MIRA INFORM REPORT

 

 

Report Date :

26.05.2014              

 

IDENTIFICATION DETAILS

 

Name :

BASF PETRONAS CHEMICALS SDN. BHD.

 

 

Registered Office :

The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Level 18, 59200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

28.10.1997

 

 

Com. Reg. No.:

451307-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Chemical Products.

 

 

No. of Employees :

600 (2014)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

NOTES:

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

 

ECGC Country Risk Classification List – 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

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.

:

451307-K

COMPANY NAME

:

BASF PETRONAS CHEMICALS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

28/10/1997

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

2, JALAN ASTAKA U8/87, SEKSYEN U8, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78412200

FAX.NO.

:

03-78466624

WEB SITE

:

WWW.BASF-PETRONAS.COM.MY

CONTACT PERSON

:

WAN ZULKIFLEE BIN WAN ARIFFIN ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

20119

PRINCIPAL ACTIVITY

:

MANUFACTURING OF CHEMICAL PRODUCTS

AUTHORISED CAPITAL

:

MYR 2,400,000,000.00 DIVIDED INTO
ORDINARY SHARE 2,375,000.00 OF MYR 1,000.00 EACH.
PREFERENCE SHARE 25,000.00 OF MYR 1,000.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000,000.00 DIVIDED INTO
ORDINARY SHARES 1,000,000 CASH OF MYR 1,000.00 EACH.

 

 

 

SALES

:

MYR 3,095,278,000 [2012]

NET WORTH

:

MYR 1,139,384,000 [2012]

M1000 OVERALL RANKING

:

199[2011]

M1000 INDUSTRY RANKING

:

8[2011]

 

 

 

STAFF STRENGTH

:

600 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 


HISTORY / BACKGROUND

 

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

 

The Subject is principally engaged in the (as a / as an) manufacturing of chemical products.

 

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

199

114

109

179

278

 

INDUSTRY RANKING

8

3

4

3

6

 

 

The immediate holding company of the Subject is BASF NEDERLAND B.V., a company incorporated in NETHERLANDS.

The ultimate holding company of the Subject is BASF SE, a company incorporated in GERMANY.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/05/2013

MYR 2,400,000,000.00

MYR 1,000,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

BASF NEDERLAND B.V.

GRONINGENSINGEL 1, 6835, EA ARNHEM, NETHERLANDS.

09022883

600,000.00

60.00

PETRONAS CHEMICALS GROUP BERHAD

TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

459830K

400,000.00

40.00

 

 

 

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

------

 

 

 

1,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. WAN ZULKIFLEE BIN WAN ARIFFIN

Address

:

69, WESTERN GARDEN, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

5995503

New IC No

:

600819-07-5545

Date of Birth

:

19/08/1960

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/08/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. ABD HAPIZ BIN ABDULLAH

Address

:

24, JALAN SERUNAI 2, TAMAN KLANG JAYA, 41200 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

5485991

New IC No

:

581007-10-6261

Date of Birth

:

07/10/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

09/06/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

DR PROFESSOR RAINER DIERCKS

Address

:

PHILIPP-MELANCHTHON-STRABE 21, 67346 SPEYER, GERMANY.

IC / PP No

:

225206719

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

24/02/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

DR TORSTEN PENKUHN

Address

:

34, DAKOTA CRESCENT, 19-01, DAKOTA, RESIDENCE, 399936, SINGAPORE.

IC / PP No

:

C4KH5HP60

 

 

 

 

 

 

 

 

 

Nationality

:

DUTCH

Date of Appointment

:

16/01/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

DR JOACHIM ALEXANDER QUEISSER

Address

:

45, KIARA HILLS, 1, JALAN 32/70A, TAMAN SRI HARTAMAS, 52480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

C5JCTJLJK

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

01/08/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

GOPALAN PILLAY

Address

:

FLAT A, 33/F, TOWER 2, 23 OLD PEAK ROAD, DYNASTY COURT, MID LEVELS, HONG KONG.

IC / PP No

:

M00042411

 

 

 

 

 

 

 

 

 

Nationality

:

SOUTH AFRICAN

Date of Appointment

:

07/05/2013

 

 

MANAGEMENT

 

1)

Name of Subject

:

WAN ZULKIFLEE BIN WAN ARIFFIN

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

NORASHIKIN MOKHTAR

 

Position

:

SENIOR FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

VOLKER SEIDL

 

Position

:

MARKETING DIRECTOR

 

 

 

 

 

4)

Name of Subject

:

SURAYA

 

Position

:

ASSISTANT HUMAN RESOURCES DIRECTOR

 

 

 

 

 

5)

Name of Subject

:

ELIZABETH

 

Position

:

CORPORATE COMMUNICATIONS MANAGER

 

 

 

 

 

6)

Name of Subject

:

JASON CHOI KAM HENG

 

Position

:

MAINTENANCE MANAGER

 

 

AUDITOR

 

Auditor

:

KPMG DESA MEGAT & CO.

Auditor' Address

:

KPMG TOWER, 8 FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. PATRICK TONG BING

 

IC / PP No

:

K129290

 

New IC No

:

521211-13-5241

 

Address

:

4A, LANE 31, BROOKE DRIVE,, 96000 SIBU, SARAWAK, MALAYSIA.

 

 

BANKING

 

Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

ENCUMBRANCE (S)

 

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

 

 

LEGAL CHECK AGAINST SUBJECT

 

* A check has been conducted in our databank again 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

:

80%

Overseas

:

YES

Percentage

:

20%

 

 

 

 

 

 


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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

60%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

40%

Export Market

:

AUSTRALIA
INDIA
NEW ZEALAND
ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

 

 

OPERATIONS

 

Products manufactured

:

CHEMICAL PRODUCTS OF ACRYLIC MONOMERS, PLASTICIZERS, OXO ALCOHOL, BUTANEDIOL & DERIVATIVES

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

OWNED

 

Factory / Premises

:

LOT 139,JALAN GEBENG 2/1, KAWASAN PERINDUSTRIAN GEBENG,, 26080 KUANTAN, PAHANG, MALAYSIA.
Tel No: 09-5855000
Fax No: 09-5834623

 

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

600

600

610

900

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of chemical products.

The Subject is partners with BASF ASIA PACIFIC in Germany.

The Subject is a well-known name in the chemical industry and it produces and markets a wide range of essential chemical products.

The Subject owns a world-class integrated Chemical site in Gebeng, Pahang. It has an annual production output of approximately 1 million metric tonnes, which makes the site one of the largest integrated chemical sites in the Asia-Pacific region.

This 'verbund' (integrated) chemical production facility sited in Gebeng, Kuantan, Pahang Darul Makmur is the first such facility for BASF in the Asia Pacific, manufacturing acrylic, oxo-products and butanediol.

The Subject's plants can be categorised into:
1) Plant 1 - Acrylic O Complex
2) Plant 2 - OXO Complex
3) Plant 3 - BDO Complex

The Subject processes and refines petrochemical products and the end products are raw materials and ingredients for general purposes.

The Subject's product is Petrochemicals which is ethylene and propylene ( for plastic products),oxygenated, halogen-free are essential to the production of many pharmaceutical, paints and cosmetic products.

The end-products are among others plastics, adhesives, paints, lacquers, paper, diapers, automobile and industrial coatings, pharmaceuticals, fine chemicals, textiles, leather and personal care materials.

The Subject utilizes advanced automated and semi-automated machineries to ensure production of high quality products.

 

 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-78412200

Match

:

N/A

 

 

 

Address Provided by Client

:

2, JALAN ASTAKA U8/87, SEKSYEN U8, BUKIT JELUTONG,40150,SHAH ALAM,SELANGOR.

Current Address

:

2, JALAN ASTAKA U8/87, SEKSYEN U8, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

 

 

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Favourable

[

55.12%

]

 

Return on Net Assets

:

Favourable

[

70.15%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's profit fell sharply because of the high operating costs incurred. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

25 Days

]

 

Debtor Ratio

:

Acceptable

[

65 Days

]

 

Creditors Ratio

:

Favourable

[

13 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

3.27 Times

]

 

Current Ratio

:

Favourable

[

4.28 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

[

238.68 Times

]

 

Gearing Ratio

:

Favourable

[

0.02 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 : STRONG

 

 

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

20119 : Manufacture of other basic chemicals n.e.c.

 

 

INDUSTRY :

MANUFACTURING

 

 

 

The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domesticoriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand.

 

Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first sevenmonths of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domesticoriented industries continued to expand 8.6% while export-oriented industries grew 4.1%.

 

According to the Department of Statistics, the sales value of the Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion) to record RM52.4 billion as compared to RM48.8 billion reported in year 2012. Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2 billion) as compared with the preceding month. The sales value in December 2012 has been revised positive 7.5% year-on-year to record RM52.6 billion.

 

Output of rubber products increased 3.6% in the first seven month of 2012 mainly supported by continuous demand for rubber gloves. Output of rubber gloves grew 5.9% on account of the expansion in the global healthcare industry and wider usage of gloves in other sectors. Similarly, output of catheters, especially for use in medical appliances, also registered a strong growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in tandem with slowing external demand from the automotive industry, especially China.

 

Meanwhile, production of wood and wood products rebounded 4.6% largely supported by higher demand for wooden and cane furniture (33.5%). The positive performance was attributed to vibrant higher demand from major export destinations such as China and the United States (US) for Malaysian-made furniture. Demand from China accelerated further following the country’s rising income level and the implementation of zero import duty on Malaysian made-furniture. Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.

 

The output of chemicals and chemical products rose 9.9% in the first seven month of year 2012 on account of increasing demand for plastic products (11.8%) and basic chemicals (11.1%). External demand for plastic packaging materials surged during the early part of the year 2012, particularly from Japan and Thailand, as manufacturers resumed operations, which were interrupted by natural calamities and power outages. Chemical production are expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.

 

Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such assolar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

Incorporated in 1997, the Subject is a Private Limited company, focusing on manufacturing of chemical products. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Having strong support from its shareholder has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.


Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. Being a large entity, the Subject has a steady workforce of 600 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. The Subject has a good management capability. Its capable management team has enabled the Subject to keep its business on going. Hence, the future prospect of the Subject is bright.

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. However, the Subject 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 Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 1,139,384,000, the Subject should be able to maintain its business in the near terms.


The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.


We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.


In view of the above favourable condition, we recommend credit be proceeded to the Subject with favourable term.

 

 

PROFIT AND LOSS ACCOUNT

 

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

BASF PETRONAS CHEMICALS 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

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

3,095,278,000

3,453,945,000

3,427,887,000

1,947,889,000

2,441,060,000

 

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

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

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

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

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

Total Turnover

3,095,278,000

3,453,945,000

3,427,887,000

1,947,889,000

2,441,060,000

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

804,062,000

1,196,972,000

1,294,401,000

237,782,000

(209,049,000)

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

804,062,000

1,196,972,000

1,294,401,000

237,782,000

(209,049,000)

Taxation

(176,085,000)

(196,161,000)

24,239,000

(2,621,000)

67,321,000

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

627,977,000

1,000,811,000

1,318,640,000

235,161,000

(141,728,000)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

417,327,000

666,516,000

361,876,000

114,250,000

255,978,000

Prior year adjustment

-

-

-

22,465,000

-

 

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

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

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

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

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

As restated

417,327,000

666,516,000

361,876,000

136,715,000

255,978,000

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,045,304,000

1,667,327,000

1,680,516,000

371,876,000

114,250,000

TRANSFER TO RESERVES - Statutory

-

-

-

(10,000,000)

-

TRANSFER TO RESERVES - General

-

-

(4,000,000)

-

-

DIVIDENDS - Ordinary (paid & proposed)

(650,000,000)

(1,250,000,000)

(1,010,000,000)

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

395,304,000

417,327,000

666,516,000

361,876,000

114,250,000

 

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

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

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

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

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

 

 

 

 

 

 

Lease interest

3,380,000

2,947,000

-

-

-

Others

3,000

5,000

5,000

4,000

4,525,000

 

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

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

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

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

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

 

3,383,000

2,952,000

5,000

4,000

4,525,000

 

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

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

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

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

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

 

 

BALANCE SHEET

 

BASF PETRONAS CHEMICALS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

442,923,000

533,463,000

485,844,000

730,936,000

1,047,686,000

 

 

 

 

 

 

Deferred assets

20,258,000

32,612,000

26,254,000

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

20,258,000

32,612,000

26,254,000

-

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

463,181,000

566,075,000

512,098,000

730,936,000

1,047,686,000

 

 

 

 

 

 

Stocks

211,972,000

180,323,000

166,595,000

132,345,000

148,114,000

Trade debtors

550,000,000

495,733,000

319,348,000

177,847,000

128,039,000

Other debtors, deposits & prepayments

4,906,000

7,121,000

10,672,000

11,745,000

61,695,000

Short term deposits

114,631,000

215,640,000

255,643,000

365,103,000

477,764,000

Amount due from related companies

2,442,000

2,971,000

397,421,000

216,504,000

158,295,000

Cash & bank balances

13,019,000

725,000

13,425,000

5,023,000

4,055,000

Others

274,000

-

13,000

8,264,000

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

897,244,000

902,513,000

1,163,117,000

916,831,000

977,962,000

 

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

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

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

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

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

TOTAL ASSET

1,360,425,000

1,468,588,000

1,675,215,000

1,647,767,000

2,025,648,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

108,622,000

114,936,000

23,415,000

7,144,000

11,906,000

Other creditors & accruals

77,085,000

63,740,000

83,173,000

57,447,000

101,017,000

Hire purchase & lease creditors

7,138,000

8,160,000

-

-

-

Amounts owing to holding company

4,867,000

2,488,000

3,794,000

-

15,288,000

Amounts owing to related companies

474,000

5,511,000

4,122,000

8,558,000

6,372,000

Provision for taxation

3,961,000

24,105,000

1,497,000

1,672,000

1,597,000

Other liabilities

7,302,000

21,310,000

153,949,000

117,587,000

48,464,000

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

209,449,000

240,250,000

269,950,000

192,408,000

184,644,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

687,795,000

662,263,000

893,167,000

724,423,000

793,318,000

 

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

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

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

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

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

TOTAL NET ASSETS

1,150,976,000

1,228,338,000

1,405,265,000

1,455,359,000

1,841,004,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

1,000,000,000

1,000,000,000

1,000,000,000

1,004,000,000

1,014,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

1,000,000,000

1,000,000,000

1,000,000,000

1,004,000,000

1,014,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

-

-

-

196,000,000

686,000,000

Exchange equalisation/fluctuation reserve

(269,920,000)

(221,114,000)

(275,251,000)

(116,517,000)

-

Retained profit/(loss) carried forward

395,304,000

417,327,000

666,516,000

361,876,000

114,250,000

Capital redemption reserve

14,000,000

14,000,000

14,000,000

10,000,000

-

 

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

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

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

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

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

TOTAL RESERVES

139,384,000

210,213,000

405,265,000

451,359,000

800,250,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,139,384,000

1,210,213,000

1,405,265,000

1,455,359,000

1,814,250,000

 

 

 

 

 

 

Lease obligations

11,592,000

18,125,000

-

-

-

Deferred taxation

-

-

-

-

26,754,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

11,592,000

18,125,000

-

-

26,754,000

 

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

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

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

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

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

 

1,150,976,000

1,228,338,000

1,405,265,000

1,455,359,000

1,841,004,000

 

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

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

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

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

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

 

 

FINANCIAL RATIO

 

BASF PETRONAS CHEMICALS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

127,650,000

216,365,000

269,068,000

370,126,000

481,819,000

Net Liquid Funds

127,650,000

216,365,000

269,068,000

370,126,000

481,819,000

Net Liquid Assets

475,823,000

481,940,000

726,572,000

592,078,000

645,204,000

Net Current Assets/(Liabilities)

687,795,000

662,263,000

893,167,000

724,423,000

793,318,000

Net Tangible Assets

1,150,976,000

1,228,338,000

1,405,265,000

1,455,359,000

1,841,004,000

Net Monetary Assets

464,231,000

463,815,000

726,572,000

592,078,000

618,450,000

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

18,730,000

26,285,000

0

0

0

Total Liabilities

221,041,000

258,375,000

269,950,000

192,408,000

211,398,000

Total Assets

1,360,425,000

1,468,588,000

1,675,215,000

1,647,767,000

2,025,648,000

Net Assets

1,150,976,000

1,228,338,000

1,405,265,000

1,455,359,000

1,841,004,000

Net Assets Backing

1,139,384,000

1,210,213,000

1,405,265,000

1,455,359,000

1,814,250,000

Shareholders' Funds

1,139,384,000

1,210,213,000

1,405,265,000

1,455,359,000

1,814,250,000

Total Share Capital

1,000,000,000

1,000,000,000

1,000,000,000

1,004,000,000

1,014,000,000

Total Reserves

139,384,000

210,213,000

405,265,000

451,359,000

800,250,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.61

0.90

1.00

1.92

2.61

Liquid Ratio

3.27

3.01

3.69

4.08

4.49

Current Ratio

4.28

3.76

4.31

4.77

5.30

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

25

19

18

25

22

Debtors Ratio

65

52

34

33

19

Creditors Ratio

13

12

2

1

2

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.02

0.02

0.00

0.00

0.00

Liabilities Ratio

0.19

0.21

0.19

0.13

0.12

Times Interest Earned Ratio

238.68

406.48

258,881.20

59,446.50

(45.20)

Assets Backing Ratio

1.15

1.23

1.41

1.45

1.82

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

25.98

34.66

37.76

12.21

(8.56)

Net Profit Margin

20.29

28.98

38.47

12.07

(5.81)

Return On Net Assets

70.15

97.69

92.11

16.34

(11.11)

Return On Capital Employed

69.72

97.04

92.11

16.34

(11.11)

Return On Shareholders' Funds/Equity

55.12

82.70

93.84

16.16

(7.81)

Dividend Pay Out Ratio (Times)

1.04

1.25

0.77

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.58.48

UK Pound

1

Rs.98.67

Euro

1

Rs.79.81

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

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.