|
* Adopted abbreviations : SC
- Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
355014-W
|
|
COMPANY NAME
|
:
|
KUNAK REFINERY SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
12/08/1995
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
JALAN KELAPA SAWIT, OFF KILOMETER 4, JALAN TUARAN, 88300 KOTA KINABALU,
SABAH, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
JALAN PENGKALAN OFF PELABUHAN KUNAK PETI SURAT 232, 91207 KUNAK,
SABAH, MALAYSIA.
|
|
TEL.NO.
|
:
|
088-089-853315
|
|
FAX.NO.
|
:
|
088-089-853316
|
|
CONTACT PERSON
|
:
|
PETER DAVID ( MANAGER )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
15142
|
|
PRINCIPAL ACTIVITY
|
:
|
REFINE CRUDE PALM OIL & CRUSHING OF PALM KERNAL
|
|
AUTHORISED CAPITAL
|
:
|
MYR 100,000.00
DIVIDED INTO
ORDINARY SHARE 100,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 100,000.00
DIVIDED INTO
ORDINARY SHARES 3,376 CASH AND 96,624 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR
620,069,691 [2009]
|
|
NET WORTH
|
:
|
MYR <38,505,094> [2009]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
45 [2011]
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
N/A
|
|
MANAGEMENT CAPABILITY
|
:
|
WEAK
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
STRONG GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
NIL
|
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) refine crude palm oil
& crushing of palm kernal.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
RIKAWORTH SDN BHD
|
JALAN KELAPA SAWIT, OFF KILOMETER 4, JALAN TUARAN, 88300 KOTA
KINABALU, SABAH, MALAYSIA.
|
465572
|
100,000.00
|
|
|
|
|
---------------
|
|
|
|
|
100,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. OTHMAN BIN WALAT
|
|
Address
|
:
|
UNIT 23-1-4, BLOCK K, GRACE VILLE, SEMBULAN, 88100 KOTA KINABALU,
SABAH, MALAYSIA.
|
|
IC / PP No
|
:
|
3705995
|
|
New IC No
|
:
|
491031-02-5171
|
|
Date of Birth
|
:
|
31/10/1949
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
19/09/2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. MASRI BIN PUDIN
|
|
Address
|
:
|
KAMPUNG KELANAHAN, 89600 PAPAR, SABAH, MALAYSIA.
|
|
IC / PP No
|
:
|
H0263145
|
|
New IC No
|
:
|
570913-12-5161
|
|
Date of Birth
|
:
|
13/09/1957
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
20/01/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MS.MARY KU MEI LI
|
|
Address
|
:
|
7, TAMAN BARU, JALAN DAMAI, LUYANG, 88400 KOTA KINABALU, SABAH,
MALAYSIA.
|
|
IC / PP No
|
:
|
H0132956
|
|
New IC No
|
:
|
520331-12-5158
|
|
Date of Birth
|
:
|
31/03/1952
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. ISMAIL BIN SALKILAN
|
|
Address
|
:
|
KAMPUNG TEGULI, PUTATAN, 88827 KOTA KINABALU, SABAH, MALAYSIA.
|
|
IC / PP No
|
:
|
H0457548
|
|
New IC No
|
:
|
600509-12-5623
|
|
Date of Birth
|
:
|
09/05/1960
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
16/11/2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 5
|
Name Of Subject
|
:
|
MS. STELLA AMBROSE
|
|
Address
|
:
|
KAMPUNG NAGAPAS, 89600 PAPAR, SABAH, MALAYSIA.
|
|
IC / PP No
|
:
|
H0802339
|
|
New IC No
|
:
|
720718-12-5626
|
|
Date of Birth
|
:
|
18/07/1972
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN OTHER
|
|
Date of Appointment
|
:
|
20/01/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
PETER DAVID
|
|
|
Position
|
:
|
MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
DELOITTE KASSIMCHAN
|
|
Auditor' Address
|
:
|
UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA UPTOWN, LEVEL 19, 47400
PETALING JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. MARY KU MEI LI
|
|
|
IC / PP No
|
:
|
H0132956
|
|
|
New IC No
|
:
|
520331-12-5158
|
|
|
Address
|
:
|
7, TAMAN BARU, JALAN DAMAI, LUYANG, 88400 KOTA KINABALU, SABAH,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
No Banker found in our databank.
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
|
Percentage
|
:
|
100%
|
|
Overseas
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Services
|
:
|
REFINE CRUDE PALM OIL & CRUSHING OF PALM KERNAL
|
|
|
|
|
|
Competitor(s)
|
:
|
CAROTECH BHD
FELDA PALM INDUSTRIES SDN BHD
GENTING SDC SDN BHD
KECK SENG (MALAYSIA) BHD
PROSPER PALM OIL MILL SDN BHD
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2011
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
45
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) refine crude palm oil
& crushing of palm kernal.
The SC is primarily engaged in retail sale by confectioners, tobacconists and
newsagents (CTNs); retail sale in non-specialised stores (excluding CTNs)
holding an alcohol licence, with food, beverages or
tobacco
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
|
:
|
88235811
|
|
Current Telephone Number
|
:
|
088-089-853315
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Address Provided by Client
|
:
|
JALAN PANGKALAN OFF JALAN KASTAM , 91207, KUNAK, SABAH .
|
|
Current Address
|
:
|
JALAN PENGKALAN OFF PELABUHAN KUNAK PETI SURAT 232, 91207 KUNAK,
SABAH, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the SC staff Mis Kasmah and she provided some information regarding to the
SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Erratic
|
[
|
2007 - 2009
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2007 - 2009
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
5.30%
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
5.30%
|
]
|
The fluctuating turnover reflects the fierce competition among the existing and
new market players. The SC could be more efficient in controlling its
operating costs and had managed to reduce its losses during the year. 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
|
[
|
41 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
29 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
10 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
|
:
|
Unfavourable
|
[
|
0.31 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.53 Times
|
]
|
A low liquid ratio means that the SC may be facing working capital
deficiency. If the SC cannot obtain additional financing or injection of
fresh capital, it may face difficulties in meeting its short term
obligations.
Solvency
|
Interest Cover
|
:
|
Nil
|
[
|
0.00 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
The SC's interest cover was nil as it did not pay any interest during the year.
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:
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. Due to its
weak liquidity position, the SC will be faced with problems in meeting all
its short term obligations if no short term loan is obtained or additional
capital injected into the SC. The SC did not make any interest payment during
the year. The SC was dependent on its shareholders' funds to finance its
business needs. 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 : POOR
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
|
|
15142 : Manufacture of crude 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 1995 as a private limited company, the SC is
principally engaged in the refining of crude palm oil and crushing of palm kernal. Having been in the industry for more than a
decade, the SC should have received strong support from its regular
customers. With an issued and paid up capital of RM100,000 and backing by Rikaworth Sdn Bhd, the SC has the ability to further expand its
business in the future.
|
|
The SC focuses only on overseas market. This global approach has enabled
the SC to generate a better growth sales. Being an export-oriented company,
the SC however is subjected to certain inherent risk of global economy
slowdown, foreign currencies fluctuations and stiff competition in the
international market. Overall, we regard that the SC's management
capability is week as the SC's management was failed in generating a profit
on the SC.
|
|
In 2009, the SC has generated a pre-tax loss of RM2.04 million. We noticed
that the SC has generated a pre-tax loss over 3 financial years. Due to the
losses, the SC has generated an unfavourable
return on shareholders' funds, indicating that the SC did not generate an
acceptable amount of profits based on its existing shareholders' funds. Due
to its weak liquidity position, the SC will be faced with problems in
meeting all its short term obligations if no short term loan is obtained or
additional capital injected into the SC. Overall, the SC's financial
position is poor.
|
|
All of the SC's products are sourced locally. However, as an
export-oriented company, the SC is exposed to high foreign exchange risk.
|
|
The industry is rapidly growing and continue to be attractive in the near
terms. We believe that the SC has the potential of capturing a higher
market share in line with the tremendous growth in the industry. However,
with its weak financial condition, the SC may face problem when competing
with other players in the same industry.
|
|
In view of its red shareholders' funds, we do not recommend credit be
granted to the SC.
|
PROFIT AND LOSS ACCOUNT
|
THE
FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING
STANDARD.
|
|
KUNAK
REFINERY SDN BHD
|
|
For
The Year Ended 31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
620,069,691
|
683,641,880
|
554,776,901
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
<2,039,250>
|
<35,414,314>
|
<523,705>
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
<2,039,250>
|
<35,414,314>
|
<523,705>
|
|
|
|
|
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
<2,039,250>
|
------------
<35,414,314>
|
------------
<523,705>
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
<2,039,250>
|
------------
<35,414,314>
|
------------
<523,705>
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
<2,039,250>
|
------------
<35,414,314>
|
------------
<523,705>
|
|
As previous reported
|
<36,565,844>
|
<1,151,530>
|
<627,825>
|
|
|
|
|
|
|
As restated
|
------------
<36,565,844>
|
------------
<1,151,530>
|
------------
<627,825>
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
<38,605,094>
|
<36,565,844>
|
<1,151,530>
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
<38,605,094>
==========
|
------------
<36,565,844>
==========
|
------------
<1,151,530>
==========
|
|
RETAINED BY: The Company
|
<38,605,094>
|
<36,565,844>
|
<1,151,530>
|
|
|
|
|
|
|
|
|
|
|
|
|
------------
<38,605,094>
==========
|
------------
<36,565,844>
==========
|
------------
<1,151,530>
==========
|
|
|
|
|
|
BALANCE SHEET
|
KUNAK
REFINERY SDN BHD
|
|
As
At 31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
105,759,693
|
103,117,440
|
98,267,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
105,759,693
|
------------
103,117,440
|
------------
98,267,378
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
69,121,364
|
25,794,478
|
27,842,501
|
|
|
|
|
|
|
|
|
Trade debtors
|
49,444,790
|
-
|
-
|
|
|
Other debtors, deposits & prepayments
|
4,780
|
104,226
|
4,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount due from holding company
|
96,624
|
96,624
|
96,624
|
|
|
|
|
|
|
|
|
Amount due from related companies
|
-
|
118,637,681
|
124,697,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
33,170,373
|
45,217
|
472,884
|
|
|
|
|
|
|
|
|
Bankers acceptance
|
12,000,000
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
163,837,931
|
------------
144,678,226
|
------------
153,113,936
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
17,424,916
|
-
|
-
|
|
|
Other creditors & accruals
|
1,726,998
|
2,093,437
|
3,213,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to holding companies
|
13,714,549
|
-
|
-
|
|
|
|
|
|
|
|
|
Amounts owing to related companies
|
275,236,255
|
268,453,524
|
235,505,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others (please specify)
|
-
|
13,714,549
|
13,714,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
308,102,718
|
------------
284,261,510
|
------------
252,432,844
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<144,264,787>
|
------------
<139,583,284>
|
------------
<99,318,908>
|
|
TOTAL NET ASSETS
|
------------
<38,505,094>
==========
|
------------
<36,465,844>
==========
|
------------
<1,051,530>
==========
|
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
100,000
|
100,000
|
100,000
|
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
100,000
|
------------
100,000
|
------------
100,000
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
<38,605,094>
|
<36,565,844>
|
<1,151,530>
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
<38,605,094>
|
------------
<36,565,844>
|
------------
<1,151,530>
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
<38,505,094>
|
------------
<36,465,844>
|
------------
<1,051,530>
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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------------
|
------------
|
------------
|
|
|
<38,505,094>
|
<36,465,844>
|
<1,051,530>
|
|
|
==========
|
==========
|
==========
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|
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|
|
FINANCIAL RATIOS
|
KUNAK
REFINERY SDN BHD
|
|
As
At 31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
33,170,373
|
45,217
|
472,884
|
|
|
Net Liquid Funds
|
33,170,373
|
45,217
|
472,884
|
|
|
Net Liquid Assets
|
<213,386,151>
|
<165,377,762>
|
<127,161,409>
|
|
|
Net Current Assets/(Liabilities)
|
<144,264,787>
|
<139,583,284>
|
<99,318,908>
|
|
|
Net Tangible Assets
|
<38,505,094>
|
<36,465,844>
|
<1,051,530>
|
|
|
Net Monetary Assets
|
<213,386,151>
|
<165,377,762>
|
<127,161,409>
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
0
|
0
|
0
|
|
|
Total Liabilities
|
308,102,718
|
284,261,510
|
252,432,844
|
|
|
Total Assets
|
269,597,624
|
247,795,666
|
251,381,314
|
|
|
Net Assets
|
<38,505,094>
|
<36,465,844>
|
<1,051,530>
|
|
|
Net Assets Backing
|
<38,505,094>
|
<36,465,844>
|
<1,051,530>
|
|
|
Shareholders" Funds
|
<38,505,094>
|
<36,465,844>
|
<1,051,530>
|
|
|
Total Share Capital
|
100,000
|
100,000
|
100,000
|
|
|
Total Reserves
|
<38,605,094>
|
<36,565,844>
|
<1,151,530>
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.11
|
0
|
0
|
|
|
Liquid Ratio
|
0.31
|
0.42
|
0.50
|
|
|
Current Ratio
|
0.53
|
0.51
|
0.61
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
41
|
14
|
18
|
|
|
Debtors Ratio
|
29
|
0
|
0
|
|
|
Creditors Ratio
|
10
|
0
|
0
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
0
|
|
|
Liabilities Ratio
|
<8.00>
|
<7.80>
|
<240.06>
|
|
|
Times Interest Earned Ratio
|
0
|
0
|
0
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
<0.33>
|
<5.18>
|
<0.09>
|
|
|
Net Profit Margin
|
<0.33>
|
<5.18>
|
<0.09>
|
|
|
Return On Net Assets
|
5.30
|
97.12
|
49.80
|
|
|
Return On Capital Employed
|
5.30
|
97.12
|
49.80
|
|
|
Return On Shareholders' Funds/Equity
|
5.30
|
97.12
|
49.80
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
|
