|
* Adopted abbreviations : SC
- Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
534996-V
|
|
COMPANY NAME
|
:
|
IFFCO (S.E.A.) SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
15/12/2000
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
4B, JALAN SS 21/58, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR,
MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
TOWER 2, ETIQA TWINS,, LEVEL 22, LOT A & B, 11 JALAN PINANG,
50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-21742020
|
|
FAX.NO.
|
:
|
03-21760355
|
|
CONTACT PERSON
|
:
|
MOHAMED HASHIM BIN MOHAMED ALI ( DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51212
|
|
PRINCIPAL
ACTIVITY
|
:
|
TRADING OF
PALM OILS & VEGETABLE OIL
|
|
AUTHORISED
CAPITAL
|
:
|
MYR 500,000.00
DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR 350,000.00
DIVIDED INTO
ORDINARY SHARES 350,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR
846,717,492 [2010]
|
|
NET WORTH
|
:
|
MYR 1,660,254 [2010]
|
|
STAFF STRENGTH
|
:
|
20 [2011]
|
|
BANKER (S)
|
:
|
HSBC BANK
MALAYSIA BHD
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
STRONG GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD215,424
|
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 palm oils
& vegetable oil.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The immediate and ultimate holding company of the SC is IFFCO SINGAPORE PTE
LTD, a company incorporated in SINGAPORE.
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
IFFCO SINGAPORE PTE LTD
|
78, SHENTON WAY, 26-02A, 079120, SINGAPORE.
|
200602677N
|
350,000.00
|
|
|
|
|
---------------
|
|
|
|
|
350,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. MOHAMED HASHIM BIN MOHAMED ALI
|
|
Address
|
:
|
18, JALAN TU 34, TAMAN TASIK UTAMA AYER KEROH, 75450 AIR KEROH,
MELAKA, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
491103-06-5237
|
|
Date of Birth
|
:
|
03/11/1949
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
21/02/2003
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. SYED RIZWAN AHMED
|
|
Address
|
:
|
VILLA 14, AL FISHT AREA, NEXT TO SHARJAH WOMEN CLUB, AL SHARQ
STREET, PO BOX 6906, SHARJAH, UNITED ARAB EMIRATES.
|
|
IC / PP No
|
:
|
BD1158065
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
PAKISTANI
|
|
Date of Appointment
|
:
|
02/02/2010
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MANISH BHOOPAL
|
|
Address
|
:
|
THE AVARE, UNIT 18A, 2 LORONG KUDA, OFF JALAN TUN RAZAK, 50450 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
Z1746119
|
|
Nationality
|
:
|
INDIAN
|
DIRECTOR 4
|
Name Of Subject
|
:
|
PURNENDU RAJESHWAR THAKORE
|
|
Address
|
:
|
2-2, SERI RITCHIE, 327B, PERSIARAN RITCHIE, 55000 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
Z1808236
|
|
Nationality
|
:
|
INDIAN
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
MOHAMED HASHIM BIN MOHAMED ALI
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
SIVA
|
|
|
Position
|
:
|
COMMERCIAL MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
CHONG & CO
|
|
Auditor' Address
|
:
|
SUITE 3.03, WISMA TCL, 470 JALAN IPOH, 3RD MILE, 3RD FLOOR, 51200 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. LEE MEE LENG
|
|
|
IC / PP No
|
:
|
5210780
|
|
|
New IC No
|
:
|
570708-05-5774
|
|
|
Address
|
:
|
3, JALAN USJ 11/1F, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
HSBC BANK MALAYSIA BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
The SC has bank charges with above mentioned banker(s).
|
ENCUMBRANCE (S)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
24/04/2008
|
|
Description Of Charge
|
:
|
TRADE FINANCING GENERAL AGREEMENT
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
A PLEDGE OF SECURITY ON THE DOCUMENTS AND GOODS
|
|
Name & Address Of Chargee
|
:
|
HSBC BANK
MALAYSIA BHD
2, LEBOH AMPANG, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Form 40 Dated 18/12/2008
|
|
Registered and Numbered 1 In The Register of Charges
|
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
|
Percentage
|
:
|
80%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
20%
|
|
Import Countries
|
:
|
ASIA
|
The SC refused to provide any name of trade/service supplier and we are unable
to conduct any trade enquiry. However, from financial historical data we
conclude that :
|
OVERALL PAYMENT HABIT
|
|
Prompt 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
|
]
|
|
Average 61-90 Days
|
[
|
X
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
UNITED ARAB EMIRATES (UAE), EGYPT, SOUTH
AFRICA, ASIA
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
FOOD MANUFACTURERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
PALM OILS & VEGETABLE OILS
|
|
|
|
|
|
Competitor(s)
|
:
|
CARGILL
SPECIALTY OILS & FATS SDN BHD
FELDA IFFCO TRADING SDN BHD
LEGEND EXPORTS SDN BHD
MITSHUBISHI CORPORATION
SIME DARBY FUTURES TRADING SDN BHD
|
|
|
|
|
|
Ownership of
premises
|
:
|
LEASED/RENTED
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
2008
|
2007
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
COMPANY
|
20
|
20
|
15
|
11
|
11
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of palm oils
& vegetable oil.
The SC is under IFFCO Group of Companies, which is based in United Arab
Emirates.
The SC acts as a buying house of refined vegetable oils for its related
companies in overseas.
We were informed that every month the SC will shipped out about 40,000 tonnes
of refined vegetable oil to its customers.
According to the SC, it does not keep stocks as it delivers the products
directly to customers' upon orders.
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
|
:
|
03-21742020
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
LOT A & B, LEVEL 22, TOWER 2, ETIQA TWINS, 11 JALAN PINANG,
50450 KUALA
|
|
Current Address
|
:
|
TOWER 2, ETIQA TWINS,, LEVEL 22, LOT A & B, 11 JALAN PINANG,
50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the staff from the Admin Department. She provided some
information on the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
2008 - 2010
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2008 - 2010
|
]
|
|
Return on Shareholder Funds
|
:
|
Favourable
|
[
|
64.94%
|
]
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
144.24%
|
]
|
The SC's turnover increased steadily as the demand for its products /
services increased due to the goodwill built up over the years. The higher
profit could be attributed to the increase in turnover. 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
|
:
|
Unfavourable
|
[
|
106 Days
|
]
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
71 Days
|
]
|
As the SC is a service oriented company, the SC does not need to keep stocks.
The SC's debtors ratio was high. The SC should tighten its credit control and
improve its collection period. The unfavourable creditors' ratio could be due
to the SC taking advantage of the credit granted by its suppliers. However
this may affect the goodwill between the SC and its suppliers and the SC may
inadvertently have to pay more for its future supplies.
Liquidity:
|
Liquid Ratio
|
:
|
Acceptable
|
[
|
1.00 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.00 Times
|
]
|
The SC's liquid ratio was slightly low. This could indicate that the SC's working
capital was slightly deficient. The SC will have to improve its liquidity
position either by obtaining short term financing or increase its paid up
capital so that it can meet all its short term obligations as and when they
fall due.
Solvency
|
Interest Cover
|
:
|
Unfavourable
|
[
|
2.23 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
The SC's interest cover was low. If its profits fall or when interest rate rises,
it may not be able to meet all its interest payment. 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
Assessment:
Generally, the
SC's performance has improved with higher turnover and profit. The SC was in good
liquidity position with its total current liabilities well covered by its
total current assets. With its current net assets, the SC should be able to
repay its short term obligations. If there is a fall in the SC's profit or
any increase in interest rate, the SC may not be able to generate sufficient
cash-flow to service its interest. 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:
|
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
|
|
51212 : Wholesale of palm oil
|
|
|
|
|
INDUSTRY :
|
PALM OIL
|
|
|
|
|
|
|
Inventory levels and the La Nina weather patterns will determine the price
of palm oil, which hit a 30-month high on 13 December 2010 while Crude palm
oil (CPO) for February delivery rose RM89 to close at RM3,722. The prices
expect to be firm over the next few months on sustained demand due to
end-year festivities and the coming Chinese New Year holidays despite
Malaysian plantations going into a production down-cycle after hitting a
peak in October.
|
|
Inventory in November 2010, which stood at 1.63 million tonnes, was 15.4%
lower than a year ago. Besides, wetter weather conditions going into the
first quarter of 2011 as a result of the La Nina weather patterns could
still affect the planting season and therefore prices going forward.
|
|
The CPO prices to be firm over the next few months on sustained demand due
to end-year festivities and will hover around the RM3,000 to RM3,500 levels
by the middle of year 2011.
|
|
According to the Malaysian Palm Oil Board, CPO production in November, at
1.45 million tonnes, was 8.6% lower than a year ago and 10.8% down from
October, where there was a recovery despite the weather conditions, while
year-to-date, it was 1.8% weaker than last year. While exports registered a
slight 0.1% decline from a year ago, it recovered on a month-on-month basis
and year-to-date, was up 4.8% compared to the same period in year 2009.
|
|
Inventories would depend on demand and the weather. The weather conditions
would be like six months down the road but the current weather conditions
were not normal. It's not normal to see the flooding that we've seen in the
northern part of the peninsula or the extreme cold conditions in Europe.
|
|
In a report that the November data was the worst November performance since
2005. While investors should watch out for softening prices starting from
mid-2011, there is no any urgency to underweight the sector at this point
in time as palm oil price should remain relatively firm given that the
supply tightness will persist in the next few months.
|
|
The house's average CPO price expectation of RM2,700 per tonne for next
year on expectations of a potential bumper harvest in the second-half while
for 2010, the CPO price was on track to hit an average price of RM2,700.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Strong Growth
|
COMMENTS & RECOMMENDATION
|
Incorporated in 2000 as an private limited company, the SC is principally engaged
in the trading of palm oils and vegetable oil. Having been in the industry
for 11 years, the SC should have built up its reputation and image in the
market. Despite the small paid up capital of RM350,000, the SC's turnover
increased steadily as the demand for its products very high, the SC's
future prospect is bright.
|
|
Over the years, the SC has established an extensive clientele base in the
market. Besides catering to the local market, the SC has penetrated into
other countries such as United Arab Emirates, Egypt, South Africa and Asia.
With the contribution of both local and overseas customers, the SC is
likely to be exposed to lower commercial risk. Headed by its Director,
Mohamed Hashim bin Mohamed Ali, the SC currently has about 20 staff in its
business operations. The overall management capability of the SC is good.
|
|
During the financial year under review, the SC's turnover continued on an
upward momentum, reaching RM847 million compared to RM241 million
previously. Correspondingly, its pre-tax profit rose to RM1.5 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. Besides, 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. Although we
noted that the SC's current liabilities well exceed its current assets, the
SC managed to maintain an adequate liquidity level, indicating that the SC
has the ability to meet its financial obligations. Given a positive net
worth standing at RM1.6 million, the SC should be able to maintain its
business in the near terms.
|
|
We are aware that 80% of the SC's products are sourced locally and the rest
are obtained from overseas market. Therefore the SC is exposed to foreign
currency risk. Having a stable supplier's base through its years of
establishment, the SC should have reduced the risk of shortage of raw
materials.
|
|
Based on our historical financial data, we concluded that the SC's payment
habit is average. With its adequate working capital, the SC should be able to
pay its short term debts. The SC is clear of any litigation action.
|
|
The palm oil industry continues to be attractive as government is
encouraging the cultivation of palm oil areas which are suitable and will
adopt sustainable agricultural practice. With the promising outlook of the
industry performance, the SC business potential should be favourable.
|
|
Based on the above condition, we recommend USD 215,424 of credit be granted
to the SC promptly.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL STATEMENTS
WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
IFFCO (S.E.A.)
SDN BHD
|
|
For The Year
Ended 31-December-2010
|
|
|
|
|
|
|
|
2010
|
2009
|
2008
|
|
|
MYR
|
MYR
|
MYR
|
|
TURNOVER
|
846,717,492
|
240,848,063
|
113,421,595
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
1,502,036
|
222,624
|
121,609
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
1,502,036
|
222,624
|
121,609
|
|
Taxation
|
<423,874>
|
<79,796>
|
<34,996>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
1,078,162
|
------------
142,828
|
------------
86,613
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
1,078,162
|
------------
142,828
|
------------
86,613
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
1,078,162
|
------------
142,828
|
------------
86,613
|
|
As previous reported
|
232,092
|
89,264
|
2,651
|
|
As restated
|
------------
232,092
|
------------
89,264
|
------------
2,651
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
1,310,254
|
232,092
|
89,264
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
1,310,254
==========
|
------------
232,092
==========
|
------------
89,264
==========
|
|
RETAINED BY: The Company
|
1,310,254
|
232,092
|
89,264
|
|
|
------------
1,310,254
==========
|
------------
232,092
==========
|
------------
89,264
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
|
|
|
|
|
Other interest expenses
|
1,221,250
|
-
|
19,182
|
|
Bill payment interest
|
-
|
104,923
|
-
|
|
|
------------
1,221,250
==========
|
------------
104,923
==========
|
------------
19,182
==========
|
|
|
|
|
|
BALANCE SHEET
|
IFFCO (S.E.A.)
SDN BHD
|
|
As At
31-December-2010
|
|
|
|
|
|
|
|
2010
|
2009
|
2008
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
2,217,455
|
1,271,367
|
539,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
2,217,455
|
------------
1,271,367
|
------------
539,060
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade debtors
|
245,069,268
|
8,419,610
|
21,182,526
|
|
|
Other debtors, deposits & prepayments
|
1,202,336
|
123,218
|
105,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
9,438,208
|
4,017,861
|
656,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
255,709,812
|
------------
12,560,689
|
------------
21,945,017
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
165,254,979
|
60,307
|
-
|
|
|
Other creditors & accruals
|
11,027,037
|
6,246,301
|
809,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bill & acceptances payable
|
78,639,307
|
6,862,068
|
21,182,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to holding companies
|
96,987
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
23,000
|
35,000
|
25,000
|
|
|
|
|
|
|
|
|
Amount owing to fellow subsidiary company
|
997,896
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
256,039,206
|
------------
13,203,676
|
------------
22,016,939
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<329,394>
|
------------
<642,987>
|
------------
<71,922>
|
|
TOTAL NET ASSETS
|
------------
1,888,061
==========
|
------------
628,380
==========
|
------------
467,138
==========
|
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
350,000
|
350,000
|
350,000
|
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
350,000
|
------------
350,000
|
------------
350,000
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
1,310,254
|
232,092
|
89,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
1,310,254
|
------------
232,092
|
------------
89,264
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
1,660,254
|
------------
582,092
|
------------
439,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxation
|
227,807
|
46,288
|
27,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
227,807
|
------------
46,288
|
------------
27,874
|
|
|
------------
|
------------
|
------------
|
|
|
1,888,061
|
628,380
|
467,138
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
IFFCO (S.E.A.)
SDN BHD
|
|
As At
31-December-2010
|
|
|
|
|
|
|
|
2010
|
2009
|
2008
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
9,438,208
|
4,017,861
|
656,846
|
|
|
Net Liquid Funds
|
9,438,208
|
4,017,861
|
656,846
|
|
|
Net Liquid Assets
|
<329,394>
|
<642,987>
|
<71,922>
|
|
|
Net Current Assets/(Liabilities)
|
<329,394>
|
<642,987>
|
<71,922>
|
|
|
Net Tangible Assets
|
1,888,061
|
628,380
|
467,138
|
|
|
Net Monetary Assets
|
<557,201>
|
<689,275>
|
<99,796>
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
0
|
0
|
0
|
|
|
Total Liabilities
|
256,267,013
|
13,249,964
|
22,044,813
|
|
|
Total Assets
|
257,927,267
|
13,832,056
|
22,484,077
|
|
|
Net Assets
|
1,888,061
|
628,380
|
467,138
|
|
|
Net Assets Backing
|
1,660,254
|
582,092
|
439,264
|
|
|
Shareholders" Funds
|
1,660,254
|
582,092
|
439,264
|
|
|
Total Share Capital
|
350,000
|
350,000
|
350,000
|
|
|
Total Reserves
|
1,310,254
|
232,092
|
89,264
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.04
|
0.30
|
0.03
|
|
|
Liquid Ratio
|
1.00
|
0.95
|
1.00
|
|
|
Current Ratio
|
1.00
|
0.95
|
1.00
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
0
|
0
|
0
|
|
|
Debtors Ratio
|
106
|
13
|
68
|
|
|
Creditors Ratio
|
71
|
0
|
0
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
0
|
|
|
Liabilities Ratio
|
154.35
|
22.76
|
50.19
|
|
|
Times Interest Earned Ratio
|
2.23
|
3.12
|
7.34
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
0.18
|
0.09
|
0.11
|
|
|
Net Profit Margin
|
0.13
|
0.06
|
0.08
|
|
|
Return On Net Assets
|
144.24
|
52.13
|
30.14
|
|
|
Return On Capital Employed
|
144.24
|
52.13
|
30.14
|
|
|
Return On Shareholders' Funds/Equity
|
64.94
|
24.54
|
19.72
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
|
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