MIRA INFORM REPORT

 

 

Report Date :

11.05.2013

 

IDENTIFICATION DETAILS

 

Name :

BASF PETRONAS CHEMICALS SDN BHD

 

 

Registered Office :

The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Level 18, 59200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

28.10.1997

 

 

Com. Reg. No.:

451307-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Petrochemicals

 

 

No. of Employees :

600

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

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

Fairly Large

 

Status :

Good

 

 

Payment Behaviour :

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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.

:

451307-K

COMPANY NAME

:

BASF PETRONAS CHEMICALS SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

28/10/1997

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

2, JALAN U8/87, SEKSYEN U8, BUKIT JELUTONG, 40706 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78412200

FAX.NO.

:

03-78466624

EMAIL

:

INFO.SERVICE@BASF-PETRONAS.COM.MY

WEB SITE

:

WWW.BASF-PETRONAS.COM.MY

CONTACT PERSON

:

JOACHIM QUEISSER ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

20291

PRINCIPAL ACTIVITY

:

MANUFACTURING OF PETROCHEMICALS

AUTHORISED CAPITAL

:

MYR 2,400,000,000.00 DIVIDED INTO
ORDINARY SHARE 2,375,000.00 OF MYR 1,000.00 EACH.
PREFERENCE SHARE 25,000.00 OF MYR 1,000.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000,000.00 DIVIDED INTO
ORDINARY SHARES 1,000,000 CASH OF MYR 1,000.00 EACH.

 

 

 

SALES

:

MYR 3,453,945,000 [2011]

NET WORTH

:

MYR 1,210,213,000 [2011]

M1000 OVERALL RANKING

:

199[2011]

M1000 INDUSTRY RANKING

:

8[2011]

 

 

 

STAFF STRENGTH

:

600 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND


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

The SC is principally engaged in the (as a / as an) manufacturing of petrochemicals.

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

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

 

 

 

 

 

 

YEAR

2011

2009

2008

2005

2004

 

OVERALL RANKING

199

114

109

179

278

 

INDUSTRY RANKING

8

3

4

3

6

 


The immediate holding company of the SC is BASF NEDERLAND B.V., a company incorporated in NETHERLANDS.

The ultimate holding company of the SC is BASF SE, a company incorporated in GERMANY.


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



Name

Address

IC/PP/Loc No

Shareholding

(%)

BASF NEDERLAND B.V.

POSTBUS 1019 GREBOUW RIJNPOORT GRONINGGENSINGEL NL-6835EA ARNHEM 1, NETHERLANDS.

XLZ00215709

600,000.00

60.00

PETRONAS CHEMICALS GROUP BERHAD

TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

459830

400,000.00

40.00

 

 

 

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

------

 

 

 

1,000,000.00

100.00

 

 

 

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

=====


+ Also Director

 





DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

PROFESSOR DR. RAINER DIERCKS

Address

:

PHILIPP-MELANCHTHON-STRABE 21, 67346 SPEYER, GERMANY

IC / PP No

:

225206719

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

24/02/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. ABD HAPIZ BIN ABDULLAH

Address

:

24,JALAN SERUNAI 2, TAMAN KLANG JAYA, 41200 KLANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

581007-10-6261

Date of Birth

:

07/10/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

09/06/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. WAN ZULKIFLEE BIN WAN ARIFFIN

Address

:

5, JALAN 14/1, TAMAN TAR, 68000 AMPANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

600819-07-5545

Date of Birth

:

19/08/1960

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/08/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

SAORI ULRIKE DUBOURG

Address

:

SUITE 2701, PASIFIC PLACE APARTMENTS, PACIFIC PLACE, 88, QUEEENSWAY, HONG KONG

IC / PP No

:

646750091

 

 

 

 

 

 

 

 

 

Nationality

:

GERMAN

Date of Appointment

:

10/11/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

DR JOACHIM ALEXANDER QUEISSER

Address

:

HOUSE NO.45, KIARA HILLS, NO.1, JALAN 32/70A, TAMAN SRI HARTAMAS, 52480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

C5JCTJLJK

 

 

 

Date of Birth

:

12/05/1967

 

 

 

Nationality

:

DEUTSCH

Date of Appointment

:

01/08/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

DR TORSTEN PENKUHN, DR.

Address

:

34 DAKOTA CRESCENT, #19-01 DAKOTA, RESIDENCE, 399936, SINGAPORE.

IC / PP No

:

C4KH5HP60

 

 

 

 

 

 

 

 

 

Nationality

:

DUTCH

Date of Appointment

:

16/01/2012



MANAGEMENT

 

 

 

1)

Name of Subject

:

JOACHIM QUEISSER

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

PATRICK TONG

 

Position

:

FINANCE DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

NORASHIKIN MOKHTAR

 

Position

:

SENIOR FINANCE MANAGER

 

 

 

 

 

4)

Name of Subject

:

VOLKER SEIDL

 

Position

:

MARKETING DIRECTOR

 

 

 

 

 

5)

Name of Subject

:

SURAYA

 

Position

:

ASSISTANT HUMAN RESOURCES DIRECTOR

 

 

 

 

 

6)

Name of Subject

:

ELIZABETH

 

Position

:

CORPORATE COMMUNICATIONS MANAGER

 

 

 

 

 

7)

Name of Subject

:

JASON CHOI KAM HENG

 

Position

:

MAINTENANCE MANAGER

 

 

 

AUDITOR

 

Auditor

:

KPMG DESA MEGAT & CO

Auditor' Address

:

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

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. PATRICK TONG BING

 

 

 

 

 

New IC No

:

521211-13-5241

 

Address

:

3B-07-03, SAUJANA BUNGARAYA CONDO, SEKSYEN U2, 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

:

60%

Overseas

:

YES

Percentage

:

40%

Import Countries

:

EUROPE,UNITED STATES


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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

60%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

40%

Export Market

:

AUSTRALIA

INDIA

NEW ZEALAND

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

GAMMA BUTYROLACTONE, TETRAHYDROFURANCE, ACRYLIC ACID, ACRYLIC ESTERS

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

OWNED

 

Factory / Premises

:

JALAN GEBENG 2/1, KAWASAN PERINDUSTRIAN GEBENG,, 26080 KUANTAN, PAHANG, MALAYSIA.
Tel No: 09-5855000
Fax No: 09-5834623

 

 

 

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

 

 

GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

600

610

900

 

 

 

 

 

 

 

Branch

:

YES

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of petrochemicals.

The SC is a well-known name in the chemical industry and it produces and markets a wide range of essential chemical products.

The SC owns a world-class integrated Chemical site in Gebeng, Pahang. It has an annual production output of approximately 1 million metric tonnes, which makes the site one of the largest integrated chemical sites in the Asia-Pacific region.

This 'verbund' (integrated) chemical production facility sited in Gebeng, Kuantan, Pahang Darul Makmur is the first such facility for BASF in the Asia Pacific, manufacturing acrylic, oxo-products and butanediol.

The SC's plants can be categorised into:

1) Plant 1 - Acrylic O Complex

2) Plant 2 - OXO Complex

3) Plant 3 - BDO Complex

The SC processes and refines petrochemical products and the end products are raw materials and ingredients for general purposes.

The SC's product is Petrochemicals which is ethylene and propylene ( for plastic products),oxygenated, halogen-free are essential to the production of many pharmaceutical, paints and cosmetic products.

The end-products are among others plastics, adhesives, paints, lacquers, paper, diapers, automobile and industrial coatings, pharmaceuticals, fine chemicals, textiles, leather and personal care materials.

The SC utilizes advanced automated and semi-automated machineries to ensure production of high quality products.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-78412200

Match

:

N/A

 

 

 

Address Provided by Client

:

2, JALAN U8/87, SEKSYEN U8, BUKIT JELUTONG,40706,SHAH ALAM,SELANGOR.

Current Address

:

2, JALAN U8/87, SEKSYEN U8, BUKIT JELUTONG, 40706 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Favourable

[

82.70%

]

 

Return on Net Assets

:

Favourable

[

97.69%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

19 Days

]

 

Debtor Ratio

:

Favourable

[

24 Days

]

 

Creditors Ratio

:

Favourable

[

2 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

:

Favourable

[

3.01 Times

]

 

Current Ratio

:

Favourable

[

3.76 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

:

Favourable

[

406.48 Times

]

 

Gearing Ratio

:

Favourable

[

0.02 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

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. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : STRONG

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 

 

INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

 

 

 

 

 



INDUSTRY ANALYSIS

 

MSIC CODE

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

 

 

INDUSTRY :

MANUFACTURING

 


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


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


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


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


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


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


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

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1997, the SC is a Private Limited company, focusing on manufacturing of petrochemicals. 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. Having strong support from its shareholder has enabled the SC to remain competitive despite the challenging business environment. The SC is a large entity with strong capital position. We are confident with the SC's business and its future growth prospect.


Over the years, the SC has 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 large entity, the SC has a steady workforce of 600 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright.


Financially, the SC registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The SC has generated a favourable return based on its existing shareholders' funds 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. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 1,210,213,000, the SC should be able to maintain its business in the near terms.


The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.


We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.


In view of the above favourable condition, we recommend credit be proceeded to the SC with favourable term.

 

PROFIT AND LOSS ACCOUNT

 

 

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

BASF PETRONAS CHEMICALS 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

FULL

FULL

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

3,453,945,000

3,427,887,000

1,947,889,000

2,441,060,000

2,806,959,000

 

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

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

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

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

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

Total Turnover

3,453,945,000

3,427,887,000

1,947,889,000

2,441,060,000

2,806,959,000

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

1,196,972,000

1,294,401,000

237,782,000

<209,049,000>

475,188,000

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,196,972,000

1,294,401,000

237,782,000

<209,049,000>

475,188,000

Taxation

<196,161,000>

24,239,000

<2,621,000>

67,321,000

<131,792,000>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,000,811,000

1,318,640,000

235,161,000

<141,728,000>

343,396,000

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

666,516,000

361,876,000

114,250,000

255,978,000

<87,418,000>

Prior year adjustment

-

-

22,465,000

-

-

 

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

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

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

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

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

As restated

666,516,000

361,876,000

136,715,000

255,978,000

<87,418,000>

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,667,327,000

1,680,516,000

371,876,000

114,250,000

255,978,000

TRANSFER TO RESERVES - Statutory

-

-

<10,000,000>

-

-

- General

-

<4,000,000>

-

-

-

DIVIDENDS - Ordinary (paid & proposed)

<1,250,000,000>

<1,010,000,000>

-

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

417,327,000

666,516,000

361,876,000

114,250,000

255,978,000

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Lease interest

2,947,000

-

-

-

-

Others

5,000

5,000

4,000

4,525,000

-

 

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

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

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

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

 

 

2,952,000

5,000

4,000

4,525,000

 

 

 

 

BALANCE SHEET

 

 

BASF PETRONAS CHEMICALS SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

533,463,000

485,844,000

730,936,000

1,047,686,000

1,608,206,000

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Deferred assets

32,612,000

26,254,000

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

32,612,000

26,254,000

-

-

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

566,075,000

512,098,000

730,936,000

1,047,686,000

1,608,206,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

180,323,000

166,595,000

132,345,000

148,114,000

-

Trade debtors

231,054,000

319,348,000

177,847,000

128,039,000

-

Other debtors, deposits & prepayments

7,121,000

10,672,000

11,745,000

61,695,000

-

Short term deposits

215,640,000

255,643,000

365,103,000

477,764,000

-

Amount due from related companies

267,650,000

397,421,000

216,504,000

158,295,000

-

Cash & bank balances

725,000

13,425,000

5,023,000

4,055,000

-

Others

-

13,000

8,264,000

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

902,513,000

1,163,117,000

916,831,000

977,962,000

965,989,000

 

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

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

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

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

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

TOTAL ASSET

1,468,588,000

1,675,215,000

1,647,767,000

2,025,648,000

2,574,195,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

18,683,000

23,415,000

7,144,000

11,906,000

-

Other creditors & accruals

63,740,000

83,173,000

57,447,000

101,017,000

-

Hire purchase & lease creditors

8,160,000

-

-

-

-

Amounts owing to holding company

4,128,000

3,794,000

-

15,288,000

-

Amounts owing to related companies

6,589,000

4,122,000

8,558,000

6,372,000

-

Provision for taxation

24,105,000

1,497,000

1,672,000

1,597,000

-

Other liabilities

114,845,000

153,949,000

117,587,000

48,464,000

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

240,250,000

269,950,000

192,408,000

184,644,000

258,587,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

662,263,000

893,167,000

724,423,000

793,318,000

707,402,000

 

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

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

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

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

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

TOTAL NET ASSETS

1,228,338,000

1,405,265,000

1,455,359,000

1,841,004,000

2,315,608,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

1,000,000,000

1,000,000,000

1,004,000,000

1,014,000,000

1,014,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

1,000,000,000

1,000,000,000

1,004,000,000

1,014,000,000

1,014,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

-

-

196,000,000

686,000,000

941,978,000

Capital reserve

14,000,000

14,000,000

10,000,000

-

-

Retained profit/(loss) carried forward

417,327,000

666,516,000

361,876,000

114,250,000

-

Others

<221,114,000>

<275,251,000>

<116,517,000>

-

-

 

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

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

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

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

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

TOTAL RESERVES

210,213,000

405,265,000

451,359,000

800,250,000

941,978,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,210,213,000

1,405,265,000

1,455,359,000

1,814,250,000

1,955,978,000

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Lease obligations

18,125,000

-

-

-

-

Deferred taxation

-

-

-

26,754,000

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

18,125,000

-

-

26,754,000

359,630,000

 

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

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

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

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

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

 

1,228,338,000

1,405,265,000

1,455,359,000

1,841,004,000

2,315,608,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

BASF PETRONAS CHEMICALS SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

216,365,000

269,068,000

370,126,000

481,819,000

-

Net Liquid Funds

216,365,000

269,068,000

370,126,000

481,819,000

-

Net Liquid Assets

481,940,000

726,572,000

592,078,000

645,204,000

707,402,000

Net Current Assets/(Liabilities)

662,263,000

893,167,000

724,423,000

793,318,000

707,402,000

Net Tangible Assets

1,228,338,000

1,405,265,000

1,455,359,000

1,841,004,000

2,315,608,000

Net Monetary Assets

463,815,000

726,572,000

592,078,000

618,450,000

347,772,000

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

26,285,000

0

0

0

-

Total Liabilities

258,375,000

269,950,000

192,408,000

211,398,000

618,217,000

Total Assets

1,468,588,000

1,675,215,000

1,647,767,000

2,025,648,000

2,574,195,000

Net Assets

1,228,338,000

1,405,265,000

1,455,359,000

1,841,004,000

2,315,608,000

Net Assets Backing

1,210,213,000

1,405,265,000

1,455,359,000

1,814,250,000

1,955,978,000

Shareholders' Funds

1,210,213,000

1,405,265,000

1,455,359,000

1,814,250,000

1,955,978,000

Total Share Capital

1,000,000,000

1,000,000,000

1,004,000,000

1,014,000,000

1,014,000,000

Total Reserves

210,213,000

405,265,000

451,359,000

800,250,000

941,978,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.90

1.00

1.92

2.61

-

Liquid Ratio

3.01

3.69

4.08

4.49

-

Current Ratio

3.76

4.31

4.77

5.30

3.74

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

19

18

25

22

-

Debtors Ratio

24

34

33

19

-

Creditors Ratio

2

2

1

2

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.02

0.00

0.00

0.00

-

Liabilities Ratio

0.21

0.19

0.13

0.12

0.32

Times Interest Earned Ratio

406.48

258,881.20

59,446.50

<45.20>

-

Assets Backing Ratio

1,228.34

1,405.27

1,455.36

1,841.00

2.28

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

34.66

37.76

12.21

<8.56>

16.93

Net Profit Margin

28.98

38.47

12.07

<5.81>

12.23

Return On Net Assets

97.69

92.11

16.34

<11.11>

20.52

Return On Capital Employed

97.04

92.11

16.34

<11.11>

20.52

Return On Shareholders' Funds/Equity

82.70

93.84

16.16

<7.81>

17.56

Dividend Pay Out Ratio (Times)

1.25

0.77

0.00

0.00

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.54

UK Pound

1

Rs.84.19

Euro

1

Rs.71.11

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.