MIRA
INFORM REPORT
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Report Date : |
7th
February, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
PACIFIC
OLEO INDUSTRIES SDN BHD |
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Formerly Known as: |
AKZO & PACIFIC INDUSTRIES SDN BHD |
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Registered Office : |
Wisma Dls, 6 Jln Jurunilai U1/20, Hicom-Glenmarie Industrial Park, 40150 Shah Alam, Selangor, Malaysia |
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Country : |
Malaysia |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
24.11.1990 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer
of Fractionated Fatty Acid & Refined Glycerine. |
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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
EXECUTIVE SUMMARY
LOCAL NO : 208467-U
COMPANY NAME : PACIFIC OLEO INDUSTRIES SDN BHD
FORMER NAME : AKZO & PACIFIC INDUSTRIES SDN BHD (08-12-1994)
INCORPORATION DATE : 24/11/1990
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : WISMA DLS, 6 JLN JURUNILAI U1/20, HICOM-GLENMARIE
INDUSTRIAL PARK, 40150 SHAH ALAM, SELANGOR, MALAYSIA.
BUSINESS ADDRESS : PLO 285, JALAN PEKELILING TIMUR, 81707 PASIR GUDANG,
JOHOR, MALAYSIA.
TEL NO : 07 - 2518000/266
FAX NO : 07 - 2511066
EMAIL : azhar.mohd@pacificoleo.com
WEB SITE : www.pacificoleo.com
CONTACT PERSON : TAN GEOK CHAI (GENERAL MANAGER)
INDUSTRY CODE : 15144
PRINCIPAL ACTIVITY : MANUFACTURING OF FRACTIONATED FATTY ACID & REFINED
GLYCERINE
AUTHORISED CAPITAL : MYR20,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000 OF 1.00 EACH.
PREFERENCE SHARE 10,000,000 OF 1.00 EACH.
ISSUED & PAID UP CAPITAL : MYR10,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000 CASH OF 1.00 EACH.
SALES : MYR305,963,585 [2005]
NET WORTH : MYR96,009,283 [2005]
M1000 OVERALL RANKING : 861 [2005]
M1000 INDUSTRY RANKING : 46 [2005]
STAFF STRENGTH : 180 [2006]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : STRONG
PAYMENT : PROMPT
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : SATISFACTORY
INDUSTRY OUTLOOK : MARGINAL GROWTH
CREDIT RATING : Ba (please refer to appendix)
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 of fractionated fatty acid & refined glycerine.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is not qualified to be one of the Top Corporate Performers in the Malaysia 1000 (M1000) publication, a directory jointly published by Companies Commission of Malaysia (The Registrar Office), Minister of Domestic Trade and Consumer Affairs and our publication arm, BASIS Publications House Sdn Bhd.
The major shareholder(s) of the SC are shown as follows :
|
Name |
Address |
IC/PP/Loc No: |
Shareholding |
|
LAM SOON PLANTATIONS SDN BHD |
WISMA
DLS, 6 JLN JURUNILAI U1/20, HICOM GLENMARIE INDUSTRIAL PARK, 40150 SHAH ALAM,
SELANGOR. |
40857 |
10,000,000 |
|
|
|
|
10,000,000 |
===========
+ Also Director
DIRECTORS
We have conducted the following 2 essential checks on all the directors of the SC in our database:
*INTEREST CHECK This refers to a check in our databank whether the said person has any interest companies and businesses.
*CREDIT HISTORY CHECK : This refers to a check in our databank whether the said person has been involved in any legal suites, bankruptcy, liquidated/wound up companies in Malaysia and as well as any other default information related to him/her which were contributed by our valued subscribers. Our information on bankruptcy and wound up companies date back to 1900.
DIRECTOR 1
Name of Subject : KHOO HENG SUAN
Address : 21 JLN SS 2/57, 47300 PETALING JAYA, SELANGOR.
IC / PP No : 0869939
New IC No : 470109-04-5509
Date of Birth : 09/01/1947
Nationality : MALAYSIAN CHINESE
Date of Appointment : 24/11/1990
INTEREST CHECK
Interest in other companies : see below
Interest in business : none in our databank
INTEREST IN COMPANY
|
Name |
Designation |
Shareholding |
Court As At . |
|
ACE CANNING CORPORATION SDN BHD |
Director |
0 |
16/05/2005 |
|
ALIRAN INSAF (M) SDN BHD |
Director |
49,999 |
12/04/2006 |
|
ALPHA MANAGEMENT SERVICES SDN BHD |
Secretary |
0 |
25/03/2004 |
|
ALPHA MANAGEMENT SERVICES SDN BHD |
Director |
1 |
25/03/2004 |
|
CL COMPUTER SERVICES (MALAYSIA) SDN BHD |
Director |
1 |
ROC 10/05/2002 |
|
CL COMPUTERS (M) SDN BHD |
Director |
5 |
16/10/2003 |
|
DARA LAM-SOON SDN BHD |
Director |
0 |
05/05/2003 |
|
EUROX FINE INGREDIENTS SDN BHD |
Secretary |
0 |
03/05/2005 |
|
EUROX FINE INGREDIENTS SDN BHD |
Shareholder |
294,001 |
03/05/2005 |
|
GAINSTAY SDN BHD |
Director |
0 |
09/01/1990 |
|
GALATEA SDN BHD |
Director |
0 |
26/06/2006 |
|
INDUSTRIAL PACKAGING SDN BHD |
Shareholder |
285,000 |
HC 19/11/2004 |
|
KIAN HIN TIN FACTORY (M) SDN BHD |
Director |
1 |
10/11/1995 |
|
LAM SOON (M) BHD |
Director |
0 |
16/08/2006 |
|
LAM SOON EDIBLE OILS SDN BHD |
Director |
1,000 |
25/08/2006 |
|
LAM SOON FOOD INDUSTRIES SDN BHD |
Director |
0 |
17/01/1994 |
|
LAM SOON MANUFACTURING SDN BHD |
Director |
1 |
18/06/1998 |
|
LAM SOON PLANTATIONS SDN BHD |
Director |
0 |
10/06/2004 |
|
LAM SOON STRATEGIC SDN BHD |
Director |
0 |
27/04/2005 |
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PACIFIC OLEO INDUSTRIES SDN BHD |
Director |
0 |
03/08/2006 |
|
PACIFIC OLEOCHEMICALS SDN BHD |
Director |
0 |
28/12/2006 |
|
PACIFIC SOAP MFG SDN BHD |
Director |
1 |
05/05/2005 |
|
PEACE PRODUCTS SDN BHD |
Shareholder |
1 |
19/04/2002 |
|
RADAS IKHBAR SISTEM SDN BHD |
Director |
5 |
25/11/1989 |
|
RENNES PROPERTIES SDN BHD |
Secretary |
0 |
29/04/1997 |
|
SAMUDRA KIMIA INDUSTRI SDN BHD |
Director |
2,300,000 |
28/08/1999 |
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SINCERE LEASING SDN BHD |
Director |
120,000 |
13/09/2003 |
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SOUTHERN LION SDN BHD |
Director |
0 |
24/08/2006 |
|
SOUTHERN NISSHIN BIO-TECH SDN BHD |
Director |
0 |
08/02/2005 |
|
SUKA CHEMICALS (M) SDN BHD |
Director |
1,754,001 |
31/03/2006 |
|
SUNRISE RESEARCH SDN BHD |
Director |
240,000 |
04/08/2003 |
|
SYSTEMS FORMULATE SDN BHD |
Shareholder |
1 |
04/08/2003 |
|
VITALMIX SDN BHD |
Director |
375,000 |
09/08/2005 |
CREDIT HISTORY CHECK
Legal action : none in our databank
Bankruptcy action : none in our databank
Secretary/director/ shareholder of would up company : see below
Contributing subscriber default information : none in our databank
SECRETARY/DIRECTOR/SHAREHOLDER OF WOUND UP COMPANY
Local No : 81585
Company Name : SYSTEM FORMULATE SDN BHD
Registered Address : 21M JLN SS21/56B,D'SARA UTAMA, 47400 PETALING JAYA,
SELANGOR, MALAYSIA.
Incorporation Date : 23 Feb 1982
Status : PTE LTD CO
Authorised Capital : 750000
Paid Up Capital : 500003
Designation : Shareholder
Shareholding : 1
Last Updated : 21 Jun 2003
AR Date : 30 Sep 1986
F49 Date : 05 Dec 1986
Court : ROC
Place : KUALA LUMPUR
Case No : 308(4)
Year : 1997
Petition Date : 24 Mar 1997
Wound-up Date : 17 Jul 1997
Wound-up Ref : G.GAZETTE
Local No : 14628
Company Name : INDUSTRIAL PACKAGING SDN BHD
Registered Address : 1-9 JLN ARAB, 1ST FLR, 84000 MUAR, JOHOR, MALAYSIA.
Incorporation Date : 01 Aug 1973
Status : PTE LTD CO
Authorised Capital : 15000000
Paid Up Capital : 13000010
Designation : Shareholder
Shareholding : 285000
Last Updated : 19 Nov 2004
AR Date : 30 Sep 1986
F49 Date :
Court : HIGH COURT
Place : JOHOR
Case No : 264
Year : 2003
Petitioner : PERUSAHAAN CHIN HIN GIAP SDN BHD
Petitioner's Sol : ONG BAN CHAI & CO
Solicitor Ref : OBC/F/D.205/2003
Petition Date : 02 Dec 2003
Petition Ref : NST
Wound-up Date : 12 Aug 2004
Wound-up Ref : NST
Local No : 564886
Company Name : CL COMPUTER SERVICES (MALAYSIA) SDN BHD
Registered Address : WISMA DLS, 6 JLN JURUNILAI U1/20, LEVEL 5, 40150 SHAH
ALAM, SELANGOR, MALAYSIA.
Incorporation Date : 20 Nov 2001
Status : PTE LTD CO
Authorised Capital : 100000
Paid Up Capital : 2
Designation : Director
Shareholding : 1
Last Updated : 11 May 2002
AR Date : 30 Sep 1986
F49 Date :
Court : ROC
Place : KUALA LUMPUR
Case No : 308(4)
Year : 2006
Petition Date : 19 Jul 2005
Petition Ref : G.GAZETTE
Wound-up Date : 25 Aug 2005
Wound-up Ref : G.GAZETTE
No of companies as Secretary : 3 *
No of companies as Director : 26 *
No of companies as Shareholder : 5 *
- Further information can be obtained through the CROSS REFERENCING report
DIRECTOR 2
Name of Subject : TAN GEOK CHAI
Address : 44 JLN SURIA 2, TMN SURIA, 81000 JOHOR BARU, JOHOR.
IC / PP No : 4424813
New IC No : 530404-01-5419
Date of Birth : 04/04/1953
INTEREST CHECK
Interest in other companies : see below
Interest in business : none in our databank
INTEREST IN COMPANY
|
Name |
Designation |
Shareholding |
Court As At . |
|
PACIFIC
OLEO INDUSTRIES SDN BHD |
Director |
0 |
03/08/2006 |
|
PACIFIC
OLEOCHEMICALS SDN BHD |
Director |
0 |
28/12/2006 |
|
SYNTHESE
(MALAYSIA) SDN BHD |
Director |
0 |
03/10/2006 |
CREDIT HISTORY CHECK
Legal action : none in our databank
Bankruptcy action : none in our databank
Secretary/director/ shareholder of would up company : none in our databank
Contributing subscriber default information : none in our databank
DIRECTOR 3
Name of Subject : DATO MOHAMMED ADNAN BIN DATUK SHUAIB
Address : A1-5A ASTANA D''''SARA, 33 JLN 17/1, 46400 PETALING JAYA, SELANGOR.
IC / PP No : 4378668
New IC No : 391007-02-5261
Date of Birth : 07/10/1939
INTEREST CHECK
Interest in other companies : see below
Interest in business : none in our databank
INTEREST IN COMPANY
|
Name |
Designation |
Shareholding |
Court As At . |
|
BERJAYA LAND BHD |
Director |
0 |
07/07/2006 |
|
LAM SOON (M) BHD |
Director |
0 |
16/08/2006 |
|
LAM SOON EDIBLE OILS SDN BHD |
Director |
0 |
25/08/2006 |
|
MCIBS (MALAYSIA) SDN BHD |
Director |
0 |
HC 27/10/1994 |
|
METROPOLITAN COLLEGE SDN BHD |
Shareholder |
2,200,000 |
26/04/2004 |
|
PACIFIC OLEO INDUSTRIES SDN BHD |
Director |
0 |
03/08/2006 |
|
PACIFIC OLEOCHEMICALS SDN BHD |
Director |
0 |
28/12/2006 |
|
PERNAS HOTEL CHAIN (SARAWAK) SDN BHD |
Director |
0 |
08/05/2003 |
|
PERNAS HOTEL CHAIN HOLDINGS SDN BHD |
Director |
0 |
14/02/2002 |
|
TALAM PLANTATIONS SDN BHD |
Director |
0 |
10/02/1990 |
|
UNI.ASIA LIFE ASSURANCE BHD |
Director |
0 |
15/03/2005 |
CREDIT HISTORY CHECK
Legal
action :
none in our databank
Bankruptcy
action :
none in our databank
Secretary/director/
shareholder of would up company :
see below
Contributing
subscriber default information :
none in our databank
SECRETARY/DIRECTOR/SHAREHOLDER OF WOUND UP COMPANY
Local No : 128439
Company
Name : MCIBS (MALAYSIA) SDN
BHD
Registered
Address : WISMA
BUDIMAN, PERSIARAN RAJA CHULAN, 2ND FLR, 50200
KUALA LUMPUR.
Incorporation
Date : 09 Oct 1984
Status : PTE LTD
CO
Authorised
Capital : 100000
Paid Up
Capital : 73002
Designation : Director
Last
Updated : 19
Jan 1996
AR Date : 31 Dec
1989
F49 Date : 28 Aug 1990
Court : HIGH
COURT
Place : SELANGOR
Case No : 51
Year : 2004
Petitioner : DEWAN BAHASA
& PUSTAKA
Petitioner's
Sol : MAZWAN
PATHMA & CO
Solicitor
Ref :
D.2(L)/10/LH
Wound-up
Date : 02 Sep
2005
Wound-up
Ref : MALAY
MAIL
No of
companies as Director :
10 *
No of
companies as Shareholder : 1 *
*
Further information can be obtained through the CROSS REFERENCING report
DIRECTOR 4
Name of
Subject : MICHAEL WOO FONG MENG
Address : 54 NAMLY AVENUE,
267625, SINGAPORE.
IC / PP
No : S0353019A
Nationality : SINGAPOREAN
INTEREST CHECK
Interest
in other companies : see below
Interest
in business : none in
our databank
INTEREST IN COMPANY
|
Name |
Designation |
Shareholding |
Court As At . |
|
PACIFIC
OLEO INDUSTRIES SDN BHD |
Director |
0 |
03/08/2006 |
|
PACIFIC
OLEOCHEMICALS SDN BHD |
Director |
0 |
28/12/2006 |
CREDIT HISTORY CHECK
Legal
action :
none in our databank
Bankruptcy
action :
none in our databank
Secretary/director/
shareholder of would up company :
none in our databank
Contributing
subscriber default information :
none in our databank
DIRECTOR 5
Name of
Subject : WHANG SHANG YING
Address : 26A TUDOR CLOSE,
297953, SINGAPORE.
IC / PP
No : S1483019G
Nationality : SINGAPOREAN
INTEREST CHECK
Interest
in other companies : see below
Interest
in business : none in
our databank
INTEREST IN COMPANY
|
Name |
Designation |
Shareholding |
Court As At . |
|
LAM SOON EDIBLE OILS SDN BHD |
Director |
0 |
25/08/2006 |
|
PACIFIC
OLEO INDUSTRIES SDN BHD |
Director |
0 |
03/08/2006 |
|
PACIFIC
OLEOCHEMICALS SDN BHD |
Director |
0 |
28/12/2006 |
CREDIT HISTORY CHECK
Legal
action :
none in our databank
Bankruptcy
action :
none in our databank
Secretary/director/
shareholder of would up company :
none in our databank
Contributing
subscriber default information :
none in our databank
DIRECTOR 6
Name of
Subject : LT JEN (B) DATO RAJA
ABDUL RASHID BIN RAJA BADIOZAMAN
Address : DL 64, LRG NILAM, TMN
BKT AMPANG, JLN BKT BELACAN, 68000
AMPANG, SELANGOR.
IC / PP
No : N/A
New IC
No : 400718-08-5289
INTEREST CHECK
Interest
in other companies : see below
Interest
in business : none in
our databank
INTEREST IN COMPANY
|
Name |
Designation |
Shareholding |
Court As At . |
|
PACIFIC
OLEO INDUSTRIES SDN BHD |
Director |
0 |
03/08/2006 |
CREDIT HISTORY CHECK
Legal
action :
none in our databank
Bankruptcy
action :
none in our databank
Secretary/director/
shareholder of would up company :
none in our databank
Contributing
subscriber default information :
none in our databank
MANAGEMENT
1) Name of
Subject : TAN GEOK CHAI
Position : GENERAL
MANAGER
AUDITOR
Auditor : ERNST & YOUNG
Auditors'
Address : MENARA MILENIUM, JLN
DAMANLELA, PUSAT BDR D''SARA, LEVEL
23A, 50490 KUALA LUMPUR,
SELANGOR.
COMPANY SECRETARY
1)
Company Secretary : THIAN YEW FONG
IC / PP
No. : 5493695
New IC
No. : 581201-10-6150
Address : 206B FRASER EAST
TOWER, GASING HIGHTS CONDO, 92 JLN
5/60 PETALING JAYA, SELANGOR.
Date of
Appointment : 19/03/2004
BANKING
Banking
relations are maintained principally with :
1)Banker
Name : MALAYAN
BANKING BHD
The SC
enjoys normal banking routine with above mentioned banker(s).
No
adverse record was found during our investigation.
ENCUMBRANCE (S)
No
encumbrance was found in our databank at the time of investigation.
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 Malaysia
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 Percentage : 70%
Overseas : YES Percentage : 30%
Import Countries : ASIA.
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 [ X ] Good [ ] Average [ ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES Percentage : 60%
Domestic Markets : MALAYSIA.
Overseas : YES Percentage : 40%
Export Market : ASIA.
Credit Term : 30 - 60 DAYS.
Payment Mode : CHEQUES.
Type of Customer : END USERS .
No of Customer : 30
OPERATIONS
Products Manufactured : FRACTIONATED FATTY ACID & REFINED GLYCERINE
Competitor(s) : GOLDEN HOPE PLANTATIONS BHD
FELDA PALM INDUSTRIES SDN BHD
PREMIUM VEGETABLE OILS SDN BHD
SEONG THYE PLANTATIONS SDN BHD
PROSPER TRADING SDN BHD
Total Number of Employees :
YEAR 2006
GROUP N/A
COMPANY 180
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 : 07-2518000/266
Match : N/A
Address Provided By Client : PLO 285, JALAN PEKELILING TIMUR, 81707 PASIR
GUDANG, JOHOR
Current Address : PLO 285, JALAN PEKELILING TIMUR, 81707 PASIR
GUDANG, JOHOR, MALAYSIA.
Match : YES
Latest Financial Accounts : YES
Other Investigations
On 27th December 2006 we conducted an interview with the SC's staff from Finance Dept. He furnished us some information on the SC.
FINANCIAL COMMENTS
Profitability
:
Turnover : Increased [ 2002-2005 ]
Profit / ( Loss ) before tax : Increased [ 2002-2005 ]
Return on Shareholder Funds : Acceptable [ 14.61% ]
Return on Net Assets : Acceptable [ 19.18% ]
The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years. 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 [ 18 Days ]
Debtors Ratio : Favourable [ 36 Days ]
Creditors Ratio : Favourable [ 5 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 : Favourable [ 1.80 Times ]
Current Ratio : Favourable [ 2.29 Times ]
A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.
Solvency
:
Interest Cover : Nil [ 0.00 Times ]
Gearing Ratio : Favourable [ 0.19 Times ]
The SC's interest cover was nil as it did not pay any interest during the year. 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 :
Generally, the SC's performance has improved with higher turnover and profit.The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. 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: STRONG
COMMENTS
Established in 1990,the SC is a private limited company and is principally engaged in the manufacturing of fractinated fatty acid and refined glycerine. With its long presence in the industry coupled with its vast experiences in the business, the SC should have built up a certain goodwill with its client over times. With RM10,000,000 in issued and paid up capital, the SC has the potential of capturing a higher market shares as it is competing aggressively in the market.
Our investigation revealed that the SC serves both local and overseas clients. Penetrating into the overseas countries such as Asia countries has well diversified its business risk and at the same time added strength to its capabilities in capturing higher market shares. At present the workforce of the SC is 180 and the SC's business activities are headed by its General Manager Tan Geok Chai and its management capability is average.
For the financial year ended 31 December 2005, both turnover and profit of the SC increased compared to the previous year. Turnover of the SC grew by 13.76% to RM305,963,585. The SC recorded a pre-tax profit of RM19,340,015 for the year, an increase of 24.82% over the previous year. The SC generated an acceptable return on shareholder's fund indicating that the SC was efficient in utilising its shareholders' funds to generate favourable returns. Beside this the SC is in good liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations. A low gearing has minimised the SC's financial risk. Moreover with the comfortable networth standing at RM96,009,283, the SC is able to sustain its business performance in the near terms.
Based on our investigation we revealed that SC is exposed to currency fluctuation risk and operating costs as its products are imported from ASIA countries.
Based on our historical financial data, we concluded that the SC's payment is prompt. This implies a good credit control and the SC could be taking advantage of the cash discounts and maintain a good reputation with its creditors. The SC is clear of litigation.
In view of the above we recommend credit be granted to the SC normally.
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
PROFIT AND LOSS ACCOUNT
For The Year Ended 31-December-2005
2005 2004
MYR MYR
TURNOVER 305,963,585 268,945,246
=========== ===========
PROFIT/(LOSS)
FROM OPERATIONS 19,340,015 15,493,988
SHARE OF PROFITS/(LOSSES) OF ASSOCIATED
------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 19,340,015 15,493,988
Taxation <5,308,850> <4,294,590>
------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 14,031,165 11,199,398
------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 14,031,165 11,199,398
------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 14,031,165 11,199,398
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As
previously reported 63,478,118 53,778,720
------------------- -------------------
As
restated 63,478,118 53,778,720
------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 77,509,283 64,978,118
DIVIDENDS
- Ordinary (paid & proposed) <1,500,000> <1,500,000>
------------------- -------------------
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 76,009,283 63,478,118
=========== ===========
RETAINED
BY: The Company 76,009,283 63,478,118
------------------- -------------------
76,009,283 63,478,118
=========== ===========
BALANCE SHEET
As At 31-December-2005
PACIFIC OLEO INDUSTRIES SDN BHD
2005 2004
MYR MYR
ASSETS EMPLOYED:
FIXED
ASSETS 61,381,309 66,794,444
------------------- -------------------
TOTAL
LONG TERM ASSETS 61,381,309 66,794,444
CURRENT
ASSETS
Stocks 15,132,314 19,801,975
Trade
debtors 30,582,501 28,335,016
Other
debtors, deposits & prepayments 159,296 449,751
Items in transit between head office &
branches
Cash
& bank balances 24,153,784 22,296,724
------------------- -------------------
TOTAL
CURRENT ASSETS 70,027,895 70,883,466
CURRENT
LIABILITIES
Trade
creditors 3,942,079 1,163,340
Other
creditors & accruals 7,427,922 5,564,683
Short
term borrowings/Term loans 18,681,000 47,101,000
Provision
for taxation 506,301 -
------------------- -------------------
TOTAL
CURRENT LIABILITIES 30,557,302 53,829,023
------------------- -------------------
NET
CURRENT ASSETS/(LIABILITIES) 39,470,593 17,054,443
------------------- -------------------
TOTAL
NET ASSETS 100,851,902 83,848,887
=========== ===========
FINANCED
BY:
SHARE
CAPITAL
Ordinary
share capital 10,000,000 10,000,000
------------------- -------------------
TOTAL
SHARE CAPITAL 10,000,000 10,000,000
RESERVES
Retained profit/(Accumulated loss) carried
forward 76,009,283 63,478,118
Others
(please specify) 10,000,000 10,000,000
------------------- -------------------
TOTAL
RESERVES 86,009,283 73,478,118
------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 96,009,283 83,478,118
LONG
TERM & DEFERRED LIABILITIES & PROVISIONS
Deferred
taxation 4,842,619 370,769
------------------- -------------------
TOTAL LONG TERM & DEFERRED LIABILITIES
&
PROVISIONS 4,842,619 370,769
------------------- -------------------
100,851,902 83,848,887
=========== ===========
FINANCIAL RATIOS
As At 31-December-2005
PACIFIC OLEO INDUSTRIES SDN BHD
2005 2004
MYR MYR
TYPES OF FUNDS
Cash 24,153,784 22,296,724
Net
Liquid Funds 5,472,784 <24,804,276>
Net
Liquid Assets 24,338,279 <2,747,532>
Net
Current Assets/(Liabilities) 39,470,593 17,054,443
Net
Tangible Assets 100,851,902 83,848,887
Net
Monetary Assets 19,495,660 <3,118,301>
BALANCE
SHEET ITEMS
Total
Borrowings 18,681,000 47,101,000
Total
Liabilities 35,399,921 54,199,792
Total
Assets 131,409,204 137,677,910
Net
Assets 100,851,902 83,848,887
Net
Assets Backing 96,009,283 83,478,118
Shareholders''
Funds 96,009,283 83,478,118
Total
Share Capital 10,000,000 10,000,000
Total
Reserves 86,009,283 73,478,118
LIQUIDITY
(Times)
Cash
Ratio 0.79 0.41
Liquid
Ratio 1.80 0.95
Current
Ratio 2.29 1.32
WORKING
CAPITAL CONTROL (Days)
Stock
Ratio 18 27
Debtors
Ratio 36 38
Creditors
Ratio 5 2
SOLVENCY
RATIOS (Times)
Gearing
Ratio 0.19 0.56
Liabilities
Ratio 0.37 0.65
Times
Interest Earned Ratio 0 0
PERFORMANCE
RATIO (%)
Operating
Profit Margin 6.32 5.76
Net
Profit Margin 4.59 4.16
Return
On Net Assets 19.18 18.48
Return
On Capital Employed 16.18 11.83
Return
On Shareholders'' Funds/Equity 14.61 13.42
Dividend
Pay Out Ratio (Times) 0.11 0.13
NOTES
TO ACCOUNTS
Contingent
Liabilities 0 0
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|