|
Report Date : |
03.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
SOP EDIBLE OILS SDN. BHD. |
|
|
|
|
Registered Office : |
124-126, Jalan Bendahara, P.O. Box 547, 98007 Miri, Sarawak, |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
05.02.2001 |
|
|
|
|
Com. Reg. No.: |
538248-X |
|
|
|
|
Legal Form : |
Private Limited |
|
|
|
|
Line of Business : |
Subject is principally engaged in the refining of palm oil. |
|
|
|
|
No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Malaysia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
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 |
|
REGISTRATION NO. |
: |
538248-X |
||||
|
COMPANY NAME |
: |
SOP EDIBLE OILS SDN. BHD. |
||||
|
FORMER NAME |
: |
SHIN YANG EDIBLE OIL SDN. BHD. (30/12/2009) |
||||
|
INCORPORATION DATE |
: |
05/02/2001 |
||||
|
COMPANY STATUS |
: |
EXIST |
||||
|
LEGAL FORM |
: |
PRIVATE LIMITED |
||||
|
LISTED STATUS |
: |
NO |
||||
|
REGISTERED ADDRESS |
: |
124-126, JALAN BENDAHARA, P.O. BOX 547, 98007 MIRI, SARAWAK, MALAYSIA. |
||||
|
BUSINESS ADDRESS |
: |
124-126, JALAN BENDAHARA, 98000 MIRI, SARAWAK, MALAYSIA. |
||||
|
TEL.NO. |
: |
085-428669 |
||||
|
FAX.NO. |
: |
085-439699 |
||||
|
CONTACT PERSON |
: |
HASBI BIN SUHAILI ( DIRECTOR ) |
||||
|
INDUSTRY CODE |
: |
10402 |
||||
|
PRINCIPAL ACTIVITY |
: |
REFINING OF PALM OIL |
||||
|
AUTHORISED CAPITAL |
: |
MYR 50,000,000.00
DIVIDED INTO |
||||
|
ISSUED AND PAID UP CAPITAL |
: |
MYR 40,000,000.00
DIVIDED INTO |
||||
|
SALES |
: |
MYR 1,692,363,313 [2013] |
||||
|
NET WORTH |
: |
MYR 35,431,808 [2013] |
||||
|
STAFF STRENGTH |
: |
N/A |
||||
|
||||||
|
LITIGATION |
: |
CLEAR |
||||
|
DEFAULTER CHECK |
: |
CLEAR |
||||
|
FINANCIAL CONDITION |
: |
LIMITED |
||||
|
PAYMENT |
: |
SLOW BUT CORRECT |
||||
|
MANAGEMENT CAPABILITY |
: |
AVERAGE |
||||
|
COMMERCIAL RISK |
: |
MODERATE |
||||
|
CURRENCY EXPOSURE |
: |
MODERATE |
||||
|
GENERAL REPUTATION |
: |
GOOD |
||||
|
INDUSTRY OUTLOOK |
: |
MATURE |
||||
HISTORY
/ BACKGROUND
|
The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.
The Subject is principally engaged in the (as a / as an) refining of palm oil.
The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The immediate holding company of the Subject is SOP INDUSTRIES SDN. BHD., a company incorporated in MALAYSIA.
Share Capital History
|
Date |
Authorised Shared Capital |
Issue & Paid Up Capital |
|
15/02/2013 |
MYR 50,000,000.00 |
MYR 40,000,000.00 |
|
30/12/2010 |
MYR 5,000,000.00 |
MYR 1,000,000.00 |
|
05/02/2001 |
MYR 100,000.00 |
MYR 2.00 |
The major shareholder(s) of the Subject are shown as follows :
|
Name |
Address |
IC/PP/Loc No |
Shareholding |
(%) |
|
SOP INDUSTRIES SDN. BHD. |
124-126, JALAN BENDAHARA, 98007 MIRI, SARAWAK, MALAYSIA. |
758562D |
40,000,000.00 |
100.00 |
|
--------------- |
------ |
|||
|
40,000,000.00 |
100.00 |
|||
|
============ |
===== |
DIRECTORS
|
DIRECTOR 1
|
Name Of Subject |
: |
MR. HASBI BIN SUHAILI |
|
Address |
: |
12, TAMAN WON, JALAN MATANG, 93050 KUCHING, SARAWAK, MALAYSIA. |
|
IC / PP No |
: |
K0008849 |
|
New IC No |
: |
630716-13-5071 |
|
Date of Birth |
: |
16/07/1963 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
15/10/2009 |
DIRECTOR 2
|
Name Of Subject |
: |
MR. WONG HEE KWONG |
|
Address |
: |
LOT 354, JALAN CORDIA, BAKAM ROAD, 98000 MIRI, SARAWAK, MALAYSIA. |
|
IC / PP No |
: |
K789261 |
|
New IC No |
: |
620514-13-5541 |
|
Date of Birth |
: |
14/05/1962 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
15/10/2009 |
DIRECTOR 3
|
Name Of Subject |
: |
MR. LING CHIONG SING |
|
Address |
: |
LOT 598, JALAN KAMPUNG LUAK, LUAK BAY, 98000 MIRI, SARAWAK, MALAYSIA. |
|
IC / PP No |
: |
K561872 |
|
New IC No |
: |
560714-13-5499 |
|
Date of Birth |
: |
14/07/1956 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
05/02/2001 |
DIRECTOR 4
|
Name Of Subject |
: |
TAN SRI DATUK LING CHIONG HO |
|
Address |
: |
LOT 409, LUAK BAY, JALAN PANTAI, 98000 MIRI, SARAWAK, MALAYSIA. |
|
IC / PP No |
: |
K317629 |
|
New IC No |
: |
520422-13-5415 |
|
Date of Birth |
: |
22/04/1952 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
15/10/2009 |
|
1) |
Name of Subject |
: |
HASBI BIN SUHAILI |
|
Position |
: |
DIRECTOR |
|
|
Auditor |
: |
ERNST & YOUNG |
|
Auditor' Address |
: |
UNIT 4.1, LOT 698, WISMA YONG LUNG, PELITA COMMERCIAL CENTRE, 4TH FLOOR, 98000 MIRI, SARAWAK, MALAYSIA. |
|
1) |
Company Secretary |
: |
MR. ERIC KIU KWONG SENG |
|
IC / PP No |
: |
K0279636 |
|
|
New IC No |
: |
711030-13-5215 |
|
|
Address |
: |
419, LUAK BAY, JALAN PANTAI, 98000 MIRI, SARAWAK, MALAYSIA. |
|
Banking relations are maintained principally with :
|
1) |
Name |
: |
OCBC BANK (MALAYSIA) BHD |
|
2) |
Name |
: |
HSBC BANK MALAYSIA BHD |
ENCUMBRANCE
(S)
|
|
Charge No |
Creation Date |
Charge Description |
Chargee Name |
Total Charge |
Status |
|
1 |
30/05/2012 |
GENERAL AGREEMENT |
HSBC BANK MALAYSIA BHD |
- |
Unsatisfied |
|
2 |
17/10/2012 |
DEBENTURE |
OCBC BANK (MALAYSIA) BHD |
- |
Unsatisfied |
LITIGATION
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.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT
RECORD
|
|
||
|
SOURCES OF RAW MATERIALS: |
||
|
Local |
: |
YES |
|
Overseas |
: |
YES |
The Subject refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data we
conclude that :
|
OVERALL PAYMENT HABIT |
||||||||||||||
|
Prompt 0-30 Days |
[ |
] |
Good 31-60 Days |
[ |
X |
] |
Average 61-90 Days |
[ |
] |
|||||
|
Fair 91-120 Days |
[ |
] |
Poor >120 Days |
[ |
] |
|||||||||
CLIENTELE
|
|
Local |
: |
YES |
|||
|
Domestic Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
YES |
|||
|
Export Market |
: |
ASIA |
|||
|
Credit Term |
: |
N/A |
|||
|
Payment Mode |
: |
CHEQUES |
|||
OPERATIONS
|
|
Products manufactured |
: |
|
|
|
Branch |
: |
NO |
Other Information:
The Subject is principally engaged in the (as a / as an) refining of palm oil.
The Subject is engaged in the palm oil refinery business.
CURRENT
INVESTIGATION
|
Latest fresh investigations carried out on the Subject indicated that :
|
Telephone Number Provided By Client |
: |
085-428669 |
|
Current Telephone Number |
: |
085-428669 |
|
Match |
: |
YES |
|
Address Provided by Client |
: |
NO 124-126, JALAN BENDAHARA 9800 MIRI SARAAK |
|
Current Address |
: |
124-126, JALAN BENDAHARA, 98000 MIRI, SARAWAK, MALAYSIA. |
|
Match |
: |
NO |
|
Latest Financial Accounts |
: |
YES |
Other Investigations
we contacted one of the staff from the Subject and she provided some
information.
The Subject refused to disclose its number of employees.
The post code provided is incorrect.
FINANCIAL
ANALYSIS
|
|
Profitability |
||||||
|
Turnover |
: |
Increased |
[ |
137.49% |
] |
|
|
Profit/(Loss) Before Tax |
: |
Decreased |
[ |
(180.68%) |
] |
|
|
Return on Shareholder Funds |
: |
Acceptable |
[ |
25.37% |
] |
|
|
Return on Net Assets |
: |
Acceptable |
[ |
18.87% |
] |
|
|
The increase in turnover could be due to the Subject adopting an aggressive marketing strategy.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The Subject's management had generated acceptable return for its shareholders using its assets. |
||||||
|
Working Capital Control |
||||||
|
Stock Ratio |
: |
Favourable |
[ |
30 Days |
] |
|
|
Debtor Ratio |
: |
Favourable |
[ |
17 Days |
] |
|
|
Creditors Ratio |
: |
Favourable |
[ |
10 Days |
] |
|
|
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors. |
||||||
|
Liquidity |
||||||
|
Liquid Ratio |
: |
Unfavourable |
[ |
0.48 Times |
] |
|
|
Current Ratio |
: |
Unfavourable |
[ |
0.88 Times |
] |
|
|
A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations. |
||||||
|
Solvency |
||||||
|
Interest Cover |
: |
Unfavourable |
[ |
2.53 Times |
] |
|
|
Gearing Ratio |
: |
Unfavourable |
[ |
6.95 Times |
] |
|
|
The Subject's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay. |
||||||
|
Overall Assessment : |
||||||
|
The higher turnover had helped to reduce the Subject's losses. 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. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates. |
||||||
|
Overall financial condition of the Subject : LIMITED |
||||||
|
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 |
28,876 |
|
Individual Bankruptcy ( No.) |
16,228 |
18,119 |
19,167 |
19,575 |
21,984 |
|
Individual Bankruptcy ( % ) |
16.7 |
11.7 |
5.8 |
2.1 |
12.3 |
|
INDUSTRIES ( % of Growth ): |
2009 |
2010 |
2011 |
2012 |
2013 |
|
Agriculture |
0.1 |
2.4 |
5.8 |
1.3 |
2.1 |
|
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 |
(6.5) |
(0.3) |
(5.4) |
1.0 |
0.7 |
|
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 # |
(9.0) |
11.9 |
4.7 |
4.8 |
3.5 |
|
Exported-oriented Industries |
(19.0) |
12.1 |
2.8 |
4.1 |
- |
|
Electrical & Electronics |
(30.3) |
28.4 |
(4.0) |
12.7 |
18.6 |
|
Rubber Products |
(10.1) |
25.3 |
20.7 |
3.0 |
8.2 |
|
Wood Products |
(24.1) |
20.1 |
(5.1) |
8.7 |
(3.1) |
|
Textiles & Apparel |
(19.5) |
(0.4) |
13.2 |
(7.1) |
(2.6) |
|
Domestic-oriented Industries |
(9.8) |
16.3 |
6.5 |
8.6 |
- |
|
Food, Beverages & Tobacco |
0.2 |
3.0 |
4.8 |
2.7 |
3.6 |
|
Chemical & Chemical Products |
(7.7) |
16.2 |
10.0 |
10.8 |
(0.7) |
|
Plastic Products |
(9.1) |
2.4 |
3.8 |
- |
- |
|
Iron & Steel |
(32.7) |
29.3 |
2.2 |
(6.6) |
3.4 |
|
Fabricated Metal Products |
(2.5) |
14.9 |
21.8 |
13.8 |
12.2 |
|
Non-metallic Mineral |
(15.5) |
20.2 |
12.1 |
2.9 |
(0.4) |
|
Transport Equipment |
(13.5) |
36.5 |
12.0 |
3.4 |
13.8 |
|
Paper & Paper Products |
(5.0) |
18.7 |
9.5 |
3.1 |
2.3 |
|
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 |
6.2 |
11.4 |
4.7 |
18.6 |
10.9 |
|
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 |
2.9 |
7.4 |
7.1 |
6.4 |
5.9 |
|
Electric, Gas & Water |
1.4 |
7.8 |
3.5 |
4.4 |
4.2 |
|
Transport, Storage & Communication |
1.6 |
7.7 |
6.5 |
7.1 |
7.3 |
|
Wholesale, Retail, Hotel & Restaurant |
2.8 |
4.7 |
5.2 |
4.7 |
5.9 |
|
Finance, Insurance & Real Estate |
3.8 |
6.1 |
6.9 |
9.7 |
3.7 |
|
Government Services |
3.4 |
5.9 |
12.4 |
9.4 |
8.3 |
|
Other Services |
3.8 |
4.4 |
5.1 |
3.9 |
5.1 |
|
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 |
INDUSTRY
ANALYSIS
|
|
MSIC CODE |
|
|
10402 : Manufacture of refined palm oil |
|
|
INDUSTRY : |
PALM OIL |
|
Oil palm is one of the main drivers of Malaysia's agriculture sector where it has accounting for 71% of its agricultural land bank. Malaysia is the one of the biggest producers and exporters of palm oil prodcuts in the growing global need for oils and fats. The palm oil industry is expected to grow about 7.1% over the next 10 years where it is driven by new plantation expansion, venture of large plantation companies into high potential downstream activities such as processed food, biodiesel, second generation biofuel and oleochemicals. Malaysia currently accounts for 39 % of world palm oil production and 44% of world exports. Taken into account of other oils & fats produced in the country, Malaysia accounts for 12% and 27% of the world's total production and exports of oils and fats. Being one of the biggest producers and exporters of palm oil and palm oil products, Malaysia has an important role to play in fulfilling the growing global need for oils and fats sustainably. |
|
|
In year 2013, the production of crude palm oil is envisaged to rebound 2.5% to 18.9 million tonnes on account of expanded matured areas to 4.44 million hectares. However Malaysian palm oil’s supply and demand for February 2013 with palm oil stocks continued to be lower for the consecutive two months at 2.444 million tonnes, a decrease of 5.23% from January 2013 and was slightly above the average estimation at 2.42 million tonnes. The exports in February 2013 fell 13.98% to 1.398 million tonnes while the palm oil production reduced 19.15% to 1.296 million tonnes. The palm oil production would be expected to be in dismal as the oil palm had entered a low yield cycle currently. |
|
|
According to the 2013 Budget, the palm oil sector contracted 8.6% during the first half of the year 2012 due to the less favourable weather conditions and natural production down cycle that constrained the output of fresh fruit bunches. However, the yield is expected to improve in the later part of the year, with the subsector registering a smaller contraction of 2.8% in 2012. Total planted areas of oil palm increased substantially by 77,106 hectares to five million hectares as at end-June 2012. Of the total planted areas, 28.4% or 1.5 million hectares are located in Sabah. With the acceleration of planting activity, total planted areas are expected to increase to 5.1 million hectares in 2012. |
|
|
According to the Performance Management and Delivery Unit (Pemandu), the Palm Oil National Key Economic Area (NKEA), Malaysia's most important commodity is expected to contribute from RM125 billion to RM178 billion to the Gross National Income (GNI) and create about 41,600 jobs by 2020, with the government's focus on eight Entry Point Projects (EPPs). As part of the government's efforts to accelerate the country's replanting and new planting programme and manage stock levels, the government has allocated an additional RM432 million as funds for independent smallholders' replanting and new planting initiatives in 2013. According to Pemandu, the government will also accelerate the replanting of oil palm by plantations and smallholders as well as new planting by independent smallholders to 130,000 ha. and raise the area complying with best practices by an additional 200,000 ha. in 2013. |
|
|
However, the future performance of the industry is unpredictable as with many factors that can give impact to the industry is still unknown. Nationally, the sentiments seem positive, internationally there are mixed signals but with the current growth rate, an expected increase in demand, a recovering global economy, analysts and industry sources are reckoning that the bull may be able to hold the bear back. |
|
|
Under the palm oil National Key Economic Areas (NKEAs) in 2011, the launches of the Oil Palm Replanting and New Planting Smallholders Schemes ware improved the smallholders agricultural practices in 2012.The oil extraction rate is set to improve to 21.05% in three-year from 2012 to low of 19.70% as 1.35 more. |
|
|
In driving speedier harvesting of oil palm fruits, the government has introduced the RM1,000 discount scheme to encourage the use of motorised sickle called Cantas and diamond blade sharpeners to enhance the palm oil industry. MPOB appointed 100 enforcement officers to visit mills to ensure the only good quality crops are processed. Since 2007, the palm oil industry has grown at an average of 14.5 per cent annualy until 2012. If the momentum is maitained for next 5 to 8 years, malaysia will achive its target of two million of hecters palm oil. |
|
|
OVERALL INDUSTRY OUTLOOK : Mature |
|
CREDIT
RISK EVALUATION & RECOMMENDATION
|
|
|
|
|
PROFIT
AND LOSS ACCOUNT
|
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH
MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS) |
|
SOP EDIBLE OILS SDN. BHD. |
|
Financial Year End |
2013-12-31 |
2012-12-31 |
|
Months |
12 |
12 |
|
Consolidated Account |
Company |
Company |
|
Audited Account |
YES |
YES |
|
Unqualified Auditor's Report (Clean Opinion) |
YES |
YES |
|
Financial Type |
FULL |
FULL |
|
Currency |
MYR |
MYR |
|
TURNOVER |
1,692,363,313 |
712,596,530 |
|
Other Income |
34,894 |
2,104,970 |
|
---------------- |
---------------- |
|
|
Total Turnover |
1,692,398,207 |
714,701,500 |
|
Costs of Goods Sold |
(1,643,786,682) |
(719,586,984) |
|
---------------- |
---------------- |
|
|
Gross Profit |
48,611,525 |
(4,885,484) |
|
---------------- |
---------------- |
|
|
PROFIT/(LOSS) FROM OPERATIONS |
13,207,741 |
(16,371,099) |
|
---------------- |
---------------- |
|
|
PROFIT/(LOSS) BEFORE TAXATION |
13,207,741 |
(16,371,099) |
|
Taxation |
(4,219,797) |
3,715,061 |
|
---------------- |
---------------- |
|
|
PROFIT/(LOSS) AFTER TAXATION |
8,987,944 |
(12,656,038) |
|
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD |
||
|
As previously reported |
(13,556,136) |
(900,098) |
|
---------------- |
---------------- |
|
|
As restated |
(13,556,136) |
(900,098) |
|
---------------- |
---------------- |
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
(4,568,192) |
(13,556,136) |
|
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
(4,568,192) |
(13,556,136) |
|
============= |
============= |
|
|
INTEREST EXPENSE (as per notes to P&L) |
||
|
Bankers' acceptance |
4,672,086 |
1,719,819 |
|
Lease interest |
13,767 |
- |
|
Loan from holding company |
1,848,561 |
2,176,620 |
|
Term loan / Borrowing |
4,206,601 |
3,022,652 |
|
Others |
(2,086,973) |
(3,480,581) |
|
---------------- |
---------------- |
|
|
8,654,042 |
3,438,510 |
|
|
============= |
============= |
|
BALANCE SHEET |
|
SOP EDIBLE OILS SDN. BHD. |
|
ASSETS EMPLOYED: |
||
|
FIXED ASSETS |
156,506,436 |
149,771,033 |
|
Deferred assets |
- |
3,715,061 |
|
---------------- |
---------------- |
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS |
- |
3,715,061 |
|
---------------- |
---------------- |
|
|
TOTAL LONG TERM ASSETS |
156,506,436 |
153,486,094 |
|
Stocks |
136,990,699 |
124,836,735 |
|
Trade debtors |
77,934,943 |
25,608,195 |
|
Other debtors, deposits & prepayments |
2,314,145 |
1,055,139 |
|
Short term deposits |
- |
87,478,100 |
|
Amount due from related companies |
91,865 |
87,733 |
|
Cash & bank balances |
80,596,313 |
13,181,938 |
|
Others |
665,972 |
672,608 |
|
---------------- |
---------------- |
|
|
TOTAL CURRENT ASSETS |
298,593,937 |
252,920,448 |
|
---------------- |
---------------- |
|
|
TOTAL ASSET |
455,100,373 |
406,406,542 |
|
============= |
============= |
|
|
CURRENT LIABILITIES |
||
|
Trade creditors |
44,656,922 |
22,757,985 |
|
Other creditors & accruals |
17,396,613 |
31,926,043 |
|
Hire purchase & lease creditors |
172,505 |
- |
|
Short term borrowings/Term loans |
15,800,000 |
8,400,000 |
|
Bill & acceptances payable |
150,390,000 |
150,054,000 |
|
Amounts owing to holding company |
109,199,658 |
83,688,432 |
|
Amounts owing to related companies |
50 |
50 |
|
Amounts owing to director |
168 |
168 |
|
Other liabilities |
1,636,060 |
- |
|
---------------- |
---------------- |
|
|
TOTAL CURRENT LIABILITIES |
339,251,976 |
296,826,678 |
|
---------------- |
---------------- |
|
|
NET CURRENT ASSETS/(LIABILITIES) |
(40,658,039) |
(43,906,230) |
|
---------------- |
---------------- |
|
|
TOTAL NET ASSETS |
115,848,397 |
109,579,864 |
|
============= |
============= |
|
|
SHARE CAPITAL |
||
|
Ordinary share capital |
40,000,000 |
40,000,000 |
|
---------------- |
---------------- |
|
|
TOTAL SHARE CAPITAL |
40,000,000 |
40,000,000 |
|
Retained profit/(loss) carried forward |
(4,568,192) |
(13,556,136) |
|
---------------- |
---------------- |
|
|
TOTAL RESERVES |
(4,568,192) |
(13,556,136) |
|
---------------- |
---------------- |
|
|
SHAREHOLDERS' FUNDS/EQUITY |
35,431,808 |
26,443,864 |
|
Long term loans |
79,640,000 |
83,136,000 |
|
Lease obligations |
271,853 |
- |
|
Deferred taxation |
504,736 |
- |
|
---------------- |
---------------- |
|
|
TOTAL LONG TERM LIABILITIES |
80,416,589 |
83,136,000 |
|
---------------- |
---------------- |
|
|
115,848,397 |
109,579,864 |
|
|
============= |
============= |
|
|
FINANCIAL RATIO |
|
SOP EDIBLE OILS SDN. BHD. |
|
TYPES OF FUNDS |
||
|
Cash |
80,596,313 |
100,660,038 |
|
Net Liquid Funds |
(69,793,687) |
(49,393,962) |
|
Net Liquid Assets |
(177,648,738) |
(168,742,965) |
|
Net Current Assets/(Liabilities) |
(40,658,039) |
(43,906,230) |
|
Net Tangible Assets |
115,848,397 |
109,579,864 |
|
Net Monetary Assets |
(258,065,327) |
(251,878,965) |
|
BALANCE SHEET ITEMS |
||
|
Total Borrowings |
246,274,358 |
241,590,000 |
|
Total Liabilities |
419,668,565 |
379,962,678 |
|
Total Assets |
455,100,373 |
406,406,542 |
|
Net Assets |
115,848,397 |
109,579,864 |
|
Net Assets Backing |
35,431,808 |
26,443,864 |
|
Shareholders' Funds |
35,431,808 |
26,443,864 |
|
Total Share Capital |
40,000,000 |
40,000,000 |
|
Total Reserves |
(4,568,192) |
(13,556,136) |
|
LIQUIDITY (Times) |
||
|
Cash Ratio |
0.24 |
0.34 |
|
Liquid Ratio |
0.48 |
0.43 |
|
Current Ratio |
0.88 |
0.85 |
|
WORKING CAPITAL CONTROL (Days) |
||
|
Stock Ratio |
30 |
64 |
|
Debtors Ratio |
17 |
13 |
|
Creditors Ratio |
10 |
12 |
|
SOLVENCY RATIOS (Times) |
||
|
Gearing Ratio |
6.95 |
9.14 |
|
Liabilities Ratio |
11.84 |
14.37 |
|
Times Interest Earned Ratio |
2.53 |
(3.76) |
|
Assets Backing Ratio |
2.90 |
2.74 |
|
PERFORMANCE RATIO (%) |
||
|
Operating Profit Margin |
0.78 |
(2.30) |
|
Net Profit Margin |
0.53 |
(1.78) |
|
Return On Net Assets |
18.87 |
(11.80) |
|
Return On Capital Employed |
18.84 |
(11.80) |
|
Return On Shareholders' Funds/Equity |
25.37 |
(47.86) |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
|
1 |
Rs.98.06 |
|
Euro |
1 |
Rs.77.19 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.