MIRA INFORM REPORT

 

 

Report Date :

05.01.2013

 

IDENTIFICATION DETAILS

 

Name :

MM VITAOILS SDN. BHD.

 

 

Formerly Known As :

NALURI PESONA SDN BHD (22/07/2002)

 

 

Registered Office :

419, Block A, Kelana Business Centre, 97 Jalan Ss 7/2, Kelana Jaya, 47301 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

20.07.1996

 

 

Com. Reg. No.:

394937-P

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturer of Palm Oil and Other Related Products

 

 

No. of Employees :

50

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

 

NOTES :

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

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

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

Source : CIA


 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

394937-P

COMPANY NAME

:

MM VITAOILS SDN. BHD.

FORMER NAME

:

NALURI PESONA SDN BHD (22/07/2002)

INCORPORATION DATE

:

20/07/1996

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

419, BLOCK A, KELANA BUSINESS CENTRE, 97 JALAN SS 7/2, KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 3, PERSIARAN PERUSAHAAN, SECTION 23, 40300 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-55488122

FAX.NO.

:

03-55489122

EMAIL

:

enquiries@mmvitaoils.com.my

WEB SITE

:

www.mmvitaoils.com.my

CONTACT PERSON

:

MAZLAN BIN MUHAMMAD ( CEO )

 

 

 

INDUSTRY CODE

:

10306

PRINCIPAL ACTIVITY

:

MANUFACTURER OF PALM OIL AND OTHER RELATED PRODCUTS

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 6,785,000.00 DIVIDED INTO
ORDINARY SHARES 6,685,002 CASH AND 99,998 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 85,545,288 [2010]

NET WORTH

:

MYR 36,025,440 [2010]

 

 

 

STAFF STRENGTH

:

50 [2012]

BANKER (S)

:

EXPORT-IMPORT BANK OF MALAYSIA BHD
HONG LEONG BANK BHD
MALAYAN BANKING BHD
MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BHD
MALAYSIAN INTERNATIONAL MERCHANT BANKERS BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

PROMPT

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) manufacturer of palm oil and other related prodcuts.

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. MAZLAN BIN MUHAMMAD +

NO.57,JALAN ANGGERIK VANDA 31/168, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

600718-03-5501 5949473

4,406,998.00

64.95

MS. HAYATI BTE JANTAN +

57, JALAN ANGGERIK VANDA 31/168, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

630406-71-5476 6974492

3,002.00

0.04

SINDORA BHD

PERSADA JOHOR INTERNATIONAL CONVENTION CENTRE, JALAN ABDULLAH IBRAHIM, LEVEL 2, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

13418

2,375,000.00

35.00

 

 

 

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

------

 

 

 

6,785,000.00

100.00

 

 

 

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

=====


+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. MUHAMAD BIN JANTAN

Address

:

44, JALAN SUNGAI ARA 4, DESA ARA, 11900 BAYAN LEPAS, PULAU PINANG, MALAYSIA.

IC / PP No

:

5635305

New IC No

:

550915-04-5183

Date of Birth

:

15/09/1955

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

17/12/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. RAMLAN BIN JUKI

Address

:

NO.40, JALAN GAYA 18, TAMAN GAYA, 81800 ULU TIRAM, JOHOR, MALAYSIA.

 

 

 

New IC No

:

640711-01-5467

Date of Birth

:

11/07/1964

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

11/10/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

DATUK HARON BIN SIRAJ

Address

:

108,JLN.AU5C/6, LEMBAH KERAMAT, 54200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

2776675

New IC No

:

441229-01-5045

Date of Birth

:

29/12/1944

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

15/05/2006

 

 

 

Qualification

:

BACHELOR OF ARTS WITH HONOURS FOR ECONOMICS FROM THE UNIVERSITY OF MANCHESTER, UNITED KINGDOM. MASTERS DEGREE IN DEVELOPMENT ECONOMICS AT WILLIAMS COLLEGE, USA IN 1974.

Working Experience

:

IN JANUARY 2001, HE WAS APPOINTED AS CEO OF THE MALAYSIAN PALM OIL PROMOTION COUNCIL WHERE HE CONTINUES TO SERVE UNTIL THE PRESENT DAYS.

Other Info

:

PJN 4

 

DIRECTOR 4

 

Name Of Subject

:

MS. HAYATI BTE JANTAN

Address

:

57, JALAN ANGGERIK VANDA 31/168, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

6974492

New IC No

:

630406-71-5476

Date of Birth

:

06/04/1963

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

15/09/1999

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. MAZLAN BIN MUHAMMAD

Address

:

NO.57,JALAN ANGGERIK VANDA 31/168, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

5949473

New IC No

:

600718-03-5501

Date of Birth

:

18/07/1960

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

29/01/1999

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

MAZLAN BIN MUHAMMAD

 

Position

:

CEO

 

 

 

 

 

2)

Name of Subject

:

DINA TA'LIB

 

Position

:

GENERAL MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

WAN NADZIR & CO

Auditor' Address

:

IC, BLOCK 1, WORLDWIDE BUSINESS PARK, JALAN TINJU 13/50, SECTION 13, 3RD FLOOR, 40670 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

DATO' MUHAMMAD HAFIDZ BIN NURUDDIN

 

IC / PP No

:

4524498

 

New IC No

:

531101-08-7065

 

Address

:

NO.3,JALAN 11/3C, 40100 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

EXPORT-IMPORT BANK OF MALAYSIA BHD

 

 

 

 

 

2)

Name

:

HONG LEONG BANK BHD

 

 

 

 

 

3)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

4)

Name

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BHD

 

 

 

 

 

5)

Name

:

MALAYSIAN INTERNATIONAL MERCHANT BANKERS 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

:

01/11/2010

Description Of Charge

:

MEMORANDUM

 

Amount Secured

:

N/A

Description Of Property Affected

:

FIXED PROPERTY

 

Name & Address Of Chargee

:

HONG LEONG BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 10 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

21/10/2011

Description Of Charge

:

MEMORANDUM

 

Amount Secured

:

RM45,000,000.00

Description Of Property Affected

:

FIXED CHARGE

 

Name & Address Of Chargee

:

AFFIN INVESTMENT BANK BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 11 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

24/10/2011

Description Of Charge

:

MEMORANDUM

 

Amount Secured

:

RM27,260.00

Description Of Property Affected

:

FIXED CHARGE

 

Name & Address Of Chargee

:

AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 12 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

02/02/2012

Description Of Charge

:

MEMOERANDUM

 

Amount Secured

:

RM45,000,000.00

Description Of Property Affected

:

FIXED CHARGE

 

Name & Address Of Chargee

:

AFFIN INVESTMENT BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 13 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

:

YES

Overseas

:

YES

 

 

 

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

5%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

95%

Export Market

:

WORLDWIDE

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

TELEGRAPHIC TRANSFER (TT),CHEQUES,LETTER OF CREDIT (LC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

COOKING OIL, MARGARINE, SHORTENING, VEGETABLE GHEE

 

 

 

Brand Name

:

BLOSSOMMM, GOLDEN TREAT, MERVELLOSO, PALMAS, QUALITASTE, RISE & SHINE, SERIMAS ETC

 

 

 

 

Award

:

1 ) ENTERPRISE 50 AWARD Year :2007
2 ) EXPORT EXCELLENCE AWARD (MERCHANDISE) BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2007
3 ) CERTIFICATE OF EXCELLENCE Year :2007
4 ) SMALL MEDIUM BUSINESSES (SMB) EXPORT EXCELLENCE AWARD BY SMI ASSOCIATION OF MALAYSIA Year :2005
5 ) EXCELLENCE BRAND OF ASIA PACIFIC ENTREPRENEUR EXCELLENCE AWARD Year :2005
6 ) GOLDEN BULL AWARD Year :2005
7 ) CERTIFICATE OF MERITS BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2004

 

 

 

 

 

 

 

 

 

 

Competitor(s)

:

INTERCONTINENTAL SPECIALTY FATS SDN BHD
MOI FOODS MALAYSIA SDN BHD
PALM-OLEO SDN BHD
SMALLHOLDERS EDIBLE OIL SDN BHD
SOON SOON OILMILLS SDN. BHD.

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

 

Total Number of Employees:

YEAR

2012

 


 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

50

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturer of palm oil and other related prodcuts.

The SC's products range includes shortening, cooking oil, margarine, pastry margarine, vegetable ghee and others.

The SC's plant has the advantages of packing products in different packaging materials such as nylon pouch bags, tubs, cans, jerry cans, pet bottles, carton boxes, drums and Flexi tanks.

Versatile packing sizes ranging from 10g tubs to 20mt Flexi tank, enable to encompass a wide market, from household consumers to the food industry.




PROJECTS


No projects found in our databank

RECENT DEVELOPMENT


29 NOVEMBER 2007

THE success of MM Vitaoils Sdn Bhd, which specialises in downstream quality edible oil products, is testimony of the vision and strategies of its founder, Mazlan Muhammad. The SC's biggest success is the recognition of our overseas buyers for our quality products, which has resulted in SC penetrating 57 countries," said Mazlan, who is MM Vitaoils managing director.Mazlan said 99 per cent of the company 's revenue last year was from exports to countries in Europe, Africa, Commonwealth Independent States, the Middle East and Southeast Asia." Our main market is Europe, accounting for 35 per cent of revenue," he said.For this year, SC is looking at healthier revenue growth contributed by additional market segments.Mazlan expects the company to register 40 per cent growth in revenue to RM80 million, with exports to 60 countries. Last year, it recorded RM56.9 million revenue. Meanwhile, SC is aggressively training its marketers to bring its products to a wider international market.The company also plans to instal new machinery and packaging lines.Today, SC has the most modern plant in Malaysia with a combined capacity of 12,000 tonnes a month, with the advantage of packing products in different packaging, working in collaboration with the Malaysian Palm Oil Board.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-55488122

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 3, PERSIARAN PERUSAHAAN, SECTION 23,40300,SHAH ALAM,SELANGOR.

Current Address

:

LOT 3, PERSIARAN PERUSAHAAN, SECTION 23, 40300 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

NO

 

Other Investigations


We contacted one of the staff from the Admin Department. She provided some information on the SC.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2010

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2010

]

 

Return on Shareholder Funds

:

Unfavourable

[

7.69%

]

 

Return on Net Assets

:

Unfavourable

[

5.40%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

42 Days

]

 

Debtor Ratio

:

Unfavourable

[

226 Days

]

 

Creditors Ratio

:

Favourable

[

1 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.88 Times

]

 

Current Ratio

:

Favourable

[

2.19 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

[

70.64 Times

]

 

Gearing Ratio

:

Acceptable

[

0.86 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's gearing was slightly high. The SC is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the SC. It will be more vulnerable in times of economy downturn.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. 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's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the SC's performance may deteriorate in the coming year.

 

 

 

 

 

 

 

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

10306 : Manufacture of bean curd products

 

 

INDUSTRY :

TRADING

 

 

 


The wholesale and retail trade sector grew 7.1% in the first half of the year 2011 supported by strong consumer spending amid favourable labour market conditions and sustained disposable income. This was reflected in the higher distributive trade index which increased 15.9%, with wholesale and retail trade indices increasing 19.2% and 7.8%, respectively.


It is anticipated that the retail industry will grow 6.0 per cent in the year 2012.


Malaysia's retail sector for 2011 is expected to grow 6 per cent or RM81.59 billion worth of retail sales, similar to the year 2010, due to concerns of high oil prices, declining purchasing power and high cost of doing business. The Middle East and North Africa civil wars have caused the world oil prices to climb. This has led to further rise in the cost of running retail businesses, especially in terms of transportation cost. Many retailers have no choice but to pass the increased cost to end consumers. At the same time, natural disasters (tsunamis, floods, droughts, snow storms, tornadoes and earthquakes) that occurred in all parts of the world has also led to a shortage in the supply of food and raw materials. The phenomenon has pushed retail prices up.In addition, the continual removal of government subsidies since 2010 has pushed inflation upwards. Consequently, rising prices of retail goods contributed to an expectation of moderate performance.


During the first seven months of 2011, other consumption indicators such as imports of consumption goods and credit card spending increased 12.8% and 11.8%, respectively. Sales of motor vehicles declined 3% on account of supply chain disruptions following devastating March 2011 earthquake and tsunami in Japan.


Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.


Meanwhile, the Government has introduced the Retail Shop Transformation (TUKAR) programme. Under this programme, selected large format retailers will assist small retailers to improve their premises and layout which include attractive product display shelves, enhanced lighting and point-of-sales system to manage product inventory,

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1996, the SC is a Private Limited company, focusing on manufacturer of palm oil and other related prodcuts. Having been in the industry for 17 years, 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. With an issued and paid up capital of RM6.8 million, the SC has strong capital position for its future expansion and continued growth.


Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. The SC is operating on a medium scale and it has approximately 50 employees in its business operations. Overall, we regard that the SC's management capability is average.


The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The gearing level of the SC is slightly high, therefore it faces moderate financial risk.However, 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 36,025,440, the SC should be able to maintain its business in the near terms.


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.


We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.


Based on the above condition, we recommend credit be granted to the SC normally.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

MM VITAOILS SDN. BHD.

 

Financial Year End

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

85,545,288

102,078,420

101,167,133

86,973,541

Other Income

205,874

1,107,408

-

-

 

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

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

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

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

Total Turnover

85,751,162

103,185,828

101,167,133

86,973,541

Costs of Goods Sold

<68,334,344>

<83,934,974>

-

-

 

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

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

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

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

Gross Profit

17,416,818

19,250,854

-

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

4,425,243

6,243,453

4,325,158

5,594,859

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

4,425,243

6,243,453

4,325,158

5,594,859

Taxation

<1,655,364>

<375,484>

<422,090>

<402,983>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

2,769,879

5,867,969

3,903,068

5,191,876

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

19,395,561

13,527,592

9,624,524

4,432,648

 

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

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

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

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

As restated

19,395,561

13,527,592

9,624,524

4,432,648

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

22,165,440

19,395,561

13,527,592

9,624,524

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

22,165,440

19,395,561

13,527,592

9,624,524

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Hire purchase

63,549

27,400

-

-

 

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

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

 

 

 

63,549

27,400

 

 

 

 

 

BALANCE SHEET

 

 

MM VITAOILS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

22,995,928

20,973,156

17,377,161

18,641,972

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Investments

19,320,000

2,309,100

-

-

Deferred assets

271,790

417,933

-

-

Others

3,177,703

3,213,057

-

-

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

22,769,493

5,940,090

0

0

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

45,765,421

26,913,246

17,377,161

18,641,972

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

9,891,116

9,516,679

-

-

Trade debtors

52,948,490

60,687,379

-

-

Other debtors, deposits & prepayments

-

4,244,496

-

-

Short term deposits

4,370,714

-

-

-

Deposits with financial institutions

1,561,095

1,521,031

-

-

Cash & bank balances

13,617

2,543,156

-

-

 

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

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

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

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

TOTAL CURRENT ASSETS

68,785,032

78,512,741

58,663,232

51,351,431

 

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

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

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

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

TOTAL ASSET

114,550,453

105,425,987

76,040,393

69,993,403

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

225,524

435,623

-

-

Other creditors & accruals

345,307

985,021

-

-

Hire purchase & lease creditors

706,041

165,853

-

-

Short term borrowings/Term loans

29,483,752

25,882,800

-

-

Provision for taxation

588,785

399,363

-

-

 

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

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

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

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

TOTAL CURRENT LIABILITIES

31,349,409

27,868,660

45,350,722

3,716,873

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

37,435,623

50,644,081

13,312,510

47,634,558

 

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

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

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

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

TOTAL NET ASSETS

83,201,044

77,557,327

30,689,671

66,276,530

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

6,785,000

6,785,000

6,785,000

6,785,000

 

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

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

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

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

TOTAL SHARE CAPITAL

6,785,000

6,785,000

6,785,000

6,785,000

 

 

 

 

 

RESERVES

 

 

 

 

Share premium

5,655,000

5,655,000

5,655,000

5,655,000

Capital reserve

300,000

300,000

300,000

300,000

Retained profit/(loss) carried forward

22,165,440

19,395,561

13,527,592

9,624,524

Others

1,120,000

159,100

-

-

 

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

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

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

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

TOTAL RESERVES

29,240,440

25,509,661

19,482,592

15,579,524

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

36,025,440

32,294,661

26,267,592

22,364,524

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Hire purchase creditors

819,370

132,046

-

-

Deferred taxation

1,607,500

350,500

-

-

Others

44,748,734

44,780,120

-

-

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

47,175,604

45,262,666

4,422,079

43,912,006

 

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

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

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

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

 

83,201,044

77,557,327

30,689,671

66,276,530

 

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

MM VITAOILS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

Cash

4,384,331

2,543,156

-

-

Net Liquid Funds

4,384,331

2,543,156

-

-

Net Liquid Assets

27,544,507

41,127,402

13,312,510

47,634,558

Net Current Assets/(Liabilities)

37,435,623

50,644,081

13,312,510

47,634,558

Net Tangible Assets

83,201,044

77,557,327

30,689,671

66,276,530

Net Monetary Assets

<19,631,097>

<4,135,264>

8,890,431

3,722,552

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

31,009,163

26,180,699

-

-

Total Liabilities

78,525,013

73,131,326

49,772,801

47,628,879

Total Assets

114,550,453

105,425,987

76,040,393

69,993,403

Net Assets

83,201,044

77,557,327

30,689,671

66,276,530

Net Assets Backing

36,025,440

32,294,661

26,267,592

22,364,524

Shareholders' Funds

36,025,440

32,294,661

26,267,592

22,364,524

Total Share Capital

6,785,000

6,785,000

6,785,000

6,785,000

Total Reserves

29,240,440

25,509,661

19,482,592

15,579,524

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.14

0.09

-

-

Liquid Ratio

1.88

2.48

-

-

Current Ratio

2.19

2.82

1.29

13.82

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

42

34

-

-

Debtors Ratio

226

217

-

-

Creditors Ratio

1

2

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.86

0.81

-

-

Liabilities Ratio

2.18

2.26

1.89

2.13

Times Interest Earned Ratio

70.64

228.86

-

-

Assets Backing Ratio

12.26

11.43

4.52

9.77

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

5.17

6.12

4.28

6.43

Net Profit Margin

3.24

5.75

3.86

5.97

Return On Net Assets

5.40

8.09

14.09

8.44

Return On Capital Employed

5.35

8.07

14.09

8.44

Return On Shareholders' Funds/Equity

7.69

18.17

14.86

23.21

Dividend Pay Out Ratio (Times)

0.00

0.00

-

-

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

 

 



 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.84

UK Pound

1

Rs.88.16

Euro

1

Rs.71.54

 

 

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.