MIRA INFORM REPORT

 

 

Report Date :

19.07.2012

 

IDENTIFICATION DETAILS

 

Name :

VANCE BIOENERGY SDN BHD

 

 

Registered Office :

Suite 7e, Menara Ansar, 65, Jalan Trus, Level 7, 80000 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

09/09/2005

 

 

Com. Reg. No.:

709163-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Oleochemicals

 

 

No. of Employees :

49

 

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.

:

709163-K

COMPANY NAME

:

VANCE BIOENERGY SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

09/09/2005

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE 7E, MENARA ANSAR, 65, JALAN TRUS, LEVEL 7, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

PLO 668 & 669, JALAN KELULI 5, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2543668

FAX.NO.

:

07-2543778

EMAIL

:

sales@vancebioenergy.com

WEB SITE

:

www.vancebioenergy.com

CONTACT PERSON

:

LONG TIAN CHING ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

242

PRINCIPAL ACTIVITY

:

MANUFACTURING OF OLEOCHEMICALS

AUTHORISED CAPITAL

:

MYR 100,000,000.00 DIVIDED INTO 
ORDINARY SHARE 100,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 53,620,209.00 DIVIDED INTO 
ORDINARY SHARES 53,620,209 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 139,630,908 [2011]

NET WORTH

:

MYR 80,315,857 [2011]

 

 

 

STAFF STRENGTH

:

49 [2012]

BANKER (S)

:

HSBC BANK MALAYSIA BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

PROMPT

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) manufacturing of oleochemicals.

 

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

 

The immediate holding company of the SC is VANCE GROUP LTD., a company incorporated in SINGAPORE.

The ultimate holding company of the SC is VANCE GROUP LTD, a company incorporated in SINGAPORE.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

VANCE GROUP LTD.

 

200506834

53,620,209.00

100.00

 

 

 

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

------

 

 

 

53,620,209.00

100.00

 

 

 

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

=====

 

 

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

LONG TIAN CHING

Address

:

17, PECK HAY ROAD, 04-01, 228313, SINGAPORE.

IC / PP No

:

E1604522C

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

09/09/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. ANG MUI KIOW

Address

:

27, JALAN NIBONG 18, TAMAN DAYA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

7032746

New IC No

:

630530-01-5426

Date of Birth

:

30/05/1963

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

09/09/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. TAI YIT CHAN

Address

:

56, JALAN SS 22/29, DAMANSARA JAYA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A1167797

New IC No

:

690118-10-6160

Date of Birth

:

18/01/1969

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

09/09/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. HENDRICKS SUTIONO

Address

:

27, CLAYMORE ROAD, 15-03, THE CLAYMORE, 229544, SINGAPORE.

IC / PP No

:

W554314

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

09/09/2005

Remark

:

OLD PP: B297137

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

ARKIAN MINATA SUTIONO

Address

:

J1, SEI KERA 135-A, MEDAN NORTH SUMATERA, INDONESIA.

IC / PP No

:

T425147

 

 

 

Date of Birth

:

16/05/1955

 

 

 

Nationality

:

INDONESIAN

Date of Appointment

:

09/09/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

DAVID WONG CHUN LEONG

Address

:

45, SENNETT ROAD, 466820, SINGAPORE.

IC / PP No

:

S7228410J

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

28/08/2006

 

 

 

 

 

 

 

 

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

LONG TIAN CHING

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

WONG CHUN LEONG DAVID

 

Position

:

FINANCE DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

RSM ROBERT TEO, KUAN & CO

Auditor' Address

:

WISMA RKT, BLOCK A, 2, JALAN RAJA ABDULLAH, OFF JALAN SULTAN ISMAIL, 2ND FLOOR, 50300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ANG MUI KIOW

 

IC / PP No

:

7032746

 

New IC No

:

630530-01-5426

 

Address

:

27, JALAN NIBONG 18, TAMAN DAYA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

2)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

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

 

 

ENCUMBRANCE (S)



ENCUMBRANCE 1

Date of Creation

:

20/04/2006

Description Of Charge

:

N/A

 

Amount Secured

:

RM30,800,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

12/11/2008

Description Of Charge

:

N/A

 

Amount Secured

:

RM5,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 2 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

 

 

 



The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

SINGAPORE, INDIA, EUROPE, MIDDLE EAST, UNITED STATES, SOUTH EAST ASIA

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

OLEOCHEMICALS

 

 

 

Competitor(s)

:

CHEMINDUS SDN BHD
ERP HYCHEM SDN BHD
HIAP HUAT CHEMICALS SDN BHD
PALMAMIDE SDN BHD
PERNIAGAAN USAHASAMA MEMBALAK SDN BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

49

50

50

49

49

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of oleochemicals.

We were informed that the SC is involved in the biodiesel and refined glycerine production.

The SC's biodiesel is a direct substitute for petroleum diesel and is produced from vegetable oils - a renewable resource.

The SC's state-of-the-art facilities produce high quality biodiesel that meets global biodiesel specifications and pharmaceutical-grade refined glycerine.

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

:

N/A

Current Telephone Number

:

07-2543668

Match

:

N/A

 

 

 

Address Provided by Client

:

PLO 668/PLO 669 KAWASAN PERINDUSTRIAN PASIR GUDANG 81700 PASIR GUDANG JOHOR DARUN TAKZIM

Current Address

:

PLO 668 & 669, JALAN KELULI 5, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the Senior staff from the Admin Department. She provided some information on the SC.

The address provided is incomplete.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

4.36%

]

 

Return on Net Assets

:

Unfavourable

[

4.03%

]

 

 

 

 

 

 

 

 

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. 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.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Favourable

[

1.69 Times

]

 

 

 

 

 

 

 

 

The SC was in good liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Favourable

[

0.45 Times

]

 

 

 

 

 

 

 

 

A low liabilities ratio has minimised the SC's financial risk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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. The SC has high financial risks. If its shareholders do not inject more capital into the company or if its business performance does not improve, its going concern may be in question.

 

 

 

 

 

 

 

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

242 : Manufacture of Other Chemical Products

 

 

INDUSTRY :

MANUFACTURING

 

 

 


The manufacturing sector expanded by 5.1% in the third quarter ended September 30,2011 on a year-on-year basis as supply-chain disruptions were reduced and following higher output of domestic-related industries as well as a weaker external environment. Investments in Malaysia's manufacturing sector reached RM40.7 billion in the first 10 months of 2011 and the full-year figure is expected to surpass year 2010's numbers.


The E&E sub-sector is expected to moderate in the second half of 2011, due to the increasingly uncertain external environment. Output of E&E contracted 4.9% during the first seven months of 2011 largely due to the global supply chain disruptions and lower global chip sales. Lower orders for notebooks and personal computers arising from increased preference for smartphones and media tables coupled with uncertainties over the US and European economies, adversely affected the sub-sector.


The wood and wood products sub-sector, on the other hand, is expected to rebound when Japan's reconstruction efforts gain momentum and new housing projects start in the Middle East after the month of Ramadhan in the year 2011. Production of wood and wood products contracted 7% during the first half of the year 2011, largely due to slower output of wooden and cane furniture as well as veneer sheets and plywood. 


The rubber products sub-sector is expected to remain resilient supported by continuous improvements in medical and healthcare standards in emerging markets as well as demand from niche markets such as the oil and gas sector for rubber hoses. Output of rubber products increased 15.4% during the first seven months of 2011, supported by continuos demand for rubber gloves as well as rubber tyres and tubes. 


For the textiles, apparel and footwear sub-sector, the local industry players's ability to produce quality designs and diversification of product lines to cater to different market segments as well as market under their own labels are expected to sustain the growth of this sub-sector. Furthermore, the upcoming 2012 Olympic Games is anticipated to boost demand for sports attire and strengthen the sub-sector's growth further. Production of textiles, apparel and foorwear grew 14.8% during the first half of the year 2011 led by higher output of wearing apparel and footwear.


During the first seven months of 2011, production of chemicals and chemical products rose 5.6%. While output of basic chemicals contracted 8.2%, other chemical and plastic products recorded a positive growth of 30% and 20.7% respectively. On the domestic front, output of construction related materials as a group grew strongly by 20% following robust housing construction activities and aided by ongoing implementation of civil engineering projects. The manufacture of transport equipment shrank 9.4% as a result of supply chain disruptions caused by the earthquake and tsunami in Japan. In addition, production of food rose 2.4% driven by the manufacture of refined palm oil processed and preserved fish products and other food products. Specifically, production of beverages increased 12.6% while tobacco declined 2.3%


Going forward, the manufacturing sector is expected to be driven by higher value-added activities. In this regard, further tax and non-tax incentives will be provided to encourage manufacturers to move up the value chain. The new growth initiatives in the manufacturing sector such as solar and medial services would be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 


CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2005, the SC is a Private Limited company, focusing on manufacturing of oleochemicals. Having been in business for 7 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The SC is a large entity with strong capital position. We are confident with the SC's business and its future growth prospect.


Over the years, the SC has 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 has approximately 49 employees in its business operations. 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.


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The SC however has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Fortunately, 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. A low liabilities ratio has minimised the SC's financial risk. Given a positive net worth standing at MYR 80,315,857, 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.


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


The industry shows an upward trend and this trend is very likely to sustain in the near terms. 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)

VANCE BIOENERGY SDN BHD

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

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

SUMMARY

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

139,630,908

125,387,063

227,362,466

271,270,864

Other Income

-

3,591,664

548,767

-

 

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

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

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

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

Total Turnover

139,630,908

128,978,727

227,911,233

271,270,864

Costs of Goods Sold

-

<115,356,622>

<208,665,202>

-

 

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

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

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

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

Gross Profit

-

13,622,105

19,246,031

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

3,519,047

1,302,014

6,024,466

6,201,988

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

3,519,047

1,302,014

6,024,466

6,201,988

Taxation

<20,792>

<863,132>

<2,087,041>

76,728

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

3,498,255

438,882

3,937,425

6,278,716

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

23,197,393

22,758,511

20,572,307

14,293,591

 

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

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

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

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

As restated

23,197,393

22,758,511

20,572,307

14,293,591

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

26,695,648

23,197,393

24,509,732

20,572,307

DIVIDENDS - Ordinary (paid & proposed)

-

-

<1,751,221>

-

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

26,695,648

23,197,393

22,758,511

20,572,307

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Bankers' acceptance

-

29,951

54,083

-

Term loan / Borrowing

-

89,713

338,600

637,480

Others

-

-

12,482

232,032

 

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

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

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

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

 

-

119,664

405,165

869,512

 

 

BALANCE SHEET

 

 

VANCE BIOENERGY SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

67,196,529

73,916,171

77,601,110

79,751,670

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

67,196,529

73,916,171

77,601,110

79,751,670

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

-

8,271,371

43,738,166

17,269,496

Trade debtors

-

5,804,060

1,154,979

25,156,901

Other debtors, deposits & prepayments

-

1,069,152

531,722

1,677,014

Short term deposits

-

4,640,000

3,923,000

-

Cash & bank balances

-

5,808,115

7,967,815

25,561,517

Others

-

281,299

2,246,444

3,420,067

 

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

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

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

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

TOTAL CURRENT ASSETS

49,217,234

25,873,997

59,562,126

73,084,995

 

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

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

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

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

TOTAL ASSET

116,413,763

99,790,168

137,163,236

152,836,665

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

-

3,091,750

4,577,487

5,581,980

Other creditors & accruals

-

574,929

985,414

1,800,534

Bank overdraft

-

-

-

129,556

Short term borrowings/Term loans

-

2,927,925

3,426,527

3,464,028

Other borrowings

-

-

-

23,745,401

Amounts owing to holding company

-

8,716,073

4,285,043

9,698,634

Dividends payable/proposed

-

-

1,751,221

-

 

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

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

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

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

TOTAL CURRENT LIABILITIES

29,046,506

15,310,677

15,025,692

44,420,133

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

20,170,728

10,563,320

44,536,434

28,664,862

 

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

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

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

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

TOTAL NET ASSETS

87,367,257

84,479,491

122,137,544

108,416,532

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

53,620,209

53,620,209

15,228,007

15,228,007

 

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

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

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

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

TOTAL SHARE CAPITAL

53,620,209

53,620,209

15,228,007

15,228,007

 

 

 

 

 

RESERVES

 

 

 

 

Retained profit/(loss) carried forward

26,695,648

23,197,393

22,758,511

20,572,307

 

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

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

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

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

TOTAL RESERVES

26,695,648

23,197,393

22,758,511

20,572,307

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

80,315,857

76,817,602

37,986,518

35,800,314

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

-

616,289

3,940,379

7,447,530

Deferred taxation

-

7,045,600

6,212,300

4,009,000

Others

-

-

73,998,347

61,159,688

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

7,051,400

7,661,889

84,151,026

72,616,218

 

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

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

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

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

 

87,367,257

84,479,491

122,137,544

108,416,532

 

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

VANCE BIOENERGY SDN BHD

 

TYPES OF FUNDS

 

 

 

 

Cash

-

10,448,115

11,890,815

25,561,517

Net Liquid Funds

-

10,448,115

11,890,815

25,431,961

Net Liquid Assets

20,170,728

2,291,949

798,268

11,395,366

Net Current Assets/(Liabilities)

20,170,728

10,563,320

44,536,434

28,664,862

Net Tangible Assets

87,367,257

84,479,491

122,137,544

108,416,532

Net Monetary Assets

13,119,328

<5,369,940>

<83,352,758>

<61,220,852>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

-

3,544,214

7,366,906

34,786,515

Total Liabilities

36,097,906

22,972,566

99,176,718

117,036,351

Total Assets

116,413,763

99,790,168

137,163,236

152,836,665

Net Assets

87,367,257

84,479,491

122,137,544

108,416,532

Net Assets Backing

80,315,857

76,817,602

37,986,518

35,800,314

Shareholders' Funds

80,315,857

76,817,602

37,986,518

35,800,314

Total Share Capital

53,620,209

53,620,209

15,228,007

15,228,007

Total Reserves

26,695,648

23,197,393

22,758,511

20,572,307

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

-

0.68

0.79

0.58

Liquid Ratio

-

1.15

1.05

1.26

Current Ratio

1.69

1.69

3.96

1.65

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

-

24

70

23

Debtors Ratio

-

17

2

34

Creditors Ratio

-

10

8

8

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

-

0.05

0.19

0.97

Liabilities Ratio

0.45

0.30

2.61

3.27

Times Interest Earned Ratio

-

11.88

15.87

8.13

Assets Backing Ratio

1.63

1.58

2.28

2.02

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

2.52

1.04

2.65

2.29

Net Profit Margin

2.51

0.35

1.73

2.31

Return On Net Assets

4.03

1.68

5.26

6.52

Return On Capital Employed

4.03

1.68

5.26

6.51

Return On Shareholders' Funds/Equity

4.36

0.57

10.37

17.54

Dividend Pay Out Ratio (Times)

-

0.00

0.44

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

-

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.34

UK Pound

1

Rs.86.55

Euro

1

Rs.67.95

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.