MIRA INFORM REPORT

 

 

Report Date :

07.02.2013

 

IDENTIFICATION DETAILS

 

Name :

PETRONAS LUBRICANTS INTERNATIONAL SDN. BHD.

 

 

Formerly Known As :

PERECOM INDUSTRIES SDN BHD (29/08/2007)

 

 

Registered Office :

Tower 1,Petronas Twin Towers, Kuala Lumpur City Centre, Kuala Lumpur, 50088 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

09.06.1999

 

 

Com. Reg. No.:

485509-D

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing & Trading of Lubricant Product

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA


 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

485509-D

COMPANY NAME

:

PETRONAS LUBRICANTS INTERNATIONAL SDN. BHD.

FORMER NAME

:

PERECOM INDUSTRIES SDN BHD (29/08/2007)

INCORPORATION DATE

:

09/06/1999

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

TOWER 1,PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, KUALA LUMPUR, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LEVEL 29, TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-23310761

FAX.NO.

:

03-23312586

WEB SITE

:

WWW.PLI-PETRONAS.COM

CONTACT PERSON

:

PEDRETTI ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

19201

PRINCIPAL ACTIVITY

:

MANUFACTURING & TRADING OF LUBRICANT PRODUCT

AUTHORISED CAPITAL

:

MYR 100,000,000.00 DIVIDED INTO
ORDINARY SHARE 100,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 150,000,000.00 DIVIDED INTO
ORDINARY SHARES 100,000,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 50,000,000 CASH OF MYR 1,000.00 EACH.

 

 

 

SALES

:

MYR 3,504,483,000 [2011]

NET WORTH

:

MYR 1,820,495,000 [2011]

 

 

 

STAFF STRENGTH

:

N/A

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND


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

The SC is principally engaged in the (as a / as an) manufacturing & trading of lubricant product.

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

The immediate holding company of the SC is PETROLIAM NASIONAL BERHAD (PETRONAS), a company incorporated in MALAYSIA.

The ultimate holding company of the SC is PETROLIAM NASIONAL BERHAD, a company incorporated in MALAYSIA.


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



Name

Address

IC/PP/Loc No

Shareholding

(%)

PETROLIAM NASIONAL BERHAD (PETRONAS)

TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

20076

100,050,000.00

100.00

 

 

 

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

------

 

 

 

100,050,000.00

100.00

 

 

 

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

=====


+ Also Director


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



Local No

Company

(%)

As At

NL011000

PLI (NETHERLANDS) B.V.

100

31/12/2011

 

 

 

 

 

MU011000

PETRONAS LUBRICANTS AFRICA LIMITED

100

31/12/2011

 

 

 

 

 

 

HK011002

PETRONAS CHINA COMPANY LIMITED

100

31/12/2011

 

 

 

 

 

 




 

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. AMIR HAMZAH BIN AZIZAN

Address

:

NO. 111 SERENE KIARA, JALAN SERENE KIARA 3, DESA SRI HARTAMAS, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

670413-07-5573

Date of Birth

:

13/04/1967

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

15/07/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. ABDUL RAHIM BIN HAJI HASHIM

Address

:

5A-05-06 BUNGARAYA CONDOMINIUM, PERSIARAN GOLF, SECTION U2, SAUJANA RESORT, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

531005-01-5539

Date of Birth

:

05/10/1953

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/09/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. WAN ZULKIFLEE BIN WAN ARIFFIN

Address

:

NO.27, JALAN 4M, AMPANG JAYA, 68000 AMPANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

600819-07-5545

Date of Birth

:

19/08/1960

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

14/03/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. MOHAMMAD MEDAN BIN ABDULLAH

Address

:

NO. 3 JALAN NAJAT 11/2N, SEKSYEN 11, 40100 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

580815-13-5699

Date of Birth

:

15/08/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/08/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MS. RASHIDAH BINTI ALIAS @ AHMAD

Address

:

NO.1, JALAN BU 1/4, TAMAN BUKTI UTAMA, BUKIT ANTARABANGSA, 68000 AMPANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

720624-05-5356

Date of Birth

:

24/06/1972

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

15/07/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

RAIHA AZNI BINTI ABD RAHMAN

Address

:

LOT 2968, JALAN PENCHALA INDAH 5, KAMPUNG SUNGAI PENCHALA, JALAN DAMANSARA, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

601014-11-5276

Date of Birth

:

14/10/1960

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/08/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

PEDRETTI

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

AMIR HAMZAH BIN AZIZAN

 

Position

:

CEO

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG DESA MEGAT & CO

Auditor' Address

:

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

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. IZZAM BIN IBRAHIM

 

 

 

 

 

New IC No

:

760630-14-5557

 

Address

:

20 LORONG WANGSA SIAGA 5, WANGSA MELAWATI, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. HALIMATUN SAADIAH BT.ABD HALIM

 

 

 

 

 

New IC No

:

741113-06-5280

 

Address

:

6,JALAN 5, TAMAN HARMONIS, GOMBAK, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

LEGAL CHECK AGAINST SC


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

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC


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

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

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A

 

 

 


The SC refused to disclose its suppliers.

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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

X

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

WORLDWIDE

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES
CHEQUESTELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

LUBRICANTS

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2010

2009

2008

 

 

 

 

 

 

 

GROUP

1,900

1,290

1,216

 

 

 

 

 

 

COMPANY

N/A

68

N/A

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing & trading of lubricant product.

The SC is part of the PETRONAS Group of Companies.

The SC is a global oil lubricant business with operations globally.

The SC is the lubricants arm of Petronas globally.

Petronas's top Syntium branded range of engine oils leads the charge for the automotive passenger car market.

The SC plans to become one of the top five lubricant companies in the world with the addition of the Petronas Syntium Moto premium grade synthetic motorcycle engine oil to its lubricant line-up.

The SC claims that Syntium Moto gives optimum acceleration, power output, improves fuel efficiency and provides engine protection, while its proprietary DualTech additive improves gear-change performance.

Syntium Moto comes in seven different grades, four for four-stroke engines and three for two-stroke engines.

The SC is structured and focused on offering the best lubricants and functional fluids to the world.

PROJECTS


No projects found in our databank

RECENT DEVELOPMENT


March 16, 2010

The SC aims to be the lubricant market leader in Malaysia in five to 10 years by introducing more high standard lubricant products and having aggressive marketing campaigns, said Petronas Dagangan Bhd lube business division general manager Mohd Shobri A. Bakar.

Currently, we control about 21% to 22% of the local lubricants market. There are about 30 players in the market and we have to compete with all of them, which will take some time, he told reporters yesterday after the launch of Petronas Syntium Moto, a synthetic motorcycle engine oil marketed by Petronas Dagangan.

Petronas Lubricants International marketing strategy and business development general manager Domenico Ciaglia said Petronas Syntium Moto was the result of two years' hard work in research and development (R&D) and Malaysia was the first country to introduce the new product.

Our continuous long-term lubricant development programme that produced Petronas Syntium Moto further proves our R&D ingenuity in developing world-class lubricant products, he said. Petronas Syntium Moto is currently available at all Petronas service stations and Kedai Mesra outlets nationwide at prices ranging from RM23 to RM88.

February 8, 2010

The SC has advised OEM/Lube News that it plans to increase its annual lube blending capacity from the present 54 million litres to 90 million litres at its Malacca Lubricants Blending Plant located at Kawasan Perindustrian Tangga Batu, Tangga Batu, Melaka. The expansion project which began last month, is expected to be completed by the end of February 2011.

Mr. Luca Genovese, Head of Manufacturing & Logistics, PETRONAS Lubricants International (PLI) told OEM/Lube News "We are presently working at 90% of capacity, sometimes there is difficulty during the peak of demand. Moreover we forecast a growth of 10% in volume per year."

"We plan to do a debottlenecking exercise that will result in improved production capacity, with concentrations in three areas: i) reconfiguration and addition of new base oil and additives storage tanks, ii) reconfiguration and addition of new finished oil storage tanks and iii) addition of a new multipurpose filling line from 0.5 litres to 5 litres." said Genovese.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-23310761

Match

:

N/A

 

 

 

Address Provided by Client

:

LEVEL 29, TOWER 1, PETRONAS TWIN TOWERS KLCC, KUALA LUMPUR 50088

Current Address

:

LEVEL 29, TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The SC refused to disclose the SC's number of employees.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

2.73%

]

 

Return on Net Assets

:

Unfavourable

[

<0.91%>

]

 

 

 

 

 

 

 

 

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 unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

73 Days

]

 

Debtor Ratio

:

Unfavourable

[

132 Days

]

 

Creditors Ratio

:

Favourable

[

0 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. 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

:

Unfavourable

[

0.35 Times

]

 

Current Ratio

:

Unfavourable

[

0.52 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

:

Unfavourable

[

0.25 Times

]

 

Gearing Ratio

:

Unfavourable

[

2.09 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. The SC was highly geared, thus it had a high financial risk. The SC was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the SC will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the SC has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the SC's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. The SC's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the SC : POOR

 

 

 

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

19201 : Manufacture of refined petroleum products

 

 

INDUSTRY :

OIL & GAS

 

 

 


The oil and gas sector is expected to play a bigger role in drive Malaysian economy 2012 and beyond. Oil consumption will probably not keep pace with underlying economic expansion, because the country has been replacing oil-fired power stations with coal-fuelled plants, undermining the oil demand trend. In addition, the government has been reducing fuel subsidies, which could have a negative impact on consumption. Fuel pricing remains under state control.


The gas production forecasted 64.0bcm in 2012, with consumption of 36.2bcm. Estimated exports of 27.8bcm in 2012 are forecast to not exceed 33bcm over our forecast period to 2021. While the oil sector forecasted average output of 632,200b/d in 2012, rising to a new peak of 881,000b/d in 2017, before a steady decline to 780,000b/d by 2021.


Malaysia's oil export revenues estimated to rise around US$8.5billion by 2016. The export value of gas also expected to rise US$14.2billion by 2016. Combined crude oil and gas export revenues are therefore expected to be US$22.7billion in 2016. Rising on value of Oil & Gas industry can drive Malaysia to put 2.6% on global GDP growth.


The oil and gas sector remained a mainstay of Malaysia's growth at the year 2011. It accounted for about 20% of the country's gross domestic product (GDP). The industry expected to register 6.5% GDP growth in the year 2012 compared to 5.1% growth in the GDP in 2011.


The RM300bil budgeted translates into annual capex of RM60bil, which would be a new high. It will go towards exploration and production activities, and the replacement of ageing oil and gas-producing assets in Malaysia.


Meanwhile, the development of a marginal field could take less than 24 months. As a deepwater field may take up to five years to be developed, the development of marginal fields is aimed at arresting the projected long-term decline in domestic oil and gas production over the next 15 years and boosting the somewhat stagnant reserves, which could run out in 15 years if no action is taken.


According National Key Economic Areas (NKEAs), growth in the oil and gas expected positive. International Trade and Industry department said, investments in the oil and gas sector will continue to remain strong and spur private investments, surpassing numbers in the manufacturing sector.


Although the Oil & Gas industry having internal problam, it is expected to remain for the next two years from 2012, but overall oil and gas output is expected to be ramped up at year 2012 due to following completion of various maintenance work in Peninsular Malaysia.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1999, the SC is a Private Limited company, focusing on manufacturing & trading of lubricant product. 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. 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 penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


Despite the lower turnover, the SC's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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. The high gearing ratio clearly implied that the SC was supported by more debt than equity. Thus, the SC is exposed to high financial risk. Given a positive net worth standing at MYR 1,820,495,000, 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 overall payment habit is fair and this clearly implied a weak credit control of the SC.


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 normally.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

PETRONAS LUBRICANTS INTERNATIONAL SDN. BHD.

 

Financial Year End

31/12/2011

31/03/2011

31/03/2010

31/03/2009

31/03/2008

Months

9

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

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

3,504,483,000

3,972,487,000

3,853,437,000

4,147,077,000

206,000

 

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

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

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

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

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

Total Turnover

3,504,483,000

3,972,487,000

3,853,437,000

4,147,077,000

206,000

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

92,640,000

83,718,000

189,993,000

80,778,000

<78,340,000>

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

92,640,000

83,718,000

189,993,000

80,778,000

<78,340,000>

Taxation

<42,850,000>

<52,961,000>

<40,571,000>

<86,419,000>

<41,000>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

49,790,000

30,757,000

149,422,000

<5,641,000>

<78,381,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

106,045,000

75,288,000

<74,134,000>

<63,617,000>

8,857,000

Prior year adjustment

-

-

-

<4,876,000>

-

 

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

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

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

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

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

As restated

106,045,000

75,288,000

<74,134,000>

<68,493,000>

8,857,000

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

155,835,000

106,045,000

75,288,000

<74,134,000>

<69,524,000>

DIVIDENDS - Ordinary (paid & proposed)

-

-

-

-

<3,350,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

155,835,000

106,045,000

75,288,000

<74,134,000>

<72,874,000>

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Term loan / Borrowing

-

-

-

271,851,000

-

Others

<122,811,000>

<150,535,000>

18,738,000

6,797,000

-

 

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

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

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

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

 

 

<122,811,000>

<150,535,000>

18,738,000

278,648,000

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

PETRONAS LUBRICANTS INTERNATIONAL SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

485,399,000

452,943,000

371,410,000

322,824,000

317,130,000

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investment properties

85,227,000

127,266,000

-

-

-

Investments

31,000

31,000

31,000

34,000

35,000

Deferred assets

4,681,256,000

4,707,858,000

-

107,691,000

119,541,000

Others

27,281,000

25,391,000

128,627,000

4,413,000

5,542,000

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

4,793,795,000

4,860,546,000

128,658,000

112,138,000

125,118,000

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Goodwill on consolidation

-

-

4,807,098,000

4,733,445,000

4,866,811,000

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

-

-

4,807,098,000

4,733,445,000

4,866,811,000

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

5,279,194,000

5,313,489,000

5,307,166,000

5,168,407,000

5,309,059,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

702,978,000

498,211,000

405,313,000

425,714,000

408,229,000

Trade debtors

1,262,714,000

1,127,666,000

991,409,000

937,224,000

1,089,615,000

Short term deposits

-

-

191,283,000

115,877,000

6,650,000

Cash & bank balances

137,709,000

227,105,000

111,096,000

148,745,000

410,504,000

Others

56,701,000

61,639,000

43,682,000

72,445,000

182,771,000

 

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

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

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

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

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

TOTAL CURRENT ASSETS

2,160,102,000

1,914,621,000

1,742,783,000

1,700,005,000

2,097,769,000

 

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

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

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

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

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

TOTAL ASSET

7,439,296,000

7,228,110,000

7,049,949,000

6,868,412,000

7,406,828,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

-

549,816,000

530,173,000

721,829,000

Other creditors & accruals

-

-

289,907,000

278,566,000

325,984,000

Hire purchase & lease creditors

1,562,000

1,143,000

1,743,000

-

-

Bank overdraft

-

-

15,579,000

-

-

Short term borrowings/Term loans

3,568,777,000

3,674,803,000

62,955,000

107,450,000

4,915,284,000

Bill & acceptances payable

-

-

150,000

-

-

Other liabilities & accruals

40,635,000

43,340,000

65,194,000

-

-

Amounts owing to holding company

293,346,000

302,312,000

98,660,000

88,041,000

50,523,000

Amounts owing to related companies

-

-

36,291,000

43,267,000

-

Provision for taxation

-

-

-

16,738,000

52,745,000

Other liabilities

222,519,000

189,656,000

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

4,126,839,000

4,211,254,000

1,120,295,000

1,064,235,000

6,066,365,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<1,966,737,000>

<2,296,633,000>

622,488,000

635,770,000

<3,968,596,000>

 

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

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

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

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

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

TOTAL NET ASSETS

3,312,457,000

3,016,856,000

5,929,654,000

5,804,177,000

1,340,463,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

150,000,000

150,000,000

150,000,000

150,000,000

123,152,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

150,000,000

150,000,000

150,000,000

150,000,000

123,152,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

1,179,044,000

1,179,044,000

1,179,044,000

912,204,000

625,104,000

Capital reserve

-

-

26,700,000

26,700,000

-

Exchange equalisation/fluctuation reserve

403,321,000

350,247,000

-

-

-

General reserve

<94,405,000>

<24,295,000>

-

-

-

Retained profit/(loss) carried forward

155,835,000

106,045,000

75,288,000

<74,134,000>

<63,617,000>

Others

26,700,000

26,700,000

182,148,000

51,394,000

<36,513,000>

 

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

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

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

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

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

TOTAL RESERVES

1,670,495,000

1,637,741,000

1,463,180,000

916,164,000

524,974,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,820,495,000

1,787,741,000

1,613,180,000

1,066,164,000

648,126,000

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

-

-

3,754,787,000

4,130,436,000

45,707,000

Other long term borrowings

226,180,000

75,565,000

262,322,000

228,397,000

257,798,000

Hire purchase creditors

-

-

1,515,000

-

-

Deferred taxation

13,550,000

86,131,000

65,938,000

223,035,000

210,360,000

Others

1,252,232,000

1,067,419,000

231,912,000

156,145,000

178,472,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,491,962,000

1,229,115,000

4,316,474,000

4,738,013,000

692,337,000

 

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

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

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

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

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

 

3,312,457,000

3,016,856,000

5,929,654,000

5,804,177,000

1,340,463,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

PETRONAS LUBRICANTS INTERNATIONAL SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

137,709,000

227,105,000

302,379,000

264,622,000

417,154,000

Net Liquid Funds

137,709,000

227,105,000

286,800,000

264,622,000

417,154,000

Net Liquid Assets

<2,669,715,000>

<2,794,844,000>

217,175,000

210,056,000

<4,376,825,000>

Net Current Assets/(Liabilities)

<1,966,737,000>

<2,296,633,000>

622,488,000

635,770,000

<3,968,596,000>

Net Tangible Assets

3,312,457,000

3,016,856,000

1,122,556,000

1,070,732,000

<3,526,348,000>

Net Monetary Assets

<4,161,677,000>

<4,023,959,000>

<4,099,299,000>

<4,527,957,000>

<5,069,162,000>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

3,796,519,000

3,751,511,000

4,098,901,000

4,466,283,000

5,218,789,000

Total Liabilities

5,618,801,000

5,440,369,000

5,436,769,000

5,802,248,000

6,758,702,000

Total Assets

7,439,296,000

7,228,110,000

7,049,949,000

6,868,412,000

7,406,828,000

Net Assets

3,312,457,000

3,016,856,000

5,929,654,000

5,804,177,000

1,340,463,000

Net Assets Backing

1,820,495,000

1,787,741,000

1,613,180,000

1,066,164,000

648,126,000

Shareholders' Funds

1,820,495,000

1,787,741,000

1,613,180,000

1,066,164,000

648,126,000

Total Share Capital

150,000,000

150,000,000

150,000,000

150,000,000

123,152,000

Total Reserves

1,670,495,000

1,637,741,000

1,463,180,000

916,164,000

524,974,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.03

0.05

0.27

0.25

0.07

Liquid Ratio

0.35

0.34

1.19

1.20

0.28

Current Ratio

0.52

0.45

1.56

1.60

0.35

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

73

46

38

37

123

Debtors Ratio

132

104

94

82

327

Creditors Ratio

0

0

52

47

217

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

2.09

2.10

2.54

4.19

8.05

Liabilities Ratio

3.09

3.04

3.37

5.44

10.43

Times Interest Earned Ratio

0.25

0.44

11.14

1.29

<0.03>

Assets Backing Ratio

33.11

30.15

11.22

10.70

<35.25>

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

2.64

2.11

4.93

1.95

<6.77>

Net Profit Margin

1.42

0.77

3.88

<0.14>

<5.69>

Return On Net Assets

<0.91>

<2.21>

3.52

6.19

<0.17>

Return On Capital Employed

<0.91>

<2.21>

1.94

3.41

<0.04>

Return On Shareholders' Funds/Equity

2.73

1.72

9.26

<0.53>

<10.67>

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.05

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0




 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.08

UK Pound

1

Rs.83.12

Euro

1

Rs.72.02

 

 

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.