MIRA INFORM REPORT

 

 

Report Date :

30.08.2012

 

 

 

Tel. No.:

607 2517663

Fax No.:

607 2517926

 

IDENTIFICATION DETAILS

 

Name :

MEWAHOLEO INDUSTRIES SDN BHD

 

 

Formerly Known As :

MEWAHOLEO SDN BHD

 

 

Registered Office :

Lot 40, Section 4, Fasa 2a, Pulau Indah Industrial Park, Pulau Indah, 42920 Pelabuhan Kelang, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

25.02.1991

 

 

Com. Reg. No.:

213028-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Refining and Sale of Palm Oil Products

 

 

No. of Employees :

400

 

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

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

213028-M

COMPANY NAME

:

MEWAHOLEO INDUSTRIES SDN BHD

FORMER NAME

:

CONTAINER MAKERS SDN BHD (19/01/1994)
MEWAHOLEO SDN BHD

INCORPORATION DATE

:

25/02/1991

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LOT 40, SECTION 4, FASA 2A, PULAU INDAH INDUSTRIAL PARK, PULAU INDAH, 42920 PELABUHAN KELANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

PLO 283, JALAN BESI 1, PASIR GUDANG INDUSTRIAL ESTATE, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2517663

FAX.NO.

:

07-2517926

WEB SITE

:

www.mewaholeo.com.my

CONTACT PERSON

:

CHEO TONG CHOON ( CHAIRMAN )

 

 

 

INDUSTRY CODE

:

15149

PRINCIPAL ACTIVITY

:

REFINING AND SALE OF PALM OIL PRODUCTS

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO 
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO 
ORDINARY SHARES 10,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 3,900,808,941 [2010]

NET WORTH

:

MYR 180,649,235 [2010]

M1000 OVERALL RANKING

:

123[2011]

M1000 INDUSTRY RANKING

:

5[2011]

 

 

 

STAFF STRENGTH

:

400 [2012]

BANKER (S)

:

AMBANK (M) BHD
BANGKOK BANK BHD
BANK MUAMALAT MALAYSIA BHD
CIMB BANK BHD
RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The SC is principally engaged in the (as a / as an) refining and sale of palm oil products.

 

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

According to the Malaysia 1000 publication, the SC's ranking are as follows:

 

 

 

 

 

 

YEAR

2011

2009

2008

2005

2004

 

OVERALL RANKING

123

101

35

21

27

 

INDUSTRY RANKING

5

1

1

1

1

 

 

The immediate holding company of the SC is PADAT GAYA SDN BHD, a company incorporated in MALAYSIA.

 

The ultimate holding company of the SC is MOI INTERNATIONAL HOLDINGS INC, a company incorporated in CAYMAN ISLANDS.

 

The penultimate holding company of the SC is ONE MARTHOMA (CI) INC, a company incorporated in CAYMAN ISLANDS.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

PADAT GAYA SDN BHD

LOT 40, SECTION 4, FASA 2A, PULAU INDAH INDUSTRIAL PARK, JALAN SUNGAI PINANG 5/1, 42920 PELABUHAN KELANG, SELANGOR, MALAYSIA.

724262

10,000,000.00

100.00

 

 

 

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

------

 

 

 

10,000,000.00

100.00

 

 

 

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

=====

 

 

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. LEONG CHOI FOONG

Address

:

B-5-7, ENDAH REGAL CONDOMINUM, 7 JALAN 3/149E, TAMAN SRI ENDAH, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5044690

New IC No

:

560924-10-5466

Date of Birth

:

24/09/1956

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

DIRECTOR 2

 

Name Of Subject

:

DATUK DR FAWZIA BINTI ABDULLAH

Address

:

53, JALAN CENGAL PASIR, SIERRAMAS, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

IC / PP No

:

0009730

New IC No

:

430611-01-5050

Date of Birth

:

11/06/1943

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

03/09/2007

 

 

 

 

 

 

Working Experience

:

TIM PENGARAH KESIHATAN PERGIGIAN, KEM KESIHATAN M'SIA

Other Info

:

KESATRIA MANGKU NEGARA (K.M.N.)

 

DIRECTOR 3

 

Name Of Subject

:

MS. LEONG QUEE ME

Address

:

18, JALAN PULAI 66, TAMAN PULAI UTAMA, 81300 JOHOR BHARU, JOHOR, MALAYSIA.

IC / PP No

:

A1956793

New IC No

:

710727-05-5210

Date of Birth

:

27/07/1971

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

01/11/2010

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MS. WONG LAI WAN

Address

:

7, JALAN SURIA 3, TAMAN SURIA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

New IC No

:

601221-08-5604

Date of Birth

:

21/12/1960

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

12/04/2011

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

CHEO TONG CHOON

 

Position

:

CHAIRMAN

 

 

 

 

 

2)

Name of Subject

:

TAN MIIN YI

 

Position

:

ACCOUNTANT

 

 

 

 

 

3)

Name of Subject

:

NORAN FAUZIAH HAROUN

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR CENTRAL, P O BOX 10192, LEVEL 10, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LEONG CHOI FOONG

 

IC / PP No

:

5044690

 

New IC No

:

560924-10-5466

 

Address

:

B-5-7, ENDAH REGAL CONDOMINUM, 7 JALAN 3/149E, TAMAN SRI ENDAH, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

AMBANK (M) BHD

 

 

 

 

 

2)

Name

:

BANGKOK BANK BHD

 

 

 

 

 

3)

Name

:

BANK MUAMALAT MALAYSIA BHD

 

 

 

 

 

4)

Name

:

CIMB BANK BHD

 

 

 

 

 

5)

Name

:

RHB 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

:

20/09/1994

Description Of Charge

:

AGREEMENT, DEBENTURE, CHARGE & CORPORATION GUARANTEE

 

Amount Secured

:

RM20,000,000.00

Description Of Property Affected

:

HS(D) 164881 PTD 64613, MK PLENTONG

 

Name & Address Of Chargee

:

DEVELOPMENT & COMMERCIAL BANK BHD
LOT 3.02, KOMPLEK PUSAT BDR PASIR GUDANG, LEVEL 3, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 26/11/1994

Registered and Numbered 4 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

17/12/1996

Description Of Charge

:

AGREEMENT & DEBENTURE

 

Amount Secured

:

RM10,000,000.00

Description Of Property Affected

:

HS(D) 164881, MK PLENTONG, DIST JOHOR BAHARU, JOHOR

 

Name & Address Of Chargee

:

DCB BANK BHD
DCB 2, RHB CENTRE 426, JLN TUN RAZAK, LEVEL 8, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 24/01/1997

Registered and Numbered 8 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

30/12/1999

Description Of Charge

:

9TH DEBENTURE

 

Amount Secured

:

RM20,000,000.00

Description Of Property Affected

:

PN 7650, LOT 51620, MK PLENTONG, DIST JOHOR BAHRU, JOHOR

 

Name & Address Of Chargee

:

RHB BANK BHD
10-A1, A2, A3 & A4 PUSAT PERDAGANGAN, JLN BDR, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 17/01/2000

Registered and Numbered 10 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

05/09/1996

Description Of Charge

:

DEBENTURE

 

Amount Secured

:

RM10,000,000.00

Description Of Property Affected

:

ALL SUMS OF MONEYS ARE PAYABLE TO THE ACCOUNT OF THE COMPANY

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated 13/12/2007

Registered and Numbered 13 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

29/02/2008

Description Of Charge

:

DEBENTURE

 

Amount Secured

:

RM50,000,000.00

Description Of Property Affected

:

ALL SUMS OF MONEYS ARE PAYABLE TO THE ACCOUNT OF THE COMPANY

 

Name & Address Of Chargee

:

BANGKOK BANK BHD
105, JALAN TUN HS LEE, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 17/03/2008

Registered and Numbered 14 In The Register of Charges


ENCUMBRANCE 6

Date of Creation

:

29/02/2008

Description Of Charge

:

1ST PARTY 1ST LEGAL CHARGE

 

Amount Secured

:

RM50,000,000.00

Description Of Property Affected

:

ALL THAT PARCEL OF FREEHOLD LAND HELD UNDER TITLE HSD 445379 PTD 190836, PLENTONG, JOHOR BAHRU

 

Name & Address Of Chargee

:

BANGKOK BANK BHD
105, JALAN TUN HS LEE, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 17/03/2008

Registered and Numbered 15 In The Register of Charges



ENCUMBRANCE 7

Date of Creation

:

27/08/2010

Description Of Charge

:

SPECIFIC DEBENTURE

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL ASSETS OF COMPANY

 

Name & Address Of Chargee

:

AMBANK (M) BHD
MENARA DION, JALAN SULTAN ISMAIL, LEVEL 18, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 01/11/2010

Registered and Numbered 17 In The Register of Charges



ENCUMBRANCE 8

Date of Creation

:

05/01/2012

Description Of Charge

:

DEBENTURE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD
TOWER ONE, RHB CENTRE, JALAN TUN RAZAK, LEVEL 10, 50400 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 23/04/2012

Registered and Numbered 18 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

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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

AUSTRALIA, INDIA, EUROPE, ASIA, NEW ZEALAND

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)

Type of Customer

:

FOOD MANUFACTURERS,DEALERS,WHOLESALE

 

OPERATIONS

 

Products manufactured

:

PALM OIL PRODUCTS, VEGETABLES OILS AND FATS

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIA FOOD & BEVERAGE INDUSTRY

 

 

 

Ownership of premises

:

OWNED

 

Production Capacity

:

3000 METRIC TONNES PER DAY

 

Shifts

:

3-4 SHIFT (24 HOURS)

 

 

 

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

2007

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

400

400

400

400

391

367

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) refining and sale of palm oil products.
The SC is under the Mewah Group of Companies.

The SC produces an extensive range of premium products as well as inhouse brands for Vegetable Oils & Fats, Special Frying Oils & Fats and Bakery and Confectionery Fats Products. 

Some of the major ones are as follows:

* Refined, Bleached and Deodorised (RBD) Palm Oil.

* Refined, Bleached and Deodorised (RBD) Palm Olein.

* Vegetable Ghee.

* Margerine.

* Shortening.

* Bakery Compound.

* Butter Oil Substitute

The SC is equipped with highly automated production capabilities to ensure production of high quality products that meets clients specifications.

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

072517663

Current Telephone Number

:

07-2517663

Match

:

YES

 

 

 

Address Provided by Client

:

PLO 283, JALAN BESI 1, PASIR GUDANG INDUSTRIAL ESTATE,81700,PASIR GUDANG,JOHOR.

Current Address

:

PLO 283, JALAN BESI 1, PASIR GUDANG INDUSTRIAL ESTATE, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


we contacted one of the staff from the SC's Accounts Department. She provided some information on the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2010

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2010

]

 

Return on Shareholder Funds

:

Acceptable

[

24.56%

]

 

Return on Net Assets

:

Favourable

[

30.15%

]

 

 

 

 

 

 

 

 

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 SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

28 Days

]

 

Debtor Ratio

:

Favourable

[

10 Days

]

 

Creditors Ratio

:

Favourable

[

22 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

[

0.78 Times

]

 

Current Ratio

:

Unfavourable

[

1.09 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

:

Acceptable

[

7.80 Times

]

 

Gearing Ratio

:

Favourable

[

0.15 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. 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. 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 had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. 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 : FAIR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

INDUSTRY ANALYSIS

 

MSIC CODE

15149 : Manufacture of other vegetable and animal oils and fats

 

 

INDUSTRY :

TRADING

 

 

 


The wholesale and retail trade sector grew 7.1% in the first half of the year 2011 supported by strong consumer spending amid favourable labour market conditions and sustained disposable income. This was reflected in the higher distributive trade index which increased 15.9%, with wholesale and retail trade indices increasing 19.2% and 7.8%, respectively. 


It is anticipated that the retail industry will grow 6.0 per cent in the year 2012.


Malaysia's retail sector for 2011 is expected to grow 6 per cent or RM81.59 billion worth of retail sales, similar to the year 2010, due to concerns of high oil prices, declining purchasing power and high cost of doing business. The Middle East and North Africa civil wars have caused the world oil prices to climb. This has led to further rise in the cost of running retail businesses, especially in terms of transportation cost. Many retailers have no choice but to pass the increased cost to end consumers. At the same time, natural disasters (tsunamis, floods, droughts, snow storms, tornadoes and earthquakes) that occurred in all parts of the world has also led to a shortage in the supply of food and raw materials. The phenomenon has pushed retail prices up.In addition, the continual removal of government subsidies since 2010 has pushed inflation upwards. Consequently, rising prices of retail goods contributed to an expectation of moderate performance.


During the first seven months of 2011, other consumption indicators such as imports of consumption goods and credit card spending increased 12.8% and 11.8%, respectively. Sales of motor vehicles declined 3% on account of supply chain disruptions following devastating March 2011 earthquake and tsunami in Japan.


Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.


Meanwhile, the Government has introduced the Retail Shop Transformation (TUKAR) programme. Under this programme, selected large format retailers will assist small retailers to improve their premises and layout which include attractive product display shelves, enhanced lighting and point-of-sales system to manage product inventory,

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1991, the SC is a Private Limited company, focusing on refining and sale of palm oil products. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. Hence, the SC is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The SC is a large entity with strong capital position. We are confident with the SC's business and its future growth prospect.


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. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. The SC is a fairly large and rapidly growing company with over 400 staff in its operations. The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright.


Financially, the SC registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. 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. Given a positive net worth standing at MYR 180,649,235, the SC should be able to maintain its business in the near terms.


Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. Investigation revealed that the SC imports its products from both local and overseas market. Thus it is affected by foreign currency fluctuation. Having been in the industry for two decade, the SC has built up its rapport with its suppliers. As a result, the SC has reduced its risk in facing shortage of raw materials. 


Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. As the SC is long presence in the market, it should have acquired competitive edge against other players in the same fields. Hence, the SC is expected to benefit from the favourable outlook of the industry.


Based on the above condition, we recommend credit be granted to the SC promptly.



 

PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

MEWAHOLEO INDUSTRIES SDN BHD

 

Financial Year End

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

3,900,808,941

3,164,034,995

3,741,424,787

2,995,140,327

 

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

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

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

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

Total Turnover

3,900,808,941

3,164,034,995

3,741,424,787

2,995,140,327

Costs of Goods Sold

<3,841,702,801>

<2,998,740,640>

-

-

 

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

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

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

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

Gross Profit

59,106,140

165,294,355

-

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

57,390,467

133,269,509

42,843,805

10,631,741

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

57,390,467

133,269,509

42,843,805

10,631,741

Taxation

<13,021,117>

<34,755,927>

<11,134,953>

695,065

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

44,369,350

98,513,582

31,708,852

11,326,806

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

174,636,483

142,871,218

118,943,288

107,245,820

 

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

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

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

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

As restated

174,636,483

142,871,218

118,943,288

107,245,820

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

219,005,833

241,384,800

150,652,140

118,572,626

- General

1,939,245

251,683

320,810

370,662

DIVIDENDS - Ordinary (paid & proposed)

<77,000,000>

<67,000,000>

<8,101,732>

-

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

143,945,078

174,636,483

142,871,218

118,943,288

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Term loan / Borrowing

7,440,521

-

-

14,180

Others

995,920

5,316,885

10,536,617

9,138,748

 

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

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

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

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

 

8,436,441

5,316,885

10,536,617

9,152,928

 

 

 

BALANCE SHEET

 

 

MEWAHOLEO INDUSTRIES SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

135,497,665

120,981,677

106,268,250

96,374,654

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

135,497,665

120,981,677

106,268,250

96,374,654

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

295,583,949

172,061,484

113,335,964

127,083,786

Trade debtors

105,009,274

186,069,473

197,666,128

173,296,849

Other debtors, deposits & prepayments

9,760,343

6,652,819

2,251,782

2,609,080

Short term deposits

9,574,247

743,678

29,758,633

20,029,998

Amount due from holding company

39,555,508

250,000

-

-

Amount due from subsidiary companies

559,043,875

293,968,826

276,470,052

411,440,520

Amount due from related companies

4,465,788

-

-

-

Cash & bank balances

6,324,786

7,277,960

4,912,029

12,060,378

Others

5,493,328

-

173,026,542

57,372,789

 

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

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

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

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

TOTAL CURRENT ASSETS

1,034,811,098

667,024,240

797,421,130

803,893,400

 

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

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

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

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

TOTAL ASSET

1,170,308,763

788,005,917

903,689,380

900,268,054

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

234,093,782

141,899,317

180,317,056

280,970,370

Other creditors & accruals

19,754,030

19,390,890

20,722,075

12,352,672

Short term borrowings/Term loans

10,008,000

-

-

-

Bill & acceptances payable

133,400,000

231,800,000

184,950,000

210,050,000

Amounts owing to holding company

70,593,512

-

-

-

Amounts owing to subsidiary companies

474,130,087

153,836,627

213,725,635

190,748,651

Amounts owing to related companies

33,443

-

-

-

Provision for taxation

-

9,700,000

4,900,000

2,240,282

Other liabilities

10,000,000

-

101,481,906

30,997,505

 

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

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

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

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

TOTAL CURRENT LIABILITIES

952,012,854

556,626,834

706,096,672

727,359,480

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

82,798,244

110,397,406

91,324,458

76,533,920

 

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

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

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

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

TOTAL NET ASSETS

218,295,909

231,379,083

197,592,708

172,908,574

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

10,000,000

10,000,000

10,000,000

10,000,000

 

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

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

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

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

TOTAL SHARE CAPITAL

10,000,000

10,000,000

10,000,000

10,000,000

 

 

 

 

 

RESERVES

 

 

 

 

Revaluation reserve

26,704,157

28,643,402

28,895,085

28,902,950

Retained profit/(loss) carried forward

143,945,078

174,636,483

142,871,218

118,943,288

 

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

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

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

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

TOTAL RESERVES

170,649,235

203,279,885

171,766,303

147,846,238

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

180,649,235

213,279,885

181,766,303

157,846,238

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

17,986,601

-

-

-

Deferred taxation

19,660,073

18,099,198

15,826,405

15,062,336

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

37,646,674

18,099,198

15,826,405

15,062,336

 

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

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

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

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

 

218,295,909

231,379,083

197,592,708

172,908,574

 

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

MEWAHOLEO INDUSTRIES SDN BHD

 

TYPES OF FUNDS

 

 

 

 

Cash

15,899,033

8,021,638

34,670,662

32,090,376

Net Liquid Funds

15,899,033

8,021,638

34,670,662

32,090,376

Net Liquid Assets

<212,785,705>

<61,664,078>

<22,011,506>

<50,549,866>

Net Current Assets/(Liabilities)

82,798,244

110,397,406

91,324,458

76,533,920

Net Tangible Assets

218,295,909

231,379,083

197,592,708

172,908,574

Net Monetary Assets

<250,432,379>

<79,763,276>

<37,837,911>

<65,612,202>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

27,994,601

0

0

0

Total Liabilities

989,659,528

574,726,032

721,923,077

742,421,816

Total Assets

1,170,308,763

788,005,917

903,689,380

900,268,054

Net Assets

218,295,909

231,379,083

197,592,708

172,908,574

Net Assets Backing

180,649,235

213,279,885

181,766,303

157,846,238

Shareholders' Funds

180,649,235

213,279,885

181,766,303

157,846,238

Total Share Capital

10,000,000

10,000,000

10,000,000

10,000,000

Total Reserves

170,649,235

203,279,885

171,766,303

147,846,238

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.02

0.01

0.05

0.04

Liquid Ratio

0.78

0.89

0.97

0.93

Current Ratio

1.09

1.20

1.13

1.11

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

28

20

11

15

Debtors Ratio

10

21

19

21

Creditors Ratio

22

17

18

34

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.15

0.00

0.00

0.00

Liabilities Ratio

5.48

2.69

3.97

4.70

Times Interest Earned Ratio

7.80

26.07

5.07

2.16

Assets Backing Ratio

21.83

23.14

19.76

17.29

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

1.47

4.21

1.15

0.35

Net Profit Margin

1.14

3.11

0.85

0.38

Return On Net Assets

30.15

59.90

27.02

11.44

Return On Capital Employed

30.15

59.90

27.02

11.44

Return On Shareholders' Funds/Equity

24.56

46.19

17.44

7.18

Dividend Pay Out Ratio (Times)

1.74

0.68

0.26

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.66

UK Pound

1

Rs.88.04

Euro

1

Rs.69.91

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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 Business

 

--

 

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.