MIRA INFORM REPORT

 

 

Report Date :

30.07.2012

 

IDENTIFICATION DETAILS

 

Name :

SIME DARBY FUTURES TRADING SDN BHD

 

 

Formerly Known As :

MANPOWER DEVELOPMENT CORPORATION (MALAYSIA) SDN BHD

 

 

Registered Office :

Wisma Cosplant 1, 2 Jalan Ss 16/4, 4th Floor, 47500 Subang Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2011

 

 

Date of Incorporation :

28.12.1981

 

 

Com. Reg. No.:

79537-A

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trading of crude palm oil futures

 

 

No. of Employees :

150

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Good

Payment Behaviour :

No Complaints

Litigation :

Exists

 

 

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.

:

79537-A

COMPANY NAME

:

SIME DARBY FUTURES TRADING SDN BHD

FORMER NAME

:

MANPOWER DEVELOPMENT CORPORATION (MALAYSIA) SDN BHD (14/09/1985)

INCORPORATION DATE

:

28/12/1981

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

WISMA COSPLANT 1, 2 JALAN SS 16/4, 4TH FLOOR, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

WISMA SIME DARBY, 19TH FLOOR, JALAN RAJA LAUT, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-26914122

FAX.NO.

:

03-26987398

WEB SITE

:

www.simedarby.com

CONTACT PERSON

:

JASNI MOHAMED ( GENERAL MANAGER )

INDUSTRY CODE

:

51212

PRINCIPAL ACTIVITY

:

TRADING OF CRUDE PALM OIL FUTURES

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

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

 

 

 

SALES

:

MYR 1,798,242,589 [2011]

NET WORTH

:

MYR 79,680,053 [2011]

M1000 OVERALL RANKING

:

621[2011]

M1000 INDUSTRY RANKING

:

32[2011]

STAFF STRENGTH

:

150 [2012]

BANKER (S)

:

CIMB BANK BHD

LITIGATION

:

TRACED

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The SC is principally engaged in the (as a / as an) trading of crude palm oil futures.

 

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

 

 

OVERALL RANKING

621

 

 

INDUSTRY RANKING

32

 

 

 

The immediate holding company of the SC is SIME DARBY PLANTATION SDN BHD, a company incorporated in MALAYSIA.

 

The ultimate holding company of the SC is SIME DARBY BERHAD, a company incorporated in MALAYSIA.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

SIME DARBY PLANTATION SDN BHD

WISMA COSPLANT 1, 2 JALAN SS 16/4, 4TH FLOOR, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

647766

50,000,000.00

100.00

 

 

 

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

------

 

 

 

50,000,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MS. RENAKA A/P RAMACHANDRAN

Address

:

19, JALAN ENDAH 6/7, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A0821952

New IC No

:

671005-10-6080

Date of Birth

:

05/10/1967

 

 

 

Nationality

:

MALAYSIAN INDIAN

Date of Appointment

:

24/08/2011

 

DIRECTOR 2

 

Name Of Subject

:

MR. JASNI BIN MUHAMAD

Address

:

7, JALAN PJU 1A/24B, ARA DAMANSARA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

6169529

New IC No

:

610323-03-5135

Date of Birth

:

23/03/1961

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

28/02/2005

 

DIRECTOR 3

 

Name Of Subject

:

MR. MUSTAMIR BIN MOHAMAD

Address

:

9, JALAN ARA SD 7/1B, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A1836639

New IC No

:

720518-10-5399

Date of Birth

:

18/05/1972

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

24/08/2011



MANAGEMENT

 

 

1)

Name of Subject

:

JASNI MOHAMED

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

SANDEEP SINGH

 

Position

:

SENIOR MARKETING MANAGER

 

 

 

 

 

3)

Name of Subject

:

ALIA BAHARANUDDIN

 

Position

:

EXECUTIVE

 

 

 

 

 

4)

Name of Subject

:

MARTIN D'SILVA

 

Position

:

HEAD OF BRAND COMMMUNICATION

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, LEVEL 10, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. AZRIN NASHIHA BINTI ABDUL AZIZ

 

IC / PP No

:

A1987809

 

New IC No

:

720603-08-5564

 

Address

:

2, JALAN TUN TEJA 35/24, ALAM IMPIAN, 40470 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

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

 

 

ENCUMBRANCE (S)


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

 

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank against the SC whether the subject has been involved in any litigation. 

LEGAL ACTION

 

 

 

Code No

:

22

Case No

:

1645

 

Year

:

2008

Place

:

KUALA LUMPUR

 

Court No

:

D8

 

 

 

 

Court

:

HIGH COURT

 

 

 

 

Solicitor

:

SKRINE

 

 

 

 

Plaintiff

:

ALAMI VEGETABLE OIL PRODUCTS SDN BHD

 

 

 

Defendants

:

SIME DARBY FUTURES TRADING SDN BHD (79537)

WISMA COSPLANT 1, 2 JLN SS 16/4, 14TH FLR, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

Amount Claimed

:

2,652,864.00

 

 

 

 

 

 

 

 

Nature of Claim

:

CONTRACT BREACH

 

 

 

 

 

 

 

 

Remark

:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person wo has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.

 

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

:

ASIA, MIDDLE EAST, EUROPE

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

PALM OIL INDUSTRIES

 

OPERATIONS

 

Goods Traded

:

PALM OIL PRODUCTS

 

 

 

 

Competitor(s)

:

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

 

 

 

 

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

150

100

100

100

75

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of crude palm oil futures.

The SC is part of the Sime Darby Group which its dealing in trading and marketing of the palm oil products.

We were informed that the SC's products are divided into two categories as palm products and lauric products.

The SC's Palm products are Fresh fruit bunches (FFB), Crude palm oil, Crude palm olein, Refined Bleached Deodorised Palm Olein,

Refined Bleached Deodorised Palm Oil, Refined Bleached Deodorised Palm Stearin, Palm Fatty Acid Distillate, Palm Acid Oil and etc.

The SC's Lauric products are Palm kernel, Crude palm kernel oil, Refined Bleached Deodorised Palm Kernel Olein, Refined Bleached Deodorised Palm Kernel Oil, Refined Bleached Deodorised Palm Kernel Stearin, Palm Kernel Fatty Acid Distillate and etc.


PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-26914122

Match

:

N/A

 

 

 

Address Provided by Client

:

19TH FLOOR, WISMA SIME DARBY JALAN RAJA LAUT KUALA LAMPUR

Current Address

:

WISMA SIME DARBY, 19TH FLOOR, JALAN RAJA LAUT, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

N/A

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

We contacted one of the staff from HR Department and she provided some information on the SC.  The address provided is incomplete.


FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

27.95%

]

 

Return on Net Assets

:

Favourable

[

37.31%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

2 Days

]

 

Debtor Ratio

:

Favourable

[

4 Days

]

 

Creditors Ratio

:

Favourable

[

0 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

:

Favourable

[

1.24 Times

]

 

Current Ratio

:

Unfavourable

[

1.29 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was nil as it did not pay any interest during the year. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. 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 did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the SC : STABLE

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 

 

INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

INDUSTRY ANALYSIS

 

MSIC CODE

 

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. TheCPO 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 1981, the SC is a Private Limited company, focusing on trading of crude palm oil futures. 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. The SC is a fairly large and rapidly growing company with over 150 staff in its operations The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright.


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. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 79,680,053, 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 promptly.

 

PROFIT AND LOSS ACCOUNT

 

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

SIME DARBY FUTURES TRADING 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

1,798,242,589

1,560,440,670

541,265,523

660,052,083

115,798

 

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

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

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

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

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

Total Turnover

1,798,242,589

1,560,440,670

541,265,523

660,052,083

115,798

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

29,725,647

3,759,688

<12,635,169>

17,260,234

107,159

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

29,725,647

3,759,688

<12,635,169>

17,260,234

107,159

Taxation

<7,451,318>

<970,117>

3,161,160

<4,442,140>

<21,500>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

22,274,329

2,789,571

<9,474,009>

12,818,094

85,659

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

6,531,577

3,742,006

13,216,015

397,921

312,262

Prior year adjustment

874,147

-

-

-

-

 

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

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

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

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

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

As restated

7,405,724

3,742,006

13,216,015

397,921

312,262

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

29,680,053

6,531,577

3,742,006

13,216,015

397,921

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

29,680,053

6,531,577

3,742,006

13,216,015

397,921

 

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

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

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

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

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

 

 

 

 

 

 

 

 

BALANCE SHEET

 

SIME DARBY FUTURES TRADING SDN BHD

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Deferred assets

2,798,159

1,110,166

2,080,283

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

2,798,159

1,110,166

2,080,283

-

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

2,798,159

1,110,166

2,080,283

-

-

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

12,070,789

143,370,990

72,147,963

96,891,018

-

Trade debtors

21,964,208

71,967,420

79,225,466

187,614,685

3,371,479

Other debtors, deposits & prepayments

329,381

22,636,433

3,077,961

2,609,337

4,849

Short term deposits

-

-

-

5,000,000

2,338,000

Amount due from holding company

125,563,131

-

67,599,460

113,510,161

-

Amount due from related companies

159,038,795

241,435,785

337,280,730

309,489,280

-

Cash & bank balances

25,245,707

32,280,373

22,844,386

245,777

3,114

Others

99,903

986,700

480,600

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

344,311,914

512,677,701

582,656,566

715,360,258

5,717,442

 

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

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

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

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

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

TOTAL ASSET

347,110,073

513,787,867

584,736,849

715,360,258

5,717,442

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

840,446

-

6,110,473

23,160,642

-

Other creditors & accruals

3,966,057

4,666,896

5,233,486

1,022,717

2,398

Amounts owing to holding company

-

279,465,738

-

-

13,792

Amounts owing to related companies

253,686,952

221,123,656

567,650,884

672,157,596

3,296,892

Provision for taxation

5,646,689

-

-

3,803,288

6,439

Other liabilities

3,289,876

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

267,430,020

505,256,290

578,994,843

700,144,243

3,319,521

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

76,881,894

7,421,411

3,661,723

15,216,015

2,397,921

 

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

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

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

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

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

TOTAL NET ASSETS

79,680,053

8,531,577

5,742,006

15,216,015

2,397,921

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

50,000,000

2,000,000

2,000,000

2,000,000

2,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

50,000,000

2,000,000

2,000,000

2,000,000

2,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

29,680,053

6,531,577

3,742,006

13,216,015

397,921

 

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

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

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

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

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

TOTAL RESERVES

29,680,053

6,531,577

3,742,006

13,216,015

397,921

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

79,680,053

8,531,577

5,742,006

15,216,015

2,397,921

 

 

 

 

 

 

 

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

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

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

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

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

 

79,680,053

8,531,577

5,742,006

15,216,015

2,397,921

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

SIME DARBY FUTURES TRADING SDN BHD

TYPES OF FUNDS

 

 

 

 

 

Cash

25,245,707

32,280,373

22,844,386

5,245,777

2,341,114

Net Liquid Funds

25,245,707

32,280,373

22,844,386

5,245,777

2,341,114

Net Liquid Assets

64,811,105

<135,949,579>

<68,486,240>

<81,675,003>

2,397,921

Net Current Assets/(Liabilities)

76,881,894

7,421,411

3,661,723

15,216,015

2,397,921

Net Tangible Assets

79,680,053

8,531,577

5,742,006

15,216,015

2,397,921

Net Monetary Assets

64,811,105

<135,949,579>

<68,486,240>

<81,675,003>

2,397,921

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

0

0

0

Total Liabilities

267,430,020

505,256,290

578,994,843

700,144,243

3,319,521

Total Assets

347,110,073

513,787,867

584,736,849

715,360,258

5,717,442

Net Assets

79,680,053

8,531,577

5,742,006

15,216,015

2,397,921

Net Assets Backing

79,680,053

8,531,577

5,742,006

15,216,015

2,397,921

Shareholders' Funds

79,680,053

8,531,577

5,742,006

15,216,015

2,397,921

Total Share Capital

50,000,000

2,000,000

2,000,000

2,000,000

2,000,000

Total Reserves

29,680,053

6,531,577

3,742,006

13,216,015

397,921

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.09

0.06

0.04

0.01

0.71

Liquid Ratio

1.24

0.73

0.88

0.88

1.72

Current Ratio

1.29

1.01

1.01

1.02

1.72

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

2

34

49

54

0

Debtors Ratio

4

17

53

104

10,627

Creditors Ratio

0

0

4

13

0

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

0.00

Liabilities Ratio

3.36

59.22

100.83

46.01

1.38

Times Interest Earned Ratio

0.00

0.00

0.00

0.00

0.00

Assets Backing Ratio

1.59

0.17

0.11

0.30

0.05

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.65

0.24

<2.33>

2.61

92.54

Net Profit Margin

1.24

0.18

<1.75>

1.94

73.97

Return On Net Assets

37.31

44.07

<220.05>

113.43

4.47

Return On Capital Employed

37.31

44.07

<220.05>

113.43

4.47

Return On Shareholders' Funds/Equity

27.95

32.70

<164.99>

84.24

3.57

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.55.41

UK Pound

1

Rs.86.93

Euro

1

Rs.68.10

 

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.