MIRA
INFORM REPORT
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Report Date : |
06.09.2007 |
IDENTIFICATION DETAILS
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Name : |
KEMPAS EDIBLE OIL
SDN BHD |
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Registered Office : |
Wisma Consplant, 2 Jalan Ss 16/4, 14th Floor, 47500 Subang Jaya, Selangor |
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
19/09/1974 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacture of Vegetable Oil Including Palm and Palm
Kernel Oil and speciality Fat. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Excellent |
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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 : 20389-P
COMPANY NAME : KEMPAS EDIBLE OIL SDN BHD
FORMER NAME : HUME EDIBLE OIL SDN BHD (14-05-1977)
INCORPORATION DATE : 19/09/1974
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : WISMA CONSPLANT, 2 JALAN SS 16/4, 14TH FLOOR, 47500
SUBANG
JAYA,
BUSINESS ADDRESS : PLO 79, PASIR GUDANG INDUSTRIAL ESTATE, 81700 PASIR
GUDANG,
TEL NO : 07 - 2511206
FAX NO : 07 - 2513121
CONTACT PERSON : JAGDISH SINGH (GENERAL MANAGER)
INDUSTRY CODE : 15149
PRINCIPAL ACTIVITY : MANUFACTURE OF VEGETABLE OIL INCLUDING PALM AND
PALM KERNEL OIL AND SPECIALITY FAT
AUTHORISED CAPITAL : MYR10,000,000.00 DIVIDED INTO ORDINARY SHARE
10,000,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR4,000,000.00 DIVIDED INTO ORDINARY SHARE
4,000,000 CASH OF MYR1.00 EACH.
SALES : MYR360,307,000 [2006]
NET WORTH : MYR465,493,000 [2006]
M1000 OVERALL RANKING : 559 [2005]
M1000 INDUSTRY RANKING : 48 [2005]
STAFF STRENGTH : 1,000 [2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : STRONG
PAYMENT : AVERAGE
MANAGEMENT CAPABILITY : GOOD
COMMERCIAL RISK : LOW
CURRENCY EXPOSURE : HIGH
GENERAL REPUTATION : GOOD
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) manufacture of vegetable oil including palm and palm kernel oil and speciality fat.
The SC is not listed on
The SC is one of the Top Corporate Performers in the
According to the
YEAR 2005 2004
OVERALL RANKING 559 564
INDUSTRY RANKING 48 41
The ultimate holding company of the SC is SIME DARBY BERHAD,
a company in incorporated in
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
SIME DARBY NOMINEES SDN WISMA SIME DARBY, JALAN RAJA LAUT, 21ST 19350 4,000,000
BHD FLOOR,
50350
--------------------
4,000,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. AZHAR BIN ABDUL HAMID
Address : 50, JALAN TITIAN U8/41, SECTION U8, BUKIT JELUTONG, 40150
SHAH
ALAM,
IC / PP No. : 6102960
New IC No : 610427-71-5477
Date of Birth : 27/04/1961
Nationality : MALAYSIAN MALAY
Date of Appointment : 10/11/2006
DIRECTOR 2
Name of Subject : MS. HO EE LAY
Address : 78, JALAN SL 4/3, BANDAR SUNGAI LONG, 43000 KAJANG,
IC / PP No. : 6916613
New IC No : 621217-07-5516
Date of Birth : 17/12/1962
Nationality : MALAYSIAN CHINESE
Date of Appointment : 21/02/2006
DIRECTOR 3
Name of Subject : YAP CHUAN YU
Address : 24,
IC / PP No. : S0043101Z
Nationality : SINGAPOREAN
Date of Appointment : 25/05/2000
MANAGEMENT
1) Name of Subject : JAGDISH SINGH
Position : GENERAL MANAGER
2) Name of Subject : T THARUMARAJAH
Position : GENERAL MANAGER
3) Name of Subject : TAN KIAM HOCK
Position : ACCOUNTANT
4) Name of Subject : IAN CHAN
Position : ASSISTANT MARKETING MANAGER
5) Name of Subject : GEOFFRY KUA
Position : MARKETING MANAGER
6) Name of Subject : THAM LAI FONG
Position : MARKETING MANAGER
7) Name of Subject : MOHD ASHARI
Position : PRODUCTION MANAGER
AUDITOR
Auditor : PRICEWATERHOUSECOOPERS
Auditors' Address : WISMA SIME DARBY, JALAN RAJA LAUT, 11TH FLOOR KUALA
LUMPUR,
WILAYAH
COMPANY SECRETARY
1) Company Secretary : MS. AZRIN NASHIHA BTE ABDUL AZIZ
IC / PP No. : A1987809
New IC No. : 720603-08-5564
Address : 15, JALAN DM 3B, DESA MOCCIS, 47000 SUNGAI BULOH,
Date of Appointment : 24/02/2004
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
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 : 70%
Overseas : YES Percentage : 30%
Import Countries :
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 [ ] Average [ X ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES Percentage : 5%
Domestic Markets :
Overseas : YES Percentage : 95%
Export Market :
Credit Term : 30 - 60 DAYS.
Payment Mode : CHEQUES , TELEGRAPHIC TRANSFER (TT) , LETTER OF CREDIT (LC).
Type of Customer : DEALERS , FOOD MANUFACTURERS , DISTRIBUTOR .
CUSTOMER (S) : 1) ABLE PERFECT SDN BHD
OPERATIONS
Products Manufactured : FATS (SPECIALITY), PALM FATTY ACID DISTILLATE, RBD PALM KERNEL
OIL, RBD PALM KERNEL OLEIN, RBD PALM KERNEL STEARIN, RBD PALM
OILS, RBD PALM OLIEN, RBD PALM STEARIN
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
Member(s) / Affiliate(s) : FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)
Ownership of premises : OWNED
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 1,000 1,150 1,191
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 : 07-2511206
Match : N/A
Address Provided By Client : PLO 79, PASIR GUDANG INDUSTRIAL ESTATE,
81700 PASIR GUDANG
Current Address : PLO 79, PASIR GUDANG INDUSTRIAL ESTATE,
81700
PASIR GUDANG,
Match : YES
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with one of the staff from the SC's Admin 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 strong. The SC has striven to achieve a favourable turnover and profitability. Return on shareholders' funds of the SC was high indicating that the SC was efficient in utilising its shareholders' funds to generate favourable returns. Besides that, the SC was 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 liabilities ratio has minimised the SC's financial risk.
Overall financial condition of the SC: STRONG
COMMENTS
Incorporated in 1974, the SC is principally engaged in the manufacturing of vegetable oil including palm kernel oil and specialty fat. 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. Having a paid up capital of RM4 million, the SC is able to expand its business more comfortably. Overall, the SC's business position in the market is considered stable.
We were informed that the SC is focusing on its specialties
fats, bulk refined oils for food industries. We noted that the SC offers a wide
range of products including cocoa butter substitutes, cooking Oils,
hydrogenated Fats and etc. About 95% of its products are exported to overseas
countries such as
During the financial year 2006, the SC has striven to achieve a high turnover and profitability of RM360.31 million and RM359.27 million respectively. The SC has generated a favourable return on shareholders' funds which indicated the management was efficient in utilising its shareholders' funds to generate returns. Besides that, the SC possesses a good liquidity position and we believe the SC will be able to meet all its short term obligations. Moreover, the SC is a lowly geared company which has minimised its financial risk. Overall the financial condition of the SC can be regarded as strong.
Our investigation revealed that 70% of the SC's products are sourced locally whilst the remaining products are obtained from overseas market. As an export-oriented company and being involved in import activities, the SC is subjected to foreign currency exposure risk.
Based on our databank, the SC is clear of any litigation and its payment record is average. The SC's good reputation in the market has reduced the risk of shortage of raw materials when the needs arise.
The industry remains robust with continuing strong global demand for its products. The steady growth in the economy will further enhance the industry activities and we believe there will be more business activities available for the SC. With the SC's strong background, it should have a competitive edge against other players in the same field.
In view of the above, we recommend credit be granted to the SC with favourable terms.
THE FINANCIAL STATEMENTS WERE
PREPARED IN ACCORDANCE WITH MALAYSIA
PROFIT AND LOSS ACCOUNT
KEMPAS
EDIBLE OIL SDN BHD
30-June-2006
Consolidated Accounts : No
UnQualified
Reports : Yes
RM
Turnover 360,307,000.00
Operating
Revenue 0.00
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Profit
/ (Loss) Before Tax 359,269,000.00
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Profit
/ (Loss) After Tax 351,242,000.00
Extraordinary
Item 0.00
Minority
Interest 0.00
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Profit/(Loss)
Attributable to Shareholders 351,242,000.00
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Prior
Period Adjustment 0.00
Net
Dividend 39,600,000.00
Transferred
To/From Reserved 0.00
Others 0.00
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Unappropriated
Profit/(Loss) Brought Forward 149,851,000.00
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Unappropriated
Profit/(Loss) Carried Forward 461,493,000.00
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BALANCE SHEET
KEMPAS
EDIBLE OIL SDN BHD
30-June-2006
Consolidated Accounts : No
UnQualified
Reports : Yes
RM
Fixed
Assets 33,175,000.00
Total
Investment 0.00
Amount
Owing By 0.00
Current
Assets 442,293,000.00
Intangible
Assets 0.00
Other
Assets 26,000.00
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Total
Assets 475,494,000.00
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Working
Capital 432,861,000.00
Issued Capital 4,000,000.00
Paid
Up Capital 4,000,000.00
Share
Premium & Reserved 0.00
Unappropriated
Profit/(Loss) 461,493,000.00
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Shareholder's
Fund/Equity 465,493,000.00
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Current
Liabilities 9,432,000.00
Amount
Owing To 0.00
Long-term
and Deferred Liabilities 569,000.00
Share
Application Account 0.00
Minority
Interest 0.00
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Total
Equity Liability 475,494,000.00
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Contingent
Liabilities 0.00
THE FINANCIAL STATEMENTS WERE
PREPARED IN ACCORDANCE WITH MALAYSIA
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 30-June-2005
KEMPAS
EDIBLE OIL SDN BHD
2005 2004 2003
MYR MYR MYR
TURNOVER 474,004,000 374,053,000 350,480,000
=========== =========== ===========
PROFIT/(LOSS) FROM OPERATIONS 51,926,000 35,273,000 45,683,000
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
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PROFIT/(LOSS)
BEFORE TAXATION 51,926,000 35,273,000 45,683,000
Taxation <12,344,000> <5,230,000> <11,186,000>
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PROFIT/(LOSS)
AFTER TAXATION 39,582,000 30,043,000 34,497,000
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 39,582,000 30,043,000 34,497,000
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PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 39,582,000 30,043,000 34,497,000
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported 140,509,000 123,426,000 101,889,000
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As restated 140,509,000 123,426,000 101,889,000
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PROFIT
AVAILABLE FOR APPROPRIATIONS 180,091,000 153,469,000 136,386,000
DIVIDENDS -
Ordinary (paid & proposed) <30,240,000> <12,960,000> <12,960,000>
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RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 149,851,000 140,509,000 123,426,000
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RETAINED BY:
The Company 149,851,000 140,509,000 123,426,000
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149,851,000 140,509,000 123,426,000
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INTEREST
EXPENSE (as per notes to P&L)
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BALANCE SHEET
As
At 30-June-2005
KEMPAS
EDIBLE OIL SDN BHD
2005 2004 2003
MYR MYR MYR
ASSETS
EMPLOYED:
FIXED ASSETS 217,127,000 222,785,000 206,257,000
LONG
TERM INVESTMENTS/OTHER ASSETS
Subsidiary
companies 26,000 26,000 26,000
Deferred
assets 960,000 1,236,000 -
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TOTAL LONG
TERM INVESTMENTS/OTHER ASSETS 986,000 1,262,000 26,000
INTANGIBLE
ASSETS
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TOTAL LONG
TERM ASSETS 218,113,000 224,047,000 206,283,000
CURRENT
ASSETS
Stocks 32,060,000 21,695,000 18,627,000
Trade debtors 25,776,000 28,302,000 25,601,000
Other
debtors, deposits & prepayments 1,352,000 1,281,000 -
Short term
deposits 19,219,000 31,861,000 -
Items in
transit between head office & branches
Amount due
from holding company 6,820,000 - -
Amount due
from related companies 763,000 332,000 -
Cash &
bank balances 820,000 1,001,000 38,344,000
Tax
recoverable - 240,000 240,000
------------------- ------------------- -------------------
TOTAL CURRENT
ASSETS 86,810,000 84,712,000 82,812,000
CURRENT
LIABILITIES
Trade
creditors 15,598,000 9,068,000 155,803,000
Other
creditors & accruals 9,828,000 10,689,000 -
Amounts owing
to holding company 122,294,000 140,754,000 -
Amounts owing
to related companies 2,080,000 2,910,000 -
Provision for
taxation 1,249,000 240,000 4,527,000
Amounts due
to other related companies 23,000 589,000 -
------------------- ------------------- -------------------
TOTAL CURRENT
LIABILITIES 151,072,000 164,250,000 160,330,000
------------------- ------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) <64,262,000> <79,538,000> <77,518,000>
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TOTAL NET
ASSETS 153,851,000 144,509,000 128,765,000
=========== =========== ===========
FINANCED
BY:
SHARE CAPITAL
Ordinary
share capital 4,000,000 4,000,000 4,000,000
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TOTAL SHARE
CAPITAL 4,000,000 4,000,000 4,000,000
RESERVES
Retained
profit/(Accumulated loss) carried
forward 149,851,000 140,509,000 123,426,000
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TOTAL
RESERVES 149,851,000 140,509,000 123,426,000
------------------- ------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 153,851,000 144,509,000 127,426,000
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Deferred
taxation - - 1,339,000
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TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS - - 1,339,000
------------------- ------------------- -------------------
153,851,000 144,509,000 128,765,000
=========== =========== ===========
FINANCIAL RATIOS
As
At 30-June-2005
KEMPAS
EDIBLE OIL SDN BHD
2005 2004 2003
MYR MYR MYR
TYPES OF
FUNDS
Cash 20,039,000 32,862,000 38,344,000
Net Liquid
Funds 20,039,000 32,862,000 38,344,000
Net Liquid
Assets <96,322,000> <101,233,000> <96,145,000>
Net Current
Assets/(Liabilities) <64,262,000> <79,538,000> <77,518,000>
Net Tangible
Assets 153,851,000 144,509,000 128,765,000
Net Monetary
Assets <96,322,000> <101,233,000> <97,484,000>
BALANCE
SHEET ITEMS
Total
Borrowings 0 0 0
Total
Liabilities 151,072,000 164,250,000 161,669,000
Total Assets 304,923,000 308,759,000 289,095,000
Net Assets 153,851,000 144,509,000 128,765,000
Net Assets
Backing 153,851,000 144,509,000 127,426,000
Shareholders''
Funds 153,851,000 144,509,000 127,426,000
Total Share
Capital 4,000,000 4,000,000 4,000,000
Total
Reserves 149,851,000 140,509,000 123,426,000
LIQUIDITY
(Times)
Cash Ratio 0.13 0.20 0.24
Liquid Ratio 0.36 0.38 0.40
Current Ratio 0.57 0.52 0.52
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 25 21 19
Debtors Ratio 20 28 27
Creditors
Ratio 12 9 162
SOLVENCY
RATIOS (Times)
Gearing Ratio 0 0 0
Liabilities
Ratio 0.98 1.14 1.27
Times
Interest Earned Ratio 0 0 0
PERFORMANCE
RATIO (%)
Operating
Profit Margin 10.95 9.43 13.03
Net Profit
Margin 8.35 8.03 9.84
Return On Net
Assets 33.75 24.41 35.48
Return On
Capital Employed 33.75 24.41 35.48
Return On
Shareholders'' Funds/Equity 25.73 20.79 27.07
Dividend Pay
Out Ratio (Times) 0.76 0.43 0.38
NOTES
TO ACCOUNTS
Contingent
Liabilities 0 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 |
|
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 |
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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%)