MIRA INFORM REPORT

 

 

Report Date :

07.03.2013

 

IDENTIFICATION DETAILS

 

Name :

BARRY CALLEBAUT MALAYSIA SDN. BHD.

 

 

Formerly Known As :

KL-KEPONG COCOA PRODUCTS SDN BHD

 

 

Registered Office :

Wisma Taiko,1 Jln.S.P Seenivasagam, Ipoh, Perak, 30000 Ipoh, Perak

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.08.2011

 

 

Date of Incorporation :

27.06.1990

 

 

Com. Reg. No.:

200081-D

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing of chocolates & other related products

 

 

No. of Employees :

320

 

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 :

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.

:

200081-D

COMPANY NAME

:

BARRY CALLEBAUT MALAYSIA SDN. BHD.

FORMER NAME

:

KL-KEPONG COCOA PRODUCTS SDN BHD (11/07/2008)

INCORPORATION DATE

:

27/06/1990

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

WISMA TAIKO,1 JLN.S.P SEENIVASAGAM, IPOH, PERAK, 30000 IPOH, PERAK, MALAYSIA.

BUSINESS ADDRESS

:

LOT 2, LEBUH SULTAN MOHAMED 1, BANDAR SULTAN SULEIMAN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31693333

FAX.NO.

:

03-31693288

WEB SITE

:

WWW.KLKCP.COM.MY

CONTACT PERSON

:

MAURIZIO DECIO ( PRESIDENT )

 

 

 

INDUSTRY CODE

:

10732

PRINCIPAL ACTIVITY

:

MANUFACTURING OF CHOCOLATES & OTHER RELATED PRODUCTS

AUTHORISED CAPITAL

:

MYR 40,000,000.00 DIVIDED INTO
ORDINARY SHARE 35,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 50,000,000.00 OF MYR 0.10 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 35,000,000.00 DIVIDED INTO
ORDINARY SHARES 35,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 767,085,000 [2011]

NET WORTH

:

MYR 198,192,000 [2011]

M1000 OVERALL RANKING

:

564[2011]

M1000 INDUSTRY RANKING

:

29[2011]

 

 

 

STAFF STRENGTH

:

320 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

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) manufacturing of chocolates & other related 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

2009

2008

 

OVERALL RANKING

564

686

997

 

INDUSTRY RANKING

29

21

18

 

 

The immediate holding company of the SC is BARRY CALLEBAUT DECORATIONS B.V, a company incorporated in NETHERLANDS.

 

The ultimate holding company of the SC is BARRY CALLEBAUT AG, a company incorporated in SWITZERLAND.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

BARRY CALLEBAUT DECORATIONS B.V

 

00218066

21,000,000.00

60.00

BARRY CALLEBAUT BELGIUM NV

 

00218067

14,000,000.00

40.00

 

 

 

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

------

 

 

 

35,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

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



Local No

Company

(%)

As At

606642

SELBOURNE FOOD SERVICES SDN BHD

100

31/08/2011

 

 

 

 

 

 

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MS. NG YIN PING

Address

:

A7-3,FLORA GREEN CONDOMINIUM, JALAN SG LONG,BANDAR SG LONG, 43000 KAJANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

551111-10-5480

Date of Birth

:

11/11/1955

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

25/10/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MAURIZIO DECIO

Address

:

27C, BLOCK 6, LANE 118, ZI YUN ROAD, SHANGHAI, CHINA

IC / PP No

:

YA2672350

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

10/12/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

VIKTOR WALDEMAR BALLI

Address

:

TOEDISTRASSE 54, 8810 HORGEN, SWITZERLAND

IC / PP No

:

X3387098

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

30/05/2011

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

MAURIZIO DECIO

 

Position

:

PRESIDENT

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

LEVEL 10, KPMG TOWER,, 8 FIRST AVENUE, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. NG YIN PING

 

 

 

 

 

New IC No

:

551111-10-5480

 

Address

:

A7-3,FLORA GREEN CONDOMINIUM, JALAN SG LONG,BANDAR SG LONG, 43000 KAJANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. TAN AI NING

 

 

 

 

 

New IC No

:

710325-10-5406

 

Address

:

32, JALAN BURHANUDDIN HELMI 3, TAMAN TUN DR. ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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)


No encumbrance was found in our databank at the time of investigation.

 

 

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

Import Countries

:

UNITED STATES,BRAZIL,EUROPE



The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

WORLDWIDE

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

Type of Customer

:

FOOD MANUFACTURERS,DISTRIBUTORS

 

 

 

 

 

 

 

 

 

 

 

 



OPERATIONS

 

Products manufactured

:

CHOCOLATES & OTHER RELATED PRODUCTS

 

 

 

Brand Name

:

KLK COCOA, MAYER, SELBOURNE

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :1995

 

 

 

Competitor(s)

:

COCOAHOUSE INDUSTRIES SDN BHD

GOODFOOD INDUSTRIES SDN BHD

GUAN CHONG COCOA MANUFACTURER SDN BHD

KOKO MALAYSIA SDN BHD

TAN KIMHOCK TONG SENG FOOD INDUSTRY SDN BHD

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

MALAYSIA FOOD & BEVERAGE INDUSTRY

 

 

 

Ownership of premises

:

OWNED

Factory Size

:

7 ACRES

Production Capacity

:

300,000 TO 350,000 TONNES PER YEAR

Shifts

:

3

 

 

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

320

323

320

320

320

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of chocolates & other related products.

The SC's products ranges are includes chocolate blocks, chocolate nuggets, bakable chocolate chips, chocolate couverture, chocolate spread, chocolate glaze, chocolate paste, chocolate and compound ice cream coatings, cocoa mass and liquor, cocoa preparation, cocoa mass, hazelnut spread, hazelnut glaze, hazelnut paste, cocoa butter, lecithinated cocoa powder and etc.

We were informed that the SC supplies high quality of cocoa products using the state of art processing technologies.

The SC manufactures premium quality couverture and compound chocolate for various industrial confectioners and bakeries applications.

Besides that the SC has its own R & D department to meet the customers' requirements and also to maintain the quality of its products.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0331693333

Current Telephone Number

:

03-31693333

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 2, LEBUH SULTAN MOHAMED 1, BANDAR SULTAN SULEIMAN,42000,PELABUHAN KLANG,SELANGOR.

Current Address

:

LOT 2, LEBUH SULTAN MOHAMED 1, BANDAR SULTAN SULEIMAN, 42000 PELABUHAN KLANG, SELANGOR, 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

:

Acceptable

[

17.26%

]

 

Return on Net Assets

:

Acceptable

[

19.92%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

75 Days

]

 

Debtor Ratio

:

Favourable

[

22 Days

]

 

Creditors Ratio

:

Favourable

[

13 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

[

0.80 Times

]

 

Current Ratio

:

Unfavourable

[

1.94 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

[

27.11 Times

]

 

Gearing Ratio

:

Favourable

[

0.14 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 was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

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

10732 : Manufacture of chocolate and chocolate products

 

 

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 1990, the SC is a Private Limited company, focusing on manufacturing of chocolates & other related products. The SC has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having strong support from its holding company 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 320 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. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. 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 198,192,000, 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.


Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


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)

BARRY CALLEBAUT MALAYSIA SDN. BHD.

 

Financial Year End

31/08/2011

31/08/2010

31/08/2009

30/09/2008

30/09/2007

Months

12

12

11

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

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

767,085,000

762,606,000

561,749,000

591,408,000

423,530,000

 

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

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

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

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

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

Total Turnover

767,085,000

762,606,000

561,749,000

591,408,000

423,530,000

Costs of Goods Sold

<700,420,000>

<732,679,000>

<543,444,000>

<541,042,000>

<389,759,000>

 

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

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

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

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

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

Gross Profit

66,665,000

29,927,000

18,305,000

50,366,000

33,771,000

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

42,123,000

19,326,000

4,902,000

31,761,000

16,140,000

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

42,123,000

19,326,000

4,902,000

31,761,000

16,140,000

Taxation

<7,906,000>

<3,633,000>

<598,000>

<3,798,000>

<1,942,000>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

34,217,000

15,693,000

4,304,000

27,963,000

14,198,000

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

123,975,000

112,769,000

108,465,000

81,502,000

90,044,000

Prior year adjustment

-

<4,487,000>

-

-

-

 

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

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

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

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

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

As restated

123,975,000

108,282,000

108,465,000

81,502,000

90,044,000

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

158,192,000

123,975,000

112,769,000

109,465,000

104,242,000

- General

-

-

-

<1,000,000>

-

DIVIDENDS - Ordinary (paid & proposed)

-

-

-

-

<22,740,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

158,192,000

123,975,000

112,769,000

108,465,000

81,502,000

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Term loan / Borrowing

1,068,000

1,150,000

1,513,000

969,000

-

Others

545,000

1,280,000

2,112,000

3,679,000

818,000

 

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

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

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

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

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

 

1,613,000

2,430,000

3,625,000

4,648,000

818,000

 

 

 

BALANCE SHEET

 

 

BARRY CALLEBAUT MALAYSIA SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

87,460,000

73,287,000

79,556,000

87,743,000

85,598,000

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Goodwill on consolidation

631,000

445,000

-

-

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

631,000

445,000

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

88,091,000

73,732,000

79,556,000

87,743,000

85,598,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

158,650,000

150,436,000

175,890,000

204,373,000

158,242,000

Trade debtors

47,247,000

53,458,000

36,213,000

27,581,000

29,599,000

Other debtors, deposits & prepayments

2,832,000

1,781,000

1,579,000

8,042,000

3,242,000

Amount due from related companies

30,832,000

17,020,000

44,813,000

4,892,000

400,000

Cash & bank balances

3,622,000

4,369,000

12,636,000

18,840,000

568,000

Others

27,353,000

45,393,000

1,376,000

-

10,000

 

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

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

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

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

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

TOTAL CURRENT ASSETS

270,536,000

272,457,000

272,507,000

263,728,000

192,061,000

 

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

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

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

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

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

TOTAL ASSET

358,627,000

346,189,000

352,063,000

351,471,000

277,659,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

25,248,000

38,113,000

40,655,000

11,574,000

4,098,000

Other creditors & accruals

19,700,000

11,113,000

23,780,000

10,683,000

9,254,000

Short term borrowings/Term loans

9,000,000

9,000,000

9,000,000

9,000,000

-

Other borrowings

-

-

-

33,500,000

1,700,000

Bill & acceptances payable

-

-

64,106,000

94,800,000

68,200,000

Amounts owing to related companies

48,128,000

61,302,000

754,000

7,000

57,200,000

Provision for taxation

496,000

-

-

403,000

93,000

Other liabilities

36,529,000

28,299,000

17,615,000

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

139,101,000

147,827,000

155,910,000

159,967,000

140,545,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

131,435,000

124,630,000

116,597,000

103,761,000

51,516,000

 

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

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

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

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

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

TOTAL NET ASSETS

219,526,000

198,362,000

196,153,000

191,504,000

137,114,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

35,000,000

35,000,000

35,000,000

35,000,000

36,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

35,000,000

35,000,000

35,000,000

35,000,000

36,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

-

-

-

-

9,000,000

Retained profit/(loss) carried forward

158,192,000

123,975,000

112,769,000

108,465,000

81,502,000

Capital redemption reserve

5,000,000

5,000,000

5,000,000

5,000,000

4,000,000

 

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

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

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

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

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

TOTAL RESERVES

163,192,000

128,975,000

117,769,000

113,465,000

94,502,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

198,192,000

163,975,000

152,769,000

148,465,000

130,502,000

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

18,000,000

27,000,000

36,000,000

36,000,000

-

Deferred taxation

3,334,000

7,387,000

7,384,000

7,039,000

6,612,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

21,334,000

34,387,000

43,384,000

43,039,000

6,612,000

 

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

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

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

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

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

 

219,526,000

198,362,000

196,153,000

191,504,000

137,114,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

BARRY CALLEBAUT MALAYSIA SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

3,622,000

4,369,000

12,636,000

18,840,000

568,000

Net Liquid Funds

3,622,000

4,369,000

12,636,000

18,840,000

568,000

Net Liquid Assets

<27,215,000>

<25,806,000>

<59,293,000>

<100,612,000>

<106,726,000>

Net Current Assets/(Liabilities)

131,435,000

124,630,000

116,597,000

103,761,000

51,516,000

Net Tangible Assets

218,895,000

197,917,000

196,153,000

191,504,000

137,114,000

Net Monetary Assets

<48,549,000>

<60,193,000>

<102,677,000>

<143,651,000>

<113,338,000>

 

 

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

27,000,000

36,000,000

45,000,000

78,500,000

1,700,000

Total Liabilities

160,435,000

182,214,000

199,294,000

203,006,000

147,157,000

Total Assets

358,627,000

346,189,000

352,063,000

351,471,000

277,659,000

Net Assets

219,526,000

198,362,000

196,153,000

191,504,000

137,114,000

Net Assets Backing

198,192,000

163,975,000

152,769,000

148,465,000

130,502,000

Shareholders' Funds

198,192,000

163,975,000

152,769,000

148,465,000

130,502,000

Total Share Capital

35,000,000

35,000,000

35,000,000

35,000,000

36,000,000

Total Reserves

163,192,000

128,975,000

117,769,000

113,465,000

94,502,000

 

 

 

 

 

 

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.03

0.03

0.08

0.12

0.00

Liquid Ratio

0.80

0.83

0.62

0.37

0.24

Current Ratio

1.94

1.84

1.75

1.65

1.37

 

 

 

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

75

72

114

126

136

Debtors Ratio

22

26

24

17

26

Creditors Ratio

13

19

27

8

4

 

 

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.14

0.22

0.29

0.53

0.01

Liabilities Ratio

0.81

1.11

1.30

1.37

1.13

Times Interest Earned Ratio

27.11

8.95

2.35

7.83

20.73

Assets Backing Ratio

6.25

5.65

5.60

5.47

3.92

 

 

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

5.49

2.53

0.87

5.37

3.81

Net Profit Margin

4.46

2.06

0.77

4.73

3.35

Return On Net Assets

19.92

10.97

4.35

19.01

12.37

Return On Capital Employed

19.87

10.94

4.35

19.01

12.37

Return On Shareholders' Funds/Equity

17.26

9.57

2.82

18.83

10.88

Dividend Pay Out Ratio (Times)

-

-

-

-

1.60

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.71

UK Pound

1

Rs.82.79

Euro

1

Rs.71.43

 

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.