MIRA INFORM REPORT

 

 

Report Date :

02.06.2012

 

IDENTIFICATION DETAILS

 

Name :

KL-KEPONG OLEOMAS SDN. BHD.

 

 

Formerly Known As :

ELVISSA CORPORATION SDN.BHD.

 

 

Registered Office :

C/o KUALA LUMPUR KEPONG BERHAD

Wisma Taiko 1 Jalan S.P.Seenivasagam Ipoh Perak Darul Ridzuan30000

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.09.2011

 

 

Date of Incorporation :

22.07.2002

 

 

Com. Reg. No.:

587027-T

 

 

Legal Form :

Private Company Limited By Shares

 

 

Line of Business :

Manufacturing and sales of Oleo chemicals.

 

 

No. of Employees :

38,000 employees (KLK Group)

 

 

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 :

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

 

 


IDENTIFICATION DETAILS

 

Verified Address

Subject name :              KL-KEPONG OLEOMAS SDN. BHD.

Business address :        No. 25 Jalan Sungai Pinang 5/18, Fasa 2D

Taman Perindustrian Pulau Indah

Town :                           Pelabuhan Klang

Province :                      Selangor Darul Ehsan

Zip/postal code :            42920

Country :                       Malaysia

Tel :                              +60 3 31012633

Fax :                             +60 3 31013299

Website :                      www.klkoleo.com.my

 

Registered address :      C/o KUALA LUMPUR KEPONG BERHAD

Wisma Taiko

1 Jalan S.P.Seenivasagam

Town :                           Ipoh

Province :                      Perak Darul Ridzuan

Zip/postal code :            30000

Country :                       Malaysia

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        22/07/2002

Legal form :                               Private Company Limited By Shares

Chief executive :                        Yeow Ah Kow

Issued & paid up capital :           MYR 137,650,000

Sales turnover :                         MYR 1,472,238,000 (Consolidated 12 months, 30/09/2011)

Net income :                              MYR 57,818,000 (Consolidated 12 months, 30/09/2011)

Total fixed assets :                     MYR 1,111,563,000 (Consolidated 12 months, 30/09/2011)

Line of business :                       Manufacturing and sales of oleochemicals.

Staff employed :                         38,000 employees (KLK Group)

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is progressing

Management experience :           Management is adequately experienced

Financial performance :              Financial performance is very good

Organization structure :              Organizational structure is consistent

Detrimental :                              No detrimental records found

Payment history :                      No payment delays noted

Comments :                              Larger credit can still be considered. The Subject is well positioned in the market

and the financial stability of the group is positive.

 

STATUTORY DETAILS

 

Registry Data

Registration date :          22/07/2002

Legal form :                   Private Company Limited By Shares

Registration no              587027-T

Registered authority :     Companies Commission of Malaysia

Registry status :            Live/Active

Previous name :             The Subject was established under the name ELVISSA CORPORATION SDN.

BHD. and changed to the current style on 15-10-2002.

Change of legal form :     None reported.

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                          Yeow Ah Kow

Designation :                 Director

 

Name :                          Khoo Ping Khean

Designation :                 Director

 

Name :                          Madhev A/L Bala Subramaniam

Designation :                 Director

 

Name :                          Saw Lee Chyan

Designation :                 Director

 

Name :                          Pung Kok Hooi

Designation :                 Director

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Khoo Ping Khean

Designation :                 Director

Identification no :            530121-08-5943

Appointment date :         27/03/06

Address :                      22 Jalan USJ 3/3N

Subang Jaya

47600 Petaling Jaya

Selangor Darul Ehsan

Malaysia

 

Name :                          Yeow Ah Kow

Designation :                 Director

Identification no :            540203-05-5085

Appointment date :         24/10/02

Address :                      3, Jalan SS 19/3C

Subang Jaya

47500 Petaling Jaya

Selangor Darul Ehsan

Malaysia

 

Name :                          Madhev A/L Bala Subramaniam

Designation :                 Director

Identification no :            600913-71-5115

Appointment date :         27/03/06

Address :                      No. 4 SS 24/9

Taman Megah

47301 Petaling Jaya

Selangor Darul Ehsan

Malaysia

 

Name :                          Pung Kok Hooi

Designation :                 Director and Company Secretary

Identification no :            660414-07-5357

Appointment date :         26/12/08

Address :                      No. 1, Jalan SS 24/19

Taman Megah

47301 Petaling Jaya

Selangor Darul Ehsan

Malaysia

 

Name :                          Saw Lee Chyan

Designation :                 Director

Identification no :            741108-07-5521

Appointment date :         18/04/11

Address :                      30, Jalan SHB 5

Subang Heights

47500 Subang Jaya

Selangor Darul Ehsan

Malaysia

 

Name :                          Yap Miow Kien

Designation :                 Company Secretary

Identification no :            681220-05-5334

Appointment date :         23/09/09

Address :                      12, Lingkaran Meru Valley

1A, Lakeview Villa

Meru Valley Golf Resort

Jalan Bukit Meru

30020 Ipoh

Perak Darul Ridzuan

Malaysia

 

Staff employed :             38,000 employees (KLK Group)

 

Key Advisors

 

Auditors :                      KPMG

KPMG Tower

8 First Avenue

Bandar Utama, 47800 Petaling Jaya

Selangor Darul Ehsan

Malaysia

 

SHARE CAPITAL

 

Composition

Authorized Capital :        MYR 150,000,000

No of shares :                100,000,000 Ordinary Shares / 500,000,000 Preference Share

Share par value :            MYR 1 for Ordinary Share / MYR 0.1 for Preference Share

Issued capital :              MYR 137,650,000

Paid up capital :             MYR 137,650,000

 

OWNERSHIP / SHAREHOLDERS

 

How listed : Full List

 

Composition

Shareholder name :        PALM-OLEO SDN. BHD.

Address :                      Lot 1245, Kundang Industrial Estate

48020 Rawang

Selangor Darul Ehsan

Malaysia

No. of shares :               95,300,000 Ordinary Shares

 

Shareholder name :        KL-KEPONG INDUSTRIAL HOLDINGS SDN.BHD.

Address :                      Level 8, Menara KLK,

No. 1, Jalan PJU 7/6

Mutiara Damansara

47810 Petaling Jaya

Selangor Darul Ehsan

Malaysia

No. of shares :               188,250,000 Preference Shares / 2,350,000 Ordinary Shares

 

Shareholder name :        KUALA LUMPUR KEPONG BERHAD

Address :                      Wisma Taiko

1 Jalan S.P.Seenivasagam

Ipoh 30000

Perak

Malaysia

No. of shares :               188,250,000 Preference Shares / 2,350,000 Ordinary Shares

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          KUALA LUMPUR KEPONG BERHAD

Affiliation type :              Ultimate Holding Company

Address :                      Wisma Taiko

1 Jalan S.P.Seenivasagam

Ipoh 30000

Perak

Malaysia

Comments :                  KUALA LUMPUR KEPONG BERHAD (“KLK”), a company incorporated in

Malaysia, employs under its Group more than 38,000 employees worldwide. It is

listed on the Main Market of Bursa Malaysia Securities Berhad and has a market

capitalisation of approximately RM18.1 billion as at 30 September 2010. KLK is

Malaysia’s third-largest palm oil producer.

Started as a plantation company more than 100 years ago, plantations (oil palm

and rubber) still lead as KLK’s core business activity. The Group has a plantation

land bank of more than 250,000 hectares in Malaysia (Peninsular and Sabah) and

Indonesia (Belitung, Sumatra and Kalimantan). Since the 1990s, the Group has

diversify into resource-based manufacturing (oleochemicals, derivatives and

specialty chemicals), property development and retailing (personal care products,

toiletries and foods) with a worldwide operational and retailing presence.

 

Name :                          KL-KEPONG INDUSTRIAL HOLDINGS SDN.BHD.

Affiliation type :              Shareholder

Address :                      Level 8, Menara KLK,

No. 1, Jalan PJU 7/6

Mutiara Damansara

47810 Petaling Jaya

Selangor Darul Ehsan

Malaysia

Comments :                  Investment holding. The company is 100% owned by KUALA LUMPUR KEPONG

BERHAD.

 

Name :                          PALM-OLEO SDN. BHD.

Affiliation type :              Shareholder

Address :                      Lot 1245, Kundang Industrial Estate

48020 Rawang

Selangor Darul Ehsan

Malaysia

Comments :                  Manufacturer of fatty acid and glycerine. The company is 80% owned by KUALA

LUMPUR KEPONG BERHAD.

 

Name :                          KLK BIOENERGY SDN BHD

Affiliation type :              Wholly-owned Subsidiary

Address :                      11 Jalan Utas 15/7

40200 Shah Alam

Selangor Darul Ehsan

Malaysia

Comments :                  Manufacturing of methyl esters.

 

Name :                          PALM-OLEO (KLANG) SDN. BHD.

Affiliation type :              Sister Company

Address :                      Lot 1, Solok Waja 3

Bukit Raja Industrial Estate

P.O. Box 83

41070 Klang

Selangor Darul Ehsan

Malaysia

Comments :                  Manufacturing of oleochemicals.

 

Name :                          KSP MANUFACTURING SDN. BHD.

Affiliation type :              Sister Company

Address :                      Lot 1245, Kundang Industrial Estate

48020 Rawang

Selangor Darul Ehsan

Malaysia

Comments :                  Manufacturing of soap noodles.

 

Name :                          KLK EMMERICH GMBH

Affiliation type :              Sister Company

Address :                      Steintor 9

46446 Emmerich

Germany

Comments :                  Manufacturing of fatty.

 

Name :                          KL-KEPONG PROPERTY DEVELOPMENT SDN. BHD.

Affiliation type :              Sister Company

Address :                      Suite 1A-1, Level 1, Menara KLK

No. 1, Jalan PJU 7/6

Mutiara Damansara

47810 Petaling Jaya

Selangor Darul Ehsan

Malaysia

Comments :                  Property development.

 

Name :                          KL-KEPONG COUNTRY HOMES SDN BHD

Affiliation type :              Sister Company

Address :                      Suite 1A-1, Level 1, Menara KLK

No. 1 Jalan PJU 7/6, Mutiara Damansara

47810 Petaling Jaya

Selangor Darul Ehsan

Malaysia

Comments :                  Property development.

 

Name :                          CRABTREE & EVELYN (MALAYSIA) SDN BHD

Affiliation type :              Sister Company

Address :                      Level 8, Menara KLK

No. 1, Jalan PJU 7/6

Mutiara Damansara

47810 Petaling Jaya

Selangor Darul Ehsan

Malaysia

Comments :                  Retailing of toiletries.

 

Related companies and corporate

affiliations comments:     Other companies of the Kuala Lumpur Kepong Berhad Group should be

considered affiliates of the Subject.

 

BANK & MORTGAGES

 

Bank Details

 

Name of bank :              HSBC Bank Malaysia Berhad

Address :                      Malaysia

Account details :            Current Account

 

Name of bank :              Malayan Banking Berhad (Maybank)

Address :                      Malaysia

Account details :            Current Account

 

Name of bank :              CIMB Bank Berhad

Address :                      Malaysia

Account details :            Current Account

Comments :                  It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first

with the Subject if banker's references are required.

 

Mortgages :                   None reported.

 

Legal Fillings

Bankruptcy fillings :        None reported.

Court judgements :         None reported.

Tax liens :                     None reported.

Others :                        None reported.

 


FINANCIAL DATA

 

Description

Source of financial statement :    Commercial Registry Filings

Financial statement date :          30/09/11

Type of accounts :                     Full audited

Currency :                                 Malaysia, Ringgit (MYR)

Exchange rate :                         1 USD = MYR 3.17 as of 31-05-2012

 

Summarized Financial Information

Consolidation type :                   Consolidated                 Consolidated                 Group Consolidated

Currency :                                 Malaysia, Ringgit (MYR) Malaysia,Ringgit (MYR) Malaysia, Ringgit (MYR)

Denomination :                          (x1) One                        (x1) One                        (x1) One

Date of financial year end :          30/09/11                        30/09/10                        30/09/11

Length of accounts :                   12 months                     12 months                     12 months

Sale turnover / Income :             1,472,238,000                697,036,000                  10,743,252,000

Gross profit :                                                                                                     3,001,494,000

Operating profit :                                                                                                2,112,670,000

Profit before tax :                       58,446,000                    40,845,000                    2,066,205,000

Net income :                              57,818,000                    40,845,000                    1,645,531,000

Non current assets :                   517,621,000                  471,884,000                  6,192,383,000

Current assets :                         593,942,000                  356,345,000                  4,777,475,000

Inventories :                                                                                                       1,673,013,000

Total assets :                            1,111,563,000                828,229,000                  10,969,858,000

Current liabilities :                      462,007,000                 253,174,000                  2,507,542,000

Non current liabilities :                20,909,000                    0.00                              996,245,000

Total liabilities :                          482,916,000                  253,174,000                  3,503,787,000

Share equity :                            628,647,000                  575,055,000                  7,466,071,000

 

Comments :                              The consolidated financial information above relates to the Subject and its

subsidiary Klk Bioenergy Sdn Bhd.

 

The group’s consolidated financial information above relates to the Subject’s

Parent Company Kuala Lumpur Kepong Berhad and all its subsidiaries which

include the Subject.


OPERATION DETAILS

 

Main activities :                         The Subject engages in manufacturing and sales of oleochemicals.

The Subject is part of Kuala Lumpur Kepong Berhad (KLK), which is

engaged in the business of producing and processing palm products and

natural rubber on its plantations. The Company’s subsidiaries are engaged

in the business of plantation, manufacturing, retailing, property

development and investment holding. The Company has a plantation land

bank of more than 250,000 hectares in Malaysia (Peninsular and Sabah)

and Indonesia (Belitung, Sumatera and Kalimantan). It operates in six

business segments: plantation, manufacturing, retailing, property

development, investment holding and others.

Product & services :                   Oleochemicals such as natural fatty alcohols, fatty alcohols, methyl esters,

methyl ester sulfonate etc

 

Brand :                                      Palmerol® Fatty Alcohols

Palmester™ Methyl Esters

Palmfonate™ Methyl Ester Sulfonate ("MES")

 

Purchases

Local :                                      Yes

International :                             South East Asia

 

Sales

Local :                                      Yes

International :                             Worldwide

 

Property & Assets

Premises :                                The Subject operates from premises located at the verified heading

address consisting of production facilities, warehouse and administrative

office.

 

Branches :                                In addition the Subject operates from a group headquarters located at:

Wisma Taiko,

1, Jalan S. P. Seenivasagam

30000 Ipoh

Perak Darul Ridzuan

Malaysia

Tel: +60 5 2417844

Fax: +60 5 2535018

 

SUMMARIZED COUNTRY RISK

Gross Domestic Products (GDP) & Economic Overview

 

Central bank :                                        Central Bank of Malaysia

Reserve of foreign exchange & gold :       US$ 136.1 billion as of 15 May 2012

Gross domestic product - GDP :             US$ 247.781 billion

GPP (Purchasing power parity) :             US$ 442.01 billion of International dollar

GDP per capita - current prices :             US$ 8,624

 

GDP - composition by sector :                agriculture: 9.4%

industry: 40.9%

services: 49.7%

 

Inflation :                                               2008: 5.4%

2009: 0.6%

2010: 1.7%

 

Unemployment rate :                              2008: 3.3%

2009: 3.6%

2010: 3.3%

Public debt

(General Government gross debt as

a % GDP):                                            2008: 42.8%

2009: 55.4%

2010: 54.2%

 

Government bond ratings :                      Standard & Poor's: A-/Stable/A-2

Moody's rating: A3

Moody's outlook: STA

Market value of publicly traded

shares:                                                             US$420 billion

Largest companies in the country :          CIMB Group Holdings (Banking), Sime Darby (Conglomerates), Public

Bank (Banking), Maybank (Banking), Tenaga Nasional(Utilities), Petronas Chemicals, Maxis Berhad

 

Trade & Competitiveness Overview

Total exports :                                       US$210.3 billion

Exports commodities :                           electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals

Total imports :                                       US$156.2 billion

Imports commodities :                            electronics, machinery, petroleum products, plastics, vehicles, iron and

steel products, chemicals

Export - major partners :                         US 15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand 5%, Hong Kong 4.6%

Import - major partners :                         Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan 5.7%,

Thailand 5.3%, South Korea 4.9%, Germany 4.6%, Indonesia 4.2%

 

FDI Inflows :                                          2007: US$8,538 million

2008: US$7,318 million

2009: US$1,381 million

 

FDI Outflows :                                        2007: US$11,280 million

2008: US$14,988 million

2009: US$8,038 million

 

Best countries for doing business :          21 out of 183 countries

Global competitiveness ranking : 26 (ranking by country on a basis of 133, the first is the best)

 

Country and Population Overview

 

Total population :                                   28.23 million

Total area :                                            329,847 km2

Capital :                                                Kuala Lumpur

Currency :                                             Malaysia Ringgits (MYR)

Internet users as % of total

population:                                            57.61%

 


PAYMENT HISTORY

 

Purchase Term

Local : Prepayment, D/P, D/A, Bank transfer, Credit up to 120 days

International : L/C, D/P, D/A, Prepayment, Telegraphic transfer, Credit up to 120 days

 

Sales Term

Local : Prepayment, D/P, D/A, Bank transfer, Credit up to 120 days

International : L/C, D/P, D/A, Prepayment, Telegraphic transfer, Credit up to 120 days

 

Trade Reference/ Payment

 

Behaviour

Comments : As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but based

on our research, payments are believed to be met without delay.

Investigation Note

Sources            : Interviews and material provided by the Subject

: Other official and local business sources


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.92

UK Pound

1

Rs.86.03

Euro

1

Rs.69.13

 

 

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.