|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
548445-V
|
|
COMPANY NAME
|
:
|
MAC WORLD INDUSTRIES SDN BHD
|
|
FORMER NAME
|
:
|
MAC WORLD INCORPORATION SDN BHD
|
|
INCORPORATION DATE
|
:
|
23/05/2001
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
SUITE 1207, KOMPLEKS SELANGOR, JALAN SULTAN, 12TH FLOOR, 50000 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
PHILEO DAMANSARA II, BLOCK B, UNIT 3A-11, NO. 15, JALAN 16/11 OFF
JALAN DAMANSARA, 46350 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-79547059
|
|
FAX.NO.
|
:
|
03-79540059
|
|
EMAIL
|
:
|
info@macworldinc.com
|
|
WEB SITE
|
:
|
www.macworldinc.com
|
|
CONTACT PERSON
|
:
|
ABRAHAM THOMAS ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51212 51239
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF EDIBLE OILS AND OTHER FOOD PRODUCTS
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
1,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
1,000,000.00 DIVIDED INTO
ORDINARY SHARES 1,000,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 22,311,696 [2007]
|
|
NET WORTH
|
:
|
MYR 400,262 [2007]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
7 [2008]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
AVERAGE
|
|
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) trading of edible oils
and other food products.
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
|
|
MR. ABRAHAM THOMAS +
|
A-18-06, VISTA KIARA CONDO, 7 JALAN 1/61A, BUKIT KIARA, 50480 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
591205-71-5593
|
700,000.00
|
|
MR. SOSHEEL KUMAR S/O TIRATHRAM SHARMA +
|
1, JALAN TEMPINIS 4, LUCKY GARDENS, BANGSAR BARU, 59100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
520518-10-5253
8089152
|
250,000.00
|
|
MS. SHAMSIAH BTE SAMLI
|
15, JALAN AU 2C/2, TAMAN DESA KERAMAT, 54200 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
690506-10-6226
A1265204
|
50,000.00
|
|
|
|
|
---------------
|
|
|
|
|
1,000,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. SOSHEEL KUMAR S/O TIRATHRAM SHARMA
|
|
Address
|
:
|
1, JALAN TEMPINIS 4, LUCKY GARDENS, BANGSAR BARU, 59100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
8089152
|
|
New IC No
|
:
|
520518-10-5253
|
|
Date of Birth
|
:
|
18/05/1952
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN INDIAN
|
|
Date of Appointment
|
:
|
23/05/2001
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. ABRAHAM THOMAS
|
|
Address
|
:
|
A-18-06, VISTA KIARA CONDO, 7 JALAN 1/61A, BUKIT KIARA, 50480 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
591205-71-5593
|
|
Date of Birth
|
:
|
05/12/1959
|
|
|
|
|
|
Nationality
|
:
|
N/A
|
|
Date of Appointment
|
:
|
23/05/2001
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
ABRAHAM THOMAS
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
S K KUMAR
|
|
|
Position
|
:
|
GENERAL MANAGER
|
|
|
|
|
|
|
Auditor
|
:
|
HAARYPANICKER
|
|
Auditor' Address
|
:
|
SUITE 1.00, WISMA YAKIN, JALAN MASJID INDIA, 6TH FLOOR, 50100 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. KHAW BEE LING
|
|
|
IC / PP No
|
:
|
7138324
|
|
|
New IC No
|
:
|
630722-10-6154
|
|
|
Address
|
:
|
39 JALAN HUJAN EMAS 4, OVERSEAS UNION GARDEN, 58200 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
Date of Appointment
|
:
|
31/05/2004
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. MADONNA D/O A M FRANCIS
|
|
|
IC / PP No
|
:
|
5483781
|
|
|
New IC No
|
:
|
580924-10-5026
|
|
|
Address
|
:
|
3, JALAN 2, TAMAN SRI BUKIT, JALAN BUKIT, 43000 KAJANG, SELANGOR,
MALAYSIA.
|
|
|
Date of Appointment
|
:
|
31/05/2004
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
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 SC
* A check has been conducted in our databank againt 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 databank.
PAYMENT RECORD
|
|
|
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Overseas
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
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
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Export Market
|
:
|
MIDDLE EAST, ASIA, EUROPE, INDIA
|
|
Credit Term
|
:
|
30 - 90 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
LETTER OF CREDIT (LC),TELEGRAPHIC TRANSFER (TT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
|
EDIBLE OILS AND OTHER FOOD PRODUCTS
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
AMBROSIA SDN BHD
|
|
CARGILL SPECIALTY OILS & FATS SDN BHD
|
|
FELDA VEGETABLE OIL PRODUCTS SDN BHD
|
|
MITSHUBISHI CORPORATION
|
|
SHARIKAT KERATONG SDN BHD
|
|
|
|
|
|
|
Ownership of
premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2008
|
2007
|
2006
|
2005
|
2004
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
COMPANY
|
7
|
4
|
6
|
2
|
2
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of edible oils and
other food products.
The SC sells a wide range of products which includes:
* Palm Oil & Palm Products (Edible)
* Industrial Grade Palm Oil
* Soft Oils (In consumer packs)
* Flavors & Colors
* Commodities
* Oleo Chemicals
* Coconut Oil
Besides that the SC also sells cattle & poultry feeds, confectionery
& bakery applications, industrial products, flavors & colors,
chemicals, canned foods and etc.
We were informed that the SC provides products based on the customers'
requirements.
The SC sells under various brand names such as 'GOLDSTAR' and 'MR. MAC' for
its range of vegetable cooking oil, vegetable ghee and tomato paste and
'GOLDEN FARM' for evaporated milk.
PROJECTS
No projects found in our databank
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
|
:
|
603 7954 7059
|
|
Current Telephone Number
|
:
|
03-79547059
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
3A-11 BLOCK 8 PHILEO DAMANSARA II, NO 15 JALAN 16/11 OFF JALAN
DAMANSARA 46350 PETALING JAYA SELANGOR
|
|
Current Address
|
:
|
PHILEO DAMANSARA II, BLOCK B, UNIT 3A-11, NO. 15, JALAN 16/11 OFF
JALAN DAMANSARA, 46350 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with Ms Sham from the SC's Admin Department. She
revealed some information pertaining to the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Erratic
|
[
|
2005 - 2007
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2005 - 2007
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
9.90%
|
]
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
19.00%
|
]
|
The fluctuating turnover reflects the fierce competition among the existing and
new market players. The management had succeeded in turning the SC into a
profit making company. The profit could be due to better control of its
operating costs and efficiency in utilising its resources. The unfavourable
return on shareholders' funds and net assets could indicate that the SC's
management was inefficient in utilising its assets to generate returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
4 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
41 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
18 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
|
[
|
1.00 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.08 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
|
:
|
Favourable
|
[
|
46.63 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
The interest cover showed that the SC was able to service the interest. The
favourable interest cover could indicate that the SC was making enough profit
to pay for the interest accrued. The SC had no gearing and hence it had
virtually no financial risk. The SC was financed by its shareholders' funds
and internally generated fund. During the economic downturn, the SC, having a
zero gearing, will be able to compete better than those which are highly
geared in the same industry.
Overall Accessment:
The SC's
turnover showed a volatile trend but its losses were lower when compared to
the previous corresponding period. This could suggest that the SC was more
efficient in its operating cost control and was more competitive. 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. With the favourable interest cover, the
SC could be able to service all the accrued interest without facing any
difficulties. The SC was a zero gearing company, it was solely dependant on
its shareholders to provide funds to finance its business. The SC has good
chance of getting loans, if the needs arises.
Overall financial condition of the SC : FAIR
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2004
|
2005
|
2006
|
2007*
|
2008**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
25.58
|
26.13
|
26.64
|
27.17
|
27.73
|
|
Gross Domestic Products ( % )
|
7.1
|
5.3
|
5.8
|
6.3
|
6.5
|
|
Domestic Demand ( % )
|
7.5
|
7.3
|
7.0
|
9.0
|
6.8
|
|
Private Expenditure ( % )
|
13.1
|
9.5
|
7.0
|
8.6
|
8.2
|
|
Consumption ( % )
|
10.5
|
9.2
|
7.1
|
9.0
|
7.9
|
|
Investment ( % )
|
25.8
|
8.5
|
7.0
|
7.1
|
9.5
|
|
Public Expenditure ( % )
|
<2.1>
|
3.6
|
6.8
|
10.1
|
3.2
|
|
Consumption ( % )
|
6.0
|
5.4
|
5.0
|
10.8
|
5.5
|
|
Investment ( % )
|
<8.7>
|
1.9
|
8.9
|
9.3
|
0.5
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
80,663
|
99,760
|
108,192
|
99,965
|
99,599
|
|
Government Finance ( MYR Million )
|
<19,419>
|
<18,684>
|
<19,109>
|
<19,948>
|
<20,933>
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<4.3>
|
<3.8>
|
<3.3>
|
<3.2>
|
<3.1>
|
|
Inflation ( % Change in Composite CPI)
|
1.4
|
3.1
|
3.9
|
4.0
|
6.0
|
|
Unemployment Rate
|
3.5
|
3.5
|
3.4
|
3.5
|
3.3
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
254
|
266
|
290
|
-
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
13.84
|
13.63
|
12.91
|
-
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
8.46
|
6.74
|
5.41
|
-
|
-
|
|
Average Base Lending Rate ( % )
|
5.99
|
6.00
|
6.61
|
-
|
-
|
|
Business Loans Disbursed( % )
|
10.5
|
8.7
|
<2.5>
|
-
|
-
|
|
Foreign Investment ( MYR Million )
|
13,143.9
|
17,882.9
|
20,228.0
|
-
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
38,580
|
37,474
|
38,293
|
-
|
-
|
|
Registration of New Companies ( % )
|
6.8
|
<2.9>
|
2.2
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
3,334
|
3,069
|
8,647
|
-
|
-
|
|
Liquidation of Companies ( % )
|
<15.8>
|
<7.9>
|
181.8
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
189,206
|
193,095
|
216,147
|
-
|
-
|
|
Registration of New Business ( % )
|
4.6
|
2.1
|
11.9
|
-
|
-
|
|
Business Dissolved ( No. )
|
51,301
|
73,355
|
52,879
|
-
|
-
|
|
Business Dissolved ( % )
|
7.0
|
43.0
|
<27.9>
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
380.6
|
400.8
|
374.1
|
-
|
-
|
|
Cellular Phone Subscribers ( Million )
|
14.6
|
18.5
|
19.5
|
21.3
|
-
|
|
Tourist Arrival ( Million Persons )
|
15.7
|
16.7
|
17.5
|
20.1
|
-
|
|
Hotel Occupancy Rate ( % )
|
60.8
|
63.6
|
64.8
|
-
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
19.3
|
13.9
|
15.4
|
-
|
-
|
|
Bad Cheque Offenders (No.)
|
70,465
|
57,316
|
36,555
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
16,251
|
15,868
|
13,596
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
31.6
|
<2.4>
|
<14.3>
|
-
|
-
|
|
INDUSTRIES ( % of Growth ):
|
2004
|
2005
|
2006
|
2007*
|
2008**
|
|
|
|
|
|
|
|
|
Agriculture
|
5.0
|
2.5
|
5.3
|
3.1
|
3.4
|
|
Palm Oil
|
3.9
|
7.1
|
5.8
|
<0.6>
|
-
|
|
Rubber
|
16.5
|
<2.9>
|
12.6
|
1.0
|
-
|
|
Forestry & Logging
|
4.3
|
2.0
|
<0.4>
|
2.8
|
-
|
|
Fishing
|
5.5
|
<0.4>
|
9.3
|
5.2
|
-
|
|
Other Agriculture
|
2.4
|
3.2
|
5.3
|
7.0
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
620.3
|
563.7
|
516.5
|
487.3
|
0
|
|
% of Industry Non-Performing Loans
|
1.38
|
1.19
|
1.06
|
1.08
|
0
|
|
|
|
|
|
|
|
|
Mining
|
3.9
|
0.8
|
<0.4>
|
3.3
|
6.0
|
|
Oil & Gas
|
4.5
|
1.6
|
4.6
|
-
|
-
|
|
Other Mining
|
<8.0>
|
<1.0>
|
5.1
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
62.6
|
68.8
|
55.4
|
42.2
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
9.8
|
5.1
|
7.3
|
3.1
|
1.8
|
|
Exported-oriented Industries
|
15.5
|
3.0
|
11.1
|
<1.9>
|
-
|
|
Electrical & Electronics
|
17.8
|
3.6
|
13.4
|
3.0
|
-
|
|
Rubber Products
|
14.8
|
2.4
|
0.4
|
8.0
|
-
|
|
Wood Products
|
12.7
|
0.9
|
0.7
|
3.3
|
-
|
|
Textiles & Apparel
|
<11.7>
|
<4.4>
|
12.6
|
<10.1>
|
-
|
|
Domestic-oriented Industries
|
9.7
|
6.9
|
5.0
|
5.3
|
-
|
|
Food, Beverages & Tobacco
|
3.8
|
7.7
|
4.8
|
5.6
|
-
|
|
Chemical & Chemical Products
|
14.6
|
6.9
|
1.7
|
9.2
|
-
|
|
Plastic Products
|
13.5
|
18.6
|
21.3
|
<3.6>
|
-
|
|
Iron & Steel
|
2.7
|
<6.7>
|
<6.9>
|
17.5
|
-
|
|
Fabricated Metal Products
|
29.2
|
<7.5>
|
20.0
|
26.2
|
-
|
|
Non-metallic Mineral
|
<4.8>
|
<6.0>
|
<1.9>
|
6.6
|
-
|
|
Transport Equipment
|
8.6
|
10.4
|
5.3
|
<19.0>
|
-
|
|
Paper & Paper Products
|
2.3
|
4.6
|
4.1
|
14.9
|
-
|
|
Crude Oil Refineries
|
<2.4>
|
8.2
|
12.1
|
8.6
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
7,765.4
|
6,035.6
|
6,181.3
|
6,366.2
|
-
|
|
% of Industry Non-Performing Loans
|
17.3
|
12.7
|
12.7
|
14.1
|
-
|
|
|
|
|
|
|
|
|
Construction
|
<1.5>
|
<1.6>
|
<0.5>
|
5.2
|
5.5
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,547.7
|
5,172.7
|
5,527.3
|
5,116.7
|
-
|
|
% of Industry Non-Performing Loans
|
12.4
|
10.9
|
11.4
|
11.3
|
-
|
|
|
|
|
|
|
|
|
Services
|
6.8
|
6.6
|
7.2
|
9.0
|
7.7
|
|
Electric, Gas & Water
|
8.1
|
5.5
|
5.2
|
4.6
|
5.0
|
|
Transport, Storage & Communication
|
8.5
|
6.3
|
5.2
|
7.6
|
7.8
|
|
Wholesale, Retail, Hotel & Restaurant
|
7.1
|
8.0
|
7.1
|
11.6
|
10.0
|
|
Finance, Insurance & Real Estate
|
6.3
|
7.0
|
7.7
|
10.7
|
9.2
|
|
Government Services
|
6.5
|
7.6
|
9.8
|
4.6
|
8.6
|
|
Other Services
|
4.9
|
5.0
|
4.7
|
5.0
|
5.9
|
|
Industry Non-Performing Loans ( MYR Million )
|
8,913.7
|
8,716.8
|
11,593.2
|
10,207.8
|
-
|
|
% of Industry Non-Performing Loans
|
19.9
|
18.4
|
23.9
|
22.6
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
51212 : Wholesale of palm oil
|
|
51239 : Wholesale of other foodstuffs e.g mee,kueh teow, wantan skin
and related products,cooking oil, tinned food, etc
|
|
|
|
|
INDUSTRY :
|
PALM OIL
|
|
|
|
|
|
|
In July 2008, Malaysia's Crude Palm Oil (CPO) production rose by 6.2% month-on-month
(mom) to 1.56million tonnes, while exports rose by 25.2% mom to 1.4million
tonnes. Despite the rise in the production, stock levels fell from
2.03million tonnes to 1.97million tonnes in July, as a result of the
increase in exports. The main mom rise in exports came from Bangladesh,
China, India, Jordan,
|
|
Europe, Singapore, Turkey and United Arab Emirates. However, this was
offset by a drop in exports to Iran, Pakistan and United States.
|
|
On a year-on-year (yoy) basis, CPO production for the year-to-date (YTD)
rose by 21.5%, due to a rise in matured hectarage, while exports rose
16.4%. The main rise in exports was to China, Bangladesh, India, Japan,
Pakistan, Turkey, United States, United Arab Emirates and Ukraine. On the
other hand, this was slightly offset by a decline to Europe, Vietnam, Iran
and Egypt.
|
|
Going forward, the production is expected to pick up speed in the coming
peak production months, while exports would also rise, heading towards the
festive seasons. Besides, the stock levels are expected to remain at close
to the 2million tonne mark in the medium term.
|
|
Nonetheless, the industry is facing inherent risks which include a
convincing reversal in crude oil price trend resulting in reversal of CPO
and other vegetable oil price trend, weather abnormalities resulting in
excess or shortage of vegetable oil. Aside by that, other risks such as
increased emphasis on implementation global biofuel mandates and trans-fat
policies, a quick global economic recovery, resulting in higher than
expected demand for vegetable oils have to be taken into consideration.
|
|
In support of the falling CPO prices, the Plantation Industry Minister has
recently discussed about the issue of using palm oil surpluses to produce
biodiesel. At present, the production of biodiesel is feasible at the
current levels, which would obviously attract renewed demand for vegetable
oils from biodiesel producers. Hence, it helps to support prices at above
RM2,000/tonne in the longer term. However, due to the volatility of both
crude oil and CPO prices, Malaysian government may not officially implement
a mandated biodiesel policy until the direction of the prices is clearer.
|
|
Despite the significant drop in all vegetable oil prices over the last few
weeks, which has seen soya oil
|
|
prices coming off from highs recorded in beg-July by 14.5% to current
level, rapeseed oil prices by 13.9% and CPO prices by a larger 20.4%, CPO continues
to trade at a relatively wide discount to soya oil and rapeseed oil. Hence,
this could potentially result in large declines in soya oil and rapeseed
oil prices against CPO in the near term.
|
|
CPO prices assumed to be RM3,300/tonne for 2008, RM2,900/tonne for 2009 and
RM2,700/tonne for 2010. Crude oil prices are expected to remain a volatile
trigger, while demand uncertainties could also persist for the rest of 2008
and 2009. Post-2009 and into 2010, CPO prices are expected to trade lower
due to the more fundamental reason of a rise in CPO supply coming from
Indonesia, additional plantation land starts coming into maturity.
|
|
However, CPO prices would be limited to RM2,500/tonne in the medium term
and RM2,000/tonne in the long term due to the downside risk. These downside
limits would be held up until and unless global biofuel policies are
completely scrapped, resulting in a reversal in the structural change in
the industry in the past five years. If CPO and other vegetable oil prices
continue on a downward trend, it would become more attractive to the
biofuel sector, which would shore up demand, keeping prices above the
RM2,000/tonne mark in the long term.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS
|
Established in 2001, the SC is principally engaged in the trading of edible
oils and other food products. Being a relatively small company with issued
and paid up capital of RM1million, the SC's shareholders structure consists
of 3 individual shareholders. Throughout its year of establishment, the SC
has slowly been building up contacts with its clients and competing in the
industry.
|
|
Currently, the SC mainly exports its products to Middle East, Europe and Asia
countries. With the full concentration on the overseas market, the SC is
not affected by the changes in the local economy but it is vulnerable to
the changes in the global economy. As a result, its business risk is
moderate. The management of the SC is overseen by Abraham Thomas and
assisted by 7 staff. Overall the management capability of the SC is
average.
|
|
Based on the latest financial year , the SC posted a fair financial
performance with pre-tax profit of RM74,429 and its turnover stood at RM22.31million.
Due to the low profitability, the SC has generated an unfavourable return
on shareholders' funds which indicated that the management was inefficient
in utilising its shareholders' funds to generate returns. However the SC
posted an adequate 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. Being a zero geared company,
the SC virtually has no financial risk as it is mainly dependent on its
internal funds to finance its business needs.
|
|
We noted that the SC sources all of its products locally. Although it is
not involved in import activities, it is still exposed to foreign exchange
risk as it is an export-oriented company.
|
|
Based on the historical data we concluded that the payment habit of the SC
is average. The SC should be able to meet its small and medium commitments.
|
|
The industry remains robust with the encouraging global demand for its
products. The competition within the industry is very competitive. Hence,
the SC should embrace new technologies and best practices to increase its
productivity, efficiency and adapt the ever-changing market in order to
sustain its market shares.
|
|
In view of the above we recommend credit be granted to the SC with
monitoring.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
MAC WORLD
INDUSTRIES SDN BHD
|
|
For The Year
Ended 31-December-2007
|
|
|
2007
|
2006
|
2005
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
TURNOVER
|
22,311,696
|
31,929,462
|
10,974,695
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
74,429
|
<151,115>
|
18,601
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
74,429
|
<151,115>
|
18,601
|
|
Taxation
|
<34,800>
|
864
|
<864>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
39,629
|
------------
<150,251>
|
------------
17,737
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
39,629
|
------------
<150,251>
|
------------
17,737
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
39,629
|
------------
<150,251>
|
------------
17,737
|
|
As previous reported
|
<139,367>
|
10,884
|
<6,853>
|
|
|
|
|
|
|
As restated
|
------------
<139,367>
|
------------
10,884
|
------------
<6,853>
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
<99,738>
|
<139,367>
|
10,884
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
<99,738>
==========
|
------------
<139,367>
==========
|
------------
10,884
==========
|
|
RETAINED BY: The Company
|
<99,738>
|
<139,367>
|
10,884
|
|
|
|
|
|
|
|
------------
<99,738>
==========
|
------------
<139,367>
==========
|
------------
10,884
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
|
|
|
|
|
Other interest expenses
|
1,631
|
1,904
|
-
|
|
|
------------
1,631
==========
|
------------
1,904
==========
|
------------
-
==========
|
BALANCE SHEET
|
MAC WORLD
INDUSTRIES SDN BHD
|
|
As At
31-December-2007
|
|
|
|
|
|
|
|
2007
|
2006
|
2005
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
126,182
|
156,667
|
196,667
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
126,182
|
------------
156,667
|
------------
196,667
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
Stocks
|
260,914
|
403,080
|
54,370
|
|
|
|
|
|
|
Trade debtors
|
2,513,564
|
859,442
|
1,732,386
|
|
Other debtors, deposits &
prepayments
|
786,689
|
63,060
|
66,800
|
|
Short term deposits
|
-
|
794,100
|
-
|
|
|
|
|
|
|
Amount due from director
|
21,368
|
21,368
|
-
|
|
Cash & bank balances
|
13,166
|
73,282
|
829,368
|
|
TOTAL CURRENT ASSETS
|
------------
3,595,701
|
------------
2,214,332
|
------------
2,682,924
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
1,129,345
|
998,409
|
1,385,799
|
|
Other creditors & accruals
|
1,641,403
|
477,684
|
233,989
|
|
|
|
|
|
|
Amounts owing to related
companies
|
-
|
-
|
238,550
|
|
|
|
|
|
|
Amounts owing to director
|
516,073
|
534,273
|
509,505
|
|
Provision for taxation
|
34,800
|
-
|
864
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
3,321,621
|
------------
2,010,366
|
------------
2,368,707
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
274,080
|
------------
203,966
|
------------
314,217
|
|
TOTAL NET ASSETS
|
------------
400,262
==========
|
------------
360,633
==========
|
------------
510,884
==========
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
500,000
|
500,000
|
500,000
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
500,000
|
------------
500,000
|
------------
500,000
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward
|
<99,738>
|
<139,367>
|
10,884
|
|
TOTAL RESERVES
|
------------
<99,738>
|
------------
<139,367>
|
------------
10,884
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
400,262
|
------------
360,633
|
------------
510,884
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
|
400,262
|
360,633
|
510,884
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
FINANCIAL RATIOS
|
MAC WORLD
INDUSTRIES SDN BHD
|
|
As At
31-December-2007
|
|
|
2007
|
2006
|
2005
|
|
|
MYR
|
MYR
|
MYR
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
13,166
|
867,382
|
829,368
|
|
Net Liquid Funds
|
13,166
|
867,382
|
829,368
|
|
Net Liquid Assets
|
13,166
|
<199,114>
|
259,847
|
|
Net Current Assets/(Liabilities)
|
274,080
|
203,966
|
314,217
|
|
Net Tangible Assets
|
400,262
|
360,633
|
510,884
|
|
Net Monetary Assets
|
13,166
|
<199,114>
|
259,847
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
0
|
0
|
0
|
|
Total Liabilities
|
3,321,621
|
2,010,366
|
2,368,707
|
|
Total Assets
|
3,721,883
|
2,370,999
|
2,879,591
|
|
Net Assets
|
400,262
|
360,633
|
510,884
|
|
Net Assets Backing
|
400,262
|
360,633
|
510,884
|
|
Shareholders" Funds
|
400,262
|
360,633
|
510,884
|
|
Total Share Capital
|
500,000
|
500,000
|
500,000
|
|
Total Reserves
|
<99,738>
|
<139,367>
|
10,884
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0
|
0.43
|
0.35
|
|
Liquid Ratio
|
1.00
|
0.90
|
1.11
|
|
Current Ratio
|
1.08
|
1.10
|
1.13
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
4
|
5
|
2
|
|
Debtors Ratio
|
41
|
10
|
58
|
|
Creditors Ratio
|
18
|
11
|
46
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
0
|
|
Liabilities Ratio
|
8.30
|
5.57
|
4.64
|
|
Times Interest Earned Ratio
|
46.63
|
<78.37>
|
0
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
0.33
|
<0.47>
|
0.17
|
|
Net Profit Margin
|
0.18
|
<0.47>
|
0.16
|
|
Return On Net Assets
|
19.00
|
<41.37>
|
3.64
|
|
Return On Capital Employed
|
19.00
|
<41.37>
|
3.64
|
|
Return On Shareholders'
Funds/Equity
|
9.90
|
<41.66>
|
3.47
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
