MIRA INFORM REPORT

 

 

Report Date :

08.08.2014

 

IDENTIFICATION DETAILS

 

Name :

PAN-CENTURY OLEOCHEMICALS SDN. BHD.

 

 

Formerly Known As :

USAHA JERNIH SDN BHD

 

 

Registered Office :

Two Ioi Square, Ioi Resort, 62502 Putrajaya, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

29.01.1988

 

 

Com. Reg. No.:

168193-W

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacture of Oleochemical Products

 

 

No. of Employees :

150 [2014]

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. 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 about 35% of government revenue in 2011. Bank Negera Malaysia (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.

:

168193-W

COMPANY NAME

:

PAN-CENTURY OLEOCHEMICALS SDN. BHD.

FORMER NAME

:

USAHA JERNIH SDN BHD (09/03/1989)

INCORPORATION DATE

:

29/01/1988

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

TWO IOI SQUARE, IOI RESORT, 62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 231, JALAN PEKELILING, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2512298

FAX.NO.

:

07-2512634

EMAIL

:

PCOC@PANCENTURY.COM

WEB SITE

:

WWW.IOIOLEO.COM

CONTACT PERSON

:

GURDEV SINGH A/L DARSHAN SINGH ( CEO )

INDUSTRY CODE

:

20

PRINCIPAL ACTIVITY

:

MANUFACTURE OF OLEOCHEMICAL PRODUCTS

AUTHORISED CAPITAL

:

MYR 40,000,000.00 DIVIDED INTO
ORDINARY SHARE 30,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 22,000,000.00 DIVIDED INTO
ORDINARY SHARES 22,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 839,975,087 [2013]

NET WORTH

:

MYR 90,233,415 [2013]

M1000 OVERALL RANKING

:

731[2011]

M1000 INDUSTRY RANKING

:

35[2011]

STAFF STRENGTH

:

150 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) manufacture of oleochemical products.

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

 

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

 

 

 

 

YEAR

2011

2005

 

OVERALL RANKING

731

976

 

INDUSTRY RANKING

35

36

 

 

The ultimate holding company of the Subject is IOI CORPORATION BERHAD, a company incorporated in MALAYSIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 40,000,000.00

MYR 22,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

IOI CORPORATION BERHAD

TWO IOI SQUARE, IOI RESORT, 62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.

9027W

22,000,000.00

100.00

 

 

 

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

------

 

 

 

22,000,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MR. GURDEV SINGH A/L DARSHAN SINGH

Address

:

7, JALAN KUEL, 80300 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

5564062

New IC No

:

580323-01-6079

Date of Birth

:

23/03/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

18/04/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. TAN KEAN HUA

Address

:

14, JALAN 31/74B, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

7228989

New IC No

:

640202-10-5499

Date of Birth

:

02/02/1964

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

15/01/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. LEE YEOW SENG

Address

:

8, LINGKUNGAN 3, DIAMOND HILL, IOI RESORT, 62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

781223-14-5501

Date of Birth

:

23/12/1978

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/01/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. LEE SHIN CHENG @ LEE LEONG

Address

:

8, LINGKUNGAN 3, DIAMOND HILL, IOI RESORT, 62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

3593425

New IC No

:

390603-10-5263

Date of Birth

:

03/06/1939

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/01/2007

 

 

 

Qualification

:

HONORARY DOCTORATE DEGREE IN AGRICULTURE (PUTRA MALAYSIA UNIVERSITY)

Profile

:

HE IS ALSO PROVIDING HIS ADVICE AND GUIDANCE TO A LARGE NUMBER OF INDUSTRY GROUPINGS, ASSOCIATIONS AND SOCIAL ORGANISATIONS.

Other Info

:

HE WAS BESTOWED THE SINGULAR HONOUR OF FIABCI MALAYSIA PROPERTY MAN OF THE YEAR 2001 AWARD. HE SERVES AS A BOARD MEMBER OF PUTRA MALAYSIA UNIVERSITY, THE ADVISER TO THE KL & SELANGOR CHINESE CHAMBER OF COMMERCE AND INDUSTRY, A COUNCIL MEMBER OF MALAYSIAN PALM OIL ASSOCIATION (MPOA), A MEMBER OF MALAYSIA-CHINA BUSINESS COUNCIL, THE HONORARY PRESIDENT OF ASSOCIATION OF ENG CHOON SOCIETIES OF MALAYSIA AND FEDERATION OF HOKKIEN ASSOCIATION OF MALAYSIA.

 

DIRECTOR 5

 

Name Of Subject

:

LEE YEOW CHOR

Address

:

6, JALAN BAVERLY UTAMA, IOI RESORT, 62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A0579701

New IC No

:

661129-10-5443

Date of Birth

:

29/11/1966

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/01/2007

 

 

 

Qualification

:

LLB (HONS) KING'S COLLEGE, UNIVERSITY OF LONDON & WAS CALLED AS A BARRISTER AT GRAY'S INN. HE ALSO HOLDS A POSTGRADUATE DIPLOMA IN FINANCE AND ACCOUNTING FROM THE LONDON SCHOOL OF ECONOMICS.

Profile

:

CURRENTLY SERVES AS THE NATIONAL SECRETARY-GENERAL OF THE MALAYSIA REAL ESTATE & HOUSING DEVELOPERS' ASSOCIATION (REHDA).

Other Info

:

HE IS A COUNCIL MEMBER OF THE MALAYSIAN PALM OIL ASSOCIATION (MPOA) AND A COUNCIL MEMBER OF THE MALAYSIAN ASSOCIATION OF HOTEL OWNERS.


MANAGEMENT

 

 

 

1)

Name of Subject

:

GURDEV SINGH A/L DARSHAN SINGH

 

Position

:

CEO

 

 

 

 

 

2)

Name of Subject

:

LEE SHIN CHENG

 

Position

:

EXECUTIVE CHAIRMAN

 

 

 

 

 

3)

Name of Subject

:

NEO

 

Position

:

FINANCIAL CONTROLLER

 

 

 

 

 

4)

Name of Subject

:

WAFLI ALI

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

5)

Name of Subject

:

NOR AZILAN

 

Position

:

PRODUCTION MANAGER

 

 

 

 

 

6)

Name of Subject

:

SASHIDARAN

 

Position

:

LOGISTIC MANAGER

 

 

 

 

 

 

AUDITOR

 

Auditor

:

BDO

Auditor' Address

:

SUITE 18-04, MENARA ZURICH, 15, JALAN DATO' ABDULLAH TAHIR, LEVEL 18, 80300 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. TAN CHOONG KHIANG

 

IC / PP No

:

A1672702

 

New IC No

:

701016-07-5317

 

Address

:

7, JALAN PUJ 2/28, TAMAN PUNCAK JALIL, BANDAR PUTRA PERMAI, 43300 BALAKONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

26/07/1990

DEBENTURE

BUMIPUTRACOMMERCE BANK BERHAD

MYR 50,000,000.00

Satisfied

2

26/07/1990

N/A

BUMIPUTRACOMMERCE BANK BERHAD

MYR 15,000,000.00

Satisfied

3

08/10/1992

N/A

BUMIPUTRACOMMERCE BANK BERHAD

MYR 27,500,000.00

Satisfied

4

01/06/1994

DEBENTURE

BUMIPUTRACOMMERCE BANK BERHAD

MYR 27,500,000.00

Satisfied

5

01/06/1994

N/A

BUMIPUTRACOMMERCE BANK BHD

MYR 50,000,000.00

Satisfied

6

01/06/1994

N/A

BUMIPUTRACOMMERCE BANK BERHAD

MYR 15,000,000.00

Satisfied

7

20/07/1995

DEBENTURE

BUMIPUTRACOMMERCE BANK BERHAD

MYR 55,500,000.00

Satisfied

8

30/12/1997

DEBENTURE

BUMIPUTRACOMMERCE BANK BERHAD

MYR 7,000,000.00

Satisfied

9

24/01/1998

CHARGE

BUMIPUTRACOMMERCE BANK BERHAD

MYR 7,000,000.00

Satisfied

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject 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 SUBJECT


* We have checked through the Subject 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

:

50%

Overseas

:

YES

Percentage

:

50%

Import Countries

:

UNITED STATES,NETHERLANDS,ASIA


The Subject 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

:

40%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

60%

Export Market

:

ASIA

EUROPE

UNITED STATES

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

OLEOCHEMICAL PRODUCTS

 

 

 

Award

:

1 ) QUALITY MANAGEMENT EXCELLENCE AWARD BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2002
2 ) MS ISO 9001 : 2000 Year :2000
3 ) MS ISO 14001 Year :1999

 

 

 

 

 

 

Competitor(s)

:

FPG OLEOCHEMICALS SDN BHD
MALAY-SINO CHEMICAL INDUSTRIES SDN BHD
SCHAEFER KALK (MALAYSIA) SDN BHD
TOR MINERALS (M) SDN BHD
UMICORE MALAYSIA SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

OWNED

 

Factory Size

:

SIZE OF FIVE FOOTBALL FIELDS

 

Production Line

:

1

 

Production Capacity

:

340000MT/ANNUAL

 

Shifts

:

24 HOURS-3 SHIFTS

 

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

150

150

150

178

150

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacture of oleochemical products.


The subject was established in 1991 to cater to the growing demand for fine vegetable-based biodegradable oleochemicals. Its modern and sophisticated plant with an annual capacity of 340,000 MT produces a variety of fatty acids and pharmaceutical-grade glycerine.


The subject together with its sister company, Pan Century Edible Oils Sdn. Bhd. is one of the world’s largest single-site, vertically integrated palm oil refinery and oleochemical complexes.


Subject is the first Palm Oil and Oleochemical Company in Malaysia to be accredited with SA 8000, MS ISO 9001:2000, ISO 14001, OHSAS 18001 and HACCP Certification. This has been achieved through its dedicated employees, corporate vision, adoption of state-of-art technology and customer support.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

07-2512298

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 231, JALAN PEKELILING,81700,PASIR GUDANG,JOHOR.

Current Address

:

LOT 231, JALAN PEKELILING, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 3rd April 2014 we contacted one of the staff from the subject and she provided some information on the subject.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Unfavourable

[

5.77%

]

 

Return on Net Assets

:

Acceptable

[

12.48%

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

24 Days

]

 

Debtor Ratio

:

Favourable

[

51 Days

]

 

Creditors Ratio

:

Favourable

[

0 Days

]

 

 

 

 

 

 

 

 

The Subject'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 Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Unfavourable

[

0.71 Times

]

 

Current Ratio

:

Unfavourable

[

0.92 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

6.06 Times

]

 

Gearing Ratio

:

Favourable

[

0.16 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the Subject's performance has improved with higher turnover and profit. Due to its weak liquidity position, the Subject 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 Subject. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject 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 Subject : LIMITED

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index



INDUSTRY ANALYSIS

 

MSIC CODE

20 : MANUFACTURE OF CHEMICALS AND CHEMICAL PRODUCTS

 

 

INDUSTRY :

MANUFACTURING

 

 

 

The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domesticoriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand.

 

Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first sevenmonths of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domesticoriented industries continued to expand 8.6% while export-oriented industries grew 4.1%.

 

According to the Department of Statistics, the sales value of the Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion) to record RM52.4 billion as compared to RM48.8 billion reported in year 2012. Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2 billion) as compared with the preceding month. The sales value in December 2012 has been revised positive 7.5% year-on-year to record RM52.6 billion.

 

Output of rubber products increased 3.6% in the first seven month of 2012 mainly supported by continuous demand for rubber gloves. Output of rubber gloves grew 5.9% on account of the expansion in the global healthcare industry and wider usage of gloves in other sectors. Similarly, output of catheters, especially for use in medical appliances, also registered a strong growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in tandem with slowing external demand from the automotive industry, especially China.

 

Meanwhile, production of wood and wood products rebounded 4.6% largely supported by higher demand for wooden and cane furniture (33.5%). The positive performance was attributed to vibrant higher demand from major export destinations such as China and the United States (US) for Malaysian-made furniture. Demand from China accelerated further following the country’s rising income level and the implementation of zero import duty on Malaysian made-furniture. 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.

 

The output of chemicals and chemical products rose 9.9% in the first seven month of year 2012 on account of increasing demand for plastic products (11.8%) and basic chemicals (11.1%). External demand for plastic packaging materials surged during the early part of the year 2012, particularly from Japan and Thailand, as manufacturers resumed operations, which were interrupted by natural calamities and power outages. Chemical production are expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.

 

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 assolar 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 1988, the Subject is a Private Limited company, focusing on manufacture of oleochemical products. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. The Subject is well backed by a listed company shareholders which would stimulate further growth for the Subject. Hence, the potential growth of the Subject is positive. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.

Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. The Subject is a fairly large and rapidly growing company with over 150 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. However, being a lowly geared company, the Subject 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 90,233,415, the Subject should be able to maintain its business in the near terms.


Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject'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 Subject has a good control over its resources.


We regard that the Subject's overall payment habit is average.


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


Based on the above condition, we recommend credit be granted to the Subject promptly.

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2013-06-30

2012-06-30

2011-06-30

2010-06-30

2009-06-30

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

839,975,087

803,068,487

523,699,166

496,845,696

442,354,818

 

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

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

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

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

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

Total Turnover

839,975,087

803,068,487

523,699,166

496,845,696

442,354,818

Costs of Goods Sold

(787,569,711)

(777,321,374)

(501,465,137)

(470,260,593)

-

 

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

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

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

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

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

Gross Profit

52,405,376

25,747,113

22,234,029

26,585,103

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

11,262,497

3,473,101

5,553,115

5,459,226

(10,813,533)

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

11,262,497

3,473,101

5,553,115

5,459,226

(10,813,533)

Taxation

(6,053,145)

75,488

(509,463)

(667,000)

2,848,395

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

5,209,352

3,548,589

5,043,652

4,792,226

(7,965,138)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

60,024,063

62,475,474

67,614,210

62,821,984

70,787,122

Prior year adjustment

-

-

659,061

-

-

 

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

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

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

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

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

As restated

60,024,063

62,475,474

68,273,271

62,821,984

70,787,122

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

65,233,415

66,024,063

73,316,923

67,614,210

62,821,984

DIVIDENDS - Ordinary (paid & proposed)

-

(6,000,000)

(10,841,449)

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

65,233,415

60,024,063

62,475,474

67,614,210

62,821,984

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

20,059

18,700

30,079

20,413

21,227

Bankers' acceptance

-

51,726

-

-

-

Revolving loans

84,553

-

-

-

416,984

Term loan / Borrowing

-

-

-

-

42,938

Others

2,122,274

-

-

13,722

587,630

 

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

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

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

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

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

 

2,226,886

70,426

30,079

34,135

1,068,779

 

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

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

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

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

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

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

124,140,875

135,817,696

70,782,647

70,560,339

76,795,365

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investment properties

4,400,000

4,400,000

4,400,000

4,560,000

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

4,400,000

4,400,000

4,400,000

4,560,000

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

128,540,875

140,217,696

75,182,647

75,120,339

76,795,365

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

56,239,994

76,067,026

48,776,440

41,277,621

43,011,745

Trade debtors

118,016,099

106,494,838

44,140,590

35,312,348

24,311,286

Other debtors, deposits & prepayments

3,445,499

1,396,606

1,472,310

2,817,926

2,118,715

Short term deposits

49,294,055

7,173,860

-

-

-

Amount due from related companies

5,396,661

166,293,161

71,204,743

11,632,726

13,035,882

Cash & bank balances

11,738,298

1,278,591

765,164

6,140,627

2,009,214

Others

233,293

2,120,721

3,489,306

646,664

841,975

 

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

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

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

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

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

TOTAL CURRENT ASSETS

244,363,899

360,824,803

169,848,553

97,827,912

85,328,817

 

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

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

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

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

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

TOTAL ASSET

372,904,774

501,042,499

245,031,200

172,948,251

162,124,182

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

727,779

360,349

3,842,944

6,970,988

4,333,065

Other creditors & accruals

23,267,440

17,356,061

9,400,796

6,961,363

5,167,871

Bill & acceptances payable

14,426,738

17,868,836

-

-

-

Amounts owing to holding company

-

6,000,000

-

-

-

Amounts owing to related companies

216,943,235

354,719,405

128,231,466

51,752,361

51,056,587

Provision for taxation

2,615,077

-

-

-

-

Other liabilities

6,875,934

4,565,604

827,626

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

264,856,203

400,870,255

142,302,832

65,684,712

60,557,523

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

(20,492,304)

(40,045,452)

27,545,721

32,143,200

24,771,294

 

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

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

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

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

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

TOTAL NET ASSETS

108,048,571

100,172,244

102,728,368

107,263,539

101,566,659

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

22,000,000

22,000,000

22,000,000

22,000,000

22,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

22,000,000

22,000,000

22,000,000

22,000,000

22,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

65,233,415

60,024,063

62,475,474

67,614,210

62,821,984

Capital redemption reserve

3,000,000

3,000,000

3,000,000

3,000,000

3,000,000

 

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

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

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

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

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

TOTAL RESERVES

68,233,415

63,024,063

65,475,474

70,614,210

65,821,984

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

90,233,415

85,024,063

87,475,474

92,614,210

87,821,984

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

14,218,010

12,168,000

12,536,000

12,076,000

11,409,000

Retirement benefits provision

3,597,146

2,980,181

2,716,894

2,573,329

2,335,675

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

17,815,156

15,148,181

15,252,894

14,649,329

13,744,675

 

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

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

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

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

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

 

108,048,571

100,172,244

102,728,368

107,263,539

101,566,659

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

 

 

 

Cash

61,032,353

8,452,451

765,164

6,140,627

2,009,214

Net Liquid Funds

46,605,615

(9,416,385)

765,164

6,140,627

2,009,214

Net Liquid Assets

(76,732,298)

(116,112,478)

(21,230,719)

(9,134,421)

(18,240,451)

Net Current Assets/(Liabilities)

(20,492,304)

(40,045,452)

27,545,721

32,143,200

24,771,294

Net Tangible Assets

108,048,571

100,172,244

102,728,368

107,263,539

101,566,659

Net Monetary Assets

(94,547,454)

(131,260,659)

(36,483,613)

(23,783,750)

(31,985,126)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

14,511,291

17,868,836

0

0

416,984

Total Liabilities

282,671,359

416,018,436

157,555,726

80,334,041

74,302,198

Total Assets

372,904,774

501,042,499

245,031,200

172,948,251

162,124,182

Net Assets

108,048,571

100,172,244

102,728,368

107,263,539

101,566,659

Net Assets Backing

90,233,415

85,024,063

87,475,474

92,614,210

87,821,984

Shareholders' Funds

90,233,415

85,024,063

87,475,474

92,614,210

87,821,984

Total Share Capital

22,000,000

22,000,000

22,000,000

22,000,000

22,000,000

Total Reserves

68,233,415

63,024,063

65,475,474

70,614,210

65,821,984

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.23

0.02

0.01

0.09

0.03

Liquid Ratio

0.71

0.71

0.85

0.86

0.70

Current Ratio

0.92

0.90

1.19

1.49

1.41

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

24

35

34

30

35

Debtors Ratio

51

48

31

26

20

Creditors Ratio

0

0

3

5

4

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.16

0.21

0.00

0.00

0.00

Liabilities Ratio

3.13

4.89

1.80

0.87

0.85

Times Interest Earned Ratio

6.06

50.32

185.62

160.93

(9.12)

Assets Backing Ratio

4.91

4.55

4.67

4.88

4.62

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.34

0.43

1.06

1.10

(2.44)

Net Profit Margin

0.62

0.44

0.96

0.96

(1.80)

Return On Net Assets

12.48

3.54

5.43

5.12

(9.59)

Return On Capital Employed

12.47

3.54

5.43

5.12

(9.56)

Return On Shareholders' Funds/Equity

5.77

4.17

5.77

5.17

(9.07)

Dividend Pay Out Ratio (Times)

0.00

1.69

2.15

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.41

UK Pound

1

Rs.103.42

Euro

1

Rs.82.16

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.