MIRA INFORM REPORT

 

 

Report No. :

347484

Report Date :

13.11.2015

 

IDENTIFICATION DETAILS

 

Name :

UNILEVER PHILIPPINES INC.

 

 

Registered Office :

1351 United Nation Avenue, Paco, Manila, Metro Manila 

 

 

Country :

Philippines

 

 

Financials (as on) :

2014

 

 

Date of Incorporation :

06.12.1927

 

 

Legal Form :

Private Corporation

 

 

Line of Business :

Manufacturer & distribution of consumer products.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 shocks better than its regional peers due to less 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 outsourcing industry. The current account balance has recorded consecutive surpluses since 2003, international reserves remain at comfortable levels, and the banking system is stable; the stock market resumed an upward trajectory in 2014, climbing to new record highs during the first four months of 2015. Efforts to improve tax administration and management of expenditures have helped ease the Philippines' tight fiscal situation and reduce debt levels. Nevertheless, government taxation and spending remain weak. The Philippines has received investment-grade credit ratings on its sovereign debt under the AQUINO administration and has had little difficulty financing its deficits. Economic growth has accelerated, averaging 6.0% per year from 2011-2014, compared with 4.5% under the MACAPAGAL-ARROYO government; competitiveness has improved; and foreign direct investment hit a historic high in 2014, although it continues to lag compared with the rest of the region. Unemployment has remained high, hovering at around 7% of the population, and underemployment is nearly 20%. At least 40% of the employed work in the informal sector and poverty afflicts about a quarter of the population. The AQUINO administration has been working to boost expenditures for education, health, transfers to the poor, and other social spending programs. Infrastructure remains underfunded and the government is relying on the private sector to help with major projects under its Public-Private Partnership program. Other long term challenges include reforming governance, the judicial system, and the regulatory environment, and improving the ease of doing business. The Philippine Constitution and other laws restrict foreign ownership in important activities/sectors - such as land ownership and public utilities. Some progress has been made in establishing a Customs Modernization Act to meet international standards and commitments.

 

Source : CIA

 


Company name and address

 

Company:                 UNILEVER PHILIPPINES INC.

Address:                  1351 United Nation Avenue, Paco, Manila, Metro Manila 

Country:                   Philippines

Phone No.:               632 - 588 8888

Fax No.:                   632 – 546 0861

Service Type:           Normal

                      

 

FINDINGS

 

We conducted research and verification on UNILEVER PHILIPPINES, INC. Hereunder our report, viz:

 

 

LEGAL ENTITY 

 

Private Corporation

 

 

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

 

REGISTRATION –  (Per General Information Sheet for the Year 2014)

 

Certificate No.               :           PW00000080

Date                             :           December 6, 1927, original.

Term                             :           Fifty (50) years. (The 1st 50 years expired. Extended for another

                                                Fifty (50) years effective December, 1977)

d)    Corp. Tax No.        :           000 342 744 000

e)    Type of

Organization                  :         Stock Corporation

 

Address                          :          No. 1351 United Nations Ave., Paco, Manila, Metro Manila       

 

Telephone No.                :          (632) 588 8888  /  588 7350 / 588 7755 / 588 7711 / 562 3951

 

 

PRIMARY PURPOSE    :         Manufacturer & distribution of consumer products.

 

PARENT COMPANY     :         NEW ASIA B.V., P.O. Box 760 Rotterdam, Netherlands    

 

 

SUBSIDIARIES/AFFILIATES 

 

Unilever RFM Ice Cream, Inc.

Selecta Walls Land, Inc.

WS Holdings, Inc.

Unilever Phis. Manufacturing, Inc.

           

                                      

CAPITALIZATION                                            

                                                                                                                                       (Php)

                                                            No. of Shares           Par Value/share                    Amount                                                                              

Authorized Capital Stock  -

 

Common              -                    6,000,000         -        P50.00                  -        300,000,000.

                                                                                                                                   vvvvvvvvvvv

 

Subscribed & Paid Up       -         4,918,518         -        P50.00                  -        245,926,150.

                                                                                                                                   vvvvvvvvvvv     

        

 

SHAREHOLDERS/DIRECTORS/OFFICERS

 

            Name/Nationality/Designation

  Paid – Up (Php)  

1.Rohit Jawa                        - Indian   -  Chairman/CEO   

                       50.

2.Ronny Krisnanto               -  Indonesian -  Director

                       50.

3.Bengie Yap                       -  Chinese     -  Director

                       50.

4.Jose Ramos III                  - Pilipino        - Director

                       50.

5.Ramon Gil S. Macapagal  -  Pilipino        - Director

                       50.

6.Suresh Rai                        - Indian          - Director

                       50.

 

7.Carl Cruz                          -  Pilipino       -   Director

                  50.

8.Ajay Gandhi                      -  Indian        -   Treasurer

                  50.

9. John  A. Concepcion        -  Pilipino      -   Director

                  50.

10.Regina Lorenzana           - Pilipino       -   Director

                  50.

11.Ma. Leah J. Sebastian     - Pilipino       -  Corp. Secretary

                  50.

12.Rosa Michelle C. Bagtas – Pilipino       - Asst. Corp. Sec.

                  50.

13.NEW ASIA B.V.

   245,925,650.

                            TOTAL

   245,926,150.

   vvvvvvvvvvv

 

 

BUSINESS ACTIVITY  

 

Known until the early 1990s’ as Philippine Refining Company, UNILEVER PHILS., started as a

milling business employing over a thousand people directly and provide jobs for 10,000 indirectly. The

company has been leader in introducing new technologies into the country since its early days of its

existence – margarine production in 1930s; non-soap detergent, shampoo & tooth paste in the 1960s &

1970s and state of the art of Sulphonation technology & co-generation plants in the 1980s. In the nine-

ties, saw the introduction of 100% biogradable detergent bar.

 

The company was organized to engaged in the business of manufacturing, processing, refining,

crushing, growing, buying, selling, importing, exporting and dealing in all kinds of soap, detergents,

washing powder, polishes, cleaning substances, perfumery, toilet requisites and food, of all kinds.

 

The company is a wholly owned subsdiary of New Asia B.V. (NABV),Rotterdam, Netherlands. It has 2 ultimate parent companies, namely: UNILEVER N.V. (NV) and UNILEVER PLC (PLC). NV is a public limited company registered in the Netherlands, which has listings of shares and depositary receipts for shares in EURONEXT Amsterdam; and, of NEW YORK REGISTRY SHARES on the New York Stock Exchange. PLC, on the otherhand, is a public limited company registered in England and Wales, which has shares listed on the London Stock Exchange. The 2 ultimate parent companies, NV and PLC, together with their group companies, operate as a single entity (Unilever Group).

 

Business combination with Metrolab Industries Phils. Inc.

 

In Dec. 2010, pursuant to the Deed of Absolute Sales of Share of Stocks executed between

SARA LEE CORP. (ultimate parent company of Unilever Phils. Babe Care Inc.(UPBC), was implemented

on January, 2011, involving 100% of shares of stocks in favor of UPBC.

 

 

FINANCIAL CONDITION

 

(Audited Financial Statement for years 2014, 2013, & 2012, as compiled)

 

Balance Sheet

 

 

          2014 (Php)

        2013 (Php)

          2012 (Php)

                             Assets

 

 

 

Current Assets

 

 

 

     Cash & Cash equivalent

     2,089,522,671.

       690,289,591.

        1,148,693.356.

     Trade Receivables - net

        792,741,484.

    2,002,281,400.

        2,422,442,284.

      Inventories - net 

     3,147,767,785.

    2,371,511,491.

        2,970,054,375.

     Due from Related Parties

     1,075,166,313.

        630,570,413.

            796,651,324.

     Prepaid Expenses & Other Current Assets

         837,358,653.

        689,845,391.

            581,154,082.

             Total Current Assets

     7,942,556,906.

    6,384,498,286.

       7,938,995,421.

 

 

 

 

Non - Current Assets

 

 

 

      Deferred Tax Assets - net

     1,264,635,905.

    1,133,035,445.

        1,079,910,355.

     Property, Plant & Equipment - net

     4,973,880,920.

    4,156,422,307.

        3,973,583,424.

     Intangible Assets

     8,474,115,399.

    8,576,785,764.

        8,727,817,513.

     Investment in Shares of Stocks of 

         subsidiaries & associates

 

         815,408,144.

 

        815,408,144.

 

           781,708,149.

     Other Non Current Assets

         592,982,480.

        472,460,353.

           577,821,235.

           Total Non-Current Assets

   16,121,022,848.

  15,154,112,013.

     15,140,840,676.

TOTAL ASSETS

   24,063,579,754.

   vvvvvvvvvvvvvv              

  21,538,610,299.

  vvvvvvvvvvvvvv

     23,079,836,097.

      vvvvvvvvvvvvvv

 

 

 

 

                   Liabilities & Stockholder’s Equity

 

 

 

Current Liabilities

 

 

 

       Account Payables & Accrued Expenses

    7,847,003,090.

    7,205,859,099.

       7,396,350,957.

       Portion –Due to Related Parties

    1,443,949,057.

       749,502,272.

       2,291,539,198.

       Provisions

    2,739,088,582.

    2,532,681,677.

       1,982,111,907.

       Income Tax Payable

        431,699,145.

          NIL

               1,537,572.

       Borrowings

    1,284,000,000.

        335,000,000.

           330,000,000.

            Total Current Liabilities

  13,745,739,874.

  10,823,043,048.

     12,001,539,634.

 

 

 

 

Non - Current Liabilities

 

 

 

       Retirement Benefits Liability

        628,088,400.

       356,064,400.

          441,664,100.

       Due to Related Parties – net of current

            Portion

 

    6,030,020,000.

 

    6,030,020,000.

 

       6,030,000,000.

       Other Liabilities

             NIL            

             NIL            

               3,527,026.

             Total Non Current Liabilities

    6,658,108,400.

    6,386,084,400.

       6,475,191,126.

TOTAL LIABILITIES

  20,403,848,274.

  17,209,127,448.

     18,476,730,760.

 

 

 

 

 

                   Stockholder’s Equity

 

 

 

       Capital Stock

       245,926,150.

       245,926,150.

         245,926,150.

       Additional Paid In Capital

    2,837,63  3,942.

    2,827,806,946.

      2,808,309,072.

       Share based Compensation Reserve

             NIL            

         11,826,998.

           16,397,647.

       Retirement Plan Reserve

(      433,323,065.)

(      231,357,136.)

               NIL           

       Fair Value Reserve

       107,738,474.

       104,030,476.

         130,184,474.

       Other Reserve

       587,804,752.

       587,804,752.

         587,804,752.

       Retained Earnings         

       311,951,227.

       783,444,669.

               NIL            

        Unrestricted Retained Earnings

              NIL            

               NIL           

         813,853,242.

           Total Stockholder’s Equity

     3,659,731,480.

    4,329,482,851.

      4,603,105,337.

TOTAL LIABILITIES &   STOCKHOLDERS

           EQUITY

 

  24,063,579,754.

  vvvvvvvvvvvvvv

 

  21,538,610,299.

  vvvvvvvvvvvvvv

 

    23,079,836,097.

    Vvvvvvvvvvvvvv

 

 

COMPREHENSIVE INCOME STATEMENT

 

Net Sales

  46,691,354,596.

  43,223,789,577.

  40,676,810,450.

Gross Profit

  25,350,127,790.

  22,512,267,666.

  19,520,034,040.

Operating Expenses

( 16,768,782,296.)

( 16,699,705,405.)

( 15,316,511,145.)

Income from Operation / Profit

     8,581,345,494.

    5,812,562,261.

     4,203,522,895.

Interest Expense

(       286,181,804.)

(      280,218,969.)

(       418,408,542.)

Other Income - net

    2,315,576,699.

       449,935,772.

         464,985,787.

Income before Income Tax

  10,610,740,389.

    5,982,279,064.

     4,250,100,140.

Net Income / Profit

    7,509,313,003.

    4,254,241,749.

     3,080,739,178.

 Total Comprehensive Income

    7,311,055,074.

  vvvvvvvvvvvvvv

    4,405,582,548.

  vvvvvvvvvvvvvv

     2,729,297,656.

   vvvvvvvvvvvvvv

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.35

UK Pound

1

Rs.100.28

Euro

1

Rs.71.30

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

Report Prepared by :

TRU

 

               

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.