MIRA INFORM REPORT

 

 

Report Date :

01.03.2013

 

IDENTIFICATION DETAILS

 

Name :

MALAYAN SUGAR MANUFACTURING COMPANY BHD

 

 

Formerly Known As :

MALAYAN SUGAR MANUFACTURING CO SDN BHD

 

 

Registered Office :

3rd Floor,Balai Felda, Jalan Gurney Satu, 54000 Kuala Lumpur, Wilayah Persekutuan, Malaysia.

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

06.10.1959

 

 

Com. Reg. No.:

3573-D

 

 

Legal Form :

Public (Limited By Share)

 

 

Line of Business :

Sugar refining and investment holding

 

 

No. of Employees :

400 [2013]

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear 

 

NOTES:

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

 

ECGC Country Risk Classification List – June 30th, 2012

                                                   

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

malaysia - ECONOMIC OVERVIEW

 

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

 

Source : CIA

 

 

 

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

 

N/A - Not Applicable

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

3573-D

COMPANY NAME

:

MALAYAN SUGAR MANUFACTURING COMPANY BHD

FORMER NAME

:

MALAYAN SUGAR MANUFACTURING CO LTD (09/04/1975)
MALAYAN SUGAR MANUFACTURING CO SDN BHD

INCORPORATION DATE

:

06/10/1959

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PUBLIC (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

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

BUSINESS ADDRESS

:

LEVEL 44 MENARA FELDA PLATINUM PARK, 11 PERSIARAN KLCC, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-21814818

FAX.NO.

:

03-21814827

EMAIL

:

MSMSUGAR@MSM.COM.MY

WEB SITE

:

WWW.MSM.COM.MY

CONTACT PERSON

:

CHUA SAY SIN ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

10721 64301

PRINCIPAL ACTIVITY

:

SUGAR REFINING AND INVESTMENT HOLDING

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO 
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 36,360,000.00 DIVIDED INTO 
ORDINARY SHARES 6,060,000 CASH AND 30,300,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 1,973,724,286 [2011]

NET WORTH

:

MYR 379,524,979 [2011]

M1000 OVERALL RANKING

:

262[2011]

M1000 INDUSTRY RANKING

:

17[2011]

 

 

 

STAFF STRENGTH

:

400 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

As a public limited company, the SC must have at least one shareholder but there is no limit on the maximum number of shareholders. The SC must have at least two directors. A public 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, suing or be sued by other companies. The liabilities of the shareholders are only up 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 must file in its annual return, together with its financial statements with the Registrar of Companies. In Malaysia, all the companies seeking listing on the Bursa Malaysia (Malaysia Stock Exchange) must be public limited companies.

 

The SC is principally engaged in the (as a / as an) sugar refining 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

2009

2008

2005

2004

 

OVERALL RANKING

262

306

318

290

240

 

INDUSTRY RANKING

17

21

22

23

16

 

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

FELDA GLOBAL VENTURES SUGAR SDN. BHD.

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

829994

36,360,000.00

100.00

 

 

 

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

------

 

 

 

36,360,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

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

Local No

Company

(%)

As At

208409

ASTAKONAS SDN BHD

100

31/12/2011

 

 

 

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. CHUA SAY SIN

Address

:

PANTAI PANORAMA CONDOMINIUM (PHASE 2), JALAN 112H, OFF JALAN KERINCHI, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

470428-13-5069

Date of Birth

:

28/04/1947

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/06/1998

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. AHMAD TIFLI BIN MOHD TALHA

Address

:

9,JALAN PUALAM TIGA 7/32C, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

650627-10-6437

Date of Birth

:

27/06/1965

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/10/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

DATO' HJ 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

:

15/07/2010

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHUA SAY SIN

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

MAK FOOI CHOI

 

Position

:

FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

CHEE LILIAN

 

Position

:

ASSISTANT HUMAN RESOURCE MANAGER

                                  

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR CENTRAL, P.O. BOX 10192, LEVEL 10, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

                            

                            

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. KOO SHUANG YEN

 

 

 

 

 

New IC No

:

620820-06-5246

 

Address

:

NO. 35 JALAN BU4/9, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

IDA SURYATI BINTI AB RAHIM

 

 

 

 

 

New IC No

:

720404-03-5740

 

Address

:

NO. 20 JALAN TERATAK U8/95B, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

                                       

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

 

 

ENCUMBRANCE (S)



ENCUMBRANCE 1

Date of Creation

:

27/04/2011

Description Of Charge

:

MEMO OF DEPOSIT

 

Amount Secured

:

RM150,000,000.00

Description Of Property Affected

:

FIXED DEPOSIT RECEIPT

 

Name & Address Of Chargee

:

MAYBANK ISLAMIC BERHAD
MENARA MAYBANK, 100 JALAN TUN PERAK, 14TH FLOOR, 50050 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 30/05/2011

Registered and Numbered 1 In The Register of Charges

 

LEGAL CHECK AGAINST SC


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

No legal action was found in our databank. 

No winding up petition was found in our databank. 

DEFAULTER CHECK AGAINST SC


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

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

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 


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

[

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

:

SINGAPORE

NEW ZEALAND

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

FOOD MANUFACTURERS,HOTELS,RESTAURANTS

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

MOLASSES, SUGAR (REFINED)

 

 

 

Services

:

INVESTMENT HOLDING

 

 

 

 

Brand Name

:

PRAI SUGAR

 

 

 

 

Certification of Products

:

1 ) ISO 90022 ) ISO 9001 : 20003 ) HAZARD ANALYSIS AND CRITICAL CONTROL POINT (HACCP) CERTIFICATION

 

 

 

 

 

 

Competitor(s)

:

CENTRAL SUGARS REFINERY SDN BHD
GULA PADANG TERAP SDN BHD
GULA PERAK BHD
KILANG GULA FELDA PERLIS SENDIRIAN BERHAD
SHARIKAT PUTRA PUTRI SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA FOOD & BEVERAGE INDUSTRY

 

 

 

Ownership of premises

:

OWNED

 

Factory / Premises

:

798 MAIN ROAD, 13600 PRAI, PULAU PINANG, MALAYSIA. 
Tel No: 04-3902611 
Fax No: 04-3908122

 

 

 

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

400

400

400

370

370

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) sugar refining and investment holding. 

The SC is a sugar refinery located in Prai, Penang, on the northwest coast of Peninsular Malaysia.

The Facility is the largest sugar refinery in Malaysia and has an annual production capacity of 960,000 mt of refined sugar, representing approximately 86% of our total capacity.

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 2181 4818

Current Telephone Number

:

03-21814818

Match

:

YES

 

 

 

Address Provided by Client

:

LEVEL 44 MENARA FELDA PLATINUM PARK, 11 PERSIARAN KLCC 50088

Current Address

:

LEVEL 44 MENARA FELDA PLATINUM PARK, 11 PERSIARAN KLCC, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


we contacted one of the staff from the SC and she provided some information on the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Favourable

[

67.08%

]

 

Return on Net Assets

:

Favourable

[

89.93%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC's management have been efficient in controlling its operating costs. 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.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

45 Days

]

 

Debtor Ratio

:

Favourable

[

33 Days

]

 

Creditors Ratio

:

Favourable

[

1 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The 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

:

Acceptable

[

0.97 Times

]

 

Current Ratio

:

Unfavourable

[

1.59 Times

]

 

 

 

 

 

 

 

 

The SC's liquid ratio was slightly low. This could indicate that the SC's working capital was slightly deficient. The SC will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

30.27 Times

]

 

Gearing Ratio

:

Favourable

[

0.01 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. The SC's liquidity was at an acceptable range. If the SC is able to obtain further short term financing, it should be able to meet all its short term obligations. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. 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 : STABLE

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

INDUSTRY ANALYSIS

 

MSIC CODE

10721 : Manufacture of sugar

64301 : Venture capital companies

 

 

INDUSTRY :

TRADING

 

 

 


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


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


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


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


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


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

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1959, the SC is a Public Limited Company company, focusing on sugar refining and investment holding. With its long track record in the industry, the SC should have set up pretty sound supply channels and is able to meet the demands of its customers to a large extent. Having strong support from its shareholder has enabled the SC to remain competitive despite the challenging business environment. 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 400 staff in its operations. The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright.


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. 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 379,524,979, 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 SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.


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


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


In view of the above favourable condition, we recommend credit be proceeded to the SC with favourable term.

 

PROFIT AND LOSS ACCOUNT

 

 

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

MALAYAN SUGAR MANUFACTURING COMPANY BHD

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

Months

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

1,973,724,286

1,850,618,700

1,380,137,865

954,658,936

 

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

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

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

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

Total Turnover

1,973,724,286

1,850,618,700

1,380,137,865

954,658,936

Costs of Goods Sold

<1,561,461,055>

<1,451,269,722>

-

-

 

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

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

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

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

Gross Profit

412,263,231

399,348,978

-

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

346,373,943

313,222,572

443,420,720

203,587,323

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

346,373,943

313,222,572

443,420,720

203,587,323

Taxation

<91,800,842>

<71,609,301>

<57,316,371>

<44,359,814>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

254,573,101

241,613,271

386,104,349

159,227,509

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

439,495,878

353,879,819

616,346,607

832,441,562

Prior year adjustment

-

-

183,827

-

 

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

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

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

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

As restated

439,495,878

353,879,819

616,530,434

832,441,562

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

694,068,979

595,493,090

1,002,634,783

991,669,071

DIVIDENDS - Ordinary (paid & proposed)

<350,904,000>

<155,997,212>

<648,754,964>

<375,322,464>

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

343,164,979

439,495,878

353,879,819

616,346,607

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Bank overdraft

-

217

-

137

Bankers' acceptance

7,811,454

5,544,219

1,262,400

3,112,360

Revolving loans

2,662,080

-

-

-

Others

1,361,096

13,370

19,030

20,115

 

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

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

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

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

 

11,834,630

5,557,806

1,281,430

3,132,612

 

 

 

BALANCE SHEET

 

 

MALAYAN SUGAR MANUFACTURING COMPANY BHD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

169,637,773

168,879,208

182,114,227

146,522,991

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Investment properties

-

-

-

3,910,205

Investments

-

-

-

131,172,252

Others

851,522

921,192

-

-

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

851,522

921,192

-

135,082,457

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

170,489,295

169,800,400

182,114,227

281,605,448

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

240,806,271

285,855,390

263,273,989

248,916,321

Trade debtors

177,749,234

157,221,614

81,121,912

70,556,498

Other debtors, deposits & prepayments

22,409,785

37,632,679

62,747,689

1,053,956

Short term deposits

131,289,588

43,234,946

135,701,310

87,219,182

Amount due from holding company

7,195

-

-

126,627,122

Amount due from related companies

1,039,501

252,000

-

-

Cash & bank balances

38,805,440

20,616,403

7,711,058

15,728,702

Others

3,449,344

20,509,253

6,033,725

-

 

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

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

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

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

TOTAL CURRENT ASSETS

615,556,358

565,322,285

556,589,683

550,101,781

 

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

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

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

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

TOTAL ASSET

786,045,653

735,122,685

738,703,910

831,707,229

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

2,791,555

5,027,213

75,731,606

3,527,726

Other creditors & accruals

19,118,866

12,633,807

22,829,902

20,215,330

Bill & acceptances payable

245,000,000

207,000,000

126,000,000

138,000,000

Amounts owing to holding company

100,907,397

-

61,951

-

Amounts owing to related companies

6,580,294

-

533,542

1,016,164

Provision for taxation

13,348,915

11,895,229

31,064,461

9,939,811

 

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

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

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

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

TOTAL CURRENT LIABILITIES

387,747,027

236,556,249

256,221,462

172,699,031

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

227,809,331

328,766,036

300,368,221

377,402,750

 

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

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

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

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

TOTAL NET ASSETS

398,298,626

498,566,436

482,482,448

659,008,198

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

36,360,000

36,360,000

36,360,000

36,360,000

 

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

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

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

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

TOTAL SHARE CAPITAL

36,360,000

36,360,000

36,360,000

36,360,000

 

 

 

 

 

RESERVES

 

 

 

 

Exchange equalisation/fluctuation reserve

-

-

-

<1,539,725>

Retained profit/(loss) carried forward

343,164,979

439,495,878

353,879,819

616,346,607

Others

-

-

80,000,000

-

 

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

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

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

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

TOTAL RESERVES

343,164,979

439,495,878

433,879,819

614,806,882

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

379,524,979

475,855,878

470,239,819

651,166,882

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Deferred taxation

18,773,647

22,710,558

12,242,629

7,841,316

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

18,773,647

22,710,558

12,242,629

7,841,316

 

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

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

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

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

 

398,298,626

498,566,436

482,482,448

659,008,198

 

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

MALAYAN SUGAR MANUFACTURING COMPANY BHD

 

TYPES OF FUNDS

 

 

 

 

Cash

170,095,028

63,851,349

143,412,368

102,947,884

Net Liquid Funds

170,095,028

63,851,349

143,412,368

102,947,884

Net Liquid Assets

<12,996,940>

42,910,646

37,094,232

128,486,429

Net Current Assets/(Liabilities)

227,809,331

328,766,036

300,368,221

377,402,750

Net Tangible Assets

398,298,626

498,566,436

482,482,448

659,008,198

Net Monetary Assets

<31,770,587>

20,200,088

24,851,603

120,645,113

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

2,662,080

0

0

0

Total Liabilities

406,520,674

259,266,807

268,464,091

180,540,347

Total Assets

786,045,653

735,122,685

738,703,910

831,707,229

Net Assets

398,298,626

498,566,436

482,482,448

659,008,198

Net Assets Backing

379,524,979

475,855,878

470,239,819

651,166,882

Shareholders' Funds

379,524,979

475,855,878

470,239,819

651,166,882

Total Share Capital

36,360,000

36,360,000

36,360,000

36,360,000

Total Reserves

343,164,979

439,495,878

433,879,819

614,806,882

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.44

0.27

0.56

0.60

Liquid Ratio

0.97

1.18

1.14

1.74

Current Ratio

1.59

2.39

2.17

3.19

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

45

56

70

95

Debtors Ratio

33

31

21

27

Creditors Ratio

1

1

20

1

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.01

0.00

0.00

0.00

Liabilities Ratio

1.07

0.54

0.57

0.28

Times Interest Earned Ratio

30.27

57.36

347.04

65.99

Assets Backing Ratio

10.95

13.71

13.27

18.12

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

17.55

16.93

32.13

21.33

Net Profit Margin

12.90

13.06

27.98

16.68

Return On Net Assets

89.93

63.94

92.17

31.37

Return On Capital Employed

89.34

63.94

92.17

31.37

Return On Shareholders' Funds/Equity

67.08

50.77

82.11

24.45

Dividend Pay Out Ratio (Times)

1.38

0.65

1.68

2.36

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.77

UK Pound

1

Rs.81.57

Euro

1

Rs.70.68

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.