|
* Adopted abbreviations : SC - Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
40931-V
|
|
COMPANY NAME
|
:
|
DESMET BALLESTRA (MALAYSIA) SDN BHD
|
|
FORMER NAME
|
:
|
DE SMET
BALLESTRA (MALAYSIA) SDN BHD (04/07/2007)
DE SMET (MALAYSIA) SDN BHD (30/05/2007)
|
|
INCORPORATION DATE
|
:
|
28/07/1978
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
35-3, JALAN SS 15/8A, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
WISMA COMCORP, LEVEL 3, NO 37, JALAN PELUKIS U1/46, SECTION U1,
TEMASYA INDUSTRIAL PARK, 40150 SHAH ALAM, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-56348563
|
|
FAX.NO.
|
:
|
03-51639300
|
|
CONTACT PERSON
|
:
|
KHOO KIAK KERN ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
1120
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF OIL
PALM PROCESSING EQUIPMENT AND RELATED PRODUCTS
|
|
AUTHORISED CAPITAL
|
:
|
MYR
3,000,000.00 DIVIDED INTO
ORDINARY SHARE 3,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR
1,000,000.00 DIVIDED INTO
ORDINARY SHARES 250,000 CASH AND 750,000 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 184,372,008 [2009]
|
|
NET WORTH
|
:
|
MYR 20,877,458 [2009]
|
|
BANKER (S)
|
`
|
ALLIANCE
BANK MALAYSIA BHD
PUBLIC BANK BHD
|
|
|
STAFF STRENGTH
|
:
|
50 [2011]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STRONG
|
|
PAYMENT
|
:
|
PROMPT
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD228,846
|
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 oil palm
processing equipment and related products.
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
|
|
NV DESMET BALLESTRA ENGINEERING SA
|
MINERVASTRAAT 1, ZAVENTEM 1930, BELGIUM.
|
|
750,000.00
|
|
EXTRACTION DE SMET S A
|
PRINS BOUDEWIJNLAAN 265, B-2650 EDEGEM, BELGIUM.
|
|
249,998.00
|
|
KARL KNORPP
|
CT-13-01, SUBANG SQUARE, JALAN SS 15/4G, 47500 SUBANG JAYA,
SELANGOR, MALAYSIA.
|
E308496
|
1.00
|
|
MS. LIM CHEE LEN
|
17 JALAN SUBUH 25/92, TAMAN SRI MUDA, 40000 SHAH ALAM, SELANGOR,
MALAYSIA.
|
570630-01-6512
5270607
|
1.00
|
|
|
|
|
---------------
|
|
|
|
|
1,000,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MARC H.C.M.G. D'UDEKEM D'ACOZ (ECUYER)
|
|
Address
|
:
|
CT-13-01, SUBANG SQUARE, JALAN SS 15/4G, 47500 SUBANG JAYA,
SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
ED661181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
BELGIAN
|
|
Date of Appointment
|
:
|
14/07/2004
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. KHOO KIAK KERN
|
|
Address
|
:
|
17, JALAN USJ 4/1G, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
5708835
|
|
New IC No
|
:
|
590728-01-5217
|
|
Date of Birth
|
:
|
28/07/1959
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
29/01/2002
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
KHOO KIAK KERN
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
MARY
|
|
|
Position
|
:
|
ACCOUNT MANAGER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
JABIRUN
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
ERNST & YOUNG
|
|
Auditor' Address
|
:
|
MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, DAMANSARA
HEIGHTS, LEVEL 23A, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. OON CHENG GEK
|
|
|
IC / PP No
|
:
|
5328224
|
|
|
New IC No
|
:
|
580429-08-5478
|
|
|
Address
|
:
|
23, JALAN SS2/23, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
ALLIANCE BANK MALAYSIA BHD
|
|
|
|
|
|
|
2)
|
Name
|
:
|
PUBLIC BANK 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
|
:
|
01/12/2009
|
|
Description Of Charge
|
:
|
MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT AS SECURITY & LETTER OF
SETOFF
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
THE MONEYS INCLUDING INTERESTS STANDING TO THE CREDIT OF THE COMPANY
FIXED DEPOSIT ACCOUNTS WITH THE BANK
|
|
Name & Address Of Chargee
|
:
|
ALLIANCE BANK
MALAYSIA BHD
SUBANG JAYA BRANCH (BSJ), 3, JALAN SS 15/2A, 47500 SUBANG JAYA, SELANGOR,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 08/12/2009
|
|
Registered and Numbered 1 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
22/01/2010
|
|
Description Of Charge
|
:
|
LETTER OF SETOFF
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
PLEDGE OF FIXED DEPOSIT RECEIPT OR RENEWALS THEREOF OF CURRENT
ACCOUNT
|
|
Name & Address Of Chargee
|
:
|
PUBLIC BANK
BHD
B1-B4, JALAN SS 15/4D, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 22/02/2010
|
|
Registered and Numbered 2 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
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
|
:
|
ASIA
|
|
Credit Term
|
:
|
30 - 60 DAYS,AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
TELEGRAPHIC TRANSFER (TT),CHEQUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
EDIBLE OIL EQUIPMENTS
|
|
|
|
|
|
Services
|
:
|
ENGINEERING, CONSULTANCY, FABRICATION
|
|
|
|
|
|
Competitor(s)
|
:
|
AZNAF
CONSTRUCTION & INTERIORS SDN BHD
C.K. CHAI CONSTRUCTION SDN BHD
CONSTANT BUILD & ENGINEERING SDN BHD
H.M. ENTERPRISE (MALAYSIA) SDN BHD
SAPURA DIVING SERVICES SDN BHD
|
|
|
|
|
|
Ownership of premises
|
:
|
LEASED/RENTED
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
COMPANY
|
50
|
40
|
40
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of oil palm
processing equipment and related products.
The SC is involve in processing and upgrading the plants equipments.
Besides that it also design and install specific instruments and controls for
the plant engineering systems.
According to the SC, it also has regional branches located in Argentina,
Australia, Belgium, Brazil, China, France, Egypt, Russia, Singapore, Unired
States, United JKingdom and others.
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
|
:
|
03-56348563
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
WISMA COMCORP, LEVEL 3, NO 37, JALAN PELUKIS U1/46, SECTION U1,
TEMASYA INDUSTRIAL PARK, 40150, SHAH ALAM, SELANGOR.
|
|
Current Address
|
:
|
WISMA COMCORP, LEVEL 3, NO 37, JALAN PELUKIS U1/46, SECTION U1,
TEMASYA INDUSTRIAL PARK, 40150 SHAH ALAM, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the staff from the SC and she provided some information
on the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Erratic
|
[
|
2007 - 2009
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2007 - 2009
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
7.72%
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
8.43%
|
]
|
The fluctuating turnover reflects the fierce competition among the existing
and new market players. The SC's profit fell sharply because of the high
operating costs incurred. 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
|
[
|
0 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
51 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
27 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
|
[
|
1.35 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.36 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
|
[
|
137.48 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.01 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 lowly geared thus it had a low
financial risk. The SC was mainly financed by its shareholders' funds and
internally generated funds. In times of economic slowdown / downturn, the SC
being a lowly geared company, will be able to compete better than those
companies which are highly geared in the same industry.
Overall
Assessment:
The SC recorded
lower profits as its turnover showed a erratic trend. The SC's management was
unable to control its costs efficiently as its profit showed a downward
trend. 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 as a lowly geared company,
will be more secured compared to those highly geared companies. It has the
ability to meet all its long term obligations.
Overall financial condition of the SC : STRONG
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
|
|
1120 : Service activities incidental to crude oil and natural gas
extraction excluding surveying
|
|
|
|
|
INDUSTRY :
|
CRUDE PETROLEUM
|
|
|
|
|
|
|
Market sentiment is seen as driving the price of crude oil higher in fourth
quarter 2010 as signs of better-than-expected growth fuelled optimism for
prospects in year 2011.
|
|
On 21 December 2010, oil trading was bolstered by speculation that US
third-quarter gross domestic product data (GDP), scheduled to be released
later, would come in higher than the survey of 2.8%, up from a November
median estimate of 2.5% by economists.
|
|
Several weeks of declines in US crude oil stockpiles has also supported the
price of oil while a number of economists see the declines in stockpiles as
proof of increased demand from China although there were signs that demand
might be lower in 2011 as loose monetary policy was tightened amid
inflation fears.
|
|
The Organisation of Petroleum Exporting Countries (Opec) said in its
December report that crude oil's continued trading in the US$80 to US$90 range
was being driven by macroeconomics and bullish market sentiment following
signs of a recovery in oil demand.
|
|
Year-to-date, crude oil has risen by nearly 10% and by over 23% from a year
ago. It was trading at US$89.60 per barrel at 5pm on 21 December 2010.
However, the prices could stabilize should Opec members decide to increase
production in order to support the still weak global economic growth and it
would remain intact albeit “marginally” weaker compared with this year. The
prices will be revised upwards the 2011 growth forecast for the US economy
to 2.3% from less than 2% previously.
|
|
The economic situation could support further upside (in the oil price)
although there could be possible liquidation of long positions with no
change in fundamentals. Crude oil was briefly above US$90 per barrel on Dec
7 but fell after traders locked in profits following the highest ever
prices seen in more than two years.
|
|
Stockpiles for crude oil fell by 9.9 million barrels in the week ended Dec
10, according to a report from the US Department of Energy, a much larger
drop than the decline of 2.7 million barrels. Meanwhile the oil prices
hovered above US$89 a barrel on Tuesday as traders anticipated that weekly
U.S. crude inventories would fall in a sign of improved demand.
|
|
Benchmark oil for February delivery rose 45 cents to settle at $89.82 a
barrel on the New York Mercantile Exchange. Oil traded in the $70s for most
of year 2010, but jumped to a two-year high above $90 earlier December 2010
as Federal Reserve measures to keep lending rates low fueled optimism U.S.
economic growth will accelerate in year 2011.
|
|
Traders and investors are starting to feel more upbeat about the economy
and about the impact of the Fed's moves in recent months to change the
psychology. Oil traders remained optimistic about improving demand for
energy products as millions of Americans travel for the holidays. And
heating oil purchases are expected to rise 4.6 percent above normal for
this time of year because of cold weather.
|
|
The crude oil supplies expect to fall by 2.4 million barrels. Shrinking oil
inventories can point to higher prices, but rising prices so far are mainly
fired by hopes for stronger oil and gas demand in the near future. The
underlying facts of the market really haven't changed too much. A lot of
the upside potential of the market is predicated on the economic recovery.
|
|
An improving economy could limit oil price rises, if the dollar grows
stronger. Since oil and other commodities are priced in dollars, a stronger
dollar makes them more expensive for traders who use other currencies.
|
|
In other Nymex trading, heating oil added 2.69 cents to settle at $2.5164 a
gallon and natural gas dropped 17.8 cents to settle at $4.059 per 1,000
cubic feet. Gasoline rose 2.07 cents to close at $2.3981 a gallon. In
London, Brent crude rose 46 cents to settle at $93.20 a barrel on the ICE
Futures exchange.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS & RECOMMENDATION
|
Incorporated in 1978 as a private limited company, the SC is
principally engaged in the trading of oil palm processing equipments and
related products. With experiences for about 33 years in the industry, the
SC's operation has been running relatively stable since it has built up a
relatively sound and stable clientele base which has contributed to its
business growth. Strongly supported by its shareholders, the SC is expected
to enjoy timely financial and technical support should the needs arise.
|
|
Besides catering to the local market, the SC has ventured into Asia
countries. We believe that this global approach has minimised its
commercial risk and better growth prospects can be expected. Besides, we
noted that the SC has regional branches located in Argentina, Australia,
Belgium, Brazil, China, France, Egypt and others. Its wide and stable
marketing network has well diversified its business risk. Currently, the SC
has a total work force of 50 employees and its business operations are
considered stable. The SC has good management capability.
|
|
During the financial year under review, the SC's turnover continued on an
upward momentum, reaching RM184.37 million in 2009 compared to RM148.58
million previously. Nonetheless, its pre-tax profit had dropped from RM6.83
million to RM1.76 million. Due to this, the SC has generated a relatively
low return based on its existing shareholders' funds which indicated that
the management was inefficient in utilising its funds to generate income.
The SC however managed to maintain an adequate liquidity level, indicating
that the SC has the ability to meet its financial obligations. Being a
lowly geared company, the SC is exposed to low financial risk as it is
mainly dependent on its internal funds to finance its business needs. The
SC had a strong financial performance in year 2009.
|
|
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.
|
|
We regard that the SC's overall payment habit is prompt. The SC is capable
to meet small & medium commitments. Little caution needed for big
transactions.
|
|
The industry continues to grow and the growth prospect is bright. This has
created ample business opportunities for the SC to expand and stabilise its
business. With the SC's strong background, it has competitive edge against
other players in the same field.
|
|
In view of the above favourable conditions, we recommend that credit be
proceeded to the SC promptly.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
DESMET
BALLESTRA (MALAYSIA) SDN BHD
|
|
For The Year
Ended 31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
184,372,008
|
148,582,053
|
149,520,728
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
1,760,357
|
6,827,503
|
11,611,498
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
1,760,357
|
6,827,503
|
11,611,498
|
|
Taxation
|
<148,178>
|
<2,108,289>
|
<3,438,916>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
1,612,179
|
------------
4,719,214
|
------------
8,172,582
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
1,612,179
|
------------
4,719,214
|
------------
8,172,582
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
1,612,179
|
------------
4,719,214
|
------------
8,172,582
|
|
As previous reported
|
18,265,279
|
13,546,065
|
5,373,483
|
|
|
|
|
|
|
As restated
|
------------
18,265,279
|
------------
13,546,065
|
------------
5,373,483
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
19,877,458
|
18,265,279
|
13,546,065
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
19,877,458
==========
|
------------
18,265,279
==========
|
------------
13,546,065
==========
|
|
RETAINED BY: The Company
|
19,877,458
|
18,265,279
|
13,546,065
|
|
|
|
|
|
|
|
|
|
|
|
|
------------
19,877,458
==========
|
------------
18,265,279
==========
|
------------
13,546,065
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
Hire purchase
|
12,898
|
10,205
|
8,514
|
|
|
------------
12,898
==========
|
------------
10,205
==========
|
------------
8,514
==========
|
|
|
|
|
|
BALANCE SHEET
|
DESMET
BALLESTRA (MALAYSIA) SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
1,782,497
|
2,107,298
|
1,336,684
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deffered assets
|
850,431
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
850,431
|
------------
-
|
------------
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
2,632,928
|
------------
2,107,298
|
------------
1,336,684
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
136,493
|
286,678
|
136,493
|
|
|
|
|
|
|
|
|
Trade debtors
|
25,708,186
|
23,807,409
|
15,300,972
|
|
|
Other debtors, deposits & prepayments
|
618,332
|
641,140
|
1,056,674
|
|
|
Short term deposits
|
29,497,914
|
16,500,611
|
17,953,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount due from holding company
|
5,419,542
|
7,899,229
|
7,539,034
|
|
|
|
|
|
|
|
|
Amount due from related companies
|
1,163,380
|
1,022,769
|
1,712,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
1,866,770
|
3,578,296
|
1,065,351
|
|
|
|
|
|
|
|
|
Amount due from customers on contracts
|
4,547,739
|
9,831,782
|
7,872,745
|
|
|
Tax recoverable
|
880,180
|
201,789
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
69,838,536
|
------------
63,769,703
|
------------
52,636,950
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
13,417,565
|
19,591,749
|
17,025,170
|
|
|
Other creditors & accruals
|
3,667,515
|
3,301,739
|
1,446,465
|
|
|
Hire purchase & lease creditors
|
101,242
|
102,024
|
69,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to related companies
|
3,251,005
|
6,660,510
|
2,310,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
-
|
-
|
1,047,201
|
|
|
|
|
|
|
|
|
Amount due from customers on contracts
|
31,007,940
|
17,455,716
|
18,023,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
51,445,267
|
------------
47,111,738
|
------------
39,923,047
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
18,393,269
|
------------
16,657,965
|
------------
12,713,903
|
|
TOTAL NET ASSETS
|
------------
21,026,197
==========
|
------------
18,765,263
==========
|
------------
14,050,587
==========
|
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
1,000,000
|
250,000
|
250,000
|
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
1,000,000
|
------------
250,000
|
------------
250,000
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
19,877,458
|
18,265,279
|
13,546,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
19,877,458
|
------------
18,265,279
|
------------
13,546,065
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
20,877,458
|
------------
18,515,279
|
------------
13,796,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase creditors
|
148,739
|
249,984
|
201,297
|
|
|
Deferred taxation
|
-
|
-
|
53,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
148,739
|
------------
249,984
|
------------
254,522
|
|
|
------------
|
------------
|
------------
|
|
|
21,026,197
|
18,765,263
|
14,050,587
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
DESMET
BALLESTRA (MALAYSIA) SDN BHD
|
|
As At
31-December-2009
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
31,364,684
|
20,078,907
|
19,018,351
|
|
|
Net Liquid Funds
|
31,364,684
|
20,078,907
|
19,018,351
|
|
|
Net Liquid Assets
|
18,256,776
|
16,371,287
|
12,577,410
|
|
|
Net Current Assets/(Liabilities)
|
18,393,269
|
16,657,965
|
12,713,903
|
|
|
Net Tangible Assets
|
21,026,197
|
18,765,263
|
14,050,587
|
|
|
Net Monetary Assets
|
18,108,037
|
16,121,303
|
12,322,888
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
249,981
|
352,008
|
270,858
|
|
|
Total Liabilities
|
51,594,006
|
47,361,722
|
40,177,569
|
|
|
Total Assets
|
72,471,464
|
65,877,001
|
53,973,634
|
|
|
Net Assets
|
21,026,197
|
18,765,263
|
14,050,587
|
|
|
Net Assets Backing
|
20,877,458
|
18,515,279
|
13,796,065
|
|
|
Shareholders" Funds
|
20,877,458
|
18,515,279
|
13,796,065
|
|
|
Total Share Capital
|
1,000,000
|
250,000
|
250,000
|
|
|
Total Reserves
|
19,877,458
|
18,265,279
|
13,546,065
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.61
|
0.43
|
0.48
|
|
|
Liquid Ratio
|
1.35
|
1.35
|
1.32
|
|
|
Current Ratio
|
1.36
|
1.35
|
1.32
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
0
|
1
|
0
|
|
|
Debtors Ratio
|
51
|
58
|
37
|
|
|
Creditors Ratio
|
27
|
48
|
42
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0.01
|
0.02
|
0.02
|
|
|
Liabilities Ratio
|
2.47
|
2.56
|
2.91
|
|
|
Times Interest Earned Ratio
|
137.48
|
670.04
|
1.00
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
0.95
|
4.60
|
7.77
|
|
|
Net Profit Margin
|
0.87
|
3.18
|
5.47
|
|
|
Return On Net Assets
|
8.43
|
36.44
|
82.70
|
|
|
Return On Capital Employed
|
8.39
|
36.24
|
82.29
|
|
|
Return On Shareholders' Funds/Equity
|
7.72
|
25.49
|
59.24
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
|
|
|
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