MIRA INFORM REPORT

 

 

Report Date :

06.07.2012

 

 

 

Tel. No.:

+60333249852 & 33243536

Fax No.:

+603 3324 9851

 

IDENTIFICATION DETAILS

 

Name :

TIMUR NETWORK SDN BHD

 

 

Registered Office :

656, Jalan Poh, 3rd Floor, 51200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2011

 

 

Date of Incorporation :

07.08.2001

 

 

Com. Reg. No.:

555535-X

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trading of palm oil & oleo chemical product

 

 

No. of Employees :

10

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


* Adopted abbreviations :            SC - Subject Company (the company enquired by you), N/A - Not Applicable         

                                                                                                                                     

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

555535-X

COMPANY NAME

:

TIMUR NETWORK SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/08/2001

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

656, JALAN POH, 3RD FLOOR, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

26, LORONG BAYU TINGGI 1B/KS6, BATU UNJUR, 41200 KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-33249852

FAX.NO.

:

03-33249851

EMAIL

:

sales@timurnetwork.com 

WEB SITE

:

www.timurnetwork.com

CONTACT PERSON

:

RAVEENDRA KUMAR ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

51212

PRINCIPAL ACTIVITY

:

TRADING OF PALM OIL & OLEO CHEMICAL PRODUCT

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARES 400,002 CASH AND 99,998 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 30,461,809 [2011]

NET WORTH

:

MYR 1,135,509 [2011]

 

 

 

STAFF STRENGTH

:

10 [2012]

BANKER (S)

 

RHB BANK BHD

 

 

 

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

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) trading of palm oil & oleo chemical product.

 

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

(%)

MS. KALADEVI A/P NADARAJAH +

132, TAMAN INDAH, JALAN TUNKKU KURSHIAH, 70400 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

711105-05-5106 A2027010

290,000.00

58.00

MR. RAVEENDRA KUMAR A/L P KANDASAMY +

60, JALAN MELIKAI 44, PORT GARDEN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

700904-05-5205 A1627400

210,000.00

42.00

 

 

 

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

------

 

 

 

500,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. RAVEENDRA KUMAR A/L P KANDASAMY

Address

:

60, JALAN MELIKAI 44, PORT GARDEN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

A1627400

New IC No

:

700904-05-5205

Date of Birth

:

04/09/1970

 

 

 

Nationality

:

MALAYSIAN INDIAN

Date of Appointment

:

09/08/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. KALADEVI A/P NADARAJAH

Address

:

132, TAMAN INDAH, JALAN TUNKKU KURSHIAH, 70400 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

IC / PP No

:

A2027010

New IC No

:

711105-05-5106

Date of Birth

:

05/11/1971

 

 

 

Nationality

:

MALAYSIAN INDIAN

Date of Appointment

:

07/08/2001

 

 

 

 

 

 

 

 

 

 

 

 


MANAGEMENT

 

 

 

1)

Name of Subject

:

RAVEENDRA KUMAR

 

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

GUNALAN & ASSOCIATES

Auditor' Address

:

654, 4TH MILE, JALAN IPOH, 3RD FLOOR, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

                              

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. MOGAN S/O SUBRAMANIAM

 

IC / PP No

:

A2110970

 

New IC No

:

720202-02-5587

 

Address

:

A-15-2, VILLA ANGSANA CONDO 52, JALAN KERIAN OFF JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

   

                                     

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

RHB BANK BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

 

 

ENCUMBRANCE (S)


ENCUMBRANCE 1

Date of Creation

:

24/08/2005

Description Of Charge

:

1ST PARTY 1ST LEGAL CHARGE

 

Amount Secured

:

RM440,000.00

Description Of Property Affected

:

3 STOREY SHOPOFFICE KNOWN AS LOT 69674 MEASURING AN AREA OF APPROXIMATELY 1,496 SQ FEET HELD UNDER HSD 96840 PT 69674, KLANG SELANGOR FORMING PART OF THE HOUSING DEVELOPMENT KNOWN TAIPAN 2

 

Name & Address Of Chargee

:

RHB BANK BHD
PERSIARAN RAJA MUDA MUSA, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 17/06/2005

Registered and Numbered 1 In The Register of Charges



LEGAL CHECK AGAINST SC


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

No legal action was found in our databank. 

No winding up petition was found in our databank. 

DEFAULTER CHECK AGAINST SC


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

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

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

PAKISTAN,INDIA,NEPAL



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

:

ASIA, MIDDLE EAST

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

PALM OIL

 

 

 

 

Competitor(s)

:

AMBROSIA SDN BHD
CARGILL SPECIALTY OILS & FATS SDN BHD
FELDA IFFCO TRADING SDN BHD
MITSHUBISHI CORPORATION
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

10

10

10

7

3

3

 

 

 

 

Branch

:

NO

 

 

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of palm oil & oleo chemical product.

The SC is a a leading import and export company of products that are related to palm such as fatty acid, fatty alcohol, soap noodles, PFAD, PKFAD, olein etc.

The SC's products include:

* Oleochemicals - Fatty acid, distilled/hydrogenated/stripped palm, palm kernel & coconut fatty acid and etc.

* Soap & Toiletries - Toiletry soap bars 80gm opaque/translucent, branded soap, shampoo & cosmetics ingredient and etc.

* Detergent Chemicals - LABSA-linear alkyl benzene sulphonic acid, SLS needles/SLES, caustic soda flakes & solid(NaOH) etc.

* Food Additives - Glyceryl/mono stearate (40 & 50SE), lecithin (fluid) as food emulsifier - chocolates, biscuits, etc., alkalized cocoo powder , decicated coconut fine, coconut cream powder, shopping plastic T - collar bags.

* Food - Lecithin granules, cocoa butter (natural/ deoderised), cocoa butter/ powder (alkalised).


PROJECTS


No projects found in our databank 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

60333249852 & 33243536

Current Telephone Number

:

03-33249852

Match

:

YES

 

 

 

Address Provided by Client

:

26, LORONG BAYU TINGGI 1B/KS6, BATU UNJUR,41200,KLANG,SELANGOR.

Current Address

:

26, LORONG BAYU TINGGI 1B/KS6, BATU UNJUR, 41200 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

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

8.40%

]

 

Return on Net Assets

:

Acceptable

[

12.17%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC's management have been efficient in controlling its operating costs. The unfavourable return on shareholders' funds and net assets could indicate that the SC's management was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

1 Days

]

 

Debtor Ratio

:

Favourable

[

47 Days

]

 

Creditors Ratio

:

Favourable

[

49 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

[

0.96 Times

]

 

Current Ratio

:

Unfavourable

[

0.97 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

:

Acceptable

[

4.78 Times

]

 

Gearing Ratio

:

Unfavourable

[

1.07 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 :

 

 

 

 

 

 

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'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. 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 : 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

51212 : Wholesale of palm oil

 

 

INDUSTRY :

PALM OIL

 

 

 


Palm oil output in Malaysia will increase only modestly in 2012 after a year of record crop yields, while rising crude-oil prices, and greater demand will lift benchmark prices. Palm oil production in Malaysia could rise by 1 million metric tons to 19.3 million tons in 2012


The launches of the Oil Palm Replanting and New Planting Smallholders Schemes under the palm oil National Key Economic Areas (NKEAs) is expected to increase total oil palm cultivated areas to 5.1 million hectares in 2011.


Malaysia's palm oil exports for the year 2011 is set to hit an all-time record of RM80 billion due to higher average palm oil prices and sustained demand for the edible oil from emerging economies.


Value-added of the oil palm sector rose 7.6% during the first half of 2011 following higher production of crude palm oil (CPO). Production of CPO surged 8.2% to 12 million tonnes during the first eight months of 2011 on account of increased fresh fruit bunches yield per hectare and matured areas in Sabah and Sarawak. 


However, the oil extraction rate contracted marginally to 20.26% during the first half of the year 2011 due to lower yields from new matured areas and heavy rainfall in the early part of the year.


Meanwhile, palm oil inventory stood at 1.88 million tonnes as at end-August 2011, following stronger-than-expected production and higher imports. On a year-on-year basis, the inventory level increased by 10.2%. Despite the higher stock level, CPO prices strengthened to average RM3,356 per tonne during the first eight month of 2011 due to sustained demand and strong soyabean prices. The CPO prices are expected to have an average of RM3,200 per tonne in 2011.


Oil palm is one of the main drivers of Malaysia's agriculture sector, accounting for 71% of its agricultural land bank. The palm oil industry is forecast to grow 7.1% over the next 10 years, driven by new plantation expansion as well as venture of large plantation companies into high potential downstream activities such as processed food, biodiesel, second generation biofuel and oleochemicals.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 


CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 2001, the SC is a Private Limited company, focusing on trading of palm oil & oleo chemical product. 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. The SC is considered as a small size company with issued and paid up capital standing at RM500,000. Under the control of its directors, we considered that the SC's business position is much dependent on their efforts. 


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. Being a small company, the SC's business operation is supported by 10 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. However, the SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. The high gearing ratio clearly implied that the SC was supported by more debt than equity. Thus, the SC is exposed to high financial risk. Given a positive net worth standing at MYR 1,135,509, 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.


The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.


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.


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

 


PROFIT AND LOSS ACCOUNT

 

 

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

TIMUR NETWORK SDN BHD

 

Financial Year End

30/06/2011

30/06/2010

30/06/2009

30/06/2008

30/06/2007

Months

12

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

30,461,809

35,634,523

11,925,916

12,704,009

7,206,647

 

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

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

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

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

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

Total Turnover

30,461,809

35,634,523

11,925,916

12,704,009

7,206,647

Costs of Goods Sold

<29,299,778>

<34,192,121>

-

-

-

 

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

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

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

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

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

Gross Profit

1,162,031

1,442,402

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

142,629

136,461

183,325

129,348

124,414

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

142,629

136,461

183,325

129,348

124,414

Taxation

<47,217>

<41,000>

<50,750>

<40,166>

<38,900>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

95,412

95,461

132,575

89,182

85,514

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

540,097

444,636

312,061

222,879

137,365

 

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

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

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

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

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

As restated

540,097

444,636

312,061

222,879

137,365

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

635,509

540,097

444,636

312,061

222,879

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

635,509

540,097

444,636

312,061

222,879

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

11,112

11,112

11,152

10,692

10,344

Term loan / Borrowing

26,578

25,159

28,834

58,432

-

 

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

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

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

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

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

 

37,690

36,271

39,986

69,124

10,344

 

 

 

BALANCE SHEET

 

 

TIMUR NETWORK SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

953,010

1,033,825

1,061,670

923,957

412,421

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investments

669,540

669,540

669,540

669,540

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

669,540

669,540

669,540

669,540

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

1,622,550

1,703,365

1,731,210

1,593,497

412,421

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

50,004

51,322

-

58,151

98,210

Trade debtors

3,947,223

3,548,556

686,926

2,752,571

624,756

Other debtors, deposits & prepayments

149,278

74,276

279,998

214,030

995,826

Short term deposits

-

-

-

159,200

154,494

Amount due from director

458,348

253,492

-

115,031

-

Cash & bank balances

328,961

719,760

633,759

184,957

452,046

Others

10,254

5,903

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

4,944,068

4,653,309

1,600,683

3,483,940

2,325,332

 

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

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

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

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

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

TOTAL ASSET

6,566,618

6,356,674

3,331,893

5,077,437

2,737,753

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

3,944,093

3,482,165

1,809,641

3,042,397

1,205,196

Other creditors & accruals

269,261

540,715

77,149

301,130

224,885

Hire purchase & lease creditors

29,221

62,124

62,124

57,264

57,264

Short term borrowings/Term loans

46,285

46,285

46,285

46,285

-

Other borrowings

796,643

791,714

-

395,000

399,000

Amounts owing to director

-

-

16,124

-

27,268

Provision for taxation

-

-

3,847

13,263

16,991

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

5,085,503

4,923,003

2,015,170

3,855,339

1,930,604

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<141,435>

<269,694>

<414,487>

<371,399>

394,728

 

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

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

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

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

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

TOTAL NET ASSETS

1,481,115

1,433,671

1,316,723

1,222,098

807,149

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

500,000

500,000

400,000

400,000

400,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

500,000

500,000

400,000

400,000

400,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

635,509

540,097

444,636

312,061

222,879

 

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

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

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

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

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

TOTAL RESERVES

635,509

540,097

444,636

312,061

222,879

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,135,509

1,040,097

844,636

712,061

622,879

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

330,606

349,352

365,741

383,031

-

Hire purchase creditors

15,000

44,222

106,346

127,006

184,270

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

345,606

393,574

472,087

510,037

184,270

 

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

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

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

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

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

 

1,481,115

1,433,671

1,316,723

1,222,098

807,149

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

TIMUR NETWORK SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

328,961

719,760

633,759

344,157

606,540

Net Liquid Funds

328,961

719,760

633,759

344,157

606,540

Net Liquid Assets

<191,439>

<321,016>

<414,487>

<429,550>

296,518

Net Current Assets/(Liabilities)

<141,435>

<269,694>

<414,487>

<371,399>

394,728

Net Tangible Assets

1,481,115

1,433,671

1,316,723

1,222,098

807,149

Net Monetary Assets

<537,045>

<714,590>

<886,574>

<939,587>

112,248

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

1,217,755

1,293,697

580,496

1,008,586

640,534

Total Liabilities

5,431,109

5,316,577

2,487,257

4,365,376

2,114,874

Total Assets

6,566,618

6,356,674

3,331,893

5,077,437

2,737,753

Net Assets

1,481,115

1,433,671

1,316,723

1,222,098

807,149

Net Assets Backing

1,135,509

1,040,097

844,636

712,061

622,879

Shareholders' Funds

1,135,509

1,040,097

844,636

712,061

622,879

Total Share Capital

500,000

500,000

400,000

400,000

400,000

Total Reserves

635,509

540,097

444,636

312,061

222,879

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.06

0.15

0.31

0.09

0.31

Liquid Ratio

0.96

0.93

0.79

0.89

1.15

Current Ratio

0.97

0.95

0.79

0.90

1.20

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

1

1

0

2

5

Debtors Ratio

47

36

21

79

32

Creditors Ratio

49

37

55

87

61

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

1.07

1.24

0.69

1.42

1.03

Liabilities Ratio

4.78

5.11

2.94

6.13

3.40

Times Interest Earned Ratio

4.78

4.76

5.58

2.87

13.03

Assets Backing Ratio

2.96

2.87

2.63

2.44

1.61

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

0.47

0.38

1.54

1.02

1.73

Net Profit Margin

0.31

0.27

1.11

0.70

1.19

Return On Net Assets

12.17

12.05

16.96

16.24

16.70

Return On Capital Employed

11.94

11.55

16.20

15.51

15.59

Return On Shareholders' Funds/Equity

8.40

9.18

15.70

12.52

13.73

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.55.03

UK Pound

1

Rs.85.93

Euro

1

Rs.68.97

 

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.