvvvvvvvvvvv

1,062,667,412.

vvvvvvvvvvvvvv

17,019,245.

vvvvvvvvvv

17,042,854.

vvvvvvvvvv

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

1,109,109,987.

1,202,481,636.

23,664,744.

  22,669,950.

Gross Profit

   110,607,183.

   87,140,840.

 2,496,199.

2,573,270.

Operating Expenses

     (60,334,498.)

(48,204,749.)

(67,587,)

   (  114,744.)

Income from operation

     50,262,685.

   38,936,091.

  2,428,612.

2,458,526.

Other Income/(Expenses)

       (4,299,780.)

(6,085,159.)

(634,411.)

(   625,728.)

Income before Income Tax

     45,962,905.

   32,850,932.

  1,749,201.

1,832,798.

Net Income

     35,657,605.

27.864,461.

  1,789,556.

1,828,117.

Other Comprehensive Losses

     (15,692,501.)

(10,545,936.)

NIL

NIL    

TOTAL COMPREHENSIVE 

INCOME

       19,965,104.

vvvvvvvvvvvvvvv

     17,318,525.

vvvvvvvvvvvvv

   1,789,556.

vvvvvvvvvvv

    1,828,117.

vvvvvvvvvvvv


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.19

UK Pound

1

Rs.100.58

Euro

1

Rs.72.08

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

ANK

 


 

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.