MIRA INFORM REPORT

 

 

Report Date :

20.06.2013

 

IDENTIFICATION DETAILS

 

Name :

FELDA IFFCO SDN. BHD.

 

 

Registered Office :

Level 42, Menara Felda, Platinum Park, 11, Persiaran Klcc, 50088 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

13.12.2006

 

 

Com. Reg. No.:

756204-H

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Subject principally engaged in the (as a / as an) palm oil based products and palm kernel based products and investment holding.

 

 

No. of Employees :

320

 

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

 


EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

756204-H

COMPANY NAME

:

FELDA IFFCO SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

13/12/2006

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LEVEL 42, MENARA FELDA, PLATINUM PARK, 11, PERSIARAN KLCC, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 596, LEBUH RAJA LUMU, PANDAMARAN INDUSTRIAL ESTATE, 42009 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31687601

FAX.NO.

:

03-31671980

WEB SITE

:

WWW.FELDAIFFCO.COM

CONTACT PERSON

:

RAS MANIKKAM ( REGIONAL MANAGING DIRECTOR )

INDUSTRY CODE

:

10402 64200

PRINCIPAL ACTIVITY

:

PALM OIL BASED PRODUCTS AND PALM KERNEL BASED PRODUCTS AND INVESTMENT HOLDING

AUTHORISED CAPITAL

:

MYR 500,000,000.00 DIVIDED INTO
ORDINARY SHARE 500,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 395,287,500.00 DIVIDED INTO
ORDINARY SHARES 395,287,500 CASH OF MYR 1.00 EACH.

SALES

:

MYR 3,304,784,415 [2010]

NET WORTH

:

MYR 327,402,678 [2010]

M1000 OVERALL RANKING

:

340[2011]

M1000 INDUSTRY RANKING

:

14[2011]

STAFF STRENGTH

:

320 [2013]

BANKER (S)

 

RHB ISLAMIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

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) palm oil based products and palm kernel based products and investment holding.

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

340

 

 

INDUSTRY RANKING

14

 

 

 

The major shareholder(s) of the SC are shown as follows :

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

FELDA GLOBAL VENTURES HOLDINGS BERHAD

BALAI FELDA, JALAN GURNEY SATU, LEVEL 3 , 54000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

800165

158,660,000.00

40.14

IFFCO OIL HOLDINGS LIMITED

4TH FLOOR, LES CASCADES, ST. PORT LOUIS, MAURITIUS, MAURITIUS.

XLZ00210271

111,987,302.00

28.33

MIDDLE EAST OILS AND GRAINS FREE ZONE COMPANY

PLOT 1A-01, HAMRIYAH FREE ZONE, PO BOX 51835 SHARJAH, UNITED ARAB EMIRATES.

XLZ00218749

85,656,448.00

21.67

FELDA GLOBAL VENTURES DOWNSTREAM SDN. BHD.

LEVEL 3, BALAI FELDA, JALAN GURNEY 1, 54000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

974151

38,983,750.00

9.86

 

 

 

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

------

 

 

 

395,287,500.00

100.00

 

 

 

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

=====

+ Also Director

 

The SC interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Country

Company

(%)

As At

852497

MALAYSIA

IFFCO POULTRY CO. SDN. BHD.

100.00

29/03/2013

920555

MALAYSIA

FELDA IFFCO TRADING SDN. BHD.

100.00

29/03/2013

24499

MALAYSIA

FELDA IFFCO OIL PRODUCTS SDN. BHD.

74.90

29/03/2013

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MUHAMED CATIC

Address

:

MEADOW 5, STREET 2, VILLA 51, DUBAI, UNITED ARAB EMIRATES.

IC / PP No

:

214782389

Nationality

:

EMIRATI

Date of Appointment

:

04/05/2011

 

DIRECTOR 2

 

Name Of Subject

:

MR. SYED RIZWAN AHMED

Address

:

VILLA NO.1, PLOT NO.14, AL FISHT AREA, SHARQ STREET, SHARJAH, UNITED ARAB EMIRATES.

IC / PP No

:

BD1158061

Nationality

:

PAKISTANI

Date of Appointment

:

08/01/2007

 

DIRECTOR 3

 

Name Of Subject

:

SHIRAZ ABDUL RAZAK ALLANA

Address

:

ALLANA HOUSE, ALLANA ROAD COLABA, MUMBAI-400 001 M S, INDIA.

IC / PP No

:

Z1880102

Nationality

:

INDIAN

Date of Appointment

:

12/01/2010

 

DIRECTOR 4

 

Name Of Subject

:

MR. J. RASAMY A/L MANIKKAM

Address

:

77 KAMPUNG SERDANG, 32000 SITIAWAN, PERAK, MALAYSIA.

New IC No

:

570616-08-5271

Date of Birth

:

16/06/1957

Nationality

:

MALAYSIAN

Date of Appointment

:

12/01/2010

 

DIRECTOR 5

 

Name Of Subject

:

KETAN MOTILAL DOSHI

Address

:

FLAT NO. 1802, AL SHAHD TOWER, QANAT AL QASBA SHARJAH, UNITED ARAB EMIRATES.

IC / PP No

:

Z1919268

Nationality

:

EMIRATI

Date of Appointment

:

20/04/2010

 

DIRECTOR 6

 

Name Of Subject

:

ARUN AGARWALA

Address

:

APT 301, BHUKATIR TOWER, BUHAIRAH CORNICHE SHARJAH, UNITED ARAB EMIRATES.

IC / PP No

:

Z1805968

Nationality

:

MALAYSIAN

Date of Appointment

:

04/05/2011

 

DIRECTOR 7

 

Name Of Subject

:

DATO' AZLIN BIN ALIAS

Address

:

LOT 256, PERSIARAN IMPIAN GEMILANG, SAUJANA IMPIAN, 43000 KAJANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

671012-10-5297

Date of Birth

:

12/10/1967

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

18/11/2010

 

DIRECTOR 8

 

Name Of Subject

:

MR. EHSAN BIN BAHAUDDIN

Address

:

NO. 71, JALAN MAMANDA, 12, TAMAN DATO AHMAD RAZALI, 68000 AMPANG, SELANGOR, MALAYSIA.

New IC No

:

551124-10-5877

Date of Birth

:

24/11/1955

Nationality

:

MALAYSIAN

Date of Appointment

:

08/01/2007

 

DIRECTOR 9

 

Name Of Subject

:

TIRUMANGALAM KUPPUSWAMY GOWRISHANKAR

Address

:

NO.16 IV STREET, GOPALAPURAM, CHENNAI, INDIA.

IC / PP No

:

Z090155

Nationality

:

INDIAN

Date of Appointment

:

08/01/2007

 

DIRECTOR 10

 

Name Of Subject

:

MR. RAMLI BIN PUTIH

Address

:

NO.35 JALAN DAHLIA 1, NILAI IMPIAN, 71800 NILAI, NEGERI SEMBILAN, MALAYSIA.

New IC No

:

530916-02-5231

Date of Birth

:

16/09/1953

Nationality

:

MALAYSIAN

Date of Appointment

:

13/12/2006

 

DIRECTOR 11

 

Name Of Subject

:

DATO' SABRI BIN AHMAD

Address

:

108, JALAN ATHINAHAPAN DUA, TAMAN TUN DR. ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

470520-08-5519

Date of Birth

:

20/05/1947

Nationality

:

MALAYSIAN

Date of Appointment

:

12/01/2010

 

DIRECTOR 12

 

Name Of Subject

:

MR. DZULKIFLI BIN ABD WAHAB

Address

:

NO. 8, JALAN AU 5C/2, LEMBAH KERAMAT, HULU KELANG, 54200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

550428-05-5333

Date of Birth

:

28/04/1955

Nationality

:

MALAYSIAN

Date of Appointment

:

12/01/2010



MANAGEMENT

 

 

 

1)

Name of Subject

:

RAS MANIKKAM

 

Position

:

REGIONAL MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

KEVIN WONG TACK WEE

 

Position

:

REGIONAL FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

MICHAEL TAN

 

Position

:

MARKETING MANAGER

 

 

 

 

 

4)

Name of Subject

:

ABDUL JALIL GHAZALI

 

Position

:

HEAD OF HUMAN RESOURCE

 

 

 

 

 

5)

Name of Subject

:

HASHIM BIN ALI

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

6)

Name of Subject

:

YAP SOON LEONG

 

Position

:

CHIEF OPERATING OFFICER

 

 

 

 

 

7)

Name of Subject

:

PADMA

 

Position

:

PERSONAL ASSISTANT

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR CENTRAL, P O BOX 10192, LEVEL 15, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ABDUL AZIZ @ MAZATUL AISHAH BINTI AZIZ

 

 

 

 

 

New IC No

:

701207-05-5108

 

Address

:

NO.14,LORONG AU3/12C, TAMAN KERAMAT, 53200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

2)

Company Secretary

:

MS. NORZAIMAH BINTI MAAROF

 

New IC No

:

691230-05-5388

 

Address

:

A16A03A, ARMANEE TERRACE CONDOMINIUM, DAMANSARA PERDANA, 47820 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

RHB ISLAMIC BANK BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

03/12/2009

CHARGE

RHB ISLAMIC BANK BERHAD

MYR 230,000,000.00

Unsatisfied

 

 

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

Percentage

:

60%

Overseas

:

YES

Percentage

:

40%

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

UNITED STATES

EUROPE

ASIA

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

PALM OIL BASED PRODUCTS AND PALM KERNEL BASED PRODUCTS

 

 

 

Services

:

INVESTMENT HOLDING

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

320

320

318

345

200

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) palm oil based products and palm kernel based products and investment holding.


The SC is a leading palm oil producer in Malaysia, having total refining capacity of more than 1. 5 billion tonnes per annum.


It is engaged in the refining, processing and marketing of palm and palm kernel oil based products for retail and industrial use. It has integrated facilities for refining, fractionating, hardening including inter-esterification to produce a complete range of cooking oil, ghee, shortenings, margarines, specialty oils and fats.

The SC operates four refineries and two palm oil products manufacturing plants.



PROJECTS


No projects found in our databank



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

+603 3168 7601 02 05

Current Telephone Number

:

03-31687601

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 596 LEBUH RAJA LUMU PANDAMARAN INDS. ESTATE P.O.BOX 204,42009 PORT KALANG,

Current Address

:

LOT 596, LEBUH RAJA LUMU, PANDAMARAN INDUSTRIAL ESTATE, 42009 PELABUHAN KLANG, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

NO

 

Other Investigations


On 19th June 2013 we contacted one of the staff from the SC and she provided some information on the SC.

The address provided belongs to the SC's PO Box address.



FINANCIAL ANALYSIS

 

 

The SC's latest financial accounts are up to 2010 which is out dated in our opinion. Therefore, our comment on the SC financial performance is restricted thereto.

Overall financial condition of the SC : N/A

 

 

 

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

10402 : Manufacture of refined palm oil

64200 : Activities of investment holding companies

 

 

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 2006, the SC is a Private Limited company, focusing on palm oil based products and palm kernel based products and investment holding. Having been in business for 7 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. The SC is well backed by a listed company shareholders which would stimulate further growth for the SC. Hence, the potential growth of the SC is positive. The SC is a large entity with strong capital position. We are confident with the SC's business and its future growth prospect.


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. The SC is a fairly large and rapidly growing company with over 320 staff in its operations Overall, we regard that the SC's management capability is average.


No latest financial accounts were filed with the Registry office during our inspection. Therefore, our comment on the SC's overall financial performance are restricted thereto.


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.


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.

In view of the above, we recommend credit be granted to the SC with close monitoring.



 

PROFIT AND LOSS ACCOUNT

 

 

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

FELDA IFFCO SDN. BHD.

 

Financial Year End

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

Consolidated Account

GROUP

GROUP

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

SUMMARY

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

3,304,784,415

1,186,543,848

1,360,280,000

664,068,687

 

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

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

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

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

Total Turnover

3,304,784,415

1,186,543,848

1,360,280,000

664,068,687

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

<50,712,843>

27,774,169

25,400,579

9,691,703

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

<50,712,843>

27,774,169

25,400,579

9,691,703

Taxation

146,346

8,148,863

<5,131,847>

<2,508,433>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

<50,566,497>

35,923,032

20,268,732

7,183,270

Minority interests

1,195,076

88,877

-

-

 

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

<49,371,421>

36,011,909

20,268,732

7,183,270

Extraordinary items

<93,631>

-

-

-

 

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

<49,465,052>

36,011,909

20,268,732

7,183,270

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

59,605,465

25,343,556

7,183,270

-

Prior year adjustment

<883,023>

-

-

-

 

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

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

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

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

As restated

58,722,442

25,343,556

7,183,270

-

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

9,257,390

61,355,465

27,452,002

7,183,270

DIVIDENDS - Ordinary (paid & proposed)

-

<1,750,000>

<2,108,446>

-

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

9,257,390

59,605,465

25,343,556

7,183,270

 

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Bank overdraft

8,610,808

3,760,964

-

-

Term loan / Borrowing

20,529,340

1,097,452

-

-

Others

1,303,506

702,335

769,387

-

 

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

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

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

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

 

30,443,654

5,560,751

769,387

-

 

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

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

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

 

 

 

 

BALANCE SHEET

 

 

FELDA IFFCO SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

516,452,824

423,700,419

75,924,612

30,473,589

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Investments

-

218,427,424

-

-

Investment securities

133,760

-

-

-

Deferred assets

9,198,976

7,560,340

-

-

Others

75,787,680

30,305,694

-

-

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

85,120,416

256,293,458

-

12,049,545

INTANGIBLE ASSETS

 

 

 

 

Goodwill on consolidation

850,912

916,331

-

-

 

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

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

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

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

TOTAL INTANGIBLE ASSETS

850,912

916,331

-

-

 

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

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

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

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

TOTAL LONG TERM ASSETS

602,424,152

680,910,208

75,924,612

42,523,134

CURRENT ASSETS

 

 

 

 

Stocks

274,111,815

206,228,157

21,043,139

-

Trade debtors

357,695,851

121,786,117

180,073,731

-

Other debtors, deposits & prepayments

15,355,400

32,855,039

10,462,600

-

Short term deposits

-

-

58,000,000

-

Trading account securities

238,812,839

-

-

-

Deposits with financial institutions

50,025,446

9,261,996

-

-

Amount due from related companies

70,021,554

5,623,447

24,594,977

-

Cash & bank balances

72,505,880

62,489,933

5,313,806

-

Others

13,556,456

3,544,951

2,539,411

-

 

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

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

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

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

TOTAL CURRENT ASSETS

1,092,085,241

441,789,640

302,027,664

249,364,753

 

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

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

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

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

TOTAL ASSET

1,694,509,393

1,122,699,848

377,952,276

291,887,887

 

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

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

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

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

CURRENT LIABILITIES

 

 

 

 

Trade creditors

73,028,536

95,961,446

36,876,440

-

Other creditors & accruals

91,132,782

145,029,304

7,179,157

-

Bank overdraft

18,055,347

826,760

-

-

Short term borrowings/Term loans

36,188,402

48,266,694

74,236,491

-

Deposits from customers

-

-

11,782,065

-

Bill & acceptances payable

121,743,477

23,275,595

-

-

Amounts owing to related companies

443,963,272

169,158,871

179,483,294

-

Other liabilities

102,806,825

74,828,686

-

-

 

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

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

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

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

TOTAL CURRENT LIABILITIES

886,918,641

557,347,356

309,557,447

248,067,651

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

205,166,600

<115,557,716>

<7,529,783>

1,297,102

 

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

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

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

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

TOTAL NET ASSETS

807,590,752

565,352,492

68,394,829

43,820,236

 

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

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

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

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

SHARE CAPITAL

 

 

 

 

Ordinary share capital

317,325,000

285,960,000

35,000,000

35,000,000

 

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

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

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

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

TOTAL SHARE CAPITAL

317,325,000

285,960,000

35,000,000

35,000,000

RESERVES

 

 

 

 

Exchange equalisation/fluctuation reserve

<36,358,371>

<10,593,787>

-

-

Retained profit/(loss) carried forward

9,257,390

59,605,465

25,343,556

7,183,270

Others

17,504,172

-

-

-

 

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

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

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

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

TOTAL RESERVES

<9,596,809>

49,011,678

25,343,556

7,183,270

 

 

 

 

 

MINORITY INTEREST

19,674,487

6,431,765

-

-

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

327,402,678

341,403,443

60,343,556

42,183,270

LONG TERM LIABILITIES

 

 

 

 

Long term loans

439,855,602

177,972,378

5,846,248

-

Deferred taxation

13,775,255

6,072,038

2,205,025

-

Retirement benefits provision

676,043

211,157

-

-

Others

25,881,174

39,693,476

-

-

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

480,188,074

223,949,049

8,051,273

1,636,966

 

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

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

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

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

 

807,590,752

565,352,492

68,394,829

43,820,236

 

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

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

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

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

 

 

FINANCIAL RATIO

 

 

FELDA IFFCO SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

Cash

72,505,880

62,489,933

63,313,806

-

Net Liquid Funds

<67,292,944>

38,387,578

63,313,806

-

Net Liquid Assets

<68,945,215>

<321,785,873>

<28,572,922>

1,297,102

Net Current Assets/(Liabilities)

205,166,600

<115,557,716>

<7,529,783>

1,297,102

Net Tangible Assets

806,739,840

564,436,161

68,394,829

43,820,236

Net Monetary Assets

<549,133,289>

<545,734,922>

<36,624,195>

<339,864>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

615,842,828

250,341,427

80,082,739

-

Total Liabilities

1,367,106,715

781,296,405

317,608,720

249,704,617

Total Assets

1,694,509,393

1,122,699,848

377,952,276

291,887,887

Net Assets

807,590,752

565,352,492

68,394,829

43,820,236

Net Assets Backing

327,402,678

341,403,443

60,343,556

42,183,270

Shareholders' Funds

327,402,678

341,403,443

60,343,556

42,183,270

Total Share Capital

317,325,000

285,960,000

35,000,000

35,000,000

Total Reserves

<9,596,809>

49,011,678

25,343,556

7,183,270

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.08

0.11

0.20

-

Liquid Ratio

0.92

0.42

0.91

-

Current Ratio

1.23

0.79

0.98

1.01

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

30

63

6

-

Debtors Ratio

40

37

48

-

Creditors Ratio

8

30

10

-

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

1.88

0.73

1.33

-

Liabilities Ratio

4.18

2.29

5.26

5.92

Times Interest Earned Ratio

<0.67>

5.99

34.01

-

Assets Backing Ratio

2.54

1.97

1.95

1.25

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

<1.53>

2.34

1.87

1.46

Net Profit Margin

<1.49>

3.04

1.49

1.08

Return On Net Assets

<2.51>

5.90

38.26

22.12

Return On Capital Employed

<2.40>

5.81

38.26

22.12

Return On Shareholders' Funds/Equity

<15.08>

10.55

33.59

17.03

Dividend Pay Out Ratio (Times)

0.00

0.05

0.10

-

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.74

UK Pound

1

Rs.91.99

Euro

1

Rs.78.70

 

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%)

 

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.