MIRA INFORM REPORT

 

 

Report Date :

05.12.2012

 

IDENTIFICATION DETAILS

 

Name :

C.C. PALM TRADING SDN BHD

 

 

Registered Office :

03-32 Pkns Complex, 3rd Floor, 40000 Shah Alam, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

25.05.1999

 

 

Com. Reg. No.:

484347-M

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trading of crude palm oil products

 

 

No. of Employees :

25 [2012]

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

malaysia - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

 

Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

484347-M

COMPANY NAME

:

C.C. PALM TRADING SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

25/05/1999

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

03-32 PKNS COMPLEX, 3RD FLOOR, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 11771, JALAN IKAN MATA DUYONG, TELUK GONG, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31341995

FAX.NO.

:

03-31341998

CONTACT PERSON

:

CHUA CHEE KOON ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

51212

PRINCIPAL ACTIVITY

:

TRADING OF CRUDE PALM OIL PRODUCTS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,300,000.00 DIVIDED INTO 
ORDINARY SHARES 1,300,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 125,506,699 [2010]

NET WORTH

:

MYR 12,331,410 [2010]

 

 

 

STAFF STRENGTH

:

25 [2012]

BANKER (S)

:

ALLIANCE BANK MALAYSIA BHD
EON BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

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) trading of crude palm oil 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

(%)

MR. GOH CHING CHIAN @ NGO CHING CHIAN +

LOT A27 (12A), JALAN MENARA U8/5, SEKSYEN U8, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

720214-04-5315 A2143557

650,000.00

50.00

MR. CHUA CHEE KOON +

40, JALAN USJ 4/4A, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

610728-05-5417 6202579

650,000.00

50.00

 

 

 

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

------

 

 

 

1,300,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. GOH CHING CHIAN @ NGO CHING CHIAN

Address

:

LOT A27 (12A), JALAN MENARA U8/5, SEKSYEN U8, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

A2143557

New IC No

:

720214-04-5315

Date of Birth

:

14/02/1972

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

25/05/1999

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

Name Of Subject

:

MR. CHUA CHEE KOON

Address

:

40, JALAN USJ 4/4A, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

6202579

New IC No

:

610728-05-5417

Date of Birth

:

28/07/1961

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

25/05/1999

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHUA CHEE KOON

 

Position

:

DIRECTOR

                                

   

 

AUDITOR

 

Auditor

:

HALIM AHMAD & CO

Auditor' Address

:

UNIT 11-2, 3RD MILE SQUARE, 151, JALAN KLANG LAMA, BATU 3 1/2, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

                            

                            

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. MOHD HARRIS BIN ABU BAKAR

 

IC / PP No

:

6879026

 

New IC No

:

620927-07-5655

 

Address

:

9, JALAN RAMA-RAMA LIMA 20/2E SECTION 20, 40300 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING

 

Banking relations are maintained principally with :

1)

Name

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

2)

Name

:

EON 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

:

23/11/2004

Description Of Charge

:

N/A

 

Amount Secured

:

RM3,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

EON BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

19/03/2008

Description Of Charge

:

1ST PARTY CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

PM 3580 LOT 8984 MK KLANG, SELANGOR

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD
MENARA MULTI PURPOSE, CAPITAL SQUARE, 8 JALAN MUNSHI ABDULLAH, 29TH FLOOR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 24/03/2008

Registered and Numbered 2 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

05/03/2008

Description Of Charge

:

MEMORADUM OF DEPOSIT

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL SUMS OF MONEY IN CURRENCY WHICH ARE FROM TIME TO TIME DEPOSITED WITH BANK AT ANY BRANCH

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD
MENARA MULTI PURPOSE, CAPITAL SQUARE, 8, JALAN MUNSHI ABDULLAH, 29TH FLOOR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 03/04/2008

Registered and Numbered 3 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

22/01/2010

Description Of Charge

:

FACILITY AGREEMENT

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL ASSETS OF COMPANY

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD
MENARA MULTI PURPOSE, CAPITAL SQUARE, 8 JALAN MUNSHI ABDULLAH, 29TH FLOOR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 29/01/2010

Registered and Numbered 4 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

04/04/2011

Description Of Charge

:

FACILITY AGREEMENT

 

Amount Secured

:

N/A

Description Of Property Affected

:

FIRST PARTY LEGAL CHARGE

 

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD
ALLIANCE PARTNERSHIP, CSQ 2, COMMERCIAL BANKING, MENARA MULTI-PURPOSE, CAPITAL SQUARE, 8, JALAN MUNSHI ABDULLAH, 29TH FLOOR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 14/04/2011

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 6

Date of Creation

:

23/05/2012

Description Of Charge

:

MEMORANDUM DEPOSIT AND LETTER OF SET-OFF

 

Amount Secured

:

N/A

Description Of Property Affected

:

DEPOSIT RECEIPTS

 

Name & Address Of Chargee

:

CITIBANK BHD
MENARA CITIBANK, 165, JALAN AMPANG, 45TH FLOOR, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 20/06/2012

Registered and Numbered 6 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

:

N/A

Overseas

:

N/A

 

 

 


The SC refused to disclose its suppliers. 

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

Percentage

:

10%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

90%

Export Market

:

ASIA, EUROPE, AUSTRALIA

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



OPERATIONS

 

Goods Traded

:

CRUDE PALM OIL PRODUCTS

 

 

 

 

Competitor(s)

:

AMBROSIA SDN BHD
FELDA MARKETING SERVICES SDN BHD
PACIFIC OILS & FATS INDUSTRIES SDN BHD
PALMBASE (M) SDN BHD
SIME DARBY FUTURES TRADING SDN BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

OWNED

 

 

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

25

25

30

20

13

13

 

 

 

 

Branch

:

YES

 

No of Branches

:

1

 

 

 

 

 

Other Information:

The SC is principally engaged in the (as a / as an) trading of crude palm oil products.
The SC refused to disclose any information on its operation. 

 

PROJECTS


No projects found in our databank 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0331341995

Current Telephone Number

:

03-31341995

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 11771, JALAN IKAN MATA DUYONG, TELUK GONG,42000,PELABUHAN KLANG,SELANGOR.

Current Address

:

LOT 11771, JALAN IKAN MATA DUYONG, TELUK GONG, 42000 PELABUHAN KLANG, 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 ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

2007 - 2010

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2010

]

 

Return on Shareholder Funds

:

Favourable

[

33.62%

]

 

Return on Net Assets

:

Favourable

[

47.36%

]

 

 

 

 

 

 

 

 

The continuous fall in turnover could be due to the lower demand for the SC's products / services.The higher profit could be attributed to the increase in turnover. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

3 Days

]

 

Debtor Ratio

:

Acceptable

[

56 Days

]

 

Creditors Ratio

:

Favourable

[

20 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The SC's management was quite efficient in handling its debtors. The SC's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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

[

1.32 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

:

Acceptable

[

8.10 Times

]

 

Gearing Ratio

:

Unfavourable

[

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Due to the efficient control of its operating costs, the SC was able to remain profitable despite lower turnover achieved during the year. 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. 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's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the SC : STABLE

 

 

 

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

51212 : Wholesale of palm oil

 

 

INDUSTRY :

PALM OIL

 

 

 


Oil palm is one of the main drivers of Malaysia's agriculture sector where it has accounting for 71% of its agricultural land bank. Malaysia is the one of the biggest producers and exporters of palm oil prodcuts inthe growing global need for oils and fats. The palm oil industry is expected to grow about 7.1% over the next 10 years where it is driven by new plantation expansion, venture of large plantation companies into high potential downstream activities such as processed food, biodiesel, second generation biofuel and oleochemicals.


According to MPOB ( Malaysian Palm Oil Board ) statistics in May/June 2012,imports of processed palm oil continue to rise from 88,000 tonnes (May 2012) and 112,000 tonnes (June 2012).Due to the biological stress on oil palm trees and following by the bumper harvest in 2011, Oil production is expected to decline at the end of 2012. The number of palm oil mills in operation in the malaysia has increased from 53 (Dec 31, 2011) to 55 (second quarter 2012), with another 14 new mills at various stages of construction.


The outlook for the palm oil industry is bright, with its price range between RM3,100 and RM3,840 per tonne in first quarter 2012.This is equivalent to about 26.6 % of the global oils and fats trade. Furthemore, at the end of 2012, the demand and the price of palm oil are expected to be increased due to the adverse weather conditions of the production soy bean in South America is expected to be declined by 3 to 5% at the end of 2012. 


The unfreezing of India's base import price of refined palm olein is expected to cause insignificant impact to Malaysian refiners as they have already established other downstream markets for their refined crude palm oil (CPO) exports. Furthermore, Malaysia has produced 18.91 million tonnes or 37.65% of the total palm oil production on 2011 and it has accounted for 17.99 million tonnes or 46.27% of the world exports. 


Under the palm oil National Key Economic Areas (NKEAs) in 2011, the launches of the Oil Palm Replanting and New Planting Smallholders Schemes ware improved the smallholders agricultural practices in 2012.The oil extraction rate is set to improve to 21.05% in three-year from 2012 to low of 19.70% as 1.35 more. 


In driving speedier harvesting of oil palm fruits, the government has introduced the RM1,000 discount scheme to encourage the use of motorised sickle called Cantas and diamond blade sharpeners to enhance the palm oil industry. MPOB appointed 100 enforcement officers to visit mills to ensure the only good quality crops are processed. Since 2007, the palm oil industry has grown at an average of 14.5 per cent annualy until 2012. If the momentum is maitained for next 5 to 8 years, malaysia will achive its target of two million of hecters palm oil.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1999, the SC is a Private Limited company, focusing on trading of crude palm oil products. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. With a weak shareholders' backing, the SC's capital position is weak. Inadequate capital may be a constraint to the SC as it limits its ability to expand its business in future. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.


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 moderate commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. Being a small company, the SC's business operation is supported by 25 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


Despite the lower turnover, the SC's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. The high gearing ratio clearly implied that the SC was supported by more debt than equity. However, given a positive net worth standing at MYR 12,331,410, 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.


We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. With the promising outlook of the industry performance, the SC's business potential should be favourable. Nonetheless, the SC should adopt better competitive strategies in order to sustain its business position and to compete with other well established players in the same 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)

C.C. PALM TRADING 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

125,506,699

133,857,034

137,202,355

52,151,478

Other Income

1,159,413

546,352

-

-

 

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

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

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

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

Total Turnover

126,666,112

134,403,386

137,202,355

52,151,478

Costs of Goods Sold

<114,332,062>

<127,264,126>

-

-

 

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

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

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

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

Gross Profit

12,334,050

7,139,260

-

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

5,586,861

2,446,468

3,001,797

3,302,429

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

5,586,861

2,446,468

3,001,797

3,302,429

Taxation

<1,441,319>

<829,251>

<857,124>

<904,437>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

4,145,542

1,617,217

2,144,673

2,397,992

 

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

4,145,542

1,617,217

2,144,673

2,397,992

Extraordinary items

-

-

<222,000>

<252,000>

 

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

4,145,542

1,617,217

1,922,673

2,145,992

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

7,485,868

5,868,651

3,945,978

1,799,986

 

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

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

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

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

As restated

7,485,868

5,868,651

3,945,978

1,799,986

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

11,631,410

7,485,868

5,868,651

3,945,978

DIVIDENDS - Ordinary (paid & proposed)

<300,000>

-

-

-

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

11,331,410

7,485,868

5,868,651

3,945,978

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Hire purchase

22,372

22,863

16,789

4,002

Term loan / Borrowing

84,157

84,845

-

-

Others

680,574

275,200

-

-

 

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

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

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

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

 

787,103

382,908

16,789

4,002

 

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

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

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

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

 

 

 

BALANCE SHEET

 

 

C.C. PALM TRADING SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

3,756,060

3,758,659

3,778,005

1,200,664

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Investments

20,000

20,000

20,000

20,000

Others

267,954

267,954

267,954

-

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

287,954

287,954

287,954

20,000

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

4,044,014

4,046,613

4,065,959

1,220,664

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

1,123,326

1,608,189

3,063,051

1,365,395

Trade debtors

19,224,119

7,708,472

4,561,067

5,061,131

Other debtors, deposits & prepayments

3,732,202

242,625

356,808

893,487

Short term deposits

5,223,508

4,465,862

2,636,076

996,780

Cash & bank balances

6,083,468

2,137,867

4,035,866

899,414

 

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

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

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

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

TOTAL CURRENT ASSETS

35,386,623

16,163,015

14,652,868

9,216,207

 

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

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

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

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

TOTAL ASSET

39,430,637

20,209,628

18,718,827

10,436,871

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

6,414,451

43,197

2,226,495

-

Other creditors & accruals

192,907

273,687

434,425

1,641,493

Hire purchase & lease creditors

237,768

191,196

172,596

87,600

Bank overdraft

-

-

-

379,646

Short term borrowings/Term loans

17,859,000

6,080,253

299,608

-

Bill & acceptances payable

308,892

400,737

5,491,000

2,078,000

Amounts owing to related companies

473,606

473,606

473,606

473,606

Amounts owing to director

3,000

66,011

511,774

100,000

Provision for taxation

481,319

-

473,124

724,437

 

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

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

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

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

TOTAL CURRENT LIABILITIES

25,970,943

7,528,687

10,082,628

5,484,782

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

9,415,680

8,634,328

4,570,240

3,731,425

 

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

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

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

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

TOTAL NET ASSETS

13,459,694

12,680,941

8,636,199

4,952,089

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

1,000,000

1,000,000

1,000,000

700,000

 

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

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

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

1,000,000

700,000

 

 

 

 

 

RESERVES

 

 

 

 

Retained profit/(loss) carried forward

11,331,410

7,485,868

5,868,651

3,945,978

 

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

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

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

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

TOTAL RESERVES

11,331,410

7,485,868

5,868,651

3,945,978

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

12,331,410

8,485,868

6,868,651

4,645,978

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

822,551

954,225

1,270,116

-

Other long term borrowings

-

2,811,747

-

-

Hire purchase creditors

305,733

429,101

497,432

306,111

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,128,284

4,195,073

1,767,548

306,111

 

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

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

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

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

 

13,459,694

12,680,941

8,636,199

4,952,089

 

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

C.C. PALM TRADING SDN BHD

 

TYPES OF FUNDS

 

 

 

 

Cash

11,306,976

6,603,729

6,671,942

1,896,194

Net Liquid Funds

11,306,976

6,603,729

6,671,942

1,516,548

Net Liquid Assets

8,292,354

7,026,139

1,507,189

2,366,030

Net Current Assets/(Liabilities)

9,415,680

8,634,328

4,570,240

3,731,425

Net Tangible Assets

13,459,694

12,680,941

8,636,199

4,952,089

Net Monetary Assets

7,164,070

2,831,066

<260,359>

2,059,919

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

19,225,052

10,466,522

2,239,752

773,357

Total Liabilities

27,099,227

11,723,760

11,850,176

5,790,893

Total Assets

39,430,637

20,209,628

18,718,827

10,436,871

Net Assets

13,459,694

12,680,941

8,636,199

4,952,089

Net Assets Backing

12,331,410

8,485,868

6,868,651

4,645,978

Shareholders' Funds

12,331,410

8,485,868

6,868,651

4,645,978

Total Share Capital

1,000,000

1,000,000

1,000,000

700,000

Total Reserves

11,331,410

7,485,868

5,868,651

3,945,978

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.44

0.88

0.66

0.35

Liquid Ratio

1.32

1.93

1.15

1.43

Current Ratio

1.36

2.15

1.45

1.68

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

3

4

8

10

Debtors Ratio

56

21

12

35

Creditors Ratio

20

0

6

0

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

1.56

1.23

0.33

0.17

Liabilities Ratio

2.20

1.38

1.73

1.25

Times Interest Earned Ratio

8.10

7.39

179.80

826.19

Assets Backing Ratio

13.46

12.68

8.64

4.95

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

4.45

1.83

2.19

6.33

Net Profit Margin

3.30

1.21

1.56

4.60

Return On Net Assets

47.36

22.31

34.95

66.77

Return On Capital Employed

46.53

21.98

34.27

61.01

Return On Shareholders' Funds/Equity

33.62

19.06

31.22

51.61

Dividend Pay Out Ratio (Times)

0.07

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.95

UK Pound

1

Rs.88.42

Euro

1

Rs.71.71

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.