MIRA INFORM REPORT

 

 

Report Date :

18.12.2012

 

IDENTIFICATION DETAILS

 

Name :

IOI LODERS CROKLAAN OILS SDN. BHD.

 

 

Formerly Known As :

SOCTEK SDN BHD

 

 

Registered Office :

Two Ioi Square, Ioi Resort, Putrajaya,Malaysia, 62502 Putrajaya, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2011

 

 

Date of Incorporation :

25.04.1977

 

 

Com. Reg. No.:

32587-A

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturing (refining) & sale of palm oils & fats

 

 

No. of Employees :

350 [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 :

Good

Payment Behaviour :

Regular

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.

:

32587-A

COMPANY NAME

:

IOI LODERS CROKLAAN OILS SDN. BHD.

FORMER NAME

:

SOCTEK SDN BHD (07/10/2004)

INCORPORATION DATE

:

25/04/1977

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

TWO IOI SQUARE, IOI RESORT, PUTRAJAYA,MALAYSIA, 62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

PLO 8 & 9, JALAN TIMAH PASIR GUDANG INDUSTRIAL ESTATE, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-3818888

FAX.NO.

:

07-2511798

WEB SITE

:

www.croklaan.com

CONTACT PERSON

:

CHAN CHONG CHER ( ASSISTANT GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

15142

PRINCIPAL ACTIVITY

:

MANUFACTURING (REFINING) & SALE OF PALM OILS & FATS

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO 
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 20,000,000.00 DIVIDED INTO 
ORDINARY SHARES 20,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 1,483,051,395 [2011]

NET WORTH

:

MYR 261,737,978 [2011]

M1000 OVERALL RANKING

:

290[2011]

M1000 INDUSTRY RANKING

:

12[2011]

 

 

 

STAFF STRENGTH

:

350 [2012]

BANKER (S)

:

CIMB BANK BHD
CITIBANK BHD
DEUTSCHE BANK (MALAYSIA) BHD
HSBC BANK MALAYSIA BHD
STANDARD CHARTERED BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

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) manufacturing (refining) & sale of palm oils & fats.

 

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

 

OVERALL RANKING

290

432

458

 

INDUSTRY RANKING

12

12

8

 

 

The immediate holding company of the SC is LODERS CROKLAAN GROUP B.V., a company incorporated in NETHERLANDS.

 

The ultimate holding company of the SC is IOI CORPORATION BHD, a company incorporated in MALAYSIA.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

LODERS CROKLAAN GROUP B.V.

 

XLZ000020445

20,000,000.00

100.00

 

 

 

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

------

 

 

 

20,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. LEE YEOW SENG

Address

:

NO. 8, LINGKARAN 3, DIAMOND HILL, IOI RESORT, 62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

781223-14-5501

Date of Birth

:

23/12/1978

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

25/06/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

TAN SRI DATO' LEE YEOW CHOR @ LEE LEONG

Address

:

6,JALAN BAVERLY UTAMA, IOI RESORT

 

 

 

New IC No

:

661129-10-5443

Date of Birth

:

29/11/1966

 

 

 

 

 

 

Date of Appointment

:

22/07/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MICHAEL MARTIN ROGER VAN SALLANDT

Address

:

NO. 10, JALAN TEGAP 11, TAMAN GAYA, ULU TIRAM, 81800 ULU TIRAM, JOHOR, MALAYSIA.

IC / PP No

:

NU4BKHK12

 

 

 

Date of Birth

:

17/07/1964

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/07/2012

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHAN CHONG CHER

 

Position

:

ASSISTANT GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

LEE YEOW CHOR

 

Position

:

EXECUTIVE DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

SANDER, FREDRINKS

 

Position

:

GENERAL MANAGER

 

 

 

 

 

4)

Name of Subject

:

LIM TECK GUAN

 

Position

:

GENERAL MANAGER

 

 

 

 

 

5)

Name of Subject

:

PATRICIA EE

 

Position

:

FINANCIAL CONTROLLER

 

 

 

 

 

6)

Name of Subject

:

ZULIDHAM

 

Position

:

ASSISTANT HUMAN RESOURCE MANAGER

 

 

 

 

 

7)

Name of Subject

:

U.R SHAHASRANAMAM

 

Position

:

CHIEF OPERATING OFFICER

 

 

 

AUDITOR

 

Auditor

:

BDO

Auditor' Address

:

MENARA UNI ASIA, 1008, JALAN SULTAN ISMAIL, 12TH FLOOR, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

                              

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LEE AI LENG

 

 

 

 

 

New IC No

:

651116-05-5038

 

Address

:

NO.3,JALAN BK 6B/13, BANDAR KINRARA, 47180 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MR. TAN CHOONG KHIANG

 

 

 

 

 

New IC No

:

701016-07-5317

 

Address

:

7 JALAN PUJ 2/28, TAMAN PUNCAK JALIL, BANDAR PUTRA PERMAI, 43300 BALAKONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

2)

Name

:

CITIBANK BHD

 

 

 

 

 

3)

Name

:

DEUTSCHE BANK (MALAYSIA) BHD

 

 

 

 

 

4)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

5)

Name

:

STANDARD CHARTERED BANK MALAYSIA 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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

 Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

EUROPE, ASIA

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

 Products manufactured

:

PALM OIL PRODUCTS

 

 

 

Competitor(s)

:

CAROTECH BHD

GENTING SDC SDN BHD

KECK SENG (MALAYSIA) BHD

PROSPER PALM OIL MILL SDN BHD

UNITATA BHD

 

 

 

Ownership of premises

:

OWNED

 

Total Number of Employees:

YEAR

2012

2011

 

GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

350

490

 

 

 

 

 

 

 

 

Branch

:

YES

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing (refining) & sale of palm oils & fats.

We were informed that the SC is under the IOI Group of Companies.

The SC produces palm based specialty fats and fractions to the food industry.

The SC utilises the advanced automated and semi-automated machineries to ensure production of high quality products.

PROJECTS


No projects found in our databank 

RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA) database, but no latest development was noted in our investigation.

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

072511716

Current Telephone Number

:

07-3818888

Match

:

NO

 

 

 

Address Provided by Client

:

PLO 8 & 9, JALAN TIMAH PASIR GUDANG INDUSTRIAL ESTATE,81700,PASIR GUDANG,JOHOR.

Current Address

:

PLO 8 & 9, JALAN TIMAH 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 Accounts Department. She provided some information on the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

14.59%

]

 

Return on Net Assets

:

Acceptable

[

20.34%

]

 

 

 

 

 

 

 

 

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

[

46 Days

]

 

Debtor Ratio

:

Favourable

[

18 Days

]

 

Creditors Ratio

:

Favourable

[

10 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Acceptable

[

0.90 Times

]

 

Current Ratio

:

Unfavourable

[

1.80 Times

]

 

 

 

 

 

 

 

 

The SC's liquid ratio was slightly low. This could indicate that the SC's working capital was slightly deficient. The SC will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

28.90 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 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 had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. The SC's liquidity was at an acceptable range. If the SC is able to obtain further short term financing, it should be able to meet all 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 was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the SC : 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

15142 : Manufacture of crude 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 1977, the SC is a Private Limited company, focusing on manufacturing (refining) & sale of palm oils & fats. The SC has been in business for over three 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. 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.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. The SC is a fairly large and rapidly growing company with over 350 staff in its operations Overall, we regard that the SC's management capability is average.


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. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 261,737,978, the SC should be able to maintain its business in the near terms.


The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.


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. Hence, the SC is expected to benefit from the favourable outlook of the industry.


In view of the above favourable 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)

IOI LODERS CROKLAAN OILS SDN. BHD.

 

Financial Year End

30/06/2011

30/06/2010

30/06/2009

30/06/2008

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

1,483,051,395

1,086,893,066

1,278,257,013

1,339,629,330

 

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

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

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

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

Total Turnover

1,483,051,395

1,086,893,066

1,278,257,013

1,339,629,330

Costs of Goods Sold

<1,392,522,294>

<948,266,525>

<1,171,636,150>

<1,193,003,095>

 

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

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

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

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

Gross Profit

90,529,101

138,626,541

106,620,863

146,626,235

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

54,387,215

81,516,012

53,868,297

81,773,848

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

54,387,215

81,516,012

53,868,297

81,773,848

Taxation

<16,206,243>

<17,673,971>

<12,372,329>

<1,092,294>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

38,180,972

63,842,041

41,495,968

80,681,554

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

186,945,437

141,791,216

99,843,029

18,986,808

Prior year adjustment

7,685,678

-

-

-

 

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

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

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

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

As restated

194,631,115

141,791,216

99,843,029

18,986,808

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

232,812,087

205,633,257

141,338,997

99,668,362

- General

-

1,312,180

452,219

174,667

DIVIDENDS - Ordinary (paid & proposed)

<18,976,494>

<20,000,000>

-

-

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

213,835,593

186,945,437

141,791,216

99,843,029

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Loan from holding company

897,252

1,000,759

-

-

Term loan / Borrowing

396,826

-

-

-

Others

655,457

568,793

5,983,014

7,651,210

 

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

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

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

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

 

1,949,535

1,569,552

5,983,014

7,651,210

 

 

 

BALANCE SHEET

 

 

IOI LODERS CROKLAAN OILS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

105,229,956

105,601,753

109,914,028

111,665,029

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Subsidiary companies

6,000,000

6,000,000

6,000,000

6,000,000

Deferred assets

-

-

2,775,820

15,044,886

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

6,000,000

6,000,000

8,775,820

21,044,886

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

111,229,956

111,601,753

118,689,848

132,709,915

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

185,781,451

151,870,238

141,499,362

188,291,407

Trade debtors

72,985,064

64,836,358

78,130,518

102,245,013

Other debtors, deposits & prepayments

5,747,210

8,780,879

1,358,214

10,340,396

Short term deposits

10,623,697

34,466,239

13,001,970

27,560,820

Amount due from related companies

40,830,578

27,329,682

25,219,216

37,700,759

Cash & bank balances

42,577,017

3,183,415

24,432,820

8,368,668

Others

13,761,536

-

-

-

 

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

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

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

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

TOTAL CURRENT ASSETS

372,306,553

290,466,811

283,642,100

374,507,063

 

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

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

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

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

TOTAL ASSET

483,536,509

402,068,564

402,331,948

507,216,978

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

38,552,242

40,728,588

27,070,452

40,416,753

Other creditors & accruals

26,523,777

30,211,681

33,327,999

36,476,111

Bill & acceptances payable

50,000,000

-

-

-

Amounts owing to holding company

55,897,914

55,107,221

-

-

Amounts owing to subsidiary companies

12,855,963

12,861,272

12,889,329

12,894,840

Amounts owing to related companies

7,860,548

13,085,205

13,820,866

16,508,452

Provision for taxation

1,846,973

121,669

24,315

43,064

Other liabilities

13,019,926

-

46,980,793

135,297,687

 

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

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

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

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

TOTAL CURRENT LIABILITIES

206,557,343

152,115,636

134,113,754

241,636,907

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

165,749,210

138,351,175

149,528,346

132,870,156

 

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

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

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

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

TOTAL NET ASSETS

276,979,166

249,952,928

268,218,194

265,580,071

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

20,000,000

20,000,000

20,000,000

20,000,000

 

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

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

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

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

TOTAL SHARE CAPITAL

20,000,000

20,000,000

20,000,000

20,000,000

 

 

 

 

 

RESERVES

 

 

 

 

Revaluation reserve

21,902,385

21,902,385

23,128,293

23,493,629

General reserve

6,000,000

6,000,000

6,000,000

6,000,000

Retained profit/(loss) carried forward

213,835,593

186,945,437

141,791,216

99,843,029

 

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

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

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

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

TOTAL RESERVES

241,737,978

214,847,822

170,919,509

129,336,658

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

261,737,978

234,847,822

190,919,509

149,336,658

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Deferred taxation

11,836,996

11,904,879

-

-

Retirement benefits provision

3,404,192

3,200,227

2,643,847

2,411,719

Others

-

-

74,654,838

113,831,694

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

15,241,188

15,105,106

77,298,685

116,243,413

 

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

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

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

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

 

276,979,166

249,952,928

268,218,194

265,580,071

 

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

IOI LODERS CROKLAAN OILS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

Cash

53,200,714

37,649,654

37,434,790

35,929,488

Net Liquid Funds

53,200,714

37,649,654

37,434,790

35,929,488

Net Liquid Assets

<20,032,241>

<13,519,063>

8,028,984

<55,421,251>

Net Current Assets/(Liabilities)

165,749,210

138,351,175

149,528,346

132,870,156

Net Tangible Assets

276,979,166

249,952,928

268,218,194

265,580,071

Net Monetary Assets

<35,273,429>

<28,624,169>

<69,269,701>

<171,664,664>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

0

0

0

0

Total Liabilities

221,798,531

167,220,742

211,412,439

357,880,320

Total Assets

483,536,509

402,068,564

402,331,948

507,216,978

Net Assets

276,979,166

249,952,928

268,218,194

265,580,071

Net Assets Backing

261,737,978

234,847,822

190,919,509

149,336,658

Shareholders' Funds

261,737,978

234,847,822

190,919,509

149,336,658

Total Share Capital

20,000,000

20,000,000

20,000,000

20,000,000

Total Reserves

241,737,978

214,847,822

170,919,509

129,336,658

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.26

0.25

0.28

0.15

Liquid Ratio

0.90

0.91

1.06

0.77

Current Ratio

1.80

1.91

2.11

1.55

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

46

51

40

51

Debtors Ratio

18

22

22

28

Creditors Ratio

10

16

8

12

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

Liabilities Ratio

0.85

0.71

1.11

2.40

Times Interest Earned Ratio

28.90

52.94

10.00

11.69

Assets Backing Ratio

13.85

12.50

13.41

13.28

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

3.67

7.50

4.21

6.10

Net Profit Margin

2.57

5.87

3.25

6.02

Return On Net Assets

20.34

33.24

22.31

33.67

Return On Capital Employed

20.34

33.24

22.31

33.67

Return On Shareholders' Funds/Equity

14.59

27.18

21.73

54.03

Dividend Pay Out Ratio (Times)

0.50

0.31

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0






 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.63

UK Pound

1

Rs.88.40

Euro

1

Rs.71.86

 

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.