MIRA INFORM REPORT

 

 

Report Date :

02.11.2012

 

IDENTIFICATION DETAILS

 

Name :

SCOMI OILTOOLS SDN. BHD.

 

 

Formerly Known As :

KOTA MINERALS & CHEMICALS SDN BHD

 

 

Registered Office :

Level 17, 1 First Avenue, Bandar Utama, 47800 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

27.02.1982

 

 

Com. Reg. No.:

81755-D

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Drilling fluid & drilling waste management services

 

 

No. of Employees :

300 employees

 

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 :

Regular

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Malaysia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

malaysia - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

81755-D

COMPANY NAME

:

SCOMI OILTOOLS SDN. BHD.

FORMER NAME

:

KOTA MINERALS & CHEMICALS SDN BHD (12/03/2007)
KOTA TANAH TRADING SDN BHD (07/07/1987)
FIRST PENAGA TRADING SDN BHD (03/04/1985)

INCORPORATION DATE

:

27/02/1982

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LEVEL 17, 1 FIRST AVENUE, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LEVEL 17, 1 FIRST AVENUE,BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-77173000

FAX.NO.

:

03-77277935

EMAIL

:

info@scomigroup.com.my

WEB SITE

:

www.scomi.com.my

CONTACT PERSON

:

STEPHEN FREDRICK  BRACKER ( PRESIDENT )

 

 

 

INDUSTRY CODE

:

74219

PRINCIPAL ACTIVITY

:

DRILLING FLUID & DRILLING WASTE MANAGEMENT SERVICES

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO 
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 8,082,000.00 DIVIDED INTO 
ORDINARY SHARES 1,836,000 CASH AND 6,246,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 397,377,000 [2011]

NET WORTH

:

MYR 101,742,000 [2011]

 

 

 

STAFF STRENGTH

:

300 [2012]

BANKER (S)

:

HSBC BANK MALAYSIA BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

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) drilling fluid & drilling waste management services.

 

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

 

The immediate holding company of the SC is SCOMI OILTOOLS BERMUDA LTD, a company incorporated in BERMUDA.

 

The ultimate holding company of the SC is SCOMI GROUP BHD, a company incorporated in MALAYSIA.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

SCOMI OILTOOLS BERMUDA LIMITED

 

212716

8,082,000.00

100.00

 

 

 

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

------

 

 

 

8,082,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. SHAH HAKIM @ SHAHZANIM

Address

:

32, JALAN CHELAGI, OFF JALAN BRUAS, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

650225-07-5439

Date of Birth

:

25/02/1965

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

27/02/2001

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. ROZALI BIN SIDEK

Address

:

138, JALAN F6, TAMAN MELAWATI, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

710503-07-5001

Date of Birth

:

03/05/1971

 

 

 

Nationality

:

MALAYSIAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. SHAH HAKIM @ SHAHZANIM BIN ZAIN @ SHAHZANIM

Address

:

32, JALAN CHELAGI, OFF JALAN BRUAS, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

650225-07-5439

Date of Birth

:

25/02/1965

 

 

 

Nationality

:

MALAYSIAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

STEPHEN FREDRICK BRACKER

 

Position

:

PRESIDENT

 

 

 

 

 

2)

Name of Subject

:

CHONG MEI YAN

 

Position

:

COMPANY SECRETARY

 

 

 

 

 

3)

Name of Subject

:

MEENA KANTHASWAMY

 

Position

:

MARKETING MANAGER

 

 

 

 

 

4)

Name of Subject

:

NAZRULLA MAHMUD ZUHODI

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

5)

Name of Subject

:

SAHZAN BIN MOHD NOR

 

Position

:

OPERATIONS MANAGER

 

 

 

 

 

6)

Name of Subject

:

MOHD SYAHIRAN SULAIMAN

 

Position

:

EXECUTIVE

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

LEVEL 15, 1 SENTRAL, JALAN TRAVERS,K.L. CENTRAL, P.O.BOX 10192, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHONG MEI YAN

 

 

 

 

 

New IC No

:

730510-01-5582

 

Address

:

23, JALAN PP 4/12, TAMAN PUTRA PRIMA, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. ONG WEI LENG

 

 

 

 

 

New IC No

:

800322-08-5314

 

Address

:

NO.402, JALAN PANTAI, 34350 KUALA KURAU, PERAK, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

2)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

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

 

 

ENCUMBRANCE (S)


ENCUMBRANCE 1

Date of Creation

:

01/09/2005

Description Of Charge

:

ASSIGNMENT OF DEBT

 

Amount Secured

:

USD20,000,000.00

Description Of Property Affected

:

FIXED CHARGE

 

Name & Address Of Chargee

:

BUMIPUTRA-COMMERCE BANK (L) LIMITED
FEDERAL TERITORY OF LABUAM, MAIN OFFICE TOWER, FINANCIAL PSRK LABUAN, JALAN MERDEKA, LEVEL 14A, 87000 LABUAN, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 20/09/2005

Registered and Numbered 20 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

01/09/2005

Description Of Charge

:

FACILITY AGREEMENT

 

Amount Secured

:

USD20,000,000.00

Description Of Property Affected

:

FIXED CHARGE

 

Name & Address Of Chargee

:

BUMIPUTRA-COMMERCE (L) LIMITED

 

 

 

 

 

 

 

 

Form 40 Dated 20/09/2005

Registered and Numbered 21 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

Import Countries

:

ASIA



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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Percentage

:

50%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

50%

Export Market

:

ASIA

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

OIL & GAS INDUSTRIES

 

 

 

 

 

 

 

 

 

 

 

 



OPERATIONS

 

Services

:

DRILLING FLUID & DRILLING WASTE MANAGEMENT

 

 

 

 

Award

:

1 ) ENTERPRISE 50 AWARD Year :2002
2 ) ENTERPRISE 50 AWARD Year :1999

 

 

 

 

 

Competitor(s)

:

KENCANA PETROLEUM BHD
RAMUNIA FABRICATORS SDN BHD
SAPURAKENCANA PETROLEUM BHD
TANJUNG OFFSHORE BHD
ZELAN BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

2007

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

300

300

310

300

300

300

 

 

 

 

Branch

:

YES

 

 

Other Information:


The SC is principally engaged in the (as a / as an) drilling fluid & drilling waste management services.

The SC is under the Scomi Group of companies which is principally engaged in driling fluid & drilling waste management services.

The SC also has 17 or 18 business units globally where a single unit could focus on a country or a group of countries.

Besides that, the SC has 60 operations location in 29 countries. 

 

PROJECTS


No projects found in our databank 


RECENT DEVELOPMENT


August 7, 2010

The SC is cautiously optimistic over its future prospects following a collapse in crude oil prices, which has led to a nosedive in drilling activity. President Steve Bracker says the company is seeing signs of recovery in the industry with increasing global spending on oil and gas exploration and production.

He expects revenue and profit to grow by between 5% and 10% year-on-year for the next five years. We are continuing to strengthen our existing core product portfolios. We are introducing a range of Scomi Oiltools solids control equipment, which has enhancements designed by our own research and development team, he tells StarBizWeek. Bracker says the group is building a market-focused structure, where the respective country presidents promote the whole gamut of Scomi group's offerings in a country. This, he says, will be one of the group's main drivers of growth.

We will leverage on this to promote our oilfield services to new markets. We aim to provide value added services and expertise to our clients and we are an agile organisation whereby we can be what each individual market requires us to be,he says. Oil and gas companies were hit after a drop in crude oil prices clawed back the extensive drilling activity that started globally when prices moved to record levels a few years ago. Markets in the US and the North Sea were impacted but Bracker says Scomi has managed the slowdown and maintained all of its operations. We didn't shut down any of our operations although in the western hemisphere we have scaled back, he says.

Scomi Oilfield contributes about 68% and 33.5% to group revenue and profit respectively. In the past, the company enjoyed a stream of lucrative works when oil price hit an all-time high in July 2008 of about US$147 per barrel. It was then caught, like the other service providers, in the global recession. Post-recession, in view of another bullish cycle of oil price in the future, the group has undertaken steps to deal with its debt, mainly the RM630mil nominal value Murabahah medium-term notes.

Besides that, Scomi Oiltools has also streamlined and rationalised its operations, which has resulted in an annual cost savings of about US$20mil starting last year. As of June, Scomi Oilfield's orderbook stood at US$600mil. Bracker says the Asian and the Middle East markets remain positive and are key growth regions for the company.

This is also where we have a stronger foothold and have recorded some successes with new strategic contracts, he says.We are looking to enhance our drilling fluids and drilling waste management portfolios with new technologies and products. We will continue to leverage on our expertise by expanding our portfolio through development of green products, says Bracker


CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-77173000

Match

:

N/A

 

 

 

Address Provided by Client

:

5TH FLOOR WISMA CHASE PERDANA 50490 KUALA LUMPUR

Current Address

:

LEVEL 17, 1 FIRST AVENUE,BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


we contacted one of the staff from the SC and she provided some information on the SC.

The SC had shifted from the address provided.

 

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

24.36%

]

 

Return on Net Assets

:

Favourable

[

37.24%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC's management have been efficient in controlling its operating costs. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Acceptable

[

1.20 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

2.48 Times

]

 

 

 

 

 

 

 

 

The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

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

74219 : Other architectural and engineering activities and related technical consultancy service n.e.c.

 

 

INDUSTRY :

CONSTRUCTION

 

 

 


Construction industry expected to play a vital role by contribution of 7%to the GDP growth in 2012 . The productivity levels of the construction anticipated to grow by 5.6% in 2012, compared with 3.09% 2011 . The Government and the private sector work together in order to achieve this target. Malaysia's economy was expected to sustain its growth momentum in 2012, with productivity growing by more than 4%, driven by the construction.


The productivity levels of the construction and services sectors are anticipated to grow by 5.6% and 4.9%, respectively, in 2012, compared with 3.09% and 4.92% year 2011.


The construction sector expected turns to grow eventhough local players be presured by eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries due to goverment new projects. Growth in the construction sector more than doubled to 6.4%, led mainly by the residential and civil engineering sub-sectors construction at first quarter 2012.


The acceleration of government project such as the remaining contracts for six packages of the elevated portion of the Sungai Buloh-Kajang (SBK) line, the RM7 billion West Coast Expressway (WCE), the RM7 billion electrified double tracking (EDT) from Gemas to Johor Baru and the RM30 billion Sarawak Corridor of Renewable Energy (SCORE),easily increase job oppurtunity in year 2012. 


Major infrastructure improvements in the Klang Valley such as the MRT (My Rapid Transit), River Rehabilitation and covered walkway projects are expected to boost property prices.


This sector estimate get no less than RM20 billion at the end of year 2012. The sector started strongly with RM5.9 billion job wins in the first quarter 2012, which was already 74.5 per cent of the total RM7.9 billion awarded at the year 2011. Government would progressively award contracts over the local players at third quarter 2012, to ensure the projects completed by July 2017. The construction sector is likely to have a banner year at year 2012 with up to RM20 billion worth of jobs to be awarded.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth


CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1982, the SC is a Private Limited company, focusing on drilling fluid & drilling waste management services. The SC has been in business for 3 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 capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.


Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. The SC is a fairly large and rapidly growing company with over 300 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. 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. 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 managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. However, the SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 101,742,000, the SC should be able to maintain its business in the near terms.


Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. 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.


Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


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)

SCOMI OILTOOLS SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

SUMMARY

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

397,377,000

203,078,000

229,806,000

208,187,000

 

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

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

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

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

Total Turnover

397,377,000

203,078,000

229,806,000

208,187,000

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

37,884,000

30,309,000

8,356,000

4,475,000

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

37,884,000

30,309,000

8,356,000

4,475,000

Taxation

<13,101,000>

<5,557,000>

3,319,000

28,971,000

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

24,783,000

24,752,000

11,675,000

33,446,000

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

44,769,000

20,017,000

8,342,000

<29,105,000>

 

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

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

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

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

As restated

44,769,000

20,017,000

8,342,000

<29,105,000>

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

69,552,000

44,769,000

20,017,000

4,341,000

- General

-

-

-

4,001,000

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

69,552,000

44,769,000

20,017,000

8,342,000

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Term loan / Borrowing

-

-

6,960,000

6,195

Others

-

6,242,000

662,000

516

 

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

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

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

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

 

-

6,242,000

7,622,000

6,711

 

 

 

BALANCE SHEET

 

 

SCOMI OILTOOLS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

49,508,000

43,373,000

45,890,000

51,293,000

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Subsidiary companies

-

1,004,000

1,004,000

-

Investment properties

-

1,215,000

1,360,000

1,505,000

Deferred assets

-

41,587,000

47,144,000

43,825,000

Others

-

-

-

4,000

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,071,000

43,806,000

49,508,000

45,334,000

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

50,579,000

87,179,000

95,398,000

96,627,000

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

-

43,321,000

40,507,000

39,139,000

Trade debtors

-

17,746,000

3,643,000

53,570,000

Other debtors, deposits & prepayments

-

7,753,000

4,647,000

4,844,000

Short term deposits

-

635,000

621,000

843,000

Amount due from holding company

-

25,133,000

22,816,000

21,894,000

Amount due from related companies

-

74,475,000

63,915,000

14,481,000

Cash & bank balances

-

21,521,000

15,466,000

6,004,000

Others

-

551,000

16,000

-

 

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

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

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

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

TOTAL CURRENT ASSETS

303,423,000

191,135,000

151,631,000

140,775,000

 

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

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

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

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

TOTAL ASSET

354,002,000

278,314,000

247,029,000

237,402,000

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

-

21,665,000

16,792,000

21,028,000

Other creditors & accruals

-

20,618,000

20,899,000

22,679,000

Short term borrowings/Term loans

-

-

-

3,101,000

Other borrowings

-

22,821,000

377,000

-

Bill & acceptances payable

-

22,491,000

5,828,000

20,343,000

Amounts owing to holding company

-

13,962,000

-

-

Amounts owing to related companies

-

106,185,000

157,100,000

134,890,000

Other liabilities

-

-

342,000

1,127,000

 

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

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

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

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

TOTAL CURRENT LIABILITIES

252,260,000

207,742,000

201,338,000

203,168,000

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

51,163,000

<16,607,000>

<49,707,000>

<62,393,000>

 

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

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

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

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

TOTAL NET ASSETS

101,742,000

70,572,000

45,691,000

34,234,000

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

8,082,000

8,082,000

8,082,000

8,082,000

 

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

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

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

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

TOTAL SHARE CAPITAL

8,082,000

8,082,000

8,082,000

8,082,000

 

 

 

 

 

RESERVES

 

 

 

 

Share premium

24,108,000

11,000

11,000

11,000

Capital reserve

-

6,408,000

6,279,000

-

Retained profit/(loss) carried forward

69,552,000

44,769,000

20,017,000

8,342,000

Others

-

11,302,000

11,302,000

17,799,000

 

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

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

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

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

TOTAL RESERVES

93,660,000

62,490,000

37,609,000

26,152,000

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

101,742,000

70,572,000

45,691,000

34,234,000

 

 

 

 

 

 

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

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

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

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

 

101,742,000

70,572,000

45,691,000

34,234,000

 

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

SCOMI OILTOOLS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

Cash

-

22,156,000

16,087,000

6,847,000

Net Liquid Funds

-

22,156,000

16,087,000

6,847,000

Net Liquid Assets

51,163,000

<59,928,000>

<90,214,000>

<101,532,000>

Net Current Assets/(Liabilities)

51,163,000

<16,607,000>

<49,707,000>

<62,393,000>

Net Tangible Assets

101,742,000

70,572,000

45,691,000

34,234,000

Net Monetary Assets

51,163,000

<59,928,000>

<90,214,000>

<101,532,000>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

-

22,821,000

377,000

3,101,000

Total Liabilities

252,260,000

207,742,000

201,338,000

203,168,000

Total Assets

354,002,000

278,314,000

247,029,000

237,402,000

Net Assets

101,742,000

70,572,000

45,691,000

34,234,000

Net Assets Backing

101,742,000

70,572,000

45,691,000

34,234,000

Shareholders' Funds

101,742,000

70,572,000

45,691,000

34,234,000

Total Share Capital

8,082,000

8,082,000

8,082,000

8,082,000

Total Reserves

93,660,000

62,490,000

37,609,000

26,152,000

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

-

0.11

0.08

0.03

Liquid Ratio

-

0.71

0.55

0.50

Current Ratio

1.20

0.92

0.75

0.69

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

-

78

64

69

Debtors Ratio

-

32

6

94

Creditors Ratio

-

39

27

37

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

-

0.32

0.01

0.09

Liabilities Ratio

2.48

2.94

4.41

5.93

Times Interest Earned Ratio

-

5.86

2.10

667.82

Assets Backing Ratio

12.59

8.73

5.65

4.24

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

9.53

14.92

3.64

2.15

Net Profit Margin

6.24

12.19

5.08

16.07

Return On Net Assets

37.24

51.79

34.97

13.09

Return On Capital Employed

37.24

51.79

34.97

13.09

Return On Shareholders' Funds/Equity

24.36

35.07

25.55

97.70

Dividend Pay Out Ratio (Times)

-

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

-

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.79

UK Pound

1

Rs.86.77

Euro

1

Rs.69.71

 

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.