MIRA INFORM REPORT

 

 

Report Date :

25.10.2012

 

 

 

IDENTIFICATION DETAILS

 

Name :

TEGAP BUMIJAYA SDN BHD

 

 

 

Registered Office :

6-1b, Blok C Medan Kota Johbase, 86000 Kluang, Johor,

 

 

Country :

Malaysia

 

 

Financials (as on) :

28.02.2011

 

 

Date of Incorporation :

27.02.2003

 

 

Com. Reg. No.:

607527-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading In Crude Oil Palm

 

 

No. of Employees :

Not Available

 

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 :

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 – June 30th, 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

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

607527-D

COMPANY NAME

:

TEGAP BUMIJAYA SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

27/02/2003

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

6-1B, BLOK C MEDAN KOTA JOHBASE, 86000 KLUANG, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

NO. 23-33, JALAN DATO HAJI HASSAN, , 86000 KLUANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-7716322

FAX.NO.

:

07-7714321

CONTACT PERSON

:

TAN ( DIRECTOR )

INDUSTRY CODE

:

51212

PRINCIPAL ACTIVITY

:

TRADING IN CRUDE OIL PALM

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 2,498,002.00 DIVIDED INTO 
ORDINARY SHARES 2,498,002 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 60,076,500 [2011]

NET WORTH

:

MYR 3,441,163 [2011]

STAFF STRENGTH

:

N/A

BANKER (S)

:

STANDARD CHARTERED BANK MALAYSIA BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

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 in crude oil palm.

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 KAR WEE +

100, JALAN SATU, TAMAN BERSATU, 86000 KLUANG, JOHOR, MALAYSIA.

730306-01-5411 A2392538

1,660,000.00

66.45

MS. CHIN MEEI YUH +

100, JALAN 1, TAMANA BERSATU, 86000 KLUANG, JOHOR, MALAYSIA.

730608-01-5038 A2392702

838,002.00

33.55

 

 

 

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

------

 

 

 

2,498,002.00

100.00

 

 

 

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

=====

 

+ Also Director

 

 

DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MS. CHIN MEEI YUH

Address

:

100, JALAN 1, TAMANA BERSATU, 86000 KLUANG, JOHOR, MALAYSIA.

IC / PP No

:

A2392702

New IC No

:

730608-01-5038

Date of Birth

:

08/06/1973

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

DIRECTOR 2

 

Name Of Subject

:

MR. TAN KAR WEE

Address

:

100, JALAN SATU, TAMAN BERSATU, 86000 KLUANG, JOHOR, MALAYSIA.

IC / PP No

:

A2392538

New IC No

:

730306-01-5411

Date of Birth

:

06/03/1973

Nationality

:

MALAYSIAN CHINESE

 


MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN

 

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

LING MING LEH & COMPANY

Auditor' Address

:

183-A, JALAN ABU BAKAR, 83000 BATU PAHAT, JOHOR, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. TAN SUI CHEE

 

IC / PP No

:

A0437802

 

New IC No

:

660628-01-6037

 

Address

:

28, BLOCK D, JALAN DURIAN, 86000 KLUANG, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

STANDARD CHARTERED BANK MALAYSIA BHD

 

2)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) 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

:

21/06/2011

Description Of Charge

:

MEMORANDUM OF LEGAL CHARGE OVER DEPOSITS

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

Form 40 Dated 30/06/2011

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

13/12/2011

Description Of Charge

:

SECURITY AGREEMENT

 

Amount Secured

:

N/A

Description Of Property Affected

:

FIXED DEPOSIT

 

Name & Address Of Chargee

:

STANDARD CHARTERED BANK MALAYSIA BHD
86-1, JALAN MOLEK /2, TAMAN MOLEK, 1ST FLOOR, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 16/12/2011

Registered and Numbered 2 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

:

N/A

Overseas

:

N/A

 

 

 


The SC refused to disclose its suppliers. 

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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

 

Domestic Markets

:

MALAYSIA

 

Overseas

:

YES

 

Export Market

:

EUROPE, ASIA

 

Credit Term

:

AS AGREED

 

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The SC refused to disclose its clientele information. 

 

 

OPERATIONS

 

Goods Traded

:

CRUDE OIL PALM

 

Competitor(s)

:

AMBROSIA SDN BHD
CARGILL SPECIALTY OILS & FATS SDN. BHD.
FELDA IFFCO TRADING SDN. BHD.
MITSUBISHI CORPORATION
SIME DARBY FUTURES TRADING SDN BHD

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


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

The SC refused to disclose any information on its operation 

 

 

PROJECTS


No projects found in our databank 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

07-7716322

Match

:

N/A

 

 

 

Address Provided by Client

:

23-33 JALAN DATO HJ HASSAN 8600 KLUANG JOHOR

Current Address

:

NO. 23-33, JALAN DATO HAJI HASSAN, , 86000 KLUANG, JOHOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 23rd October 2012 we contacted one of the staff from the SC and she provided some information on the SC.

The SC refused to disclose its number of employees.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

41.21%

]

 

Profit/(Loss) Before Tax

:

Increased

[

22.89%

]

 

Return on Shareholder Funds

:

Acceptable

[

25.02%

]

 

Return on Net Assets

:

Favourable

[

30.81%

]

 

 

 

 

 

 

 

 

The increase in turnover could be due to the SC adopting an aggressive marketing strategy.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.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

18 Days

]

 

Debtor Ratio

:

Favourable

[

16 Days

]

 

Creditors Ratio

:

Favourable

[

21 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

[

1.05 Times

]

 

Current Ratio

:

Unfavourable

[

1.69 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

[

102.40 Times

]

 

Gearing Ratio

:

Favourable

[

0.11 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 : STABLE

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 

 

INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

 

 

 

 

 

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

51212 : Wholesale of palm oil

 

 

INDUSTRY :

PALM OIL

 

 

 


Oil palm is one of the main drivers of Malaysia's agriculture sector where it has accounting for 71% of its agricultural land bank. Malaysia is the one of the biggest producers and exporters of palm oil prodcuts inthe growing global need for oils and fats. The palm oil industry is expected to grow about 7.1% over the next 10 years where it is driven by new plantation expansion, venture of large plantation companies into high potential downstream activities such as processed food, biodiesel, second generation biofuel and oleochemicals.


According to MPOB ( Malaysian Palm Oil Board ) statistics in May/June 2012,imports of processed palm oil continue to rise from 88,000 tonnes (May 2012) and 112,000 tonnes (June 2012).Due to the biological stress on oil palm trees and following by the bumper harvest in 2011, Oil production is expected to decline at the end of 2012. The number of palm oil mills in operation in the malaysia has increased from 53 (Dec 31, 2011) to 55 (second quarter 2012), with another 14 new mills at various stages of construction.


The outlook for the palm oil industry is bright, with its price range between RM3,100 and RM3,840 per tonne in first quarter 2012.This is equivalent to about 26.6 % of the global oils and fats trade. Furthemore, at the end of 2012, the demand and the price of palm oil are expected to be increased due to the adverse weather conditions of the production soy bean in South America is expected to be


declined by 3 to 5% at the end of 2012. 


The unfreezing of India's base import price of refined palm olein is expected to cause insignificant impact to Malaysian refiners as they have already established other downstream markets for their refined crude palm oil (CPO) exports. Furthermore, Malaysia has produced 18.91 million tonnes or 37.65% of the total palm oil production on 2011 and it has accounted for 17.99 million tonnes or 46.27% of the world exports. 


Under the palm oil National Key Economic Areas (NKEAs) in 2011, the launches of the Oil Palm Replanting and New Planting Smallholders Schemes ware improved the smallholders agricultural practices in 2012.The oil extraction rate is set to improve to 21.05% in three-year from 2012 to low of 19.70% as 1.35 more. 


In driving speedier harvesting of oil palm fruits, the government has introduced the RM1,000 discount scheme to encourage the use of motorised sickle called Cantas and diamond blade sharpeners to enhance the palm oil industry. MPOB appointed 100 enforcement officers to visit mills to ensure the only good quality crops are processed. Since 2007, the palm oil industry has grown at an average of 14.5 per cent annualy until 2012. If the momentum is maitained for next 5 to 8 years, malaysia will achive its target of two million of hecters palm oil.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 2003, the SC is a Private Limited company, focusing on trading in crude oil palm. Having been in the industry for almost 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.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for 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 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 3,441,163, the SC should be able to maintain its business in the near terms.


We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.


Based on the above condition, we recommend credit be granted to the SC promptly.



PROFIT AND LOSS ACCOUNT

 

 

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

TEGAP BUMIJAYA SDN BHD

 

Financial Year End

28/02/2011

28/02/2010

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

 

 

 

TURNOVER

60,076,500

42,543,974

Other Income

5,294

50,099

 

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

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

Total Turnover

60,081,794

42,594,073

Costs of Goods Sold

<58,096,916>

<41,305,806>

 

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

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

Gross Profit

1,984,878

1,288,267

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

1,135,107

923,673

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,135,107

923,673

Taxation

<273,996>

<239,159>

 

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

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

PROFIT/(LOSS) AFTER TAXATION

861,111

684,514

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

758,979

74,465

 

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

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

As restated

758,979

74,465

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,620,090

758,979

- General

23,071

-

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,643,161

758,979

 

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

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

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

Hire purchase

-

4,830

Others

11,194

-

 

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

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

 

11,194

4,830

 

 

BALANCE SHEET

 

 

TEGAP BUMIJAYA SDN BHD

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

415,809

150,098

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

415,809

150,098

 

 

 

CURRENT ASSETS

 

 

Stocks

3,044,461

518,400

Trade debtors

2,590,766

3,691,455

Other debtors, deposits & prepayments

163,751

780,163

Cash & bank balances

2,306,479

2,051,987

 

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

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

TOTAL CURRENT ASSETS

8,105,457

7,042,005

 

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

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

TOTAL ASSET

8,521,266

7,192,103

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

3,410,254

214,112

Other creditors & accruals

1,006,645

3,279,215

Hire purchase & lease creditors

110,814

38,700

Amounts owing to director

8,272

2,260,806

Provision for taxation

265,084

166,088

 

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

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

TOTAL CURRENT LIABILITIES

4,801,069

5,958,921

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

3,304,388

1,083,084

 

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

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

TOTAL NET ASSETS

3,720,197

1,233,182

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

1,798,002

350,002

 

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

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

TOTAL SHARE CAPITAL

1,798,002

350,002

 

 

 

RESERVES

 

 

Retained profit/(loss) carried forward

1,643,161

758,979

 

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

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

TOTAL RESERVES

1,643,161

758,979

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,441,163

1,108,981

 

 

 

LONG TERM LIABILITIES

 

 

Hire purchase creditors

279,034

101,130

Deferred taxation

-

23,071

 

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

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

TOTAL LONG TERM LIABILITIES

279,034

124,201

 

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

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

 

3,720,197

1,233,182

 

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

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

 

 

 

 

 

FINANCIAL RATIO

 

 

TEGAP BUMIJAYA SDN BHD

 

TYPES OF FUNDS

 

 

Cash

2,306,479

2,051,987

Net Liquid Funds

2,306,479

2,051,987

Net Liquid Assets

259,927

564,684

Net Current Assets/(Liabilities)

3,304,388

1,083,084

Net Tangible Assets

3,720,197

1,233,182

Net Monetary Assets

<19,107>

440,483

BALANCE SHEET ITEMS

 

 

Total Borrowings

389,848

139,830

Total Liabilities

5,080,103

6,083,122

Total Assets

8,521,266

7,192,103

Net Assets

3,720,197

1,233,182

Net Assets Backing

3,441,163

1,108,981

Shareholders' Funds

3,441,163

1,108,981

Total Share Capital

1,798,002

350,002

Total Reserves

1,643,161

758,979

LIQUIDITY (Times)

 

 

Cash Ratio

0.48

0.34

Liquid Ratio

1.05

1.09

Current Ratio

1.69

1.18

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

18

4

Debtors Ratio

16

32

Creditors Ratio

21

2

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.11

0.13

Liabilities Ratio

1.48

5.49

Times Interest Earned Ratio

102.40

192.24

Assets Backing Ratio

1.49

0.49

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

1.89

2.17

Net Profit Margin

1.43

1.61

Return On Net Assets

30.81

75.29

Return On Capital Employed

29.92

73.00

Return On Shareholders' Funds/Equity

25.02

61.72

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.59

UK Pound

1

Rs.85.81

Euro

1

Rs.69.91

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.