MIRA INFORM REPORT

 

 

Report Date :

26.05.2014

 

IDENTIFICATION DETAILS

 

Name :

CARGILL FEED SDN. BHD.

 

 

Registered Office :

Lot 55711, Dry Bulk Terminal, Jalan Mawar, West Port, Pulau Indah, 42009 Pelabuhan Klang, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.05.2013

 

 

Date of Incorporation :

09.01.1986

 

 

Com. Reg. No.:

149374-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacture of prepared animal feeds

 

 

No. of Employees

150

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

D

 


 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays

Source : CIA

 

 

 


EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

149374-D

COMPANY NAME

:

CARGILL FEED SDN. BHD.

FORMER NAME

:

CARGILL (MALACCA) SDN BHD (19/12/1991)

INCORPORATION DATE

:

09/01/1986

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LOT 55711, DRY BULK TERMINAL, JALAN MAWAR, WEST PORT, PULAU INDAH, 42009 PELABUHAN KLANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 55711, DRY BULK TERMINAL, JALAN MAWAR, WESTPORT, PULAU INDAH, 42009 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31011880

FAX.NO.

:

03-31011288

WEB SITE

:

WWW.CARGILL.COM.MY

CONTACT PERSON

:

KWAN CHEW YUNG ( DIRECTOR )

INDUSTRY CODE

:

10800

PRINCIPAL ACTIVITY

:

MANUFACTURING OF ANIMAL FEEDS

AUTHORISED CAPITAL

:

MYR 15,000,000.00 DIVIDED INTO
ORDINARY SHARE 15,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 9,185,000.00 DIVIDED INTO
ORDINARY SHARES 5,511,001 CASH AND 3,673,999 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 477,783,000 [2013]

NET WORTH

:

MYR 158,361,000 [2013]

M1000 OVERALL RANKING

:

718[2011]

M1000 INDUSTRY RANKING

:

6[2011]

STAFF STRENGTH

:

150 [2014]

BANKER (S)

:

DEUTSCHE BANK (MALAYSIA) BHD
RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

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 animal feeds.

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

718

793

733

697

647

INDUSTRY RANKING

6

8

4

3

5

 

The immediate holding company of the Subject is CARGILL HOLDINGS (MALAYSIA) SDN. BHD., a company incorporated in MALAYSIA.

The ultimate holding company of the Subject is CARGILL INC., a company incorporated in UNITED STATES.

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 15,000,000.00

MYR 9,185,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

CARGILL HOLDINGS (MALAYSIA) SDN. BHD.

MENARA TM, OFF JALAN PANTAI BARU, 22ND LEVEL, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

217426K

5,511,000.00

60.00

LEMBAGA TABUNG ANGKATAN TENTERA

BANGUNAN LTAT, JALAN BUKIT BINTANG, 10-12TH FLOOR, 50748 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

ACT 101

3,674,000.00

40.00

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

------

9,185,000.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

813253D

MALAYSIA

CARGILL AQUACULTURE RESOURCES SDN. BHD.

100.00

29/03/2013

477738H

MALAYSIA

INPROSER TECHNOLOGY SDN. BHD.

71.43

29/03/2013

184438T

MALAYSIA

DESA CARGILL SDN. BHD.

51.00

18/07/2013

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. YONG KWA JIUN

Address

:

B13-3, SUASANA SENTRAL CONDOMINIUM, JALAN STESEN SENTRAL 5, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A0860526

New IC No

:

671218-10-5786

Date of Birth

:

18/12/1967

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

27/07/2011

 

DIRECTOR 2

 

Name Of Subject

:

DATO' SULAIMAN BIN YUSOF

Address

:

19, JALAN PINGGIRAN PUTRA 2/2, DESA PINGGIRAN PUTRA, 43000 KAJANG, SELANGOR, MALAYSIA.

IC / PP No

:

0871794

New IC No

:

461213-04-5395

Date of Birth

:

13/12/1946

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

01/08/2003

 

DIRECTOR 3

 

Name Of Subject

:

TAN SRI DATO' ABOO SAMAH BIN ABOO BAKAR

Address

:

117, JALAN ATHINAHAPPAN 1, TAMAN TUN DR. ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

400620-07-5197

Date of Birth

:

20/06/1940

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

03/10/1995

Qualification

:

MALAY COLLEGE KUALA KANGSAR & ROYAL MILITARY COLLEGE (RMC)

Profile

:

COMMISSIONED INTO THE MALAYSIAN ARMED FORCES IN 1960. DURING HIS 36 YEARS OF MILITARY SERVICE, HELD VARIOUS APPOINTMENTS AS STAFF & ADMINISTRATOR AT THE MINISTRY OF DEFENCE, INSTRUCTOR & DIRECTING STAFF AT THE MILITARY TRANNING ESTABLISMENT & HAVE COMMAND FROM 1994 TO 1995, THE FIRST MALAYSIAN ARMY OFFICER TO BE APPOINTED AS THE FORCE COMMANDER OF UNOSOM II IN SOMALIA WITH RANK OF GENERAL & COMMANDING TROOPS FROM 22 COUNTRIES. BEFORE HIS RETIREMENT IN 1995, WAS AS PENASIHAT KHAS MISI PANGAMAN PERTUBUHAN BANGSA2 BERSATU TO PANGLIMA ANGKATAN TENTERA MALAYSIA. A KEEN SPORTMAN, HE RESPRESENTED MALAYSIA IN HOCKEY AT THE 1962 ASIAN GAMES IN JAKARTA, INDONESIA.

Other Info

:

INCLUDES COMMANDING OFFICER 7TH BATTALION (1975-1976) PANGLIMA 5TH INFANTRY BRIGADE (1985-1987) PANGLIMA 10TH INFANTRY BRIGADE (1988-1990) PANGLIMA 4TH INFANTRY DIVISION (1990-1993) PANGLIMA ARMY FIELD HEADQUARTERS (1993-1994) IN 1960/61, AS PLATOON COMMANDER WITH 6TH BATTALION OF THE ROYAL MALAY REGIMENT DEPLOYED IN KINDU, GOMA & BUKAVU IN CONGO (NOW ZAIRE) THE KESATRIA MANGKU NEGARA (KMN) IN 1979 PANGLIMA GEMILANG DARJAH KINABALU (PGDK) IN 1987 JOHAN SETIA MAHKOTA (JSM) IN 1990 DARJAH SULTAN AHMAD SHAH (DSAS) PANGLIMA SETIA ANGKATAN TENTERA (PSAT) IN 1993 PANGLIMA GAGAH ANGKATAN TENTERA (PGAT) IN 1994 PANGLIMA SETIA MAHKOTA (PSM) IN 1995 JEN (B) TAN SRI DATO

 

DIRECTOR 4

 

Name Of Subject

:

JACKIE BLAINE BLACKBURN

Address

:

78, LINGKUNGAN DUTAMAS, DUTA TROPIKA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

466041499

Nationality

:

AMERICAN

Date of Appointment

:

22/08/2013

 

DIRECTOR 5

 

Name Of Subject

:

MR. KOH SONG PAR

Address

:

57, JALAN TEMBAGA MERAH 17, TAMAN SRI SKUDAI, JOHOR, MALAYSIA.

IC / PP No

:

6024963

New IC No

:

601025-07-5345

Date of Birth

:

25/10/1960

Nationality

:

MALAYSIAN

Date of Appointment

:

15/01/2014



MANAGEMENT

 

 

 

1)

Name of Subject

:

KWAN CHEW YUNG

Position

:

DIRECTOR, SALES MANAGER

 

2)

Name of Subject

:

CHAI BOEY WAH

Position

:

FINANCIAL CONTROLLER

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

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

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHOONG LEE WAH

IC / PP No

:

A2198581

New IC No

:

720801-14-5732

Address

:

20, JALAN 3, DESA JAYA, KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

2)

Company Secretary

:

MS. TAI YIT CHAN

IC / PP No

:

A1167797

New IC No

:

690118-10-6160

Address

:

56, JALAN SS 22/29, DAMANSARA JAYA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

DEUTSCHE BANK (MALAYSIA) BHD

 

2)

Name

:

RHB BANK BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

21/05/1988

N/A

DEVELOPMENT COMMERCIAL BANK BHD

MYR 1,620,000.00

Satisfied

2

28/02/1989

N/A

DEVELOPMENT COMMERCIAL BANK BHD

MYR 1,500,000.00

Satisfied

3

26/03/1990

N/A

DEVELOPMENT COMMERCIAL BANK BERHAD

MYR 3,420,000.00

Satisfied

4

26/03/1990

N/A

DEVELOPMENT COMMERCIAL BANK BERHAD

MYR 2,800,000.00

Satisfied

 

 

LEGAL CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SUBJECT


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

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

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

45%

Overseas

:

YES

Percentage

:

55%

Import Countries

:

ARGENTINA,CHINA



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

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
CASH

Type of Customer

:

POULTRY FARMS

 

OPERATIONS

 

Products manufactured

:

ANIMAL NUTRITION FEEDS

Ownership of premises

:

OWNED

Factory / Premises

:

2400 MK 1, TINGKAT PERUSAHAAN 2, PRAI INDUSTRIAL COMPLEX, 13600 PRAI, PULAU PINANG, MALAYSIA.
Tel No: 04-3907432
Fax No: 04-3907355

174 JALAN USAHA 5, AIR KEROH INDUSTRIAL AREA, 75450 AIR KEROH, MELAKA, MALAYSIA.
Tel No: 06-2320633
Fax No: 06-2324080

Shifts

:

2

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

GROUP

N/A

N/A

215

215

215

COMPANY

150

150

150

150

150

 

Branch

:

NO

Other Information:


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

The Subject produces and sells the animal nutrition products and provides consulting services to more than 1,000 customers across the poultry, swine, fish, shrimp, ruminant and pet value chains.

The Subject also provides consulting services in feed manufacturing, farm management, ingredient procurement, quality control and feed formulation to feed companies, livestock integrators and farmers.

The Subject mainly produces four types of feeds as follows :
* Aquaculture Feed for marine shrimp, marine fish, fresh water fish, frog, fresh water prawn and ornamental fish.
* Poultry Feed for various species including broiler, layer, duck, and quail.
* Swine Feed covers a full range of feeds that provides optimum nutrition to the animals.
* Pet Food for dogs and cats.

In addition to complete feed, the Subject has a wide range of base mix products for the home mix segment.

We were informed that the Subject produces its animal nutrition feeds in mash, pallet, crumble and extruded forms.

Besides that, the Subject sells its products in bags of 20kg, 30kg and 50kg.

According to the Subject, it acts as the Headquarters and another two feedmills in Peninsular Malaysia and one related feedmill, Desa Cargill Sdn Bhd based in Sabah.

All the Subject's feedmills are equipped with advanced machineries and warehouse to keep stocks.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-31011880

Match

:

N/A

Address Provided by Client

:

LOT 55711, DRY BULK TERMINAL, JALAN MAWAR, WESTPORT, PULAU INDAH,42009,PELABUHAN KLANG,SELANGOR.

Current Address

:

LOT 55711, DRY BULK TERMINAL, JALAN MAWAR, WESTPORT, PULAU INDAH, 42009 PELABUHAN KLANG, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 16th May 2014 we contacted one of the staff from the Subject and she provided some information.

FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

Return on Shareholder Funds

:

Unfavourable

[

8.62%

]

Return on Net Assets

:

Acceptable

[

17.46%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

18 Days

]

Debtor Ratio

:

Favourable

[

34 Days

]

Creditors Ratio

:

Favourable

[

21 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

:

Favourable

[

3.53 Times

]

Current Ratio

:

Favourable

[

4.12 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

[

5,557.80 Times

]

Gearing Ratio

:

Favourable

[

0.00 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 had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

Overall Assessment :

Generally, the Subject's performance has improved with higher turnover and profit. 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 was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

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

10800 : Manufacture of prepared animal feeds

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 1986, the Subject is a Private Limited company, focusing on manufacturing of animal feeds. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

Over the years, the Subject should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. The Subject is a fairly large and rapidly growing company with over 150 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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 zero geared company, the Subject 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 158,361,000, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

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.

Based on the above condition, we recommend credit be granted to the Subject promptly.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

CARGILL FEED SDN. BHD.

 

Financial Year End

2013-05-31

2012-05-31

2011-05-31

2010-05-31

2009-05-31

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

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

477,783,000

403,719,000

369,327,000

358,730,000

451,568,000

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

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

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

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

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

Total Turnover

477,783,000

403,719,000

369,327,000

358,730,000

451,568,000

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

27,784,000

14,973,000

14,745,000

17,090,000

16,102,000

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

27,784,000

14,973,000

14,745,000

17,090,000

16,102,000

Taxation

(7,038,000)

(3,486,000)

(4,459,000)

(4,450,000)

(2,973,000)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

20,746,000

11,487,000

10,286,000

12,640,000

13,129,000

Minority interests

(7,097,000)

(4,334,000)

(4,652,000)

(5,057,000)

(2,179,000)

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

13,649,000

7,153,000

5,634,000

7,583,000

10,950,000

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

13,649,000

7,153,000

5,634,000

7,583,000

10,950,000

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

111,786,000

104,633,000

103,821,000

102,553,000

92,522,000

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

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

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

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

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

As restated

111,786,000

104,633,000

103,821,000

102,553,000

92,522,000

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

125,435,000

111,786,000

109,455,000

110,136,000

103,472,000

DIVIDENDS - Ordinary (paid & proposed)

(4,822,000)

-

(4,822,000)

(6,315,000)

(919,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

120,613,000

111,786,000

104,633,000

103,821,000

102,553,000

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

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

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

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

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

Others

5,000

20,000

3,000

6,000

92,000

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

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

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

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

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

5,000

20,000

3,000

6,000

92,000

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

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

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

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

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

 

BALANCE SHEET

 

CARGILL FEED SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

36,391,000

36,030,000

32,566,000

31,246,000

30,683,000

Deferred assets

66,000

63,000

-

295,000

142,000

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

66,000

63,000

-

295,000

142,000

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

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

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

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

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

TOTAL LONG TERM ASSETS

36,457,000

36,093,000

32,566,000

31,541,000

30,825,000

Stocks

23,225,000

29,344,000

31,421,000

29,270,000

25,087,000

Trade debtors

44,259,000

33,937,000

35,496,000

28,227,000

36,378,000

Other debtors, deposits & prepayments

591,000

795,000

678,000

631,000

1,237,000

Short term deposits

23,500,000

16,000,000

10,500,000

12,000,000

16,700,000

Amount due from holding company

58,758,000

54,481,000

50,830,000

57,672,000

50,247,000

Amount due from related companies

152,000

142,000

58,000

155,000

2,064,000

Cash & bank balances

11,591,000

7,028,000

7,928,000

7,541,000

6,689,000

Others

-

828,000

892,000

489,000

892,000

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

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

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

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

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

TOTAL CURRENT ASSETS

162,076,000

142,555,000

137,803,000

135,985,000

139,294,000

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

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

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

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

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

TOTAL ASSET

198,533,000

178,648,000

170,369,000

167,526,000

170,119,000

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

26,961,000

23,149,000

29,276,000

31,207,000

33,719,000

Other creditors & accruals

6,828,000

6,096,000

4,666,000

5,381,000

5,596,000

Amounts owing to holding company

1,620,000

684,000

73,000

24,000

42,000

Amounts owing to related companies

2,949,000

2,797,000

1,977,000

1,024,000

1,352,000

Provision for taxation

981,000

493,000

14,000

-

-

Other liabilities

-

-

752,000

354,000

625,000

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

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

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

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

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

TOTAL CURRENT LIABILITIES

39,339,000

33,219,000

36,758,000

37,990,000

41,334,000

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

122,737,000

109,336,000

101,045,000

97,995,000

97,960,000

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

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

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

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

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

TOTAL NET ASSETS

159,194,000

145,429,000

133,611,000

129,536,000

128,785,000

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

9,185,000

9,185,000

9,185,000

9,185,000

9,185,000

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

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

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

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

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

TOTAL SHARE CAPITAL

9,185,000

9,185,000

9,185,000

9,185,000

9,185,000

Retained profit/(loss) carried forward

120,613,000

111,786,000

104,633,000

103,821,000

102,553,000

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

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

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

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

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

TOTAL RESERVES

120,613,000

111,786,000

104,633,000

103,821,000

102,553,000

MINORITY INTEREST

28,563,000

23,524,000

19,190,000

16,302,000

16,866,000

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

158,361,000

144,495,000

133,008,000

129,308,000

128,604,000

Deferred taxation

833,000

934,000

603,000

228,000

181,000

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

833,000

934,000

603,000

228,000

181,000

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

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

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

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

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

159,194,000

145,429,000

133,611,000

129,536,000

128,785,000

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

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

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

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

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

 

FINANCIAL RATIO

 

CARGILL FEED SDN. BHD.

 

TYPES OF FUNDS

Cash

35,091,000

23,028,000

18,428,000

19,541,000

23,389,000

Net Liquid Funds

35,091,000

23,028,000

18,428,000

19,541,000

23,389,000

Net Liquid Assets

99,512,000

79,992,000

69,624,000

68,725,000

72,873,000

Net Current Assets/(Liabilities)

122,737,000

109,336,000

101,045,000

97,995,000

97,960,000

Net Tangible Assets

159,194,000

145,429,000

133,611,000

129,536,000

128,785,000

Net Monetary Assets

98,679,000

79,058,000

69,021,000

68,497,000

72,692,000

BALANCE SHEET ITEMS

Total Borrowings

0

0

0

0

0

Total Liabilities

40,172,000

34,153,000

37,361,000

38,218,000

41,515,000

Total Assets

198,533,000

178,648,000

170,369,000

167,526,000

170,119,000

Net Assets

159,194,000

145,429,000

133,611,000

129,536,000

128,785,000

Net Assets Backing

158,361,000

144,495,000

133,008,000

129,308,000

128,604,000

Shareholders' Funds

158,361,000

144,495,000

133,008,000

129,308,000

128,604,000

Total Share Capital

9,185,000

9,185,000

9,185,000

9,185,000

9,185,000

Total Reserves

120,613,000

111,786,000

104,633,000

103,821,000

102,553,000

LIQUIDITY (Times)

Cash Ratio

0.89

0.69

0.50

0.51

0.57

Liquid Ratio

3.53

3.41

2.89

2.81

2.76

Current Ratio

4.12

4.29

3.75

3.58

3.37

WORKING CAPITAL CONTROL (Days)

Stock Ratio

18

27

31

30

20

Debtors Ratio

34

31

35

29

29

Creditors Ratio

21

21

29

32

27

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

0.00

0.00

0.00

Liabilities Ratio

0.25

0.24

0.28

0.30

0.32

Times Interest Earned Ratio

5,557.80

749.65

4,916.00

2,849.33

176.02

Assets Backing Ratio

17.33

15.83

14.55

14.10

14.02

PERFORMANCE RATIO (%)

Operating Profit Margin

5.82

3.71

3.99

4.76

3.57

Net Profit Margin

2.86

1.77

1.53

2.11

2.42

Return On Net Assets

17.46

10.31

11.04

13.20

12.57

Return On Capital Employed

14.80

8.87

9.65

11.72

11.12

Return On Shareholders' Funds/Equity

8.62

4.95

4.24

5.86

8.51

Dividend Pay Out Ratio (Times)

0.35

0.00

0.86

0.83

0.08

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.79.80

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

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

 

Unlimited

 

71-85

Aa

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

 

Large

 

56-70

A

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

 

Fairly Large

 

41-55

Ba

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

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

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

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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

 

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

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

 

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

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