MIRA INFORM REPORT

Report Date :

05.11.2012

IDENTIFICATION DETAILS

Name :	GREENWELL OLEOCHEMICALS SDN. BHD.
Formerly Known As :	GREENWELL TRADING SDN BHD
Registered Office :	52b, Persiaran Green Hill, 30450 Ipoh, Perak
Country :	Malaysia
Financials (as on) :	31.12.2011
Date of Incorporation :	24.04.1998
Com. Reg. No.:	461439-M
Legal Form :	Private Limited
Line of Business :	Trading of Oleochemicals
No. of Employees :	10

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	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 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Malaysia	A2	A2

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.

:

461439-M

COMPANY NAME

:

GREENWELL OLEOCHEMICALS SDN. BHD.

FORMER NAME

:

GREENWELL TRADING SDN BHD (20/04/2000)
UNI-IVORY MARKETING SDN BHD (23/06/1998)
GREENWELL SPECIALTY CHEMICAL SDN BHD

INCORPORATION DATE

:

24/04/1998

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

52B, PERSIARAN GREEN HILL, 30450 IPOH, PERAK, MALAYSIA.

BUSINESS ADDRESS

:

18, JLN BULAN BT U5/BT, SEC U5, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78468625

FAX.NO.

:

03-78468867

CONTACT PERSON

:

TAN KOK HOONG ( DIRECTOR )

INDUSTRY CODE

:

51499

PRINCIPAL ACTIVITY

:

TRADING OF OF OLEOCHEMICALS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,000,000.00 DIVIDED INTO
ORDINARY SHARES 400,000 CASH AND 1,600,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 49,153,531 [2011]

NET WORTH

:

MYR 3,953,266 [2011]

STAFF STRENGTH

:

10 [2012]

BANKER (S)

:

HSBC BANK MALAYSIA BHD MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

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 of oleochemicals.

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

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. TAN KOK HOONG +	19, JALAN USJ 6/2H, UEP SUBANG JAYA, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.	560613-71-5099 4968597	1,000,000.00	50.00
MR. HO KEE PEE +	2, JALAN USJ 20/6K, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.	531207-03-5511 8159401	500,000.00	25.00
MR. LIM LOI HENG +	150-13-4, VILLA FLORA CONDOMINIUM, JALAN BURHANUDDIN HELMI, TTDI, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	510906-08-5179 4125205	500,000.00	25.00
			---------------	------
			2,000,000.00	100.00
			============	=====

+ Also Director

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

Local No	Company	(%)	As At
539465	EUREKA BINTANG SDN BHD	100	31/12/2011

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. HO KEE PEE
Address	:	2, JALAN USJ 20/6K, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	8159401
New IC No	:	531207-03-5511
Date of Birth	:	07/12/1953
Nationality	:	MALAYSIAN CHINESE

DIRECTOR 2

Name Of Subject	:	MR. LIM LOI HENG
Address	:	150-13-4, VILLA FLORA CONDOMINIUM, JALAN BURHANUDDIN HELMI, TTDI, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	4125205
New IC No	:	510906-08-5179
Date of Birth	:	06/09/1951
Nationality	:	MALAYSIAN CHINESE
Date of Appointment	:	06/07/2012

DIRECTOR 3

Name Of Subject	:	MR. TAN KOK HOONG
Address	:	19, JALAN USJ 6/2H, UEP SUBANG JAYA, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	4968597
New IC No	:	560613-71-5099
Date of Birth	:	13/06/1956
Nationality	:	MALAYSIAN CHINESE

MANAGEMENT

1)	Name of Subject	:	TAN KOK HOONG
	Position	:	DIRECTOR

AUDITOR

Auditor	:	FOLKS DFK & CO
Auditor' Address	:	48A, PERSIARAN GREEN HILL, 1ST FLOOR, 30450 IPOH, PERAK, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. HUNG SOW MEI
	IC / PP No	:	4750911
	New IC No	:	550415-08-6552
	Address	:	NO.52B, PERSIARAN GREEN HILL, 30450 IPOH, PERAK, MALAYSIA.

2)	Company Secretary	:	MS. CHOO LIH JIUN
	IC / PP No	:	A2118682
	New IC No	:	720706-08-5276
	Address	:	52B,PERSIARAN GREEN HILL, 30450 IPOH, PERAK, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

2)

Name

:

MALAYAN BANKING BHD

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

ENCUMBRANCE (S)

ENCUMBRANCE 1

Date of Creation

:

11/11/2002

Description Of Charge

:

OPEN CHARGE

Amount Secured

:

O/D

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

Form 40 Dated

Registered and Numbered 1 In The Register of Charges

ENCUMBRANCE 2

Date of Creation

:

26/12/2006

Description Of Charge

:

N/A

Amount Secured

:

RM382,500.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

MALAYAN BANKING BHD

Form 40 Dated

Registered and Numbered 3 In The Register of Charges

ENCUMBRANCE 3

Date of Creation

:

27/05/2009

Description Of Charge

:

A MEMORANDUM OF DEPOSIT OF FIXED DEPOSIT AND/OR NEGOTIABLE CERTIFICATE OF DEPOSIT DATED OF 27/05/2009

Amount Secured

:

N/A

Description Of Property Affected

:

AL MONIES DUE AN DOWING UNDER THE MEMORANDUM OF DEPOSIT OF FIXED DEPOSIT AND/OR NEGOTIABLE CERTIFICATE OF DEPOSIT

Name & Address Of Chargee

:

MALAYAN BANKING BHD
MENARA MAYBANK, 100, JALAN TUN PERAK, 14TH FLOOR, 50050 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Form 40 Dated

Registered and Numbered 4 In The Register of Charges

LEGAL CHECK AGAINST SC

* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC

* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES

The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	]	Good 31-60 Days	[	X	]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[		]

CLIENTELE

Local	:	N/A
Overseas	:	N/A

The SC refused to disclose its clientele information.

OPERATIONS

Goods Traded

:

OLEOCHEMICALS

Competitor(s)

:

BRENNTAG SDN BHD
KZH RESOURCES SDN BHD
TAIKO MARKETING SDN BHD
TEXCHEM RESOURCES BHD.
TITAN TRADING CORP. SDN BHD

Total Number of Employees:
YEAR	2012	2011
GROUP	N/A	N/A
COMPANY	10	6

Branch

:

NO

Other Information:

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

The SC is engaged in the sale of oleochemicals products.

The SC sells the products according to its customers' orders.

PROJECTS

No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	0378468625
Current Telephone Number	:	03-78468625
Match	:	YES
Address Provided by Client	:	18, JLN BULAN BT U5/BT, SEC U5,40150,SHAH ALAM,SELANGOR.
Current Address	:	18, JLN BULAN BT U5/BT, SEC U5, 40150 SHAH ALAM, SELANGOR, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2008 - 2011	]
Profit/(Loss) Before Tax	:	Increased	[	2008 - 2011	]
Return on Shareholder Funds	:	Favourable	[	39.95%	]
Return on Net Assets	:	Favourable	[	51.79%	]
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. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	9 Days	]
Debtor Ratio	:	Favourable	[	45 Days	]
Creditors Ratio	:	Favourable	[	32 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	[	1.39 Times	]
Current Ratio	:	Unfavourable	[	1.60 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	:	Favourable	[	32.56 Times	]
Gearing Ratio	:	Favourable	[	0.07 Times	]
The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
Generally, the SC's performance has improved with higher turnover and profit. The SC 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. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.
Overall financial condition of the SC : STRONG

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
51499 : Wholesale of other intermediate products, waste and scrap n.e.c.
INDUSTRY :	MANUFACTURING
The manufacturing sector is expected to be driven by higher value-added activities in Malaysia.The GDP growth for first quarter 2012 indicating manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia recorded a 12% jump in approved investments in the manufacturing sector in the first quarter of 2012 compared with the corresponding period 2011. According to Federation of Malaysian Manufacturers (FMM), manufacturing sector expected to improve in the third quarter 2012 despite concerns over external developments and the rising cost of production.
The rubber products sub-sector is expected to remain resilient supported by continuous improvements in medical and healthcare standards in emerging markets as well as demand from niche markets such as the oil and gas sector for rubber hoses. Malaysia rubber exports are forecast to grow at 10%, at the end of 2012 driven by global demand for medical gloves as well as rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber shipments in Malaysia due to hospitals and clinics place more intrest on rising health and hygiene awareness.
The Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.
Chemical production are expected to show 6.2% in year 2012 and 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.
According to Malaysian Iron and Steel Industry Federation, first half of 2012 would remain weak for the local steel industry due to eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries. At first quarter 2012, the average local steel price is trading atRM2,300 per tonne compared with the average international price of US$740 (RM2,331) per tonne.
According to the Department of Statistics, Malaysia during the first quarter 2012, the manufacturing output increased due to activities in major sub-sectors such as petroleum, chemical, rubber and plastic products (10.5 %), and non-metallic mineral products, basic metal and fabricated metal products (3.9 %). Meanwhile, it's also announced that the manufacturing sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared with RM47.7 billion in May 2011. The Industrial Production Index (IPI ) increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %).
Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such as solar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1998, the SC is a Private Limited company, focusing on trading of of oleochemicals. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.

The SC's business operation is supported by 10 employees. Overall, we regard that the SC's management capability is average.

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. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds 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 lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 3,953,266, 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.

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)

GREENWELL OLEOCHEMICALS SDN. BHD.

Financial Year End	31/12/2011	31/12/2010	31/12/2009	31/12/2008
Months	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	GROUP
Audited Account	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL
Currency	MYR	MYR	MYR	MYR
TURNOVER	49,153,531	28,085,837	26,137,480	29,489,932
Other Income	434,353	29,006	-	-
	----------------	----------------	----------------	----------------
Total Turnover	49,587,884	28,114,843	26,137,480	29,489,932
Costs of Goods Sold	<46,276,723>	<26,026,455>	-	-
	----------------	----------------	----------------	----------------
Gross Profit	3,311,161	2,088,388	-	-
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	2,083,194	982,445	306,475	909,140
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	2,083,194	982,445	306,475	909,140
Taxation	<504,016>	<226,885>	<79,936>	<225,725>
	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	1,579,178	755,560	226,539	683,415
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	1,674,088	918,528	1,091,989	608,574
	----------------	----------------	----------------	----------------
As restated	1,674,088	918,528	1,091,989	608,574
	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	3,253,266	1,674,088	1,318,528	1,291,989
CAPITALISATION FOR BONUS ISSUES	<1,000,000>	-	-	-
DIVIDENDS - Ordinary (paid & proposed)	<300,000>	-	<400,000>	<200,000>
	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	1,953,266	1,674,088	918,528	1,091,989
	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	4,437	26,125	26,125	10,437
Bankers' acceptance	20,595	20,162	-	-
Hire purchase	-	2,987	5,944	5,944
Term loan / Borrowing	20,933	22,293	23,679	29,588
Others	20,043	40,194	17,444	31,522
	----------------	----------------	----------------	----------------
	66,008	111,761	73,192	77,491

BALANCE SHEET

GREENWELL OLEOCHEMICALS SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	784,278	480,645	491,377	558,154
INTANGIBLE ASSETS
Goodwill on consolidation	9,690	9,690	9,690	9,690
	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	9,690	9,690	9,690	9,690
	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	793,968	490,335	501,067	567,844
CURRENT ASSETS
Stocks	1,183,300	1,239,427	458,677	501,465
Trade debtors	6,090,185	3,518,639	2,383,821	1,415,019
Other debtors, deposits & prepayments	218,279	247,188	41,957	1,124,331
Short term deposits	734,317	716,193	1,041,394	952,715
Amount due from director	12,230	16,229	-	-
Cash & bank balances	707,205	470,975	1,180,487	59,937
Others	-	135,635	120,846	17,230
	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	8,945,516	6,344,286	5,227,182	4,070,697
	----------------	----------------	----------------	----------------
TOTAL ASSET	9,739,484	6,834,621	5,728,249	4,638,541
	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	4,102,184	2,804,066	2,145,940	1,022,054
Other creditors & accruals	893,630	274,509	769,470	248,273
Hire purchase & lease creditors	-	-	23,464	46,808
Bank overdraft	38,735	306,969	60,685	400,722
Short term borrowings/Term loans	38,894	36,585	36,879	37,543
Bill & acceptances payable	500,000	500,000	-	-
Amounts owing to director	5,541	5,541	8,311	5,541
Provision for taxation	10,442	-	-	3,125
Other liabilities	-	-	500,000	463,000
	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	5,589,426	3,927,670	3,544,749	2,227,066
	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	3,356,090	2,416,616	1,682,433	1,843,631
	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	4,150,058	2,906,951	2,183,500	2,411,475
	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	2,000,000	1,000,000	1,000,000	1,000,000
	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	2,000,000	1,000,000	1,000,000	1,000,000
RESERVES
Retained profit/(loss) carried forward	1,953,266	1,674,088	918,528	1,091,989
	----------------	----------------	----------------	----------------
TOTAL RESERVES	1,953,266	1,674,088	918,528	1,091,989
	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	3,953,266	2,674,088	1,918,528	2,091,989
LONG TERM LIABILITIES
Long term loans	196,792	232,863	264,972	296,022
Hire purchase creditors	-	-	-	23,464
	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	196,792	232,863	264,972	319,486
	----------------	----------------	----------------	----------------
	4,150,058	2,906,951	2,183,500	2,411,475
	=============	=============	=============	=============

FINANCIAL RATIO

GREENWELL OLEOCHEMICALS SDN. BHD.

TYPES OF FUNDS
Cash	1,441,522	1,187,168	2,221,881	1,012,652
Net Liquid Funds	1,402,787	880,199	2,161,196	611,930
Net Liquid Assets	2,172,790	1,177,189	1,223,756	1,342,166
Net Current Assets/(Liabilities)	3,356,090	2,416,616	1,682,433	1,843,631
Net Tangible Assets	4,140,368	2,897,261	2,173,810	2,401,785
Net Monetary Assets	1,975,998	944,326	958,784	1,022,680
BALANCE SHEET ITEMS
Total Borrowings	274,421	576,417	386,000	804,559
Total Liabilities	5,786,218	4,160,533	3,809,721	2,546,552
Total Assets	9,739,484	6,834,621	5,728,249	4,638,541
Net Assets	4,150,058	2,906,951	2,183,500	2,411,475
Net Assets Backing	3,953,266	2,674,088	1,918,528	2,091,989
Shareholders' Funds	3,953,266	2,674,088	1,918,528	2,091,989
Total Share Capital	2,000,000	1,000,000	1,000,000	1,000,000
Total Reserves	1,953,266	1,674,088	918,528	1,091,989
LIQUIDITY (Times)
Cash Ratio	0.26	0.30	0.63	0.45
Liquid Ratio	1.39	1.30	1.35	1.60
Current Ratio	1.60	1.62	1.47	1.83
WORKING CAPITAL CONTROL (Days)
Stock Ratio	9	16	6	6
Debtors Ratio	45	46	33	18
Creditors Ratio	32	39	30	13
SOLVENCY RATIOS (Times)
Gearing Ratio	0.07	0.22	0.20	0.38
Liabilities Ratio	1.46	1.56	1.99	1.22
Times Interest Earned Ratio	32.56	9.79	5.19	12.73
Assets Backing Ratio	2.07	1.45	1.09	1.20
PERFORMANCE RATIO (%)
Operating Profit Margin	4.24	3.50	1.17	3.08
Net Profit Margin	3.21	2.69	0.87	2.32
Return On Net Assets	51.79	37.64	17.39	40.91
Return On Capital Employed	51.19	33.94	16.67	34.39
Return On Shareholders' Funds/Equity	39.95	28.25	11.81	32.67
Dividend Pay Out Ratio (Times)	0.19	0.00	1.77	0.29
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.66
UK Pound	1	Rs.86.37
Euro	1	Rs.69.24

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%)

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