MIRA INFORM REPORT

 

 

Report Date :

08.12.2012

 

IDENTIFICATION DETAILS

 

Name :

PETRONAS BASE OIL (M) SDN BHD

 

 

Registered Office :

Tower 1, Petronas Twin Towers, Kuala Lumpur City Centre, 50088 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

01.09.2006

 

 

Com. Reg. No.:

745973-D

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Formulation and distribution of lubricants, bulk breaking storage for domestic and international

 

 

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.

:

745973-D

COMPANY NAME

:

PETRONAS BASE OIL (M) SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

01/09/2006

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

REGISTERED ADDRESS

:

TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

PETRONAS TWIN TOWERS, TOWER 2, LEVEL 73, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-20515000 / 20265000

FAX.NO.

:

03-20265050 / 5055

WEB SITE

:

www.petronas.com.my

CONTACT PERSON

:

JOSEPH BROADDUS ( CEO )

 

 

 

INDUSTRY CODE

:

51411

PRINCIPAL ACTIVITY

:

FORMULATION AND DISTRIBUTION OF LUBRICANTS, BULK BREAKING STORAGE FOR DOMESTIC AND INTERNATIONAL

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARE 900.00 OF MYR 1,000.00 EACH.
PREFERENCE SHARE 1,000.00 OF MYR 100.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARES 900 CASH OF MYR 1,000.00 EACH.
PREFERENCE SHARES 1,000 CASH OF MYR 100.00 EACH.

 

 

 

SALES

:

MYR 756,701,000 [2011]

NET WORTH

:

MYR 61,392,000 [2011]

 

 

 

STAFF STRENGTH

:

25 [2012]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

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) formulation and distribution of lubricants, bulk breaking storage for domestic and international.

 

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

 

The immediate holding company of the SC is PETROLIAM NASIONAL BHD, a company incorporated in MALAYSIA.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

PETROLIAM NASIONAL BHD
[ORD 900 & PREF 1,000]

TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

20076

1,900.00

100.00

 

 

 

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

------

 

 

 

1,900.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

JOSEPH BROADDUS ROUSMANIERE

Address

:

MAPLE SUITE APARTMENT 2209, 1, CHANGKAT RAJA CHULAN, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

P135394140

 

 

 

Date of Birth

:

20/08/1950

 

 

 

Nationality

:

AMERICAN

 

DIRECTOR 2

 

Name Of Subject

:

MR. AMIR HAMZAH BIN AZIZAN

Address

:

11, SERENE KIARA, JALAN SERENE KIARA 3, DESA SRI HARTAMAS, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A0825717

New IC No

:

670413-07-5573

Date of Birth

:

13/04/1967

 

 

 

Nationality

:

MALAYSIAN MALAY

 

DIRECTOR 3

 

Name Of Subject

:

MS. FREIDA BTE AMAT

Address

:

20, JALAN 22/57, 46300 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A1265360

New IC No

:

690506-10-6162

Date of Birth

:

06/05/1969

 

 

 

Nationality

:

MALAYSIAN MALAY

 

DIRECTOR 4

 

Name Of Subject

:

MR. MOHD SHOBRI BIN A BAKAR

Address

:

11A, JALAN SS 19/1F, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

6072538

New IC No

:

601208-02-5463

Date of Birth

:

08/12/1960

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

02/08/2010

 

 

MANAGEMENT

 

1)

Name of Subject

:

JOSEPH BROADDUS

 

Position

:

CEO

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

KPMG TOWER 8, FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SHERENE LEE PHAIK TIN

 

IC / PP No

:

A3648529

 

New IC No

:

770317-01-6088

 

Address

:

A-3A-6, MONT KIARA SOPHIA, JALAN KIARA 1, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

                                  

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

                  

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation. 

 

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank. 

No winding up petition was found in our databank. 

DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. 


No blacklisted record & debt collection case was found in our defaulters' databank. 

 

PAYMENT RECORD

 

SOURCES OF RAW MATERIALS:

Local

:

YES

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

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

 

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

WORLDWIDE

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

LUBRICANTS

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2012

2011

 

 

GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

25

25

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) formulation and distribution of lubricants, bulk breaking storage for domestic and international.


The SC is a wholly-owned subsidiary of PETRONAS, the national oil company of Malaysia. 


The SC is the marketing arm for the PETRONAS Group.


PETRONAS superior quality group III base oil is marketed under the ETRO brand name. The combination of high viscosity index (>130) and low noack (<15 wt%) makes ETRO one of the highest quality group III base oils in the world, ideal for use in top-tier automotive and industrial lubricant formulation.


ETRO base oils will be marketed through the SC which is supported by a team of capable technical services engineers and sale & supply chain professionals.


Sales worldwide are handled directly by a team of PETRONAS' sales professionals through end-to end supply chain network and supported by a team of industry-leading technical experts. Distribution channels are set up to cater for global distribution, with terminals in Asia Pacific, Europe and Americas. 

 

 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-20515000 / 20265000

Match

:

N/A

 

 

 

Address Provided by Client

:

LEVEL 73, TOWER 2, PETRONAS TWIN TOWERS KLCC, 50088 KUALA LUMPUR

Current Address

:

PETRONAS TWIN TOWERS, TOWER 2, LEVEL 73, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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

:

Erratic

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Favourable

[

77.54%

]

 

Return on Net Assets

:

Favourable

[

85.24%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Nil

[

0 Days

]

 

Debtor Ratio

:

Unfavourable

[

71 Days

]

 

Creditors Ratio

:

Favourable

[

53 Days

]

 

 

 

 

 

 

 

 

As the SC is a service oriented company, the SC does not need to keep stocks. The high debtors' ratio could indicate that the SC was weak in its credit control. However, the SC could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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

[

1.24 Times

]

 

Current Ratio

:

Unfavourable

[

1.24 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

[

30.55 Times

]

 

Gearing Ratio

:

Favourable

[

0.52 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 :

 

 

 

 

 

 

Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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 : 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

 

51411 : Wholesale of petrol, diesel, lubricants, etc.

 

 

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 2006, the SC is a Private Limited company, focusing on formulation and distribution of lubricants, bulk breaking storage for domestic and international. Having been in business for more than 5 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. Having a strong shareholders' backing , the SC has the advantage to compete with its rivals and it is expected to enjoy timely financial assistance should the needs arise. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.


Our investigation revealed that the SC serves both local and overseas clients. Penetrating into the overseas countries has well diversified its business risk and at the same time added strength to its capabilities in capturing higher market shares. 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. 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 61,392,000, 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's raw materials are sourced from both local and overseas suppliers. Hence, the SC is subjected to currency fluctuation risk. Overall the SC has a good control over its resources.


Based on our historical financial data, the SC's payment is average. The SC should be able to meet its small and medium commitments.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. With the SC's favourable conditions, it should have acquired competitive edge from its competitors. 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)

PETRONAS BASE OIL (M) SDN BHD

 

Financial Year End

31/12/2011

31/03/2011

31/03/2010

31/03/2009

31/03/2008

Months

9

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

756,701,000

764,930,000

426,401,000

120,515,000

-

 

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

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

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

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

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

Total Turnover

756,701,000

764,930,000

426,401,000

120,515,000

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

50,617,000

16,824,000

3,454,000

<15,795,000>

<9,515,000>

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

50,617,000

16,824,000

3,454,000

<15,795,000>

<9,515,000>

Taxation

<3,016,000>

<1,033,000>

2,966,000

510,000

-

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

47,601,000

15,791,000

6,420,000

<15,285,000>

<9,515,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

<9,076,000>

<24,867,000>

<31,287,000>

<16,002,000>

<6,487,000>

 

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

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

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

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

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

As restated

<9,076,000>

<24,867,000>

<31,287,000>

<16,002,000>

<6,487,000>

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

38,525,000

<9,076,000>

<24,867,000>

<31,287,000>

<16,002,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

38,525,000

<9,076,000>

<24,867,000>

<31,287,000>

<16,002,000>

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

1,713,000

3,378,000

4,560

2,040,000

-

 

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

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

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

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

 

 

1,713,000

3,378,000

4,560

2,040,000

 

 

BALANCE SHEET

 

PETRONAS BASE OIL (M) SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

377,000

514,000

696,000

871,000

18,000

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Subsidiary companies

24,494,000

24,494,000

24,494,000

94,000

94,000

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

24,494,000

24,494,000

24,494,000

94,000

94,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

24,871,000

25,008,000

25,190,000

965,000

112,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

-

-

-

2,324,000

-

Trade debtors

147,379,000

112,625,000

23,954,000

11,083,000

-

Other debtors, deposits & prepayments

113,000

171,000

74,000

6,527,000

-

Short term deposits

27,861,000

28,464,000

42,853,000

5,000,000

-

Amount due from holding company

-

2,000

2,100,000

923,000

2,000

Amount due from subsidiary companies

8,792,000

9,604,000

34,257,000

60,246,000

293,000

Amount due from related companies

1,250,000

1,837,000

19,986,000

44,909,000

-

Cash & bank balances

609,000

166,000

86,000

12,825,000

-

Others

-

881,000

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

186,004,000

153,750,000

123,310,000

143,837,000

295,000

 

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

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

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

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

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

TOTAL ASSET

210,875,000

178,758,000

148,500,000

144,802,000

407,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

108,954,000

83,532,000

-

-

-

Other creditors & accruals

5,558,000

2,280,000

746,000

4,426,000

-

Short term borrowings/Term loans

32,131,000

23,295,000

32,532,000

-

-

Amounts owing to holding company

717,000

143,000

54,000

10,705,000

16,407,000

Amounts owing to subsidiary companies

86,000

-

237,000

-

-

Amounts owing to related companies

230,000

270,000

51,083,000

82,361,000

-

Provision for taxation

228,000

-

-

-

-

Other liabilities

1,579,000

-

-

66,000

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

149,483,000

109,520,000

84,652,000

97,558,000

16,407,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

36,521,000

44,230,000

38,658,000

46,279,000

<16,112,000>

 

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

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

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

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

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

TOTAL NET ASSETS

61,392,000

69,238,000

63,848,000

47,244,000

<16,000,000>

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

21,000,000

21,000,000

1,000,000

1,000,000

2,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

21,000,000

21,000,000

1,000,000

1,000,000

2,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

-

-

20,000,000

20,000,000

-

Retained profit/(loss) carried forward

38,525,000

<9,076,000>

<24,867,000>

<31,287,000>

<16,002,000>

Others

1,867,000

9,350,000

11,362,000

8,378,000

-

 

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

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

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

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

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

TOTAL RESERVES

40,392,000

274,000

6,495,000

<2,909,000>

<16,002,000>

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

61,392,000

21,274,000

7,495,000

<1,909,000>

<16,000,000>

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

-

47,964,000

56,353,000

46,870,000

-

Deferred taxation

-

-

-

2,283,000

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

47,964,000

56,353,000

49,153,000

-

 

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

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

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

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

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

 

61,392,000

69,238,000

63,848,000

47,244,000

<16,000,000>

 

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

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

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

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

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

                                                                                                                                  

 

FINANCIAL RATIO

 

PETRONAS BASE OIL (M) SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

28,470,000

28,630,000

42,939,000

17,825,000

0

Net Liquid Funds

28,470,000

28,630,000

42,939,000

17,825,000

0

Net Liquid Assets

36,521,000

44,230,000

38,658,000

43,955,000

<16,112,000>

Net Current Assets/(Liabilities)

36,521,000

44,230,000

38,658,000

46,279,000

<16,112,000>

Net Tangible Assets

61,392,000

69,238,000

63,848,000

47,244,000

<16,000,000>

Net Monetary Assets

36,521,000

<3,734,000>

<17,695,000>

<5,198,000>

<16,112,000>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

32,131,000

71,259,000

88,885,000

46,870,000

0

Total Liabilities

149,483,000

157,484,000

141,005,000

146,711,000

16,407,000

Total Assets

210,875,000

178,758,000

148,500,000

144,802,000

407,000

Net Assets

61,392,000

69,238,000

63,848,000

47,244,000

<16,000,000>

Net Assets Backing

61,392,000

21,274,000

7,495,000

<1,909,000>

<16,000,000>

Shareholders' Funds

61,392,000

21,274,000

7,495,000

<1,909,000>

<16,000,000>

Total Share Capital

21,000,000

21,000,000

1,000,000

1,000,000

2,000

Total Reserves

40,392,000

274,000

6,495,000

<2,909,000>

<16,002,000>

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.19

0.26

0.51

0.18

0.00

Liquid Ratio

1.24

1.40

1.46

1.45

0.02

Current Ratio

1.24

1.40

1.46

1.47

0.02

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

0

0

0

7

0

Debtors Ratio

71

54

21

34

0

Creditors Ratio

53

40

0

0

0

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.52

3.35

11.86

<24.55>

0.00

Liabilities Ratio

2.43

7.40

18.81

<76.85>

<1.03>

Times Interest Earned Ratio

30.55

5.98

758.46

<6.74>

0.00

Assets Backing Ratio

32,311.58

36,441.05

33,604.21

24,865.26

<8,421.05>

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

6.69

2.20

0.81

<13.11>

0.00

Net Profit Margin

6.29

2.06

1.51

<12.68>

0.00

Return On Net Assets

85.24

29.18

5.42

<29.11>

59.47

Return On Capital Employed

85.24

29.18

5.42

<29.11>

59.47

Return On Shareholders' Funds/Equity

77.54

74.23

85.66

800.68

59.47

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.20

UK Pound

1

Rs.86.99

Euro

1

Rs.70.22

 

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.