MIRA INFORM REPORT

 

 

Report Date :

10.11.2014

 

IDENTIFICATION DETAILS

 

Name :

OREN HYDROCARBONS FAR EAST SDN. BHD.

 

 

Registered Office :

43-M, Jalan Thambypillai, Off Jalan Tun Sambanthan, 50470 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

30.08.2012

 

 

Com. Reg. No.:

1015441-U

 

 

Legal Form :

Private Limited (Limited by Share)

 

 

Line of Business :

Subject is engaged is the Oil and Gas Hydrocarbons Industries

 

 

No. of Employees :

50 [2014]

 

 

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 :

Unknown

 

 

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


EXECUTIVE SUMMARY

 

 

 

REGISTRATION NO.

:

1015441-U

COMPANY NAME

:

OREN HYDROCARBONS FAR EAST SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

30/08/2012

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

43-M, JALAN THAMBYPILLAI, OFF JALAN TUN SAMBANTHAN, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

UNIT A-16-1,TOWER A, MENARA UOA BANGSAR, JALAN BANGSAR UTAMA, LEVEL 16, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-22020260

FAX.NO.

:

N/A

CONTACT PERSON

:

RIZWAN AHMAD ( DIRECTOR )

INDUSTRY CODE

:

96099

PRINCIPAL ACTIVITY

:

OIL AND GAS HYDROCARBONS INDUSTRIES

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.

SALES

:

N/A

NET WORTH

:

MYR 350,051 [2013]

STAFF STRENGTH

:

50 [2014]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

POOR

INDUSTRY OUTLOOK

:

MARGINAL 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) oil and gas hydrocarbons industries.

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

 

The immediate holding company of the Subject is OREN HYOCARBONS PVT. LTD., a company incorporated in INDIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

20/09/2013

MYR 1,000,000.00

MYR 500,000.00

15/02/2013

MYR 1,000,000.00

MYR 350,000.00

03/09/2012

MYR 1,000,000.00

MYR 2.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

OREN HYOCARBONS PVT. LTD.

28/2B, SARAVANA STREET, T.NAGAR, CHENNAI, TAMIL NADU - 6000017, INDIA.

U73100TN1990PTC01941

500,000.00

100.00

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

------

500,000.00

100.00

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

RIZWAN AHMAD

Address

:

28/2B, SARAVANA STREET T NAGAR, CHENNAI, TAMIL NADU, 60001, INDIA.

IC / PP No

:

Z2407336

Nationality

:

INDIAN

Date of Appointment

:

11/10/2012

 

DIRECTOR 2

 

Name Of Subject

:

MAHABOOB SUBHANANI MOHAMED ALI

Address

:

47/39, BURMA COLONY, PAVALI ROAD, VIRUDHUNAGAR - 626001, TAMIL NADU, INDIA.

IC / PP No

:

Z2134699

Nationality

:

INDIAN

Date of Appointment

:

11/10/2012

 

DIRECTOR 3

 

Name Of Subject

:

RAMESH KRISHNAMOORTHY

Address

:

F1, ADISH ANJANEYA FLATS, PLOT 2, TANSI NAGAR EXTN, OFF 17TH STREET, CHENNAI, 60064, INDIA.

IC / PP No

:

Z2393814

Nationality

:

INDIAN

Date of Appointment

:

11/10/2013

 

DIRECTOR 4

 

Name Of Subject

:

MS. ZURALIZA BINTI ZULKIFLI

Address

:

4, JALAN 12, TAMAN SENTOSA, 43100 HULU LANGAT, SELANGOR, MALAYSIA.

New IC No

:

830327-13-5154

Date of Birth

:

27/03/1983

Nationality

:

MALAYSIAN

Date of Appointment

:

30/08/2012

 

DIRECTOR 5

 

Name Of Subject

:

MR. S. NADARAJAH

Address

:

378, JALAN 5/54, PETALING GARDEN, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

5648064

New IC No

:

590218-10-6469

Date of Birth

:

18/02/1959

Nationality

:

MALAYSIAN

Date of Appointment

:

30/08/2012

 

DIRECTOR 6

 

Name Of Subject

:

MR. JOSEPH EDWARD

Address

:

21, JALAN BU 11/15, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

7139503

New IC No

:

630731-10-7159

Date of Birth

:

31/07/1963

Nationality

:

MALAYSIAN

Date of Appointment

:

16/05/2013

 

DIRECTOR 7

 

Name Of Subject

:

SOUNDARARAJAN RAMASWAMY

Address

:

G-B SAFIRE SBI OFFICES COLONY, CANTONMENT TRICHY - 620001, TAMIL NADU INDIA, INDIA.

IC / PP No

:

Z2717806

Nationality

:

INDIAN

Date of Appointment

:

05/02/2013


MANAGEMENT

 

 

 

1)

Name of Subject

:

RIZWAN AHMAD

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

JAYASANGAR & CO

Auditor' Address

:

3-5, 30, JALAN THAMBAPILLAI, BRICKFIELDS, 3RD FLOOR, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. S. NADARAJAH

IC / PP No

:

5648064

New IC No

:

590218-10-6469

Address

:

378, JALAN 5/54, PETALING GARDEN, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

BANKING


No Banker found in our databank.

 

ENCUMBRANCE (S)


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

 

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

 

CLIENTELE

Local

:

YES

Overseas

:

YES

 

OPERATIONS

 

Products manufactured

:

OIL AND GAS HYDROCARBONS

 

Total Number of Employees:

YEAR

2014

GROUP

N/A

COMPANY

50

 

Branch

:

NO

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) oil and gas hydrocarbons industries.

 

The Subject refused to disclosed its operation.

 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that:

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-22020260

Match

:

N/A

Address Provided by Client

:

NO 43-M, JALAN THAMBYPILLAI, OFF JALAN TUN SAMBANTHAN, 50470, KUALA LUMPUR,WILAYAH PERSEKUTUAN.

Current Address

:

UNIT A-16-1,TOWER A, MENARA UOA BANGSAR, JALAN BANGSAR UTAMA, LEVEL 16, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


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

 

The address provided belongs to registered address.

 

The Subject refused to disclosed its bankers.

 

 

FINANCIAL ANALYSIS

 

The Subject's turnover was nil during the year indicate that it was inactive. As a result, we are unable to comment on its financial performance.

Overall financial condition of the Subject : N/A

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2010

2011

2012

2013

2014**

Population ( Million)

28.35

28.70

29.30

29.80

30.30

Gross Domestic Products ( % )

7.2

5.1

5.6

5.3

6.0

Domestic Demand ( % )

6.3

8.2

9.4

5.6

6.4

Private Expenditure ( % )

8.1

8.2

8.0

7.4

7.9

Consumption ( % )

6.7

7.1

1.0

5.7

6.5

Investment ( % )

17.7

12.2

11.7

13.3

12.0

Public Expenditure ( % )

3.8

8.4

13.3

1.2

2.3

Consumption ( % )

0.2

16.1

11.3

(1.2)

2.1

Investment ( % )

2.8

(0.3)

15.9

4.2

2.6

Balance of Trade ( MYR Million )

118,356

116,058

106,300

110,700

52,314

Government Finance ( MYR Million )

(40,482)

(45,511)

(42,297)

(39,993)

(37,291)

Government Finance to GDP / Fiscal Deficit ( % )

(5.6)

(5.4)

(4.5)

(4.0)

(3.5)

Inflation ( % Change in Composite CPI)

5.1

3.1

1.6

2.5

3.3

Unemployment Rate

3.9

3.3

3.2

3.0

3.0

Net International Reserves ( MYR Billion )

329

415

427

-

417

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.20

3.50

2.20

-

-

Average 3 Months of Non-performing Loans ( % )

15.30

14.80

14.70

-

-

Average Base Lending Rate ( % )

6.30

6.60

6.53

6.53

-

Business Loans Disbursed( % )

14.7

15.3

32.2

-

-

Foreign Investment ( MYR Million )

22,517.9

23,546.1

26,230.4

38,238.0

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

44,148

45,455

45,441

46,321

-

Registration of New Companies ( % )

6.2

3.0

(0.0)

1.9

-

Liquidation of Companies ( No. )

25,585

132,476

-

-

-

Liquidation of Companies ( % )

(34.5)

417.8

-

-

-

Registration of New Business ( No. )

271,414

284,598

324,761

329,895

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,738

20,121

-

-

-

Business Dissolved ( % )

2.0

1.9

-

-

-

Sales of New Passenger Cars (' 000 Unit )

543.6

535.1

552.2

-

-

Cellular Phone Subscribers ( Million )

32.8

35.3

38.5

43.0

-

Tourist Arrival ( Million Persons )

24.6

24.7

25.0

25.7

-

Hotel Occupancy Rate ( % )

63.0

60.6

62.4

62.6

-

Credit Cards Spending ( % )

14.1

15.6

12.6

-

-

Bad Cheque Offenders (No.)

33,568

32,627

26,982

28,876

-

Individual Bankruptcy ( No.)

18,119

19,167

19,575

21,984

-

Individual Bankruptcy ( % )

11.7

5.8

2.1

12.3

-

 

INDUSTRIES ( % of Growth ):

2010

2011

2012

2013

2014**

Agriculture

2.4

5.8

1.0

2.1

3.8

Palm Oil

(3.4)

10.8

(0.3)

2.6

-

Rubber

9.9

6.1

(7.9)

(10.1)

-

Forestry & Logging

(3.3)

(7.6)

(4.5)

(7.8)

-

Fishing

5.6

2.1

4.3

1.6

-

Other Agriculture

7.9

7.1

6.4

8.2

-

Industry Non-Performing Loans ( MYR Million )

508.4

634.1

-

-

-

% of Industry Non-Performing Loans

2.1

3.2

-

-

-

Mining

(0.3)

(5.4)

1.4

0.9

(0.8)

Oil & Gas

0.5

(1.7)

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

49.7

46.5

-

-

-

% of Industry Non-performing Loans

0.1

0.1

-

-

-

Manufacturing #

11.9

4.7

4.8

3.4

6.6

Exported-oriented Industries

12.1

4.1

6.5

3.3

5.6

Electrical & Electronics

28.4

(4.0)

12.7

6.9

13.3

Rubber Products

25.3

20.7

3.0

11.7

(0.3)

Wood Products

20.1

(5.1)

8.7

(2.7)

5.1

Textiles & Apparel

(0.4)

13.2

(7.1)

(2.6)

11.5

Domestic-oriented Industries

16.3

10.7

1.7

6.8

9.4

Food, Beverages & Tobacco

3.0

4.8

2.7

3.6

6.1

Chemical & Chemical Products

16.2

10.0

10.8

5.6

-

Plastic Products

2.4

3.8

-

-

-

Iron & Steel

29.3

2.2

(6.6)

5.0

0.1

Fabricated Metal Products

14.9

21.8

13.8

9.9

2.9

Non-metallic Mineral

20.2

12.1

2.9

(2.0)

5.4

Transport Equipment

36.5

12.0

3.4

13.8

22.9

Paper & Paper Products

18.7

9.5

3.1

1.8

4.7

Crude Oil Refineries

(11.4)

9.3

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,217.5

6,537.2

-

-

-

% of Industry Non-Performing Loans

23.8

25.7

-

-

-

Construction

11.4

4.7

18.6

10.9

10.0

Industry Non-Performing Loans ( MYR Million )

4,038.5

3,856.9

-

-

-

% of Industry Non-Performing Loans

10.7

10.2

-

-

-

Services

7.4

7.0

6.4

5.9

6.2

Electric, Gas & Water

7.8

3.5

4.4

4.2

3.6

Transport, Storage & Communication

7.7

6.5

7.1

7.3

7.5

Wholesale, Retail, Hotel & Restaurant

4.7

5.2

4.7

5.9

6.9

Finance, Insurance & Real Estate

6.10

6.90

9.70

3.70

4.65

Government Services

5.9

12.4

9.4

8.3

6.1

Other Services

4.4

5.1

3.9

5.1

4.8

Industry Non-Performing Loans ( MYR Million )

7,384.6

6,825.2

-

-

-

% of Industry Non-Performing Loans

25.7

23.4

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

 

96099 : Other service activities n.e.c.

INDUSTRY :

ECONOMY

The country's gross domestic product (GDP) expanded by 6.4% in the 4th quarter ended Dec 31 2012 on a year-on-year basis driven by sustained domestic demand and high investment growth. For the full year 2012, the GDP growth hit 5.6%, well above the government’s revised forecast of 4.5%-5.0% made in year 2011. Despite the weak and uncertain global economic conditions, there is remarkable optimism that Malaysia's economy could still continue to grow at a relatively healthy pace. The government has, in fact, targeted a gross domestic product (GDP) growth rate of between 4.5% and 5.5% for 2013. This is quite an encouraging growth rate, and an achievable one at that, according to most economists.

Additionally, tepid economic growth in advanced economies and the slowdown of emerging economies especially in China and India, point to weakening global economic prospects. The deterioration in the external environment and correction in commodity prices are expected to weigh on Malaysia’s export performance during the second half of 2012. Nevertheless, the vibrant domestic demand is expected to be sustained during the second half of 2012, supported by both public and private sectors amid conducive financial market conditions, stable prices and a favourable labour market. The external sector provided little support with exports showing a slower pace of decrease in 4th quarter of year 2012 to -1.5%, while imports also decreased by -0.9% resulting in an actual increase in the level of net exports compared to 3rd quarter of year 2012, although growth remained negative relative to 4th quarter of year 2012.

Domestic demand will be the main driver of the Malaysian economy supported by private and public sector expenditure. Growth in private consumption is expected to be buoyed by stable employment and income coupled with lower inflation. The salary revision and bonus for civil servants, cash assistance under Bantuan Rakyat 1Malaysia (BR1M), reward to the Federal Land Development Authority (FELDA) settlers and other cash payments to assist various groups supported private consumption. Private investment is envisaged to drive economic growth over the medium term, underpinned by the ongoing implementation of the Economic Transformation Programme (ETP) and vibrant construction activity. Growth in private investment will be broad-based in line with positive investors’ confidence and strong domestic demand. Public investment will be largely led by the Non-Financial Public Enterprises’ (NFPEs) capital spending on oil and gas (O&G), telecommunications and transportrelated industries. The Investment expenditure was about evenly divided between structures and machinery & equipment, but the former category showed continued strong growth at 25.0% over the 4th quarter ended Dec 31 2011, while growth in the latter category slowed to 7.6% from 22.3% in 3rd quarter ended Sept 30 2012.

Growth was broad based with all major sectors registering increases. The only subsectors that posted declines were the textile manufacturing and forestry and logging activities. The construction sector posted the strongest growth, hitting 15% on the year 2012, not surprising given the spate of major projects and related private sector property investment over the year. Besides, the agriculture sectors had a slightly grew at 0.6% while the manufacturing and mining industries continued growth at 4.2% and 1.5% respectively. The service sector had drop to 5.5%. However, according to the Minister of Finance, the agriculture and construction sectors are projected to expand 2.4% and 11.2% respectively while the manufacturing and the mining industries are forecast to grow 4.9% and 2.7& respectively. Meanwhile, the service sector is expected to grow 5.6%.

With domestic demand remaining robust and signs of improvement in the external sector, there are far less grounds for an interest rate cut, unlike in the rest of the region where growth has, with the exception of Thailand, been less than impressive. High capacity utilisation, strong credit growth and the need to rein in household debt are all mitigating factors against an easing of policy. Meanwhile, in maintaining the balance between economic growth and inflationary pressures in Malaysia, it is expected that interest rates in the country will remain stable through 2013. The benchmark overnight policy rate (OPR) currently stands at 3%, which has been supportive of the country's economic growth amid a low inflation environment with consumer price index (CPI) growing at less than 2% in 2012. But with price pressures expected to pick up in year 2014, with CPI expected to increase around 2% to 3%, some economists expect the OPR to likely be raised by 25 basis points to 3.25% in the second half of year 2014.

In conclusion, the outlook for the Malaysian economy is going to be challenging, with the ongoing global economic slowdown in view of the debt crisis in Europe and the weakening of the US economy. Besdies, the loss of growth momentum in Malaysia will continue and become serious enough to sidetrack the country from its long-term development goals. Thus, nominal Gross National Income (GNI) per capita is expected to increase 6.4% to RM32,947 in year 2013. In terms of Public-Private Partnership (PPP) Facilitation Fund, per capita income is expected to grow 4.4% to reach USD16,368.

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2012, the Subject is a Private Limited company, focusing on oil and gas hydrocarbons industries. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. The Subject is considered as a medium size company with issued and paid up capital standing at MYR 500,000. With a strong backing from its holding company, the Subject enjoys timely financial assistance should the needs arise.

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 operating on a medium scale and it has approximately 50 employees in its business 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 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.

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth. 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 industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market.

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


 


PROFIT AND LOSS ACCOUNT

 

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

OREN HYDROCARBONS FAR EAST SDN. BHD.

 

Financial Year End

2013-03-31

Months

7

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

FULL

Currency

MYR

Other Income

723

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

Total Turnover

723

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

PROFIT/(LOSS) FROM OPERATIONS

124

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

PROFIT/(LOSS) BEFORE TAXATION

124

Taxation

(73)

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

PROFIT/(LOSS) AFTER TAXATION

51

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

PROFIT AVAILABLE FOR APPROPRIATIONS

51

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

51

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

 

 

 

BALANCE SHEET

 

 

OREN HYDROCARBONS FAR EAST SDN. BHD.

 

Other debtors, deposits & prepayments

194,444

Cash & bank balances

185,913

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

TOTAL CURRENT ASSETS

380,357

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

TOTAL ASSET

380,357

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

Other creditors & accruals

30,233

Provision for taxation

73

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

TOTAL CURRENT LIABILITIES

30,306

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

NET CURRENT ASSETS/(LIABILITIES)

350,051

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

TOTAL NET ASSETS

350,051

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

SHARE CAPITAL

Ordinary share capital

350,000

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

TOTAL SHARE CAPITAL

350,000

Retained profit/(loss) carried forward

51

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

TOTAL RESERVES

51

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

SHAREHOLDERS' FUNDS/EQUITY

350,051

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

350,051

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

 

 

 

FINANCIAL RATIO

 

 

OREN HYDROCARBONS FAR EAST SDN. BHD.

 

TYPES OF FUNDS

Cash

185,913

Net Liquid Funds

185,913

Net Liquid Assets

350,051

Net Current Assets/(Liabilities)

350,051

Net Tangible Assets

350,051

Net Monetary Assets

350,051

BALANCE SHEET ITEMS

Total Borrowings

0

Total Liabilities

30,306

Total Assets

380,357

Net Assets

350,051

Net Assets Backing

350,051

Shareholders' Funds

350,051

Total Share Capital

350,000

Total Reserves

51

LIQUIDITY (Times)

Cash Ratio

6.13

Liquid Ratio

12.55

Current Ratio

12.55

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

Debtors Ratio

0

Creditors Ratio

0

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

Liabilities Ratio

0.09

Times Interest Earned Ratio

0.00

Assets Backing Ratio

1.00

PERFORMANCE RATIO (%)

Operating Profit Margin

0.00

Net Profit Margin

0.00

Return On Net Assets

0.04

Return On Capital Employed

0.04

Return On Shareholders' Funds/Equity

0.01

Dividend Pay Out Ratio (Times)

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.52

UK Pound

1

Rs.97.39

Euro

1

Rs.76.16

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

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

 

Unlimited

 

71-85

Aa

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

 

Large

 

56-70

A

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

 

Fairly Large

 

41-55

Ba

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

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

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

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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

 

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

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

 

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

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