|
|
* Adopted abbreviations :
|
SC - Subject Company (the company
enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
583315-M
|
|
COMPANY NAME
|
:
|
NORTH EMERALD (M) SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
19/06/2002
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
35-A, PERSIARAN SULTAN IBRAHIM, 41300
KLANG, SELANGOR, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
NO 10-03-2, LORONG BATU NILAM 4A, BANDAR
BARU BUKIT TINGGI, 41200 KLANG, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-33233595
|
|
FAX.NO.
|
:
|
03-33236595
|
|
CONTACT PERSON
|
:
|
KULARAJAH S. KANDIAH ( MANAGING DIRECTOR
)
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
46202
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF PALM OIL BASED COMMODITY
|
|
AUTHORISED CAPITAL
|
:
|
MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 500,000.00 DIVIDED INTO
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 72,226,463 [2010]
|
|
NET WORTH
|
:
|
MYR 3,353,846 [2010]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
10 [2012]
|
|
BANKER (S)
|
:
|
|
CIMB BANK BHD
HSBC BANK MALAYSIA BHD
PUBLIC BANK BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STABLE
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
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) trading of palm oil based commodity.
The SC is not listed on Bursa Malaysia
(Malaysia Stock Exchange).
The major
shareholder(s) of the SC are shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
MR. KULARAJAH A/L S.KANDIAH +
|
11 LINTANG SELAR, TAMAN BERTEK, 41100
KLANG, SELANGOR, MALAYSIA.
|
750114-10-5031 A3021809
|
312,500.00
|
62.50
|
|
MS. KOELAMBAL A/P S KANDIAH +
|
16, JALAN DATO YUSUF SHAH BUDIN, TAMAN
SENTOSA, 41200 KLANG, SELANGOR, MALAYSIA.
|
600501-10-5724 5939312
|
62,500.00
|
12.50
|
|
MR. RAJAN A/L PERUMAL +
|
63,LENGKONG GAMBUS 4, TAMAN DESAWAN,
41200 KLANG, SELANGOR, MALAYSIA.
|
511008-10-5187 7537530
|
62,500.00
|
12.50
|
|
MR. MURUGESU A/L M.NARASIMHA +
|
16 JALAN DATO YUSUF SHAH BUDIN 4, TAMAN SENTOSA,
41200 KLANG, SELANGOR, MALAYSIA.
|
690219-10-6397 A1222778
|
62,500.00
|
12.50
|
|
|
|
|
---------------
|
------
|
|
|
|
|
500,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. RAJAN A/L PERUMAL
|
|
Address
|
:
|
63,LENGKONG GAMBUS 4, TAMAN DESAWAN,
41200 KLANG, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
7537530
|
|
New IC No
|
:
|
511008-10-5187
|
|
Date of Birth
|
:
|
08/10/1951
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
25/11/2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MS. KOELAMBAL A/P S KANDIAH
|
|
Address
|
:
|
16, JALAN DATO YUSUF SHAH BUDIN, TAMAN SENTOSA,
41200 KLANG, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
5939312
|
|
New IC No
|
:
|
600501-10-5724
|
|
Date of Birth
|
:
|
01/05/1960
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN INDIAN
|
|
Date of Appointment
|
:
|
19/06/2002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. MURUGESU A/L M.NARASIMHA
|
|
Address
|
:
|
16 JALAN DATO YUSUF SHAH BUDIN 4, TAMAN
SENTOSA, 41200 KLANG, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
A1222778
|
|
New IC No
|
:
|
690219-10-6397
|
|
Date of Birth
|
:
|
19/02/1969
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
19/06/2002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. KULARAJAH A/L S.KANDIAH
|
|
Address
|
:
|
11 LINTANG SELAR, TAMAN BERTEK, 41100
KLANG, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
A3021809
|
|
New IC No
|
:
|
750114-10-5031
|
|
Date of Birth
|
:
|
14/01/1975
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
19/06/2002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
KULARAJAH S. KANDIAH
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
WONG YIN CHUNG & CO
|
|
Auditor' Address
|
:
|
29--3AB, BLOCK C, SUNWAYMAS COMMERCIAL
CENTRE, JALAN PJU 1/3B, 47301 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. LIM CHEE HUAT
|
|
|
IC / PP No
|
:
|
5445293
|
|
|
New IC No
|
:
|
580328-10-5871
|
|
|
Address
|
:
|
38,LEBOH SEMBILANG 2, KAWASAN 7, TAMAN
TELUK PULAI, 41100 KLANG, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
2)
|
Name
|
:
|
HSBC BANK MALAYSIA BHD
|
|
|
|
|
|
|
3)
|
Name
|
:
|
PUBLIC BANK BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with
above mentioned banker(s). The SC has bank charges with above mentioned
banker(s).
|
ENCUMBRANCE
(S)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
14/07/2008
|
|
Description Of Charge
|
:
|
FIXED DEPOSIT
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
FIXED DEPOSIT AMOUNT OF RM700,000 IN THE
NAME OF COMPANY
|
|
Name & Address Of Chargee
|
:
|
CIMB BANK BHD
MENARA A & M, GARDEN BUSINESS CENTRE, JALAN ISTANA, 5TH FLOOR, 41000
KLANG, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 25/07/2008
|
|
Registered and Numbered 2 In The Register
of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
13/02/2009
|
|
Description Of Charge
|
:
|
FACILITY AGREEMENT
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
AN AGRICULTURAL LAND HELD UNDER GM 18,
LOT 369, MUKIM API- API, KUALA SELANGOR, SELANGOR
|
|
Name & Address Of Chargee
|
:
|
PUBLIC BANK BHD
2, JALAN DATO YUSOF SHAHBUDDIN 30, TAMAN SENTOSA, 41200 KLANG, SELANGOR,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 10/03/2009
|
|
Registered and Numbered 3 In The Register
of Charges
|
ENCUMBRANCE 3
|
Date of Creation
|
:
|
09/09/2009
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM500,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
HSBC BANK MALAYSIA BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 4 In The Register
of Charges
|
ENCUMBRANCE 4
|
Date of Creation
|
:
|
10/02/2010
|
|
Description Of Charge
|
:
|
OPEN CHARGE
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
PUBLIC BANK BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 5 In The Register
of Charges
|
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.
|
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
|
:
|
INDIA,
PAKISTAN, NEPAL
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
PALM OIL BASED COMMODITY
|
|
|
|
|
|
Competitor(s)
|
:
|
AMBROSIA SDN BHD
FELDA IFFCO TRADING SDN BHD
FELDA MARKETING SERVICES SDN BHD
PALMBASE (M) SDN BHD
SIME DARBY FUTURES TRADING SDN BHD
|
|
|
|
|
|
Ownership of premises
|
:
|
OWNED
|
|
Total Number of Employees:
|
|
|
YEAR
|
2012
|
2011
|
2010
|
2009
|
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
COMPANY
|
10
|
8
|
8
|
5
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of palm oil based
commodity.
The SC offers a wide range of products includes Palm Acid Oil, Palm Residue, Palm
Bottom Cut, PFAD, Used Vegetable Oil, etc and Oleo Chemicals (Glycerine,
Strearic Acid, Soap Noodles, etc).
Besides that the SC also provides products based on the customers'
requirements.
We were informed that the SC has a warehouse located at Teluk Gong to keep
stocks and materials.
PROJECTS
No projects found in our databank
CURRENT
INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
0333233595
|
|
Current Telephone Number
|
:
|
03-33233595
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
NO 10-03-2, LORONG BATU NILAM 4A, BANDAR
BARU BUKIT TINGGI,41200,KLANG,SELANGOR.
|
|
Current Address
|
:
|
NO 10-03-2, LORONG BATU NILAM 4A, BANDAR BARU
BUKIT TINGGI, 41200 KLANG, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
NO
|
|
We have contacted the SC's Accountant and its Company Secretary for the latest
financial accounts. However they have rejected our request in view of the
confidentiality of the documents.
|
|
|
Other Investigations
we contacted one of the staff from the SC and she provided some information
on the SC.
FINANCIAL
ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Increased
|
[
|
2007 - 2010
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2007 - 2010
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Favourable
|
[
|
41.85%
|
]
|
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
47.28%
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's turnover increased steadily as
the demand for its products / services increased due to the goodwill built up
over the years.The higher profit could be attributed to the increase in
turnover. 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.
|
|
|
|
|
|
|
|
|
|
Working Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Favourable
|
[
|
2 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Favourable
|
[
|
20 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
20 Days
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's stocks were moving fast thus
reducing its holding cost. This had reduced funds being tied up in stocks.
The favourable debtors' days could be due to the good credit control
measures implemented by the SC. 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
|
:
|
Favourable
|
[
|
1.27 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.33 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
A minimum liquid ratio of 1 should be maintained
by the SC in order to assure its creditors of its ability to meet short
term obligations and the SC was in a good liquidity position. Thus, we
believe the SC is able to meet all its short term obligations as and when
they fall due.
|
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Favourable
|
[
|
33.67 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.26 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The interest cover showed that the SC was
able to service the interest. The favourable interest cover could indicate
that the SC was making enough profit to pay for the interest accrued. The
SC was lowly geared thus it had a low financial risk. The SC was mainly
financed by its shareholders' funds and internally generated funds. In
times of economic slowdown / downturn, the SC being a lowly geared company,
will be able to compete better than those companies which are highly geared
in the same industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
Generally, the SC's performance has
improved with higher turnover and profit. 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. With the favourable interest cover, the SC could be
able to service all the accrued interest without facing any difficulties.
The SC as a lowly geared company, will be more secured compared to those
highly geared companies. It has the ability to meet all its long term
obligations.
|
|
|
|
|
|
|
|
|
|
Overall financial condition of the SC :
STABLE
|
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
|
|
46202 : Wholesale of palm oil
|
|
|
|
|
INDUSTRY :
|
PALM OIL
|
|
|
|
|
|
|
Oil palm is one of the main drivers of Malaysia's agriculture sector where it
has accounting for 71% of its agricultural land bank. Malaysia is the one
of the biggest producers and exporters of palm oil prodcuts 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 2002, the SC is a Private Limited company, focusing on
trading of palm oil based commodity. 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 considered as a small size company
with issued and paid up capital standing at RM500,000. We considered that
the SC's business position in the market is much dependent on the efforts
of its directors.
|
|
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.
|
|
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. 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. Being a lowly geared company, the
SC is exposed to low financial risk as it is mainly dependent on its
internal funds to finance its business needs. The SC is in good liquidity
position with its current liabilities well covered by it current assets.
Hence, it has sufficient working capital to meet its short term financial
obligations. Given a positive net worth standing at MYR 3,353,846, 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.
|
|
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)
|
|
NORTH EMERALD (M) SDN BHD
|
|
Financial Year End
|
31/12/2010
|
31/12/2009
|
31/12/2008
|
31/12/2007
|
30/06/2007
|
|
Months
|
12
|
12
|
12
|
6
|
12
|
|
Consolidated Account
|
Company
|
Company
|
Company
|
Company
|
Company
|
|
Audited Account
|
YES
|
YES
|
YES
|
YES
|
YES
|
|
Unqualified Auditor's Report (Clean
Opinion)
|
YES
|
YES
|
YES
|
YES
|
YES
|
|
Financial Type
|
FULL
|
FULL
|
FULL
|
FULL
|
FULL
|
|
Currency
|
MYR
|
MYR
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
TURNOVER
|
72,226,463
|
36,426,200
|
20,974,271
|
6,868,897
|
8,248,556
|
|
Other Income
|
65,071
|
-
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
72,291,534
|
36,426,200
|
20,974,271
|
6,868,897
|
6,868,897
|
|
Costs of Goods Sold
|
<67,745,433>
|
-
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
4,546,101
|
-
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
1,890,679
|
871,609
|
495,040
|
122,508
|
302,466
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
1,890,679
|
871,609
|
495,040
|
122,508
|
302,466
|
|
Taxation
|
<487,128>
|
<206,034>
|
<115,269>
|
<31,275>
|
<66,716>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
1,403,551
|
665,575
|
379,771
|
91,233
|
235,750
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As previously reported
|
1,450,295
|
784,720
|
404,949
|
313,716
|
77,966
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
1,450,295
|
784,720
|
404,949
|
313,716
|
77,966
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
2,853,846
|
1,450,295
|
784,720
|
404,949
|
313,716
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
2,853,846
|
1,450,295
|
784,720
|
404,949
|
313,716
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to
P&L)
|
|
|
|
|
|
|
Hire purchase
|
7,598
|
9,368
|
4,427
|
1,368
|
3,188
|
|
Term loan / Borrowing
|
50,269
|
16,985
|
349
|
1,301
|
2,504
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
57,867
|
26,353
|
4,776
|
2,669
|
5,692
|
BALANCE
SHEET
|
NORTH EMERALD (M) SDN BHD
|
|
ASSETS EMPLOYED:
|
|
|
|
|
|
|
FIXED ASSETS
|
2,111,870
|
1,829,825
|
946,434
|
140,778
|
144,610
|
|
|
|
|
|
|
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
Investments
|
213,000
|
201,000
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
213,000
|
201,000
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
2,324,870
|
2,030,825
|
946,434
|
140,778
|
144,610
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
Stocks
|
347,005
|
311,964
|
215,099
|
185,208
|
159,932
|
|
Trade debtors
|
3,944,388
|
1,415,925
|
806,632
|
605,651
|
483,800
|
|
Other debtors, deposits & prepayments
|
582,117
|
898,029
|
348,273
|
53,508
|
111,693
|
|
Short term deposits
|
508,322
|
504,144
|
1,127,243
|
175,411
|
142,540
|
|
Amount due from director
|
166,163
|
-
|
-
|
-
|
-
|
|
Cash & bank balances
|
1,702,211
|
1,427,194
|
1,020,949
|
814,206
|
617,427
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
7,250,206
|
4,557,256
|
3,518,196
|
1,833,984
|
1,515,392
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
9,575,076
|
6,588,081
|
4,464,630
|
1,974,762
|
1,660,002
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Trade creditors
|
3,712,102
|
2,520,212
|
1,254,894
|
676,277
|
401,650
|
|
Other creditors & accruals
|
1,277,310
|
1,189,445
|
651,286
|
261,055
|
190,124
|
|
Hire purchase & lease creditors
|
24,568
|
22,798
|
21,028
|
11,996
|
11,695
|
|
Bank overdraft
|
-
|
-
|
698,028
|
39,275
|
167,018
|
|
Short term borrowings/Term loans
|
78,468
|
78,468
|
31,428
|
4,200
|
4,200
|
|
Amounts owing to director
|
41,437
|
379,430
|
501,829
|
320,925
|
331,425
|
|
Provision for taxation
|
319,667
|
51,674
|
2,252
|
79,403
|
58,004
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
5,453,552
|
4,242,027
|
3,160,745
|
1,393,131
|
1,164,116
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
1,796,654
|
315,229
|
357,451
|
440,853
|
351,276
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
4,121,524
|
2,346,054
|
1,303,885
|
581,631
|
495,886
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
|
Ordinary share capital
|
500,000
|
100,000
|
100,000
|
100,000
|
100,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
500,000
|
100,000
|
100,000
|
100,000
|
100,000
|
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
Retained profit/(loss) carried forward
|
2,853,846
|
1,450,295
|
784,720
|
404,949
|
313,716
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
2,853,846
|
1,450,295
|
784,720
|
404,949
|
313,716
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
3,353,846
|
1,550,295
|
884,720
|
504,949
|
413,716
|
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES
|
|
|
|
|
|
|
Long term loans
|
676,052
|
693,515
|
294,972
|
29,558
|
30,275
|
|
Hire purchase creditors
|
76,626
|
101,194
|
123,992
|
43,122
|
49,195
|
|
Deferred taxation
|
15,000
|
1,050
|
201
|
4,002
|
2,700
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
767,678
|
795,759
|
419,165
|
76,682
|
82,170
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
4,121,524
|
2,346,054
|
1,303,885
|
581,631
|
495,886
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
FINANCIAL
RATIO
|
NORTH EMERALD (M) SDN BHD
|
|
TYPES OF FUNDS
|
|
|
|
|
|
|
Cash
|
2,210,533
|
1,931,338
|
2,148,192
|
989,617
|
759,967
|
|
Net Liquid Funds
|
2,210,533
|
1,852,870
|
1,418,736
|
946,142
|
588,749
|
|
Net Liquid Assets
|
1,449,649
|
3,265
|
142,352
|
255,645
|
191,344
|
|
Net Current Assets/(Liabilities)
|
1,796,654
|
315,229
|
357,451
|
440,853
|
351,276
|
|
Net Tangible Assets
|
4,121,524
|
2,346,054
|
1,303,885
|
581,631
|
495,886
|
|
Net Monetary Assets
|
681,971
|
<792,494>
|
<276,813>
|
178,963
|
109,174
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
|
Total Borrowings
|
855,714
|
895,975
|
1,169,448
|
128,151
|
262,383
|
|
Total Liabilities
|
6,221,230
|
5,037,786
|
3,579,910
|
1,469,813
|
1,246,286
|
|
Total Assets
|
9,575,076
|
6,588,081
|
4,464,630
|
1,974,762
|
1,660,002
|
|
Net Assets
|
4,121,524
|
2,346,054
|
1,303,885
|
581,631
|
495,886
|
|
Net Assets Backing
|
3,353,846
|
1,550,295
|
884,720
|
504,949
|
413,716
|
|
Shareholders' Funds
|
3,353,846
|
1,550,295
|
884,720
|
504,949
|
413,716
|
|
Total Share Capital
|
500,000
|
100,000
|
100,000
|
100,000
|
100,000
|
|
Total Reserves
|
2,853,846
|
1,450,295
|
784,720
|
404,949
|
313,716
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
|
Cash Ratio
|
0.41
|
0.46
|
0.68
|
0.71
|
0.65
|
|
Liquid Ratio
|
1.27
|
1.00
|
1.05
|
1.18
|
1.16
|
|
Current Ratio
|
1.33
|
1.07
|
1.11
|
1.32
|
1.30
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Stock Ratio
|
2
|
3
|
4
|
10
|
7
|
|
Debtors Ratio
|
20
|
14
|
14
|
32
|
21
|
|
Creditors Ratio
|
20
|
25
|
22
|
36
|
18
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
|
Gearing Ratio
|
0.26
|
0.58
|
1.32
|
0.25
|
0.63
|
|
Liabilities Ratio
|
1.85
|
3.25
|
4.05
|
2.91
|
3.01
|
|
Times Interest Earned Ratio
|
33.67
|
34.07
|
104.65
|
46.90
|
54.14
|
|
Assets Backing Ratio
|
8.24
|
4.69
|
2.61
|
1.16
|
0.99
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
|
Operating Profit Margin
|
2.62
|
2.39
|
2.36
|
1.78
|
3.67
|
|
Net Profit Margin
|
1.94
|
1.83
|
1.81
|
1.33
|
2.86
|
|
Return On Net Assets
|
47.28
|
38.28
|
38.33
|
21.52
|
62.14
|
|
Return On Capital Employed
|
47.00
|
36.69
|
24.33
|
19.65
|
45.40
|
|
Return On Shareholders' Funds/Equity
|
41.85
|
42.93
|
42.93
|
18.07
|
56.98
|
|
Dividend Pay Out Ratio (Times)
|
0.00
|
0.00
|
0.00
|
0.00
|
0.00
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
0
|
0
|
0
|
|