MIRA
INFORM REPORT
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Report Date : |
23.08.2007 |
IDENTIFICATION DETAILS
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Name : |
INNO-WANGSA OILS & FATS SDN BHD |
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Registered Office : |
Plo 514, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
08/11/1993 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing and Packaging of Edible Oils and related Products |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
* Adopted
abbreviations : SC - Subject Company ( the company enquired
by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 280987-H
COMPANY NAME : INNO-WANGSA OILS & FATS SDN
BHD
FORMER NAME : INNO-WANGSA SDN BHD (24-08-2000)
INCORPORATION DATE : 08/11/1993
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : PLO 514, JALAN PEKELILING, 81700
PASIR GUDANG,
BUSINESS ADDRESS : PLO 514, JALAN PEKELILING, 81700
PASIR GUDANG,
TEL NO : 07 - 2553888
FAX NO : 07 - 2553889
EMAIL : iwsb@po.jaring.my
WEB SITE : www.inno-wangsa.com
CONTACT PERSON : RATNAKRISHNAN S/O PONUSAMY (MANAGING
DIRECTOR)
INDUSTRY CODE : 15149
15499
PRINCIPAL ACTIVITY : MANUFACTURING AND PACKAGING OF EDIBLE
OILS AND
RELATED
PRODUCTS
AUTHORISED CAPITAL : MYR5,000,000.00 DIVIDED INTO ORDINARY
SHARE
5,000,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR5,000,000.00 DIVIDED INTO ORDINARY
SHARE
5,000,000
CASH OF MYR1.00 EACH.
SALES : MYR121,568,451 [2006]
NET WORTH : MYR6,567,067 [2006]
STAFF STRENGTH : 40
[2007]
BANKER (S) : HSBC BANK
: RHB BANK BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : FAIR
PAYMENT : GOOD
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : HIGH
GENERAL REPUTATION : SATISFACTORY
INDUSTRY OUTLOOK : AVERAGE GROWTH
HISTORY / BACKGROUND
The SC is a private limited company and is allowed to have a minimum of
one and a maximum of forty-nine shareholders. As a private limited company, the
SC must have at least two directors. A private limited company is a separate
legal entity from its shareholders. As a separate legal entity, the SC is
capable of owning assets, entering into contracts, sue or be sued by other
companies. The liabilities of the shareholders are to the extent of the equity
they have taken up and the creditors cannot claim on shareholders' personal
assets even if the SC is insolvent. The SC is governed by the Companies Act,
1965 and the company must file its annual returns, together with its financial
statements with the Registrar of Companies.
The SC is principally engaged in the (as a / as an) manufacturing and
packaging of edible oils and related products.
The SC is not listed on
The SC is not qualified to be one of the Top Corporate Performers in the
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
MR. RATNA KRISHNAN S/O 16 JLN SG 6/5, TMN SRI GOMBAK, 68100 BATU 5510375 3,500,000
PONUSAMY + CAVES,
SELANGOR. 580830-01-5169
MS. HELEN D/O MICHEAL 31, JALAN STULANG BARU,
MANIAM + 81100
JOHOR BAHRU,
--------------------
5,000,000
===========
+
Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. RATNA KRISHNAN S/O PONUSAMY
Address : 16 JLN SG 6/5, TMN SRI GOMBAK, 68100
SELANGOR.
IC / PP No. : 5510375
New IC No : 580830-01-5169
Date of Birth : 30/08/1958
Nationality :
Date of Appointment : 08/11/1993
DIRECTOR 2
Name of Subject : MS. HELEN D/O MICHEAL MANIAM
Address : 31, JALAN STULANG BARU,
BAHRU,
IC / PP No. : 6950807
New IC No : 630205-06-5366
Date of Birth : 05/02/1963
Nationality : MALAYSIAN INDIAN
Date of Appointment : 02/09/1997
MANAGEMENT
1) Name of Subject : RATNAKRISHNAN
S/O PONUSAMY
Position : MANAGING DIRECTOR
2) Name of Subject : NAGARAJAN
Position : SALES MANAGER
3) Name of Subject : BALASUBRAMANIAM
Position : PRODUCTION MANAGER
AUDITOR
Auditor : AHAMAD NAINA MYDIN & ASSOCIATES
Auditors' Address :
59000,
WILAYAH
COMPANY SECRETARY
1) Company Secretary : MS.
ANG CHAI GEOK
IC / PP No. : 5713560
New IC No. : 590807-08-5694
Address : 109, JALAN SS 18/1B, 47500 SUBANG JAYA, SELANGOR,
Date of Appointment : 08/11/1993
2) Company Secretary : MS.
KOK WAI YIN
IC / PP No. : A0678799
New IC No. : 670427-10-5956
Address : 36A, JALAN TERATAI 2/7,
Date of Appointment : 08/11/1993
BANKING
Banking relations are maintained principally with :
1) Banker Name : HSBC
BANK
2) Banker Name : RHB
BANK BHD
The SC enjoys normal banking routine with above mentioned banker(s).
The SC has bank charges with above mentioned banker(s).
ENCUMBRANCE (S)
ENCUMBRANCE 1
Date of Creation : 25 Sep 2002
Description of Charge : N/A
Amount Secured : RM 3,600,000.00
Description of Property Affected : N/A
Name & Address of Chargee : HSBC BANK
Form 40 Dated
Registered and Numbered 1 In The
Register of Charges
ENCUMBRANCE 2
Date of Creation : 26 May 2004
Description of Charge : N/A
Amount Secured : RM 1,019,256.00
Description of Property Affected : N/A
Name & Address of Chargee : RHB BANK BHD
Form 40 Dated
Registered and Numbered 2 In The
Register of Charges
LEGAL CHECK AGAINST THE SC
* A check has been
conducted in our databank against the SC whether the subject has been
involved in any
litigation. Our databank consists of 99% of the wound up companies in
back dated since 1900.
No legal action was found in our databank.
No winding up petition was found in our data bank
PAYMENT RECORD
SOURCES OF RAW MATERIALS :
Local : YES
Overseas : YES
The SC refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data we
conclude that :
OVERALL PAYMENT HABIT
Prompt [ ] Good [ X ] Average [ ]
Fair [ ] Poor [ ]
CLIENTELE
Local : NO Percentage : 0
%
Overseas : YES Percentage : 100%
Export Market :
Credit Term : AS AGREED.
Payment Mode : TELEGRAPHIC TRANSFER (TT), CHEQUES,
LETTER OF CREDIT (LC).
Type of Customer : DISTRIBUTORS.
OPERATIONS
Products Manufactured : PALM BASED EDIBLE VEGETABLE COOKING
OIL, VEGETABLE
GHEE,
MARGARINE, SHORTENINGS AND NON-EDIBLE PALM
BY-PRODUCTS
Competitor(s) : PAN-CENTURY OLEOCHEMICALS SDN BHD
ACIDCHEM
INTERNATIONAL SDN BHD
CENTRAL
EDIBLE OIL SDN BHD
SOON
SOON OILMILLS SDN BHD
MEWAHOLEO
INDUSTRIES SDN BHD
Ownership of premises : LEASED/RENTED
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 40 44 43
Branch : NO
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's
(BERNAMA) database, but no latest development was noted in our
investigation.
CURRENT INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
Telephone Number Provided By Client : N/A
Current Telephone Number : 07-2553888
Match : N/A
Address Provided By Client : PLO NO 514 JALAN PEKELILING 81700
PASIR
GUDANG
JOHOR
Current Address : PLO 514, JALAN PEKELILING, 81700
PASIR
GUDANG,
Match : YES
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with one of the SC's staff, Ms. Usha. She
revealed some relevant information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Decreased [ 2.27% ]
Profit / ( Loss ) before tax : Increased [ 17.20% ]
Return on Shareholder Funds : Acceptable [ 11.36% ]
Return on Net Assets : Acceptable [ 12.88% ]
The lower turnover could be due to the unfavourable market conditions.
The SC's management have been efficient in controlling its operating costs. The
SC's management had generated acceptable return for its shareholders using its
assets.
Working Capital Control :
Stocks Ratio : Favourable [ 4 Days ]
Debtors Ratio : Favourable [ 23 Days ]
Creditors Ratio : Favourable [ 27 Days ]
The SC's stocks were moving fast thus reducing its holding cost. This
had reduced funds being tied up in stocks. The favourable debtors' days could
be due to the good credit control measures implemented by the SC. The SC had a
favourable creditors' ratio as evidenced by its favourable collection days. The
SC could be taking advantage of the cash discounts and also wanting to maintain
goodwill with its creditors.
Liquidity :
Liquid Ratio : Acceptable [ 0.95 Times ]
Current Ratio : Unfavourable [ 1.06 Times ]
The SC's liquid ratio was slightly low. This could indicate that the
SC's working capital was slightly deficient. The SC will have to improve its
liquidity position either by obtaining short term financing or increase its
paid up capital so that it can meet all its short term obligations as and when
they fall due.
Solvency :
Interest Cover : Acceptable [ 5.51 Times ]
Gearing Ratio : Favourable [ 0.13 Times ]
The SC's interest cover was slightly low. If there is no sharp fall in
its profit or sudden increase in the interest rates, we believe the SC is able
to generate sufficient income to service its interest and repay the loans. The
SC was lowly geared thus it had a low financial risk. The SC was mainly
financed by its shareholders' funds and internally generated funds. In times of
economic slowdown / downturn, the SC being a lowly geared company, will be able
to compete better than those companies which are highly geared in the same
industry.
Overall Assessment :
Due to the efficient control of its operating costs, the SC was able to
remain profitable despite lower turnover achieved during the year. The SC's
liquidity was at an acceptable range. If the SC is able to obtain further short
term financing, it should be able to meet all its short term obligations. The
SC had an acceptable interest cover. If there is no sudden sharp increase in
interest rate or fall in the SC's profit, we do believe the SC is able to
generate sufficient cash flow to service its interest payment. The SC as a
lowly geared company, will be more secured compared to those highly geared
companies. It has the ability to meet all its long term obligations.
Overall financial condition of the SC: FAIR
COMMENTS
Incorporated in 1993 as a private limited company, the SC is principally
engaged in manufacturing and packaging of edible oils and related products.
With issued and paid up capital of RM5 million, the SC is a moderate size
company with almost 14 years of experience in the business.
Over the years, the SC has expanded steadily in the international arena.
As part of its global marketing strategy, the SC's main concern is on the
overseas market. We noted that all the SC's products are mainly exported to
During the financial year 2006, the SC reported a growth of 17.2% in its
pre-tax profit from RM640,807 to RM751,013 despite the lower turnover of
RM121,568,451. The SC has generated an acceptable return of 11.35% for its
shareholders which indicated that the management was efficient in utilising its
funds to generate income. However, its liquid ratio was slightly low at 0.95
times. It may face working capital deficiency in meeting its short term
financial obligations. Being a lowly geared company, the SC is exposed to low
financial risk. Overall, the SC's financial standing is fair.
Investigation revealed that the SC's raw materials are sourced locally
and imported from overseas countries. In this regard, the SC's forex exposure
is high as its business operation mainly involved exportation and importation.
Based on the historical financial data, we concluded that the SC's
payment record is good. The SC is clear of litigation.
The SC's future prospect remains bright as the SC's products are used in
a great variety of applications and are essential to everyday life. We believe
that the encouraging demand for the SC's products would present more business
opportunities for the SC.
In view of the above, we recommend credit be granted to the SC with
monitoring.
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH
PROFIT AND LOSS
ACCOUNT
For
The Year Ended 31-March-2006
INNO-WANGSA
OILS & FATS SDN BHD
2006 2005
MYR MYR
TURNOVER 121,568,451 124,394,534
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PROFIT/(LOSS) FROM OPERATIONS 751,013 640,807
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
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PROFIT/(LOSS)
BEFORE TAXATION 751,013 640,807
Taxation <5,325> <5,265>
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PROFIT/(LOSS)
AFTER TAXATION 745,688 635,542
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 745,688 635,542
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PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 745,688 635,542
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported 821,379 185,837
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As restated 821,379 185,837
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PROFIT
AVAILABLE FOR APPROPRIATIONS 1,567,067 821,379
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RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 1,567,067 821,379
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RETAINED BY: The Company 1,567,067 821,379
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1,567,067 821,379
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INTEREST
EXPENSE (as per notes to P&L)
Other
interest expenses 166,522 121,785
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166,522 121,785
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BALANCE SHEET
As At
31-March-2006
2006 2005
MYR MYR
ASSETS EMPLOYED:
FIXED ASSETS 6,415,155 4,913,494
LONG
TERM INVESTMENTS/OTHER ASSETS
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INTANGIBLE ASSETS
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TOTAL LONG
TERM ASSETS 6,415,155 4,913,494
CURRENT ASSETS
Stocks 1,286,851 1,487,125
Trade debtors 7,632,321 12,338,776
Other
debtors, deposits & prepayments 1,322,880 861,306
Items in
transit between head office & branches
Amount due
from related companies 46,649 -
Amount due
from director 88,503 2,276
Cash &
bank balances 1,665,009 1,820,017
tax
recoverable 31,323 17,730
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TOTAL CURRENT
ASSETS 12,073,536 16,527,230
CURRENT
LIABILITIES
Trade
creditors 8,998,148 12,879,738
Other
creditors & accruals 2,088,536 1,935,132
Hire purchase
& lease creditors 185,587 23,922
Short term
borrowings/Term loans 94,585 94,585
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TOTAL CURRENT
LIABILITIES 11,366,856 14,933,377
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NET CURRENT
ASSETS/(LIABILITIES) 706,680 1,593,853
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TOTAL NET
ASSETS 7,121,835 6,507,347
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FINANCED BY:
SHARE CAPITAL
Ordinary
share capital 5,000,000 5,000,000
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TOTAL SHARE
CAPITAL 5,000,000 5,000,000
RESERVES
Retained profit/(Accumulated loss) carried
forward 1,567,067 821,379
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TOTAL
RESERVES 1,567,067 821,379
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SHAREHOLDERS'
FUNDS/EQUITY 6,567,067 5,821,379
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Long term
loans 532,809 627,394
Hire purchase
creditors 21,959 58,574
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TOTAL
LONG TERM & DEFERRED LIABILITIES &
PROVISIONS 554,768 685,968
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7,121,835 6,507,347
=========== ===========
FINANCIAL RATIOS
As
At 31-March-2006
INNO-WANGSA
OILS & FATS SDN BHD
2006 2005
MYR MYR
TYPES OF FUNDS
Cash 1,665,009 1,820,017
Net Liquid
Funds 1,570,424 1,725,432
Net Liquid
Assets <580,171> 106,728
Net Current
Assets/(Liabilities) 706,680 1,593,853
Net Tangible
Assets 7,121,835 6,507,347
Net Monetary
Assets <1,134,939> <579,240>
BALANCE
SHEET ITEMS
Total
Borrowings 834,940 804,475
Total
Liabilities 11,921,624 15,619,345
Total Assets 18,488,691 21,440,724
Net Assets 7,121,835 6,507,347
Net Assets
Backing 6,567,067 5,821,379
Shareholders''
Funds 6,567,067 5,821,379
Total Share
Capital 5,000,000 5,000,000
Total
Reserves 1,567,067 821,379
LIQUIDITY
(Times)
Cash Ratio 0.15 0.12
Liquid Ratio 0.95 1.01
Current Ratio 1.06 1.11
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 4 4
Debtors Ratio 23 36
Creditors
Ratio 27 38
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.13 0.14
Liabilities
Ratio 1.82 2.68
Times
Interest Earned Ratio 5.51 6.26
PERFORMANCE
RATIO (%)
Operating
Profit Margin 0.62 0.52
Net Profit
Margin 0.61 0.51
Return On Net
Assets 12.88 11.72
Return On
Capital Employed 12.40 11.51
Return On
Shareholders'' Funds/Equity 11.35 10.92
Dividend Pay
Out Ratio (Times) 0 0
NOTES
TO ACCOUNTS
Contingent
Liabilities 0 0
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)