MIRA INFORM REPORT

 

 

Report Date :

18.02.2011

 

IDENTIFICATION DETAILS

 

Name :

PETRONAS BASE OIL (M) SDN BHD

 

 

Registered Office :

Tower 1, Petronas Twin Towers, Kuala Lumpur City Centre, 50088 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

01.09.2006

 

 

Com. Reg. No.:

745973-D

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Formulation and Distribution of Lubricants, Bulk Breaking Storage for Domestic and International.

 

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

 

Maximum Credit Limit :

USD 440,839

Status :

Satisfactory

Payment Behaviour :

Regular

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXECUTIVE SUMMARY

 

 

 

REGISTRATION NO.

:

745973-D

COMPANY NAME

:

PETRONAS BASE OIL (M) SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

01/09/2006

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

PETRONAS TWIN TOWERS, TOWER 2, LEVEL 73, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-20515000 / 20265000

FAX.NO.

:

03-20265050 / 5055

WEB SITE

:

www.petronas.com.my

CONTACT PERSON

:

JOSEPH BROADDUS ( CEO )

INDUSTRY CODE

:

51411

PRINCIPAL ACTIVITY

:

FORMULATION AND DISTRIBUTION OF LUBRICANTS, BULK BREAKING STORAGE FOR DOMESTIC AND INTERNATIONAL

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARE 900.00 OF MYR 1,000.00 EACH.
PREFERENCE SHARE 1,000.00 OF MYR 100.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARES 900 CASH OF MYR 1,000.00 EACH.
PREFERENCE SHARES 1,000 CASH OF MYR 100.00 EACH.

SALES

:

MYR 426,401,000 [2010]

NET WORTH

:

MYR 7,495,000 [2010]

STAFF STRENGTH

:

25 [2011]

BANKER (S)

 

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

PROPOSED CREDIT LIMIT

:

USD440,839

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) formulation and distribution of lubricants, bulk breaking storage for domestic and international.

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).



The immediate holding company of the SC is PETROLIAM NASIONAL BERHAD, a company incorporated in MALAYSIA.


The major shareholder(s) of the SC are shown as follows :

Name

Address

IC/PP/Loc No

Shareholding

PETROLIAM NASIONAL BHD
[ORD 900 & PREF 1,000]

TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

20076

1,900.00

 

 

 

---------------

 

 

 

1,900.00

 

 

 

============

+ Also Director

 

DIRECTORS

 

 

DIRECTOR 1

 

Name Of Subject

:

JOSEPH BROADDUS ROUSMANIERE

Address

:

MAPLE SUITE APARTMENT 2209, 1, CHANGKAT RAJA CHULAN, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

P135394140

Date of Birth

:

20/08/1950

Nationality

:

AMERICAN

 

DIRECTOR 2

 

Name Of Subject

:

MR. NUR ISKANDAR BIN A SAMAD

Address

:

24 LORONG WANGSA PERKASA 5, WANGSA MELAWATI, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5183137

New IC No

:

570619-04-5339

Date of Birth

:

19/06/1957

Nationality

:

MALAYSIAN MALAY

 

DIRECTOR 3

 

Name Of Subject

:

MS. FREIDA BTE AMAT

Address

:

20, JALAN 22/57, 46300 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A1265360

New IC No

:

690506-10-6162

Date of Birth

:

06/05/1969

Nationality

:

MALAYSIAN MALAY

 

DIRECTOR 4

 

Name Of Subject

:

MR. MOHD SHOBRI BIN A BAKAR

Address

:

11A, JALAN SS 19/1F, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

6072538

New IC No

:

601208-02-5463

Date of Birth

:

08/12/1960

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

02/08/2010

 

 

MANAGEMENT

 

 

1)

Name of Subject

:

JOSEPH BROADDUS

 

Position

:

CEO

 

 

AUDITOR

 

 

Auditor

:

KPMG

Auditor' Address

:

KPMG TOWER 8, FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

COMPANY SECRETARIES

 

 

1)

Company Secretary

:

MS. HALIMATUN SAADIAH BTE ABD HALIM

 

New IC No

:

741113-06-5280

 

Address

:

6, JALAN 5, TAMAN HARMONIS, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

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.

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SC

 


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

 

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

WORLDWIDE

Credit Term

:

N/A

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Goods Traded

:

LUBRICANTS

 

Total Number of Employees:

YEAR

2011

 

GROUP

N/A

 

COMPANY

25

 

 

Branch

:

NO

Other Information:


The SC is principally engaged in the (as a / as an) formulation and distribution of lubricants, bulk breaking storage for domestic and international.

The SC is a wholly-owned subsidiary of PETRONAS, the national oil company of Malaysia.

The SC is the marketing arm for the PETRONAS Group.

PETRONAS' superior quality group III base oil is marketed under the ETRO brand name. The combination of high viscosity index (>130) and low noack (<15 wt%) makes ETRO one of the highest quality group III base oils in the world, ideal for use in top-tier automotive and industrial lubricant formulation.

ETRO base oils will be marketed through the SC which is supported by a team of capable technical services engineers and sale & supply chain professionals.

Sales worldwide are handled directly by a team of PETRONAS' sales professionals through end-to end supply chain network and supported by a team of industry-leading technical experts. Distribution channels are set up to cater for global distribution, with terminals in Asia Pacific, Europe and Americas.

 

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

:

N/A

Current Telephone Number

:

03-20515000 / 20265000

Match

:

N/A

 

 

 

Address Provided by Client

:

TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN.

Current Address

:

PETRONAS TWIN TOWERS, TOWER 2, LEVEL 73, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

We contacted one of the staff from the SC and she provided some information on the SC.

The SC had shifted from the address provided.

 

FINANCIAL COMMENTS

 

Profitability:

Turnover

:

Increased

[

253.82%

]

Profit/(Loss) Before Tax

:

Decreased

[

<121.87%>

]

Return on Shareholder Funds

:

Favourable

[

85.66%

]

Return on Net Assets

:

Unfavourable

[

5.42%

]


The increase in turnover could be due to the SC adopting an aggressive marketing strategy. 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. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

Working Capital Control:

Stock Ratio

:

Nil

[

0 Days

]

Debtors Ratio

:

Favourable

[

21 Days

]

Creditors Ratio

:

Favourable

[

0 Days

]


As the SC is a service oriented company, the SC does not need to keep 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

[

1.46 Times

]

Current Ratio

:

Unfavourable

[

1.46 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

[

758.46 Times

]

Gearing Ratio

:

Unfavourable

[

11.86 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 was highly geared, thus it had a high financial risk. The SC was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the SC will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the SC has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the SC's turnover and the interest it needs to pay.

Overall Assessment:

The higher turnover had helped to reduce the SC's losses. 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's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the SC : STABLE

 

ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2007

2008

2009

2010*

2011**

 

 

 

 

 

 

Population ( Million)

27.17

27.73

28.31

28.88

29.13

Gross Domestic Products ( % )

6.3

4.6

<0.5>

6.9

5.8

Domestic Demand ( % )

9.0

6.9

2.9

4.6

4.8

Private Expenditure ( % )

8.6

7.1

<2.7>

8.1

7.0

Consumption ( % )

9.0

8.4

0.7

6.7

6.3

Investment ( % )

7.1

1.5

<17.2>

15.2

10.2

Public Expenditure ( % )

10.1

6.5

5.2

3.8

2.8

Consumption ( % )

10.8

11.6

3.1

0.2

4.6

Investment ( % )

9.3

0.7

8.0

8.3

0.6

 

 

 

 

 

 

Balance of Trade ( MYR Million )

100,340

129,563

89,650

118,356

116,058

Government Finance ( MYR Million )

<19,948>

<34,462>

<28,450>

<40,482>

-

Government Finance to GDP / Fiscal Deficit ( % )

<3.2>

<4.8>

<4.8>

<5.6>

<5.4>

Inflation ( % Change in Composite CPI)

2.0

<3.3>

<5.2>

5.1

-

Unemployment Rate

3.2

3.7

4.5

3.9

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

336

388

331

394

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.04

1.91

2.87

2.20

-

Average 3 Months of Non-performing Loans ( % )

13.30

13.24

11.08

15.30

-

Average Base Lending Rate ( % )

6.72

6.72

5.53

5.70

-

Business Loans Disbursed( % )

9.1

11.6

10.5

14.7

-

Foreign Investment ( MYR Million )

33,426.0

23,261.4

22,156.8

22,517.9

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

43,337

41,599

41,578

-

-

Registration of New Companies ( % )

13.2

<4.0>

<0.1>

-

-

Liquidation of Companies ( No. )

22,629

27,992

39,075

-

-

Liquidation of Companies ( % )

161.5

23.7

39.6

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

227,410

269,866

312,581

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

20,431

18,885

19,345

-

-

Business Dissolved ( % )

<61.4>

<7.6>

2.4

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

442.9

497.5

319.4

369.7

-

Cellular Phone Subscribers ( Million )

23.3

25.1

30.1

32.8

-

Tourist Arrival ( Million Persons )

20.9

21.5

23.6

24.0

25.0

Hotel Occupancy Rate ( % )

70

68

58

63

-

 

 

 

 

 

 

Credit Cards Spending ( % )

20.1

17.1

12.8

15.1

-

Bad Cheque Offenders (No.)

30,004

34,834

-

-

-

Individual Bankruptcy ( No.)

13,238

13,907

-

-

-

Individual Bankruptcy ( % )

<2.6>

5.1

-

-

-

 

INDUSTRIES ( % of Growth ):

2007

2008

2009

2010*

2011**

 

 

 

 

 

 

Agriculture

3.1

3.6

0.4

3.4

4.5

Palm Oil

<0.6>

7.0

<1.1>

1.3

-

Rubber

1.0

<1.1>

<19.8>

9.9

-

Forestry & Logging

2.8

<1.5>

<5.9>

<1.3>

-

Fishing

5.2

4.0

5.5

4.1

-

Other Agriculture

7.0

5.9

9.0

6.6

-

Industry Non-Performing Loans ( MYR Million )

487.3

393.0

413.7

508.4

-

% of Industry Non-Performing Loans

1.1

<2.0>

1.3

2.1

-

 

 

 

 

 

 

Mining

3.3

<0.8>

<3.8>

1.0

2.9

Oil & Gas

2.2

12.7

2.1

4.9

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

42.2

36.0

44.2

49.7

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

3.1

1.3

<9.4>

10.8

6.7

Exported-oriented Industries

<1.9>

2.7

<19.0>

12.1

-

Electrical & Electronics

3.0

2.4

<30.3>

27.4

-

Rubber Products

8.0

4.2

<10.1>

25.3

-

Wood Products

3.3

<6.0>

<24.1>

19.7

-

Textiles & Apparel

<10.1>

1.9

<19.5>

<1.3>

-

Domestic-oriented Industries

5.3

9.9

<9.8>

16.3

-

Food, Beverages & Tobacco

5.6

9.5

0.2

3.0

-

Chemical & Chemical Products

9.2

1.4

<7.7>

20.4

-

Plastic Products

<3.6>

6.5

<9.1>

2.4

-

Iron & Steel

17.5

16.8

<32.7>

30.0

-

Fabricated Metal Products

26.2

14.7

<2.5>

14.9

-

Non-metallic Mineral

6.6

8.3

<15.5>

20.2

-

Transport Equipment

<19.0>

27.1

<13.5>

36.5

-

Paper & Paper Products

14.9

8.6

<5.0>

20.5

-

Crude Oil Refineries

8.6

7.8

0.2

<11.4>

-

Industry Non-Performing Loans ( MYR Million )

6,366.2

5,729.4

6,007.3

6,217.5

-

% of Industry Non-Performing Loans

14.1

16.8

18.3

23.8

-

 

 

 

 

 

 

Construction

4.6

2.1

5.8

4.9

4.4

Industry Non-Performing Loans ( MYR Million )

5,116.7

4,149.8

3,241.8

4,038.5

-

% of Industry Non-Performing Loans

11.3

12.2

9.9

10.7

-

 

 

 

 

 

 

Services

9.7

7.3

2.6

6.5

5.3

Electric, Gas & Water

4.6

5.0

0.4

8.5

5.6

Transport, Storage & Communication

7.60

7.80

1.60

7.15

7.55

Wholesale, Retail, Hotel & Restaurant

11.6

10.0

2.8

4.7

5.2

Finance, Insurance & Real Estate

10.7

9.2

3.8

6.0

5.2

Government Services

4.6

8.6

2.0

6.7

1.9

Other Services

5.0

5.9

4.4

4.2

5.4

Industry Non-Performing Loans ( MYR Million )

10,207.8

8,281.4

6,631.3

7,384.6

-

% of Industry Non-Performing Loans

22.6

24.3

20.2

25.7

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)



INDUSTRY COMMENTS

 

MSIC CODE

51411 : Wholesale of petrol, diesel, lubricants, etc.

INDUSTRY :

TRADING


Retail chain outlook in year 2010 is positive.


Figure shown that in year 2009, retail sales grew by a mere 0.8 per cent while in 2008, the growth was at 5 per cent. In 2007, retail sales grew by 12.8 per cent. Last year was challenging, businesses that were hit were those in the fashion and fashion accessories as well as those that sold luxury or higher priced items.


However, most of the business have started to pick up this year. The 5.5 per cent growth is expected to translate into RM74.9 billion in consumer spending on items ranging from clothing to furniture and groceries to jewelery. The figures do not take into account big ticket items like houses and cars.


Sales in the second half of the year will see an impact from the reduction of subsidies and rising interest rates. The government's move of reducing subsidies this year will have a major impact on consumers this year. Prices may not have risen so far, but they are expected to do so towards the end of the year.


Another factor affecting retail trend is the cost of borrowing. Rising interest rates will have some impact on the purchasing power of Malaysian consumers.


It costs more now to buy big tickets items or consumer goods on credit. At the same time, higher car and housing installments will reduce the spending power of consumers on retail goods. Moreover, domestic consumption may also be affected as the external demand remains week.


In the first quarter of 2010, retail growth was at 7.9 per cent, up from a 3.3 per cent contraction. With the exception of the second quarter of 2010, the three other quarters are expected to grow over last year's corresponding quarters. Sales in the third quarter are set to improve by 6 per cent due to the Mega Sale Carnival and Hari Raya purchases. Retail sales in the October to December 2010 period are forecast to grow by 3.5 per cent supported by the traditional year-end school holidays and Christmas shopping. Sales in the third quarter are set to improve by 6 per cent due to the Mega Sale Carnival and Hari Raya purchases.

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 



COMMENTS & RECOMMENDATION

 

 


Incorporated in 2006, the SC is a private limited company, focusing on formulation and distribution of lubricants, bulk breaking storage for domestic and international. Throughout its years of establishment, the SC has slowly been building up contacts with its clients and competing in the industry. A paid up capital of RM1 million allows the SC to expand its business more comfortably. Strongly supported by its well-established holding company, the SC is expected to enjoy timely financial and technical support should the needs arise.


Apart from supplying its products to the local market, the SC also exports to overseas countries. Its ability to penetrate into the global market has benefited the SC in terms of higher profitability and well diversified its business risk. Hence, better growth prospect can be expected. Currently, the SC has a total work force of 25 employees in its operation. Overall, the management capability of the SC is average.


During the financial year under review, the SC's turnover continued on an upward momentum, reaching RM426.4 million in 2010 compared to RM120.51 million previously. Correspondingly, its pre-tax profit rose to RM3.45 million. This was achieved on the back of stronger performance of higher turnover. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. However, the high gearing ratio clearly implied that the SC was supported by more debt than equity. Thus, the SC is exposed to high financial risk. Nevertheless, as the SC maintain a positive net worth standing at RM7.49 million, we believe the SC is able to enhance its business in the near term.


The SC sources its raw materials locally and internationally. Being involved in import and export activities, the SC is subjected to the foreign currency exchange risk.


Based on the historical financial data, we concluded that the SC's payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.


The potential growth for the industry is marginal and it is quite competitive. It very much depends on the SC's capability in sustaining its performance in the market. Backed by strong holding company, the SC should have acquired competitive edge from its competitors.


Based on the above condition, we recommend a fairly large amount of credit be granted to the SC promptly.

 

PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.

PETRONAS BASE OIL (M) SDN BHD

For The Year Ended 31-March-2010



 

 

 

 

 

2010

2009

2008

 

MYR

MYR

MYR

TURNOVER

426,401,000

120,515,000

0

 

==========

==========

==========

PROFIT/(LOSS) FROM OPERATIONS

3,454,000

<15,795,000>

<9,515,000>

 

------------

------------

------------

PROFIT/(LOSS) BEFORE TAXATION

3,454,000

<15,795,000>

<9,515,000>

Taxation

2,966,000

510,000

-


PROFIT/(LOSS) AFTER TAXATION

------------
6,420,000

------------
<15,285,000>

------------
<9,515,000>


PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

------------
6,420,000

------------
<15,285,000>

------------
<9,515,000>

 

 

 

 


PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD

------------
6,420,000

------------
<15,285,000>

------------
<9,515,000>

As previous reported

<31,287,000>

<16,002,000>

<6,487,000>

 

 

 

 


As restated

------------
<31,287,000>

------------
<16,002,000>

------------
<6,487,000>

 

------------

------------

------------

PROFIT AVAILABLE FOR APPROPRIATIONS

<24,867,000>

<31,287,000>

<16,002,000>


RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD

------------
<24,867,000>
==========

------------
<31,287,000>
==========

------------
<16,002,000>
==========

RETAINED BY: The Company

<24,867,000>

<31,287,000>

<16,002,000>

 

------------
<24,867,000>
==========

------------
<31,287,000>
==========

------------
<16,002,000>
==========

INTEREST EXPENSE (as per notes to PL)

 

 

 

Other interest expenses

4,560

-

-

Subordinated loan interest

-

2,040,000

-

 

------------
4,560
==========

------------
2,040,000
==========

------------
-
==========

 

 

 

BALANCE SHEET

 

 

PETRONAS BASE OIL (M) SDN BHD

As At 31-March-2010



 

 

 

 

 

2010

2009

2008

 

MYR

MYR

MYR

ASSET EMPLOYED:

 

 

 

FIXED ASSETS

696,000

871,000

18,000

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Subsidiary companies

24,494,000

94,000

94,000

 

 

 

 

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

------------
24,494,000

------------
94,000

------------
94,000

TOTAL LONG TERM ASSETS

------------
25,190,000

------------
965,000

------------
112,000

CURRENT ASSETS

 

 

 

 

Stocks

-

2,324,000

-

 

 

 

 

 

 

Trade debtors

23,954,000

11,083,000

-

 

Other debtors, deposits & prepayments

74,000

6,527,000

-

 

Short term deposits

42,853,000

5,000,000

-

 

Amount due from holding company

2,100,000

923,000

2,000

 

Amount due from subsidiary companies

34,257,000

60,246,000

293,000

 

Amount due from related companies

19,986,000

44,909,000

-

 

Cash & bank balances

86,000

12,825,000

-

TOTAL CURRENT ASSETS


------------
123,310,000


------------
143,837,000


------------
295,000

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

Other creditors & accruals

746,000

4,426,000

-

 

Short term borrowings/Term loans

32,532,000

-

-

 

Amounts owing to holding companies

54,000

10,705,000

16,407,000

 

Amounts owing to subsidiary companies

237,000

-

-

 

Amounts owing to related companies

51,083,000

82,361,000

-

 

Derivative liabilities

-

66,000

-

TOTAL CURRENT LIABILITIES

------------
84,652,000

------------
97,558,000

------------
16,407,000

NET CURRENT ASSETS/(LIABILITIES)

------------
38,658,000

------------
46,279,000

------------
<16,112,000>

TOTAL NET ASSETS

------------
63,848,000
==========

------------
47,244,000
==========

------------
<16,000,000>
==========

FINANCED BY:

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

1,000,000

1,000,000

2,000

TOTAL SHARE CAPITAL

------------
1,000,000

------------
1,000,000

------------
2,000

RESERVES

 

 

 

 

Share premium

20,000,000

20,000,000

-

 

Retain profit/(Accumulated loss) carried forward

<24,867,000>

<31,287,000>

<16,002,000>

 

Other reserve

11,362,000

8,378,000

-

 

 

 

 

 


TOTAL RESERVES

------------
6,495,000

------------
<2,909,000>

------------
<16,002,000>


SHAREHOLDERS' FUNDS/EQUITY


------------
7,495,000


------------
<1,909,000>


------------
<16,000,000>


LONG TERM & DEFERRED LIABILITIES & PROVISIONS

 

 

 

 

Long term loans

56,353,000

46,870,000

-

 

Deferred taxation

-

2,283,000

-


TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS

------------
56,353,000

------------
49,153,000

------------
-

 

------------

------------

------------

 

63,848,000

47,244,000

<16,000,000>

 

==========

==========

==========

 

 

 

 

 

 

 

 

FINANCIAL RATIOS

 

 

PETRONAS BASE OIL (M) SDN BHD

As At 31-March-2010

 

 

 

 

 

2010

2009

2008

 

MYR

MYR

MYR

TYPES OF FUNDS

 

 

 

 

Cash

42,939,000

17,825,000

0

 

Net Liquid Funds

10,407,000

17,825,000

0

 

Net Liquid Assets

38,658,000

43,955,000

<16,112,000>

 

Net Current Assets/(Liabilities)

38,658,000

46,279,000

<16,112,000>

 

Net Tangible Assets

63,848,000

47,244,000

<16,000,000>

 

Net Monetary Assets

<17,695,000>

<5,198,000>

<16,112,000>

 

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

88,885,000

46,870,000

0

 

Total Liabilities

141,005,000

146,711,000

16,407,000

 

Total Assets

148,500,000

144,802,000

407,000

 

Net Assets

63,848,000

47,244,000

<16,000,000>

 

Net Assets Backing

7,495,000

<1,909,000>

<16,000,000>

 

Shareholders" Funds

7,495,000

<1,909,000>

<16,000,000>

 

Total Share Capital

1,000,000

1,000,000

2,000

 

Total Reserves

6,495,000

<2,909,000>

<16,002,000>

 

 

 

 

 

LIQUIDITY(Times)

 

 

 

 

Cash Ratio

0.51

0.18

0

 

Liquid Ratio

1.46

1.45

0.02

 

Current Ratio

1.46

1.47

0.02

 

 

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

0

7

0

 

Debtors Ratio

21

34

0

 

Creditors Ratio

0

0

0

 

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

11.86

<24.55>

0

 

Liabilities Ratio

18.81

<76.85>

<1.03>

 

Times Interest Earned Ratio

758.46

<6.74>

0

 

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

0.81

<13.11>

0

 

Net Profit Margin

1.51

<12.68>

0

 

Return On Net Assets

5.42

<29.11>

59.47

 

Return On Capital Employed

3.59

<29.11>

59.47

 

Return On Shareholders' Funds/Equity

85.66

800.68

59.47

 

Dividend Pay Out Ratio (Times)

0

0

0

 

 

 

 

 

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0.00

0.00

0.00

 

 

 

 

 

 

 

 

                                                                   

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.38

UK Pound

1

Rs.73.08

Euro

1

Rs.61.60

 

 

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

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

----

NB

New Company

----

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.