MIRA INFORM REPORT

 

 

Report Date :

18.01.2014

 

 

IDENTIFICATION DETAILS

 

Name :

TRISTAR GLOBAL SDN. BHD.

 

 

Registered Office :

Suite 1207, 12th Floor, Kompleks Selangor, Jalan Sultan, 50000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

03.11.2000

 

 

Com. Reg. No.:

530920-D

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trader of Commodities, Palm Oil and Palm Oil Derived Products

 

 

No of Employees :

10

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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. 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.

:

530920-D

COMPANY NAME

:

TRISTAR GLOBAL SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

03/11/2000

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE 1207, 12TH FLOOR, KOMPLEKS SELANGOR, JALAN SULTAN, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

3-11, BLOCK B, PHILEO DAMANSARA II, NO. 15, JALAN 16/11, OFF JALAN DAMANSARA, 46350 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-79587166

FAX.NO.

:

03-79585166

CONTACT PERSON

:

DIVAKARAN ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

46202

PRINCIPAL ACTIVITY

:

TRADING OF COMMODITIES, PALM OIL AND PALM OIL DERIVED PRODUCTS

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 525,007.00 DIVIDED INTO 
ORDINARY SHARES 350,005 CASH AND 175,002 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 184,958,103 [2011]

NET WORTH

:

MYR 1,644,507 [2011]

 

 

 

STAFF STRENGTH

:

10 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MATURE

 

 

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) trading of commodities, palm oil and palm oil derived products.

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

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

01/07/2013

MYR 1,000,000.00

MYR 525,007.00

15/02/2013

MYR 500,000.00

MYR 350,005.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. DIVAKARAN A/L NADARAJAN +

2B-1805, MAWWELL TOWERS, GASING HEIGHTS, 10, JALAN 5/58C, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

640110-08-6163

210,001.00

40.00

MR. ABRAHAM THOMAS +

A-08-06, VISTA KIARA CONDOMINIUM, 7, JALAN 1/61A, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

591205-75-5069

157,503.00

30.00

MR. SOSHEEL KUMAR A/L TATHRAM SHARMA +

NO.1, JALAN TEMPINIS 4, ( LUCKY GARDENS ), BANGSAR BARU, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

520518-10-5253

157,503.00

30.00

 

 

 

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

------

 

 

 

525,007.00

100.00

 

 

 

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

=====

+ Also Director

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. SHAMSIAH BINTI SAMLI

Address

:

NO. 15, JALAN AU 20/2, TAMAN DESA KERAMAT, AMPANG, 54200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

690506-10-6226

Date of Birth

:

06/05/1969

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

03/11/2000



DIRECTOR 2

 

Name Of Subject

:

MR. ABRAHAM THOMAS

Address

:

A-08-06, VISTA KIARA CONDOMINIUM, 7, JALAN 1/61A, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

591205-75-5069

Date of Birth

:

05/12/1959

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

23/03/2006



DIRECTOR 3

 

Name Of Subject

:

MR. SOSHEEL KUMAR A/L TATHRAM SHARMA

Address

:

NO.1, JALAN TEMPINIS 4, ( LUCKY GARDENS ), BANGSAR BARU, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

520518-10-5253

Date of Birth

:

18/05/1952

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

03/11/2000

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. DIVAKARAN A/L NADARAJAN

Address

:

2B-1805, MAWWELL TOWERS, GASING HEIGHTS, 10, JALAN 5/58C, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

640110-08-6163

Date of Birth

:

10/01/1964

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

23/03/2006

 

MANAGEMENT

 

1)

Name of Subject

:

DIVAKARAN

 

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

LLYDS.EARLE.PANICKER

Auditor' Address

:

SUITE 1.00, WISMA YAKIN, JALAN MASJID INDIA, 6TH FLOOR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. KHAW BEE LING

 

 

 

 

 

New IC No

:

630722-10-6154

 

Address

:

39, JALAN HUJAN EMAS 4, OVERSEAS UNION GARDEN, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. MADONNA A/P A M FRANCIS

 

 

 

 

 

New IC No

:

580924-10-5026

 

Address

:

NO 3 JALAN DUA, TAMAN SRI BUKIT, JALAN BUKIT, 43000 KAJANG, SELANGOR, 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. 

 

LEGAL CHECK AGAINST SUBJECT

 

* A check has been conducted in our databank against 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

:

N/A

Overseas

:

N/A

 

 

 


The Subject refused to disclose its suppliers. 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

EUROPE

ASIA

MIDDLE EAST

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Goods Traded

:

PALM OIL AND PALM OIL DERIVED PRODUCTS

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIA FOOD & BEVERAGE INDUSTRY

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

 


GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

10

10

10

 

 

 

 

 

 

 

Branch

:

NO

 

 

 

Other Information:

The Subject is principally engaged in the (as a / as an) trading of commodities, palm oil and palm oil derived products. 

The Subject is a Malaysian private equity company specializing in the export and physical trade of palm oil and derivative products. 

The Subject supplies the products according to its customers' orders. 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-79587166

Match

:

N/A

 

 

 

Address Provided by Client

:

3-11, BLOCK B, PHILEO DAMANSARA II, NO. 15, JALAN 16/11, OFF JALAN DAMANSARA 46350 PETALING JAYA, SELANGOR DARUL EHSAN

Current Address

:

3-11, BLOCK B, PHILEO DAMANSARA II, NO. 15, JALAN 16/11, OFF JALAN DAMANSARA, 46350 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

NO

 

Other Investigations


we contacted one of the staff from the Subject and she provided some information.

 

 

 

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

15.54%

]

 

Return on Net Assets

:

Acceptable

[

18.19%

]

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject's profit fell sharply because of the high operating costs incurred. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Nil

[

0 Days

]

 

Debtor Ratio

:

Favourable

[

36 Days

]

 

Creditors Ratio

:

Favourable

[

34 Days

]

 

 

As the Subject is a service oriented company, the Subject does not need to keep 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

:

Favourable

[

1.09 Times

]

 

Current Ratio

:

Unfavourable

[

1.09 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

:

Favourable

[

30.39 Times

]

 

Gearing Ratio

:

Favourable

[

0.17 Times

]

 

 

 

 

 

 

 

 

 

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. 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 :

Although the Subject'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 Subject's profit margin. 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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 : STABLE

 

 

 

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 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

 

 

 

 

 


INDUSTRY ANALYSIS

 

MSIC CODE

46202 : Wholesale of palm oil

 

 

INDUSTRY :

PALM OIL

 

 

 

Oil palm is one of the main drivers of Malaysia's agriculture sector where it has accounting for 71% of its agricultural land bank. Malaysia is the one of the biggest producers and exporters of palm oil prodcuts in the growing global need for oils and fats. The palm oil industry is expected to grow about 7.1% over the next 10 years where it is driven by new plantation expansion, venture of large plantation companies into high potential downstream activities such as processed food, biodiesel, second generation biofuel and oleochemicals. Malaysia currently accounts for 39 % of world palm oil production and 44% of world exports. Taken into account of other oils & fats produced in the country, Malaysia accounts for 12% and 27% of the world's total production and exports of oils and fats. Being one of the biggest producers and exporters of palm oil and palm oil products, Malaysia has an important role to play in fulfilling the growing global need for oils and fats sustainably.

 

In year 2013, the production of crude palm oil is envisaged to rebound 2.5% to 18.9 million tonnes on account of expanded matured areas to 4.44 million hectares. However Malaysian palm oil’s supply and demand for February 2013 with palm oil stocks continued to be lower for the consecutive two months at 2.444 million tonnes, a decrease of 5.23% from January 2013 and was slightly above the average estimation at 2.42 million tonnes. The exports in February 2013 fell 13.98% to 1.398 million tonnes while the palm oil production reduced 19.15% to 1.296 million tonnes. The palm oil production would be expected to be in dismal as the oil palm had entered a low yield cycle currently. 

 

According to the 2013 Budget, the palm oil sector contracted 8.6% during the first half of the year 2012 due to the less favourable weather conditions and natural production down cycle that constrained the output of fresh fruit bunches. However, the yield is expected to improve in the later part of the year, with the subsector registering a smaller contraction of 2.8% in 2012. Total planted areas of oil palm increased substantially by 77,106 hectares to five million hectares as at end-June 2012. Of the total planted areas, 28.4% or 1.5 million hectares are located in Sabah. With the acceleration of planting activity, total planted areas are expected to increase to 5.1 million hectares in 2012.

 

According to the Performance Management and Delivery Unit (Pemandu), the Palm Oil National Key Economic Area (NKEA), Malaysia's most important commodity is expected to contribute from RM125 billion to RM178 billion to the Gross National Income (GNI) and create about 41,600 jobs by 2020, with the government's focus on eight Entry Point Projects (EPPs). As part of the government's efforts to accelerate the country's replanting and new planting programme and manage stock levels, the government has allocated an additional RM432 million as funds for independent smallholders' replanting and new planting initiatives in 2013. According to Pemandu, the government will also accelerate the replanting of oil palm by plantations and smallholders as well as new planting by independent smallholders to 130,000 ha. and raise the area complying with best practices by an additional 200,000 ha. in 2013.

 

However, the future performance of the industry is unpredictable as with many factors that can give impact to the industry is still unknown. Nationally, the sentiments seem positive, internation­ally there are mixed signals but with the current growth rate, an expected increase in demand, a recovering glo­bal economy, analysts and industry sources are reckoning that the bull may be able to hold the bear back.

 

Under the palm oil National Key Economic Areas (NKEAs) in 2011, the launches of the Oil Palm Replanting and New Planting Smallholders Schemes ware improved the smallholders agricultural practices in 2012.The oil extraction rate is set to improve to 21.05% in three-year from 2012 to low of 19.70% as 1.35 more. 

 

In driving speedier harvesting of oil palm fruits, the government has introduced the RM1,000 discount scheme to encourage the use of motorised sickle called Cantas and diamond blade sharpeners to enhance the palm oil industry. MPOB appointed 100 enforcement officers to visit mills to ensure the only good quality crops are processed. Since 2007, the palm oil industry has grown at an average of 14.5 per cent annualy until 2012. If the momentum is maitained for next 5 to 8 years, malaysia will achive its target of two million of hecters palm oil.

 

 

OVERALL INDUSTRY OUTLOOK : Mature

 

 


CREDIT RISK EVALUATION & RECOMMENDATION

 

Incorporated in 2000, the Subject is a Private Limited company, focusing on trading of commodities, palm oil and palm oil derived products. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The Subject is considered as a medium size company with issued and paid up capital standing at MYR 525,007.


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. Being a small company, the Subject's business operation is supported by 10 employees. Overall, we regard that the Subject's management capability is average. 


Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. Return on shareholders' funds of the 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 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 1,644,507, 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. 


Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors. 


The industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the Subject's growth prospect is very much depends on its capacity in sustaining its performance in the market. 


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

 

PROFIT AND LOSS ACCOUNT

 

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

TRISTAR GLOBAL SDN. BHD.

 

Financial Year End

2011-12-31

2010-12-31

2009-12-31

2008-12-31

2007-12-31

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

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

184,958,103

169,396,491

3,626,525

11,589,144

10,177,428

Other Income

216,449

47,668

-

-

-

 

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

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

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

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

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

Total Turnover

185,174,552

169,444,159

3,626,525

11,589,144

10,177,428

Costs of Goods Sold

(183,729,380)

(167,804,206)

-

-

-

 

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

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

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

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

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

Gross Profit

1,445,172

1,639,953

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

333,116

1,021,119

223,999

8,979

196,554

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

333,116

1,021,119

223,999

8,979

196,554

Taxation

(77,588)

(222,359)

(43,600)

-

(2,248)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

255,528

798,760

180,399

8,979

194,306

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

1,038,974

240,214

59,815

50,836

(143,470)

 

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

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

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

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

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

As restated

1,038,974

240,214

59,815

50,836

(143,470)

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,294,502

1,038,974

240,214

59,815

50,836

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,294,502

1,038,974

240,214

59,815

50,836

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

6,201

-

-

-

-

Term loan / Borrowing

5,132

-

-

-

-

 

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

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

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

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

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

 

11,333

-

-

-

-

 

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

 

 

 

 

 

 BALANCE SHEET

 

TRISTAR GLOBAL SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

320,000

9,215

691

2,090

4,733

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

-

-

0

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

320,000

9,215

691

2,090

4,733

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Trade debtors

18,430,952

24,276,505

-

-

-

Other debtors, deposits & prepayments

17,729

357,420

-

-

-

Amount due from director

188,506

199,511

-

-

-

Cash & bank balances

742,215

994,054

-

-

-

Others

60,385

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

19,439,787

25,827,490

900,368

796,808

721,757

 

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

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

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

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

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

TOTAL ASSET

19,759,787

25,836,705

901,059

798,898

726,490

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

17,239,528

23,628,133

-

-

-

Other creditors & accruals

589,053

695,690

-

-

-

Hire purchase & lease creditors

37,423

-

-

-

-

Provision for taxation

-

123,515

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

17,866,004

24,447,338

310,840

539,078

475,649

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,573,783

1,380,152

589,528

257,730

246,108

 

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

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

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

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

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

TOTAL NET ASSETS

1,893,783

1,389,367

590,219

259,820

250,841

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

350,005

350,005

350,005

200,005

200,005

 

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

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

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

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

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

TOTAL SHARE CAPITAL

350,005

350,005

350,005

200,005

200,005

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

1,294,502

1,038,974

240,214

59,815

50,836

 

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

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

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

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

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

TOTAL RESERVES

1,294,502

1,038,974

240,214

59,815

50,836

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,644,507

1,388,979

590,219

259,820

250,841

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Hire purchase creditors

247,534

-

-

-

-

Deferred taxation

1,742

388

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

249,276

388

-

-

-

 

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

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

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

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

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

 

1,893,783

1,389,367

590,219

259,820

250,841

 

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

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

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

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

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

 

 

FINANCIAL RATIO

 

TRISTAR GLOBAL SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

742,215

994,054

-

-

-

Net Liquid Funds

742,215

994,054

-

-

-

Net Liquid Assets

1,573,783

1,380,152

589,528

257,730

246,108

Net Current Assets/(Liabilities)

1,573,783

1,380,152

589,528

257,730

246,108

Net Tangible Assets

1,893,783

1,389,367

590,219

259,820

250,841

Net Monetary Assets

1,324,507

1,379,764

589,528

257,730

246,108

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

284,957

0

-

-

-

Total Liabilities

18,115,280

24,447,726

310,840

539,078

475,649

Total Assets

19,759,787

25,836,705

901,059

798,898

726,490

Net Assets

1,893,783

1,389,367

590,219

259,820

250,841

Net Assets Backing

1,644,507

1,388,979

590,219

259,820

250,841

Shareholders' Funds

1,644,507

1,388,979

590,219

259,820

250,841

Total Share Capital

350,005

350,005

350,005

200,005

200,005

Total Reserves

1,294,502

1,038,974

240,214

59,815

50,836

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.04

0.04

-

-

-

Liquid Ratio

1.09

1.06

-

-

-

Current Ratio

1.09

1.06

2.90

1.48

1.52

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

0

0

-

-

-

Debtors Ratio

36

52

-

-

-

Creditors Ratio

34

51

-

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.17

0.00

-

-

-

Liabilities Ratio

11.02

17.60

0.53

2.07

1.90

Times Interest Earned Ratio

30.39

0.00

-

-

-

Assets Backing Ratio

5.41

3.97

1.69

1.30

1.25

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

0.18

0.60

6.18

0.08

1.93

Net Profit Margin

0.14

0.47

4.97

0.08

1.91

Return On Net Assets

18.19

73.50

37.95

3.46

78.36

Return On Capital Employed

17.84

73.50

37.95

3.46

78.36

Return On Shareholders' Funds/Equity

15.54

57.51

30.56

3.46

77.46

Dividend Pay Out Ratio (Times)

0.00

0.00

-

-

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

 

 

 

 


 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 61.35

UK Pound

1

Rs. 100.21

Euro

1

Rs. 83.52

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT

 

 

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

 

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.