MIRA INFORM REPORT

 

 

Report Date :

07.05.2014

 

IDENTIFICATION DETAILS

 

Correct Name :

OLEOCOMM GLOBAL SDN. BHD.

 

 

Registered Office :

5-3, Jalan 109f, Plaza Danau 2, Taman Danau Desa, 58100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

20.09.2004

 

 

Com. Reg. No.:

666473-X

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Oil Palm And Oleochemicals

 

 

No. of Employees

5

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

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.

:

666473-X

COMPANY NAME

:

OLEOCOMM GLOBAL SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

20/09/2004

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

5-3, JALAN 109F, PLAZA DANAU 2, TAMAN DANAU DESA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

SUITE 3A-01, BLOCK C, PLAZA MON'T KIARA, JALAN KIARA 1, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-26301815

FAX.NO.

:

03-62500546

HP.NO.

:

0126845044

WEB SITE

:

WWW.OLEOCOMM.COM

CONTACT PERSON

:

ANUJ KAPOOR ( MANAGING DIRECTOR )

INDUSTRY CODE

:

46202

PRINCIPAL ACTIVITY

:

TRADING OF OIL PALM AND OLEOCHEMICALS

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 350,000.00 DIVIDED INTO
ORDINARY SHARES 350,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 192,155,570 [2012]

NET WORTH

:

MYR 3,068,729 [2012]

STAFF STRENGTH

:

5 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

HIGH

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 oil palm and oleochemicals.

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

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 500,000.00

MYR 350,000.00

24/12/2004

MYR 100,000.00

MYR 100,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

RUCHITA KAPOOR +

A-25-7, VISTA KIARA, JALAN KIARA 3, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

H2425759

175,000.00

50.00

MR. ANUJ KAPOOR +

A-25-7, VISTA KIARA, JALAN KIARA 3, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Z2110196

175,000.00

50.00

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

------

350,000.00

100.00

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

=====

+ Also Director




DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

RUCHITA KAPOOR

Address

:

A-25-7, VISTA KIARA, JALAN KIARA 3, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

H2425759

Date of Appointment

:

20/09/2004

 

DIRECTOR 2

 

Name Of Subject

:

MR. ANUJ KAPOOR

Address

:

A-25-7, VISTA KIARA, JALAN KIARA 3, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

Z2110196

Date of Appointment

:

15/03/2007



MANAGEMENT

 

 

 

1)

Name of Subject

:

ANUJ KAPOOR

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

ECOVIS AHL

Auditor' Address

:

9-3, JALAN 109F, PLAZA DANAU 2, TAMAN DANAU DESA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. TEH PEI YUN

New IC No

:

780617-10-5882

Address

:

35, JALAN PUTRI JAYA 11, TAMAN PUTRI JAYA, 43200 CHERAS, SELANGOR, MALAYSIA.

 

2)

Company Secretary

:

MS. FONG WAI MUN

IC / PP No

:

A2164312

New IC No

:

720610-14-5350

Address

:

11, JALAN SS3/66, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

16/03/2011

FACILITIES AGREEMENT

STANDARD CHARTERED BANK MALAYSIA BERHAD

-

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

Percentage

:

85%

Overseas

:

YES

Percentage

:

15%

Import Countries

:

ASIA



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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

X

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

NO

 

 

Overseas

:

YES

Percentage

:

100%

Export Market

:

ASIA

SOUTH EAST ASIA

SOUTH AFRICA

UNITED STATES

EUROPE

MIDDLE EAST

Credit Term

:

AS AGREED

Payment Mode

:

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

Type of Customer

:

END USERS,DISTRIBUTORS,DEALERS

 

OPERATIONS

 

Goods Traded

:

OIL PALM AND OLEOCHEMICALS

 

Total Number of Employees:

YEAR

2014

2009

GROUP

N/A

N/A

COMPANY

5

5

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of oil palm and oleochemicals.

We were informed that the Subject specializes in exports of oleochemicals, oils and fats.

The Subject's products ranges are including fatty acids, fatty alcohol, methyl ester, soap noodles, glycerine, palm oil, palm kernal oil and others.

According to the Subject, it does not keep stocks as direclty supply the products based on the customers' requirements.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-26301815

Match

:

N/A

Address Provided by Client

:

SUITE 3A-01 BLOCK C, PLAZ TE KIARA, JALAN KIARA 1 KUALA LUMPUR MALAYSIA 1350

Current Address

:

SUITE 3A-01, BLOCK C, PLAZA MON'T KIARA, JALAN KIARA 1, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


On 30th April 2014 we contacted one of the staff from the Subject and she provided some information.

The address provided is incorrect.

FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Erratic

[

2008 - 2012

]

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

Return on Shareholder Funds

:

Acceptable

[

12.43%

]

Return on Net Assets

:

Acceptable

[

14.52%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Nil

[

0 Days

]

Debtor Ratio

:

Unfavourable

[

95 Days

]

Creditors Ratio

:

Unfavourable

[

97 Days

]

As the Subject is a service oriented company, the Subject does not need to keep stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

Liquidity

Liquid Ratio

:

Favourable

[

1.06 Times

]

Current Ratio

:

Unfavourable

[

1.06 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

[

17.77 Times

]

Gearing Ratio

:

Favourable

[

0.20 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 :

The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. 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 : 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

# 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 2004, the Subject is a Private Limited company, focusing on trading of oil palm and oleochemicals. Having been in the industry for 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. Presently, the issued and paid up capital of the Subject stands at MYR 350,000.

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. Being a small company, the Subject's business operation is supported by 5 employees. Overall, we regard that the Subject's management capability is average.

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. 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 3,068,729, 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.

The Subject's overall payment habit is fair and this clearly implied a weak credit control of the Subject.

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

 

 

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

OLEOCOMM GLOBAL SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

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

192,155,570

258,150,566

211,919,394

139,646,144

190,985,276

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

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

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

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

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

Total Turnover

192,155,570

258,150,566

211,919,394

139,646,144

190,985,276

Costs of Goods Sold

(190,555,852)

(256,848,374)

-

-

-

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

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

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

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

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

Gross Profit

1,599,718

1,302,192

-

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

495,940

584,437

535,142

497,313

527,974

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

495,940

584,437

535,142

497,313

527,974

Taxation

(114,440)

(110,020)

(114,738)

(82,050)

(110,733)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

381,500

474,417

420,404

415,263

417,241

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

2,337,229

1,862,812

1,442,408

1,027,145

609,904

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

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

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

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

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

As restated

2,337,229

1,862,812

1,442,408

1,027,145

609,904

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

2,718,729

2,337,229

1,862,812

1,442,408

1,027,145

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,718,729

2,337,229

1,862,812

1,442,408

1,027,145

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

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

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

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

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

Hire purchase

6,386

7,490

-

-

-

Term loan / Borrowing

23,191

17,650

-

-

-

Others

-

-

-

-

3,397

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

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

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

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

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

29,577

25,140

-

-

3,397

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

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

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

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

 

 

 

BALANCE SHEET

 

 

OLEOCOMM GLOBAL SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

798,230

833,380

170,102

37,640

67,162

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

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

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

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

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

TOTAL LONG TERM ASSETS

798,230

833,380

170,102

37,640

67,162

Trade debtors

50,016,908

37,836,731

-

-

17,943,246

Other debtors, deposits & prepayments

228,817

67,747

-

-

42,740

Short term deposits

-

-

-

-

1,000,000

Cash & bank balances

3,580,436

280,972

-

-

2,040,234

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

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

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

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

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

TOTAL CURRENT ASSETS

53,826,161

38,185,450

54,836,601

21,177,434

21,026,220

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

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

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

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

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

TOTAL ASSET

54,624,391

39,018,830

55,006,703

21,215,074

21,093,382

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

50,449,750

35,175,503

-

-

18,328,272

Other creditors & accruals

145,928

64,611

-

-

131,840

Hire purchase & lease creditors

36,662

34,718

-

-

56,852

Short term borrowings/Term loans

17,924

17,137

-

-

-

Amounts owing to director

295,861

306,202

-

-

1,062,868

Provision for taxation

59,440

124,432

-

-

125,767

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

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

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

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

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

TOTAL CURRENT LIABILITIES

51,005,565

35,722,603

52,656,345

19,376,999

19,705,599

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

2,820,596

2,462,847

2,180,256

1,800,435

1,320,621

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

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

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

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

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

TOTAL NET ASSETS

3,618,826

3,296,227

2,350,358

1,838,075

1,387,783

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

350,000

350,000

350,000

350,000

350,000

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

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

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

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

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

TOTAL SHARE CAPITAL

350,000

350,000

350,000

350,000

350,000

Retained profit/(loss) carried forward

2,718,729

2,337,229

1,862,812

1,442,408

1,027,145

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

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

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

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

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

TOTAL RESERVES

2,718,729

2,337,229

1,862,812

1,442,408

1,027,145

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,068,729

2,687,229

2,212,812

1,792,408

1,377,145

Long term loans

487,887

506,170

-

-

-

Hire purchase creditors

62,210

102,828

-

-

10,638

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

550,097

608,998

137,546

45,667

10,638

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

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

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

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

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

3,618,826

3,296,227

2,350,358

1,838,075

1,387,783

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

OLEOCOMM GLOBAL SDN. BHD.

 

TYPES OF FUNDS

Cash

3,580,436

280,972

-

-

3,040,234

Net Liquid Funds

3,580,436

280,972

-

-

3,040,234

Net Liquid Assets

2,820,596

2,462,847

2,180,256

1,800,435

1,320,621

Net Current Assets/(Liabilities)

2,820,596

2,462,847

2,180,256

1,800,435

1,320,621

Net Tangible Assets

3,618,826

3,296,227

2,350,358

1,838,075

1,387,783

Net Monetary Assets

2,270,499

1,853,849

2,042,710

1,754,768

1,309,983

BALANCE SHEET ITEMS

Total Borrowings

604,683

660,853

-

-

67,490

Total Liabilities

51,555,662

36,331,601

52,793,891

19,422,666

19,716,237

Total Assets

54,624,391

39,018,830

55,006,703

21,215,074

21,093,382

Net Assets

3,618,826

3,296,227

2,350,358

1,838,075

1,387,783

Net Assets Backing

3,068,729

2,687,229

2,212,812

1,792,408

1,377,145

Shareholders' Funds

3,068,729

2,687,229

2,212,812

1,792,408

1,377,145

Total Share Capital

350,000

350,000

350,000

350,000

350,000

Total Reserves

2,718,729

2,337,229

1,862,812

1,442,408

1,027,145

LIQUIDITY (Times)

Cash Ratio

0.07

0.01

-

-

0.15

Liquid Ratio

1.06

1.07

-

-

1.07

Current Ratio

1.06

1.07

1.04

1.09

1.07

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

-

-

0

Debtors Ratio

95

53

-

-

34

Creditors Ratio

97

50

-

-

35

SOLVENCY RATIOS (Times)

Gearing Ratio

0.20

0.25

-

-

0.05

Liabilities Ratio

16.80

13.52

23.86

10.84

14.32

Times Interest Earned Ratio

17.77

24.25

-

-

156.42

Assets Backing Ratio

10.34

9.42

6.72

5.25

3.97

PERFORMANCE RATIO (%)

Operating Profit Margin

0.26

0.23

0.25

0.36

0.28

Net Profit Margin

0.20

0.18

0.20

0.30

0.22

Return On Net Assets

14.52

18.49

22.77

27.06

38.29

Return On Capital Employed

14.38

18.30

22.77

27.06

36.78

Return On Shareholders' Funds/Equity

12.43

17.65

19.00

23.17

30.30

Dividend Pay Out Ratio (Times)

0.00

0.00

-

-

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

-

0

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.20

UK Pound

1

Rs.101.67

Euro

1

Rs.83.55

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

PDT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

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

 

Fairly Large

 

41-55

Ba

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

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.