MIRA INFORM REPORT

 

 

Report Date :

09.12.2014

 

IDENTIFICATION DETAILS

 

Name :

FATTY CHEMICAL (MALAYSIA) SDN BHD

 

 

Registered Office :

2510, Lorong Perusahaan Satu, Prai Industrial Complex, Prai,Penang, 13600 Prai, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

01.07.1983

 

 

Com. Reg. No.:

103668-U

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the manufacturer of fatty alcohol, refined glycerine.

 

 

No of Employees :

200 [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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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 sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara 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 earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

 

Source : CIA

 

 

 

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

103668-U

COMPANY NAME

:

FATTY CHEMICAL (MALAYSIA) SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

01/07/1983

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

2510, LORONG PERUSAHAAN SATU, PRAI INDUSTRIAL COMPLEX, PRAI,PENANG, 13600 PRAI, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

2510, LORONG PERUSAHAN 1, PRAI INDUSTRIAL COMPLEX, 13600 PRAI, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-3998500

FAX.NO.

:

04-3903858

CONTACT PERSON

:

EIJI SHIMA ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

20119

PRINCIPAL ACTIVITY

:

MANUFACTURER OF FATTY ALCOHOL, REFINED GLYCERINE

AUTHORISED CAPITAL

:

MYR 120,000,000.00 DIVIDED INTO 
ORDINARY SHARE 120,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 120,000,000.00 DIVIDED INTO 
ORDINARY SHARES 120,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 846,473,235 [2013]

NET WORTH

:

MYR 588,239,042 [2013]

M1000 OVERALL RANKING

:

467[2011]

M1000 INDUSTRY RANKING

:

25[2011]

 

 

 

STAFF STRENGTH

:

200 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

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) manufacturer of fatty alcohol, refined glycerine.

 

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

2009

2008

 

OVERALL RANKING

467

365

353

 

INDUSTRY RANKING

25

22

19

 

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 120,000,000.00

MYR 120,000,000.00

16/11/1992

MYR 120,000,000.00

MYR 110,000,000.00

16/09/1992

MYR 120,000,000.00

MYR 100,000,000.00

23/07/1992

MYR 120,000,000.00

MYR 90,000,000.00

21/02/1992

MYR 120,000,000.00

MYR 80,000,000.00

06/01/1992

MYR 120,000,000.00

MYR 70,000,000.00

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

KAO (SINGAPORE) PTE LTD

150, BEACH ROAD #29-00, GATEWAY WEST, SINGAPORE 189720

XLZ00216583

84,000,000.00

70.00

IOI OLEOCHEMICAL INDUSTRIES BERHAD

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

29994D

36,000,000.00

30.00

 

 

 

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

------

 

 

 

120,000,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

TADASHI OKUBO

Address

:

256-33 NAGANUMA-CHO, INAGE-KU, CHIBA, JAPAN, JAPAN.

IC / PP No

:

TH9440731

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

07/06/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. TAN KEAN HUA

Address

:

NO.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

:

13/06/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MASAKAZU NEGORO

Address

:

4-9-304, ABIKO, ABIKO-SHI, CHIBA 270-1166, JAPAN, JAPAN.

IC / PP No

:

TH3206913

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

14/09/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. LAI CHOON WAH

Address

:

31, LORONG BAKAP INDAH 7, TAMAN BAKAP INDAH, 14200 SUNGAI BAKAP, PULAU PINANG, MALAYSIA.

IC / PP No

:

6954570

New IC No

:

630219-07-5565

Date of Birth

:

19/02/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

16/12/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

HIDEAKI UEOKA

Address

:

28-14-D GURNEY BEACH RESORT, PERSIARAN GURNEY, 10250 GEORGETOWN, PULAU PINANG, MALAYSIA.

IC / PP No

:

TH4792795

 

 

 

 

 

 

Date of Appointment

:

12/03/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

EIJI SHIMA

Address

:

168-33-5 FETTES RESIDENCE, JALAN TANJUNG TOKONG, 10470 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

TK8056616

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

12/03/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 7

 

Name Of Subject

:

DATO 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

:

28/03/2011

 

 

 

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.

 

DIRECTOR 8

 

Name Of Subject

:

OSAMU TABATA

Address

:

2-8-21-204 OHTA, WAKAYAMA CITY, 640 8323 JAPAN, MALAYSIA.

IC / PP No

:

TZ0748155

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

12/03/2007

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

 

1)

Name of Subject

:

EIJI SHIMA

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

LEVEL 10, KPMG TOWER,, 8 FIRST AVENUE, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. TAN CHOONG KHIANG

 

IC / PP No

:

A1672702

 

New IC No

:

701016-07-5317

 

Address

:

40, LORONG BIDARA 5, TAMAN BIDARA, 14020 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation. 

 

LITIGATION 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.

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

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 



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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

SINGAPORE

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

CETYL ALCOHOL, DECYL ALCOHOL, GLYCERINE (REFINED), LAURYL ALCOHOL, MIXED ALCOHOL, MYRISTYL ALCOHOL, OCTYL ALCOHOL, STEARYL ALCOHOL

 

 

 

Product Brand Name

:

KALCOL

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :1997

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2013

2011

2010

2009

 

 

 

 

 

GROUP

N/A

N/A

N/A

0

0

 

 

 

 

COMPANY

200

219

219

N/A

N/A

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturer of fatty alcohol, refined glycerine. 

The Subject refused to disclose any information on its operation. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

04-3998500

Match

:

N/A

 

 

 

Address Provided by Client

:

2510, LORONG PERUSAHAN 1, PRAI INDUSTRIAL COMPLEX,13600,PRAI,PULAU PINANG.

Current Address

:

2510, LORONG PERUSAHAN 1, PRAI INDUSTRIAL COMPLEX, 13600 PRAI, PULAU PINANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 4th December 2014 we contacted one of the staff from the Subject and she provided some information.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Acceptable

[

14.89%

]

 

Return on Net Assets

:

Acceptable

[

19.43%

]

 

 

 

 

 

 

 

 

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

43 Days

]

 

Debtor Ratio

:

Unfavourable

[

73 Days

]

 

Creditors Ratio

:

Favourable

[

22 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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

:

Favourable

[

6.75 Times

]

 

Current Ratio

:

Favourable

[

8.26 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Due to the efficient control of its operating costs, the Subject was able to remain profitable despite lower turnover achieved during the year. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the Subject : STRONG

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

 

 

 

 

 

 

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

 

 

 

 

 

 

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.3

4.0

Unemployment Rate

3.3

3.2

3.0

3.0

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

-

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

-

-

Business Loans Disbursed( % )

15.3

32.2

-

-

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

-

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

45,455

45,441

46,321

-

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

-

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

-

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

284,598

324,761

329,895

-

-

Registration of New Business ( % )

5.0

14.0

2.0

-

-

Business Dissolved ( No. )

20,121

20,380

18,161

-

-

Business Dissolved ( % )

1.9

1.3

(10.9)

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

-

-

 

 

 

 

 

 

Credit Cards Spending ( % )

15.6

12.6

-

-

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

 

 

 

 

 

 

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

 

 

 

 

 

 

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

 

 

 

 

 

 

Manufacturing #

4.7

4.8

3.4

6.6

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

-

-

Plastic Products

3.8

-

-

-

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

 

 

 

 

 

 

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

 

 

 

 

 

 

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

20119 : Manufacture of other basic chemicals n.e.c.

 

 

INDUSTRY :

MANUFACTURING

 

 

 

The manufacturing sector is expected to grow by 5.5% in 2015. It will be bolstered by strong domestic and export-oriented industries in line with growing investment activities and favorable external demand. Moreover, in 2014, the manufacturing sectors have spearheading growth. The manufacturing sector is estimated to grow at a faster pace in 2014 on higher exports of electronics and electrical (E&E) products as external demand improves.

 

The manufacturing sector expanded strongly during the first half of 2014, the highest growth in three years, spurred by higher global semiconductor sales. Value-added of the manufacturing sector expanded 7.1% during the first half of 2014. Production of the sector rose 6.6% in the first seven months of 2014 supported by resilient domestic demand and recovery in the external sector during the first seven months of the years. The sales value of manufactured products rebounded by 7.7% in the first seven months of 2014. The strong performance of the sector was on account of higher output at 9.4% from the domestic-oriented industries, particularly transport equipment, food and beverage.

 

The manufacturing sector continued to attract domestic and foreign investment with investment approved by Malaysian Investment Development Authority (MIDA) totaling RM47.4 billion during the first six months of 2014, mainly from Japan, China and Germany. Meanwhile, the capacity utilization rate remained steady at 80.4% during the second quarter of 2014 while average wage per employee and productivity improved to RM2,772 per month and 5.9%, respectively during the first seven months of 2014. Boosted by favorable domestic economic activity and recovery in the external sector, the manufacturing sector is expected to record a better performance with growth of 6.4% in 2014.

 

In the meantime, production of wood products rebounded by 5.1% largely supported by higher output in the saw-milling and planning of wood segment at 25.9% during the first seven months of 2014. The positive performance was attributed to vibrant residential and commercial construction activities which contributed to increased use of timber frame and glued laminated timber for cost savings compared to the use of concrete and steel. Increased demand from major export destination such as the US, Japan and Australia for Malaysian made furniture contributed to the higher output, particularly wooden and cane furniture which rebounded by 2.2%.

 

Production of rubber products contracted 0.3% in the first seven months of 2014 on account of slower demand for rubber gloves and rubber tyres. The decline in rubber tyres for vehicles was due to the weaker external demand from the automotive industry, particularly from China. Output of other rubber products contracted 3.8% following the product shift from rubber-based to plastics, silicones and metal alloys in the manufacture of medical devices.

 

Besides, exports of manufactured products are expected to grow 6.1% in 2014 boosted by the growing demand from advanced economies. However, during the first seven months of 2014, manufactured exports surged 11.4%. The robust growth was buoyed by strengthening demand in the US and EU, reflecting significant exposure of Malaysian exports to the economic performance in the advance economies. The strength in export was broad-based with robust growth in both E&E and non- E&E subsectors.

 

Under budget 2015, the Government will provide incentive in the form of capital allowance on automation expenditure to encourage automation in the manufacturing sector, which may help in the manufacturing sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1983, the Subject is a Private Limited company, focusing on manufacturer of fatty alcohol, refined glycerine. 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 a large entity with strong capital position of MYR 120,000,000. We are confident with the Subject's business and its future growth prospect. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. 

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 200 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. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to the Subject. 

Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject 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 zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 588,239,042, 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 prompt. The Subject 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 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)

FATTY CHEMICAL (MALAYSIA) SDN BHD

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

2009-12-31

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

SUMMARY

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

846,473,235

1,107,979,345

1,376,227,423

1,017,586,098

761,269,914

 

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

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

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

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

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

Total Turnover

846,473,235

1,107,979,345

1,376,227,423

1,017,586,098

761,269,914

Costs of Goods Sold

(674,787,764)

(943,671,075)

-

(1,017,586,098)

-

 

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

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

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

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

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

Gross Profit

171,685,471

164,308,270

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

116,728,054

111,477,512

204,798,339

57,063,379

23,679,233

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

116,728,054

111,477,512

204,798,339

57,063,379

23,679,233

Taxation

(29,134,137)

(27,331,862)

(51,547,596)

(14,796,448)

(6,083,257)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

87,593,917

84,145,650

153,250,743

42,266,931

17,595,976

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

87,593,917

84,145,650

153,250,743

42,266,931

17,595,976

Extraordinary items

(209,661)

-

-

-

-

 

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

87,384,256

84,145,650

153,250,743

42,266,931

17,595,976

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

488,887,786

635,142,136

524,191,393

490,744,462

491,148,486

 

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

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

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

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

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

As restated

488,887,786

635,142,136

524,191,393

490,744,462

491,148,486

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

576,272,042

719,287,786

677,442,136

533,011,393

508,744,462

DIVIDENDS - Ordinary (paid & proposed)

(108,033,000)

(230,400,000)

(42,300,000)

(8,820,000)

(18,000,000)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

468,239,042

488,887,786

635,142,136

524,191,393

490,744,462

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

FATTY CHEMICAL (MALAYSIA) SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

124,540,447

131,344,720

154,804,839

175,499,259

196,554,516

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

124,540,447

131,344,720

154,804,839

175,499,259

196,554,516

 

 

 

 

 

 

Stocks

99,570,333

81,249,124

-

-

72,914,527

Trade debtors

168,748,354

180,795,310

-

-

228,400,336

Other debtors, deposits & prepayments

4,012,630

1,477,216

-

-

3,724,660

Short term deposits

205,023,483

254,000,000

-

-

170,571,415

Amount due from holding company

1,210

3,548

-

-

-

Amount due from related companies

1,867,763

1,767,036

-

-

-

Cash & bank balances

56,671,197

30,022,281

-

-

18,061,912

Others

5,887,754

3,418,297

-

-

2,060,990

 

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

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

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

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

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

TOTAL CURRENT ASSETS

541,782,724

552,732,812

690,174,255

579,120,152

495,733,840

 

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

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

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

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

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

TOTAL ASSET

666,323,171

684,077,532

844,979,094

754,619,411

692,288,356

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

40,270,965

32,239,337

-

-

34,619,510

Other creditors & accruals

21,683,214

25,871,516

-

-

25,239,126

Amounts owing to holding company

837,413

556,558

-

-

-

Amounts owing to related companies

207,521

269,347

-

-

-

Other liabilities

2,558,878

959,419

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

65,557,991

59,896,177

71,116,529

92,743,143

59,858,636

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

476,224,733

492,836,635

619,057,726

486,377,009

435,875,204

 

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

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

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

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

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

TOTAL NET ASSETS

600,765,180

624,181,355

773,862,565

661,876,268

632,429,720

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

120,000,000

120,000,000

120,000,000

120,000,000

120,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

120,000,000

120,000,000

120,000,000

120,000,000

120,000,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

468,239,042

488,887,786

635,142,136

524,191,393

490,744,462

 

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

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

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

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

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

TOTAL RESERVES

468,239,042

488,887,786

635,142,136

524,191,393

490,744,462

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

588,239,042

608,887,786

755,142,136

644,191,393

610,744,462

 

 

 

 

 

 

Deferred taxation

8,047,000

11,033,000

-

-

18,371,000

Retirement benefits provision

4,479,138

4,260,569

-

-

3,314,258

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

12,526,138

15,293,569

18,720,429

17,684,875

21,685,258

 

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

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

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

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

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

 

600,765,180

624,181,355

773,862,565

661,876,268

632,429,720

 

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

FATTY CHEMICAL (MALAYSIA) SDN BHD

 

 

TYPES OF FUNDS

 

 

 

 

 

 

Cash

261,694,680

284,022,281

-

-

188,633,327

Net Liquid Funds

261,694,680

284,022,281

-

-

188,633,327

Net Liquid Assets

376,654,400

411,587,511

619,057,726

486,377,009

362,960,677

Net Current Assets/(Liabilities)

476,224,733

492,836,635

619,057,726

486,377,009

435,875,204

Net Tangible Assets

600,765,180

624,181,355

773,862,565

661,876,268

632,429,720

Net Monetary Assets

364,128,262

396,293,942

600,337,297

468,692,134

341,275,419

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

-

-

0

Total Liabilities

78,084,129

75,189,746

89,836,958

110,428,018

81,543,894

Total Assets

666,323,171

684,077,532

844,979,094

754,619,411

692,288,356

Net Assets

600,765,180

624,181,355

773,862,565

661,876,268

632,429,720

Net Assets Backing

588,239,042

608,887,786

755,142,136

644,191,393

610,744,462

Shareholders' Funds

588,239,042

608,887,786

755,142,136

644,191,393

610,744,462

Total Share Capital

120,000,000

120,000,000

120,000,000

120,000,000

120,000,000

Total Reserves

468,239,042

488,887,786

635,142,136

524,191,393

490,744,462

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

3.99

4.74

-

-

3.15

Liquid Ratio

6.75

7.87

-

-

7.06

Current Ratio

8.26

9.23

9.70

6.24

8.28

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

43

27

-

-

35

Debtors Ratio

73

60

-

-

110

Creditors Ratio

22

12

-

-

17

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

-

-

0.00

Liabilities Ratio

0.13

0.12

0.12

0.17

0.13

Times Interest Earned Ratio

0.00

0.00

-

-

0.00

Assets Backing Ratio

5.01

5.20

6.45

5.52

5.27

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

13.79

10.06

14.88

5.61

3.11

Net Profit Margin

10.35

7.59

11.14

4.15

2.31

Return On Net Assets

19.43

17.86

26.46

8.62

3.74

Return On Capital Employed

19.43

17.86

26.46

8.62

3.74

Return On Shareholders' Funds/Equity

14.89

13.82

20.29

6.56

2.88

Dividend Pay Out Ratio (Times)

1.23

2.74

0.28

0.21

1.02

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

 

-

0



 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.93

UK Pound

1

Rs.96.37

Euro

1

Rs.76.10

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

TPT

 

 

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.