MIRA INFORM REPORT

 

 

Report Date :

23.12.2013

 

IDENTIFICATION DETAILS

 

Name :

SURIACHEM SDN. BHD.

 

 

Formerly Known As :

KONSORTIUM BINANG SDN BHD

 

 

Registered Office :

Suite B, 1st Floor, Wisma Hup Tai, No. 1, Lorong Raja Bot, 41400 Klang, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

14.07.1994

 

 

Com. Reg. No.:

307772-W

 

 

Legal Form :

Exempt Private

 

 

Line of Business :

Distributor of Chemical, Palm Oil, Palm Oil Down-Stream Products Or Derivates

 

 

No. of Employees :

10

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

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.

:

307772-W

COMPANY NAME

:

SURIACHEM SDN. BHD.

FORMER NAME

:

KONSORTIUM BINANG SDN BHD (18/11/1999)
BINANG PROPERTIES SDN BHD (26/04/1996)

INCORPORATION DATE

:

14/07/1994

 

 

 

 

 

 

COMPANY STATUS

:

N/A

LEGAL FORM

:

EXEMPT PRIVATE

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE B, 1ST FLOOR, WISMA HUP TAI, NO. 1, LORONG RAJA BOT, 41400 KLANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 14321, JALAN PERUSAHAAN 24, KAMPUNG IDAMAN PANDAMARAN , 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31631386

FAX.NO.

:

03-31631986

EMAIL

:

SALES@SURIACHEM.COM

WEB SITE

:

WWW.SURIACHEM.COM

CONTACT PERSON

:

CHEN TECK LONG ( EXECUTIVE DIRECTOR )

 

 

 

INDUSTRY CODE

:

46202

PRINCIPAL ACTIVITY

:

DISTRIBUTOR OF CHEMICAL, PALM OIL, PALM OIL DOWN-STREAM PRODUCTS OR DERIVATES

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 2,000,000.00 DIVIDED INTO
ORDINARY SHARES 2,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

N/A

NET WORTH

:

N/A

 

 

 

STAFF STRENGTH

:

10 [2013]

BANKER (S)

:

AMBANK (M) BHD
CIMB BANK BHD
EON BANK BHD
OCBC BANK (MALAYSIA) BHD
PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MATURE

 

HISTORY / BACKGROUND

The SC is an exempt private company which is allowed to have a minimum of two and a maximum of twenty shareholders and all the shareholders must be individuals. An exempt company is a type of private limited company. 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, suing or be sued by other companies. The SC is governed by the Companies Act, 1965 and must file in its annual return. The SC need not file in its financial statements but it has to file in a document duly signed by its director in charge of its finance, the secretary and its auditor stating that the SC is able to meet all its obligations as and when they fall due. Although the SC is not required to file in its financial statements, it also has to prepare its financial account which must be presented at the Annual General Meeting.

The SC is principally engaged in the (as a / as an) distributor of chemical, palm oil, palm oil down-stream products or derivates.

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

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

22/11/2012

MYR 5,000,000.00

MYR 2,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. CHEN TECK LONG +

11, JALAN RHU 1/KS6, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.

630810-01-5199

1,500,000.00

75.00

MS. TAN PEEK JONG +

11, JALAN RHU 1/KS6, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.

630417-08-5166

460,000.00

23.00

MR. TAN THENG SIANG +

54 HALAMAN KIKIK, TAMAN INDERAWASIH, 13600 PRAI, PULAU PINANG, MALAYSIA.

520621-08-5377

40,000.00

2.00

 

 

 

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

------

 

 

 

2,000,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. CHEN CAESAR

Address

:

11, JALAN RHU 1/KS6, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

900615-10-5911

Date of Birth

:

15/06/1990

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

18/09/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. TAN THENG SIANG

Address

:

54 HALAMAN KIKIK, TAMAN INDERAWASIH, 13600 PRAI, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

520621-08-5377

Date of Birth

:

21/06/1952

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

14/07/1994

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MS. TAN PEEK JONG

Address

:

11, JALAN RHU 1/KS6, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

630417-08-5166

Date of Birth

:

17/04/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/12/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. CHEN TECK LONG

Address

:

11, JALAN RHU 1/KS6, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

630810-01-5199

Date of Birth

:

10/08/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

15/10/2003



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHEN TECK LONG

 

Position

:

EXECUTIVE DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

S L NG & ASSOCIATES

Auditor' Address

:

41B, JALAN GOH HOCK HUAT, 41400 KLANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LEE BEE CHING

 

 

 

 

 

New IC No

:

710721-10-5678

 

Address

:

1, JALAN SENTOSA 61, BATU BELAH, 41050 KLANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

AMBANK (M) BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

CIMB BANK BHD

 

 

 

 

 

 

 

 

 

3)

Name

:

EON BANK BHD

 

 

 

 

 

 

 

 

 

4)

Name

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

5)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

12/11/2004

N/A

BUMIPUTRACOMMERCE BANK BERHAD

MYR 1,000,000.00

Unsatisfied

2

29/02/2008

OPEN CHARGE

OCBC BANK (MALAYSIA) BHD

N/A

Unsatisfied

3

05/06/2008

N/A

AMBANK (M) BHD

MYR 400,000.00

Unsatisfied

4

21/08/2009

N/A

EON BANK BHD

MYR 7,000,000.00

Unsatisfied

5

27/07/2011

N/A

PUBLIC BANK BHD

N/A

Unsatisfied

6

23/08/2011

N/A

EON BANK BHD

N/A

Unsatisfied

 

 

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

 

 

 




CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

CHEMICAL INDUSTRY,PHARMACEUTICAL INDUSTRIES

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

CHEMICAL, PALM OIL, PALM OIL DOWN-STREAM PRODUCTS OR DERIVATES

 

 

 

 

Brand Name

:

SURIA

 

 

 

 

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

10

10

10

12

10

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) distributor of chemical, palm oil, palm oil down-stream products or derivates.

The SC's products ranges are including fatty acids, fatty acid methyl esters, fatty alcohols, refined glycerine, coconut diethanolamide, specialty esters, surfactants etc.

The SC also able to offer, upon request, different composition of fatty acids, fatty acid methyl esters and fatty alcohols to meet the client specify requirement.

The products are used in wide range of industries such as food, chemical and pharmaceuticals.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-31631386

Match

:

N/A

 

 

 

Address Provided by Client

:

JALAN PERUSAHAAN IDAMMAN KLANG SELANGOR DARUL EHAS

Current Address

:

LOT 14321, JALAN PERUSAHAAN 24, KAMPUNG IDAMAN PANDAMARAN , 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

NO

 

Other Investigations


On 10th December 2013 we contacted one of the staff from the Admin Department. She provided some information on the SC.

The address provided is incomplete.

FINANCIAL ANALYSIS

 

 

The SC is a private exempt company which does not need to file in its accounts with the Registrar of Companies for the information of the public. Therefore, we are not able to comment on the SC's financial performance.

 

 

 

 

 

 

 

Overall financial condition of the SC : N/A

 

 

 

 

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

46202 : 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 in the 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. Malaysia currently accounts for 39 % of world palm oil production and 44% of world exports. Taken into account of other oils & fats produced in the country, Malaysia accounts for 12% and 27% of the world's total production and exports of oils and fats. Being one of the biggest producers and exporters of palm oil and palm oil products, Malaysia has an important role to play in fulfilling the growing global need for oils and fats sustainably.

 

In year 2013, the production of crude palm oil is envisaged to rebound 2.5% to 18.9 million tonnes on account of expanded matured areas to 4.44 million hectares. However Malaysian palm oil’s supply and demand for February 2013 with palm oil stocks continued to be lower for the consecutive two months at 2.444 million tonnes, a decrease of 5.23% from January 2013 and was slightly above the average estimation at 2.42 million tonnes. The exports in February 2013 fell 13.98% to 1.398 million tonnes while the palm oil production reduced 19.15% to 1.296 million tonnes. The palm oil production would be expected to be in dismal as the oil palm had entered a low yield cycle currently.

 

According to the 2013 Budget, the palm oil sector contracted 8.6% during the first half of the year 2012 due to the less favourable weather conditions and natural production down cycle that constrained the output of fresh fruit bunches. However, the yield is expected to improve in the later part of the year, with the subsector registering a smaller contraction of 2.8% in 2012. Total planted areas of oil palm increased substantially by 77,106 hectares to five million hectares as at end-June 2012. Of the total planted areas, 28.4% or 1.5 million hectares are located in Sabah. With the acceleration of planting activity, total planted areas are expected to increase to 5.1 million hectares in 2012.

 

According to the Performance Management and Delivery Unit (Pemandu), the Palm Oil National Key Economic Area (NKEA), Malaysia's most important commodity is expected to contribute from RM125 billion to RM178 billion to the Gross National Income (GNI) and create about 41,600 jobs by 2020, with the government's focus on eight Entry Point Projects (EPPs). As part of the government's efforts to accelerate the country's replanting and new planting programme and manage stock levels, the government has allocated an additional RM432 million as funds for independent smallholders' replanting and new planting initiatives in 2013. According to Pemandu, the government will also accelerate the replanting of oil palm by plantations and smallholders as well as new planting by independent smallholders to 130,000 ha. and raise the area complying with best practices by an additional 200,000 ha. in 2013.

 

However, the future performance of the industry is unpredictable as with many factors that can give impact to the industry is still unknown. Nationally, the sentiments seem positive, internation­ally there are mixed signals but with the current growth rate, an expected increase in demand, a recovering glo­bal economy, analysts and industry sources are reckoning that the bull may be able to hold the bear back.

 

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 : Mature

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1994, the SC is an Exempt Private company, focusing on distribution of chemical, palm oil, palm oil down-stream products or derivates. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. However, with a weak shareholders' backing, the SC's capital position is weak. Inadequate capital may be a constraint to the SC as it limits its ability to expand 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. Being a small company, the SC's business operation is supported by 10 employees. Overall, we regard that the SC's management capability is average.

As the SC is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health.

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.

The industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the SC's growth prospect is very much depends on its capacity in sustaining its performance in the market.

In view of the above, we only recommend credit be proceeded to the SC with guarantee.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

SURIACHEM SDN. BHD.

 

Financial Year End

2007-12-31

2006-12-31

2005-12-31

2004-12-31

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

NO

Financial Type

FULL

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

46,236,591

18,570,281

8,754,787

11,936,597

 

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

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

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

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

Total Turnover

46,236,591

18,570,281

8,754,787

11,936,597

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

338,327

138,787

28,461

36,331

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

338,327

138,787

28,461

36,331

Taxation

<144,979>

<30,262>

<19,796>

<9,684>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

193,348

108,525

8,665

26,647

 

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

193,348

108,525

8,665

26,647

 

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

193,348

108,525

8,665

26,647

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

109,626

1,101

<7,564>

<34,211>

 

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

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

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

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

As restated

109,626

1,101

<7,564>

<34,211>

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

302,974

109,626

1,101

<7,564>

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

302,974

109,626

1,101

<7,564>

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Hire purchase

2,985

-

-

-

 

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

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

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

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

 

2,985

-

-

-

 

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

 

 

 

 

 

 

BALANCE SHEET

 

 

SURIACHEM SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

303,931

21,043

22,481

20,529

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

303,931

21,043

22,481

20,529

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

996,554

-

-

-

Trade debtors

7,938,258

-

-

-

Other debtors, deposits & prepayments

12,581

-

-

-

Short term deposits

448,239

-

-

-

Cash & bank balances

1,427,462

-

-

-

 

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

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

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

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

TOTAL CURRENT ASSETS

10,823,094

4,913,607

2,513,270

3,668,786

 

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

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

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

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

TOTAL ASSET

11,127,025

4,934,650

2,535,751

3,689,315

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

8,499,752

-

-

-

Other creditors & accruals

185,721

-

-

-

Hire purchase & lease creditors

52,254

-

-

-

Bill & acceptances payable

749,000

-

-

-

Amounts owing to director

618,249

-

-

-

Provision for taxation

14,528

-

-

-

 

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

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

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

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

TOTAL CURRENT LIABILITIES

10,119,504

4,324,125

2,033,322

3,295,466

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

703,590

589,482

479,948

373,320

 

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

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

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

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

TOTAL NET ASSETS

1,007,521

610,525

502,429

393,849

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

500,000

500,000

500,000

400,000

 

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

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

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

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

TOTAL SHARE CAPITAL

500,000

500,000

500,000

400,000

 

 

 

 

 

RESERVES

 

 

 

 

Retained profit/(loss) carried forward

302,974

109,626

1,101

<7,564>

 

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

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

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

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

TOTAL RESERVES

302,974

109,626

1,101

<7,564>

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

802,974

609,626

501,101

392,436

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Hire purchase creditors

199,411

-

-

-

Deferred taxation

5,136

-

-

-

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

204,547

899

1,328

1,413

 

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

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

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

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

 

1,007,521

610,525

502,429

393,849

 

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

SURIACHEM SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

Cash

1,875,701

-

-

-

Net Liquid Funds

1,126,701

-

-

-

Net Liquid Assets

<292,964>

589,482

479,948

373,320

Net Current Assets/(Liabilities)

703,590

589,482

479,948

373,320

Net Tangible Assets

1,007,521

610,525

502,429

393,849

Net Monetary Assets

<497,511>

588,583

478,620

371,907

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

1,000,665

-

-

-

Total Liabilities

10,324,051

4,325,024

2,034,650

3,296,879

Total Assets

11,127,025

4,934,650

2,535,751

3,689,315

Net Assets

1,007,521

610,525

502,429

393,849

Net Assets Backing

802,974

609,626

501,101

392,436

Shareholders' Funds

802,974

609,626

501,101

392,436

Total Share Capital

500,000

500,000

500,000

400,000

Total Reserves

302,974

109,626

1,101

<7,564>

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.19

-

-

-

Liquid Ratio

0.97

-

-

-

Current Ratio

1.07

1.14

1.24

1.11

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

8

-

-

-

Debtors Ratio

63

-

-

-

Creditors Ratio

67

-

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

1.25

-

-

-

Liabilities Ratio

12.86

7.09

4.06

8.40

Times Interest Earned Ratio

114.34

-

-

-

Assets Backing Ratio

2.02

1.22

1.00

0.98

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

0.73

0.75

0.33

0.30

Net Profit Margin

0.42

0.58

0.10

0.22

Return On Net Assets

33.88

22.73

5.66

9.22

Return On Capital Employed

32.21

22.73

5.66

9.22

Return On Shareholders' Funds/Equity

24.08

17.80

1.73

6.79

Dividend Pay Out Ratio (Times)

0.00

-

-

-

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.24

UK Pound

1

Rs.101.80

Euro

1

Rs.84.87

 

 

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

--

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.