MIRA INFORM REPORT

 

 

Report Date :

18.02.2013

 

IDENTIFICATION DETAILS

 

Name :

PETRONAS CHEMICALS MARKETING SDN BHD

 

 

Formerly Known As :

MALAYSIAN INTERNATIONAL TRADING CORPORATION SDN. BHD. (30/05/2011)

 

 

Registered Office :

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

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

28.01.1982

 

 

Com. Reg. No.:

80474-V

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Petrochemical and General Merchandise Products

 

 

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 – 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.

:

80474-V

COMPANY NAME

:

PETRONAS CHEMICALS MARKETING SDN BHD

FORMER NAME

:

MALAYSIAN INTERNATIONAL TRADING CORPORATION SDN. BHD. (30/05/2011)

INCORPORATION DATE

:

28/01/1982

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

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

BUSINESS ADDRESS

:

TOWER 2, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, LEVEL 21, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-23313018

FAX.NO.

:

03-23314079

CONTACT PERSON

:

HAPIZ ( PRESIDENT )

 

 

 

INDUSTRY CODE

:

46691

PRINCIPAL ACTIVITY

:

TRADING OF PETROCHEMICAL AND GENERAL MERCHANDISE PRODUCTS

AUTHORISED CAPITAL

:

MYR 200,000,000.00 DIVIDED INTO
ORDINARY SHARE 100,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 1,000,000.00 OF MYR 100.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 12,500,005.00 DIVIDED INTO
ORDINARY SHARES 12,500,005 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 8,388,906,000 [2011]

NET WORTH

:

MYR 115,717,000 [2011]

M1000 OVERALL RANKING

:

42[2011]

M1000 INDUSTRY RANKING

:

8[2011]

 

 

 

STAFF STRENGTH

:

400 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

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) trading of petrochemical and general merchandise products.

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

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

 

 

 

 

 

 

YEAR

2011

2009

2008

2005

 

OVERALL RANKING

42

29

24

35

 

INDUSTRY RANKING

8

8

9

8

 


The immediate holding company of the SC is PETRONAS CHEMICALS GROUP BERHAD, 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

(%)

PETRONAS CHEMICALS GROUP BERHAD

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

459830

12,500,005.00

100.00

 

 

 

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

------

 

 

 

12,500,005.00

100.00

 

 

 

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

=====


+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. ABD HAPIZ BIN ABDULLAH

Address

:

24,JALAN SERUNAI 2, TAMAN KLANG JAYA, 41200 KLANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

581007-10-6261

Date of Birth

:

07/10/1958

 

 

 

Nationality

:

MALAYSIAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. WAN SHAMILAH BINTI WAN MUHAMMAD SAIDI

Address

:

10,JALAN PJU 1A/26D, ARA DAMANSARA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

701117-03-5410

Date of Birth

:

17/11/1970

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

03/08/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. MOHD FARID BIN MOHD ADNAN

Address

:

58,JALAN TERATAK U8/95E, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

620826-08-6267

Date of Birth

:

26/08/1962

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/10/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. YUSA' BIN HASSAN

Address

:

2 JALAN SUASA 7/1L, SEKSYEN 7, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

630318-01-5701

Date of Birth

:

18/03/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/10/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. MUHAMMAD SHAH BIN ALI

Address

:

2 JALAN BU 7/1, BANDAR UTAMA , 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

610924-01-5893

Date of Birth

:

24/09/1961

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

02/02/2012

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

HAPIZ

 

Position

:

PRESIDENT

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG DESA MEGAT & CO

Auditor' Address

:

KPMG TOWER 8, FIRST AVENUE, BANDA UTAMA , 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MUHAMMAD ISA BIN OTHMAN

 

 

 

 

 

New IC No

:

590115-10-5383

 

Address

:

27, JALAN AU 5D/2B, OFF JALAN PERMATA 9, TAMAN PERMATA, 53300 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

:

YES

Percentage

:

40%

Overseas

:

YES

Percentage

:

60%

Import Countries

:

JAPAN,EUROPE,CHINA,PHILIPPINES



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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

AUSTRALIA

INDIA

ASIA

MIDDLE EAST

Credit Term

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
CHEQUESTELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

PETROCHEMICALS, PLASTIC RAW MATERIALS AND OTHERS

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

2008

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

400

400

350

350

300

300

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of petrochemical and general merchandise products.

The SC offers a wide range of products including:

1) Polymers

2) Polypropylene - PP is used to produce automotive parts, appliances, film,fiber and filaments.

3) High Density Polyethylene - HDPE is used for blown film moulding, injection moulding, film, pipe conduit, sheet, wire and cable. It is produced in pallet form.

4) Linear Low Density Polyethylene - LLDPE is used for variety of derivatives through film, extrusion coating, injection molding, rotational molding, using octane and butanes co-polymers. It is produced in pallet form.

5) Polyvinyl Chloride - PVC is used in the production of pipe, flooring, wire & cable, building construction, home furnishing, film & sheet and automotive parts.It is produced in powder form.

6) Low Density Polyethylene - LDPE is used for injection moulding, film, pipe conduit, wire and cable.

7) Chemicals - Basic & Intermediate Chemicals : Aromatics, Olefins, Oxygenates, fertilisers and agrochemicals

8) Agricultural Products: Rice, Rubber, Palm Oil, Crude Coconut Oil and etc.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-23313018

Match

:

N/A

 

 

 

Address Provided by Client

:

LEVEL 15 TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE,

Current Address

:

TOWER 2, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, LEVEL 21, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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 SC refused to verify the address provided.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Favourable

[

70.01%

]

 

Return on Net Assets

:

Favourable

[

92.17%

]

 

 

 

 

 

 

 

 

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. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Acceptable

[

1.07 Times

]

 

 

 

 

 

 

 

 

The SC has an adequate liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

11.70 Times

]

 

 

 

 

 

 

 

 

The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC's liabilities 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 : FAIR

 

 

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

 

 

 

 

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

46691 : Wholesale of industrial chemicals

 

 

INDUSTRY :

MANUFACTURING

 

 

 


The manufacturing sector is expected to be driven by higher value-added activities in Malaysia.The GDP growth for first quarter 2012 indicating manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia recorded a 12% jump in approved investments in the manufacturing sector in the first quarter of 2012 compared with the corresponding period 2011. According to Federation of Malaysian Manufacturers (FMM), manufacturing sector expected to improve in the third quarter 2012 despite concerns over external developments and the rising cost of production.


The rubber products sub-sector is expected to remain resilient supported by continuous improvements in medical and healthcare standards in emerging markets as well as demand from niche markets such as the oil and gas sector for rubber hoses. Malaysia rubber exports are forecast to grow at 10%, at the end of 2012 driven by global demand for medical gloves as well as rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber shipments in Malaysia due to hospitals and clinics place more intrest on rising health and hygiene awareness.


The Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.


Chemical production are expected to show 6.2% in year 2012 and 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.


According to Malaysian Iron and Steel Industry Federation, first half of 2012 would remain weak for the local steel industry due to eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries. At first quarter 2012, the average local steel price is trading atRM2,300 per tonne compared with the average international price of US$740 (RM2,331) per tonne.


According to the Department of Statistics, Malaysia during the first quarter 2012, the manufacturing output increased due to activities in major sub-sectors such as petroleum, chemical, rubber and plastic products (10.5 %), and non-metallic mineral products, basic metal and fabricated metal products (3.9 %). Meanwhile, it's also announced that the manufacturing sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared with RM47.7 billion in May 2011. The Industrial Production Index (IPI ) increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %).


Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such as solar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1982, the SC is a Private Limited company, focusing on trading of petrochemical and general merchandise products. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. The SC is well backed by a listed company shareholders which would stimulate further growth for the SC. Hence, the potential growth of the SC is positive. 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. 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.


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. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 115,717,000, 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.


Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


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)

PETRONAS CHEMICALS MARKETING 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

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

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

8,388,906,000

9,452,210,000

7,546,310,000

8,153,583,000

7,952,958,000

Other Income

-

27,842,000

17,339,000

-

-

 

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

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

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

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

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

Total Turnover

8,388,906,000

9,480,052,000

7,563,649,000

8,153,583,000

7,952,958,000

Costs of Goods Sold

-

<9,307,498,000>

<7,439,459,000>

<8,040,850,000>

<7,850,502,000>

 

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

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

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

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

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

Gross Profit

-

172,554,000

124,190,000

112,733,000

102,456,000

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

106,658,000

90,174,000

52,179,000

90,623,000

52,578,000

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

106,658,000

90,174,000

52,179,000

90,623,000

52,578,000

Taxation

<25,650,000>

<23,649,000>

10,235,000

<16,478,000>

<11,562,000>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

81,008,000

66,525,000

62,414,000

74,145,000

41,016,000

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

17,679,000

254,154,000

192,980,000

120,268,000

79,252,000

Prior year adjustment

-

-

<600,000>

<1,433,000>

-

 

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

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

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

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

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

As restated

17,679,000

254,154,000

192,380,000

118,835,000

79,252,000

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

98,687,000

320,679,000

254,794,000

192,980,000

120,268,000

- General

-

<3,000,000>

<640,000>

-

-

DIVIDENDS - Ordinary (paid & proposed)

-

<300,000,000>

-

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

98,687,000

17,679,000

254,154,000

192,980,000

120,268,000

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

-

-

-

508,000

1,349,000

 

 

 

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

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

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

 

 

 

-

508,000

1,349,000

 

 

 

BALANCE SHEET

 

 

PETRONAS CHEMICALS MARKETING SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

14,911,000

237,000

386,000

490,000

734,000

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Subsidiary companies

-

-

210,000,000

210,000,000

210,000,000

Deferred assets

-

77,000

1,758,000

-

-

Others

-

-

-

20,000,000

50,000,000

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

77,000

211,758,000

230,000,000

260,000,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

14,911,000

314,000

212,144,000

230,490,000

260,734,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

-

20,239,000

7,655,000

-

30,881,000

Trade debtors

-

1,299,044,000

662,714,000

474,715,000

591,354,000

Other debtors, deposits & prepayments

-

3,726,000

13,477,000

1,240,000

5,178,000

Deposits with financial institutions

-

344,496,000

256,208,000

211,115,000

283,769,000

Amount due from subsidiary companies

-

-

252,000

144,000

-

Amount due from related companies

-

-

342,288,000

177,407,000

336,117,000

Cash & bank balances

-

2,390,000

3,336,000

1,972,000

5,503,000

Others

-

-

15,586,000

2,733,000

2,575,000

 

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

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

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

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

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

TOTAL CURRENT ASSETS

1,454,412,000

1,669,895,000

1,301,516,000

869,326,000

1,255,377,000

 

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

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

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

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

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

TOTAL ASSET

1,469,323,000

1,670,209,000

1,513,660,000

1,099,816,000

1,516,111,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

187,210,000

427,726,000

222,736,000

358,053,000

Other creditors & accruals

-

1,516,000

3,170,000

3,233,000

3,539,000

Amounts owing to holding company

-

94,496,000

3,726,000

4,217,000

4,560,000

Amounts owing to related companies

-

1,343,502,000

660,854,000

474,506,000

804,847,000

Provision for taxation

-

8,280,000

-

5,914,000

-

Other liabilities

-

496,000

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

1,353,606,000

1,635,500,000

1,095,476,000

710,606,000

1,170,999,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

100,806,000

34,395,000

206,040,000

158,720,000

84,378,000

 

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

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

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

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

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

TOTAL NET ASSETS

115,717,000

34,709,000

418,184,000

389,210,000

345,112,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

12,500,000

12,500,000

12,500,000

12,500,000

12,500,000

Preference share capital

-

-

3,000,000

3,640,000

4,240,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

12,500,000

12,500,000

15,500,000

16,140,000

16,740,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

290,000

290,000

147,290,000

178,650,000

208,050,000

Capital reserve

4,240,000

4,240,000

1,240,000

-

-

Retained profit/(loss) carried forward

98,687,000

17,679,000

254,154,000

192,980,000

120,268,000

 

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

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

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

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

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

TOTAL RESERVES

103,217,000

22,209,000

402,684,000

371,630,000

328,318,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

115,717,000

34,709,000

418,184,000

387,770,000

345,058,000

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

-

-

-

1,440,000

54,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

-

-

1,440,000

54,000

 

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

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

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

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

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

 

115,717,000

34,709,000

418,184,000

389,210,000

345,112,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

PETRONAS CHEMICALS MARKETING SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

-

2,390,000

3,336,000

1,972,000

5,503,000

Net Liquid Funds

-

2,390,000

3,336,000

1,972,000

5,503,000

Net Liquid Assets

100,806,000

14,156,000

198,385,000

158,720,000

53,497,000

Net Current Assets/(Liabilities)

100,806,000

34,395,000

206,040,000

158,720,000

84,378,000

Net Tangible Assets

115,717,000

34,709,000

418,184,000

389,210,000

345,112,000

Net Monetary Assets

100,806,000

14,156,000

198,385,000

157,280,000

53,443,000

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

-

0

0

0

0

Total Liabilities

1,353,606,000

1,635,500,000

1,095,476,000

712,046,000

1,171,053,000

Total Assets

1,469,323,000

1,670,209,000

1,513,660,000

1,099,816,000

1,516,111,000

Net Assets

115,717,000

34,709,000

418,184,000

389,210,000

345,112,000

Net Assets Backing

115,717,000

34,709,000

418,184,000

387,770,000

345,058,000

Shareholders' Funds

115,717,000

34,709,000

418,184,000

387,770,000

345,058,000

Total Share Capital

12,500,000

12,500,000

15,500,000

16,140,000

16,740,000

Total Reserves

103,217,000

22,209,000

402,684,000

371,630,000

328,318,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

-

0.00

0.00

0.00

0.00

Liquid Ratio

-

1.01

1.18

1.22

1.05

Current Ratio

1.07

1.02

1.19

1.22

1.07

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

-

1

0

0

1

Debtors Ratio

-

50

32

21

27

Creditors Ratio

-

7

21

10

17

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

-

0.00

0.00

0.00

0.00

Liabilities Ratio

11.70

47.12

2.62

1.84

3.39

Times Interest Earned Ratio

-

0.00

0.00

179.39

39.98

Assets Backing Ratio

9.26

2.78

33.45

31.14

27.61

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.27

0.95

0.69

1.11

0.66

Net Profit Margin

0.97

0.70

0.83

0.91

0.52

Return On Net Assets

92.17

259.80

12.48

23.41

15.63

Return On Capital Employed

92.17

259.80

12.48

23.41

15.63

Return On Shareholders' Funds/Equity

70.01

191.66

14.93

19.12

11.89

Dividend Pay Out Ratio (Times)

-

4.51

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.53.99

UK Pound

1

Rs.83.72

Euro

1

Rs.72.08

 

 

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.