MIRA INFORM REPORT

 

 

Report Date :

21.07.2012

 

IDENTIFICATION DETAILS

 

Name :

NATURAL OLEOCHEMICALS SDN BHD

 

 

Formerly Known As :

NALIN CHEMICALS SDN BHD

 

 

Registered Office :

Wisma Ace Jerneh, 38, Jalan Sultan Ismail, 17th Floor, 50250 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

28.01.1986

 

 

Com. Reg. No.:

150005-U

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Oleochemicals Products

 

 

No. of Employees :

500

 

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.

:

150005-U

COMPANY NAME

:

NATURAL OLEOCHEMICALS SDN BHD

FORMER NAME

:

NALIN CHEMICALS SDN BHD (26/06/1992)
SEGAMAT KERNEL OIL MILL SDN BHD (26/10/1989)

INCORPORATION DATE

:

28/01/1986

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

WISMA ACE JERNEH, 38, JALAN SULTAN ISMAIL, 17TH FLOOR, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

PLO 428, JALAN BESI 1, PASIR GUDANG INDUSTRIAL ESTATE, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2533888

FAX.NO.

:

07-2511614

EMAIL

:

natoleo@natoleo.com

WEB SITE

:

www.natoleo.com

CONTACT PERSON

:

GEORGE JOSEPH ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

24290

PRINCIPAL ACTIVITY

:

MANUFACTURING OF OLEOCHEMICALS PRODUCTS

AUTHORISED CAPITAL

:

MYR 500,000,000.00 DIVIDED INTO 
ORDINARY SHARE 500,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 204,160,000.00 DIVIDED INTO 
ORDINARY SHARES 200,910,000 CASH AND 3,250,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 1,897,687,000 [2011]

NET WORTH

:

MYR 338,669,000 [2011]

M1000 OVERALL RANKING

:

333[2011]

M1000 INDUSTRY RANKING

:

16[2011]

 

 

 

STAFF STRENGTH

:

500 [2012]

BANKER (S)

:

HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

MYR 18,387,000 (USD 5,837,000)

 

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 products.

 

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

2005

2004

 

OVERALL RANKING

333

295

377

563

626

 

INDUSTRY RANKING

16

16

22

29

26

 

 

The immediate holding company of the SC is PGEO GROUP SDN BHD, a company incorporated in MALAYSIA.

 

The ultimate holding company of the SC is WILMAR INTERNATIONAL LIMITED, a company incorporated in SINGAPORE.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

PGEO GROUP SDN BHD

WISMA ACE JERNEH, 38, JALAN SULTAN ISMAIL, 17TH FLOOR, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

515792

204,160,000.00

100.00

 

 

 

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

------

 

 

 

204,160,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

The SC interest in other companies (Subsidiaries/Associates) are shown as follow :

Local No

Company

(%)

As At

419384

NATURAL SOAPS SDN BHD

100

31/12/2011

 

 

 

 

 

742366

NATURAL WAX SDN BHD

60

31/12/2011

 

 

 

 

 

 

337789

DUBOIS-NATURAL ESTERS SDN BHD

55

31/12/2011

 

 

 

 

 

 

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. RAHUL KALE

Address

:

40, NASSIM HILL, 07-42, 258474, SINGAPORE.

IC / PP No

:

S2719452D

 

 

 

 

 

 

 

 

 

Nationality

:

N/A

Date of Appointment

:

23/09/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. YEE CHEK TOONG

Address

:

1, JALAN AUSTIN HEIGHTS 2/11, TAMAN MOUNT AUSTIN, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

5192922

New IC No

:

570704-01-6583

Date of Birth

:

04/07/1957

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

23/09/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MS. LIM YEE MEIN

Address

:

64, JALAN CAMAR 8, TAMAN PERLING, 81200 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

5239971

New IC No

:

570930-01-5642

Date of Birth

:

30/09/1957

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

23/09/2010



MANAGEMENT

 

 

 

1)

Name of Subject

:

GEORGE JOSEPH

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

AINUZILA

 

Position

:

EXECUTIVE

 

 

 

 

 

3)

Name of Subject

:

SURESH

 

Position

:

SENIOR MARKETING MANAGER

 

 

 

 

 

4)

Name of Subject

:

MOHD FAZLY B. YUSOF

 

Position

:

SENIOR HUMAN RESOURCE MANAGER

 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG

Auditor' Address

:

SUITE 11.2, MENARA PELANGI, 2 JALAN KUNING, TAMAN PELANGI, LEVEL 11, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. MAH TECK KEONG

 

IC / PP No

:

6940054

 

New IC No

:

620920-10-6607

 

Address

:

21, PERSIARAN SYED PUTRA, 50460 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA 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

:

29/03/2005

Description Of Charge

:

N/A

 

Amount Secured

:

RM20,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 4 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

04/10/1990

Description Of Charge

:

DEBENTURE

 

Amount Secured

:

RM40,000,000.00

Description Of Property Affected

:

DEBENTURE

 

Name & Address Of Chargee

:

ARAB MALAYSIAN MERCHANT BANK BERHAD
BANGUNAN ARAB-MALAYSIAN, 55, JALAN RAJA CHULAN, 22ND FLOOR, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 19/12/1990

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

18/07/1991

Description Of Charge

:

FACILITY AGREEMENT

 

Amount Secured

:

RM40,000,000.00

Description Of Property Affected

:

HS (D) 178042 PTD 101352 MUKIM OF PLENTONG

 

Name & Address Of Chargee

:

ARAB MALAYSIAN MERCHANT BANK BERHAD
BANGUNAN ARAB-MALAYSIAN, 55, JALAN RAJA CHULAN, 22ND FLOOR, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 24/02/1992

Registered and Numbered 2 In The Register of Charges

 


ENCUMBRANCE 4

Date of Creation

:

24/08/1993

Description Of Charge

:

FACILITIES AGREEMENT

 

Amount Secured

:

RM40,000,000.00

Description Of Property Affected

:

LAND HELD UNDER HS (D) 164881 NO PT 6143 PTD 64613, MUKIM PLENTONG

 

Name & Address Of Chargee

:

ARAB-MALAYSIAN MERCHANT BANK BERHAD
BANGUNAN ARAB-MALAYSIAN, 55, JALAN RAJA CHULAN, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 27/09/1993

Registered and Numbered 3 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

[

 

]

 

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, AUSTRALIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

GLYCERINE, FAT PRODUCTS, FATTY ACIDS & ETC

 

 

 

Brand Name

:

NATOLEO, NATURAOIL, NATUROL

 

 

 

 

Award

:

1 ) HACCP Year :2004
2 ) MS ISO 9001 : 2000 Year :1995

 

 

 

 

 

Competitor(s)

:

BP CHEMICALS (MALAYSIA) SDN BHD
EMERY OLEOCHEMICALS (M) SDN BHD
KL-KEPONG OLEOMAS SDN BHD
NYLEX (MALAYSIA) BHD
PETRONAS CHEMICALS GROUP BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

OWNED

 

Factory Size

:

10 HECTARE

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

2007

 

 

GROUP

N/A

530

530

530

550

520

 

 

 

COMPANY

500

500

500

500

525

500

 

 

 

 

Branch

:

YES

 

Other Information:


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

The SC is under Kulim (M) Bhd, is one of the largest plantation-based companies in Malaysia.

The SC produces a wide range of products including distilled fatty acids, fractionated fatty acids, palmitic acids soap blends, stearic acids, esters, glycerine and other products.

We were informed that the SC's production site is equipped with various facilities as follows:- 

* Five High-Pressure Splitter units

* Five Multistage Fractionation units

* Two Hydrogenation units

* Three Glycerine Refining units

* Three Esters Reactor units

* Three Flaker units

* Five Automatic Drum Filing Lines

* Two Warehouses

* Fully Stainless Steel Tank Farm

* Road Tanker and Isotank Loading bays

The SC manufacture the products based on the customers' requirements.

The SC also provides transport services to its customers based on the orders and requirements.

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

07-2533888

Match

:

N/A

 

 

 

Address Provided by Client

:

PLO 338, JALAN TEMBAGA DUA KAWASAN PERINDUSTRIAN PASIR GUDANG, P O BOX 80, 81707 PASIR GUDANG JOHOR

Current Address

:

PLO 428, JALAN BESI 1, PASIR GUDANG INDUSTRIAL ESTATE, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided does not belong to the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

50.39%

]

 

Profit/(Loss) Before Tax

:

Increased

[

94.39%

]

 

Return on Shareholder Funds

:

Unfavourable

[

8.48%

]

 

Return on Net Assets

:

Acceptable

[

14.76%

]

 

 

 

 

 

 

 

 

The increase in turnover could be due to the SC adopting an aggressive marketing strategy.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.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

34 Days

]

 

Debtor Ratio

:

Unfavourable

[

77 Days

]

 

Creditors Ratio

:

Favourable

[

11 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the SC was weak in its credit control. However, the SC could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Acceptable

[

0.83 Times

]

 

Current Ratio

:

Unfavourable

[

1.17 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

[

4.32 Times

]

 

Gearing Ratio

:

Favourable

[

0.75 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 lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. 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 as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : 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

24290 : Manufacture of other chemical products n.e.c

 

 

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 1986, the SC is a Private Limited company, focusing on manufacturing of oleochemicals products. The SC has been in business for over two 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. 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. Being a large entity, the SC has a steady workforce of 500 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. 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. To improve its quality products and services, we noted that the SC has received a number of certifications & awards. This will improve the customer's confidence level to 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. 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. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 338,669,000, 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)

NATURAL OLEOCHEMICALS SDN BHD

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

GROUP

GROUP

GROUP

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

1,897,687,000

1,261,830,000

1,104,415,000

1,539,368,000

1,094,839,000

 

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

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

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

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

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

Total Turnover

1,897,687,000

1,261,830,000

1,104,415,000

1,539,368,000

1,094,839,000

Costs of Goods Sold

<1,763,964,000>

<1,227,220,000>

<1,062,748,000>

-

-

 

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

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

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

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

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

Gross Profit

133,723,000

34,610,000

41,667,000

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

39,665,000

20,405,000

<29,493,000>

19,856,000

51,313,000

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

39,665,000

20,405,000

<29,493,000>

19,856,000

51,313,000

Taxation

<10,935,000>

<5,590,000>

6,946,000

<4,128,000>

<12,995,000>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

28,730,000

14,815,000

<22,547,000>

15,728,000

38,318,000

Minority interests

-

-

<426,000>

<897,000>

<639,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

103,617,000

88,563,000

145,222,000

123,762,000

99,654,000

Prior year adjustment

-

239,000

-

26,708,000

25,447,000

 

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

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

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

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

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

As restated

103,617,000

88,802,000

145,222,000

150,470,000

125,101,000

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

132,347,000

103,617,000

122,249,000

165,301,000

162,780,000

- General

-

-

38,000

337,000

450,000

DIVIDENDS - Ordinary (paid & proposed)

-

-

<20,416,000>

<20,416,000>

<12,760,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

132,347,000

103,617,000

101,871,000

145,222,000

150,470,000

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bankers' acceptance

5,353,000

7,573,000

7,826,000

-

-

Loan from holding company

4,181,000

-

-

-

-

Revolving loans

-

-

226,000

245,000

1,549,000

Term loan / Borrowing

-

749,000

822,000

1,838,000

1,964,000

Others

2,414,000

255,000

-

11,276,000

8,331,000

 

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

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

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

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

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

 

11,948,000

8,577,000

8,874,000

13,359,000

11,844,000

 

 

 

BALANCE SHEET

 

 

NATURAL OLEOCHEMICALS SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

249,858,000

265,161,000

302,656,000

313,909,000

334,063,000

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Subsidiary companies

11,300,000

13,100,000

-

-

-

Deferred assets

-

-

6,465,000

1,358,000

2,021,000

Others

-

-

14,084,000

14,398,000

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

11,300,000

13,100,000

20,549,000

15,756,000

2,021,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

261,158,000

278,261,000

323,205,000

329,665,000

336,084,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

179,346,000

138,037,000

109,489,000

124,212,000

107,631,000

Trade debtors

398,493,000

240,220,000

247,801,000

170,966,000

283,131,000

Other debtors, deposits & prepayments

845,000

2,108,000

2,886,000

4,524,000

8,804,000

Short term deposits

373,000

1,077,000

-

-

-

Amount due from holding company

-

-

-

4,106,000

4,088,000

Amount due from subsidiary companies

24,403,000

35,228,000

-

-

-

Amount due from related companies

-

-

13,000

21,149,000

42,000

Cash & bank balances

586,000

594,000

26,657,000

28,841,000

28,720,000

Others

8,989,000

9,551,000

15,000

288,000

364,000

 

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

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

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

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

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

TOTAL CURRENT ASSETS

613,035,000

426,815,000

386,861,000

354,086,000

432,780,000

 

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

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

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

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

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

TOTAL ASSET

874,193,000

705,076,000

710,066,000

683,751,000

768,864,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

53,658,000

31,771,000

45,481,000

30,679,000

82,475,000

Other creditors & accruals

66,886,000

39,137,000

17,223,000

17,849,000

14,743,000

Short term borrowings/Term loans

-

-

10,456,000

15,605,000

25,427,000

Other borrowings

252,424,000

37,341,000

26,000,000

5,000,000

5,000,000

Bill & acceptances payable

58,710,000

204,632,000

254,500,000

209,100,000

236,268,000

Amounts owing to holding company

85,048,000

80,676,000

16,407,000

53,000

4,000

Amounts owing to subsidiary companies

1,124,000

808,000

-

-

-

Amounts owing to related companies

6,377,000

417,000

1,021,000

10,729,000

-

Provision for taxation

244,000

-

190,000

83,000

143,000

Dividends payable/proposed

-

-

20,416,000

20,551,000

12,895,000

Other liabilities

-

-

-

1,000

36,000

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

524,471,000

394,782,000

391,694,000

309,650,000

376,991,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

88,564,000

32,033,000

<4,833,000>

44,436,000

55,789,000

 

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

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

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

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

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

TOTAL NET ASSETS

349,722,000

310,294,000

318,372,000

374,101,000

391,873,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

204,160,000

204,160,000

204,160,000

204,160,000

204,160,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

204,160,000

204,160,000

204,160,000

204,160,000

204,160,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Revaluation reserve

2,162,000

2,162,000

2,162,000

2,190,000

2,527,000

Retained profit/(loss) carried forward

132,347,000

103,617,000

101,871,000

145,222,000

150,470,000

 

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

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

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

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

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

TOTAL RESERVES

134,509,000

105,779,000

104,033,000

147,412,000

152,997,000

 

 

 

 

 

 

MINORITY INTEREST

-

-

8,685,000

7,462,000

6,700,000

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

338,669,000

309,939,000

316,878,000

359,034,000

363,857,000

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

-

-

-

10,456,000

26,061,000

Deferred taxation

11,053,000

355,000

1,494,000

4,611,000

1,955,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

11,053,000

355,000

1,494,000

15,067,000

28,016,000

 

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

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

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

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

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

 

349,722,000

310,294,000

318,372,000

374,101,000

391,873,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

NATURAL OLEOCHEMICALS SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

959,000

1,671,000

26,657,000

28,841,000

28,720,000

Net Liquid Funds

959,000

1,671,000

26,657,000

28,841,000

28,720,000

Net Liquid Assets

<90,782,000>

<106,004,000>

<114,322,000>

<79,776,000>

<51,842,000>

Net Current Assets/(Liabilities)

88,564,000

32,033,000

<4,833,000>

44,436,000

55,789,000

Net Tangible Assets

349,722,000

310,294,000

318,372,000

374,101,000

391,873,000

Net Monetary Assets

<101,835,000>

<106,359,000>

<115,816,000>

<94,843,000>

<79,858,000>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

252,424,000

37,341,000

36,682,000

31,306,000

58,037,000

Total Liabilities

535,524,000

395,137,000

393,188,000

324,717,000

405,007,000

Total Assets

874,193,000

705,076,000

710,066,000

683,751,000

768,864,000

Net Assets

349,722,000

310,294,000

318,372,000

374,101,000

391,873,000

Net Assets Backing

338,669,000

309,939,000

316,878,000

359,034,000

363,857,000

Shareholders' Funds

338,669,000

309,939,000

316,878,000

359,034,000

363,857,000

Total Share Capital

204,160,000

204,160,000

204,160,000

204,160,000

204,160,000

Total Reserves

134,509,000

105,779,000

104,033,000

147,412,000

152,997,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.00

0.00

0.07

0.09

0.08

Liquid Ratio

0.83

0.73

0.71

0.74

0.86

Current Ratio

1.17

1.08

0.99

1.14

1.15

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

34

40

36

29

36

Debtors Ratio

77

69

82

41

94

Creditors Ratio

11

9

16

7

27

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.75

0.12

0.12

0.09

0.16

Liabilities Ratio

1.58

1.27

1.24

0.90

1.11

Times Interest Earned Ratio

4.32

3.38

<2.32>

2.49

5.33

Assets Backing Ratio

1.71

1.52

1.56

1.83

1.92

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

2.09

1.62

<2.67>

1.29

4.69

Net Profit Margin

1.51

1.17

<2.08>

0.96

3.44

Return On Net Assets

14.76

9.34

<6.48>

8.88

16.12

Return On Capital Employed

14.76

9.34

<6.30>

8.70

15.78

Return On Shareholders' Funds/Equity

8.48

4.78

<7.25>

4.13

10.36

Dividend Pay Out Ratio (Times)

0.00

0.00

0.89

1.38

0.34

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.15

UK Pound

1

Rs.86.58

Euro

1

Rs.67.60

 

 

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.