MIRA INFORM REPORT

 

 

Report Date :

26.09.2012

 

IDENTIFICATION DETAILS

 

Name :

PALM-OLEO SDN BHD

 

 

Registered Office :

Wisma Taiko, 1 Jalan S P Seenivasagam, 30000 Ipoh, Perak

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.09.2011

 

 

Date of Incorporation :

23.08.1989

 

 

Com. Reg. No.:

185886-V

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing Of Fatty Acid Products

 

 

No. of Employees :

350

 

 

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

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.

:

185886-V

COMPANY NAME

:

PALM-OLEO SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

23/08/1989

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

WISMA TAIKO, 1 JALAN S P SEENIVASAGAM, 30000 IPOH, PERAK, MALAYSIA.

BUSINESS ADDRESS

:

LOT 1245, KUNDANG INDUSTRIAL ESTATE, 48020 RAWANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-60344800

FAX.NO.

:

03-60341279

EMAIL

:

enquiry.pol@palmoleo.com.my

WEB SITE

:

www.palmoleo.com.my

CONTACT PERSON

:

CHOW YANG CHUNG ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

15149

PRINCIPAL ACTIVITY

:

MANUFACTURING OF FATTY ACID PRODUCTS

AUTHORISED CAPITAL

:

MYR 500,000,000.00 DIVIDED INTO
ORDINARY SHARE 500,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 403,000,000.00 DIVIDED INTO
ORDINARY SHARES 157,904,417 CASH AND 245,095,583 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 2,082,842,000 [2011]

NET WORTH

:

MYR 753,136,000 [2011]

M1000 OVERALL RANKING

:

425[2011]

M1000 INDUSTRY RANKING

:

19[2011]

 

 

 

STAFF STRENGTH

:

350 [2012]

BANKER (S)

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

MYR 67,809,000 (USD 21,527,000)

 

 

 

 

 

 

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) manufacturing of fatty acid products.

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

According to the Malaysia 1000 publication, the SC's ranking are as follows:

 

 

 

 

YEAR

2011

2009

2008

 

OVERALL RANKING

425

403

413

 

INDUSTRY RANKING

19

9

6

 

 

The immediate holding company of the SC is KL-KEPONG INDUSTRIAL HOLDINGS SDN BHD, a company incorporated in MALAYSIA.

The ultimate holding company of the SC is KUALA LUMPUR KEPONG BERHAD, a company incorporated in MALAYSIA.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

KL-KEPONG INDUSTRIAL HOLDINGS SDN BHD

WISMA TAIKO, 1 JALAN S P SEENIVASAGAM, 30000 IPOH, PERAK, MALAYSIA.

300525

321,545,583.00

79.79

MITSUI & CO LTD

2-1, OHTEMACHI, 1-CHOME, CHIYODA-KU, 100-0004, TOKYO, JAPAN.

 

63,276,696.00

15.70

ADEKA CORPORATION

2-35, HIGASIOKU, 7-CHOME, ARAKAWA-KU, TOKYO, JAPAN.

 

10,075,000.00

2.50

MITSUI & CO (ASIA PACIFIC) PTE LTD

MILENNIUM OFFICE BLOCK, 160, JALAN BUKIT BINTANG, 5TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

4,072,721.00

1.01

MIYOSHI OIL & FAT CO LTD

66-1 HORIKIRI, 4-CHOME, KATSUSHIKA-KU, TOKYO, JAPAN.

 

4,030,000.00

1.00

 

 

 

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

------

 

 

 

403,000,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

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

 

Local No

Company

(%)

As At

248395

PALMAMIDE SDN BHD

100

30/09/2011

 

 

 

 

 

120900

KSP MANUFACTURING SDN BHD

100

30/09/2011

 

 

 

 

 

 

435832

PALM-OLEO (KLANG) SDN BHD

100

30/09/2011

 

 

 

 

 

 


DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

TAN SRI LEE OI HIAN

Address

:

55, JALAN KELAB GOLF, 30350 IPOH, PERAK, MALAYSIA.

IC / PP No

:

8023079

New IC No

:

510207-08-5743

Date of Birth

:

07/02/1951

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

24/12/1990

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. GOH ENG CHOOR

Address

:

9, LORONG BATU NILAM 20G, BANDAR BUKIT TINGGI 2, 41200 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

5485745

New IC No

:

571002-10-5199

Date of Birth

:

02/10/1957

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

01/10/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. PUNG KOK HOOI

Address

:

1, JALAN SS 24/19, TAMAN MEGAH, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

660414-07-5357

Date of Birth

:

14/04/1966

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

26/12/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

DAIJI KOJIMA

Address

:

SHONAN 3-9-17, SUGINAMI-KU, TOKYO, JAPAN.

IC / PP No

:

TH4018883

 

 

 

Date of Birth

:

09/03/1962

 

 

 

Nationality

:

JAPANESE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. MADHEV A/L BALA SUBRAMANIAM

Address

:

4, SS 24/9, TAMAN MEGAH, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

8294889

New IC No

:

600913-71-5115

Date of Birth

:

13/09/1960

 

 

 

Nationality

:

MALAYSIAN INDIAN

Date of Appointment

:

26/12/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

HISASHI ONOZUKA

Address

:

HAMPSHIRE RESIDENCE UNIT A-9-3, PERSIARAN HAMPSHIRE, OFF JALAN AMPANG, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

MZ0643164

 

 

 

Date of Birth

:

28/07/1962

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

03/12/2010

Remark

:

ALT DIR TO DAIJI KOJIMA

 

 

 

 

 

 

 

 

 

 

DIRECTOR 7

 

Name Of Subject

:

MR. YEOW AH KOW

Address

:

3, JALAN SS19/3C, SUBANG JAYA, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

8391290

New IC No

:

540203-05-5085

Date of Birth

:

03/02/1954

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

16/03/1998

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 8

 

Name Of Subject

:

TARO MORISHITA

Address

:

3-17-22-202 SOSHIGAYA, SETAGAYA, TOKYO, JAPAN.

IC / PP No

:

TG7468476

 

 

 

Date of Birth

:

24/11/1969

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

08/03/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

CHOW YANG CHUNG

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

YEOW AH KOW

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

OSCAR LEE

 

Position

:

FINANCIAL CONTROLLER

 

 

 

 

 

4)

Name of Subject

:

RASHIDAH ABD JABAR

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

5)

Name of Subject

:

DEVA RATHNAM

 

Position

:

PRODUCTION MANAGER

 

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

KPMG TOWER 8, FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. PUNG KOK HOOI

 

 

 

 

 

New IC No

:

660414-07-5357

 

Address

:

1, JALAN SS 24/19, TAMAN MEGAH, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. YAP MIOW KIEN

 

IC / PP No

:

A1171235

 

New IC No

:

681220-05-5334

 

Address

:

12, LINGKARAN MERU VALLEY 1A, LAKEVIEW VILLA, MERU VALLEY GOLF RESORT, JALAN BUKIT MERU, 30020 IPOH, PERAK, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

 

 

 

 

 

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

:

08/11/1991

Description Of Charge

:

DEBENTURE

 

Amount Secured

:

RM31,000,000.00

Description Of Property Affected

:

FIXED CHARGE

 

Name & Address Of Chargee

:

THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED
15/17, JALAN DATO MAHARAJA LELA, 30000 IPOH, PERAK, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 16/12/1991

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

:

YES

Percentage

:

60%

Overseas

:

YES

Percentage

:

40%

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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

45%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

55%

Export Market

:

EUROPE, SOUTH AFRICA, CANADA, ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)

Type of Customer

:

DEALERS

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

FATTY ACIDS, GLYCERINE AND PALM OIL DERIVATIVES

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :0

 

 

 

 

Competitor(s)

:

INTERCONTINENTAL SPECIALTY FATS SDN BHD
MEWAHOLEO INDUSTRIES SDN BHD
MOI FOODS MALAYSIA SDN BHD
SMALLHOLDERS EDIBLE OIL SDN BHD
SOON SOON OILMILLS SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

MALAYSIA FOOD & BEVERAGE INDUSTRY

 

 

 

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

350

350

350

350

344

345

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of fatty acid products.

The SC's products are mainly used for soap, detergent, food emulsifier, varnishes, paints and others.

We were informed that the SC is using latest processing technology and online computer process system on its production site.

According to the SC, it also has a warehouse located at the same premises to keep stocks and materials.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0360344800

Current Telephone Number

:

03-60344800

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 1245, KUNDANG INDUSTRIAL ESTATE,48020,RAWANG,SELANGOR.

Current Address

:

LOT 1245, KUNDANG INDUSTRIAL ESTATE, 48020 RAWANG, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 19th September 2012 we contacted one of the staff from the SC and she provided some information on the SC.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

57.35%

]

 

Profit/(Loss) Before Tax

:

Increased

[

40.11%

]

 

Return on Shareholder Funds

:

Acceptable

[

11.85%

]

 

Return on Net Assets

:

Acceptable

[

14.76%

]

 

 

 

 

 

 

 

 

The increase in turnover could be due to the SC adopting an aggressive marketing strategy.The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

53 Days

]

 

Debtor Ratio

:

Favourable

[

20 Days

]

 

Creditors Ratio

:

Favourable

[

4 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

[

1.10 Times

]

 

Current Ratio

:

Favourable

[

2.48 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

[

16.29 Times

]

 

Gearing Ratio

:

Favourable

[

0.03 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 : 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

15149 : Manufacture of other vegetable and animal oils and fats

 

 

INDUSTRY :

TRADING

 

 

 


The wholesale and retail trade sector grew 7.1% in the first half of the year 2011 supported by strong consumer spending amid favourable labour market conditions and sustained disposable income. This was reflected in the higher distributive trade index which increased 15.9%, with wholesale and retail trade indices increasing 19.2% and 7.8%, respectively.


It is anticipated that the retail industry will grow 6.0 per cent in the year 2012.


Malaysia's retail sector for 2011 is expected to grow 6 per cent or RM81.59 billion worth of retail sales, similar to the year 2010, due to concerns of high oil prices, declining purchasing power and high cost of doing business. The Middle East and North Africa civil wars have caused the world oil prices to climb. This has led to further rise in the cost of running retail businesses, especially in terms of transportation cost. Many retailers have no choice but to pass the increased cost to end consumers. At the same time, natural disasters (tsunamis, floods, droughts, snow storms, tornadoes and earthquakes) that occurred in all parts of the world has also led to a shortage in the supply of food and raw materials. The phenomenon has pushed retail prices up.In addition, the continual removal of government subsidies since 2010 has pushed inflation upwards. Consequently, rising prices of retail goods contributed to an expectation of moderate performance.


During the first seven months of 2011, other consumption indicators such as imports of consumption goods and credit card spending increased 12.8% and 11.8%, respectively. Sales of motor vehicles declined 3% on account of supply chain disruptions following devastating March 2011 earthquake and tsunami in Japan.


Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.


Meanwhile, the Government has introduced the Retail Shop Transformation (TUKAR) programme. Under this programme, selected large format retailers will assist small retailers to improve their premises and layout which include attractive product display shelves, enhanced lighting and point-of-sales system to manage product inventory,

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1989, the SC is a Private Limited company, focusing on manufacturing of fatty acid products. The SC has been in business for over two 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 SC is a large entity with strong capital position. We are confident with the SC's business and its future growth prospect.


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 350 staff in its operations. 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. 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 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 753,136,000, 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.


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)

PALM-OLEO SDN BHD

 

Financial Year End

30/09/2011

30/09/2010

30/09/2009

30/09/2008

30/09/2007

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

2,082,842,000

1,323,725,000

850,136,000

1,245,607,000

767,265,000

Other Income

4,644,000

11,866,000

927,000

1,093,000

-

 

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

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

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

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

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

Total Turnover

2,087,486,000

1,335,591,000

851,063,000

1,246,700,000

767,265,000

Costs of Goods Sold

<1,946,645,000>

<1,240,176,000>

<779,655,000>

<1,166,449,000>

-

 

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

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

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

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

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

Gross Profit

140,841,000

95,415,000

71,408,000

80,251,000

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

113,252,000

80,832,000

50,377,000

66,479,000

61,241,000

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

113,252,000

80,832,000

50,377,000

66,479,000

61,241,000

Taxation

<24,030,000>

<17,577,000>

<12,834,000>

<15,093,000>

<12,926,000>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

89,222,000

63,255,000

37,543,000

51,386,000

48,315,000

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

280,512,000

358,886,000

249,166,000

197,780,000

171,157,000

Prior year adjustment

2,942,000

-

-

-

-

 

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

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

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

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

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

As restated

283,454,000

358,886,000

249,166,000

197,780,000

171,157,000

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

372,676,000

422,141,000

286,709,000

249,166,000

219,472,000

- General

-

<129,000>

-

-

-

CAPITALISATION FOR BONUS ISSUES

-

<141,500,000>

-

-

-

DIVIDENDS - Ordinary (paid & proposed)

<22,669,000>

-

-

-

<21,692,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

350,007,000

280,512,000

286,709,000

249,166,000

197,780,000

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

7,408,000

2,814,000

4,500,000

5,800,000

559,000

 

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

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

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

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

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

 

7,408,000

2,814,000

4,500,000

5,800,000

559,000

 

BALANCE SHEET

 

PALM-OLEO SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

331,568,000

259,905,000

132,748,000

143,262,000

155,050,000

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Subsidiary companies

-

-

87,942,000

87,942,000

87,922,000

Associated companies

124,933,000

122,103,000

63,800,000

63,800,000

21,500,000

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

124,933,000

122,103,000

151,742,000

151,742,000

109,422,000

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Own goodwill

35,082,000

-

-

-

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

35,082,000

-

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

491,583,000

382,008,000

284,490,000

295,004,000

264,472,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

303,771,000

212,404,000

95,929,000

145,619,000

106,093,000

Trade debtors

111,856,000

79,808,000

39,934,000

66,303,000

54,969,000

Other debtors, deposits & prepayments

17,490,000

11,584,000

1,312,000

4,864,000

1,409,000

Short term deposits

13,248,000

11,475,000

24,051,000

9,220,000

-

Short term loans & advances

-

-

15,017,000

-

5,680,000

Amount due from holding company

75,000

95,750,000

-

33,000

29,000

Amount due from subsidiary companies

-

-

5,577,000

5,086,000

566,000

Amount due from related companies

66,202,000

14,861,000

20,370,000

21,288,000

16,179,000

Amount due from associated companies

22,015,000

65,866,000

67,432,000

57,786,000

101,768,000

Cash & bank balances

7,009,000

6,189,000

1,368,000

1,185,000

829,000

Others

4,032,000

970,000

22,000

11,000

239,000

 

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

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

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

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

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

TOTAL CURRENT ASSETS

545,698,000

498,907,000

271,012,000

311,395,000

287,761,000

 

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

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

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

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

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

TOTAL ASSET

1,037,281,000

880,915,000

555,502,000

606,399,000

552,233,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

22,869,000

37,367,000

17,104,000

13,124,000

21,966,000

Other creditors & accruals

30,918,000

24,315,000

18,596,000

16,846,000

23,691,000

Short term borrowings/Term loans

16,000,000

16,000,000

21,250,000

-

-

Other borrowings

-

-

-

28,620,000

-

Bill & acceptances payable

21,820,000

-

-

28,500,000

34,082,000

Amounts owing to holding company

30,539,000

29,786,000

17,000

1,276,000

1,279,000

Amounts owing to subsidiary companies

-

-

84,000

4,367,000

11,131,000

Amounts owing to related companies

19,243,000

13,864,000

15,125,000

4,323,000

7,720,000

Amounts owing to associated companies

6,240,000

774,000

13,000

39,000

1,031,000

Provision for taxation

2,105,000

1,908,000

2,415,000

1,500,000

1,900,000

Other liabilities

69,988,000

9,000,000

39,000

1,138,000

74,353,000

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

219,722,000

133,014,000

74,643,000

99,733,000

177,153,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

325,976,000

365,893,000

196,369,000

211,662,000

110,608,000

 

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

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

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

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

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

TOTAL NET ASSETS

817,559,000

747,901,000

480,859,000

506,666,000

375,080,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

403,000,000

403,000,000

141,500,000

141,500,000

141,500,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

403,000,000

403,000,000

141,500,000

141,500,000

141,500,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Capital reserve

129,000

129,000

-

-

-

Retained profit/(loss) carried forward

350,007,000

280,512,000

286,709,000

249,166,000

197,780,000

 

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

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

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

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

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

TOTAL RESERVES

350,136,000

280,641,000

286,709,000

249,166,000

197,780,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

753,136,000

683,641,000

428,209,000

390,666,000

339,280,000

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

8,174,000

24,292,000

23,750,000

85,000,000

-

Deferred taxation

56,249,000

39,968,000

28,900,000

31,000,000

35,800,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

64,423,000

64,260,000

52,650,000

116,000,000

35,800,000

 

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

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

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

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

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

 

817,559,000

747,901,000

480,859,000

506,666,000

375,080,000

 

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

PALM-OLEO SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

20,257,000

17,664,000

25,419,000

10,405,000

829,000

Net Liquid Funds

20,257,000

17,664,000

25,419,000

10,405,000

829,000

Net Liquid Assets

22,205,000

153,489,000

100,440,000

66,043,000

4,515,000

Net Current Assets/(Liabilities)

325,976,000

365,893,000

196,369,000

211,662,000

110,608,000

Net Tangible Assets

782,477,000

747,901,000

480,859,000

506,666,000

375,080,000

Net Monetary Assets

<42,218,000>

89,229,000

47,790,000

<49,957,000>

<31,285,000>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

24,174,000

40,292,000

45,000,000

113,620,000

0

Total Liabilities

284,145,000

197,274,000

127,293,000

215,733,000

212,953,000

Total Assets

1,037,281,000

880,915,000

555,502,000

606,399,000

552,233,000

Net Assets

817,559,000

747,901,000

480,859,000

506,666,000

375,080,000

Net Assets Backing

753,136,000

683,641,000

428,209,000

390,666,000

339,280,000

Shareholders' Funds

753,136,000

683,641,000

428,209,000

390,666,000

339,280,000

Total Share Capital

403,000,000

403,000,000

141,500,000

141,500,000

141,500,000

Total Reserves

350,136,000

280,641,000

286,709,000

249,166,000

197,780,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.09

0.13

0.34

0.10

0.00

Liquid Ratio

1.10

2.15

2.35

1.66

1.03

Current Ratio

2.48

3.75

3.63

3.12

1.62

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

53

59

41

43

50

Debtors Ratio

20

22

17

19

26

Creditors Ratio

4

11

8

4

10

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.03

0.06

0.11

0.29

0.00

Liabilities Ratio

0.38

0.29

0.30

0.55

0.63

Times Interest Earned Ratio

16.29

29.72

12.19

12.46

110.55

Assets Backing Ratio

1.94

1.86

1.19

1.26

0.93

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

5.44

6.11

5.93

5.34

7.98

Net Profit Margin

4.28

4.78

4.42

4.13

6.30

Return On Net Assets

14.76

11.18

11.41

14.27

16.48

Return On Capital Employed

14.15

11.18

11.41

14.27

16.48

Return On Shareholders' Funds/Equity

11.85

9.25

8.77

13.15

14.24

Dividend Pay Out Ratio (Times)

0.25

0.00

0.00

0.00

0.45

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.53

UK Pound

1

Rs.86.82

Euro

1

Rs.69.02

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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

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NB

                                       New Business

 

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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.