MIRA INFORM REPORT

Report Date :

24.05.2014

IDENTIFICATION DETAILS

Name :	PREMIUM VEGETABLE OILS SDN. BHD.
Formerly Known As :	PREMIUM VEGETABLE OILS BHD (03/11/2003) PREMIER NALIN SDN BHD (15/09/1992) PREMIER NALIN BHD (02/05/1992) PREMIER NALIN SDN BHD (22/03/1991) NALFICO PREMIER OILS SDN BHD (10/09/1985)
Registered Office :	Suite 2-4, Tower Block, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Level 2, 50490 Kuala Lumpur, Wilayah Persekutuan
Country :	Malaysia
Financials (as on) :	31.03.2013
Date of Incorporation :	17.05.1978
Com. Reg. No.:	39394-P
Legal Form :	Private Limited
Line of Business :	Manufacturing & Sale of specialty oils, palm oil, coconut oil, rapeseed oil & soya bean oil
No of Employees :	300

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
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.

:

39394-P

COMPANY NAME

:

PREMIUM VEGETABLE OILS SDN. BHD.

FORMER NAME

:

PREMIUM VEGETABLE OILS BHD (03/11/2003)
PREMIER NALIN SDN BHD (15/09/1992)
PREMIER NALIN BHD (02/05/1992)
PREMIER NALIN SDN BHD (22/03/1991)
NALFICO PREMIER OILS SDN BHD (10/09/1985)

INCORPORATION DATE

:

17/05/1978

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 2-4, TOWER BLOCK, MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, LEVEL 2, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

PLO 66, JALAN TIMAH DUA, PASIR GUDANG INDUSTRIAL ESTATE, 81707 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2513880

FAX.NO.

:

07-2514492

EMAIL

:

ENQUIRY@PREMIUM-KL.COM

WEB SITE

:

WWW.PREMIUMVEG.COM

CONTACT PERSON

:

THARUMARAJAH A/L THILLARAJAH ( MANAGING DIRECTOR )

INDUSTRY CODE

:

10403

PRINCIPAL ACTIVITY

:

MANUFACTURING & SALE OF SPECIALITY OILS, PALM OIL, COCONUT OIL, RAPESEED OIL & SOYA BEAN OIL

AUTHORISED CAPITAL

:

MYR 100,000,000.00 DIVIDED INTO
ORDINARY SHARE 100,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 54,862,500.00 DIVIDED INTO
ORDINARY SHARES 41,474,116 CASH AND 13,388,384 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 500,057,595 [2013]

NET WORTH

:

MYR 8,901,282 [2013]

M1000 OVERALL RANKING

:

724[2011]

M1000 INDUSTRY RANKING

:

56[2011]

STAFF STRENGTH

:

300 [2014]

BANKER (S)

:

AMBANK (M) BHD BANK MUAMALAT MALAYSIA BHD CIMB BANK BHD EXPORT-IMPORT BANK OF MALAYSIA BHD HSBC BANK MALAYSIA BHD MALAYAN BANKING BHD MALAYSIAN TRUSTEES BHD RHB BANK BHD STANDARD CHARTERED BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MATURE

HISTORY / BACKGROUND

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) manufacturing & sale of speciality oils, palm oil, coconut oil, rapeseed oil & soya bean oil.

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

According to the Malaysia 1000 publication, the Subject's ranking are as follows:
YEAR	2011	2009	2008	2005	2004
OVERALL RANKING	724	723	787	673	745
INDUSTRY RANKING	56	52	54	55	55

The immediate holding company of the Subject is PREMIUM NUTRIENTS PRIVATE LIMITED, a company incorporated in SINGAPORE.

The ultimate holding company of the Subject is CARSON CUMBERBATCH PLC, a company incorporated in SRI LANKA.

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
15/02/2013	MYR 100,000,000.00	MYR 54,862,500.00
08/07/2002	MYR 100,000,000.00	MYR 44,887,500.00
08/07/2002	MYR 100,000,000.00	MYR 54,862,500.00
20/09/1996	MYR 50,000,000.00	MYR 33,523,755.00
25/08/1995	MYR 50,000,000.00	MYR 30,568,082.00
25/08/1995	MYR 50,000,000.00	MYR 31,368,082.00
25/11/1992	MYR 45,000,000.00	MYR 20,805,202.00
07/05/1992	MYR 28,500,000.00	MYR 16,807,202.00
11/04/1990	MYR 28,500,000.00	MYR 14,307,202.00
09/09/1988	MYR 12,500,000.00	MYR 11,006,002.00
03/09/1988	MYR 12,500,000.00	MYR 9,006,002.00
12/02/1988	MYR 11,000,000.00	MYR 8,831,983.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
PREMIUM NUTRIENTS PRIVATE LIMITED	1, ROBINSON ROAD, 17 AIA TOWER, 048542, SINGAPORE.	201114488W	54,862,500.00	100.00
			---------------	------
			54,862,500.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	PALEHENALAGE CHANDANA PRIYANKARA TISSERA
Address	:	55, SWARNADISI PLACE, KOSWATTA, NAWALA, SRI LANKA.
IC / PP No	:	N3346843
Nationality	:	SRI LANKAN
Date of Appointment	:	07/07/2011

DIRECTOR 2

Name Of Subject	:	JANAKA MALMALA SUDIRIKKU JAYAWICKRAMA
Address	:	30/17, PERERA GARDEN, PELAWATTA, BATTARAMULLA, SRI LANKA.
IC / PP No	:	N5114753
Nationality	:	SRI LANKAN
Date of Appointment	:	07/07/2011

DIRECTOR 3

Name Of Subject	:	HARIHARAN SELVANATHAN
Address	:	9, NATHAN ROAD, 10-04, REGENCY PARK, 248730, SINGAPORE.
IC / PP No	:	N3569682
Date of Appointment	:	07/07/2011

DIRECTOR 4

Name Of Subject	:	MR. SUBASH CHANDRA PANDIAN CHELLIAH
Address	:	28, JALAN TERASEK 2, BANGSAR BARU, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	4263417
New IC No	:	480818-07-5099
Date of Birth	:	18/08/1948
Nationality	:	MALAYSIAN
Date of Appointment	:	07/07/2011

DIRECTOR 5

Name Of Subject	:	MR. THARUMARAJAH A/L THILLARAJAH
Address	:	56, JALAN SS 15/6A, SUBANG JAYA, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	7718498
New IC No	:	461031-08-5003
Date of Birth	:	31/10/1946
Nationality	:	MALAYSIAN
Date of Appointment	:	02/05/2007

DIRECTOR 6

Name Of Subject	:	JAYAPRAKASH MATHAVAN
Address	:	UNIT 2A-2-2, NURA RHU CONDOMINIUM, JALAN MEDANG, BUKIT BANDARAYA, BANGSAR, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	N3446887
Date of Appointment	:	07/07/2011

DIRECTOR 7

Name Of Subject	:	CHAMINDA SHALIKE KERUNASENA
Address	:	6-5, SUNSET WING, TRILLIAM RESIDENCIES, 153, ELVITIGALA MAWATHA, COLOMBO 8, SRI LANKA.
IC / PP No	:	N3578528
Nationality	:	SRI LANKAN
Date of Appointment	:	01/01/2012

DIRECTOR 8

Name Of Subject	:	MANOHARAN SELVANATHAN
Address	:	83, GEORGE R. DE SILVA MAWATHA, COLOMBO 13, SRI LANKA.
IC / PP No	:	N5123893
Nationality	:	SRI LANKAN
Date of Appointment	:	08/07/2011

MANAGEMENT

1)	Name of Subject	:	THARUMARAJAH A/L THILLARAJAH
	Position	:	MANAGING DIRECTOR

2)	Name of Subject	:	SAGTHI KALIAPPAN
	Position	:	FINANCE MANAGER

3)	Name of Subject	:	GAURY
	Position	:	SECRETARY

AUDITOR

Auditor	:	ERNST & YOUNG
Auditor' Address	:	MENARA MILENIUM, JALAN DAMANLELA,, PUSAT BANDAR DAMANSARA, DAMANSARA HEIGHTS, LEVEL 23A, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MR. NG HOCK HENG
	IC / PP No	:	A0739809
	New IC No	:	670603-08-5369
	Address	:	21, JALAN BU 7/1, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

2)	Company Secretary	:	MR. MOHD SOFIYUDDIN BIN AHMAD TABRANI
	IC / PP No	:	A3597859
	New IC No	:	760920-07-5243
	Address	:	7, JALAN 6, TAMAN SRI UKAY, 68000 AMPANG, SELANGOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

AMBANK (M) BHD

2)

Name

:

BANK MUAMALAT MALAYSIA BHD

3)

Name

:

CIMB BANK BHD

4)

Name

:

EXPORT-IMPORT BANK OF MALAYSIA BHD

5)

Name

:

HSBC BANK MALAYSIA BHD

6)

Name

:

MALAYAN BANKING BHD

7)

Name

:

MALAYSIAN TRUSTEES BHD

8)

Name

:

RHB BANK BHD

9)

Name

:

STANDARD CHARTERED BANK MALAYSIA BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
3	08/03/1985	N/A	STATE BANK OF INDIA	MYR 9,000,000.00	Satisfied
4	14/03/1985	N/A	STATE BANK OF INDIA	MYR 9,000,000.00	Satisfied
5	18/06/1985	N/A	THE CHASE MANHANTTAN BANK NA	MYR 4,000,000.00	Satisfied
6	17/09/1985	N/A	THE CHASE MANHATTAN BANK NA	MYR 4,000,000.00	Satisfied
8	14/02/1986	N/A	UNITED ASIAN BANK BHD	MYR 6,000,000.00	Satisfied
7	13/03/1986	N/A	UNITED ASIAN BANK BHD	MYR 6,000,000.00	Satisfied
9	13/11/1986	N/A	STATE BANK OF INDIA	MYR 900,000.00	Satisfied
10	13/11/1986	N/A	STATE BANK OF INDIA	MYR 900,000.00	Satisfied
11	05/03/1987	N/A	STATE BANK OF INDIAAS TRUSTEE	MYR 22,900,000.00	Satisfied
12	05/03/1987	N/A	ARAB MALAYSIAN MERCHANT BANK BHD	MYR 2,500,000.00	Satisfied
13	05/03/1987	N/A	THE PACIFIC BANK BHD	MYR 500,000.00	Satisfied
14	09/04/1988	N/A	UNITED ASIAN BANK BERHAD	MYR 3,000,000.00	Satisfied
15	13/06/1988	N/A	BANK BURUH MALAYSIA BERHAD	MYR 1,690,000.00	Satisfied
16	13/06/1988	N/A	THE PACIFIC BANK BERHAD	MYR 2,000,000.00	Satisfied
17	13/06/1988	N/A	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 2,500,000.00	Satisfied
18	26/07/1988	N/A	BANK OF COMMERCE BHD	MYR 4,000,000.00	Satisfied
19	26/07/1988	N/A	STATE BANK OF INDIA	MYR 4,000,000.00	Satisfied
20	10/08/1989	N/A	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 10,000,000.00	Satisfied
21	10/08/1989	N/A	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 2,500,000.00	Satisfied
22	10/08/1989	N/A	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 2,500,000.00	Satisfied
23	10/08/1989	N/A	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 2,500,000.00	Satisfied
24	24/08/1989	N/A	ARABMALAYSIAN MERCHANT BANKERS BHD	MYR 34,190,000.00	Satisfied
25	05/12/1989	N/A	UNITED ASIAN BANK BERHAD	MYR 6,000,000.00	Satisfied
26	05/12/1989	N/A	UNITED ASIAN BANK	MYR 3,000,000.00	Satisfied
27	05/12/1989	N/A	BANK BURUH MALAYSIA BERHAD	MYR 1,690,000.00	Satisfied
28	05/12/1989	N/A	THE PACIFIC BANK BERHAD	MYR 2,000,000.00	Satisfied
29	08/05/1990	N/A	BANK OF COMMERCE BERHAD	MYR 4,000,000.00	Satisfied
30	27/12/1990	N/A	EMAS CREDIT LEASING SDN BHD	MYR 7,500,000.00	Satisfied
31	10/09/1993	N/A	BANK BURUH MALAYSIA BERHAD	MYR 7,180,070.00	Satisfied
32	27/06/1995	N/A	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 6,800,000.00	Satisfied
33	21/08/1996	N/A	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 6,800,000.00	Satisfied
34	21/08/1996	N/A	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 6,800,000.00	Satisfied
35	31/03/1997	N/A	DANAHARTA URUS SDN BHD	MYR 17,000,000.00	Satisfied
36	31/03/1997	N/A	EON BANK BERHAD	MYR 16,000,000.00	Satisfied
37	31/03/1997	N/A	RHB BANK BERHAD	MYR 3,000,000.00	Satisfied
38	23/12/1998	N/A	EXPORTIMPORT BANK OF MALAYSIA BERHAD	MYR 15,000,000.00	Satisfied
39	24/03/1999	N/A	BANK OF COMMERCE M BERHAD	MYR 5,000,000.00	Satisfied
40	25/08/1999	N/A	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 5,000,000.00	Satisfied
41	06/09/1999	N/A	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 5,000,000.00	Satisfied
53	11/05/2000	N/A	BUMIPUTRACOMMERCE BANK BERHAD	MYR 500,000.00	Satisfied
54	11/05/2000	N/A	RHB BANK BERHAD	MYR 18,000,000.00	Satisfied
55	11/05/2000	N/A	STANDARD CHARTERED BANK MALAYSIA BERHAD	MYR 20,000,000.00	Satisfied
42	26/06/2000	N/A	BANK INDUSTRI TEKNOLOGI MALAYSIA BERHAD	MYR 6,392,550.00	Satisfied
43	26/06/2000	N/A	BUMIPUTRACOMMERCE BANK BERHAD	MYR 6,000,000.00	Satisfied
44	26/06/2000	N/A	BUMIPUTRACOMMERCE BANK BERHAD	MYR 3,000,000.00	Satisfied
45	26/06/2000	N/A	BUMIPUTRACOMMERCE BANK BERHAD	MYR 4,000,000.00	Satisfied
46	26/06/2000	N/A	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 2,500,000.00	Satisfied
47	26/06/2000	N/A	DANAHARTA URUS SDN BHD	MYR 17,000,000.00	Satisfied
48	26/06/2000	N/A	EON BANK BERHAD	MYR 16,000,000.00	Satisfied
49	26/06/2000	N/A	RHB BANK BERHAD	MYR 3,000,000.00	Satisfied
50	26/06/2000	N/A	BUMIPUTRACOMMERCE BANK BERHAD	MYR 500,000.00	Satisfied
51	26/06/2000	N/A	STANDARD CHARTERED BANK MALAYSIA BERHAD	MYR 20,000,000.00	Satisfied
52	26/06/2000	N/A	RHB BANK BERHAD	MYR 18,000,000.00	Satisfied
56	26/07/2002	N/A	HSBC BANK MALAYSIA BERHAD AS SECURITY AGENT FOR HSBC AMANAH MALAYSIA BERHAD AND ITSELF	MYR 1.00	Satisfied
57	16/03/2004	N/A	BANK MUAMALAT MALAYSIA BERHAD	MYR 30,000,000.00	Satisfied
58	31/03/2004	N/A	MALAYSIAN TRUSTEE BERHAD AS SECURITY TRUSTEE	MYR 1.00	Satisfied
59	31/03/2004	N/A	MALAYSIAN TRUSTEES BERHAD AS SECURITY TRUSTEE	MYR 24,196,000.00	Satisfied
60	31/03/2004	N/A	MALAYSIAN TRUSTEES BERHAD AS SECURITY TRUSTEE	MYR 1.00	Satisfied
61	31/03/2004	N/A	MALAYSIAN TRUSTEES BERHAD AS SECURITY TRUSTEE	MYR 24,196,000.00	Satisfied
62	29/04/2004	N/A	MIDF AMANAH INVESTMENT BANK BERHAD	MYR 24,196,000.00	Satisfied
63	29/04/2004	N/A	MIDF AMANAH INVESTMENT BANK BERHAD	MYR 1.00	Satisfied
64	20/07/2005	N/A	MALAYAN BANKING BHD	-	Satisfied
65	08/07/2008	N/A	AMBANK (M) BHD	-	Satisfied
66	23/04/2009	N/A	ASIAN FINANCE BANK BERHAD	-	Satisfied
67	03/12/2009	N/A	STANDARD CHARTERED BANK MALAYSIA BHD	-	Satisfied
68	03/12/2009	N/A	STANDARD CHARTERED BANK MALAYSIA BHD	-	Satisfied
69	03/12/2009	N/A	STANDARD CHARTERED BANK MALAYSIA BHD	-	Satisfied
71	05/02/2010	N/A	BANK MUAMALAT MALAYSIA BHD	-	Satisfied
72	13/03/2012	A DEBENTURE	STANDARD CHARTERED BANK MALAYSIA BERHAD	MYR 162,000,000.00	Unsatisfied
73	13/03/2012	AN ASSIGNMENT AND CHARGE OVER DEBT SERVICES RESERVE ACCOUNT	STANDARD CHARTERED BANK MALAYSIA BERHAD	MYR 162,000,000.00	Unsatisfied
74	13/03/2012	AN ASSIGNMENT AND CHARGE OVER REVENUE COLLECTION ACCOUNT	STANDARD CHARTERED BANK MALAYSIA BERHAD	MYR 162,000,000.00	Unsatisfied
75	13/03/2012	NATIONAL LAND CODE	STANDARD CHARTERED BANK MALAYSIA BERHAD	-	Unsatisfied

LEGAL CHECK AGAINST SUBJECT

* A check has been conducted in our databank against the Subject whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SUBJECT

* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

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

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	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	[	]	Average 61-90 Days	[	]
Fair 91-120 Days	[	X	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES
Domestic Markets	:	MALAYSIA
Overseas	:	YES
Export Market	:	WORLDWIDE
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

SPECIALITY OILS, PALM OIL, COCONUT OIL, RAPESEED OIL & SOYA BEAN OIL

Product Brand Name

:

SUN GOLD, N'COTE, CHEZ, P'COTE, N'ICE, MARGO, SORIN, P'SHORT, P'BAKE, P'FATS, P'SOFT, COCOMEL, COCOREX, MAGFAT, DURABEL, INFAT, GASSTRONOME, SOFT HIGH LIFE, SOFT SPREAD, SUN GHEE, SUN RISE, SUN DROP & ETC

Competitor(s)

:

B.H.B. SDN BHD

FELDA KERNEL PRODUCTS SDN BHD

GOLDEN HOPE PLANTATIONS BHD

PROSPER TRADING SDN BHD

SEONG THYE PLANTATIONS SDN BHD

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

MALAYSIA FOOD & BEVERAGE INDUSTRY

Ownership of premises

:

OWNED

Production Line

:

MORE THAN 15 LINES

Shifts

:

2 SHIFTS

Total Number of Employees:
YEAR	2014	2013	2012	2011
GROUP	N/A	N/A	N/A	N/A
COMPANY	300	251	300	300

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturing & sale of speciality oils, palm oil, coconut oil, rapeseed oil & soya bean oil.

The Subject is principally involved in the manufacturing of palm kernel oil, coconut oil and related products.

We were informed that the Subject is a fully integrated manufacturer of specialty fats such cocoa butter replacer, cocoa butter substitute, cocoa butter equivalent, palm mid fraction, transfree interesterified hand structural fat for margarine, specialty shortening, cooking oil & etc.

These fats and oils are based on palm kernel oil, palm oil, coconut oil, and soyabean oil including those refined and fractionated, interesterified products.

The Subject is also engaged in the manufacturing of rumen bypass fat for dairy cattle and palm kernel pellet as animal feed ingredients.

The Subject manufactures the full range of lauric as well as non-lauric specialty fats suitable for moulding, coating, creaming, filling, baking and other confectionery applications.

We were informed that the Subject also markets refined palm kernel stearin, refined palm kernel oil, refined palm kernel olein, refined coconut oil, super palm olein, palm mid fractions, hydrogenated palm stearin, low colour special grade palm olein with low cloud point.

RECENT DEVELOPMENT

We have checked with the Malaysian National News Agency's (BERNAMA)

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	07-2513880
Match	:	N/A
Address Provided by Client	:	PLO 66, JALAN TIMAH DUA, PASIR GUDANG INDUSTRIAL ESTATE,81707,PASIR GUDANG,JOHOR.
Current Address	:	PLO 66, JALAN TIMAH DUA, PASIR GUDANG INDUSTRIAL ESTATE, 81707 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	:	Decreased	[	27.58%	]
Profit/(Loss) Before Tax	:	Decreased	[	(77.19%)	]
Return on Shareholder Funds	:	Unfavourable	[	(195.12%)	]
Return on Net Assets	:	Unfavourable	[	(7.27%)	]
The lower turnover could be due to the intense market competition. The Subject could be more efficient in controlling its operating costs and had managed to reduce its losses during the year. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	35 Days	]
Debtor Ratio	:	Favourable	[	21 Days	]
Creditors Ratio	:	Favourable	[	10 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	:	Unfavourable	[	0.49 Times	]
Current Ratio	:	Unfavourable	[	0.77 Times	]
A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.
Solvency
Interest Cover	:	Unfavourable	[	(1.03 Times)	]
Gearing Ratio	:	Unfavourable	[	28.68 Times	]
The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.
Overall Assessment :
Although the Subject's turnover decreased, its losses also decreased during the year. This could be the result of more efficient control in its operating costs. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. The Subject's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the Subject : POOR

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
10403 : Manufacture of palm kernel 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 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 1978, the Subject is a Private Limited company, focusing on manufacturing & sale of speciality oils, palm oil, coconut oil, rapeseed oil & soya bean oil. With its long presence in the industry coupled with its vast experiences in the business, the Subject should have built up certain goodwill with its clients over times.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 300 staff in its operations. Overall, we regard that the Subject's management capability is average.

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk.

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.

The Subject's payment record regarded as fair. With poor financial condition, the Subject may unable to pay its creditors on the given period of time.

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.

In view of its poor financial performance, we only recommend credit be proceeded to the Subject with guarantee.

PROFIT AND LOSS ACCOUNT

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

PREMIUM VEGETABLE OILS SDN. BHD.

Financial Year End	2013-03-31	2012-03-31	2010-12-31	2009-12-31	2008-12-31
Months	12	15	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	500,057,595	690,476,615	511,036,504	448,230,828	458,506,144
Other Income	1,258,562	10,077,716	-	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	501,316,157	700,554,331	511,036,504	448,230,828	458,506,144
Costs of Goods Sold	(466,346,393)	(648,538,339)	(478,902,822)	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	34,969,764	52,015,992	32,133,682	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	(19,265,098)	(84,457,696)	(40,529,848)	9,574,346	7,970,022
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	(19,265,098)	(84,457,696)	(40,529,848)	9,574,346	7,970,022
Taxation	1,897,242	3,959,678	(3,789,737)	(2,450,000)	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	(17,367,856)	(80,498,018)	(44,319,585)	7,124,346	7,970,022
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	(56,601,678)	22,154,901	70,890,357	65,857,011	6,977,682
Prior year adjustment	-	-	-	-	56,395,557
	----------------	----------------	----------------	----------------	----------------
As restated	(56,601,678)	22,154,901	70,890,357	65,857,011	63,373,239
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	(73,969,534)	(58,343,117)	26,570,772	72,981,357	71,343,261
TRANSFER TO RESERVES - General	1,573,109	1,741,439	1,071,638	2,298,000	-
DIVIDENDS - Ordinary (paid & proposed)	-	-	(5,487,509)	(4,389,000)	(5,486,250)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	(72,396,425)	(56,601,678)	22,154,901	70,890,357	65,857,011
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	342,556	96,548	86,506	539,060	630,181
Bankers' acceptance	4,524,612	6,154,244	3,662,720	-	-
Hire purchase	48,465	243,710	348,464	106,835	111,098
Loan from holding company	-	2,302,490	4,885,993	-	-
Revolving loans	-	-	-	931,319	1,211,385
Term loan / Borrowing	4,459,136	6,814,980	-	-	-
Others	99,340	133,338	256,710	8,195,197	8,319,855
	----------------	----------------	----------------	----------------	----------------
	9,474,109	15,745,310	9,240,393	9,772,411	10,272,519
	=============	=============	=============	=============	=============

BALANCE SHEET

PREMIUM VEGETABLE OILS SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	173,371,557	136,711,595	103,353,413	93,489,986	95,348,571
Others	168,463	212,960	41,114,399	46,036,998	61,574,702
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	168,463	212,960	41,114,399	46,036,998	61,574,702
Patents / Copyrights	1,067,998	1,050,522	1,023,049	982,228	-
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	1,067,998	1,050,522	1,023,049	982,228	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	174,608,018	137,975,077	145,490,861	140,509,212	156,923,273
Stocks	47,284,763	53,905,494	42,931,400	74,333,222	75,848,739
Trade debtors	28,662,596	41,216,449	53,130,033	64,878,555	73,434,124
Other debtors, deposits & prepayments	10,224,052	12,116,659	13,465,665	26,571,317	19,610,348
Short term deposits	275,000	309,750	3,985,027	3,844,533	2,823,227
Amount due from related companies	41,312,569	14,346,762	12,625,498	-	-
Cash & bank balances	423,840	541,236	283,261	754,168	3,775,000
Others	2,227,299	1,864,724	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	130,410,119	124,301,074	126,420,884	170,381,795	175,491,438
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	305,018,137	262,276,151	271,911,745	310,891,007	332,414,711
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	13,409,556	16,384,773	22,470,766	13,615,844	23,767,424
Other creditors & accruals	13,380,878	4,319,598	3,516,063	3,723,732	8,120,623
Hire purchase & lease creditors	94,079	1,479,690	2,165,484	836,965	1,018,527
Bank overdraft	3,536,537	264,041	1,755,593	7,782,061	8,574,598
Short term borrowings/Term loans	52,400,000	9,300,000	-	-	-
Other borrowings	5,996,546	-	4,576,499	-	19,400,000
Bill & acceptances payable	79,882,177	100,439,979	71,023,119	58,047,941	51,258,850
Amounts owing to holding company	144,900	-	12,608,747	31,682,714	-
Amounts owing to related companies	1,534,250	5,789,679	-	-	-
Provision for taxation	-	-	681,917	550,000	-
Other liabilities	-	-	-	-	32,487,598
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	170,378,923	137,977,760	118,798,188	116,239,257	144,627,620
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	(39,968,804)	(13,676,686)	7,622,696	54,142,538	30,863,818
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	134,639,214	124,298,391	153,113,557	194,651,750	187,787,091
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	54,862,500	54,862,500	54,862,500	54,862,500	54,862,500
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	54,862,500	54,862,500	54,862,500	54,862,500	54,862,500
Revaluation reserve	26,435,207	27,633,490	20,171,012	21,084,377	22,524,156
Retained profit/(loss) carried forward	(72,396,425)	(56,601,678)	22,154,901	70,890,357	65,857,011
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	(45,961,218)	(28,968,188)	42,325,913	91,974,734	88,381,167
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	8,901,282	25,894,312	97,188,413	146,837,234	143,243,667
Long term loans	113,400,000	83,700,000	-	-	-
Lease obligations	-	94,079	2,038,669	-	-
Hire purchase creditors	-	-	-	413,301	1,236,702
Deferred taxation	12,337,932	14,610,000	16,060,228	15,718,501	16,326,722
Others	-	-	37,826,247	31,682,714	26,980,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	125,737,932	98,404,079	55,925,144	47,814,516	44,543,424
	----------------	----------------	----------------	----------------	----------------
	134,639,214	124,298,391	153,113,557	194,651,750	187,787,091
	=============	=============	=============	=============	=============
Contingent Liabilities				63,365,428	72,500,000

FINANCIAL RATIO

PREMIUM VEGETABLE OILS SDN. BHD.

TYPES OF FUNDS
Cash	698,840	850,986	4,268,288	4,598,701	6,598,227
Net Liquid Funds	(82,719,874)	(99,853,034)	(68,510,424)	(61,231,301)	(53,235,221)
Net Liquid Assets	(87,253,567)	(67,582,180)	(35,308,704)	(20,190,684)	(44,984,921)
Net Current Assets/(Liabilities)	(39,968,804)	(13,676,686)	7,622,696	54,142,538	30,863,818
Net Tangible Assets	133,571,216	123,247,869	152,090,508	193,669,522	187,787,091
Net Monetary Assets	(212,991,499)	(165,986,259)	(91,233,848)	(68,005,200)	(89,528,345)
BALANCE SHEET ITEMS
Total Borrowings	255,309,339	195,277,789	81,559,364	68,011,587	82,700,062
Total Liabilities	296,116,855	236,381,839	174,723,332	164,053,773	189,171,044
Total Assets	305,018,137	262,276,151	271,911,745	310,891,007	332,414,711
Net Assets	134,639,214	124,298,391	153,113,557	194,651,750	187,787,091
Net Assets Backing	8,901,282	25,894,312	97,188,413	146,837,234	143,243,667
Shareholders' Funds	8,901,282	25,894,312	97,188,413	146,837,234	143,243,667
Total Share Capital	54,862,500	54,862,500	54,862,500	54,862,500	54,862,500
Total Reserves	(45,961,218)	(28,968,188)	42,325,913	91,974,734	88,381,167
LIQUIDITY (Times)
Cash Ratio	0.00	0.01	0.04	0.04	0.05
Liquid Ratio	0.49	0.51	0.70	0.83	0.69
Current Ratio	0.77	0.90	1.06	1.47	1.21
WORKING CAPITAL CONTROL (Days)
Stock Ratio	35	28	31	61	60
Debtors Ratio	21	22	38	53	58
Creditors Ratio	10	9	17	11	19
SOLVENCY RATIOS (Times)
Gearing Ratio	28.68	7.54	0.84	0.46	0.58
Liabilities Ratio	33.27	9.13	1.80	1.12	1.32
Times Interest Earned Ratio	(1.03)	(4.36)	(3.39)	1.98	1.78
Assets Backing Ratio	2.43	2.25	2.77	3.53	3.42
PERFORMANCE RATIO (%)
Operating Profit Margin	(3.85)	(12.23)	(7.93)	2.14	1.74
Net Profit Margin	(3.47)	(11.66)	(8.67)	1.59	1.74
Return On Net Assets	(7.27)	(55.28)	(20.44)	9.94	9.71
Return On Capital Employed	(7.03)	(54.06)	(19.80)	9.43	9.19
Return On Shareholders' Funds/Equity	(195.12)	(310.87)	(45.60)	4.85	5.56
Dividend Pay Out Ratio (Times)	0.00	0.00	0.12	0.62	0.69
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	63,365,428	72,500,000

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 58.48
UK Pound	1	Rs. 98.67
Euro	1	Rs. 79.80

INFORMATION DETAILS

Analysis Done by :	SMT
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%)

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