MIRA INFORM REPORT

 

 

Report Date :

27.05.2014

 

IDENTIFICATION DETAILS

 

Name :

BARRY CALLEBAUT MALAYSIA SDN. BHD.

 

 

Formerly Known as :

Kl-Kepong Cocoa Products Sdn Bhd

 

 

Registered Office :

Lot 6.05, Kpmg Tower, 8, First Avenue, Bandar Utama, Level 6, 47800 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.08.2012

 

 

Date of Incorporation :

27.06.1990

 

 

Com. Reg. No.:

200081-D

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

·         Engaged in Producing Chocolate and Cocoa Products

Subject's products ranges includes Chocolate Blocks, Chocolate Nuggets, Bakable Chocolate Chips, Chocolate Couverture, Chocolate Spread, Chocolate Glaze, Chocolate Paste, Chocolate And Compound Ice Cream Coatings, Cocoa Mass And Liquor, Cocoa Preparation, Cocoa Mass, Hazelnut Spread, Hazelnut Glaze, Hazelnut Paste, Cocoa Butter & Lecithinated Cocoa Powder.

 

 

No of Employees :

320 [2014]

 

 

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

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 strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 35% of government revenue in 2011. Bank Negera 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 has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

 

 


* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

N/A - Not Applicable

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

200081-D

COMPANY NAME

:

BARRY CALLEBAUT MALAYSIA SDN. BHD.

FORMER NAME

:

KL-KEPONG COCOA PRODUCTS SDN BHD (11/07/2008)

INCORPORATION DATE

:

27/06/1990

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LOT 6.05, KPMG TOWER, 8, FIRST AVENUE, BANDAR UTAMA, LEVEL 6, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 2, LEBUH SULTAN MOHAMED 1, BANDAR SULTAN SULEIMAN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31693333

FAX.NO.

:

03-31693288

WEB SITE

:

WWW.BARRY-CALLEBAUT.COM

CONTACT PERSON

:

MAURIZIO DECIO ( PRESIDENT )

 

 

 

INDUSTRY CODE

:

10732

PRINCIPAL ACTIVITY

:

MANUFACTURING OF CHOCOLATES & OTHER RELATED PRODUCTS

AUTHORISED CAPITAL

:

MYR 40,000,000.00 DIVIDED INTO 
ORDINARY SHARE 35,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 50,000,000.00 OF MYR 0.10 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 35,000,000.00 DIVIDED INTO 
ORDINARY SHARES 35,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 718,888,000 [2012]

NET WORTH

:

MYR 213,478,000 [2012]

M1000 OVERALL RANKING

:

564[2011]

M1000 INDUSTRY RANKING

:

29[2011]

 

 

 

STAFF STRENGTH

:

320 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

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 chocolates & other related 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

 

OVERALL RANKING

564

686

997

 

INDUSTRY RANKING

29

21

18

 

 

The immediate holding company of the Subject is BARRY CALLEBAUT DECORATIONS B.V., a company incorporated in NETHERLANDS.

 

The ultimate holding company of the Subject is BARRY CALLEBAUT AG, a company incorporated in SWITZERLAND.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 40,000,000.00

MYR 35,000,000.00

11/12/1998

MYR 20,000,000.00

MYR 20,000,000.00

21/12/1995

MYR 16,500,000.00

MYR 16,500,000.00

25/05/1992

MYR 15,000,000.00

MYR 15,000,000.00

19/05/1992

MYR 15,000,000.00

MYR 14,000,000.00

23/04/1992

MYR 15,000,000.00

MYR 13,000,000.00

16/03/1992

MYR 15,000,000.00

MYR 11,000,000.00

21/02/1992

MYR 15,000,000.00

MYR 10,000,000.00

21/01/1992

MYR 15,000,000.00

MYR 9,000,000.00

20/12/1991

MYR 15,000,000.00

MYR 8,000,000.00

22/11/1991

MYR 15,000,000.00

MYR 7,000,000.00

15/10/1991

MYR 15,000,000.00

MYR 6,200,000.00

01/07/1991

MYR 15,000,000.00

MYR 5,400,000.00

14/06/1991

MYR 15,000,000.00

MYR 4,400,000.00

24/09/1990

MYR 1,000,000.00

MYR 100,000.00

27/06/1990

MYR 25,000.00

MYR 2.00


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


Name

Address

IC/PP/Loc No

Shareholding

(%)

BARRY CALLEBAUT DECORATIONS B.V.

DE AMBACHTEN 35, 4881, XZ ZUNDERT, NETHERLANDS.

20085851

21,000,000.00

60.00

BARRY CALLEBAUT BELGIUM NV

AALSTERSESTRAAT 122, B-9280, LEBBEKE-WIEZE, BELGIUM.

0438.950.833

14,000,000.00

40.00

 

 

 

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

------

 

 

 

35,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

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



Local No

Country

Company

(%)

As At

606642M

MALAYSIA

SELBOURNE FOOD SERVICES SDN. BHD.

100.00

29/03/2013

 

 

 

 

 

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. NG YIN PING

Address

:

A7-3, FLORA GREEN CONDOMINIUM, JALAN SUNGAI LONG, BANDAR SUNGAI LONG, 43000 KAJANG, SELANGOR, MALAYSIA.

IC / PP No

:

4876488

New IC No

:

551111-10-5480

Date of Birth

:

11/11/1955

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

25/10/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

VIKTOR WALDEMAR BALLI

Address

:

NIDELBADSTRASSE 96, 8803, RUSCHLIKON ZH, SWITZERLAND.

IC / PP No

:

X3387098

 

 

 

 

 

 

 

 

 

Nationality

:

SWISS

Date of Appointment

:

30/05/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MIKAEL BERTIL NEGLEN

Address

:

UNIT B15-19, WINDSOR TOWER, SERVICE APARTMENT, 62, JALAN SRI HARTAMAS 1, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

X3670091

 

 

 

 

 

 

 

 

 

Nationality

:

SWISS

Date of Appointment

:

17/09/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

MAURIZIO DECIO

 

Position

:

PRESIDENT

 

 

 

 

 

2)

Name of Subject

:

NG YIN PING

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

LILI

 

Position

:

ASSISTANT CREDIT CONTOL MANAGER

 

 

 

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. NG YIN PING

 

IC / PP No

:

4876488

 

New IC No

:

551111-10-5480

 

Address

:

A7-3, FLORA GREEN CONDOMINIUM, JALAN SUNGAI LONG, BANDAR SUNGAI LONG, 43000 KAJANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. TAN AI NING

 

IC / PP No

:

A1846076

 

New IC No

:

710325-10-5406

 

Address

:

7-8-1, MENARA HARTAMAS, JALAN SRI HARTAMAS 3, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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 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

Overseas

:

YES

Import Countries

:

UNITED STATES,BRAZIL,EUROPE



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

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

WORLDWIDE

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

Type of Customer

:

FOOD MANUFACTURERS,DISTRIBUTORS

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

CHOCOLATES & OTHER RELATED PRODUCTS

 

 

 

Product Brand Name

:

KLK COCOA, MAYER, SELBOURNE

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :1995

 

 

 

 

Competitor(s)

:

COCOAHOUSE INDUSTRIES SDN BHD
GOODFOOD INDUSTRIES SDN BHD
GUAN CHONG COCOA MANUFACTURER SDN BHD
KOKO MALAYSIA SDN BHD
TAN KIMHOCK TONG SENG FOOD INDUSTRY SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

MALAYSIA FOOD & BEVERAGE INDUSTRY

 

 

 

Ownership of premises

:

OWNED

 

Factory Size

:

7 ACRES

 

Production Capacity

:

300,000 TO 350,000 TONNES PER YEAR

 

Shifts

:

3

 

 

 

 

 


 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

 

 

 

 


GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

320

320

323

320

320

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of chocolates & other related products. 

The Subject's products ranges are includes chocolate blocks, chocolate nuggets, bakable chocolate chips, chocolate couverture, chocolate spread, chocolate glaze, chocolate paste, chocolate and compound ice cream coatings, cocoa mass and liquor, cocoa preparation, cocoa mass, hazelnut spread, hazelnut glaze, hazelnut paste, cocoa butter & lecithinated cocoa powder.

We were informed that the Subject supplies high quality of cocoa products using the state of art processing technologies. 

The Subject manufactures premium quality coverture and compound chocolate for various industrial confectioners and bakeries applications. 

Besides that the Subject has its own R & D department to meet the customers' requirements and also to maintain the quality of its products. 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0331693333

Current Telephone Number

:

03-31693333

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 2, LEBUH SULTAN MOHAMED 1, BANDAR SULTAN SULEIMAN,42000,PELABUHAN KLANG,SELANGOR.

Current Address

:

LOT 2, LEBUH SULTAN MOHAMED 1, BANDAR SULTAN SULEIMAN, 42000 PELABUHAN KLANG, 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

:

Unfavourable

[

7.16%

]

 

Return on Net Assets

:

Acceptable

[

10.24%

]

 

 

 

 

 

 

 

 

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. 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

:

Unfavourable

[

118 Days

]

 

Debtor Ratio

:

Favourable

[

14 Days

]

 

Creditors Ratio

:

Favourable

[

21 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

[

0.60 Times

]

 

Current Ratio

:

Unfavourable

[

1.41 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

:

Favourable

[

18.27 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. 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the Subject : FAIR

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

INDUSTRY ANALYSIS

 

MSIC CODE

10732 : Manufacture of chocolate and chocolate products

 

 

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 1990, the Subject is a Private Limited company, focusing on manufacturing of chocolates & other related products. 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 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 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 320 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. 

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. 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. Fortunately, 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 213,478,000, 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. 

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts. 

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)

BARRY CALLEBAUT MALAYSIA SDN. BHD.

 

Financial Year End

2012-08-31

2011-08-31

2010-08-31

2009-08-31

2008-09-30

Months

12

12

12

11

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

718,888,000

767,085,000

762,606,000

561,749,000

591,408,000

Other Income

3,721,000

7,007,000

-

-

-

 

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

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

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

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

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

Total Turnover

722,609,000

774,092,000

762,606,000

561,749,000

591,408,000

Costs of Goods Sold

(668,397,000)

(700,420,000)

(732,679,000)

(543,444,000)

(541,042,000)

 

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

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

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

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

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

Gross Profit

54,212,000

73,672,000

29,927,000

18,305,000

50,366,000

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

20,796,000

42,123,000

19,326,000

4,902,000

31,761,000

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

20,796,000

42,123,000

19,326,000

4,902,000

31,761,000

Taxation

(5,510,000)

(7,906,000)

(3,633,000)

(598,000)

(3,798,000)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

15,286,000

34,217,000

15,693,000

4,304,000

27,963,000

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

158,192,000

123,975,000

112,769,000

108,465,000

81,502,000

Prior year adjustment

-

-

(4,487,000)

-

-

 

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

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

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

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

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

As restated

158,192,000

123,975,000

108,282,000

108,465,000

81,502,000

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

173,478,000

158,192,000

123,975,000

112,769,000

109,465,000

TRANSFER TO RESERVES - General

-

-

-

-

(1,000,000)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

173,478,000

158,192,000

123,975,000

112,769,000

108,465,000

 

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

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

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

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

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

 

 

 

 

 

 

Term loan / Borrowing

264,000

1,068,000

1,150,000

1,513,000

969,000

Others

940,000

545,000

1,280,000

2,112,000

3,679,000

 

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

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

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

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

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

 

1,204,000

1,613,000

2,430,000

3,625,000

4,648,000

 

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

BARRY CALLEBAUT MALAYSIA SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

97,010,000

87,460,000

73,287,000

79,556,000

87,743,000

 

 

 

 

 

 

Goodwill on consolidation

828,000

631,000

445,000

-

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

828,000

631,000

445,000

-

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

97,838,000

88,091,000

73,732,000

79,556,000

87,743,000

 

 

 

 

 

 

Stocks

232,511,000

158,650,000

150,436,000

175,890,000

204,373,000

Trade debtors

27,264,000

47,247,000

53,458,000

36,213,000

27,581,000

Other debtors, deposits & prepayments

82,297,000

30,142,000

46,400,000

1,579,000

8,042,000

Amount due from related companies

60,079,000

30,832,000

17,020,000

44,813,000

4,892,000

Cash & bank balances

317,000

3,622,000

4,369,000

12,636,000

18,840,000

Others

707,000

43,000

774,000

1,376,000

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

403,175,000

270,536,000

272,457,000

272,507,000

263,728,000

 

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

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

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

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

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

TOTAL ASSET

501,013,000

358,627,000

346,189,000

352,063,000

351,471,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

38,939,000

25,248,000

38,113,000

40,655,000

11,574,000

Other creditors & accruals

100,960,000

56,229,000

39,412,000

23,780,000

10,683,000

Bank overdraft

4,277,000

-

-

-

-

Short term borrowings/Term loans

-

9,000,000

9,000,000

9,000,000

9,000,000

Other borrowings

-

-

-

17,615,000

33,500,000

Bill & acceptances payable

-

-

-

64,106,000

94,800,000

Amounts owing to related companies

141,928,000

48,128,000

61,302,000

754,000

7,000

Provision for taxation

-

496,000

-

-

403,000

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

286,104,000

139,101,000

147,827,000

155,910,000

159,967,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

117,071,000

131,435,000

124,630,000

116,597,000

103,761,000

 

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

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

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

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

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

TOTAL NET ASSETS

214,909,000

219,526,000

198,362,000

196,153,000

191,504,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

35,000,000

35,000,000

35,000,000

35,000,000

35,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

35,000,000

35,000,000

35,000,000

35,000,000

35,000,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

173,478,000

158,192,000

123,975,000

112,769,000

108,465,000

Capital redemption reserve

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

 

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

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

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

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

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

TOTAL RESERVES

178,478,000

163,192,000

128,975,000

117,769,000

113,465,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

213,478,000

198,192,000

163,975,000

152,769,000

148,465,000

 

 

 

 

 

 

Long term loans

-

18,000,000

27,000,000

36,000,000

36,000,000

Deferred taxation

1,431,000

3,334,000

7,387,000

7,384,000

7,039,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,431,000

21,334,000

34,387,000

43,384,000

43,039,000

 

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

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

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

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

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

 

214,909,000

219,526,000

198,362,000

196,153,000

191,504,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

BARRY CALLEBAUT MALAYSIA SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

317,000

3,622,000

4,369,000

12,636,000

18,840,000

Net Liquid Funds

(3,960,000)

3,622,000

4,369,000

(51,470,000)

(75,960,000)

Net Liquid Assets

(115,440,000)

(27,215,000)

(25,806,000)

(59,293,000)

(100,612,000)

Net Current Assets/(Liabilities)

117,071,000

131,435,000

124,630,000

116,597,000

103,761,000

Net Tangible Assets

214,081,000

218,895,000

197,917,000

196,153,000

191,504,000

Net Monetary Assets

(116,871,000)

(48,549,000)

(60,193,000)

(102,677,000)

(143,651,000)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

4,277,000

27,000,000

36,000,000

126,721,000

173,300,000

Total Liabilities

287,535,000

160,435,000

182,214,000

199,294,000

203,006,000

Total Assets

501,013,000

358,627,000

346,189,000

352,063,000

351,471,000

Net Assets

214,909,000

219,526,000

198,362,000

196,153,000

191,504,000

Net Assets Backing

213,478,000

198,192,000

163,975,000

152,769,000

148,465,000

Shareholders' Funds

213,478,000

198,192,000

163,975,000

152,769,000

148,465,000

Total Share Capital

35,000,000

35,000,000

35,000,000

35,000,000

35,000,000

Total Reserves

178,478,000

163,192,000

128,975,000

117,769,000

113,465,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.00

0.03

0.03

0.08

0.12

Liquid Ratio

0.60

0.80

0.83

0.62

0.37

Current Ratio

1.41

1.94

1.84

1.75

1.65

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

118

75

72

114

126

Debtors Ratio

14

22

26

24

17

Creditors Ratio

21

13

19

27

8

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.02

0.14

0.22

0.83

1.17

Liabilities Ratio

1.35

0.81

1.11

1.30

1.37

Times Interest Earned Ratio

18.27

27.11

8.95

2.35

7.83

Assets Backing Ratio

6.12

6.25

5.65

5.60

5.47

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

2.89

5.49

2.53

0.87

5.37

Net Profit Margin

2.13

4.46

2.06

0.77

4.73

Return On Net Assets

10.24

19.92

10.97

4.35

19.01

Return On Capital Employed

10.00

19.87

10.94

4.35

19.01

Return On Shareholders' Funds/Equity

7.16

17.26

9.57

2.82

18.83

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0




FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.58

UK Pound

1

Rs.98.66

Euro

1

Rs.79.81

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

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.