MIRA INFORM REPORT

 

 

Report Date :

06.08.2013

 

IDENTIFICATION DETAILS

 

Name :

SCOMI OILTOOLS SDN. BHD.

 

 

Formerly Known As :

KOTA MINERALS & CHEMICALS SDN BHD

 

 

Registered Office :

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

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

27.02.1982

 

 

Com. Reg. No.:

81755-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Drilling Fluid & Drilling Waste Management Services, Supplies A Wide Range Of Specialized Chemicals

 

 

No. of Employees :

400

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. 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 about 35% of government revenue in 2011. Bank Negera Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA


 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

81755-D

COMPANY NAME

:

SCOMI OILTOOLS SDN. BHD.

FORMER NAME

:

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

INCORPORATION DATE

:

27/02/1982

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

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

BUSINESS ADDRESS

:

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

TEL.NO.

:

03-77173000

FAX.NO.

:

03-77285258

EMAIL

:

INFO@SCOMIGROUP.COM.MY

WEB SITE

:

WWW.SCOMI.COM.MY

CONTACT PERSON

:

MEENA KANTHASWAMY ( MARKETING MANAGER )

 

 

 

INDUSTRY CODE

:

71109

PRINCIPAL ACTIVITY

:

DRILLING FLUID & DRILLING WASTE MANAGEMENT SERVICES, SUPPLIES A WIDE RANGE OF SPECIALIZED CHEMICALS

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

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

 

 

 

SALES

:

MYR 397,377,000 [2011]

NET WORTH

:

MYR 101,742,000 [2011]

 

 

 

STAFF STRENGTH

:

400 [2013]

BANKER (S)

:

HSBC BANK MALAYSIA BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND


The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) drilling fluid & drilling waste management services, supplies a wide range of specialized chemicals.

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

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

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

The intermediate holding company of the SC is SCOMI OILFIELD LIITED, a company incorporated in CAYMAN ISLANDS.


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


Name

Address

IC/PP/Loc No

Shareholding

(%)

SCOMI OILTOOLS BERMUDA LIMITED

CLARENDON HOUSE, 2 CHURCH STREET, P.O. BOX HM 666, HAMILTON HM CX, BERMUDA.

BMEC25328

8,082,000.00

100.00

 

 

 

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

------

 

 

 

8,082,000.00

100.00

 

 

 

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

=====

+ Also Director


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



Local No

Country

Company

(%)

As At

761077H

MALAYSIA

SCOMI KMC SDN. BHD.

99.62

29/03/2013

 

 

 

 

 

416242P

MALAYSIA

ASTROWORK SDN. BHD.

60.00

29/03/2013

 

 

 

 

 




 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. SHAH HAKIM @ SHAHZANIM BIN ZAIN

Address

:

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

IC / PP No

:

A0122367

New IC No

:

650225-07-5439

Date of Birth

:

25/02/1965

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

27/02/2001

 

 

 

 

 

 

Working Experience

:

HE ASSUMED THE ROLE OF EXECUTIVE DIRECTOR OF A REGIONAL PAKAGING MANUGACTURER IN 1992.

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. ROZALI BIN SIDEK

Address

:

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

 

 

 

New IC No

:

710503-07-5001

Date of Birth

:

03/05/1971

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

14/06/2011

 

 

 

 

 

 

 

 

 

 

 

 




 

MANAGEMENT

 

 

 

1)

Name of Subject

:

MEENA KANTHASWAMY

 

Position

:

MARKETING MANAGER

 

 

 

 

 

2)

Name of Subject

:

SAHZAN BIN MOHD NOR

 

Position

:

OPERATIONS MANAGER

 

 

 

 

 

3)

Name of Subject

:

MOHD SYAHIRAN SULAIMAN

 

Position

:

EXECUTIVE

 

 

 

 

 

4)

Name of Subject

:

SHAH HAKIM @ SHAHZANIM BIN ZAIN

 

Position

:

DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, P.O.BOX 10192, LEVEL 10, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHONG MEI YAN

 

IC / PP No

:

A2392527

 

New IC No

:

730510-01-5582

 

Address

:

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

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. ONG WEI LENG

 

 

 

 

 

New IC No

:

800322-08-5314

 

Address

:

402, JALAN PANTAI, 34350 KUALA KURAU, PERAK, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

24/09/1991

N/A

BANK OF COMMERCE BHD

MYR 4,900,000.00

Satisfied

2

07/03/1992

N/A

BANK OF COMMERCE M BHD

MYR 600,000.00

Satisfied

3

06/10/1992

N/A

BANK OF COMMERCE M BHD

MYR 2,200,000.00

Satisfied

4

17/02/1994

N/A

BANK OF COMMERCE M BERHAD

MYR 4,300,000.00

Satisfied

5

19/02/1997

N/A

BANK OF COMMERCE M BERHAD

MYR 4,200,000.00

Satisfied

6

19/02/1997

N/A

BANK OF COMMERCE M BERHAD

MYR 4,200,000.00

Satisfied

7

11/04/1997

N/A

BANK OF COMMERCE M BERHAD

MYR 4,000,000.00

Satisfied

8

10/10/1997

N/A

BANK OF COMMERCE M BERHAD

MYR 1,750,000.00

Satisfied

10

11/11/1997

N/A

BANK OF COMMERCE M BERHAD

MYR 2,100,000.00

Satisfied

9

17/11/1997

N/A

BANK OF COMMERCE M BERHAD

MYR 12,400,000.00

Satisfied

11

02/12/1998

N/A

BANK OF COMMERCE M BERHAD

MYR 1,600,000.00

Satisfied

12

07/02/2002

N/A

RHB BANK BERHAD

MYR 13,700,000.00

Satisfied

13

15/01/2004

N/A

HSBC BANK MALAYSIA BERHAD

N/A

Satisfied

14

06/05/2004

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

N/A

Satisfied

17

10/06/2004

N/A

CIMB L LIMITED

N/A

Satisfied

18

10/06/2004

N/A

CIMB L LIMITED

N/A

Satisfied

19

10/06/2004

N/A

CIMB L LIMITED

N/A

Satisfied

15

17/06/2004

N/A

CIMB L LIMITED

N/A

Satisfied

16

17/06/2004

N/A

CIMB L LIMITED

N/A

Satisfied

20

01/09/2005

ASSIGNMENT OF DEBT

BUMIPUTRA-COMMERCE BANK (L) LIMITED

N/A

Satisfied

21

01/09/2005

FACILITY AGREEMENT

BUMIPUTRA-COMMERCE BANK (L) LIMITED

N/A

Satisfied

 

 

LEGAL CHECK AGAINST SC


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

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC


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

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

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

 

Overseas

:

YES

 

Import Countries

:

ASIA



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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Percentage

:

50%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

50%

Export Market

:

ASIA

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

OIL & GAS INDUSTRIES

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

SPECIALIZED CHEMICALS

 

 

 

 

Services

:

DRILLING FLUID & DRILLING WASTE MANAGEMENT

 

 

 

 

Award

:

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

 

 

 

 

 

Competitor(s)

:

RAMUNIA FABRICATORS SDN BHD
TANJUNG OFFSHORE BHD

 

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

400

300

300

310

300

 

 

 

 

 

Branch

:

YES

 

No of Branches

:

4

 

 

 

 

Other Information:


The SC is principally engaged in the (as a / as an) drilling fluid & drilling waste management services, supplies a wide range of specialized chemicals.

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

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

PROJECTS


No projects found in our databank

RECENT DEVELOPMENT


August 7, 2010

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

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

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

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

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

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

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-77173000

Match

:

N/A

 

 

 

Address Provided by Client

:

LEVEL 17, FIRST AVENUE BANDAR UTAMA PETALING JAYA 47800 SELANGOR DARUL EHSAN

Current Address

:

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

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided is incomplete.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

24.36%

]

 

Return on Net Assets

:

Favourable

[

41.38%

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Acceptable

[

65 Days

]

 

Debtor Ratio

:

Favourable

[

30 Days

]

 

Creditors Ratio

:

Unfavourable

[

76 Days

]

 

 

 

 

 

 

 

 

The SC kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Unfavourable

[

0.69 Times

]

 

Current Ratio

:

Unfavourable

[

0.97 Times

]

 

 

 

 

 

 

 

 

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

9.98 Times

]

 

Gearing Ratio

:

Favourable

[

0.54 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. 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 :

 

 

 

 

 

 

Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. 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:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

<0.5>

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

<2.7>

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

<17.2>

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

<1.2>

Investment ( % )

8.0

2.8

<0.3>

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

<28,450>

<40,482>

<45,511>

<42,297>

<39,993>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<5.6>

<5.4>

<4.5>

<4.0>

Inflation ( % Change in Composite CPI)

<5.2>

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

<0.1>

6.2

3.0

<0.0>

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

<34.5>

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

<1.1>

<3.4>

10.8

<2.8>

-

Rubber

<19.8>

9.9

6.1

<0.6>

-

Forestry & Logging

<5.9>

<3.3>

<7.6>

<2.2>

-

Fishing

5.5

5.6

2.1

<0.7>

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

<3.8>

0.2

<5.7>

1.5

2.7

Oil & Gas

2.1

0.5

<1.7>

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

<9.4>

11.4

4.7

4.2

4.9

Exported-oriented Industries

<19.0>

12.1

2.8

4.1

-

Electrical & Electronics

<30.3>

28.4

<4.9>

1.6

-

Rubber Products

<10.1>

25.3

15.4

3.6

-

Wood Products

<24.1>

20.1

<4.9>

4.6

-

Textiles & Apparel

<19.5>

<0.4>

14.8

<7.1>

-

Domestic-oriented Industries

<9.8>

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

<7.7>

16.2

5.5

9.9

-

Plastic Products

<9.1>

2.4

3.8

-

-

Iron & Steel

<32.7>

29.3

2.4

-

-

Fabricated Metal Products

<2.5>

14.9

25.2

-

-

Non-metallic Mineral

<15.5>

20.2

27.1

6.6

-

Transport Equipment

<13.5>

36.5

<10.4>

13.7

-

Paper & Paper Products

<5.0>

18.7

14.8

<7.8>

-

Crude Oil Refineries

0.2

<11.4>

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

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

71109 : Other architectural and engineering activities and related technical consultancy n.e.c.

 

 

INDUSTRY :

CONSTRUCTION

 

 

 

The construction sector consists of four subsectors: residential, non-residential, civil engineering and special trade works. During a period of rapid economic expansion, the sector generally outperforms Gross Domestic Product (GDP) growth.

 

Construction's contribution to gross domestic product (GDP) is expected to fall to 11.2% in 2013 from 15 % in 2012, with all subsectors registering steady growth. The sector is expected to benefit from the acceleration of ongoing construction activities, particularly from the Economic Transformation Programme (ETP) and Second Rolling Plan (RP2) construction-related projects. Of significance, exploration activities in O&G industries and major projects such as the electrified double-tracking between lpoh -Padang Besar, LPT2 Jabur - Kuala Terengganu, MRT and the River of Life are expected to drive the growth of the civil engineering subsector. The non-residential subsector is expected to expand spurred by the industrial building segment and the commencement of construction of the Tun Razak Exchange (TRX). The residential subsector is also projected to expand, albeit at a moderate pace, after recording several years of strong growth. Key housing development projects, particularly in Sungai Buloh and Bandar Malaysia in Sungai Besi, which are expected to commence in 2013, will support residential construction activities. According to the Minister of Finance, the domestic demand is expected to grow at 5.6% and will remain the main driver of growth in 2013 underpinned by strong private sector expenditure.

 

The industry is set to receive a further boost from a wave of new developments earmarked for 2013, including rail projects worth an estimated $52 billion that should be launched in the coming year. It was predicted that the growth in other sectors will largely drive Malaysia's econ­omy but the construction sector's contribution to GDP could still remain stable. However, while the construc­tion sector is expected to have a solid 2013, it remains hampered by a shortage of skilled labour­ers, with rapid growth in recent years triggering a drain on its workforce. In late November of 2012, the Builders Association Malaysia (MBAM) request the govern­ment to do more to facilitate the training of building workers or run the risk of supply-side bot­tlenecks delaying new projects.

 

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1982, the SC is a Private Limited company, focusing on drilling fluid & drilling waste management services, supplies a wide range of specialized chemicals. 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 capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.

Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. The SC is a fairly large and rapidly growing company with over 400 staff in its operations The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright. To improve its quality products and services, we noted that the SC has received a number of certifications & awards. This will improve the customer's confidence level to the SC.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. 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 101,742,000, the SC should be able to maintain its business in the near terms.

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.

The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.

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

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

 



 

 

 

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

SCOMI OILTOOLS SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

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

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

397,377,000

203,078,000

229,806,000

208,187,000

185,446,000

 

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

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

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

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

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

Total Turnover

397,377,000

203,078,000

229,806,000

208,187,000

185,446,000

Costs of Goods Sold

<318,178,000>

<142,029,000>

-

-

-

 

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

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

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

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

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

Gross Profit

79,199,000

61,049,000

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

37,884,000

30,309,000

8,356,000

4,475,000

17,415,000

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

37,884,000

30,309,000

8,356,000

4,475,000

17,415,000

Taxation

<13,101,000>

<5,557,000>

3,319,000

28,971,000

9,490,000

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

24,783,000

24,752,000

11,675,000

33,446,000

26,905,000

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

44,769,000

20,017,000

8,342,000

<29,105,000>

<56,010,000>

 

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

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

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

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

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

As restated

44,769,000

20,017,000

8,342,000

<29,105,000>

<56,010,000>

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

69,552,000

44,769,000

20,017,000

4,341,000

<29,105,000>

TRANSFER TO RESERVES - General

-

-

-

4,001,000

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

69,552,000

44,769,000

20,017,000

8,342,000

<29,105,000>

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Term loan / Borrowing

1,982,000

713,000

6,960,000

6,195

-

Others

2,236,000

5,529,000

662,000

516

-

 

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

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

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

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

 

 

4,218,000

6,242,000

7,622,000

6,711

 

 

 

 

BALANCE SHEET

 

 

SCOMI OILTOOLS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

49,508,000

43,373,000

45,890,000

51,293,000

26,668,000

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Subsidiary companies

-

-

1,004,000

-

-

Investment properties

1,071,000

1,215,000

1,360,000

1,505,000

-

Deferred assets

28,486,000

41,587,000

47,144,000

43,825,000

-

Others

31,262,000

1,004,000

-

4,000

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

60,819,000

43,806,000

49,508,000

45,334,000

1,643,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

110,327,000

87,179,000

95,398,000

96,627,000

28,311,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

70,761,000

43,321,000

40,507,000

39,139,000

-

Trade debtors

32,549,000

17,746,000

3,643,000

53,570,000

-

Other debtors, deposits & prepayments

6,195,000

7,753,000

4,647,000

4,844,000

-

Short term deposits

1,484,000

635,000

621,000

843,000

-

Amount due from holding company

25,682,000

25,133,000

22,816,000

21,894,000

-

Amount due from related companies

100,280,000

74,475,000

63,915,000

14,481,000

-

Cash & bank balances

6,697,000

21,521,000

15,466,000

6,004,000

-

Others

27,000

551,000

16,000

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

243,675,000

191,135,000

151,631,000

140,775,000

171,932,000

 

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

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

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

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

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

TOTAL ASSET

354,002,000

278,314,000

247,029,000

237,402,000

200,243,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

65,945,000

37,733,000

16,792,000

21,028,000

-

Other creditors & accruals

1,224,000

1,922,000

20,899,000

22,679,000

-

Short term borrowings/Term loans

-

-

-

3,101,000

-

Other borrowings

40,757,000

22,821,000

377,000

-

-

Bill & acceptances payable

13,986,000

22,491,000

5,828,000

20,343,000

-

Other liabilities & accruals

2,821,000

2,628,000

-

-

-

Amounts owing to holding company

26,218,000

13,962,000

-

-

-

Amounts owing to related companies

101,012,000

106,185,000

157,100,000

134,890,000

-

Other liabilities

297,000

-

342,000

1,127,000

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

252,260,000

207,742,000

201,338,000

203,168,000

155,506,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<8,585,000>

<16,607,000>

<49,707,000>

<62,393,000>

16,426,000

 

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

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

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

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

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

TOTAL NET ASSETS

101,742,000

70,572,000

45,691,000

34,234,000

44,737,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

8,082,000

8,082,000

8,082,000

8,082,000

8,082,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

8,082,000

8,082,000

8,082,000

8,082,000

8,082,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

11,000

11,000

11,000

11,000

5,750,000

Capital reserve

6,537,000

6,408,000

6,279,000

-

-

Retained profit/(loss) carried forward

69,552,000

44,769,000

20,017,000

8,342,000

<29,105,000>

Others

17,560,000

11,302,000

11,302,000

17,799,000

60,010,000

 

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

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

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

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

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

TOTAL RESERVES

93,660,000

62,490,000

37,609,000

26,152,000

36,655,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

101,742,000

70,572,000

45,691,000

34,234,000

44,737,000

 

 

 

 

 

 

 

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

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

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

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

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

 

101,742,000

70,572,000

45,691,000

34,234,000

44,737,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

SCOMI OILTOOLS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

8,181,000

22,156,000

16,087,000

6,847,000

-

Net Liquid Funds

<5,805,000>

<335,000>

10,259,000

<13,496,000>

-

Net Liquid Assets

<79,346,000>

<59,928,000>

<90,214,000>

<101,532,000>

16,426,000

Net Current Assets/(Liabilities)

<8,585,000>

<16,607,000>

<49,707,000>

<62,393,000>

16,426,000

Net Tangible Assets

101,742,000

70,572,000

45,691,000

34,234,000

44,737,000

Net Monetary Assets

<79,346,000>

<59,928,000>

<90,214,000>

<101,532,000>

16,426,000

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

54,743,000

45,312,000

6,205,000

23,444,000

-

Total Liabilities

252,260,000

207,742,000

201,338,000

203,168,000

155,506,000

Total Assets

354,002,000

278,314,000

247,029,000

237,402,000

200,243,000

Net Assets

101,742,000

70,572,000

45,691,000

34,234,000

44,737,000

Net Assets Backing

101,742,000

70,572,000

45,691,000

34,234,000

44,737,000

Shareholders' Funds

101,742,000

70,572,000

45,691,000

34,234,000

44,737,000

Total Share Capital

8,082,000

8,082,000

8,082,000

8,082,000

8,082,000

Total Reserves

93,660,000

62,490,000

37,609,000

26,152,000

36,655,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.03

0.11

0.08

0.03

-

Liquid Ratio

0.69

0.71

0.55

0.50

-

Current Ratio

0.97

0.92

0.75

0.69

1.11

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

65

78

64

69

-

Debtors Ratio

30

32

6

94

-

Creditors Ratio

76

97

27

37

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.54

0.64

0.14

0.68

-

Liabilities Ratio

2.48

2.94

4.41

5.93

3.48

Times Interest Earned Ratio

9.98

5.86

2.10

667.82

-

Assets Backing Ratio

12.59

8.73

5.65

4.24

5.54

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

9.53

14.92

3.64

2.15

9.39

Net Profit Margin

6.24

12.19

5.08

16.07

14.51

Return On Net Assets

41.38

51.79

34.97

13.09

38.93

Return On Capital Employed

41.38

51.79

34.97

13.09

38.93

Return On Shareholders' Funds/Equity

24.36

35.07

25.55

97.70

60.14

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

 



 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.82

UK Pound

1

Rs.92.96

Euro

1

Rs.80.73

 

 

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%)

 

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.