MIRA INFORM REPORT

 

 

Report Date :

19.05.2014

 

IDENTIFICATION DETAILS

 

Name :

SIME DARBY FUTURES TRADING SDN BHD

 

 

Formerly Known As :

Manpower Development Corporation

 

 

Registered Office :

Main Block, Plantation Tower, 2, Jalan Pju 1A/7, Ara Damansara, Level 10, 47301 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

28.12.1981

 

 

Com. Reg. No.:

79537-A

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading of Crude Palm Oil and Palm Oil Products

 

 

No. of Employees :

100

 

 

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

(30.09.2013)

Current Rating

(01.12.2013)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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.

:

79537-A

COMPANY NAME

:

SIME DARBY FUTURES TRADING SDN BHD

FORMER NAME

:

MANPOWER DEVELOPMENT CORPORATION (MALAYSIA) SDN. BHD. (14/09/1985)

INCORPORATION DATE

:

28/12/1981

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

MAIN BLOCK, PLANTATION TOWER, 2, JALAN PJU 1A/7, ARA DAMANSARA, LEVEL 10, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LEVEL 7, MAIN BLOCK, PLANTATION TOWER 2, JALAN PJU 1A/7 ARA DAMANSARA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78484000

FAX.NO.

:

03-78484172

WEB SITE

:

WWW.SIMEDARBY.COM

CONTACT PERSON

:

JASNI BIN MUHAMAD ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

46202

PRINCIPAL ACTIVITY

:

TRADING OF CRUDE PALM OIL AND PALM OIL PRODUCTS

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO
ORDINARY SHARES 50,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 1,554,185,071 [2012]

NET WORTH

:

MYR 98,121,834 [2012]

M1000 OVERALL RANKING

:

621[2011]

M1000 INDUSTRY RANKING

:

32[2011]

 

 

 

STAFF STRENGTH

:

100 [2013]

BANKER (S)

:

CIMB BANK BHD

LITIGATION

:

TRACED

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MATURE

 

 

HISTORY / BACKGROUND

 

The SC 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 SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC 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 SC is insolvent. The SC 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 SC is principally engaged in the (as a / as an) trading of crude palm oil and palm oil products.

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

 

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

 

 

 

 

YEAR

2011

 

 

OVERALL RANKING

621

 

 

INDUSTRY RANKING

32

 

 

 

The immediate holding company of the SC is SIME DARBY PLANTATION SDN. BHD., a company incorporated in MALAYSIA.

The ultimate holding company of the SC is SIME DARBY BERHAD, a company incorporated in MALAYSIA.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

SIME DARBY PLANTATION SDN. BHD.

MAIN BLOCK, PLANTATION TOWER, 2, JALAN PJU 1A/7, ARA DAMANSARA, LEVEL 10, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

647766V

50,000,000.00

100.00

 

 

 

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

------

 

 

 

50,000,000.00

100.00

 

 

 

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

=====

+ Also Director

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. JASNI BIN MUHAMAD

Address

:

7, JALAN PJU 1A/24B, ARA DAMANSARA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

610323-03-5135

Date of Birth

:

23/03/1961

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/02/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. RENAKA A/P RAMACHANDRAN

Address

:

19, JALAN ENDAH 6/7, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A0821952

New IC No

:

671005-10-6080

Date of Birth

:

05/10/1967

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

24/08/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. MUSTAMIR BIN MOHAMAD

Address

:

9, JALAN ARA SD7/1B, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A1836639

New IC No

:

720518-10-5399

Date of Birth

:

18/05/1972

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

24/08/2011



MANAGEMENT

 

 

 

1)

Name of Subject

:

JASNI BIN MUHAMAD

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

SANDEEP SINGH

 

Position

:

SENIOR MARKETING MANAGER

 

 

 

 

 

3)

Name of Subject

:

MARTIN D'SILVA

 

Position

:

HEAD OF BRAND COMMMUNICATION

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, LEVEL 10, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. AZRIN NASHIHA BINTI ABDUL AZIZ

 

 

 

 

 

New IC No

:

720603-08-5564

 

Address

:

2, JALAN TUN TEJA 35/24, ALAM IMPIAN, 40470 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)


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

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank against the SC whether the subject has been involved in any litigation.

LEGAL ACTION

 

 

 

Code No

:

22

Case No

:

1645

 

 

 

 

 

Year

:

2008

Place

:

KUALA LUMPUR

 

 

 

 

 

Court No

:

D8

 

 

 

 

 

 

 

 

Court

:

HIGH COURT

 

 

 

 

 

 

 

 

Solicitor

:

SKRINE

 

 

 

 

 

 

 

 

Solicitor Tel. No.

:

03-20948111

 

 

 

 

 

 

 

 

Plaintiff

:

ALAMI VEGETABLE OIL PRODUCTS SDN BHD

 

 

 

Defendants

:

SIME DARBY FUTURES TRADING SDN BHD (79537)

WISMA COSPLANT 1, 2 JLN SS 16/4, 14TH FLR, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

Amount Claimed

:

2652864

 

 

 

 

 

 

 

 

Nature of Claim

:

CONTRACT BREACH

 

 

 

 

 

 

 

 

Remark

:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person wo has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.

 

No winding up petition was found in our databank

 

 

 

DEFAULTER CHECK AGAINST SC


* We have checked through the SC 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

 

 

 


CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

MIDDLE EAST

EUROPE

 

 

 

 

 

 

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Goods Traded

:

PALM OIL PRODUCTS

 

 

 

 

Competitor(s)

:

EURO FIDELITY SDN BHD
FELDA MARKETING SERVICES SDN BHD

 

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

100

150

100

100

100

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of crude palm oil and palm oil products.

 
The SC is part of the Sime Darby Group which its dealing in trading and marketing of the palm oil products.


We were informed that the SC's products are divided into two categories as palm products and lauric products.


The SC's Palm products are Fresh fruit bunches (FFB), Crude palm oil, Crude palm olein, Refined Bleached Deodorised Palm Olein,

 

Refined Bleached Deodorised Palm Oil, Refined Bleached Deodorised Palm Stearin, Palm Fatty Acid Distillate, Palm Acid Oil and etc.


The SC's Lauric products are Palm kernel, Crude palm kernel oil, Refined Bleached Deodorised Palm Kernel Olein, Refined Bleached Deodorised Palm Kernel Oil, Refined Bleached Deodorised Palm Kernel Stearin, Palm Kernel Fatty Acid Distillate and etc.

 

The products offered by the SC range from bulk produce to bulk & packed refined products and specialized refined products, which includes other edible oils, sustainable palm products (RSPO)and International Sustainable Carbon Certified Certification (ISCC) products.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-78484000

Match

:

N/A

 

 

 

Address Provided by Client

:

LEVEL 7 MAIN BLOCK PLANTATION TOWER NO 2 JALAN PJAU 1A/7 ARA DAMANSARA 47301 PETALING JAYA SELANGOR DARUL EHSAN

Current Address

:

LEVEL 7, MAIN BLOCK, PLANTATION TOWER 2, JALAN PJU 1A/7 ARA DAMANSARA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the SC and she provided some information on the SC.

The address provided is incorrect.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Favourable

[

43.15%

]

 

Return on Net Assets

:

Favourable

[

42.84%

]

 

 

 

 

 

 

 

 

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. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

0 Days

]

 

Debtor Ratio

:

Favourable

[

37 Days

]

 

Creditors Ratio

:

Favourable

[

0 Days

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.29 Times

]

 

Current Ratio

:

Unfavourable

[

1.29 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the SC : 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 

 

 

 

 

 

 

 


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 products 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 oleo chemicals. 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 1981, the SC is a Private Limited company, focusing on trading of crude palm oil and palm oil products. The SC has been in business for over three decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The SC has strong capital position. We are confident with the SC's business and its future growth prospect.

Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a moderate size company, the SC has a total workforce of 100 employees in its business operations. The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright.

Despite the lower turnover, the SC's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 98,121,834, the SC should be able to maintain its business in the near terms.

The SC'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 SC has a good control over its resources.

The industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the SC'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 SC promptly.

 



PROFIT AND LOSS ACCOUNT

 

 

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

SIME DARBY FUTURES TRADING 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

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

1,554,185,071

1,798,242,589

1,560,440,670

541,265,523

660,052,083

 

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

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

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

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

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

Total Turnover

1,554,185,071

1,798,242,589

1,560,440,670

541,265,523

660,052,083

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

42,040,186

31,874,870

3,759,688

<12,635,169>

17,260,234

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

42,040,186

31,874,870

3,759,688

<12,635,169>

17,260,234

Taxation

299,666

<7,988,624>

<970,117>

3,161,160

<4,442,140>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

42,339,852

23,886,246

2,789,571

<9,474,009>

12,818,094

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

31,291,970

6,531,577

3,742,006

13,216,015

397,921

Prior year adjustment

-

874,147

-

-

-

 

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

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

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

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

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

As restated

31,291,970

7,405,724

3,742,006

13,216,015

397,921

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

73,631,822

31,291,970

6,531,577

3,742,006

13,216,015

DIVIDENDS - Ordinary (paid & proposed)

<22,500,000>

-

-

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

51,131,822

31,291,970

6,531,577

3,742,006

13,216,015

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

SIME DARBY FUTURES TRADING SDN BHD

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Deferred assets

1,794,017

2,260,853

1,110,166

2,080,283

-

Others

32

-

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,794,049

2,260,853

1,110,166

2,080,283

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

1,794,049

2,260,853

1,110,166

2,080,283

-

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

72,741

12,070,789

143,370,990

72,147,963

96,891,018

Trade debtors

157,423,698

21,964,208

71,967,420

79,225,466

187,614,685

Other debtors, deposits & prepayments

2,313,211

329,381

22,636,433

3,077,961

2,609,337

Short term deposits

-

-

-

-

5,000,000

Amount due from holding company

110,170,324

125,563,131

-

67,599,460

113,510,161

Amount due from related companies

135,475,373

159,038,795

241,435,785

337,280,730

309,489,280

Cash & bank balances

15,846,316

25,245,707

32,280,373

22,844,386

245,777

Others

6,752,493

38,033

986,700

480,600

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

428,054,156

344,250,044

512,677,701

582,656,566

715,360,258

 

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

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

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

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

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

TOTAL ASSET

429,848,205

346,510,897

513,787,867

584,736,849

715,360,258

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

840,446

-

6,110,473

23,160,642

Other creditors & accruals

6,449,379

3,966,057

4,666,896

5,233,486

1,022,717

Amounts owing to holding company

-

-

279,465,738

-

-

Amounts owing to related companies

312,783,683

253,686,952

221,123,656

567,650,884

672,157,596

Provision for taxation

1,649,781

5,646,689

-

-

3,803,288

Other liabilities

10,843,528

1,078,783

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

331,726,371

265,218,927

505,256,290

578,994,843

700,144,243

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

96,327,785

79,031,117

7,421,411

3,661,723

15,216,015

 

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

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

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

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

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

TOTAL NET ASSETS

98,121,834

81,291,970

8,531,577

5,742,006

15,216,015

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

50,000,000

50,000,000

2,000,000

2,000,000

2,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

50,000,000

50,000,000

2,000,000

2,000,000

2,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

51,131,822

31,291,970

6,531,577

3,742,006

13,216,015

Others

<3,009,988>

-

-

-

-

 

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

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

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

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

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

TOTAL RESERVES

48,121,834

31,291,970

6,531,577

3,742,006

13,216,015

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

98,121,834

81,291,970

8,531,577

5,742,006

15,216,015

 

 

 

 

 

 

 

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

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

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

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

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

 

98,121,834

81,291,970

8,531,577

5,742,006

15,216,015

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

SIME DARBY FUTURES TRADING SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

15,846,316

25,245,707

32,280,373

22,844,386

5,245,777

Net Liquid Funds

15,846,316

25,245,707

32,280,373

22,844,386

5,245,777

Net Liquid Assets

96,255,044

66,960,328

<135,949,579>

<68,486,240>

<81,675,003>

Net Current Assets/(Liabilities)

96,327,785

79,031,117

7,421,411

3,661,723

15,216,015

Net Tangible Assets

98,121,834

81,291,970

8,531,577

5,742,006

15,216,015

Net Monetary Assets

96,255,044

66,960,328

<135,949,579>

<68,486,240>

<81,675,003>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

0

0

0

Total Liabilities

331,726,371

265,218,927

505,256,290

578,994,843

700,144,243

Total Assets

429,848,205

346,510,897

513,787,867

584,736,849

715,360,258

Net Assets

98,121,834

81,291,970

8,531,577

5,742,006

15,216,015

Net Assets Backing

98,121,834

81,291,970

8,531,577

5,742,006

15,216,015

Shareholders' Funds

98,121,834

81,291,970

8,531,577

5,742,006

15,216,015

Total Share Capital

50,000,000

50,000,000

2,000,000

2,000,000

2,000,000

Total Reserves

48,121,834

31,291,970

6,531,577

3,742,006

13,216,015

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.05

0.10

0.06

0.04

0.01

Liquid Ratio

1.29

1.25

0.73

0.88

0.88

Current Ratio

1.29

1.30

1.01

1.01

1.02

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

0

2

34

49

54

Debtors Ratio

37

4

17

53

104

Creditors Ratio

0

0

0

4

13

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

0.00

Liabilities Ratio

3.38

3.26

59.22

100.83

46.01

Times Interest Earned Ratio

0.00

0.00

0.00

0.00

0.00

Assets Backing Ratio

1.96

1.63

4.27

2.87

7.61

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

2.70

1.77

0.24

<2.33>

2.61

Net Profit Margin

2.72

1.33

0.18

<1.75>

1.94

Return On Net Assets

42.84

39.21

44.07

<220.05>

113.43

Return On Capital Employed

42.84

39.21

44.07

<220.05>

113.43

Return On Shareholders' Funds/Equity

43.15

29.38

32.70

<164.99>

84.24

Dividend Pay Out Ratio (Times)

0.53

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.86

UK Pound

1

Rs.98.82

Euro

1

Rs.80.71

 

 

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

--

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.