MIRA INFORM REPORT

 

 

Report Date :

07.03.2013

 

IDENTIFICATION DETAILS

 

Name :

KLK PREMIER OILS SDN. BHD.

 

 

Formerly Known As :

LELUASA UNTUNG SDN BHD

 

 

Registered Office :

Wisma Taiko, 1 Jalan S P Seenivasagam, 30000 Ipoh, Perak

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.09.2011

 

 

Date of Incorporation :

28.07.1994

 

 

Com. Reg. No.:

309579-H

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Processing of Palm Kernels and Crude Palm Oil

 

 

No. of Employees :

130

 

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 :

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

(31.03.2011)

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.

:

309579-H

COMPANY NAME

:

KLK PREMIER OILS SDN. BHD.

FORMER NAME

:

LELUASA UNTUNG SDN BHD (10/11/2008)

INCORPORATION DATE

:

28/07/1994

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

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

BUSINESS ADDRESS

:

MDLD 5897, LOT 85, TENGAH NIPAH, JALAN KASTAM BARU, 91100 LAHAD DATU, SABAH, MALAYSIA.

TEL.NO.

:

089-882177

FAX.NO.

:

089-880177

CONTACT PERSON

:

TIANG KON TANG ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

10401

PRINCIPAL ACTIVITY

:

PROCESSING OF PALM KERNELS AND CRUDE PALM OIL

AUTHORISED CAPITAL

:

MYR 30,000,000.00 DIVIDED INTO
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 500,000,000.00 OF MYR 0.01 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 20,000,700.00 DIVIDED INTO
ORDINARY SHARES 20,000,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 70,000 CASH OF MYR 0.01 EACH.

 

 

 

SALES

:

MYR 2,169,233,320 [2011]

NET WORTH

:

MYR 149,322,284 [2011]

M1000 OVERALL RANKING

:

277[2011]

M1000 INDUSTRY RANKING

:

10[2011]

 

 

 

STAFF STRENGTH

:

130 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

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) processing of palm kernels and crude palm oil.

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).

According to the Malaysia 1000 publication, the SC's ranking are as follows:

 

 

 

 

YEAR

2011

 

 

OVERALL RANKING

277

 

 

INDUSTRY RANKING

10

 

 


The immediate holding company of the SC is KUALA LUMPUR KEPONG BERHAD, a company incorporated in MALAYSIA.


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



Name

Address

IC/PP/Loc No

Shareholding

(%)

KUALA LUMPUR KEPONG BERHAD
[PS : 59,500 AND OS: 17,000,000 ]

1, JALAN S P SEENIVASAGAM, 30000 IPOH, PERAK, MALAYSIA.

15043

17,059,500.00

85.00

MITSUBISHI CORPORATION
[PS:10,500 AND OS : 3,000,000]

2-3-1 MARUNOUCHI,CHIYODA -KU TOKYO 100-8086, JAPAN.

XLZ00212218

3,010,500.00

15.00

 

 

 

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

------

 

 

 

20,070,000.00

100.00

 

 

 

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

=====


+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. LEONG SEAN MENG

Address

:

9 HALA BANDAR BARU TAMBUN 17, DESA TAMBUN INDAH, 31400 IPOH, PERAK, MALAYSIA.

IC / PP No

:

5526135

New IC No

:

581219-08-5319

Date of Birth

:

19/12/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

11/07/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

YUJI YAMAGUCHI

Address

:

20-8-E, AZAMINO 3-CHOME, AOBA-KU , YOKOHAMA , KANAGAWA, 225-0011, JAPAN

IC / PP No

:

TZ0403792

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

27/09/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MS. KHOO SAW LOOI

Address

:

11, PERSIARAN GOPENG 9, TAMAN GOLF, 31350 IPOH, PERAK, MALAYSIA.

IC / PP No

:

5677896

New IC No

:

590830-05-5004

Date of Birth

:

30/08/1959

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

22/11/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

TIANG KON TANG

Address

:

LOT 20 , MDLD 593, TAMAN EXECUTIVE , JALAN TENGAH NIPAH , 91100 LAHAD DATU, SABAH, MALAYSIA.

IC / PP No

:

6179486

New IC No

:

610319-08-5737

Date of Birth

:

19/03/1961

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

22/11/2012

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

TIANG KON TANG

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

CHOY MING HAW

 

Position

:

ACCOUNTANT

 

 

 

 

 

3)

Name of Subject

:

HALIJAH

 

Position

:

CHIEF ACCOUNTANT

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

WISMA GEK POH , JALAN DUNLOP , 2ND FLOOR, 91000 TAWAU, SABAH, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. LAU YONG HOOI

 

IC / PP No

:

5052890

 

New IC No

:

560605-08-5963

 

Address

:

3293 TAMAN MAJU JAYA, JALAN CHONG THIEN VUN, 91000 TAWAU, SABAH, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. YAP MIOW KIEN

 

IC / PP No

:

A1171235

 

New IC No

:

681220-05-5334

 

Address

:

12 LINGKARAN MERU VALLEY 1A, LAKEVIEW VILLA,MERU VALLEY GOLF RESORT, JALAN BUKIT MERU, 30020 IPOH, PERAK, 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

 

 

 



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

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

EUROPE

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

PALM KERNELS AND CRUDE PALM OIL

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2011

2010

 

 

GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

130

130

130

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) processing of palm kernels and crude palm oil.

The SC is the related company of KUALA LUMPUR KEPONG BERHAD ("KLK"), is a Malaysian multinational company involved in plantation, manufacturing, property development and retailing.

The SC undertakes the following business operations:

1) Kernel crushing

2) Manufacturing of crude palm oil

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

089-882177

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 1 JALAN S.P. SEENIVASAGAM 30000 IPOH-PERAK

Current Address

:

MDLD 5897, LOT 85, TENGAH NIPAH, JALAN KASTAM BARU, 91100 LAHAD DATU, SABAH, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided belongs to the SC's registered office.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

<3.61%>

]

 

Return on Net Assets

:

Unfavourable

[

<5.99%>

]

 

 

 

 

 

 

 

 

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 incurred losses during the year due to the inefficient control of its operating costs. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

21 Days

]

 

Debtor Ratio

:

Favourable

[

20 Days

]

 

Creditors Ratio

:

Favourable

[

4 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

:

Unfavourable

[

0.79 Times

]

 

Current Ratio

:

Unfavourable

[

1.42 Times

]

 

 

 

 

 

 

 

 

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

<2.47 Times>

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC incurred losses in the year. It did not generate sufficient income to service its interest. If the situation does not improve, the SC may be vulnerable to default in servicing the interest. 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 :

 

 

 

 

 

 

Although the SC's turnover increased its profits however showed a reverse trend. The losses could be due to the management's failure to maintain its competitiveness in the market. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. The SC's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. 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

10401 : Manufacture of crude palm oil

 

 

INDUSTRY :

PALM OIL

 

 

 


Oil palm is one of the main drivers of Malaysia's agriculture sector where it has accounting for 71% of its agricultural land bank. Malaysia is the one of the biggest producers and exporters of palm oil prodcuts inthe growing global need for oils and fats. The palm oil industry is expected to grow about 7.1% over the next 10 years where it is driven by new plantation expansion, venture of large plantation companies into high potential downstream activities such as processed food, biodiesel, second generation biofuel and oleochemicals.


According to MPOB ( Malaysian Palm Oil Board ) statistics in May/June 2012,imports of processed palm oil continue to rise from 88,000 tonnes (May 2012) and 112,000 tonnes (June 2012).Due to the biological stress on oil palm trees and following by the bumper harvest in 2011, Oil production is expected to decline at the end of 2012. The number of palm oil mills in operation in the malaysia has increased from 53 (Dec 31, 2011) to 55 (second quarter 2012), with another 14 new mills at various stages of construction.


The outlook for the palm oil industry is bright, with its price range between RM3,100 and RM3,840 per tonne in first quarter 2012.This is equivalent to about 26.6 % of the global oils and fats trade. Furthemore, at the end of 2012, the demand and the price of palm oil are expected to be increased due to the adverse weather conditions of the production soy bean in South America is expected to be declined by 3 to 5% at the end of 2012.


The unfreezing of India's base import price of refined palm olein is expected to cause insignificant impact to Malaysian refiners as they have already established other downstream markets for their refined crude palm oil (CPO) exports. Furthermore, Malaysia has produced 18.91 million tonnes or 37.65% of the total palm oil production on 2011 and it has accounted for 17.99 million tonnes or 46.27% of the world exports.


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


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

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1994, the SC is a Private Limited company, focusing on processing of palm kernels and crude palm oil. With its long establishment in the market, the SC has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. The SC is well backed by a listed company shareholders which would stimulate further growth for the SC. Hence, the potential growth of the SC is positive. The SC is a large entity with strong capital position. We are confident with the SC's business and its future growth prospect.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. The SC is a fairly large and rapidly growing company with over 130 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.


Despite the higher turnover, the SC suffered pre-tax losses which reflected a highly competitive business environment. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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 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 149,322,284, 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.


The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.


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)

KLK PREMIER OILS SDN. BHD.

 

Financial Year End

30/09/2011

30/09/2010

30/09/2009

30/09/2008

30/09/2007

Months

12

12

12

12

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

2,169,233,320

1,406,025,299

1,337,656,533

1,615,954,279

341,970,345

 

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

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

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

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

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

Total Turnover

2,169,233,320

1,406,025,299

1,337,656,533

1,615,954,279

341,970,345

Costs of Goods Sold

<2,116,305,715>

<1,355,501,918>

-

-

-

 

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

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

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

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

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

Gross Profit

52,927,605

50,523,381

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

<12,562,270>

22,474,042

20,335,570

32,178,429

<7,743,496>

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

<12,562,270>

22,474,042

20,335,570

32,178,429

<7,743,496>

Taxation

7,167,174

<17,793>

<2,700,433>

<7,146,431>

2,959,235

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

<5,395,096>

22,456,249

17,635,137

25,031,998

<4,784,261>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

62,437,398

39,981,349

22,346,212

<2,685,786>

2,098,475

Prior year adjustment

2,279,782

-

-

-

-

 

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

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

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

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

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

As restated

64,717,180

39,981,349

22,346,212

<2,685,786>

2,098,475

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

59,322,084

62,437,598

39,981,349

22,346,212

<2,685,786>

- General

<100>

<200>

-

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

59,321,984

62,437,398

39,981,349

22,346,212

<2,685,786>

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

3,615,320

957,309

2,210,060

-

-

 

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

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

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

 

 

 

3,615,320

957,309

2,210,060

 

 

 

 

 

BALANCE SHEET

 

 

KLK PREMIER OILS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

59,662,851

66,419,951

68,785,686

77,146,604

83,860,823

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Deferred assets

2,261,470

-

-

-

4,714,215

Others

4,008,721

4,080,783

6,520,145

6,594,748

6,669,351

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

6,270,191

4,080,783

6,520,145

6,594,748

11,383,566

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

65,933,042

70,500,734

75,305,831

83,741,352

95,244,389

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

124,812,012

124,564,367

77,996,199

133,290,199

63,514,261

Trade debtors

120,293,977

50,137,772

89,571,500

43,483,710

63,811,508

Other debtors, deposits & prepayments

12,262,099

4,361,033

6,831,564

3,939,855

2,706,691

Short term deposits

-

-

2,500,000

6,700,000

-

Deposits with financial institutions

17,700,000

2,300,000

-

-

-

Amount due from holding company

-

3,634

-

-

-

Amount due from related companies

6,625,188

-

-

-

-

Cash & bank balances

716,430

1,198,841

807,306

6,838,474

112,325

Others

-

-

-

-

650

 

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

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

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

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

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

TOTAL CURRENT ASSETS

282,409,706

182,565,647

177,706,569

194,252,238

130,145,435

 

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

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

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

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

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

TOTAL ASSET

348,342,748

253,066,381

253,012,400

277,993,590

225,389,824

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

24,630,123

26,328,593

20,131,346

41,328,839

23,358,547

Other creditors & accruals

4,174,060

3,149,724

3,298,013

5,327,413

10,239,770

Bill & acceptances payable

99,000,000

-

55,000,000

-

-

Other liabilities & accruals

30,563,885

-

-

-

-

Amounts owing to holding company

1,636,861

-

54,458

-

-

Amounts owing to related companies

39,001,241

30,127,248

9,509,620

100,364,475

-

Provision for taxation

14,294

37,308

13,651

51,271

-

Other liabilities

-

26,000,000

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

199,020,464

85,642,873

88,007,088

147,071,998

33,598,317

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

83,389,242

96,922,774

89,699,481

47,180,240

96,547,118

 

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

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

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

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

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

TOTAL NET ASSETS

149,322,284

167,423,508

165,005,312

130,921,592

191,791,507

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

20,000,700

20,000,800

20,001,000

20,000,000

100,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

20,000,700

20,000,800

20,001,000

20,000,000

100,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

69,999,300

79,999,200

99,999,000

-

-

Capital reserve

300

200

-

-

-

Retained profit/(loss) carried forward

59,321,984

62,437,398

39,981,349

22,346,212

<2,685,786>

 

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

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

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

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

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

TOTAL RESERVES

129,321,584

142,436,798

139,980,349

22,346,212

<2,685,786>

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

149,322,284

162,437,598

159,981,349

42,346,212

<2,585,786>

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

-

4,985,910

5,023,963

2,373,470

-

Others

-

-

-

86,201,910

194,377,293

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

4,985,910

5,023,963

88,575,380

194,377,293

 

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

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

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

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

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

 

149,322,284

167,423,508

165,005,312

130,921,592

191,791,507

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

KLK PREMIER OILS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

716,430

1,198,841

3,307,306

13,538,474

112,325

Net Liquid Funds

716,430

1,198,841

3,307,306

13,538,474

112,325

Net Liquid Assets

<41,422,770>

<27,641,593>

11,703,282

<86,109,959>

33,032,857

Net Current Assets/(Liabilities)

83,389,242

96,922,774

89,699,481

47,180,240

96,547,118

Net Tangible Assets

149,322,284

167,423,508

165,005,312

130,921,592

191,791,507

Net Monetary Assets

<41,422,770>

<32,627,503>

6,679,319

<174,685,339>

<161,344,436>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

0

0

0

Total Liabilities

199,020,464

90,628,783

93,031,051

235,647,378

227,975,610

Total Assets

348,342,748

253,066,381

253,012,400

277,993,590

225,389,824

Net Assets

149,322,284

167,423,508

165,005,312

130,921,592

191,791,507

Net Assets Backing

149,322,284

162,437,598

159,981,349

42,346,212

<2,585,786>

Shareholders' Funds

149,322,284

162,437,598

159,981,349

42,346,212

<2,585,786>

Total Share Capital

20,000,700

20,000,800

20,001,000

20,000,000

100,000

Total Reserves

129,321,584

142,436,798

139,980,349

22,346,212

<2,685,786>

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.00

0.01

0.04

0.09

0.00

Liquid Ratio

0.79

0.68

1.13

0.41

1.98

Current Ratio

1.42

2.13

2.02

1.32

3.87

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

21

32

21

30

68

Debtors Ratio

20

13

24

10

68

Creditors Ratio

4

7

5

9

25

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

0.00

Liabilities Ratio

1.33

0.56

0.58

5.56

<88.16>

Times Interest Earned Ratio

<2.47>

24.48

10.20

0.00

0.00

Assets Backing Ratio

7.44

8.34

8.22

6.52

9.55

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

<0.58>

1.60

1.52

1.99

<2.26>

Net Profit Margin

<0.25>

1.60

1.32

1.55

<1.40>

Return On Net Assets

<5.99>

14.00

13.66

24.58

<4.04>

Return On Capital Employed

<5.99>

14.00

13.66

24.58

<4.04>

Return On Shareholders' Funds/Equity

<3.61>

13.82

11.02

59.11

185.02

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

 

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 :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.