|
Report Date : |
05.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
PGEO MARKETING
SDN. BHD. |
|
|
|
|
Registered Office : |
UBN Tower, 10 Jalan P.Ramlee, 12th Floor , 50250 Kuala
Lumpur, Wilayah Persekutuan |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
19.04.2006 |
|
|
|
|
Com. Reg. No.: |
730681-D |
|
|
|
|
Legal Form : |
Private Limited (Limited By Share) |
|
|
|
|
Line of Business : |
Trading and Marketing of Edible Oil |
|
|
|
|
No. of Employees : |
30 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. 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 about 35% of government revenue in 2011. Bank Negera Malaysia (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 |
|
REGISTRATION NO. |
: |
730681-D |
|
COMPANY NAME |
: |
PGEO MARKETING SDN. BHD. |
|
FORMER NAME |
: |
N/A |
|
INCORPORATION DATE |
: |
19/04/2006 |
|
COMPANY STATUS |
: |
EXIST |
|
LEGAL FORM |
: |
PRIVATE LIMITED (LIMITED BY SHARE) |
|
LISTED STATUS |
: |
NO |
|
REGISTERED ADDRESS |
: |
UBN TOWER, 10 JALAN P.RAMLEE, 12TH FLOOR , 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
BUSINESS ADDRESS |
: |
PLO 338, JALAN TEMBAGA 2, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81707 PASIR GUDANG, JOHOR, MALAYSIA. |
|
TEL.NO. |
: |
07-2688888 |
|
FAX.NO. |
: |
07-2688203 |
|
|
: |
PGEO_MKTKL@WILMAR.COM.MY |
|
WEB SITE |
: |
WWW.PGEOGROUP.COM.MY |
|
CONTACT PERSON |
: |
YEE CHEK TOONG ( MANAGING DIRECTOR ) |
|
INDUSTRY CODE |
: |
46202 |
|
PRINCIPAL ACTIVITY |
: |
TRADING AND MARKETING OF EDIBLE OIL |
|
AUTHORISED CAPITAL |
: |
MYR 2,000,000.00
DIVIDED INTO |
|
ISSUED AND PAID UP CAPITAL |
: |
MYR 2,000,000.00 DIVIDED
INTO |
|
SALES |
: |
MYR 4,358,730,647 [2011] |
|
NET WORTH |
: |
MYR 43,876,332 [2011] |
|
M1000 OVERALL RANKING |
: |
146[2011] |
|
M1000 INDUSTRY RANKING |
: |
6[2011] |
|
STAFF STRENGTH |
: |
30 [2013] |
|
BANKER (S) |
|
MALAYAN BANKING BHD |
|
LITIGATION |
: |
CLEAR |
|
DEFAULTER CHECK |
: |
CLEAR |
|
FINANCIAL CONDITION |
: |
LIMITED |
|
PAYMENT |
: |
AVERAGE |
|
MANAGEMENT CAPABILITY |
: |
AVERAGE |
|
COMMERCIAL RISK |
: |
LOW |
|
CURRENCY EXPOSURE |
: |
MODERATE |
|
GENERAL REPUTATION |
: |
SATISFACTORY |
|
INDUSTRY OUTLOOK |
: |
MATURE |
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 and marketing of edible oil.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
|
According to the Malaysia 1000 publication, the SC's ranking are as follows: |
|||
|
|
|
|
|
|
YEAR |
2011 |
|
|
|
OVERALL RANKING |
146 |
|
|
|
INDUSTRY RANKING |
6 |
|
|
The immediate holding company of the SC is PGEO GROUP SDN BHD, a company incorporated in MALAYSIA.
The ultimate holding company of the SC is WILMAR INTERNATIONAL LIMITED, a company incorporated in SINGAPORE.
The major shareholder(s) of the SC are shown as follows :
|
Name |
Address |
IC/PP/Loc No |
Shareholding |
(%) |
|
PGEO GROUP SDN BHD |
WISMA ACE JERNEH, 38 JALAN SULTAN ISMAIL, 17TH FLOOR, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
515792 |
2,000,000.00 |
100.00 |
|
|
|
|
--------------- |
------ |
|
|
|
|
2,000,000.00 |
100.00 |
|
|
|
|
============ |
===== |
+ Also Director
DIRECTOR 1
|
Name Of Subject |
: |
MS. LIM YEE MEIN |
|
Address |
: |
64 JALAN CAMAR LAPAN, TAMAN PERLING, 81200 JOHOR BAHRU, JOHOR, MALAYSIA. |
|
IC / PP No |
: |
5239971 |
|
New IC No |
: |
570930-01-5642 |
|
Date of Birth |
: |
30/09/1957 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
19/04/2006 |
DIRECTOR 2
|
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 |
|
Date of Appointment |
: |
08/05/2006 |
|
1) |
Name of Subject |
: |
YEE CHEK TOONG |
|
|
Position |
: |
MANAGING DIRECTOR |
|
Auditor |
: |
ERNST & YOUNG |
|
Auditor' Address |
: |
SUITE 11.2, MENARA PELANGI, 2 JALAN KUNING, TAMAN PELANGI, ELVEL 11, 80400 JOHOR BAHRU, JOHOR, MALAYSIA. |
|
1) |
Company Secretary |
: |
MR. MAH TECK KEONG |
|
|
IC / PP No |
: |
6940054 |
|
|
New IC No |
: |
620920-10-6607 |
|
|
Address |
: |
21, PERSIARAN SYED PUTRA, 50460 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
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. |
No encumbrance was found in our databank at the time of investigation.
* 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.
* 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.
|
SOURCES OF RAW MATERIALS: |
|
||||
|
Local |
: |
YES |
Percentage |
: |
100% |
|
Overseas |
: |
NO |
Percentage |
: |
0% |
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 |
[ |
|
] |
|
Average 61-90 Days |
[ |
X |
] |
|
|
Fair 91-120 Days |
[ |
|
] |
|
Poor >120 Days |
[ |
|
] |
|
|
|
|
|
|
|
Local |
: |
YES |
|||
|
Domestic Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
YES |
|
|
|
|
Export Market |
: |
INDIA |
|||
|
Credit Term |
: |
30 - 60 DAYS |
|||
|
Payment Mode |
: |
TELEGRAPHIC TRANSFER (TT) |
|||
|
Goods Traded |
: |
EDIBLE OIL
|
|
|
|
|
|
|
Total Number of Employees: |
|||||||||
|
YEAR |
2013 |
2012 |
|
||||||
|
GROUP |
N/A |
N/A |
|
|
|
|
|
|
|
|
COMPANY |
30 |
20 |
|
|
|
|
|
|
|
|
Branch |
: |
YES
|
Other Information:
The SC is principally engaged in the (as a / as an) trading and marketing of
edible oil.
SC is a subsidiary of PGEO GROUP which involve in wholesale and marketing of
edible oil.
Product range include :
- Palm oil products
- Soft oil products
- Lauric oil products
- Specialty fats
- Texturised fats
No projects found in our databank
Latest fresh investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client |
: |
7 2688888 |
|
Current Telephone Number |
: |
07-2688888 |
|
Match |
: |
YES |
|
|
|
|
|
Address Provided by Client |
: |
PLO 338, JALAN TEMBAGA DUA KAWASAN PERINDUSTRIAN PASIR GUDANG P.O.BOX 80,81707 PASIR GUDANG JOHOR, MALAYSIA |
|
Current Address |
: |
PLO 338, JALAN TEMBAGA 2, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81707 PASIR GUDANG, JOHOR, MALAYSIA. |
|
Match |
: |
YES |
|
|
|
|
|
Latest Financial Accounts |
: |
YES |
Other Investigations
On 4th June 2013, we contacted the SC and she provide some information on SC.
|
Profitability |
|
|
|
|
|
|
|
Turnover |
: |
Erratic |
[ |
2007 - 2011 |
] |
|
|
Profit/(Loss) Before Tax |
: |
Decreased |
[ |
2007 - 2011 |
] |
|
|
Return on Shareholder Funds |
: |
Unfavourable |
[ |
<53.84%> |
] |
|
|
Return on Net Assets |
: |
Unfavourable |
[ |
<73.24%> |
] |
|
|
|
|
|
|
|
|
|
|
The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC incurred losses during the year due to the inefficient control of its operating costs. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns. |
||||||
|
|
|
|
|
|
|
|
|
Working Capital Control |
|
|
|
|
|
|
|
Stock Ratio |
: |
Favourable |
[ |
3 Days |
] |
|
|
Debtor Ratio |
: |
Favourable |
[ |
31 Days |
] |
|
|
Creditors Ratio |
: |
Favourable |
[ |
30 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 |
[ |
1.01 Times |
] |
|
|
Current Ratio |
: |
Unfavourable |
[ |
1.10 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 |
: |
Unfavourable |
[ |
<15.04 Times> |
] |
|
|
Gearing Ratio |
: |
Favourable |
[ |
0.27 Times |
] |
|
|
|
|
|
|
|
|
|
|
The SC incurred losses in the year. It did not generate sufficient income to service its interest. If the situation does not improve, the SC may be vulnerable to default in servicing the interest. 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 : |
|
|
|
|
|
|
|
The SC's losses increased but its turnover showed a fluctuating trend. This indicate the SC was slowly losing its market share due to its competitors. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. 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 : LIMITED |
||||||
|
Major Economic Indicators: |
2009 |
2010 |
2011 |
2012* |
2013** |
|
|
|
|
|
|
|
|
Population ( Million) |
28.13 |
28.35 |
28.70 |
29.30 |
29.80 |
|
Gross Domestic Products ( % ) |
<0.5> |
7.2 |
5.1 |
5.6 |
5.3 |
|
Domestic Demand ( % ) |
2.9 |
6.3 |
8.2 |
9.4 |
5.6 |
|
Private Expenditure ( % ) |
<2.7> |
8.1 |
8.2 |
8.0 |
7.4 |
|
Consumption ( % ) |
0.7 |
6.7 |
7.1 |
1.0 |
5.7 |
|
Investment ( % ) |
<17.2> |
17.7 |
12.2 |
11.7 |
13.3 |
|
Public Expenditure ( % ) |
5.2 |
3.8 |
8.4 |
13.3 |
1.2 |
|
Consumption ( % ) |
3.1 |
0.2 |
16.1 |
11.3 |
<1.2> |
|
Investment ( % ) |
8.0 |
2.8 |
<0.3> |
15.9 |
4.2 |
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million ) |
89,650 |
118,356 |
116,058 |
106,300 |
110,700 |
|
Government Finance ( MYR Million ) |
<28,450> |
<40,482> |
<45,511> |
<42,297> |
<39,993> |
|
Government Finance to GDP / Fiscal Deficit ( % ) |
<4.8> |
<5.6> |
<5.4> |
<4.5> |
<4.0> |
|
Inflation ( % Change in Composite CPI) |
<5.2> |
5.1 |
3.1 |
1.6 |
2.5 |
|
Unemployment Rate |
4.5 |
3.9 |
3.3 |
3.2 |
3.0 |
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion ) |
331 |
329 |
415 |
427 |
- |
|
Average Risk-Weighted Capital Adequacy Ratio ( % ) |
2.87 |
2.20 |
3.50 |
2.20 |
- |
|
Average 3 Months of Non-performing Loans ( % ) |
11.08 |
15.30 |
14.80 |
14.70 |
- |
|
Average Base Lending Rate ( % ) |
5.53 |
6.30 |
6.60 |
6.53 |
- |
|
Business Loans Disbursed( % ) |
10.5 |
14.7 |
15.3 |
32.2 |
- |
|
Foreign Investment ( MYR Million ) |
22,156.8 |
22,517.9 |
23,546.1 |
26,230.4 |
- |
|
Consumer Loans ( % ) |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
Registration of New Companies ( No. ) |
41,578 |
44,148 |
45,455 |
45,441 |
- |
|
Registration of New Companies ( % ) |
<0.1> |
6.2 |
3.0 |
<0.0> |
- |
|
Liquidation of Companies ( No. ) |
39,075 |
25,585 |
132,476 |
- |
- |
|
Liquidation of Companies ( % ) |
39.6 |
<34.5> |
417.8 |
- |
- |
|
|
|
|
|
|
|
|
Registration of New Business ( No. ) |
312,581 |
271,414 |
284,598 |
324,761 |
- |
|
Registration of New Business ( % ) |
- |
- |
- |
- |
- |
|
Business Dissolved ( No. ) |
19,345 |
19,738 |
20,121 |
- |
- |
|
Business Dissolved ( % ) |
2.4 |
2.0 |
1.9 |
- |
- |
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit ) |
486.3 |
543.6 |
535.1 |
552.2 |
- |
|
Cellular Phone Subscribers ( Million ) |
30.1 |
32.8 |
35.3 |
38.5 |
- |
|
Tourist Arrival ( Million Persons ) |
23.6 |
24.6 |
24.7 |
25.0 |
- |
|
Hotel Occupancy Rate ( % ) |
58.0 |
63.0 |
60.6 |
62.4 |
- |
|
|
|
|
|
|
|
|
Credit Cards Spending ( % ) |
12.8 |
14.1 |
15.6 |
12.6 |
- |
|
Bad Cheque Offenders (No.) |
36,667 |
33,568 |
32,627 |
26,982 |
- |
|
Individual Bankruptcy ( No.) |
16,228 |
18,119 |
19,167 |
19,575 |
- |
|
Individual Bankruptcy ( % ) |
16.7 |
11.7 |
5.8 |
2.1 |
- |
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ): |
2009 |
2010 |
2011 |
2012* |
2013** |
|
|
|
|
|
|
|
|
Agriculture |
0.4 |
2.1 |
5.9 |
0.6 |
2.4 |
|
Palm Oil |
<1.1> |
<3.4> |
10.8 |
<2.8> |
- |
|
Rubber |
<19.8> |
9.9 |
6.1 |
<0.6> |
- |
|
Forestry & Logging |
<5.9> |
<3.3> |
<7.6> |
<2.2> |
- |
|
Fishing |
5.5 |
5.6 |
2.1 |
<0.7> |
- |
|
Other Agriculture |
9.0 |
7.9 |
7.1 |
6.4 |
- |
|
Industry
Non-Performing Loans ( MYR Million ) |
413.7 |
508.4 |
634.1 |
- |
- |
|
% of Industry
Non-Performing Loans |
1.3 |
2.1 |
3.2 |
- |
- |
|
|
|
|
|
|
|
|
Mining |
<3.8> |
0.2 |
<5.7> |
1.5 |
2.7 |
|
Oil & Gas |
2.1 |
0.5 |
<1.7> |
- |
- |
|
Other Mining |
- |
- |
- |
- |
- |
|
Industry Non-performing
Loans ( MYR Million ) |
44.2 |
49.7 |
46.5 |
- |
- |
|
% of Industry
Non-performing Loans |
0.1 |
0.1 |
0.1 |
- |
- |
|
|
|
|
|
|
|
|
Manufacturing # |
<9.4> |
11.4 |
4.7 |
4.2 |
4.9 |
|
Exported-oriented Industries |
<19.0> |
12.1 |
2.8 |
4.1 |
- |
|
Electrical & Electronics |
<30.3> |
28.4 |
<4.9> |
1.6 |
- |
|
Rubber Products |
<10.1> |
25.3 |
15.4 |
3.6 |
- |
|
Wood Products |
<24.1> |
20.1 |
<4.9> |
4.6 |
- |
|
Textiles & Apparel |
<19.5> |
<0.4> |
14.8 |
<7.1> |
- |
|
Domestic-oriented Industries |
<9.8> |
16.3 |
6.5 |
8.6 |
- |
|
Food, Beverages & Tobacco |
0.2 |
3.0 |
4.2 |
- |
- |
|
Chemical & Chemical Products |
<7.7> |
16.2 |
5.5 |
9.9 |
- |
|
Plastic Products |
<9.1> |
2.4 |
3.8 |
- |
- |
|
Iron & Steel |
<32.7> |
29.3 |
2.4 |
- |
- |
|
Fabricated Metal Products |
<2.5> |
14.9 |
25.2 |
- |
- |
|
Non-metallic Mineral |
<15.5> |
20.2 |
27.1 |
6.6 |
- |
|
Transport Equipment |
<13.5> |
36.5 |
<10.4> |
13.7 |
- |
|
Paper & Paper Products |
<5.0> |
18.7 |
14.8 |
<7.8> |
- |
|
Crude Oil Refineries |
0.2 |
<11.4> |
9.3 |
- |
- |
|
Industry
Non-Performing Loans ( MYR Million ) |
6,007.3 |
6,217.5 |
6,537.2 |
- |
- |
|
% of Industry
Non-Performing Loans |
18.3 |
23.8 |
25.7 |
- |
- |
|
|
|
|
|
|
|
|
Construction |
5.8 |
5.1 |
4.4 |
15.5 |
11.2 |
|
Industry Non-Performing Loans ( MYR Million ) |
3,241.8 |
4,038.5 |
3,856.9 |
- |
- |
|
% of Industry
Non-Performing Loans |
9.9 |
10.7 |
10.2 |
- |
- |
|
|
|
|
|
|
|
|
Services |
2.6 |
6.5 |
6.4 |
5.5 |
5.6 |
|
Electric, Gas & Water |
0.4 |
8.5 |
5.6 |
4.8 |
- |
|
Transport, Storage & Communication |
1.6 |
7.7 |
6.5 |
7.3 |
- |
|
Wholesale, Retail, Hotel & Restaurant |
2.8 |
4.7 |
5.2 |
6.9 |
- |
|
Finance, Insurance & Real Estate |
3.8 |
6.1 |
6.3 |
6.5 |
- |
|
Government Services |
2.0 |
6.7 |
7.6 |
5.6 |
- |
|
Other Services |
4.4 |
4.2 |
5.4 |
5.7 |
- |
|
Industry
Non-Performing Loans ( MYR Million ) |
6,631.3 |
7,384.6 |
6,825.2 |
- |
- |
|
% of Industry
Non-Performing Loans |
20.2 |
25.7 |
23.4 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary |
|
|
|
|
|
|
** Forecast |
|
|
|
|
|
|
# Based On Manufacturing Production Index |
|||||
|
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 in the 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. Malaysia currently accounts for 39 % of world palm oil production and 44% of world exports. Taken into account of other oils & fats produced in the country, Malaysia accounts for 12% and 27% of the world's total production and exports of oils and fats. Being one of the biggest producers and exporters of palm oil and palm oil products, Malaysia has an important role to play in fulfilling the growing global need for oils and fats sustainably. |
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|
In year 2013, the production of crude palm oil is envisaged to rebound 2.5% to 18.9 million tonnes on account of expanded matured areas to 4.44 million hectares. However Malaysian palm oil's supply and demand for February 2013 with palm oil stocks continued to be lower for the consecutive two months at 2.444 million tonnes, a decrease of 5.23% from January 2013 and was slightly above the average estimation at 2.42 million tonnes. The exports in February 2013 fell 13.98% to 1.398 million tonnes while the palm oil production reduced 19.15% to 1.296 million tonnes. The palm oil production would be expected to be in dismal as the oil palm had entered a low yield cycle currently. |
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|
According to the 2013 Budget, the palm oil sector contracted 8.6% during the first half of the year 2012 due to the less favourable weather conditions and natural production down cycle that constrained the output of fresh fruit bunches. However, the yield is expected to improve in the later part of the year, with the subsector registering a smaller contraction of 2.8% in 2012. Total planted areas of oil palm increased substantially by 77,106 hectares to five million hectares as at end-June 2012. Of the total planted areas, 28.4% or 1.5 million hectares are located in Sabah. With the acceleration of planting activity, total planted areas are expected to increase to 5.1 million hectares in 2012. |
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|
According to the Performance Management and Delivery Unit (Pemandu), the Palm Oil National Key Economic Area (NKEA), Malaysia's most important commodity is expected to contribute from RM125 billion to RM178 billion to the Gross National Income (GNI) and create about 41,600 jobs by 2020, with the government's focus on eight Entry Point Projects (EPPs). As part of the government's efforts to accelerate the country's replanting and new planting programme and manage stock levels, the government has allocated an additional RM432 million as funds for independent smallholders' replanting and new planting initiatives in 2013. According to Pemandu, the government will also accelerate the replanting of oil palm by plantations and smallholders as well as new planting by independent smallholders to 130,000 ha. and raise the area complying with best practices by an additional 200,000 ha. in 2013. |
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|
However, the future performance of the industry is unpredictable as with many factors that can give impact to the industry is still unknown. Nationally, the sentiments seem positive, internationally there are mixed signals but with the current growth rate, an expected increase in demand, a recovering global economy, analysts and industry sources are reckoning that the bull may be able to hold the bear back. |
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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. |
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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. |
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OVERALL INDUSTRY OUTLOOK : Mature |
|
Incorporated in 2006, the SC is a Private Limited company, focusing on trading and
marketing of edible oil. Having been in business for 7 years, the SC has
established a remarkable clientele base for itself which has contributed to its
business growth. Having strong support from its holding company has enabled the
SC to remain competitive despite the challenging business environment. The
capital standing of the SC is fair. With an adequate share capital, the SC has
the potential of expanding its business in future.
Over the years, the SC has penetrated into both the local and overseas market.
The SC has positioned itself in the global market and is competing in the
industry. Its stable clientele base will enable the SC to further enhance its
business in the near term. To date, the SC's business operation is supported by
30 employees. Overall, we regard that the SC's management capability is
average.
Despite the higher turnover, the SC suffered pre-tax losses which reflected a
highly competitive business environment. 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 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.
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. Given a
positive net worth standing at MYR 43,876,332, 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. We noted that the SC's supplies are solely sourced from local
market. Being highly dependent on a limited number of suppliers could lead to
delays, lost of revenue and increased costs if such resources become
unavailable or shortage.
The SC's payment habit is average. With its adequate working capital, the SC
should be able to pay its short term debts.
The industry has reached its optimum level and is generally stable. It is
saturated and very competitive. Thus, the SC's growth prospect is very much
depends on its capacity in sustaining its performance in the market.
Based on the above condition, we recommend credit be granted to the SC
normally.
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE
WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS) |
|
PGEO MARKETING 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 |
SUMMARY |
|
Currency |
MYR |
MYR |
MYR |
MYR |
MYR |
|
|
|
|
|
|
|
|
TURNOVER |
4,358,730,647 |
2,636,764,253 |
2,674,642,783 |
2,645,335,695 |
5,752,350,010 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
Total Turnover |
4,358,730,647 |
2,636,764,253 |
2,674,642,783 |
2,645,335,695 |
5,752,350,010 |
|
Costs of Goods Sold |
<4,406,902,768> |
<2,601,379,966> |
- |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
Gross Profit |
<48,172,121> |
35,384,287 |
- |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS |
<34,271,744> |
148,137,537 |
117,992,412 |
<86,175,338> |
10,238,858 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT/(LOSS) BEFORE TAXATION |
<34,271,744> |
148,137,537 |
117,992,412 |
<86,175,338> |
10,238,858 |
|
Taxation |
10,650,261 |
<36,832,157> |
<29,592,696> |
18,674,093 |
<411,046> |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT/(LOSS) AFTER TAXATION |
<23,621,483> |
111,305,380 |
88,399,716 |
<67,501,245> |
9,827,812 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD |
|
|
|
|
|
|
As previously reported |
95,497,815 |
34,859,985 |
<53,539,731> |
13,961,514 |
4,133,702 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
As restated |
95,497,815 |
34,859,985 |
<53,539,731> |
13,961,514 |
4,133,702 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
71,876,332 |
146,165,365 |
34,859,985 |
<53,539,731> |
13,961,514 |
|
DIVIDENDS - Ordinary (paid & proposed) |
<30,000,000> |
<50,667,550> |
- |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
41,876,332 |
95,497,815 |
34,859,985 |
<53,539,731> |
13,961,514 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L) |
|
|
|
|
|
|
Loan from holding company |
- |
10,417 |
- |
- |
- |
|
Others |
2,136,566 |
574,661 |
875,008 |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
|
|
|
|
2,136,566 |
585,078 |
875,008 |
|
|
|
PGEO MARKETING SDN. BHD. |
|
ASSETS EMPLOYED: |
|
|
|
|
|
|
FIXED ASSETS |
514,906 |
486,689 |
597,534 |
580,813 |
838,608 |
|
LONG TERM INVESTMENTS/OTHER ASSETS |
|
|
|
|
|
|
Deferred assets |
4,853,000 |
- |
2,131,150 |
31,712,281 |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS |
4,853,000 |
- |
2,131,150 |
31,712,281 |
0 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL LONG TERM ASSETS |
5,367,906 |
486,689 |
2,728,684 |
32,293,094 |
838,608 |
|
CURRENT ASSETS |
|
|
|
|
|
|
Stocks |
34,979,189 |
14,887,227 |
1,332,724 |
17,540,319 |
- |
|
Trade debtors |
373,404,347 |
315,511,774 |
179,986,474 |
249,457,278 |
- |
|
Other debtors, deposits & prepayments |
2,593,128 |
60,932,918 |
753,074 |
18,322,774 |
- |
|
Cash & bank balances |
127,084 |
1,619,286 |
626,065 |
932,054 |
- |
|
Others |
27,308,298 |
35,644,873 |
34,802,963 |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL CURRENT ASSETS |
438,412,046 |
428,596,078 |
217,501,300 |
286,252,425 |
346,335,231 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL ASSET |
443,779,952 |
429,082,767 |
220,229,984 |
318,545,519 |
347,173,839 |
|
|
============= |
============= |
============= |
============= |
============= |
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Trade creditors |
360,484,820 |
168,066,848 |
170,606,531 |
231,633,277 |
- |
|
Other creditors & accruals |
7,700,673 |
3,184,516 |
12,763,468 |
1,879,651 |
- |
|
Other borrowings |
11,730,884 |
152,393,903 |
- |
130,681,089 |
- |
|
Provision for taxation |
- |
- |
- |
5,891,233 |
- |
|
Other liabilities |
19,987,243 |
- |
- |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL CURRENT LIABILITIES |
399,903,620 |
323,645,267 |
183,369,999 |
370,085,250 |
0 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
NET CURRENT ASSETS/(LIABILITIES) |
38,508,426 |
104,950,811 |
34,131,301 |
<83,832,825> |
346,335,231 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL NET ASSETS |
43,876,332 |
105,437,500 |
36,859,985 |
<51,539,731> |
347,173,839 |
|
|
============= |
============= |
============= |
============= |
============= |
|
SHARE CAPITAL |
|
|
|
|
|
|
Ordinary share capital |
2,000,000 |
2,000,000 |
2,000,000 |
2,000,000 |
2,000,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL SHARE CAPITAL |
2,000,000 |
2,000,000 |
2,000,000 |
2,000,000 |
2,000,000 |
|
RESERVES |
|
|
|
|
|
|
Retained profit/(loss) carried forward |
41,876,332 |
95,497,815 |
34,859,985 |
<53,539,731> |
13,961,514 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL RESERVES |
41,876,332 |
95,497,815 |
34,859,985 |
<53,539,731> |
13,961,514 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
SHAREHOLDERS' FUNDS/EQUITY |
43,876,332 |
97,497,815 |
36,859,985 |
<51,539,731> |
15,961,514 |
|
LONG TERM LIABILITIES |
|
|
|
|
|
|
Deferred taxation |
- |
7,939,685 |
- |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL LONG TERM LIABILITIES |
- |
7,939,685 |
- |
- |
331,212,325 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
43,876,332 |
105,437,500 |
36,859,985 |
<51,539,731> |
347,173,839 |
|
|
============= |
============= |
============= |
============= |
============= |
|
PGEO MARKETING SDN. BHD. |
|
TYPES OF FUNDS |
|
|
|
|
|
|
Cash |
127,084 |
1,619,286 |
626,065 |
932,054 |
- |
|
Net Liquid Funds |
127,084 |
1,619,286 |
626,065 |
932,054 |
- |
|
Net Liquid Assets |
3,529,237 |
90,063,584 |
32,798,577 |
<101,373,144> |
346,335,231 |
|
Net Current Assets/(Liabilities) |
38,508,426 |
104,950,811 |
34,131,301 |
<83,832,825> |
346,335,231 |
|
Net Tangible Assets |
43,876,332 |
105,437,500 |
36,859,985 |
<51,539,731> |
347,173,839 |
|
Net Monetary Assets |
3,529,237 |
82,123,899 |
32,798,577 |
<101,373,144> |
15,122,906 |
|
BALANCE SHEET ITEMS |
|
|
|
|
|
|
Total Borrowings |
11,730,884 |
152,393,903 |
0 |
130,681,089 |
- |
|
Total Liabilities |
399,903,620 |
331,584,952 |
183,369,999 |
370,085,250 |
331,212,325 |
|
Total Assets |
443,779,952 |
429,082,767 |
220,229,984 |
318,545,519 |
347,173,839 |
|
Net Assets |
43,876,332 |
105,437,500 |
36,859,985 |
<51,539,731> |
347,173,839 |
|
Net Assets Backing |
43,876,332 |
97,497,815 |
36,859,985 |
<51,539,731> |
15,961,514 |
|
Shareholders' Funds |
43,876,332 |
97,497,815 |
36,859,985 |
<51,539,731> |
15,961,514 |
|
Total Share Capital |
2,000,000 |
2,000,000 |
2,000,000 |
2,000,000 |
2,000,000 |
|
Total Reserves |
41,876,332 |
95,497,815 |
34,859,985 |
<53,539,731> |
13,961,514 |
|
LIQUIDITY (Times) |
|
|
|
|
|
|
Cash Ratio |
0.00 |
0.01 |
0.00 |
0.00 |
- |
|
Liquid Ratio |
1.01 |
1.28 |
1.18 |
0.73 |
- |
|
Current Ratio |
1.10 |
1.32 |
1.19 |
0.77 |
- |
|
WORKING CAPITAL CONTROL (Days) |
|
|
|
|
|
|
Stock Ratio |
3 |
2 |
0 |
2 |
- |
|
Debtors Ratio |
31 |
44 |
25 |
34 |
- |
|
Creditors Ratio |
30 |
24 |
23 |
32 |
- |
|
SOLVENCY RATIOS (Times) |
|
|
|
|
|
|
Gearing Ratio |
0.27 |
1.56 |
0.00 |
<2.54> |
- |
|
Liabilities Ratio |
9.11 |
3.40 |
4.97 |
<7.18> |
20.75 |
|
Times Interest Earned Ratio |
<15.04> |
254.19 |
135.85 |
0.00 |
- |
|
Assets Backing Ratio |
21.94 |
52.72 |
18.43 |
<25.77> |
173.59 |
|
PERFORMANCE RATIO (%) |
|
|
|
|
|
|
Operating Profit Margin |
<0.79> |
5.62 |
4.41 |
<3.26> |
0.18 |
|
Net Profit Margin |
<0.54> |
4.22 |
3.31 |
<2.55> |
0.17 |
|
Return On Net Assets |
<73.24> |
141.05 |
322.48 |
167.20 |
2.95 |
|
Return On Capital Employed |
<73.24> |
141.05 |
322.48 |
167.20 |
2.95 |
|
Return On Shareholders' Funds/Equity |
<53.84> |
114.16 |
239.83 |
130.97 |
61.57 |
|
Dividend Pay Out Ratio (Times) |
1.27 |
0.46 |
0.00 |
0.00 |
- |
|
NOTES TO ACCOUNTS |
|
|
|
|
|
|
Contingent Liabilities |
0 |
0 |
0 |
0 |
|
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.64 |
|
|
1 |
Rs.86.68 |
|
Euro |
1 |
Rs.73.97 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.