MIRA INFORM REPORT

 

 

Report Date :

01.03.2013

 

IDENTIFICATION DETAILS

 

Name :

PAN-CENTURY OLEOCHEMICALS SDN BHD

 

 

Formerly Known As :

USAHA JERNIH SDN BHD

 

 

Registered Office :

Two Ioi Square, Ioi Resort, 62502 Putrajaya, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2011

 

 

Date of Incorporation :

29.01.1988

 

 

Com. Reg. No.:

168193-W

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturer of Oleochemical Products

 

 

No. of Employees :

150 [2013]

 

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 :

Good

 

 

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 – 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.

:

168193-W

COMPANY NAME

:

PAN-CENTURY OLEOCHEMICALS SDN BHD

FORMER NAME

:

USAHA JERNIH SDN BHD (09/03/1989)

INCORPORATION DATE

:

29/01/1988

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

TWO IOI SQUARE, IOI RESORT, 62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 231, JALAN PEKELILING, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2512298

FAX.NO.

:

07-2512634

EMAIL

:

PCOC@PANCENTURY.COM                 

WEB SITE

:

WWW.PANCENTURY.COM

CONTACT PERSON

:

GURDEV SINGH ( CEO )

 

 

 

INDUSTRY CODE

:

20291

PRINCIPAL ACTIVITY

:

MANUFACTURE OF OLEOCHEMICAL PRODUCTS

AUTHORISED CAPITAL

:

MYR 40,000,000.00 DIVIDED INTO 
ORDINARY SHARE 30,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 22,000,000.00 DIVIDED INTO 
ORDINARY SHARES 22,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 523,699,166 [2011]

NET WORTH

:

MYR 87,475,474 [2011]

M1000 OVERALL RANKING

:

731[2011]

M1000 INDUSTRY RANKING

:

35[2011]

 

 

 

STAFF STRENGTH

:

150 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The SC is principally engaged in the (as a / as an) manufacture of oleochemical products.

 

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

2005

 

OVERALL RANKING

731

976

 

INDUSTRY RANKING

35

36

 

 

The immediate and ultimate holding company of the SC is IOI CORPORATION BERHAD, a company incorporated in MALAYSIA.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

IOI CORPORATION BERHAD

TWO I0I SQUARE, I0I RESORT, 62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.

9027

22,000,000.00

100.00

 

 

 

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

------

 

 

 

22,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

TAN SRI DATO' LEE SHIN CHENG @ LEE LEONG

Address

:

8, LINGKUNGAN 3, DIAMOND HILL, IOI RESORT, 62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

390603-10-5263

Date of Birth

:

03/06/1939

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/01/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. LEE YEOW SENG

Address

:

8 LINGKUNGAN 3, DIAMOND HILL IOI RESORT, 62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

781223-14-5501

Date of Birth

:

23/12/1978

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/01/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. LEE YEOW CHOR

Address

:

6,JALAN BAVERLY UTAMA, IOI RESORT, 62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

661129-10-5443

Date of Birth

:

29/11/1966

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/01/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. TAN KEAN HUA

Address

:

NO. 14, JALAN 31/74B,, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

640202-10-5499

Date of Birth

:

02/02/1964

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

15/01/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. GURDEV SINGH A/L DARSHAN SINGH

Address

:

NO 7,JALAN KUEL, 80300 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

New IC No

:

580323-01-6079

Date of Birth

:

23/03/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

18/04/2011

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

GURDEV SINGH

 

Position

:

CEO

 

 

 

 

 

2)

Name of Subject

:

LEE SHIN CHENG

 

Position

:

EXECUTIVE CHAIRMAN

 

 

 

 

 

3)

Name of Subject

:

PATRICK HUN

 

Position

:

VICE PRESIDENT

 

 

 

 

 

4)

Name of Subject

:

IRIS CHOO

 

Position

:

FINANCIAL CONTROLLER

 

 

 

 

 

5)

Name of Subject

:

AHSHA

 

Position

:

ASSISTANT HUMAN RESOURCE MANAGER

 

 

 

 

 

6)

Name of Subject

:

WAFLI ALI

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

7)

Name of Subject

:

NOR AZILAN

 

Position

:

PRODUCTION MANAGER

 

 

 

 

 

8)

Name of Subject

:

SASHIDARAN

 

Position

:

LOGISTIC MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

BDO

Auditor' Address

:

SUITE 18-04, MANARA MAA, 15, JALAN DATO' ABDULLAH TAHIR, LEVEL 18, 80300 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LEE AI LENG

 

 

 

 

 

New IC No

:

651116-05-5038

 

Address

:

3,JALAN BK 6B/13, BANDAR KINRARA, 47180 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MR. TAN CHOONG KHIANG

 

 

 

 

 

New IC No

:

701016-07-5317

 

Address

:

7, JALAN PJU 2/28 TAMAN PUNCAK JALIL BANDAR PUTRA PERMAI, 43300 BALAKONG, 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

:

26/07/1990

Description Of Charge

:

DEBENTURE

 

Amount Secured

:

RM50,000,000.00

Description Of Property Affected

:

FIXED CHARGE

 

Name & Address Of Chargee

:

BANK BUMIPUTRA MALAYSIA BERHAD
BANGUNAN MERITIM, LPJ, GROUND FLOOR, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 14/08/1990

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

01/06/1994

Description Of Charge

:

DEBENTURE

 

Amount Secured

:

RM27,500,000.00

Description Of Property Affected

:

FIXED CHARGE

 

Name & Address Of Chargee

:

BANK BUMIPUTRA MALAYSIA BERHAD
BANGUNAN MERITIM, LPJ, GROUND FLOOR, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 14/06/1994

Registered and Numbered 4 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

20/07/1995

Description Of Charge

:

DEBENTURE

 

Amount Secured

:

RM55,500,000.00

Description Of Property Affected

:

FIXED CHARGE

 

Name & Address Of Chargee

:

BANK BUMIPUTRA MALAYSIA BERHAD
BANGUNAN MERITIM LPJ, GROUND FLOOR, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 31/07/1995

Registered and Numbered 7 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

30/12/1997

Description Of Charge

:

DEBENTURE

 

Amount Secured

:

RM7,000,000.00

Description Of Property Affected

:

FIXED CHARGE

 

Name & Address Of Chargee

:

BANK BUMIPUTRA MALAYSIA BERHAD
MENARA BUMIPUTRA, JALAN MELAKA, 23RD FLOOR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 19/01/1998

Registered and Numbered 8 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

24/01/1998

Description Of Charge

:

CHARGE

 

Amount Secured

:

RM7,000,000.00

Description Of Property Affected

:

FIXED CHARGE

 

Name & Address Of Chargee

:

BANK BUMIPUTRA MALAYSIA BERHAD
MENARA BUMIPUTRA, JALAN MELAKA, 23RD FLOOR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 09/02/1998

Registered and Numbered 9 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

Percentage

:

60%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

40%

Export Market

:

ASIA

EUROPE

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)
LETTER OF CREDIT (LC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

OLEOCHEMICAL PRODUCTS

 

 

 

Award

:

1 ) QUALITY MANAGEMENT EXCELLENCE AWARD BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2002
2 ) MS ISO 9001 : 2000 Year :2000
3 ) MS ISO 14001 Year :1999

 

 

 

 

 

 

Competitor(s)

:

FPG OLEOCHEMICALS SDN BHD
MALAY-SINO CHEMICAL INDUSTRIES SDN BHD
SCHAEFER KALK (MALAYSIA) SDN BHD
TOR MINERALS (M) SDN BHD
UMICORE MALAYSIA SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

OWNED

 

Factory Size

:

SIZE OF FIVE FOOTBALL FIELDS

 

Shifts

:

24 HOURS-3 SHIFTS

 

 

 

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

150

150

178

150

150

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacture of oleochemical products. 

We were informed that the SC focuses on fine vegetable-based biodegradable oleochemicals.

Its modern and sophisticated plant with an annual capacity of 340,000 MT produces a variety of fatty acids and pharmaceutical-grade glycerine.

Besides that, the SC also has a warehouse to keep stocks and materials. 

 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

072512298

Current Telephone Number

:

07-2512298

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 231, JALAN PEKELILING,81700,PASIR GUDANG,JOHOR.

Current Address

:

LOT 231, JALAN PEKELILING, 81700 PASIR GUDANG, JOHOR, 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

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

5.77%

]

 

Return on Net Assets

:

Unfavourable

[

5.43%

]

 

 

 

 

 

 

 

 

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. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

34 Days

]

 

Debtor Ratio

:

Favourable

[

31 Days

]

 

Creditors Ratio

:

Favourable

[

3 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

[

0.85 Times

]

 

Current Ratio

:

Unfavourable

[

1.19 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

[

185.62 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 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 was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the SC : LIMITED

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

INDUSTRY ANALYSIS

 

MSIC CODE

20291 : Manufacture of photographic plates, films, sensitized paper and other sensitized unexposed materials 

 

 

INDUSTRY :

MANUFACTURING

 

 

 


The manufacturing sector is expected to be driven by higher value-added activities in Malaysia.The GDP growth for first quarter 2012 indicating manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia recorded a 12% jump in approved investments in the manufacturing sector in the first quarter of 2012 compared with the corresponding period 2011. According to Federation of Malaysian Manufacturers (FMM), manufacturing sector expected to improve in the third quarter 2012 despite concerns over external developments and the rising cost of production.


The rubber products sub-sector is expected to remain resilient supported by continuous improvements in medical and healthcare standards in emerging markets as well as demand from niche markets such as the oil and gas sector for rubber hoses. Malaysia rubber exports are forecast to grow at 10%, at the end of 2012 driven by global demand for medical gloves as well as rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber shipments in Malaysia due to hospitals and clinics place more intrest on rising health and hygiene awareness.


The Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.


Chemical production are expected to show 6.2% in year 2012 and 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.


According to Malaysian Iron and Steel Industry Federation, first half of 2012 would remain weak for the local steel industry due to eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries. At first quarter 2012, the average local steel price is trading atRM2,300 per tonne compared with the average international price of US$740 (RM2,331) per tonne.


According to the Department of Statistics, Malaysia during the first quarter 2012, the manufacturing output increased due to activities in major sub-sectors such as petroleum, chemical, rubber and plastic products (10.5 %), and non-metallic mineral products, basic metal and fabricated metal products (3.9 %). Meanwhile, it's also announced that the manufacturing sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared with RM47.7 billion in May 2011. The Industrial Production Index (IPI ) increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %). 


Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such as solar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1988, the SC is a Private Limited company, focusing on manufacture of oleochemical products. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. 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 established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. The SC is a fairly large and rapidly growing company with over 150 staff in its operations. 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. To improve its quality products and services, we noted that the SC has received a number of certifications & awards. This will improve the customer's confidence level to 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. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC however managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 87,475,474, 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.


Based on the above condition, we recommend credit be granted to the SC promptly.

 

PROFIT AND LOSS ACCOUNT

 

 

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

PAN-CENTURY OLEOCHEMICALS SDN BHD

 

Financial Year End

30/06/2011

30/06/2010

30/06/2009

30/06/2008

30/09/2007

Months

12

12

12

9

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

523,699,166

496,845,696

442,354,818

526,535,973

372,015,345

 

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

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

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

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

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

Total Turnover

523,699,166

496,845,696

442,354,818

526,535,973

372,015,345

Costs of Goods Sold

<501,465,137>

<470,260,593>

-

-

-

 

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

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

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

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

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

Gross Profit

22,234,029

26,585,103

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

5,553,115

5,459,226

<10,813,533>

28,260,470

20,269,505

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

5,553,115

5,459,226

<10,813,533>

28,260,470

20,269,505

Taxation

<509,463>

<667,000>

2,848,395

<5,400,000>

<9,505,000>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

5,043,652

4,792,226

<7,965,138>

22,860,470

10,764,505

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

67,614,210

62,821,984

70,787,122

47,926,652

82,174,147

Prior year adjustment

659,061

-

-

-

-

 

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

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

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

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

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

As restated

68,273,271

62,821,984

70,787,122

47,926,652

82,174,147

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

73,316,923

67,614,210

62,821,984

70,787,122

92,938,652

DIVIDENDS - Ordinary (paid & proposed)

<10,841,449>

-

-

-

<45,012,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

62,475,474

67,614,210

62,821,984

70,787,122

47,926,652

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

30,079

20,413

21,227

8,808

14,766

Revolving loans

-

-

416,984

-

-

Term loan / Borrowing

-

-

42,938

216,733

727,269

Others

-

13,722

587,630

964,285

1,361,373

 

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

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

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

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

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

 

30,079

34,135

1,068,779

1,189,826

2,103,408

 

 

 

BALANCE SHEET

 

 

PAN-CENTURY OLEOCHEMICALS SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

70,782,647

70,560,339

76,795,365

78,007,426

78,107,592

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investment properties

4,400,000

4,560,000

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

4,400,000

4,560,000

-

-

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

75,182,647

75,120,339

76,795,365

78,007,426

78,107,592

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

48,776,440

41,277,621

43,011,745

64,173,430

48,994,718

Trade debtors

44,140,590

35,312,348

24,311,286

38,437,064

33,861,653

Other debtors, deposits & prepayments

1,472,310

2,817,926

2,118,715

2,320,388

2,058,438

Amount due from holding company

-

-

-

758

758

Amount due from related companies

71,204,743

11,632,726

13,035,882

11,988,014

5,718,666

Cash & bank balances

765,164

6,140,627

2,009,214

213,451

88

Others

3,489,306

646,664

841,975

528,580

825,000

 

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

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

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

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

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

TOTAL CURRENT ASSETS

169,848,553

97,827,912

85,328,817

117,661,685

91,459,321

 

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

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

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

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

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

TOTAL ASSET

245,031,200

172,948,251

162,124,182

195,669,111

169,566,913

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

3,842,944

6,970,988

4,333,065

7,244,968

1,192,003

Other creditors & accruals

9,400,796

6,961,363

5,167,871

4,690,798

6,234,053

Short term borrowings/Term loans

-

-

-

32,607,201

47,613,379

Amounts owing to related companies

128,231,466

51,752,361

51,056,587

39,296,078

28,430,690

Other liabilities

827,626

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

142,302,832

65,684,712

60,557,523

83,839,045

83,470,125

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

27,545,721

32,143,200

24,771,294

33,822,640

7,989,196

 

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

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

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

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

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

TOTAL NET ASSETS

102,728,368

107,263,539

101,566,659

111,830,066

86,096,788

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

22,000,000

22,000,000

22,000,000

22,000,000

22,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

22,000,000

22,000,000

22,000,000

22,000,000

22,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Capital reserve

3,000,000

3,000,000

3,000,000

3,000,000

3,000,000

Retained profit/(loss) carried forward

62,475,474

67,614,210

62,821,984

70,787,122

47,926,652

 

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

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

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

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

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

TOTAL RESERVES

65,475,474

70,614,210

65,821,984

73,787,122

50,926,652

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

87,475,474

92,614,210

87,821,984

95,787,122

72,926,652

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

-

-

-

-

1,746,302

Deferred taxation

12,536,000

12,076,000

11,409,000

13,944,000

9,505,000

Retirement benefits provision

2,716,894

2,573,329

2,335,675

2,098,944

1,918,834

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

15,252,894

14,649,329

13,744,675

16,042,944

13,170,136

 

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

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

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

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

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

 

102,728,368

107,263,539

101,566,659

111,830,066

86,096,788

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

PAN-CENTURY OLEOCHEMICALS SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

765,164

6,140,627

2,009,214

213,451

88

Net Liquid Funds

765,164

6,140,627

2,009,214

213,451

88

Net Liquid Assets

<21,230,719>

<9,134,421>

<18,240,451>

<30,350,790>

<41,005,522>

Net Current Assets/(Liabilities)

27,545,721

32,143,200

24,771,294

33,822,640

7,989,196

Net Tangible Assets

102,728,368

107,263,539

101,566,659

111,830,066

86,096,788

Net Monetary Assets

<36,483,613>

<23,783,750>

<31,985,126>

<46,393,734>

<54,175,658>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

416,984

32,607,201

49,359,681

Total Liabilities

157,555,726

80,334,041

74,302,198

99,881,989

96,640,261

Total Assets

245,031,200

172,948,251

162,124,182

195,669,111

169,566,913

Net Assets

102,728,368

107,263,539

101,566,659

111,830,066

86,096,788

Net Assets Backing

87,475,474

92,614,210

87,821,984

95,787,122

72,926,652

Shareholders' Funds

87,475,474

92,614,210

87,821,984

95,787,122

72,926,652

Total Share Capital

22,000,000

22,000,000

22,000,000

22,000,000

22,000,000

Total Reserves

65,475,474

70,614,210

65,821,984

73,787,122

50,926,652

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.01

0.09

0.03

0.00

0.00

Liquid Ratio

0.85

0.86

0.70

0.64

0.51

Current Ratio

1.19

1.49

1.41

1.40

1.10

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

34

30

35

44

48

Debtors Ratio

31

26

20

27

33

Creditors Ratio

3

5

4

5

1

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.34

0.68

Liabilities Ratio

1.80

0.87

0.85

1.04

1.33

Times Interest Earned Ratio

185.62

160.93

<9.12>

24.75

10.64

Assets Backing Ratio

4.67

4.88

4.62

5.08

3.91

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.06

1.10

<2.44>

5.37

5.45

Net Profit Margin

0.96

0.96

<1.80>

4.34

2.89

Return On Net Assets

5.43

5.12

<9.59>

26.33

25.99

Return On Capital Employed

5.43

5.12

<9.56>

26.33

25.99

Return On Shareholders' Funds/Equity

5.77

5.17

<9.07>

23.87

14.76

Dividend Pay Out Ratio (Times)

2.15

0.00

0.00

0.00

4.18

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

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.