MIRA
INFORM REPORT
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Report Date : |
15.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
ACIDCHEM INTERNATIONAL SDN BHD |
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Registered Office : |
2411, Lorong Perusahaan 1, Prai Industrial Complex, 13600 Perai, Pulau
Pinang |
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Country : |
Malaysia |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
16/12/1983 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing of Fatty Acids & Glycerine |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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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 : 111715-H
COMPANY NAME : ACIDCHEM INTERNATIONAL SDN BHD
FORMER NAME : PALMCHEM (M) SDN BHD (05-07-1995)
: GOLDSTONE SDN BHD
INCORPORATION DATE : 16/12/1983
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : 2411, LORONG PERUSAHAAN 1, PRAI
INDUSTRIAL
COMPLEX,
13600 PERAI, PULAU PINANG, MALAYSIA.
BUSINESS ADDRESS : 2411 LORONG PERUSAHAAN 1, PRAI
INDUSTRIAL
COMPLEX,
13600 PERAI, PULAU PINANG, MALAYSIA.
TEL NO : 04 - 3907818
FAX NO : 04 - 3907252
EMAIL : sales@acidchem.com.my
WEB SITE : www.acidchem-international.com.my
CONTACT PERSON : LAI CHOON WAH (GENERAL MANAGER)
INDUSTRY CODE : 2429
PRINCIPAL ACTIVITY : MANUFACTURING OF FATTY ACIDS &
GLYCERINE
AUTHORISED CAPITAL : MYR25,000,000.00 DIVIDED INTO
ORDINARY SHARE
24,500,000
OF MYR1.00 EACH.
PREFERENCE
SHARE 500,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR20,000,000.00 DIVIDED INTO ORDINARY
SHARE
20,000,000
CASH OF MYR1.00 EACH.
SALES : MYR886,773,012 [2006]
NET WORTH : MYR325,212,683 [2006]
M1000 OVERALL RANKING : 325 [2005]
M1000 INDUSTRY RANKING : 16 [2005]
STAFF STRENGTH : 650
[2007]
BANKER (S) : HSBC BANK MALAYSIA BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : STABLE
PAYMENT : N/A
MANAGEMENT CAPABILITY : GOOD
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : GOOD
INDUSTRY OUTLOOK : STRONG 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 of
fatty acids & glycerine.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is 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.
According to the Malaysia 1000 publication, the SC's ranking are as
follows :
YEAR 2005 2004
OVERALL RANKING 325 415
INDUSTRY RANKING 16 14
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
IOI OLEOCHEMICAL TWO IOI SQUARE, IOI RESORT, 62502 29994 20,000,000
INDUSTRIES BHD PUTRAJAYA, WILAYAH PERSEKUTUAN,
MALAYSIA.
--------------------
20,000,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. TAN KEAN HUA
Address : 14, JALAN 31/74B, KOTA KEMUNING,
40460 SHAH ALAM,
SELANGOR,
MALAYSIA.
IC / PP No. : 7228989
New IC No : 640202-10-5499
Date of Birth : 02/02/1964
Nationality : MALAYSIAN CHINESE
Date of Appointment : 01/07/2006
DIRECTOR 2
Name of Subject : DATO' LEE YEOW CHOR
Address : 6, JALAN BAVERLEY UTAMA, IOI RESORT, SELANGOR,
MALAYSIA.
IC / PP No. : A0579701
New IC No : 661129-10-5443
Date of Birth : 29/11/1966
Nationality : MALAYSIAN CHINESE
Date of Appointment : 01/03/2002
Qualification : LLB (HONS) KING'S COLLEGE, UNIVERSITY
OF LONDON & WAS CALLED
AS
A BARRISTER AT GRAY'S INN. HE ALSO HOLDS A POSTGRADUATE
DIPLOMA
IN FINANCE AND ACCOUNTING FROM THE LONDON SCHOOL
OF
ECONOMICS.
Working Experience : AS A GROUP EXECUTIVE DIRECTOR, HE IS
ACTIVELY INVOLVED IN
OVERSEEING
THE VARIOUS BUSINESS OPERATIONS OF THE GROUP.
PRIOR
TO JOINING THE IOI GROUP, HE SERVED IN VARIOUS CAPACITIES
IN
THE ATTORNEY GENERAL'S CHAMBERS AND JUDICIARY DEPARTMENT
FOR
APPROXIMATELY FOR 4 YEARS. HIS LAST POSTING AT THE
JUDICIARY
DEPARTMENT WAS A MAGISTRATE.
CURRENTLY
SERVES AS THE NATIONAL SECRETARY-GENERAL OF THE
MALAYSIA
REAL ESTATE & HOUSING DEVELOPERS' ASSOCIATION
(REHDA).
Other Info : HE IS A COUNCIL MEMBER OF THE
MALAYSIAN PALM OIL ASSOCIATION
(MPOA)
AND A COUNCIL MEMBER OF THE MALAYSIAN ASSOCIATION OF
HOTEL
OWNERS.
DIRECTOR 3
Name of Subject : MS. LEE AI LENG
Address : 323, JALAN BK 2/7, BANDAR KINRARA,
58200 KUALA LUMPUR,
WILAYAH
PERSEKUTUAN, MALAYSIA.
IC / PP No. : A0256824
New IC No : 651116-05-5038
Date of Birth : 16/11/1965
Nationality : MALAYSIAN CHINESE
Date of Appointment : 31/07/1999
Qualification : LLB (HONS) UM IN 1990.
Working Experience : CONSIDERABLE LEGAL EXPERIENCE
ESPECIALLY IN RESPECT OF
CORPORATE
EXERCISES, BANKING, LAND LAW, GENERAL AGREEMENT &
LITIGATION.
SHE WAS WITH JEYARATNAM & CHONG FROM 1992-1994 AS
A
SOLICITOR. WITH MARGERET YEO & NAZRIN IN 1992 & PAUL ANG & CO
FROM
1991-1992. CO SEC (28/5/97) & LEGAL ADVISOR (1/1/94) OF IOI
GROUPS.
DIRECTOR 4
Name of Subject : MR. YEO HOW
Address : 12, JALAN 13, TAMAN UNITED, OFF JALAN
KLANG LAMA, 58200 KUALA
LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No. : 4982725
New IC No : 560718-07-5593
Date of Birth : 18/07/1956
Nationality : MALAYSIAN CHINESE
Date of Appointment : 28/03/1997
Working Experience : HE IS PRINCIPALLY RESPONSIBLE FOR
OVERSEEING THE FINANCIAL
MANAGEMENT
OF THE GROUP. HE HAS CONSIDERABLE EXPERIENCE
IN
CORPORATE FINANCE AND GENERAL MANAGEMENT. HE HAS BEEN
WITH
THE IOI GROUP FOR THE PAST 21 YEARS AND PRIOR TO
JOINING
THE IOI GROUP IN 1983, HE HAS WITH A PUBLIC ACCOUNTING
FIRM
FOR THE 5 YEARS. HE IS ALSO THE GROUP EXECUTIVE
DIRECTOR
(FINANCE & CORPORATE AFFAIRS).
Other Info : HE IS A CERTIFIED PUBLIC ACCOUNTANT
AND A MEMBER OF THE
MALAYSIAN
INSTITUTE OF ACCOUNTANTS AND ALSO A COUNCIL
MEMBER
OF THE MALAYSIAN INSTITUE OF CERTIFIED PUBLIC
ACCOUNTANTS
(MICPA).
MANAGEMENT
1) Name of Subject : LAI
CHOON WAH
Position : GENERAL MANAGER
2) Name of Subject : CHEAH
SENG CHYE
Position : SENIOR MARKETING MANAGER
3) Name of Subject : IRIN
DE CRUZ
Position : SENIOR HUMAN RESOURCE MANAGER
4) Name of Subject : TAN
KEAN HUA
Position : CHIEF OPERATING OFFICER
AUDITOR
Auditor : KPMG
Auditors' Address : WISMA KPMG, JALAN DUNGUN, DAMANSARA
HEIGHTS, 50490 KUALA
LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MS.
YAP CHON YOKE
New IC No. : 580106-10-5550
Address : 40, JALAN SS 2/100, 47300 PETALING JAYA, SELANGOR,
MALAYSIA.
Date of Appointment : 28/03/1997
BANKING
Banking relations are maintained principally with :
1) Banker Name : HSBC
BANK MALAYSIA BHD
The SC enjoys normal banking routine with above mentioned banker(s).
No adverse record was found during our investigation.
ENCUMBRANCE (S)
ENCUMBRANCE 1
Date of Creation : 26 Mar 1992
Description of Charge : AGREEMENT, OPEN CHARGE
Amount Secured : N/A
Description of Property Affected : FIXED & FLOATING CHARGE
Name & Address of Chargee : HONGKONG BANK MALAYSIA BHD
Form 40 Dated 15 Jun 1992
Registered and Numbered 3 In The
Register of Charges
ENCUMBRANCE 2
Date of Creation : 26 Mar 1992
Description of Charge : LETTER OF PLEDGE, OPEN CHARGE
Amount Secured : N/A
Description of Property Affected : FIXED & FLOATING CHARGE
Name & Address of Chargee : HONGKONG BANK MALAYSIA BHD
Form 40 Dated 15 Jun 1992
Registered and Numbered 4 In The
Register of Charges
ENCUMBRANCE 3
Date of Creation : 26 Mar 1992
Description of Charge : NEGATIVE PLEDGE, OPEN CHARGE
Amount Secured : N/A
Description of Property Affected : FIXED & FLOATING CHARGE
Name & Address of Chargee : HONGKONG BANK MALAYSIA BHD
Form 40 Dated 15 Jun 1992
Registered and Numbered 5 In The
Register of Charges
ENCUMBRANCE 4
Date of Creation : 20 Jul 1993
Description of Charge : NEGATIVE PLEDGE
Amount Secured : RM 20,000,000.00
Description of Property Affected : FIXED CHARGE
Name & Address of Chargee : DEVELOPMENT & COMMERCIAL BANK BHD
1319 JLN BARU, CHAI
LENG PARK, 13700 PRAI, PROVINCE
WELLESLEY.
Form 40 Dated 07 Sep 1993
Registered and Numbered 6 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 Malaysia
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 Percentage : 60%
Overseas : YES Percentage : 40%
Import Countries : ASIA.
CLIENTELE
Local : YES
Domestic Markets : MALAYSIA.
Overseas : YES
Export Market : ASIA, EUROPE, UNITED STATES,
AUSTRALIA.
Credit Term : AS AGREED.
Payment Mode : LETTER OF CREDIT (LC), TELEGRAPHIC
TRANSFER (TT), CHEQUES.
Type of Customer : AGENTS, DEALERS.
OPERATIONS
Products Manufactured : VEGETABLE BASED FATTY ACIDS &
GLYCERINE, BLENDED FATTY ACIDS
Award : MS ISO 14001 Year : 2005
OHSAS 18001 Year : 2005
MS ISO 9001 : 2000 Year : 2003
Competitor(s) : CENTURY CHEMICAL WORKS SDN BHD
DAIREN
CHEMICAL (M) SDN BHD
FLEXSYS
CHEMICALS (M) SDN BHD
PERFORMANCE
ADDITIVES SDN BHD
STABILCHEM
(M) SDN BHD
Member(s) / Affiliate(s) : FEDERATION OF MALAYSIAN MANUFACTURERS
(FMM)
Ownership of premises : OWNED
Production capacity : APPROXIMATELY 320,000 METRIC TONNES
PER YEAR OF FATTY
ACID
AND GLYCERINE
Shifts : 3
Total Number of Employees :
YEAR 2007 2006
GROUP N/A N/A
COMPANY 650 580
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 : 04-3907818
Match : N/A
Address Provided By Client : P O BOX, 237, 12720 BUTTERWORTH
PENANG
Current Address : 2411 LORONG PERUSAHAAN 1, PRAI
INDUSTRIAL
COMPLEX,
13600 PERAI, PULAU PINANG, MALAYSIA.
Match : NO
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with Ms Shoba from the SC's Human Resource
Department. She revealed some information pertaining to the SC.
FINANCIAL COMMENTS
The financial summary of the SC in Year 2006 showed that it was
financially STABLE. The SC has generated an acceptable return on its
shareholders' funds, indicating that the SC was efficient in utilizing its
shareholders' funds to generate acceptable returns. Besides that, the SC was in
good liquidity position with its current liabilities are well covered by its
current assets. With its net current assets, the SC should be able to repay its
short term obligations. A low liabilities ratio has minimized the SC's financial risk.
Overall financial condition of the SC: STABLE
COMMENTS
Established in 1983, the SC is principally engaged in the manufacturing
of fatty acids and glycerine. Its long presence in the industry coupled with
its vast experience has enabled the SC to remain competitive. Good reputation
build up over the years has given the SC an edge when competing in the
industry. With RM20 million 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.
In order to further grow the business, the SC has broaden its reach and
penetrated into the global market. At present, the SC's revenue is derived from
overseas markets such as ASIA, Europe, United States and Australia. The wider
range of its market segments has benefited the SC in terms of higher earnings
and minimised its business risk. Operating on a large scale, the SC has
approximately 650 employees in its operation. Overall the management capability
of the SC is good. Over the years, the SC has achieved several awards which has
sharpen its competitiveness.
Based on the latest financial year 2006, the SC posted pre-tax profit of
RM63.58 million and its turnover stood at RM886.77 million. The SC generated an
acceptable return on shareholders' funds of the SC indicating that the SC was
efficient in utilising its shareholders' funds to generate favourable returns.
The SC was in good liquidity position with its current liabilities well covered
by its current assets. With its current net assets, the SC should be able to
repay its short term obligations. A low liabilities ratio has minimised the
SC's financial risk. Moreover given a healthy net worth standing at RM325.21
million the SC should be able to maintain its business in the near terms.
Investigation revealed that the SC sources its raw materials from both
local and overseas countries. As a result, the SC is exposed to foreign
currency fluctuation risk. The industry shows an upward trend and this
trend is very likely to sustain in the near future. With the promising outlook
of the industry performance, the business potential of the SC should be
favourable. Moreover, with the SC's strong background, the SC has a competitive
edge against other players in the same fields.
In view of the above we recommend credit be granted to the SC promptly.
THE FINANCIAL STATEMENTS WERE
PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
PROFIT
AND LOSS ACCOUNT
ACIDCHEM
INTERNATIONAL SDN BHD
30-June-2006
Consolidated
Accounts : No
UnQualified
Reports : Yes
RM
Turnover 886,773,012.00
Operating
Revenue 0.00
----------------------------
Profit
/ (Loss) Before Tax 63,588,348.00
----------------------------
Profit
/ (Loss) After Tax 47,644,257.00
Extraordinary
Item 0.00
Minority
Interest 0.00
----------------------------
Profit/(Loss)
Attributable to Shareholders 47,644,257.00
----------------------------
Prior
Period Adjustment 0.00
Net
Dividend 0.00
Transferred
To/From Reserved 0.00
Others 0.00
----------------------------
Unappropriated
Profit/(Loss) Brought Forward 257,218,426.00
----------------------------
Unappropriated
Profit/(Loss) Carried Forward 304,862,683.00
================
BALANCE SHEET
ACIDCHEM
INTERNATIONAL SDN BHD
30-June-2006
Consolidated
Accounts : No
UnQualified
Reports : Yes
RM
Fixed
Assets 158,884,319.00
Total
Investment 0.00
Amount
Owing By 0.00
Current
Assets 257,516,586.00
Intangible
Assets 0.00
Other
Assets 0.00
----------------------------
Total
Assets 416,400,905.00
================
Working
Capital 197,698,547.00
Issued
Capital 20,000,000.00
Paid
Up Capital 20,000,000.00
Share
Premium & Reserved 350,000.00
Unappropriated
Profit/(Loss) 304,862,683.00
----------------------------
Shareholder's
Fund/Equity 325,212,683.00
----------------------------
Current
Liabilities 59,818,039.00
Amount
Owing To 0.00
Long-term
and Deferred Liabilities 31,370,183.00
Share
Application Account 0.00
Minority
Interest 0.00
----------------------------
Total
Equity Liability 416,400,905.00
================
Contingent
Liabilities 0.00
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. |
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 |
|
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%)