MIRA INFORM REPORT

 

 

Report Date :           

17.05.2012

 

IDENTIFICATION DETAILS

 

Name :

KERRY INGREDIENTS (M) SDN. BHD.

 

 

Formerly Known As :

SDF - SCAN DAIRY & FOOD SDN.BHD

 

 

Registered Office :

Suite 1301, 13th Floor, City Plaza, Jalan Tebrau, Johor Bahru, Johor Darul Takzim, Zip/postal code 80300

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011 (Group)

 

 

Date of Incorporation :

13.01.1992                   

 

 

Com. Reg. No.:

232329-K

 

 

Legal Form :

Private Company Limited By Shares

 

 

Line of Business :

Manufacturing and sales of food ingredient products

 

 

No. of Employees :

500 employees (Subject); 24,045 employees (Kerry Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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

 

 


 Bottom of Form

Identification details  Bottom of Form

 

 

Verified Address

Subject name :              KERRY INGREDIENTS (M) SDN. BHD.

 

Business address :       No. 8, Jalan Hasil 2

Tampoi

Town :                           Johor Bahru

Province :                      Johor Darul Takzim

Zip/postal code :            81200

Country :                       Malaysia

Tel :                              +60 7 2332800

Fax :                             +60 7 2332900

Website :                      www.kerryasia.com

 

Registered address :    Suite 1301, 13th Floor

City Plaza, Jalan Tebrau

Town :                           Johor Bahru

Province :                      Johor Darul Takzim

Zip/postal code :            80300

Country :                       Malaysia

 

 

Summary details

 

Executive Summary

Date founded or registered :        13/01/1992

Legal form :                               Private Company Limited By Shares

Chief executive :                        Sree Dahran

Issued & paid up capital :           MYR 29,300,000

Sales turnover :                         MYR 553,941,121 (Non-consolidated 12 months, 31/12/2010)

Net income :                              MYR 72,322,775 (Non-consolidated 12 months, 31/12/2010)

Total fixed assets :                     MYR 373,932,836 (Non-consolidated 12 months, 31/12/2010)

Line of business :                       Manufacturing and sales of food ingredient products.

Staff employed :                         500 employees (Subject); 24,045 employees (Kerry 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 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 :          13/01/1992

Legal form :                   Private Company Limited By Shares

Registration no              232329-K

Registered authority :     Companies Commission of Malaysia

Registry status :            Live/Active

Previous name :             The Subject was established under the name SDF - SCAN DAIRY & FOOD SDN.

BHD. and changed to the current style on 05-01-1999.

Change of legal form :     None reported.

 

 

Management / directors

 

Key Management

Name :              Sree Dahran

Designation :     General Manager

 

Name :              Tan Peh Lim

Designation :     Plant Manager

 

 

Board of directors / other appointments

 

Appointments

Name :                          Yong May Li

Designation :                 Director and Company Secretary

Identification no :            560419-01-5064

Appointment date :         26/01/00

Address :                      No. 25, Jalan Setia 5/2

Taman Setia Indah

81100 Johor Bahru

Johor Darul Takzim

Malaysia

 

Name :                          Irene Juay Yee Luan

Designation :                 Director and Company Secretary

Identification no :            750430-01-7260

Appointment date :         02/04/10

Address :                      No. 17 Jalan Indah 18/2

Taman Bukit Indah

81200 Johor Bahru

Johor Darul Takzim

Malaysia

 

Name :                          Brian Cornelius Mehigan

Designation :                 Director

Identification no :            LA0010437

Appointment date :         01/04/10

Address :                      Ireland

 

Biography :

Brian Mehigan joined Kerry Group in 1989, having worked in practice for six years previously. He held a number of finance positions within Kerry between 1989 and 2002. He has served as Chief Financial Officer and as an executive Director on Kerry Group plc’s Board for ten years, having been appointed on 25 February 2002. He is a Fellow of the Institute of Chartered Accountants in Ireland and a graduate of National University of Ireland, Cork.

 

Name :                          Claire Salmon

Designation :                 Director

Identification no :            LB0058825

Appointment date :         28/07/08

Address :                      Singapore

 

Name :                          Mark Justin McCormack

Designation :                 Director

Identification no :            LS0011885

Appointment date :         21/01/98

Address :                      Singapore

 

Staff employed :             500 employees (Subject); 24,045 employees (Kerry Group)

 

Key Advisors

Auditors :                      DELOITTE & TOUCHE

Level 19, Uptown 11

Jalan SS21/58

Damansara

47400 Petaling Jaya

Selangor Darul Ehsan

Malaysia

 

Share capital

 

Composition

Authorized Capital :        MYR 50,000,000

No of shares :                50,000,000 Ordinary Shares

Share par value :            MYR 1

Issued capital :              MYR 29,300,000

Paid up capital :             MYR 29,300,000


 

ownership / shareholders

 

How listed :                   Full List

 

Composition

Shareholder name :        KERRY GROUP B.V.

Address :                      Veluwezoom 62

1327 AH Almere

The Netherlands

No. of shares :               29,300,000 Ordinary Shares

% of shares :                 100%

 

 

Related companies & corporate Affiliations

 

Structure

Name :                          KERRY GROUP PLC

Affiliation type :              Ultimate Holding Company

Address :                      Prince’s Street

Tralee

Co. Kerry

Ireland

 

Comments :

Kerry Group is a major international food corporation. The Group is a world leader in ingredients and flavour technologies serving the food, beverage and pharmaceutical industries and is also a leading consumer foods processor and supplier in selected EU markets.

 

Kerry Group is listed on the Irish and London Stock Exchanges. Kerry has 150 manufacturing facilities across five continents and provides over 15,000 food and ingredient products via its network of international sales and technical centres to a wide customer base in 140 countries.

 

Name :                          KERRY GROUP B.V.

Affiliation type :              Parent Company

Address :                      Veluwezoom 62

1327 AH Almere

The Netherlands

Comments :                  Investment holding Company.

 

Name :                          ESTEROL SDN. BHD.

Affiliation type :              Sister Company

Address :                      Lot 41, Lengkuk Keluli 1

Kawasan Perindustrian Bukit Raja Selatan

Seksyen 7, 40000 Shah Alam

Selangor Darul Ehsan

Malaysia

Name :                          KERRY INGREDIENTS AUSTRALIA PTY. LIMITED

Affiliation type :              Sister Company

Address :                      Cnr Holker St & Avenue Of Africa

Newington NSW2127

Australia

 

Name :                          KERRY INGREDIENTS (NZ) LIMITED

Affiliation type :              Sister Company

Address :                      11-13 Bell Avenue

Otahuhu, Auckland 1060

New Zealand

 

Name :                          KERRY INGREDIENTS (THAILAND) LIMITED

Affiliation type :              Sister Company

Address :                      No 618, Moo 4, Bangpoo Industrial Estate

Praksa Sub District, Muang District

Samutprakarn Province

Thailand

 

Name :                          KERRY INGREDIENTS (S) PTE LIMITED

Affiliation type :              Sister Company

Address :                      3 Anson Road

#27-01 Springleaf Tower

Singapore 079909

Singapore

 

Name :                          KERRY FOOD INGREDIENTS (PHILIPPINES), INC.

Affiliation type :              Sister Company

Address :                      GF/SFB#1, Mactan Economic Zone 1

Lapulapu City, Cebu

Philippines

 

Name :                          KERRY FOOD INGREDIENTS (CEBU), INC.

Affiliation type :              Sister Company

Address :                      P. Suico St., Tabok

Mandaue City, Cebu

Philippines

 

Name :                          KERRY INGREDIENTS (DE MEXICO) S.A. DE C.V.

Affiliation type :              Sister Company

Address :                      Carr. Panamericana

Salamanca Km 11.2

36660 Irapuato, Guanajuato

Mexico

 

Related companies and corporate affiliations comments

Other companies of the Kerry Group should be considered affiliates of the Subject.

 


Bank & mortgages

 

Bank Details

Name of bank :              CIMB Bank Berhad

Address :                      Malaysia

Account details :            Current Account

 

Name of bank :              ABN Amro 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

Total of Charge: 8,500,000.00

Date of Creation: 26-08-1992

Name of Chargee: ABN AMRO BANK BERHAD

Charge Status: FULLY SATISFIED

 

Total of Charge: 8,500,000.00

Date of Creation: 26-08-1992

Name of Chargee: BANK OF COMMERCE M BERHAD

Charge Status: FULLY SATISFIED

 

Total of Charge: 8,500,000.00

Date of Creation: 26-08-1992

Name of Chargee: MALAYSIAN FRENCH BANK BERHAD

Charge Status: FULLY SATISFIED

 

Total of Charge: 8,500,000.00

Date of Creation: 26-08-1992

Name of Chargee: ABN AMRO BANK BERHAD

Charge Status: FULLY SATISFIED

 

Total of Charge: 3,165,620.00

Date of Creation: 09-07-1993

Name of Chargee: ABN AMRO BANK BERHAD

Charge Status: FULLY SATISFIED

 

Total of Charge: 2,033,380.00

Date of Creation: 09-07-1993

Name of Chargee: 1. BANK OF COMMERCE M BERHAD

Charge Status: FULLY SATISFIED

 

Total of Charge: 1,000,000.00

Date of Creation: 26-04-1994

Name of Chargee: MALAYSIAN FRENCH BANK BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 1,500,000.00

Date of Creation: 26-04-1994

Name of Chargee: BANK OF COMMERCE M BERHAD

Charge Status: FULLY SATISFIED

 

Total of Charge: 1,000,000.00

Date of Creation: 26-04-1994

Name of Chargee: ABN AMRO BANK BERHAD

Charge Status: FULLY SATISFIED

 

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 :          31/12/10

Type of accounts :                     Full audited

Currency :                                 Malaysia, Ringgit (MYR)

Exchange rate :                         1 USD = MYR 3.12 as of 16-05-2012

 

Summarized Financial Information

Consolidation type :                 Non Consolidated                    Non Consolidated        Group Consolidated

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

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

Date of financial year end :     31/12/10                                    31/12/09                        31/12/11

Length of accounts :                12 months                               12 months                   12 months

Sale turnover / Income :              553,941,121                             457,327,090                  5,302,200,000

Profit before tax :                       74,334,403                                83,643,176                    433,400,000

Net income :                              72,322,775                                80,458,148                    360,700,000

Non current assets :                   209,407,645                              156,084,341                  3,616,800,000

Current assets :                         164,525,191                              125,998,760                  1,613,200,000

Inventories :                                                                                                                   658,500,000

Total assets :                            373,932,836                              282,083,101                  5,230,000,000

Current liabilities :                      137,170,380                             80,013,837                    1,246,000,000

Non current liabilities :                13,661,793                               11,291,376                   2,138,700,000

Total liabilities :                          150,832,173                              91,305,213                   3,384,700,000

Share equity :                            223,100,663                              190,777,888                 1,845,300,000

Retained earning :                      193,800,663                              161,477,888                  1,519,000,000


Comments :

The non-consolidated financial information above relates to the Subject only.

 

The above group's consolidated figures relates to the Subject's Ultimate Holding company Kerry Group PLC and it's subsidiaries.

 

 

Operation details

 

Main activities :

The Subject engages in manufacturing and sales of food ingredient products.

 

The Subject is a wholly owned subsidiary of Kerry Group PLC.

 

Kerry Group PLC , together with its subsidiaries, develops, manufactures, and delivers technology based ingredients, flavors, and integrated solutions for the food, beverage, and pharmaceutical industries worldwide. It operates in two segments, ingredients & flavors and consumer foods.

 

The ingredients & flavours segment manufactures and distributes application specific ingredients and flavors, such as savory ingredients, sweet ingredients, food coating systems, nutritional systems, and specialty protein applications

 

The consumer foods segment manufactures and supplies added value brands and customer branded foods to the Irish and the United Kingdom. This segment supplies its own brands and private label products, such as dairy spread and cheese products; meats and savory products; and chilled and frozen ready meals to retailers primarily under the Wall’s, Mattessons, Richmond, Pure, Denny, Galtee, Roscrea, Shaws, Ballyfree, Cheestrings, Charleville, Mitchelstown, LowLow, and Dairygold brand names.

 

The company operates in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. Kerry Group plc was founded in 1972 and is headquartered in Tralee, Ireland.

 

Product & services :

·         Lipid powders

·         Cheese & dairy powders

·         Snack seasonings

·         Batters and coatings

 

Purchases

Local :              Yes

International :     Worldwide

 

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 production facilities located at:

 

5496, Lorong Mak Mandin 5

Kawasan Perindustrian Mak Mandin

13400 Butterworth

Pulau Pinang

Malaysia

Tel: +60 4 3240500

 

 

Summarized country risk

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank                                          :   Central Bank of Malaysia

 

Reserve of foreign exchange & gold         :   US$135.9 billion as of 30 April 2012

Gross domestic product - GDP               :   US$ 247.781 billion

 

GPP (Purchasing power parity)               :   442.01 billion of International dollars

 

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                                      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%,

HongKong 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, Bank transfer, D/P, Credit up to 120 days

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

 

Sales Term

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

International :                 L/C, Telegraphic transfer, D/P, 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

Official and local business sources


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.29

UK Pound

1

Rs.86.61

Euro

1

Rs.68.87

 

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.