MIRA INFORM REPORT

 

 

Report Date :

08.06.2013

 

IDENTIFICATION DETAILS

 

Name :

NUTRA LIPIDS (M) SDN. BHD.

 

 

Registered Office :

49a, Jalan Usj 10/1f, Taipan Triangle, Uep Subang Jaya, 47620 Subang Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

07.07.2008

 

 

Com. Reg. No.:

824345-K

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Dealing In Oil and Fat

 

 

No. of Employees :

Not Available

 

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 – 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


 


* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

824345-K

COMPANY NAME

:

NUTRA LIPIDS (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/07/2008

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

49A, JALAN USJ 10/1F, TAIPAN TRIANGLE, UEP SUBANG JAYA, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

2A, JALAN USJ 4/6B, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-80233722

FAX.NO.

:

03-80238622

CONTACT PERSON

:

LIEW YOU CHEONG ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

46202

PRINCIPAL ACTIVITY

:

DEALING IN OIL AND FAT

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 800,000.00 DIVIDED INTO
ORDINARY SHARES 800,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 55,930,460 [2011]

NET WORTH

:

MYR 1,908,765 [2011]

 

 

 

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MATURE

 

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) dealing in oil and fat.

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. LIEW YOU CHEONG +

NO. 22, USJ 3/2B, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

770201-01-5147

320,000.00

40.00

MR. RAVINAN A/L PADMANABHAN +

33 USJ 11/1A, 47620 SUBANG JAYA, MALAYSIA.

630806-05-5577

240,000.00

30.00

MR. LIEW HUEY SHENG +

NO. P.319,, KELAPA SAWIT, 81030 KULAI, JOHOR, MALAYSIA.

780225-01-6557

240,000.00

30.00

 

 

 

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

------

 

 

 

800,000.00

100.00

 

 

 

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

=====

+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. RAVINAN A/L PADMANABHAN

Address

:

33 USJ 11/1A, 47620 SUBANG JAYA, MALAYSIA.

 

 

 

New IC No

:

630806-05-5577

Date of Birth

:

06/08/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

07/07/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. LIEW HUEY SHENG

Address

:

NO. P.319,, KELAPA SAWIT, 81030 KULAI, JOHOR, MALAYSIA.

 

 

 

New IC No

:

780225-01-6557

Date of Birth

:

25/02/1978

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

12/06/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. LIEW YOU CHEONG

Address

:

NO. 22, USJ 3/2B, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

770201-01-5147

Date of Birth

:

01/02/1977

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

07/07/2008

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

LIEW YOU CHEONG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

LIEW HUEY SHENG

 

Position

:

DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

P.S.YAP & ASSOCIATES

Auditor' Address

:

NO. 89, JALAN 1/91, TAMAN SHAMELIN PERKASA, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. POH KWEE LAN

 

 

 

 

 

New IC No

:

640616-05-5698

 

Address

:

27 JALAN PUTRA BAHAGIA 8/3G, PUTRA HEIGHTS, 47650 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. LIM MING SURE

 

 

 

 

 

New IC No

:

640604-01-6130

 

Address

:

69 JALAN USJ 11/4L, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


No Banker found in our databank.

ENCUMBRANCE (S)



ENCUMBRANCE 1

Date of Creation

:

11/01/2012

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

 

 

 

 

 

Form 40 Dated 17/01/2012

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

16/08/2012

Description Of Charge

:

N/A

 

Amount Secured

:

MYR540,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

Form 40 Dated 14/09/2012

Registered and Numbered 2 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

16/08/2012

Description Of Charge

:

N/A

 

Amount Secured

:

MYR440,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

Form 40 Dated 14/09/2012

Registered and Numbered 3 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

12/12/2012

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

Form 40 Dated 19/12/2012

Registered and Numbered 4 In The Register of Charges

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A

 

 

 


The SC refused to disclose its supplier.

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

OIL AND FAT

 

 

 

 

 

Total Number of Employees:

 

YEAR

2011

2010

2009

2008

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

3

3

3

3

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) dealing in oil and fat.

The SC refused to further disclose its business operation.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

03 80233722

Current Telephone Number

:

03-80233722

Match

:

YES

 

 

 

Address Provided by Client

:

2A JALAN USJ 4/6B, SUBANG JAYA 47600 PETALING JAYA SELANGOR

Current Address

:

2A, JALAN USJ 4/6B, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

 

We contacted the staff of SC from Shipping Department and she provide us some information on SC.

The address provided is incorrect.

The SC refused to disclose its number of employees and banker.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Favourable

[

46.79%

]

 

Return on Net Assets

:

Favourable

[

37.76%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Acceptable

[

1.10 Times

]

 

 

 

 

 

 

 

 

The SC has an adequate liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

4.10 Times

]

 

 

 

 

 

 

 

 

The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the SC : FAIR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

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
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

 

 

 

 

 

INDUSTRY ANALYSIS

MSIC CODE

46202 : Wholesale of palm oil

 

 

INDUSTRY :

PALM OIL

 

 

 

Oil palm is one of the main drivers of Malaysia's agriculture sector where it has accounting for 71% of its agricultural land bank. Malaysia is the one of the biggest producers and exporters of palm oil prodcuts 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.

 

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.

 

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.

 

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.

 

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.

 

Under the palm oil National Key Economic Areas (NKEAs) in 2011, the launches of the Oil Palm Replanting and New Planting Smallholders Schemes ware improved the smallholders agricultural practices in 2012.The oil extraction rate is set to improve to 21.05% in three-year from 2012 to low of 19.70% as 1.35 more.

 

In driving speedier harvesting of oil palm fruits, the government has introduced the RM1,000 discount scheme to encourage the use of motorised sickle called Cantas and diamond blade sharpeners to enhance the palm oil industry. MPOB appointed 100 enforcement officers to visit mills to ensure the only good quality crops are processed. Since 2007, the palm oil industry has grown at an average of 14.5 per cent annualy until 2012. If the momentum is maitained for next 5 to 8 years, malaysia will achive its target of two million of hecters palm oil.

 

 

OVERALL INDUSTRY OUTLOOK : Mature

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2008, the SC is a Private Limited company, focusing on dealing in oil and fat. Having been in the industry for 5 years, the SC has started to stabilise its business position in the market. Presently, issued and paid up capital of the SC stand at MYR 800,00 which contributed by 3 individual shareholders, the SC may face difficulties in its attempt to further expand its business in the future.

Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 1,908,765, the SC should be able to maintain its business in the near terms.

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.

The 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.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

NUTRA LIPIDS (M) SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

Months

12

12

12

6

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

SUMMARY

SUMMARY

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

55,930,460

17,412,811

2,542,000

426,279

 

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

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

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

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

Total Turnover

55,930,460

17,412,811

2,542,000

426,279

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

1,130,996

681,923

<4,032>

<12,191>

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,130,996

681,923

<4,032>

<12,191>

Taxation

<237,931>

<150,000>

-

-

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

893,065

531,923

<4,032>

<12,191>

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

515,700

<16,223>

<12,191>

-

 

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

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

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

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

As restated

515,700

<16,223>

<12,191>

-

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,408,765

515,700

<16,223>

<12,191>

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,408,765

515,700

<16,223>

<12,191>

 

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

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

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

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

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

NUTRA LIPIDS (M) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

2,292,840

681,518

70,392

-

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

2,292,840

681,518

70,392

-

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Cash & bank balances

-

-

318,226

3,267

 

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

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

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

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

TOTAL CURRENT ASSETS

7,440,318

2,917,109

318,226

3,267

 

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

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

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

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

TOTAL ASSET

9,733,158

3,598,627

388,618

3,267

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

-

-

84,547

-

Other creditors & accruals

-

-

210,294

5,455

 

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

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

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

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

TOTAL CURRENT LIABILITIES

6,738,263

2,812,927

294,841

5,455

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

702,055

104,182

23,385

<2,188>

 

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

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

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

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

TOTAL NET ASSETS

2,994,895

785,700

93,777

<2,188>

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

500,000

200,000

100,000

3

 

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

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

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

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

TOTAL SHARE CAPITAL

500,000

200,000

100,000

3

 

 

 

 

 

RESERVES

 

 

 

 

Retained profit/(loss) carried forward

1,408,765

515,700

<16,223>

<12,191>

 

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

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

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

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

TOTAL RESERVES

1,408,765

515,700

<16,223>

<12,191>

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,908,765

715,700

83,777

<12,188>

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Others

-

-

10,000

10,000

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,086,130

70,000

10,000

10,000

 

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

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

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

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

 

2,994,895

785,700

93,777

<2,188>

 

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

NUTRA LIPIDS (M) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

Cash

-

-

318,226

3,267

Net Liquid Funds

-

-

318,226

3,267

Net Liquid Assets

702,055

104,182

23,385

<2,188>

Net Current Assets/(Liabilities)

702,055

104,182

23,385

<2,188>

Net Tangible Assets

2,994,895

785,700

93,777

<2,188>

Net Monetary Assets

<384,075>

34,182

13,385

<12,188>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

-

-

0

0

Total Liabilities

7,824,393

2,882,927

304,841

15,455

Total Assets

9,733,158

3,598,627

388,618

3,267

Net Assets

2,994,895

785,700

93,777

<2,188>

Net Assets Backing

1,908,765

715,700

83,777

<12,188>

Shareholders' Funds

1,908,765

715,700

83,777

<12,188>

Total Share Capital

500,000

200,000

100,000

3

Total Reserves

1,408,765

515,700

<16,223>

<12,191>

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

-

-

1.08

0.60

Liquid Ratio

-

-

1.08

0.60

Current Ratio

1.10

1.04

1.08

0.60

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

-

-

0

0

Debtors Ratio

-

-

0

0

Creditors Ratio

-

-

12

0

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

-

-

0.00

0.00

Liabilities Ratio

4.10

4.03

3.64

<1.27>

Times Interest Earned Ratio

-

-

0.00

0.00

Assets Backing Ratio

5.99

3.93

0.94

<729.33>

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

2.02

3.92

<0.16>

<2.86>

Net Profit Margin

1.60

3.05

<0.16>

<2.86>

Return On Net Assets

37.76

86.79

<4.30>

557.18

Return On Capital Employed

37.76

86.79

<4.30>

557.18

Return On Shareholders' Funds/Equity

46.79

74.32

<4.81>

100.02

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.56.74

UK Pound

1

Rs.88.53

Euro

1

Rs.75.20

 

 

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.