.

MIRA INFORM REPORT

 

 

Report Date :

28.01.2014

 

IDENTIFICATION DETAILS

 

Name :

IFFCO (MALAYSIA) SDN. BHD.

 

 

Registered Office :

Suite 1005, Wisma Hamzah-Kwong Hing, 1, Leboh Ampang, 10th Floor, 50100 Kuala Lumpur, Wilayah Persekutuan,

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

14.06.1999

 

 

Com. Reg. No.:

485777-W

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacture and sale of oleo chemical products, soap noodles and soaps

 

 

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, 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.

:

485777-W

COMPANY NAME

:

IFFCO (MALAYSIA) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

14/06/1999

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE 1005, WISMA HAMZAH-KWONG HING, 1, LEBOH AMPANG, 10TH FLOOR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

PLO 406, JALAN EMAS, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2543188

FAX.NO.

:

07-2543288

EMAIL

:

MKTGMY@IFFCO.COM

WEB SITE

:

WWW.IFFCO.COM

CONTACT PERSON

:

ASHISH ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

20231

PRINCIPAL ACTIVITY

:

MANUFACTURE AND SALE OF OLEO CHEMICAL PRODUCTS, SOAP NOODLES AND SOAPS

AUTHORISED CAPITAL

:

MYR 35,000,000.00 DIVIDED INTO
ORDINARY SHARE 35,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 30,131,468.00 DIVIDED INTO
ORDINARY SHARES 30,131,468 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 295,068,716 [2012]

NET WORTH

:

MYR 63,469,379 [2012]

 

 

 

STAFF STRENGTH

:

200 [2014]

BANKER (S)

:

HSBC BANK MALAYSIA BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

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 and sale of oleo chemical products, soap noodles and soaps.

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

 

The immediate holding company of the Subject is FRIGERIO CONSERVA ALLANA LIMITED, a company incorporated in INDIA.

The ultimate holding company of the Subject is INDAGRO FOODS LIMITED, a company incorporated in INDIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 35,000,000.00

MYR 30,131,468.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

FRIGERIO CONSERVA ALLANA LIMITED

ALLANA HOUSE, ALLANA ROAD, COLABA, MUMBAI, 400001, INDIA.

U74999MH1989PLC05114

15,065,734.00

50.00

INDAGRO FOOD LIMITED

ALLANA HOUSE, ALLANA ROAD, COLABA, MUMBAI, 400001, INDIA.

U15100MH1992PLC06816

15,065,734.00

50.00

 

 

 

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

------

 

 

 

30,131,468.00

100.00

 

 

 

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

=====

+ Also Director

 

The Subject interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Country

Company

(%)

As At

689827P

MALAYSIA

ASIAN OILS AND DERIVATIVES SDN. BHD.

50.00

29/03/2013

 

 

 

 

 



DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

TIRUMANGALAM KUPPUSWAMY GOWRISHANKAR

Address

:

AL FAHAD BUILDING, FLAT 801, CORNICHE ROAD, SHARJAH, UNITED ARAB EMIRATES.

IC / PP No

:

Z1147401

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

14/06/1999

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

SYED RIZWAN AHMED

Address

:

VILLA 1, PLOT 14, AL FISHT AREA, SHARQ STREET, SHARJAH, UNITED ARAB EMIRATES.

IC / PP No

:

BD1158064

 

 

 

 

 

 

 

 

 

Nationality

:

PAKISTANI

Date of Appointment

:

22/03/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

ALIRAZA FIDAHUSAN MERCHANT

Address

:

VILLA 5, SAEED AL NABOODAH VILLA 214/20, AL GARHOOD ROAD, DUBAI , UNITED ARAB EMIRATES.

IC / PP No

:

F6374666

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

25/08/1999

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. J. RASAMY A/L MANIKKAM

Address

:

9, LORONG DAMANSARA ENDAH, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

570616-08-5271

Date of Birth

:

16/06/1957

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

27/05/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

SWAMINATHAN VISHNAMPET NATARAJAN

Address

:

B-30-06, SUASANA SENTRAL LOFT CONDOMINUM, JALAN STESEN SENTRAL 5, 50570 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

Z2352663

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

31/07/2012

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

ASHISH

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

TAHIRUDDIN

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

ZAINAL ARSHAD

 

Position

:

PRODUCTION MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

MENARA ANSAR, 65, JALAN TRUS, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. WON SWEE HWAN

 

 

 

 

 

New IC No

:

660207-10-6712

 

Address

:

2, JALAN LANG PERUT PUTIH 9 (121), KEPONG BARU, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MR. JASNI BIN ABDUL JALIL

 

 

 

 

 

New IC No

:

630309-07-5323

 

Address

:

47, JALAN SUNGAI CONGKAK 32/43, BUKIT RIMAU, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

09/03/2000

N/A

MALAYAN BANKING BERHAD

MYR 27,000,000.00

Unsatisfied

2

09/03/2000

OPEN CHARGE

HSBC BANK MALAYSIA BERHAD

-

Unsatisfied

3

10/04/2003

N/A

MALAYAN BANKING BERHAD

MYR 14,000,000.00

Unsatisfied

4

24/12/2004

N/A

HSBC BANK MALAYSIA

MYR 10,000,000.00

Unsatisfied

5

17/11/2005

N/A

MALAYAN BANKING BHD

MYR 7,000,000.00

Unsatisfied

6

17/11/2005

N/A

MALAYAN BANKING BHD

MYR 5,000,000.00

Unsatisfied

7

17/11/2005

N/A

MALAYAN BANKING BHD

MYR 20,000,000.00

Unsatisfied

8

17/11/2005

N/A

HSBC BANK MALAYSIA BHD

MYR 10,000,000.00

Unsatisfied

9

17/11/2005

N/A

HSBC BANK MALAYSIA BHD

MYR 26,500,000.00

Unsatisfied

10

15/06/2006

N/A

HSBC BANK MALAYSIA BHD

MYR 7,250,000.00

Unsatisfied

11

15/06/2006

N/A

HSBC BANK MALAYSIA BHD

MYR 26,500,000.00

Unsatisfied

12

15/06/2006

N/A

MALAYAN BANKING BHD

MYR 20,000,000.00

Unsatisfied

13

15/06/2006

N/A

MALAYAN BANKING BHD

MYR 5,000,000.00

Unsatisfied

14

15/06/2006

4TH CHARGE DATED 15TH JUNE 2006

MALAYAN BANKING BHD

MYR 7,000,000.00

Unsatisfied

 

 

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

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

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

NO

 

 

 

 

 

Overseas

:

YES

Percentage

:

100%

Export Market

:

UNITED KINGDOM

MIDDLE EAST

EUROPE

ASIA

Credit Term

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

TELEGRAPHIC TRANSFER (TT)
CHEQUES

Type of Customer

:

FOOD MANUFACTURERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

LAUNDRY SOAP, SOAP NOODLES, TOILET SOAP

 

 

 

Product Brand Name

:

ENERGIZER GOLD , LACE, SAVANNAH , SOLAR , SOLAR PRISM , ENERGIZER L10 , ENERGIZER RP10

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

OWNED

 

Production Capacity

:

APROXIMATELY 100,000 TONNES PER YEAR

 

 

Total Number of Employees:

 

YEAR

2014

2011

2010

2009

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

200

200

200

180

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacture and sale of oleo chemical products, soap noodles and soaps.

The Subject manufactures a wide range of products including distilled fatty acids, soap noodles, stearic acids, glycerin and rumen protected fats.

Besides that the Subject also produces a range of animal feeds for poultry, dairy cattle and other domestic livestock products.

The Subject offers a variety of derivatives and intermediates which find application in a host of industries such as soaps and toiletries, poultry and animal husbandry.

The Subject manufactures fatty acids with vegetable oil as feedstock by molecular splitting in high-pressure splitters using advanced process technology with DCS/SCADA control systems.

The Subject's soap noodles are further converted to soap bars in ultra modern, fully computerized high speed finishing lines with facilities to pack 75 gm to 150 gm bars in unitcartons, flow pack and conventional paper wrap.

The Subject utilizes advanced automated and semi-automated machineries to ensure production of high quality products that meet customers' requirements.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

07-2543188

Match

:

N/A

 

 

 

Address Provided by Client

:

PLO 406 JALAN EMAS 81700 PASIR GUDANG JOHOR

Current Address

:

PLO 406, JALAN EMAS, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

14.66%

]

 

Return on Net Assets

:

Acceptable

[

16.27%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

19 Days

]

 

Debtor Ratio

:

Favourable

[

43 Days

]

 

Creditors Ratio

:

Favourable

[

4 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

:

Acceptable

[

0.92 Times

]

 

Current Ratio

:

Unfavourable

[

1.30 Times

]

 

 

 

 

 

 

 

 

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

8.44 Times

]

 

Gearing Ratio

:

Favourable

[

0.48 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 :

 

 

 

 

 

 

Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. 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 : FAIR

 

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

 

 

 

 

 



INDUSTRY ANALYSIS

 

MSIC CODE

20231 : Manufacture of soap and detergents, cleaning and polishing preparations

 

 

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 1999, the Subject is a Private Limited company, focusing on manufacture and sale of oleo chemical products, soap noodles and soaps. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.

The Subject focuses only on overseas market. This global approach has enabled the Subject to generate a better growth sales. Being an export-oriented company, the Subject however is subjected to certain inherent risk of global economy slowdown, foreign currencies fluctuations and stiff competition in the international market. 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.

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. 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 managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its 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 63,469,379, the Subject should be able to maintain its business in the near terms.

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.

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 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 normally.

 



PROFIT AND LOSS ACCOUNT

 

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

IFFCO (MALAYSIA) SDN. BHD.

 

Financial Year End

2012-06-30

2011-06-30

2010-06-30

2009-06-30

2008-06-30

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

SUMMARY

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

295,068,716

265,249,583

273,375,241

266,394,942

302,251,551

Other Income

83,741

270,793

-

-

-

 

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

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

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

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

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

Total Turnover

295,152,457

265,520,376

273,375,241

266,394,942

302,251,551

Costs of Goods Sold

(265,496,109)

(244,516,413)

-

-

-

 

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

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

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

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

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

Gross Profit

29,656,348

21,003,963

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

10,472,910

2,503,818

13,180,090

10,255,337

2,176,844

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

10,472,910

2,503,818

13,180,090

10,255,337

2,176,844

Taxation

(1,170,000)

(748,000)

(3,332,000)

(2,573,000)

(718,000)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

9,302,910

1,755,818

9,848,090

7,682,337

1,458,844

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

24,035,001

22,279,183

12,431,093

4,748,756

3,289,912

 

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

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

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

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

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

As restated

24,035,001

22,279,183

12,431,093

4,748,756

3,289,912

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

33,337,911

24,035,001

22,279,183

12,431,093

4,748,756

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

33,337,911

24,035,001

22,279,183

12,431,093

4,748,756

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

1,407,102

2,300,569

-

-

4,886,300

 

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

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

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

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

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

 

1,407,102

2,300,569

-

-

4,886,300

 

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

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

 

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

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

 

BALANCE SHEET

 

IFFCO (MALAYSIA) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

56,806,689

62,385,922

68,968,485

74,584,487

79,660,036

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investments

4,154,316

4,154,316

-

-

-

Others

-

-

-

4,154,316

4,154,316

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

4,154,316

4,154,316

4,154,316

4,154,316

4,154,316

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Own goodwill

100,701

124,986

-

-

-

Goodwill on consolidation

-

-

-

173,424

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

100,701

124,986

-

173,424

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

61,061,706

66,665,224

73,122,801

78,912,227

83,814,352

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

15,214,652

20,204,482

-

21,445,502

26,676,489

Trade debtors

34,722,203

27,602,310

-

28,149,589

22,718,819

Other debtors, deposits & prepayments

266,861

226,657

-

500,796

1,436,934

Amount due from related companies

243,864

1,602,332

-

-

-

Cash & bank balances

1,772,269

2,674,021

-

576,739

137,702

Others

-

-

-

932,986

671,816

 

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

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

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

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

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

TOTAL CURRENT ASSETS

52,219,849

52,309,802

52,580,099

51,605,612

51,641,760

 

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

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

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

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

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

TOTAL ASSET

113,281,555

118,975,026

125,702,900

130,517,839

135,456,112

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

2,914,381

7,235,770

-

11,526,560

11,355,280

Other creditors & accruals

5,959,949

6,847,354

-

8,006,460

7,660,434

Hire purchase & lease creditors

-

-

-

46,038

51,763

Bank overdraft

-

-

-

-

12,695

Short term borrowings/Term loans

17,458,269

22,313,081

-

9,268,750

9,268,750

Other borrowings

-

-

-

18,425,584

22,556,908

Bill & acceptances payable

13,200,000

19,290,000

-

20,885,000

23,116,000

Amounts owing to related companies

852

-

-

-

-

Provision for taxation

736,000

-

-

-

-

Lease payables

7,725

15,731

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

40,277,176

55,701,936

58,872,717

68,158,392

74,021,830

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

11,942,673

(3,392,134)

(6,292,618)

(16,552,780)

(22,380,070)

 

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

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

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

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

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

TOTAL NET ASSETS

73,004,379

63,273,090

66,830,183

62,359,447

61,434,282

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

30,131,468

12,131,468

12,131,468

12,131,468

12,131,468

 

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

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

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

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

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

TOTAL SHARE CAPITAL

30,131,468

12,131,468

12,131,468

12,131,468

12,131,468

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

33,337,911

24,035,001

22,279,183

12,431,093

4,748,756

 

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

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

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

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

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

TOTAL RESERVES

33,337,911

24,035,001

22,279,183

12,431,093

4,748,756

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

63,469,379

36,166,469

34,410,651

24,562,561

16,880,224

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

-

18,000,000

-

14,731,811

24,016,046

Lease obligations

-

5,621

-

-

-

Hire purchase creditors

-

-

-

44,075

90,012

Deferred taxation

9,535,000

9,101,000

-

5,021,000

2,448,000

Others

-

-

-

18,000,000

18,000,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

9,535,000

27,106,621

32,419,532

37,796,886

44,554,058

 

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

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

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

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

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

 

73,004,379

63,273,090

66,830,183

62,359,447

61,434,282

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

IFFCO (MALAYSIA) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

1,772,269

2,674,021

-

576,739

137,702

Net Liquid Funds

(11,427,731)

(16,615,979)

-

(20,308,261)

(22,990,993)

Net Liquid Assets

(3,271,979)

(23,596,616)

(6,292,618)

(37,998,282)

(49,056,559)

Net Current Assets/(Liabilities)

11,942,673

(3,392,134)

(6,292,618)

(16,552,780)

(22,380,070)

Net Tangible Assets

72,903,678

63,148,104

66,830,183

62,186,023

61,434,282

Net Monetary Assets

(12,806,979)

(50,703,237)

(38,712,150)

(75,795,168)

(93,610,617)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

30,658,269

59,608,702

-

63,401,258

79,112,174

Total Liabilities

49,812,176

82,808,557

91,292,249

105,955,278

118,575,888

Total Assets

113,281,555

118,975,026

125,702,900

130,517,839

135,456,112

Net Assets

73,004,379

63,273,090

66,830,183

62,359,447

61,434,282

Net Assets Backing

63,469,379

36,166,469

34,410,651

24,562,561

16,880,224

Shareholders' Funds

63,469,379

36,166,469

34,410,651

24,562,561

16,880,224

Total Share Capital

30,131,468

12,131,468

12,131,468

12,131,468

12,131,468

Total Reserves

33,337,911

24,035,001

22,279,183

12,431,093

4,748,756

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.04

0.05

-

0.01

0.00

Liquid Ratio

0.92

0.58

-

0.44

0.34

Current Ratio

1.30

0.94

0.89

0.76

0.70

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

19

28

-

29

32

Debtors Ratio

43

38

-

39

27

Creditors Ratio

4

11

-

16

14

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.48

1.65

-

2.58

4.69

Liabilities Ratio

0.78

2.29

2.65

4.31

7.02

Times Interest Earned Ratio

8.44

2.09

-

0.00

1.45

Assets Backing Ratio

2.42

5.21

5.51

5.13

5.06

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

3.55

0.94

4.82

3.85

0.72

Net Profit Margin

3.15

0.66

3.60

2.88

0.48

Return On Net Assets

16.27

7.59

19.72

16.45

11.50

Return On Capital Employed

16.25

7.58

19.72

16.39

11.49

Return On Shareholders' Funds/Equity

14.66

4.85

28.62

31.28

8.64

Dividend Pay Out Ratio (Times)

0.00

0.00

-

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

-

0

0



FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.71

UK Pound

1

Rs.103.50

Euro

1

Rs.85.82

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.