|
* Adopted abbreviations :
|
SC - Subject Company (the company
enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
419384-M
|
|
COMPANY NAME
|
:
|
NATURAL SOAPS SDN BHD
|
|
FORMER NAME
|
:
|
TWENTY TWENTY-ONE SDN BHD (28/06/2001)
|
|
INCORPORATION DATE
|
:
|
05/02/1997
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
UBN TOWER, 10 JALAN P RAMLEE, 12TH FLOOR,
50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
PLO 428, JALAN BESI SATU, 81700 PASIR
GUDANG, JOHOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
07-2533888/3788
|
|
FAX.NO.
|
:
|
07-2528717/2511614
|
|
EMAIL
|
:
|
suresh@natoleo.com
|
|
WEB SITE
|
:
|
www.natoleo.com
|
|
CONTACT PERSON
|
:
|
SURESH GUNARATNAM ( SENIOR GENERAL
MANAGER )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
20291
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURING AND SALE OF SOAP NOODLES
|
|
AUTHORISED CAPITAL
|
:
|
MYR 25,000,000.00 DIVIDED INTO
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 8,000,000.00 DIVIDED INTO
ORDINARY SHARES 8,000,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 163,832,782 [2011]
|
|
NET WORTH
|
:
|
MYR 18,391,170 [2011]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
50 [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) manufacturing and sale of soap noodles.
The SC is not listed on Bursa Malaysia
(Malaysia Stock Exchange).
The immediate holding company of the SC is
NATURAL OLEOCHEMICALS SDN. BHD., a company incorporated in MALAYSIA.
The ultimate holding company of the SC is
JOHOR CORPORATION, a company incorporated in MALAYSIA.
The major
shareholder(s) of the SC are shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
NATURAL OLEOCHEMICALS SDN. BHD.
|
PLO 428, JALAN BESI SATU, 81700 PASIR
GUDANG, JOHOR, MALAYSIA.
|
150005
|
8,000,000.00
|
100.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
8,000,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. YEE CHEK TOONG
|
|
Address
|
:
|
1, JALAN AUSTIN HEIGHTS 2/11, TAMAN MOUNT
AUSTIN, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.
|
|
IC / PP No
|
:
|
5192922
|
|
New IC No
|
:
|
570704-01-6583
|
|
Date of Birth
|
:
|
04/07/1957
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. RAHUL KALE
|
|
Address
|
:
|
40 NASSIM HILL #07-42, 258474, SINGAPORE.
|
|
IC / PP No
|
:
|
S2719452D
|
|
|
|
|
|
Date of Birth
|
:
|
29/03/1953
|
|
|
|
|
|
Nationality
|
:
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
KARIMUNDACKAL GEORGE JOSEPH
|
|
Address
|
:
|
PLO 428,, JALAN BESI 1, 81700 PASIR
GUDANG, JOHOR, MALAYSIA.
|
|
IC / PP No
|
:
|
Z1524044
|
|
|
|
|
|
Date of Birth
|
:
|
15/11/1951
|
|
|
|
|
|
Nationality
|
:
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
SURESH GUNARATNAM
|
|
|
Position
|
:
|
SENIOR GENERAL MANAGER
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
LEE KIM TEH
|
|
|
Position
|
:
|
OPERATIONS MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
ERNST & YOUNG
|
|
Auditor' Address
|
:
|
SUITE 11.2, MENARA PELANGI 2 JALAN KUNING
TAMAN PELANGI, LEVEL 11, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. MAH TECK KEONG
|
|
|
|
|
|
|
|
New IC No
|
:
|
620920-10-6607
|
|
|
Address
|
:
|
21,PERSIARAN SYED PUTRA, 50460 KUALA
LUMPUR., MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with
above mentioned banker(s). No adverse record was found during our
investigation.
|
ENCUMBRANCE
(S)
No encumbrance was found in our databank at the time of investigation.
LEGAL
CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER
CHECK AGAINST SC
* We have checked through the SC in our defaulters' database which comprised
of debtors that have been blacklisted by our customers and debtors that have
been placed or assigned to us for collection since 1990. Information was
provided by third party where the debt amount can be disputed. Please check
with creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT
RECORD
|
|
|
|
SOURCES OF RAW MATERIALS:
|
|
Local
|
:
|
YES
|
|
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
|
Percentage
|
:
|
2%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
98%
|
|
Export Market
|
:
|
ASIA, EUROPE
|
|
Credit Term
|
:
|
30 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
SOAP NOODLES (PALM BASE/ PALM KERNEL
BASE)
|
|
|
|
|
|
|
Award
|
:
|
1 ) MS ISO 9001 : 2000 Year :2004
|
|
|
|
|
|
Competitor(s)
|
:
|
BP CHEMICALS (MALAYSIA) SDN. BHD.
EMERY OLEOCHEMICALS (M) SDN BHD
KL-KEPONG OLEOMAS SDN. BHD.
NYLEX (MALAYSIA) BHD
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
FEDERATION OF MALAYSIAN MANUFACTURERS
(FMM)
|
|
|
|
|
|
Factory Size
|
:
|
5 HECTARES
|
|
Production Line
|
:
|
1
|
|
Total Number of Employees:
|
|
YEAR
|
2012
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
50
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing and sale of
soap noodles.
The SC manufacture and export stable, super white and low odour soap noodles
made from 100% renewable and environment friendly raw materials.
The SC provides its soap noodles in two type of packing such as:
* 800kg pack and;
* 25 kg pack.
We were informed that the SC is sharing the working premises with its related
company namely; Natural Oleochemicals Sdn Bhd (NatOleo's), which is involved
in the manufacturing of oleochemical products.
The SC has about 925 sq. meters. of main storage space, along with NatOleo's
own 3,700 sq. meters. of supporting warehouse facility.
The SC is equipped with fully automated DCS system and machineries as
follows:
* Spray Drier.
* Neutraliser.
* Silos.
* Plodder.
PROJECTS
No projects found in our databank
CURRENT
INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
072533888
|
|
Current Telephone Number
|
:
|
07-2533888/3788
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
PLO 338, JALAN TEMBAGA DUA KAWASAN
PERINDUSTRIAN PASIR GUDANG P O BOX 81707
|
|
Current Address
|
:
|
PLO 428, JALAN BESI SATU, 81700 PASIR
GUDANG, JOHOR, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted Mr Azlan from the Logistic Department. He provided some
information on the SC.
The address provided belongs to PGEO Edible Oils Sdn Bhd, which is the SC's
related company.
FINANCIAL
ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Increased
|
[
|
2007 - 2011
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2007 - 2011
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
9.01%
|
]
|
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
15.48%
|
]
|
|
|
|
|
|
|
|
|
|
|
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.
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
|
[
|
11 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Unfavourable
|
[
|
67 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
7 Days
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's stocks were moving fast thus reducing
its holding cost. This had reduced funds being tied up in stocks. The high
debtors' ratio could indicate that the SC was weak in its credit control.
However, the SC could also giving longer credit periods to its customers in
order to boost its sales or to capture / retain its market share. 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
|
:
|
Acceptable
|
[
|
0.96 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.12 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's liquid ratio was slightly low. This
could indicate that the SC's working capital was slightly deficient. The SC
will have to improve its liquidity position either by obtaining short term
financing or increase its paid up capital so that it can meet all its short
term obligations as and when they fall due.
|
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Unfavourable
|
[
|
2.96 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's interest cover was low. If its
profits fall or when interest rate rises, it may not be able to meet all
its interest payment. The SC had no gearing and hence it had virtually no
financial risk. The SC was financed by its shareholders' funds and internally
generated fund. During the economic downturn, the SC, having a zero
gearing, will be able to compete better than those which are highly geared
in the same industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
Generally, the SC's performance has
improved with higher turnover and profit. The SC's liquidity was at an
acceptable range. If the SC is able to obtain further short term financing,
it should be able to meet all its short term obligations. If there is a
fall in the SC's profit or any increase in interest rate, the SC may not be
able to generate sufficient cash-flow to service its interest. The SC was a
zero gearing company, it was solely dependant on its shareholders to
provide funds to finance its business. The SC has good chance of getting
loans, if the needs arises.
|
|
|
|
|
|
|
|
|
|
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
|
|
20291 : Manufacture of photographic
plates, films, sensitized paper and other sensitized unexposed materials
|
|
|
|
|
INDUSTRY :
|
MANUFACTURING
|
|
|
|
|
|
|
The manufacturing sector is expected to be driven by higher value-added
activities in Malaysia.The GDP growth for first quarter 2012 indicating
manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia
recorded a 12% jump in approved investments in the manufacturing sector in
the first quarter of 2012 compared with the corresponding period 2011.
According to Federation of Malaysian Manufacturers (FMM), manufacturing
sector expected to improve in the third quarter 2012 despite concerns over external
developments and the rising cost of production.
|
|
The rubber products sub-sector is expected to remain resilient supported by
continuous improvements in medical and healthcare standards in emerging
markets as well as demand from niche markets such as the oil and gas sector
for rubber hoses. Malaysia rubber exports are forecast to grow at 10%, at
the end of 2012 driven by global demand for medical gloves as well as
rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber
shipments in Malaysia due to hospitals and clinics place more intrest on
rising health and hygiene awareness.
|
|
The Malaysia government has growth target of 6.5% for wood based furniture
where estimated to reach up to RM53 billion by year 2020.The government
providing pioneer status for tax exemption and investment tax allowance for
this industry as a boost up step towards produce good quality product and
to meet the world demand.
|
|
Chemical production are expected to show 6.2% in year 2012 and 7.5 % in year
2013 inline with Malaysia as one of the largest contributor in world
Chemicals & Chemical industries.
|
|
According to Malaysian Iron and Steel Industry Federation, first half of
2012 would remain weak for the local steel industry due to eurozone crisis,
slowdown in China's economy and less robust construction activities in the
developed countries. At first quarter 2012, the average local steel price
is trading atRM2,300 per tonne compared with the average international
price of US$740 (RM2,331) per tonne.
|
|
According to the Department of Statistics, Malaysia during the first
quarter 2012, the manufacturing output increased due to activities in major
sub-sectors such as petroleum, chemical, rubber and plastic products (10.5
%), and non-metallic mineral products, basic metal and fabricated metal
products (3.9 %). Meanwhile, it's also announced that the manufacturing
sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared
with RM47.7 billion in May 2011. The Industrial Production Index (IPI )
increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %).
|
|
Tax and non-tax incentives provided by goverment encourage manufacturers to
move up the value chain of manufacturing industry. The new growth
initiatives by goverment in the manufacturing sector such as solar and
medial services can be important drivers of growth apart from helping to
diversify the manufacturing base and contributing to the resilience of the
sector.
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
CREDIT
RISK EVALUATION & RECOMMENDATION
|
Incorporated in 1997, the SC is a Private Limited company, focusing on
manufacturing and sale of soap noodles. 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. With an issued and paid up capital of RM8
million, the SC has fair 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. Overall, we regard that the SC's management capability is average.
|
|
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. The SC has generated an
unfavourable return on shareholders' funds indicating that the management
was inefficient in utilising its funds to generate return. However, the SC
managed to maintain an adequate liquidity level, indicating that the SC has
the ability to meet its financial obligations. Being a zero geared company,
the SC virtually has no financial risk as it is mainly dependent on its
internal funds to finance its business. Given a positive net worth standing
at MYR 18,391,170, 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.
|
|
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 normally.
|
PROFIT
AND LOSS ACCOUNT
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN
FINANCIAL REPORTING STANDARDS(FRS)
|
|
NATURAL SOAPS SDN BHD
|
|
Financial Year End
|
31/12/2011
|
31/12/2010
|
31/12/2009
|
31/12/2008
|
31/12/2007
|
|
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
|
FULL
|
FULL
|
FULL
|
FULL
|
FULL
|
|
Currency
|
MYR
|
MYR
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
TURNOVER
|
163,832,782
|
137,724,899
|
136,340,881
|
130,655,415
|
99,506,507
|
|
Other Income
|
-
|
-
|
215,897
|
2,798,035
|
227,815
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
163,832,782
|
137,724,899
|
136,556,778
|
133,453,450
|
99,734,322
|
|
Costs of Goods Sold
|
<158,510,070>
|
<130,402,065>
|
<130,104,392>
|
<127,821,874>
|
<97,488,049>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
5,322,712
|
7,322,834
|
6,452,386
|
5,631,576
|
2,246,273
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
1,885,172
|
1,325,269
|
1,742,538
|
3,299,954
|
189,790
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
1,885,172
|
1,325,269
|
1,742,538
|
3,299,954
|
189,790
|
|
Taxation
|
<228,232>
|
<380,138>
|
<371,000>
|
<678,101>
|
<202,514>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
1,656,940
|
945,131
|
1,371,538
|
2,621,853
|
<12,724>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As previously reported
|
8,734,230
|
7,737,549
|
7,966,011
|
5,344,158
|
2,318,882
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
8,734,230
|
7,737,549
|
7,966,011
|
5,344,158
|
2,318,882
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
10,391,170
|
8,682,680
|
9,337,549
|
7,966,011
|
2,306,158
|
|
- General
|
-
|
51,550
|
-
|
-
|
3,038,000
|
|
DIVIDENDS - Ordinary (paid &
proposed)
|
-
|
-
|
<1,600,000>
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
10,391,170
|
8,734,230
|
7,737,549
|
7,966,011
|
5,344,158
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to
P&L)
|
|
|
|
|
|
|
Bankers' acceptance
|
271,454
|
423,309
|
304,930
|
385,558
|
593,625
|
|
Loan from holding company
|
602,656
|
-
|
-
|
-
|
-
|
|
Revolving loans
|
-
|
85,417
|
177,878
|
245,348
|
202,808
|
|
Others
|
87,119
|
-
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
961,229
|
508,726
|
482,808
|
630,906
|
796,433
|
BALANCE
SHEET
|
ASSETS EMPLOYED:
|
|
|
|
|
|
|
FIXED ASSETS
|
14,193,171
|
14,995,396
|
16,047,767
|
16,817,568
|
17,293,036
|
|
|
|
|
|
|
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
Deferred assets
|
497,000
|
593,000
|
987,000
|
1,358,000
|
2,021,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
497,000
|
593,000
|
987,000
|
1,358,000
|
2,021,000
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
14,690,171
|
15,588,396
|
17,034,767
|
18,175,568
|
19,314,036
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
Stocks
|
5,059,595
|
4,923,839
|
3,545,335
|
2,351,819
|
2,736,920
|
|
Trade debtors
|
30,113,541
|
27,320,088
|
25,351,394
|
23,657,807
|
24,087,149
|
|
Other debtors, deposits & prepayments
|
320,679
|
313,972
|
127,417
|
123,924
|
127,309
|
|
Deposits with financial institutions
|
236,364
|
1,068,165
|
-
|
-
|
-
|
|
Cash & bank balances
|
103,142
|
149,996
|
12,218,076
|
13,024,128
|
5,588,513
|
|
Others
|
-
|
2,275
|
-
|
-
|
126,933
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
35,833,321
|
33,778,335
|
41,242,222
|
39,157,678
|
32,666,824
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
50,523,492
|
49,366,731
|
58,276,989
|
57,333,246
|
51,980,860
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Trade creditors
|
2,844,998
|
7,333,153
|
23,391,241
|
26,480,727
|
23,271,411
|
|
Other creditors & accruals
|
18,671,081
|
24,299,348
|
1,448,199
|
1,984,976
|
1,170,291
|
|
Short term borrowings/Term loans
|
-
|
-
|
16,100,000
|
12,900,000
|
14,195,000
|
|
Bill & acceptances payable
|
-
|
1,000,000
|
-
|
-
|
-
|
|
Provision for taxation
|
125,543
|
-
|
-
|
1,532
|
-
|
|
Dividends payable/proposed
|
-
|
-
|
1,600,000
|
-
|
-
|
|
Other liabilities
|
10,490,700
|
-
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
32,132,322
|
32,632,501
|
42,539,440
|
41,367,235
|
38,636,702
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
3,700,999
|
1,145,834
|
<1,297,218>
|
<2,209,557>
|
<5,969,878>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
18,391,170
|
16,734,230
|
15,737,549
|
15,966,011
|
13,344,158
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
|
Ordinary share capital
|
8,000,000
|
8,000,000
|
8,000,000
|
8,000,000
|
8,000,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
8,000,000
|
8,000,000
|
8,000,000
|
8,000,000
|
8,000,000
|
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
Retained profit/(loss) carried forward
|
10,391,170
|
8,734,230
|
7,737,549
|
7,966,011
|
5,344,158
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
10,391,170
|
8,734,230
|
7,737,549
|
7,966,011
|
5,344,158
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
18,391,170
|
16,734,230
|
15,737,549
|
15,966,011
|
13,344,158
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
18,391,170
|
16,734,230
|
15,737,549
|
15,966,011
|
13,344,158
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
RATIO
|
TYPES OF FUNDS
|
|
|
|
|
|
|
Cash
|
103,142
|
149,996
|
12,218,076
|
13,024,128
|
5,588,513
|
|
Net Liquid Funds
|
103,142
|
149,996
|
12,218,076
|
13,024,128
|
5,588,513
|
|
Net Liquid Assets
|
<1,358,596>
|
<3,778,005>
|
<4,842,553>
|
<4,561,376>
|
<8,706,798>
|
|
Net Current Assets/(Liabilities)
|
3,700,999
|
1,145,834
|
<1,297,218>
|
<2,209,557>
|
<5,969,878>
|
|
Net Tangible Assets
|
18,391,170
|
16,734,230
|
15,737,549
|
15,966,011
|
13,344,158
|
|
Net Monetary Assets
|
<1,358,596>
|
<3,778,005>
|
<4,842,553>
|
<4,561,376>
|
<8,706,798>
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
|
Total Borrowings
|
0
|
85,417
|
16,277,878
|
13,145,348
|
14,397,808
|
|
Total Liabilities
|
32,132,322
|
32,632,501
|
42,539,440
|
41,367,235
|
38,636,702
|
|
Total Assets
|
50,523,492
|
49,366,731
|
58,276,989
|
57,333,246
|
51,980,860
|
|
Net Assets
|
18,391,170
|
16,734,230
|
15,737,549
|
15,966,011
|
13,344,158
|
|
Net Assets Backing
|
18,391,170
|
16,734,230
|
15,737,549
|
15,966,011
|
13,344,158
|
|
Shareholders' Funds
|
18,391,170
|
16,734,230
|
15,737,549
|
15,966,011
|
13,344,158
|
|
Total Share Capital
|
8,000,000
|
8,000,000
|
8,000,000
|
8,000,000
|
8,000,000
|
|
Total Reserves
|
10,391,170
|
8,734,230
|
7,737,549
|
7,966,011
|
5,344,158
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
|
Cash Ratio
|
0.00
|
0.00
|
0.29
|
0.31
|
0.14
|
|
Liquid Ratio
|
0.96
|
0.88
|
0.89
|
0.89
|
0.77
|
|
Current Ratio
|
1.12
|
1.04
|
0.97
|
0.95
|
0.85
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Stock Ratio
|
11
|
13
|
9
|
7
|
10
|
|
Debtors Ratio
|
67
|
72
|
68
|
66
|
88
|
|
Creditors Ratio
|
7
|
21
|
66
|
76
|
87
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
|
Gearing Ratio
|
0.00
|
0.01
|
1.03
|
0.82
|
1.08
|
|
Liabilities Ratio
|
1.75
|
1.95
|
2.70
|
2.59
|
2.90
|
|
Times Interest Earned Ratio
|
2.96
|
3.61
|
4.61
|
6.23
|
1.24
|
|
Assets Backing Ratio
|
2.30
|
2.09
|
1.97
|
2.00
|
1.67
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
|
Operating Profit Margin
|
1.15
|
0.96
|
1.28
|
2.53
|
0.19
|
|
Net Profit Margin
|
1.01
|
0.69
|
1.01
|
2.01
|
<0.01>
|
|
Return On Net Assets
|
15.48
|
10.96
|
14.14
|
24.62
|
7.39
|
|
Return On Capital Employed
|
15.48
|
10.90
|
13.98
|
24.25
|
7.28
|
|
Return On Shareholders' Funds/Equity
|
9.01
|
5.65
|
8.72
|
16.42
|
<0.10>
|
|
Dividend Pay Out Ratio (Times)
|
0.00
|
0.00
|
1.17
|
0.00
|
0.00
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
0
|
0
|
0
|
|