MIRA INFORM REPORT

 

 

Report Date :

29.03.2013

 

IDENTIFICATION DETAILS

 

Name :

SEPANG DYNAMICS SDN. BHD.

 

 

Registered Office :

16b, Jalan Tun Mohd Fuad 1, Taman Tun Dr Ismail, 60000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

20.01.1994

 

 

Com. Reg. No.:

287631-p

 

 

Legal Form :

Private limited (limited by share)

 

 

Line of Business :

Trading of palm oil products, coconut oil and others

 

 

No. of Employees :

10

 

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 :

Usually Correct 

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.

:

287631-P

COMPANY NAME

:

SEPANG DYNAMICS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

20/01/1994

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

16B, JALAN TUN MOHD FUAD 1, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

1ST FLOOR, LOT 9685, LORONG 10, JALAN DATUK ABANG ABDUL RAHIM, OFF JALAN PENDING, 93450 KUCHING, SARAWAK, MALAYSIA.

TEL.NO.

:

082-338240

FAX.NO.

:

082-343400

CONTACT PERSON

:

CHENG TIN KAH ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

46202

PRINCIPAL ACTIVITY

:

TRADING OF PALM OIL PRODUCTS, COCONUT OIL AND OTHERS

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 800,000.00 DIVIDED INTO 
ORDINARY SHARES 420,000 CASH AND 380,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 145,664,957 [2011]

NET WORTH

:

MYR 3,734,474 [2011]

 

 

 

STAFF STRENGTH

:

10 [2013]

BANKER (S)

:

CIMB BANK BHD
HONG LEONG BANK BHD
MALAYAN BANKING BHD
PUBLIC BANK BHD
RHB BANK BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

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, coconut oil and others.

 

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

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. CHENG TIN KAH +

NO. 385, LORONG SONG 1A1, TABUAN HEIGHTS FASA 1, 93350 KUCHING, SARAWAK, MALAYSIA.

590131-13-5275

704,000.00

88.00

MS. ESTHER LEW MEE FONG +

385 LORONG SONG 1A1, TABUAN HEIGHT PHASE 1, 93350 KUCHING, SARAWAK, MALAYSIA.

590403-13-5640

96,000.00

12.00

 

 

 

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

------

 

 

 

800,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. ESTHER LEW MEE FONG

Address

:

385 LORONG SONG 1A1, TABUAN HEIGHT PHASE 1, 93350 KUCHING, SARAWAK, MALAYSIA.

 

 

 

New IC No

:

590403-13-5640

Date of Birth

:

03/04/1959

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

25/11/1996

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHENG TIN KAH

Address

:

NO. 385, LORONG SONG 1A1, TABUAN HEIGHTS FASA 1, 93350 KUCHING, SARAWAK, MALAYSIA.

 

 

 

New IC No

:

590131-13-5275

Date of Birth

:

31/01/1959

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

27/09/1994

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

CHENG TIN KAH

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

KHO SIOK CHENG

 

Position

:

ACCOUNT MANAGER

 

                                  

 

AUDITOR

 

Auditor

:

LAU YAW JOO & CO

Auditor' Address

:

33, LOT 79, CHAN BEE KIEW LANE, 2A, OFF PADUNGAN ROAD, 93450 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LEE SUWI FANG

 

 

 

 

 

New IC No

:

711012-04-5208

 

Address

:

37, JALAN BU 7/5, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. NG LAI CHO

 

 

 

 

 

New IC No

:

651006-10-5102

 

Address

:

1-3-10, ASTANA MUTIARA, JALAN BRP 1/10A, BUKIT RAHMAN PUTRA, 40160 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

2)

Name

:

HONG LEONG BANK BHD

 

 

 

 

 

3)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

4)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

5)

Name

:

RHB BANK BHD

 

 

 

 

 

6)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

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

 

 

ENCUMBRANCE (S)



ENCUMBRANCE 1

Date of Creation

:

14/02/2012

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BERHAD

 

 

 

 

 

 

 

Form 40 Dated 24/02/2012

Registered and Numbered 14 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

15/08/2005

Description Of Charge

:

LETTER OF SETOFF

 

Amount Secured

:

RM300,000.00

Description Of Property Affected

:

ALL MONIES STANDING TO THE CREDIT OF DEPOSIT ACCOUNTS WITH THE CHARGEE IN THE COMPANY NAME

 

Name & Address Of Chargee

:

RHB BANK BHD

WISMA MAHMUD, JALAN SUNGEI SARAWAK, LEVEL 1, 93100 KUCHING, SARAWAK, MALAYSIA.

RHB BANK BHD

WISMA MAHMUD, JALAN SUNGEI SARAWAK, LEVEL 1, 93100 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 22/09/2005

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

21/12/2005

Description Of Charge

:

MEMO OF DEPOSIT

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL MONIES STANDING TO THE CREDIT OF FIXED DEPOSIT RECEIPT

 

Name & Address Of Chargee

:

CIMB BANK BHD

LOT 2691-92, BLOK 10, KCLD, 3RD MILE, ROCK ROAD, 93250 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 6 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

30/07/2008

Description Of Charge

:

MEMO OF DEPOSIT OF FIXED DEPOSIT

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL MONIES STANDING TO THE CREDIT OF FIXED DEPOSIT RECEIPT

 

Name & Address Of Chargee

:

CIMB BANK BHD

LOT 2691-92, BLOK 10, KCLD, 3RD MILE, ROCK ROAD, 93250 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 04/08/2008

Registered and Numbered 8 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

07/10/2009

Description Of Charge

:

LETTER OF SETOFF

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL MONIES STANDING TO THE CREDIT OF FIXED DEPOSIT RECEIPT

 

Name & Address Of Chargee

:

RHB BANK BHD

WISMA MAHMUD, JALAN SUNGAI SARAWAK, LEVEL 1, 93100 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 29/10/2008

Registered and Numbered 9 In The Register of Charges



ENCUMBRANCE 6

Date of Creation

:

27/10/2008

Description Of Charge

:

FACILITY AGREEMENT

 

Amount Secured

:

RM2,400,000.00

Description Of Property Affected

:

ALL THAT PARCEL OF LAND SITUATE AT STAPOK, BATU KAWA ROAD, KUCHING CONTAINING AN AREA OF 4,937 SQ METRES

 

Name & Address Of Chargee

:

RHB BANK BHD

WISMA MAHMUD, JALAN SG SARAWAK, LEVEL 1, 93100 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 29/10/2008

Registered and Numbered 10 In The Register of Charges



ENCUMBRANCE 7

Date of Creation

:

28/08/2009

Description Of Charge

:

MEMO OF LEGAL CHARGE OVER DEPOSITS

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL MONIES STANDING TO THE COMPANY ACCOUNT

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

1-3, MAIN BAZAR, 93000 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 15/09/2009

Registered and Numbered 11 In The Register of Charges



ENCUMBRANCE 8

Date of Creation

:

22/12/2009

Description Of Charge

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPTS

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL MONIES STANDING TO THE FIXED DEPOSIT RECEIPTS IN THE COMPANY NAME

 

Name & Address Of Chargee

:

CIMB BANK BHD

LOT 2691-2, BLOK 10, KCLD, 3RD MILE, ROCK ROAD, 93250 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 29/12/2009

Registered and Numbered 12 In The Register of Charges



ENCUMBRANCE 9

Date of Creation

:

16/07/2008

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 7 In The Register of Charges



ENCUMBRANCE 10

Date of Creation

:

25/04/2011

Description Of Charge

:

LETTER OF SET-OFF OVER FIXED DEPOSIT

 

Amount Secured

:

RM2,310,000.00

Description Of Property Affected

:

LETTER OF SET-OFF OVER THE SUM OF RM 2310000

 

Name & Address Of Chargee

:

HONG LEONG BANK BHD

KUCHING BUSINESS CENTRE, JALAN PENDING, 2ND FLOOR, 93450 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 28/04/2011

Registered and Numbered 13 In The Register of Charges



ENCUMBRANCE 11

Date of Creation

:

17/04/2012

Description Of Charge

:

AGREEMENT AND CHARGE

 

Amount Secured

:

RM354,000.00

Description Of Property Affected

:

ALL THAT PARCEL OF LAND

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

7,8 & 9, JALAN CHAN BEE KIEW, OFF JALAN PADUNGAN, 93100 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 19/04/2012

Registered and Numbered 15 In The Register of Charges

 

LEGAL CHECK AGAINST SC


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

No legal action was found in our databank. 

No winding up petition was found in our databank. 

DEFAULTER CHECK AGAINST SC


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

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

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A

 

 

 


The SC refused to disclose its suppliers. 

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

Percentage

:

90%

 

 

 

 

 

 

Overseas

:

YES

Percentage

:

10%

Export Market

:

ASIA

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

PALM KERNEL OIL, COCONUT OIL AND PALM KERNEL OIL

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

2008

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

10

10

10

10

11

12

 

 

 

 

Branch

:

NO

 

 

Other Information:


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

The SC sells coconut oil, palm kernel oil, copra cake and palm kernel cake.

Also exporter of RBD Palm Olein and palm oil for soap making such as palm acid oil, palm stearin, PFAD, PKFAD abd residue

The SC is also the leading distributor of plant & animal oil ,edible fats & oils ,agriculture & by-product agent.

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

082338240

Current Telephone Number

:

082-338240

Match

:

YES

 

 

 

Address Provided by Client

:

SECTION 66, JALAN TEKAD BINTAWA INDUSTRIAL ESTATE SARAWAK MALAYSIA

Current Address

:

1ST FLOOR, LOT 9685, LORONG 10, JALAN DATUK ABANG ABDUL RAHIM, OFF JALAN PENDING, 93450 KUCHING, SARAWAK, 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 warehouse.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

20.61%

]

 

Return on Net Assets

:

Favourable

[

44.75%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.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

:

Favourable

[

17 Days

]

 

Debtor Ratio

:

Favourable

[

13 Days

]

 

Creditors Ratio

:

Favourable

[

11 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

[

0.76 Times

]

 

Current Ratio

:

Unfavourable

[

1.07 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

[

2.37 Times

]

 

Gearing Ratio

:

Unfavourable

[

1.02 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. The SC was highly geared, thus it had a high financial risk. The SC was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the SC will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the SC has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the SC's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. 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. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. The SC's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the SC : FAIR

 

 

 

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 1994, the SC is a Private Limited company, focusing on trading of palm oil products, coconut oil and others. Having been in the industry for over a decade, 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. The SC is considered as a medium size company with issued and paid up capital standing at MYR 800,000. 


Apart from supplying its products to the local market, the SC also exports to overseas countries. Its ability to penetrate into the global market has benefited the SC in terms of higher profitability and well diversified its business risk. Hence, better growth prospect can be expected. To date, the SC's business operation is supported by 10 employees. 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. However, 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. The high gearing ratio clearly implied that the SC was supported by more debt than equity. However, given a positive net worth standing at MYR 3,734,474, the SC should be able to maintain its business in the near terms.


Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.


The SC's 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. The SC however faces moderate business risk as it has to compete with many well established players in the same field.


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

 

PROFIT AND LOSS ACCOUNT

 

 

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

SEPANG DYNAMICS SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

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

SUMMARY

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

145,664,957

104,319,579

108,624,695

83,733,633

33,003,151

Other Income

541,620

516,065

-

-

-

 

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

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

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

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

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

Total Turnover

146,206,577

104,835,644

108,624,695

83,733,633

33,003,151

Costs of Goods Sold

<143,281,859>

<100,688,559>

-

-

-

 

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

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

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

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

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

Gross Profit

2,924,718

4,147,085

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

986,576

2,198,530

893,049

740,438

601,847

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

986,576

2,198,530

893,049

740,438

601,847

Taxation

<216,896>

<563,730>

<234,197>

<53,665>

<93,403>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

769,680

1,634,800

658,852

686,773

508,444

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

2,664,794

2,029,994

1,671,142

984,369

475,925

 

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

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

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

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

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

As restated

2,664,794

2,029,994

1,671,142

984,369

475,925

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

3,434,474

3,664,794

2,329,994

1,671,142

984,369

- General

-

-

<300,000>

-

-

DIVIDENDS - Ordinary (paid & proposed)

<500,000>

<1,000,000>

-

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,934,474

2,664,794

2,029,994

1,671,142

984,369

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

9,033

4,360

-

24,866

39,038

Bankers' acceptance

698,261

453,201

-

-

-

Hire purchase

12,490

38,191

-

43,130

1,948

Others

-

-

-

184,347

111,434

 

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

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

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

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

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

 

719,784

495,752

-

252,343

152,420

 

 

 

BALANCE SHEET

 

 

SEPANG DYNAMICS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

2,218,441

1,428,045

1,453,288

1,662,951

707,281

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

2,218,441

1,428,045

1,453,288

1,662,951

707,281

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

6,801,393

7,552,157

-

5,901,312

5,062,614

Trade debtors

5,373,079

5,360,241

-

2,731,512

3,436,577

Other debtors, deposits & prepayments

1,271,834

883,929

-

409,294

123,115

Short term deposits

7,684,695

3,348,743

-

1,697,223

824,377

Amount due from director

294,925

-

-

-

-

Cash & bank balances

1,899,004

2,277,388

-

241,897

12,472

Others

209,917

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

23,534,847

19,422,458

15,374,027

10,981,238

9,459,155

 

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

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

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

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

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

TOTAL ASSET

25,753,288

20,850,503

16,827,315

12,644,189

10,166,436

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

4,510,546

5,487,626

-

4,630,219

5,651,197

Other creditors & accruals

890,434

125,157

-

149,882

122,521

Hire purchase & lease creditors

58,496

229,194

-

327,010

33,130

Bank overdraft

-

-

-

264,100

503,521

Other borrowings

3,717,736

-

-

-

-

Bill & acceptances payable

12,658,000

10,835,000

-

4,378,000

2,417,000

Amounts owing to director

-

138,859

-

174,631

155,875

Provision for taxation

105,384

469,741

-

13,111

36,140

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

21,940,596

17,285,577

13,686,557

9,936,953

8,919,384

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,594,251

2,136,881

1,687,470

1,044,285

539,771

 

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

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

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

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

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

TOTAL NET ASSETS

3,812,692

3,564,926

3,140,758

2,707,236

1,247,052

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

800,000

800,000

800,000

500,000

200,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

800,000

800,000

800,000

500,000

200,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

2,934,474

2,664,794

2,029,994

1,671,142

984,369

 

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

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

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

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

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

TOTAL RESERVES

2,934,474

2,664,794

2,029,994

1,671,142

984,369

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,734,474

3,464,794

2,829,994

2,171,142

1,184,369

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Hire purchase creditors

46,183

80,325

-

536,094

52,489

Deferred taxation

32,035

19,807

-

-

10,194

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

78,218

100,132

310,764

536,094

62,683

 

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

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

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

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

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

 

3,812,692

3,564,926

3,140,758

2,707,236

1,247,052

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

SEPANG DYNAMICS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

9,583,699

5,626,131

-

1,939,120

836,849

Net Liquid Funds

9,583,699

5,626,131

-

1,675,020

333,328

Net Liquid Assets

<5,207,142>

<5,415,276>

1,687,470

<4,857,027>

<4,522,843>

Net Current Assets/(Liabilities)

1,594,251

2,136,881

1,687,470

1,044,285

539,771

Net Tangible Assets

3,812,692

3,564,926

3,140,758

2,707,236

1,247,052

Net Monetary Assets

<5,285,360>

<5,515,408>

1,376,706

<5,393,121>

<4,585,526>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

3,822,415

309,519

-

1,127,204

589,140

Total Liabilities

22,018,814

17,385,709

13,997,321

10,473,047

8,982,067

Total Assets

25,753,288

20,850,503

16,827,315

12,644,189

10,166,436

Net Assets

3,812,692

3,564,926

3,140,758

2,707,236

1,247,052

Net Assets Backing

3,734,474

3,464,794

2,829,994

2,171,142

1,184,369

Shareholders' Funds

3,734,474

3,464,794

2,829,994

2,171,142

1,184,369

Total Share Capital

800,000

800,000

800,000

500,000

200,000

Total Reserves

2,934,474

2,664,794

2,029,994

1,671,142

984,369

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.44

0.33

-

0.20

0.09

Liquid Ratio

0.76

0.69

-

0.51

0.49

Current Ratio

1.07

1.12

1.12

1.11

1.06

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

17

26

-

26

56

Debtors Ratio

13

19

-

12

38

Creditors Ratio

11

20

-

20

62

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

1.02

0.09

-

0.52

0.50

Liabilities Ratio

5.90

5.02

4.95

4.82

7.58

Times Interest Earned Ratio

2.37

5.43

-

3.93

4.95

Assets Backing Ratio

4.77

4.46

3.93

3.38

1.56

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

0.68

2.11

0.82

0.88

1.82

Net Profit Margin

0.53

1.57

0.61

0.82

1.54

Return On Net Assets

44.75

75.58

28.43

36.67

60.48

Return On Capital Employed

44.08

71.01

28.43

30.10

42.29

Return On Shareholders' Funds/Equity

20.61

47.18

23.28

31.63

42.93

Dividend Pay Out Ratio (Times)

0.65

0.61

-

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

-

0

0



FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

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.