|
* Adopted abbreviations :
|
SC - Subject Company (the company
enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
268823-M
|
|
COMPANY NAME
|
:
|
IOI EDIBLE OILS SDN BHD
|
|
FORMER NAME
|
:
|
SPECTRUM DEVELOPMENT SDN BHD (12/05/1994)
|
|
INCORPORATION DATE
|
:
|
02/07/1993
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
TWO IOI SQUARE, LEVEL 8, IOI RESORT,
62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
TWO IOI SQUARE, LEVEL 8, IOI RESORT,
62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-89478888
|
|
FAX.NO.
|
:
|
03-89478686
|
|
EMAIL
|
:
|
ioieo@tm.net.my
|
|
WEB SITE
|
:
|
www.ioigroup.com
|
|
CONTACT PERSON
|
:
|
LAI MING CHUN ( DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
10402
|
|
PRINCIPAL ACTIVITY
|
:
|
INVESTMENT HOLDING & PALM OIL
REFINERY
|
|
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 5,000,000.00 DIVIDED INTO
ORDINARY SHARES 5,000,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 6,488,974,889 [2011]
|
|
NET WORTH
|
:
|
MYR 254,215,260 [2011]
|
|
M1000 OVERALL RANKING
|
:
|
63[2011]
|
|
M1000 INDUSTRY RANKING
|
:
|
2[2011]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
300 [2012]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
GOOD
|
|
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) investment holding & palm oil refinery.
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
|
2004
|
|
|
OVERALL RANKING
|
63
|
81
|
104
|
97
|
322
|
|
|
INDUSTRY RANKING
|
2
|
4
|
8
|
8
|
21
|
|
The immediate and ultimate holding company
of the SC is IOI CORPORATION BERHAD, a company incorporated in MALAYSIA.
The major shareholder(s)
of the SC are shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
IOI CORPORATION BERHAD
|
TWO IOI SQUARE, IOI RESORT, LEVEL 12,
62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.
|
9027
|
5,000,000.00
|
100.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
5,000,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. LEE YOKE HUI
|
|
Address
|
:
|
G-12A-06,PUTERI PALMA CONDOMINIUM, 101 RESORT,
62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
761029-14-5788
|
|
Date of Birth
|
:
|
29/10/1976
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
21/02/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. LEE YEOW SENG
|
|
Address
|
:
|
NO. 8, LINGKUNGAN 3, DIAMOND HILL, 62502
PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
781223-14-5501
|
|
Date of Birth
|
:
|
23/12/1978
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
25/06/2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. LEE YEOW CHOR
|
|
Address
|
:
|
NO.6,JALAN BEVERLY UTAMA, 101 RESORT, 62502
PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
661129-10-5543
|
|
Date of Birth
|
:
|
29/11/1966
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
26/06/1995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. KOH KIN CHEE.
|
|
Address
|
:
|
LOT 13,TMN.FULLIWA, ML.3 1/2,NORTH RD, P
O BOX 1374;90715 SKN., MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
380613-12-5189
|
|
Date of Birth
|
:
|
13/06/1938
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
26/06/1995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 5
|
Name Of Subject
|
:
|
MS. LAI MING CHUN @ LAI POH LIN
|
|
Address
|
:
|
23-1, 3 KIA PENG APT, 3 JALAN KIA PENG, 50450
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
400608-14-5084
|
|
Date of Birth
|
:
|
08/06/1940
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
26/06/1995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
LAI MING CHUN
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
CHAM SIN JAN
|
|
|
Position
|
:
|
FINANCE MANAGER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
CARREN
|
|
|
Position
|
:
|
CORPORATE COMMUNICATIONS MANAGER
|
|
|
|
|
|
|
4)
|
Name of Subject
|
:
|
JENNY GOH
|
|
|
Position
|
:
|
ASSISTANT MANAGER
|
|
|
|
|
|
|
5)
|
Name of Subject
|
:
|
FOONG LAI CHOONG
|
|
|
Position
|
:
|
PLANTATION DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
BDO BINDER
|
|
Auditor' Address
|
:
|
MENARA UNI ASIA, 1008 JALAN SULTAN
ISMAIL, 12TH FLOOR, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. LEE AI LENG
|
|
|
|
|
|
|
|
New IC No
|
:
|
651116-05-5038
|
|
|
Address
|
:
|
NO.3,JALAN BK 6B/13, BANDAR KINRARA,
47180 PUCHONG, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MR. TAN CHOONG KHIANG
|
|
|
|
|
|
|
|
New IC No
|
:
|
701016-07-5317
|
|
|
Address
|
:
|
7, JALAN PUJ 2/28, TAMAN PUNCAK JALIL,
BANDAR PUTRA PERMAI, 43300 BALAKONG, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
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
|
|
Overseas
|
:
|
YES
|
|
|
|
|
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
|
:
|
EUROPE,
UNITED STATES, ASIA
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT), LETTER
OF CREDIT (LC)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
PALM FATTY ACID DISTILLATE, PALM KERNEL
EXPELLER, REFINED BLEACHED DEODORISED PALM OIL
|
|
|
|
|
|
|
Award
|
:
|
1 ) HACCP Year :2004
2 ) MS ISO 9001 : 2000 Year :2000
|
|
|
|
|
|
Competitor(s)
|
:
|
ALAMI VEGETABLE OIL PRODUCTS SDN BHD
FELDA IFFCO SDN BHD
GREEN OCEAN CORPORATION BHD
IOI LIPID ENZYMTEC SDN BHD
LAM SOON EDIBLE OILS SDN BHD
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION
(MATRADE)
|
|
|
|
|
|
Ownership of premises
|
:
|
OWNED
|
|
Factory / Premises
|
:
|
12 KILOMETRE, SUNGAI MOWTAS, JALAN JAYA CHIP, P O BOX 3423, 90738
SANDAKAN, SABAH, MALAYSIA.
Tel No: 089-616733
Fax No: 089-616734
|
|
Factory Size
|
:
|
LAND SIZE : 53 ACRES
|
|
Production Capacity
|
:
|
APPROXIMATELY 1,500 METRIC TONNES PER
MONTH
|
|
Shifts
|
:
|
2
|
|
|
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2012
|
2011
|
2010
|
2009
|
2008
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
COMPANY
|
300
|
300
|
300
|
300
|
250
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) investment holding &
palm oil refinery.
IOI Group is internationally known as a leading global integrated palm oil
player with operations stretching the entire palm value chain from seedlings
to plantations to crop oil extraction to diverse value-added manufacturing
across major continents - serving global markets in more than 65 countries.
The Group is also prominently known as one of the leading property developer
with significant investment holdings of prime real-estates.
The SC is under the IOI Group of Companies and the Group has its own oil palm
plantations.
We were informed that the SC is operating a palm oil refinery in Sandakan,
Sabah.
The SC undertakes palm oil refining and palm kernel crushing
Besides that, the SC utilizes advaced automated and semi automated machineries
to ensure production of high quality products.
PROJECTS
No projects found in our databank
CURRENT
INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
60 89 616 733
|
|
Current Telephone Number
|
:
|
03-89478888
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Address Provided by Client
|
:
|
12 KM, SUNGAI MOWTAS JALAN JAYA CHIP, OFF
JALAN BATU SAPI 90000 SANDAKAN SABAH
|
|
Current Address
|
:
|
TWO IOI SQUARE, LEVEL 8, IOI RESORT, 62502
PUTRAJAYA, 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 address provided belongs to the SC's factory.
FINANCIAL
ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Erratic
|
[
|
2007 - 2011
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2007 - 2011
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
18.22%
|
]
|
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
23.44%
|
]
|
|
|
|
|
|
|
|
|
|
|
The fluctuating turnover reflects the fierce
competition among the existing and new market players.The higher profit
could be attributed to the increase in turnover. The SC's management had
generated acceptable return for its shareholders using its assets.
|
|
|
|
|
|
|
|
|
|
Liquidity
|
|
|
|
|
|
|
|
Current Ratio
|
:
|
Acceptable
|
[
|
1.23 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
|
[
|
3.55 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
|
|
10402 : Manufacture of refined 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 inthe 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.
|
|
According to MPOB ( Malaysian Palm Oil Board ) statistics in May/June
2012,imports of processed palm oil continue to rise from 88,000 tonnes (May
2012) and 112,000 tonnes (June 2012).Due to the biological stress on oil
palm trees and following by the bumper harvest in 2011, Oil production is
expected to decline at the end of 2012. The number of palm oil mills in
operation in the malaysia has increased from 53 (Dec 31, 2011) to 55 (second
quarter 2012), with another 14 new mills at various stages of construction.
|
|
The outlook for the palm oil industry is bright, with its price range
between RM3,100 and RM3,840 per tonne in first quarter 2012.This is
equivalent to about 26.6 % of the global oils and fats trade. Furthemore,
at the end of 2012, the demand and the price of palm oil are expected to be
increased due to the adverse weather conditions of the production soy bean
in South America is expected to be declined by 3 to 5% at the end of 2012.
|
|
The unfreezing of India's base import price of refined palm olein is
expected to cause insignificant impact to Malaysian refiners as they have
already established other downstream markets for their refined crude palm oil
(CPO) exports. Furthermore, Malaysia has produced 18.91 million tonnes or
37.65% of the total palm oil production on 2011 and it has accounted for
17.99 million tonnes or 46.27% of the world exports.
|
|
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 : Average Growth
|
CREDIT
RISK EVALUATION & RECOMMENDATION
|
Incorporated in 1993, the SC is a Private Limited company, focusing on investment
holding & palm oil refinery. 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. 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 capital standing of the SC is
fair. With an adequate share capital, the SC has the potential of expanding
its business in future.
|
|
Over the years, the SC has 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. To improve its quality products and services, we noted that the SC has
received a number of certifications & awards. This will improve the
customer's confidence level to the SC.
|
|
We noted that both the turnover and profits have increased compared to the
previous year. The higher profit could be due to increase in turnover and
better control over its operating costs. Return on shareholders' funds of
the SC was at an acceptable range which indicated that the management was
efficient in utilising its funds to generate income. The SC 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 254,215,260, 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)
|
|
IOI EDIBLE OILS SDN BHD
|
|
Financial Year End
|
30/06/2011
|
30/06/2010
|
30/06/2009
|
30/06/2008
|
30/06/2007
|
|
Months
|
12
|
12
|
12
|
12
|
12
|
|
Consolidated Account
|
Company
|
Company
|
Company
|
Company
|
Company
|
|
Audited Account
|
YES
|
YES
|
YES
|
YES
|
YES
|
|
Unqualified Auditor's Report (Clean
Opinion)
|
YES
|
YES
|
YES
|
YES
|
YES
|
|
Financial Type
|
SUMMARY
|
FULL
|
FULL
|
FULL
|
FULL
|
|
Currency
|
MYR
|
MYR
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
TURNOVER
|
6,488,974,889
|
4,699,513,980
|
5,392,214,580
|
6,635,521,847
|
4,079,117,955
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
6,488,974,889
|
4,699,513,980
|
5,392,214,580
|
6,635,521,847
|
4,079,117,955
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
62,725,599
|
34,430,432
|
32,451,596
|
69,046,869
|
40,281,223
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
62,725,599
|
34,430,432
|
32,451,596
|
69,046,869
|
40,281,223
|
|
Taxation
|
<16,410,846>
|
<10,287,564>
|
<3,734,220>
|
<16,829,362>
|
<7,571,031>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
46,314,753
|
24,142,868
|
28,717,376
|
52,217,507
|
32,710,192
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As previously reported
|
191,602,010
|
188,459,142
|
159,741,766
|
119,024,259
|
96,496,567
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
191,602,010
|
188,459,142
|
159,741,766
|
119,024,259
|
96,496,567
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
237,916,763
|
212,602,010
|
188,459,142
|
171,241,766
|
129,206,759
|
|
DIVIDENDS - Ordinary (paid &
proposed)
|
-
|
<21,000,000>
|
-
|
<11,500,000>
|
<10,182,500>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
237,916,763
|
191,602,010
|
188,459,142
|
159,741,766
|
119,024,259
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to
P&L)
|
|
|
|
|
|
|
Bank overdraft
|
-
|
-
|
-
|
-
|
207
|
|
Others
|
-
|
6,157,722
|
4,226,793
|
9,464,909
|
8,155,130
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
-
|
6,157,722
|
4,226,793
|
9,464,909
|
8,155,337
|
BALANCE
SHEET
|
ASSETS EMPLOYED:
|
|
|
|
|
|
|
FIXED ASSETS
|
61,203,313
|
63,683,871
|
65,440,205
|
66,506,334
|
69,136,505
|
|
|
|
|
|
|
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
Subsidiary companies
|
-
|
2
|
2
|
2
|
2
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
2
|
2
|
2
|
2
|
2
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
61,203,315
|
63,683,873
|
65,440,207
|
66,506,336
|
69,136,507
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
Stocks
|
-
|
161,724,848
|
117,417,764
|
241,282,550
|
203,697,945
|
|
Trade debtors
|
-
|
50,246,365
|
79,683,783
|
210,509,588
|
60,626,652
|
|
Other debtors, deposits & prepayments
|
-
|
1,080,318
|
1,187,449
|
5,348,153
|
1,300,607
|
|
Short term deposits
|
-
|
24,680,864
|
6,553,890
|
-
|
-
|
|
Amount due from related companies
|
-
|
286,030,349
|
249,425,541
|
425,321,537
|
298,526,476
|
|
Cash & bank balances
|
-
|
7,208,913
|
34,147,147
|
51,219,359
|
32,242,162
|
|
Others
|
-
|
4,724,755
|
4,381,436
|
-
|
728,237
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
1,095,628,977
|
535,696,412
|
492,797,010
|
933,681,187
|
597,122,079
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
1,156,832,292
|
599,380,285
|
558,237,217
|
1,000,187,523
|
666,258,586
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Trade creditors
|
-
|
60,197,638
|
64,180,595
|
153,098,571
|
69,366,647
|
|
Other creditors & accruals
|
-
|
9,596,779
|
7,533,153
|
9,152,793
|
12,838,660
|
|
Amounts owing to holding company
|
-
|
-
|
-
|
298,114,026
|
257,033,557
|
|
Amounts owing to subsidiary companies
|
-
|
738,902
|
4,992,728
|
4,999,857
|
5,000,023
|
|
Amounts owing to related companies
|
-
|
246,868,877
|
215,478,890
|
360,960,071
|
193,786,440
|
|
Provision for taxation
|
-
|
-
|
-
|
5,630,439
|
-
|
|
Other liabilities
|
-
|
82,706,211
|
69,375,173
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
889,274,274
|
400,108,407
|
361,560,539
|
831,955,757
|
538,025,327
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
206,354,703
|
135,588,005
|
131,236,471
|
101,725,430
|
59,096,752
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
267,558,018
|
199,271,878
|
196,676,678
|
168,231,766
|
128,233,259
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
|
Ordinary share capital
|
5,000,000
|
5,000,000
|
5,000,000
|
5,000,000
|
5,000,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
5,000,000
|
5,000,000
|
5,000,000
|
5,000,000
|
5,000,000
|
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
Retained profit/(loss) carried forward
|
237,916,763
|
191,602,010
|
188,459,142
|
159,741,766
|
119,024,259
|
|
Others
|
11,298,497
|
-
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
249,215,260
|
191,602,010
|
188,459,142
|
159,741,766
|
119,024,259
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
254,215,260
|
196,602,010
|
193,459,142
|
164,741,766
|
124,024,259
|
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES
|
|
|
|
|
|
|
Deferred taxation
|
-
|
2,669,868
|
3,217,536
|
3,490,000
|
4,209,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
13,342,758
|
2,669,868
|
3,217,536
|
3,490,000
|
4,209,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
267,558,018
|
199,271,878
|
196,676,678
|
168,231,766
|
128,233,259
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
FINANCIAL
RATIO
|
TYPES OF FUNDS
|
|
|
|
|
|
|
Cash
|
-
|
31,889,777
|
40,701,037
|
51,219,359
|
32,242,162
|
|
Net Liquid Funds
|
-
|
31,889,777
|
40,701,037
|
51,219,359
|
32,242,162
|
|
Net Liquid Assets
|
206,354,703
|
<26,136,843>
|
13,818,707
|
<139,557,120>
|
<144,601,193>
|
|
Net Current Assets/(Liabilities)
|
206,354,703
|
135,588,005
|
131,236,471
|
101,725,430
|
59,096,752
|
|
Net Tangible Assets
|
267,558,018
|
199,271,878
|
196,676,678
|
168,231,766
|
128,233,259
|
|
Net Monetary Assets
|
193,011,945
|
<28,806,711>
|
10,601,171
|
<143,047,120>
|
<148,810,193>
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
|
Total Borrowings
|
-
|
0
|
0
|
0
|
0
|
|
Total Liabilities
|
902,617,032
|
402,778,275
|
364,778,075
|
835,445,757
|
542,234,327
|
|
Total Assets
|
1,156,832,292
|
599,380,285
|
558,237,217
|
1,000,187,523
|
666,258,586
|
|
Net Assets
|
267,558,018
|
199,271,878
|
196,676,678
|
168,231,766
|
128,233,259
|
|
Net Assets Backing
|
254,215,260
|
196,602,010
|
193,459,142
|
164,741,766
|
124,024,259
|
|
Shareholders' Funds
|
254,215,260
|
196,602,010
|
193,459,142
|
164,741,766
|
124,024,259
|
|
Total Share Capital
|
5,000,000
|
5,000,000
|
5,000,000
|
5,000,000
|
5,000,000
|
|
Total Reserves
|
249,215,260
|
191,602,010
|
188,459,142
|
159,741,766
|
119,024,259
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
|
Cash Ratio
|
-
|
0.08
|
0.11
|
0.06
|
0.06
|
|
Liquid Ratio
|
-
|
0.93
|
1.04
|
0.83
|
0.73
|
|
Current Ratio
|
1.23
|
1.34
|
1.36
|
1.12
|
1.11
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Stock Ratio
|
-
|
13
|
8
|
13
|
18
|
|
Debtors Ratio
|
-
|
4
|
5
|
12
|
5
|
|
Creditors Ratio
|
-
|
5
|
4
|
8
|
6
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
|
Gearing Ratio
|
-
|
0.00
|
0.00
|
0.00
|
0.00
|
|
Liabilities Ratio
|
3.55
|
2.05
|
1.89
|
5.07
|
4.37
|
|
Times Interest Earned Ratio
|
-
|
6.59
|
8.68
|
8.30
|
5.94
|
|
Assets Backing Ratio
|
53.51
|
39.85
|
39.34
|
33.65
|
25.65
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
|
Operating Profit Margin
|
0.97
|
0.73
|
0.60
|
1.04
|
0.99
|
|
Net Profit Margin
|
0.71
|
0.51
|
0.53
|
0.79
|
0.80
|
|
Return On Net Assets
|
23.44
|
20.37
|
18.65
|
46.67
|
37.77
|
|
Return On Capital Employed
|
23.44
|
20.37
|
18.65
|
46.67
|
37.77
|
|
Return On Shareholders' Funds/Equity
|
18.22
|
12.28
|
14.84
|
31.70
|
26.37
|
|
Dividend Pay Out Ratio (Times)
|
-
|
0.87
|
0.00
|
0.22
|
0.31
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
|
Contingent Liabilities
|
-
|
0
|
0
|
0
|
0
|
|