MIRA INFORM REPORT

 

 

Report Date :

15.03.2013

 

IDENTIFICATION DETAILS

 

Name :

FELDA MARKETING SERVICES SDN BHD

 

 

Registered Office :

Balai Felda, Jalan Gurney 1, 3rd Floor, 54000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

03.08.1995

 

 

Com. Reg. No.:

353807-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Palm Oil Products

 

 

No. of Employees :

60

 

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 :

Satisfactory

 

 

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

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

353807-M

COMPANY NAME

:

FELDA MARKETING SERVICES SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

03/08/1995

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

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

BUSINESS ADDRESS

:

BALAI FELDA, 5TH FLOOR, JALAN GURNEY 1, 54000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-26005888 / 26922996

FAX.NO.

:

03-26913426 / 3050

WEB SITE

:

www.felda.net.my

CONTACT PERSON

:

EHSAN BAHAUDIN ( CEO )

INDUSTRY CODE

:

46202

PRINCIPAL ACTIVITY

:

TRADING OF PALM OIL PRODUCTS

AUTHORISED CAPITAL

:

MYR 25,000,000.00 DIVIDED INTO
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 17,000,000.00 DIVIDED INTO
ORDINARY SHARES 3 CASH AND 16,999,997 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 681,786,184 [2011]

NET WORTH

:

MYR 176,687,279 [2011]

STAFF STRENGTH

:

60 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

NIL

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) trading of palm oil products.

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

The immediate holding company of the SC is FELDA PALM INDUSTRIES SDN BHD, a company incorporated in MALAYSIA.

The ultimate holding company of the SC is KOPERASI PERMODALAN FELDA BERHAD, a company incorporated in MALAYSIA.

The penultimate holding company of the SC is FELDA HOLDINGS BERHAD, a company incorporated in MALAYSIA.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

FELDA PALM INDUSTRIES SDN BHD

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

359584

8,670,000.00

51.00

KOPERASI PERMODALAN FELDA BERHAD

BANGUNAN BLOK J, ANJUNG FELDA, JALAN MAKTAB, 54000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

8,330,000.00

49.00

 

 

 

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

------

 

 

 

17,000,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. DZULKIFLI BIN ABD WAHAB

Address

:

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

New IC No

:

550428-05-5333

Date of Birth

:

28/04/1955

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

04/01/2010

 

DIRECTOR 2

 

Name Of Subject

:

MR. R SHARIFUDDIN HIZAN BIN R ZAINAL ABIDIN

Address

:

NO. 7, LORONG 7A, TAMAN SRI UKAY, 68000 AMPANG, SELANGOR, MALAYSIA.

New IC No

:

460121-08-5395

Date of Birth

:

21/01/1946

Nationality

:

MALAYSIAN

Date of Appointment

:

02/01/2008

 

DIRECTOR 3

 

Name Of Subject

:

DATO' SABRI BIN AHMAD, DATO`

Address

:

NO 108, JALAN ATHINAHAPAN DUA, TAMAN TUN DR.ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

470520-08-5519

Date of Birth

:

20/05/1947

Nationality

:

MALAYSIAN

Date of Appointment

:

15/07/2010

 

DIRECTOR 4

 

Name Of Subject

:

MR. HANAPI BIN SUHADA

Address

:

345, JALAN SERI PAGI 7, TAMAN SERI PAGI, 70400 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

IC / PP No

:

5209218

New IC No

:

570515-05-5575

Date of Birth

:

15/05/1957

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

04/01/2010

 

DIRECTOR 5

 

Name Of Subject

:

MR. RAMLI BIN PUTIH

Address

:

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

New IC No

:

530916-02-5231

Date of Birth

:

16/09/1953

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/02/2006

 

DIRECTOR 6

 

Name Of Subject

:

MR. SUHAIMI BIN ZAINUDDIN

Address

:

21,JALAN 15, TAMAN GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.

New IC No

:

540621-08-5041

Date of Birth

:

21/06/1954

Nationality

:

MALAYSIAN

Date of Appointment

:

03/01/2007

 

DIRECTOR 7

 

Name Of Subject

:

MR. MEGAT DZIAUDDIN BIN MEGAT MAHMUD

Address

:

64,LENGKOK ZAABA, TAMAN TUN DR.ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

460203-08-5057

Date of Birth

:

03/02/1946

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/02/2006

 

DIRECTOR 8

 

Name Of Subject

:

MR. SARCHU BIN SAWAL

Address

:

26,JALAN G2, TAMAN MELAWATI, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

490129-01-5495

Date of Birth

:

29/01/1949

Nationality

:

MALAYSIAN

Date of Appointment

:

03/01/2007

 

DIRECTOR 9

 

Name Of Subject

:

MR. KHAMIS BIN MOHAMED SOM

Address

:

NO.7262,TAMAN SERI SETIA, GOMBAK, ., 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

490524-01-5313

Date of Birth

:

24/05/1949

Nationality

:

MALAYSIAN

Date of Appointment

:

14/12/1995



MANAGEMENT

 

 

 

1)

Name of Subject

:

EHSAN BAHAUDIN

 

Position

:

CEO

 

 

 

 

 

2)

Name of Subject

:

SITI AISHAH ABD RAHMAN

 

Position

:

FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

MOHD IDRIS ISMAIL

 

Position

:

GENERAL MANAGER

 

 

 

 

 

4)

Name of Subject

:

MOHD GHAZALI ISMAIL

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

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

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. IDA SURYATI BINTI AB RAHIM

 

New IC No

:

720404-03-5740

 

Address

:

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

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

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

 

 

ENCUMBRANCE (S)


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

Percentage

:

100%

Overseas

:

NO

Percentage

:

0%


The SC's products are sourced from Felda Group of Companies.

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

:

30%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

70%

Export Market

:

WORLDWIDE

Credit Term

:

30 - 60 DAYS

Payment Mode

:

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

 

 

OPERATIONS

 

Goods Traded

:

PALM OIL PRODUCTS

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2003

 

Competitor(s)

:

AMBROSIA SDN BHD
FELDA IFFCO TRADING SDN BHD
PACIFIC OILS & FATS INDUSTRIES SDN BHD
PALMBASE (M) SDN BHD
SIME DARBY FUTURES TRADING SDN BHD

 

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

60

60

60

66

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of palm oil products.

We were informed that the SC acts as the marketing arm of the Felda Group of Companies.

The SC involved in the sales of palm products and trades in physicals and paper futures.

It offers a wide range of products includes as follows:

* Crude Palm Oil

* Crude Palm Olein

* RBD Palm Oil

* RBD Palm Olein

* RBD Palm Stearin

* Palm Fatty Acid Distillate

* Crude Palm Kernel Oil

* RBD Palm Kernel Oil

* Palm Kernels

* Palm Kernels Expeller

Besides that the SC has a Regional Sales Office based in London, United Kingdom.

 

 

PROJECTS


No projects found in our databank

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0326005888 / 26922996

Current Telephone Number

:

03-26005888 / 26922996

Match

:

N/A

 

 

 

Address Provided by Client

:

BALAI FELDA, 5TH FLOOR,JALAN GURNEY 1,54000,KUALA LUMPUR,WILAYAH PERSEKUTUAN.

Current Address

:

BALAI FELDA, 5TH FLOOR, JALAN GURNEY 1, 54000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

N/A

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 9th January 2013 we contacted one of the staff from the Accounts Department. She provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

10.24%

]

 

Return on Net Assets

:

Acceptable

[

13.81%

]

 

 

 

 

 

 

 

 

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 profit fell sharply because of the high operating costs incurred. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Nil

[

0 Days

]

 

Debtor Ratio

:

Unfavourable

[

91 Days

]

 

Creditors Ratio

:

Favourable

[

16 Days

]

 

 

 

 

 

 

 

 

As the SC is a service oriented company, the SC does not need to keep stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. 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

:

Favourable

[

1.42 Times

]

 

Current Ratio

:

Unfavourable

[

1.42 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Acceptable

[

0.83 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was nil as it did not pay any interest during the year. The SC's gearing was slightly high. The SC is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the SC. It will be more vulnerable in times of economy downturn.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the SC's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the SC's profit margin. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the SC's performance may deteriorate in the coming year.

 

 

 

 

 

 

 

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

46202 : Wholesale of 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 1995, the SC is a Private Limited company, focusing on trading of palm oil products. Having been in the industry for 18 years, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. 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.


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. Being a moderate size company, the SC has a total workforce of 60 employees in its business operations. Overall, we regard that the SC's management capability is average.


Financially, the SC registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. 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. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. The gearing level of the SC is slightly high, therefore it faces moderate financial risk. However, given a positive net worth standing at MYR 176,687,279, the SC should be able to maintain its business in the near terms.


We noted that the SC's supplies are solely sourced from local market. Being highly dependent on a limited number of suppliers could lead to delays, lost of revenue and increased costs if such resources become unavailable or shortage.


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)

FELDA MARKETING SERVICES SDN BHD

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

TURNOVER

681,786,184

537,532,265

395,302,384

182,972,168

 

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

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

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

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

Total Turnover

681,786,184

537,532,265

395,302,384

182,972,168

Costs of Goods Sold

<652,495,952>

<506,374,301>

-

-

 

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

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

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

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

Gross Profit

29,290,232

31,157,964

-

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

24,474,211

78,081,873

16,025,658

6,594,708

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

24,474,211

78,081,873

16,025,658

6,594,708

Taxation

<6,388,475>

<4,261,932>

<6,673,066>

<4,631,552>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

18,085,736

73,819,941

9,352,592

1,963,156

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

116,668,955

63,093,405

60,115,813

89,772,657

Prior year adjustment

-

<7,463,625>

-

-

 

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

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

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

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

As restated

116,668,955

55,629,780

60,115,813

89,772,657

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

134,754,691

129,449,721

69,468,405

91,735,813

DIVIDENDS - Ordinary (paid & proposed)

<5,100,000>

<12,780,766>

<6,375,000>

<31,620,000>

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

129,654,691

116,668,955

63,093,405

60,115,813

 

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

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

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

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

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

FELDA MARKETING SERVICES SDN BHD

 

ASSETS EMPLOYED:                                                                                                             

FIXED ASSETS

1,155,747

744,132

765,821

1,266,481

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Subsidiary companies

-

-

-

5,577,956

Associated companies

20,000

20,000

29,020,442

29,020,442

Investment properties

829,320

878,934

928,547

4

Deferred assets

-

881,340

1,132,706

1,867,703

Others

95,198,041

90,203,320

2,925,000

-

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

96,047,361

91,983,594

34,006,695

36,466,105

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

97,203,108

92,727,726

34,772,516

37,732,586

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Short term quoted/unquoted investments

-

-

-

14,300

Stocks

-

-

31,813,597

8,391,290

Trade debtors

169,060,158

111,313,782

66,965,214

135,765,152

Other debtors, deposits & prepayments

969,593

12,359,509

15,275,625

393,792

Short term deposits

57,882,464

36,463,288

71,750,110

47,352,208

Amount due from holding company

30,617,385

6,151,489

4,869,460

4,351,954

Amount due from related companies

5,253,990

4,532,801

39,928,640

5,607,610

Amount due from associated companies

2,410,074

3,158,000

-

-

Cash & bank balances

3,795,950

20,952,911

27,394,607

5,265,771

Others

2,253,489

-

1,718,459

14,498,755

 

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

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

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

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

TOTAL CURRENT ASSETS

272,243,103

194,931,780

259,715,712

221,640,832

 

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

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

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

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

TOTAL ASSET

369,446,211

287,659,506

294,488,228

259,373,418

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

29,145,569

10,091,245

31,673,050

6,611,642

Other creditors & accruals

5,698,240

4,055,848

13,521,619

10,126,722

Short term borrowings/Term loans

147,134,575

104,114,084

134,331,537

112,584,000

Other liabilities & accruals

1,062,679

5,719,950

-

-

Amounts owing to holding company

3,789,370

-

-

-

Amounts owing to related companies

5,443,533

4,544,878

9,233,329

14,705,653

Dividends payable/proposed

-

-

-

12,750,000

Other liabilities

-

324,786

-

-

 

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

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

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

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

TOTAL CURRENT LIABILITIES

192,273,966

128,850,791

188,759,535

156,778,017

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

79,969,137

66,080,989

70,956,177

64,862,815

 

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

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

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

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

TOTAL NET ASSETS

177,172,245

158,808,715

105,728,693

102,595,401

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

17,000,000

17,000,000

17,000,000

17,000,000

 

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

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

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

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

TOTAL SHARE CAPITAL

17,000,000

17,000,000

17,000,000

17,000,000

 

 

 

 

 

RESERVES

 

 

 

 

Share premium

25,479,588

25,479,588

25,479,588

25,479,588

Retained profit/(loss) carried forward

129,654,691

116,668,955

63,093,405

60,115,813

Others

4,553,000

<441,721>

-

-

 

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

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

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

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

TOTAL RESERVES

159,687,279

141,706,822

88,572,993

85,595,401

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

176,687,279

158,706,822

105,572,993

102,595,401

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Deferred taxation

404,031

-

-

-

Retirement benefits provision

-

-

155,700

-

Others

80,935

101,893

-

-

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

484,966

101,893

155,700

-

 

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

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

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

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

 

177,172,245

158,808,715

105,728,693

102,595,401

 

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

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

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

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

 

 

 

 

 

Contingent Liabilities

2,000,000

2,000,000

5,000,000

5,000,000

 

 

 

FINANCIAL RATIO

 

 

FELDA MARKETING SERVICES SDN BHD

 

TYPES OF FUNDS

 

 

 

 

Cash

61,678,414

57,416,199

99,144,717

52,617,979

Net Liquid Funds

61,678,414

57,416,199

99,144,717

52,617,979

Net Liquid Assets

79,969,137

66,080,989

39,142,580

56,471,525

Net Current Assets/(Liabilities)

79,969,137

66,080,989

70,956,177

64,862,815

Net Tangible Assets

177,172,245

158,808,715

105,728,693

102,595,401

Net Monetary Assets

79,484,171

65,979,096

38,986,880

56,471,525

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

147,134,575

104,114,084

134,331,537

112,584,000

Total Liabilities

192,758,932

128,952,684

188,915,235

156,778,017

Total Assets

369,446,211

287,659,506

294,488,228

259,373,418

Net Assets

177,172,245

158,808,715

105,728,693

102,595,401

Net Assets Backing

176,687,279

158,706,822

105,572,993

102,595,401

Shareholders' Funds

176,687,279

158,706,822

105,572,993

102,595,401

Total Share Capital

17,000,000

17,000,000

17,000,000

17,000,000

Total Reserves

159,687,279

141,706,822

88,572,993

85,595,401

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.32

0.45

0.53

0.34

Liquid Ratio

1.42

1.51

1.21

1.36

Current Ratio

1.42

1.51

1.38

1.41

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

0

0

29

17

Debtors Ratio

91

76

62

271

Creditors Ratio

16

7

29

13

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.83

0.66

1.27

1.10

Liabilities Ratio

1.09

0.81

1.79

1.53

Times Interest Earned Ratio

0.00

0.00

0.00

0.00

Assets Backing Ratio

10.42

9.34

6.22

6.04

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

3.59

14.53

4.05

3.60

Net Profit Margin

2.65

13.73

2.37

1.07

Return On Net Assets

13.81

49.17

15.16

6.43

Return On Capital Employed

13.81

49.17

15.16

6.43

Return On Shareholders' Funds/Equity

10.24

46.51

8.86

1.91

Dividend Pay Out Ratio (Times)

0.28

0.17

0.68

16.11

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

2,000,000

2,000,000

5,000,000

5,000,000

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.44

UK Pound

1

Rs.81.33

Euro

1

Rs.70.50

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

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.