MIRA INFORM REPORT

 

 

Report No. :

314773

Report Date :

01.04.2015

 

IDENTIFICATION DETAILS

 

Name :

SIME DARBY PLANTATION (SARAWAK) SDN BHD

 

 

Registered Office :

Main Block, Plantation Tower, 2, Jalan Pju 1a/7, Ara Damansara, Level 10, 47301 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

06.03.1989

 

 

Com. Reg. No.:

179365-M

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Subject is engaged in the manufacturing of palm oil and palm kernel.

 

 

No. of Employee :

Not available

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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.

:

179365-M

COMPANY NAME

:

SIME DARBY PLANTATION (SARAWAK) SDN BHD

FORMER NAME

:

GOLDEN HOPE PLANTATIONS (SARAWAK) SDN BHD (01/07/2008)
WOODLAKE SDN BHD

INCORPORATION DATE

:

06/03/1989

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

MAIN BLOCK, PLANTATION TOWER, 2, JALAN PJU 1A/7, ARA DAMANSARA, LEVEL 10, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

KM 52, JALAN BINTULU MIRI, TAMAN RAJAWALI COMPLEX, P.O BOX 673, 97000 BINTULU, SARAWAK, MALAYSIA.

TEL.NO.

:

086-327687/326800

FAX.NO.

:

N/A

EMAIL

:

PLANTATIONCCD@SIMEDARBY.COM

CONTACT PERSON

:

RENAKA A/P RAMACHANDRAN ( DIRECTOR )

INDUSTRY CODE

:

10403

PRINCIPAL ACTIVITY

:

MANUFACTURING OF PALM OIL AND PALM KERNEL

AUTHORISED CAPITAL

:

MYR 100,000,000.00 DIVIDED INTO
ORDINARY SHARE 100,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 25,000,000.00 DIVIDED INTO
ORDINARY SHARES 25,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 346,317,591 [2014]

NET WORTH

:

MYR 537,997,364 [2014]

STAFF STRENGTH

:

N/A

BANKER (S)

:

HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

NO COMPLAINTS

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

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) manufacturing of palm oil and palm kernel.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 100,000,000.00

MYR 25,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

SIME DARBY PLANTATION SDN. BHD.

MAIN BLOCK PLANTATION TOWER, 2 JALAN PJU 1A/7, ARA DAMANSARA, LEVEL 10, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

647766V

25,000,000.00

100.00

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

------

25,000,000.00

100.00

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

=====

+ Also Director

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. MOHAMAD HELMY BIN OTHMAN BASHA

Address

:

20, JALAN BIRAI U8/70, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

New IC No

:

670113-10-6235

Date of Birth

:

13/01/1967

Nationality

:

MALAYSIAN

Date of Appointment

:

27/11/2007

 

DIRECTOR 2

 

Name Of Subject

:

MS. RENAKA A/P RAMACHANDRAN

Address

:

19, JALAN ENDAH 6/7, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A0821952

New IC No

:

671005-10-6080

Date of Birth

:

05/10/1967

Nationality

:

MALAYSIAN

Date of Appointment

:

24/08/2011

 

DIRECTOR 3

 

Name Of Subject

:

MR. FRANKI A/L ANTHONY DASS

Address

:

3, JALAN 3/66, SECTION 3, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

New IC No

:

561002-07-5533

Date of Birth

:

02/10/1956

Nationality

:

MALAYSIAN

Date of Appointment

:

24/08/2011




MANAGEMENT

 

 

1)

Name of Subject

:

RENAKA A/P RAMACHANDRAN

Position

:

DIRECTOR

 

2)

Name of Subject

:

AZLIN

Position

:

ADMIN MANAGER

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR CENTRAL, P.O.BOX 10192, LEVEL 15, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. AZRIN NASHIHA BINTI ABDUL AZIZ

IC / PP No

:

A1987809

New IC No

:

720603-08-5564

Address

:

15, JALAN DM 3B, DESA MOCCIS, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

13/01/1994

N/A

ARABMALAYSIAN MERCHANT BANK BERHAD

MYR 6,700,000.00

Satisfied

2

19/01/1994

N/A

ARABMALAYSIAN MERCHANT BANK BHD

MYR 3,300,000.00

Satisfied

 

 

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

:

N/A

Overseas

:

N/A


The Subject refused to disclose it's suppliers.

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

N/A

Payment Mode

:

N/A

Type of Customer

:

PALM OIL INDUSTRIES

 

OPERATIONS

 

Products manufactured

:

PALM OIL AND PALM KERNEL

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of palm oil and palm kernel.

The Subject is engage in manufacturing of palm oil and palm kernel.

The Subject's group upstream produces about 2.3 million tonnes or 4 per cent of the world’s crude palm oil (CPO) output annually, of which about 93% or 2.14 million tonnes are Certified Sustainable Palm Oil (CSPO).

Its annual output of palm kernel is about 0.52 million tonnes, out of which 0.49 million tonnes are Certified Sustainable Palm Kernel (CSPK).

However, The Subject's group downstream manufacturing and distribution of oils and fats products, oleochemicals and palm oil-based biodiesel, as well as fast moving consumer goods.

The company’s downstream operations, where refining of Crude Palm Oil (CPO) is undertaken for edible oils and fats products, oleochemicals and biodiesel, as well as its marketing activities are present in 16 countries.

The Subject's group operation include the development of oil palm plantations, cultivation of oil palm, management of estates, milling of fresh fruit bunches (FFB) for CPO and CPKO.

The Subject's group business philosophy in the manufacturing of a comprehensive range of palm oil-based products is to maintain the highest quality at all times.

This has ensured the Company an edge in its selling proposition and sets the Subject apart from the competition.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

086-327687/326800

Match

:

N/A

Address Provided by Client

:

LEVEL 7 MAIN BLOCK PLANTATION TOWER, NO. 2, JALAN PJU 1A/7, ARA DAMANSARA 47301 PETALING JAYA SELANGOR DARULK EHSAN MALAYSIA

Current Address

:

KM 52, JALAN BINTULU MIRI, TAMAN RAJAWALI COMPLEX, P.O BOX 673, 97000 BINTULU, SARAWAK, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


On 26th March 2015, we contacted one of the staff from the Subject and he provided some information.

The address provided belongs to the Subject's Headquarters.

The Subject refused to disclose its number of employees and fax number.


FINANCIAL ANALYSIS

 

Profitability

Return on Shareholder Funds

:

Acceptable

[

10.58%

]

Return on Net Assets

:

Acceptable

[

12.86%

]

The Subject's management had generated acceptable return for its shareholders using its assets.

Liquidity

Current Ratio

:

Favourable

[

10.31 Times

]

The Subject was in good liquidity position with its current  liabilities  well covered by its current assets. With its net current assets, the Subject should be able to repay its short term obligations.

Solvency

Liability Ratio

:

Favourable

[

0.12 Times

]

A low liabilities ratio has minimised the Subject's financial risk.

Overall Assessment :

The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject has a low liabilities ratio. It's liabilities were low and was not vulnerable to the financial risk.

Overall financial condition of the Subject : STRONG

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.3

4.0

Unemployment Rate

3.3

3.2

3.0

3.0

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

-

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

-

-

Business Loans Disbursed( % )

15.3

32.2

-

-

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

-

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

-

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

-

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

-

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

-

-

Registration of New Business ( No. )

284,598

324,761

329,895

-

-

Registration of New Business ( % )

5.0

14.0

2.0

-

-

Business Dissolved ( No. )

20,121

20,380

18,161

-

-

Business Dissolved ( % )

1.9

1.3

(10.9)

-

-

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

-

-

Credit Cards Spending ( % )

15.6

12.6

-

-

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-

 

INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.6

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

-

-

Plastic Products

3.8

-

-

-

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

* Estimate / Preliminary

** Forecast



INDUSTRY ANALYSIS

 

MSIC CODE

10403 : Manufacture of palm kernel oil

INDUSTRY :

PALM OIL

According to the Malaysian Palm Oil Council (MPOC), Malaysia currently accounts for 39% of world palm oil production and 44% of world exports in year 2014. Malaysia is also one of the biggest producers and exporters of oil palm and palm oil products. In the last 5 years until year 2014, Malaysia earned between RM50 billion and RM70 billion a year from palm oil exports.

Besides, the ongoing implementation of Entry Point Projects (EPPs) under the National Key Economic Area (NKEA) on palm oil to enhance productivity of upstream and downstream activities will further boost the palm oil sector. Thus, palm oil sector is expected to grow 6.7% in 2014 (2013: 2.6%). Moreover, the total oil palm planted areas increased 2.8% to 5.3 million hectares as at end-June 2014 (end-June 2013: 5.2 million hectares) following the opening of 30,544 hectares of cultivated areas mainly in Sabah and Sarawak. Other than that, the production of palm oil is expected to growth by 1.6% (19.52 million tonnes) in year 2014, compared to 19.22 million tonnes in year 2013.

According to Kenanga Research, the estimated average crude palm oil (CPO) price for 2014 and 2015 is between RM2,100 and RM2,500 per tonne due to lower inventory estimate by end-2015. The estimated prices also lifted by factors such as biofuel demand and petroleum price level. But, the average price of crude palm oil (CPO) strengthened to RM2,542 per tonne during the first eight months of 2014 (January - August 2013: Rm2,309 per tonne). However, with production rising in the second quarter coupled with high inventory level (end-August 2014: 2.1 million tonnes), the price of CPO moderated to RM2,162 per tonne as at end-August 2014, and hitting a five-year low of RM1,914 per tonne in Sept 2014 as stockpiles surged to a more than 1 year high above 2 million tonnes. The moderation in CPO prices was also due to a surge in global supplies of edible oil, particularly the bumper harvest of soybean in the US.

Over the total exports of major products in year 2013, palm oil accounts 6.4% of share in the total exports. During the first seven months of 2014, export receipts of palm oil rebounded by 4.9% to RM25.8 billion (January - July 2013: -21.9%, RM 24.6 billion) due to higher export prices averaging RM 2,703 per tonne (January - July 2013: Rm 2,456 per tonne). As a measure to reduce the high inventory due to strong output, the Government has exempted export tax on CPO until December 2014. The Government's move to extend the export duty exemption for crude palm oil (CPO) has received positive reaction from industry players. The chairman of Malaysian Palm Oil Board (MPOB) said the move provided a stable effect on the CPO market prices.

In Budget 2015, there is an allocation of RM41 million for smallholders to plant and replant oil palm. The incentives for commodities announced in Budget 2015 will help alleviate the problems faced by the industry, especially the poor prices for rubber and palm oil.

According to the Minister of Plantation Industries and Commodities, the Malaysian government will increase the amount of palm oil based bio-diesel in the national diesel supply mix from November 2014, in a move that will also help to increase consumption of crude palm oil (CPO) and reduce stockpile levels of the commodity. The implementation of the B7 blend will also increase the use palm oil which prices have softened due to oversupply in the market. According to the Malaysian Palm Oil Council (MPOC), CPO prices are expected to improve to between RM2,100 and RM2,500 in year 2015, lifted by factors such as biofuel demand from the B7 programme. CIMB Research estimates that the rollout could raise the country's palm oil demand by 263,000-390,000 tonnes per annum, or 1-2% of the total palm oil production in 2013.

OVERALL INDUSTRY OUTLOOK : Mature



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1989, the Subject is a Private Limited company, focusing on manufacturing of palm oil and palm kernel. 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. With an issued and paid up capital of MYR 25,000,000 and strong backing from its Shareholder, the Subject enjoys timely financial assistance should the needs arise. These favourable conditions has minimised its risk in the industry compared to other players.

Over the years, the Subject should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. 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 its turnover of MYR 346,317,591 and its pre tax profit of MYR 72,667,290. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. A low liabilities ratio has minimised the Subject's financial risk. Given a positive net worth standing at MYR 537,997,364, 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 industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the Subject's growth prospect is very much depends on its capacity in sustaining its performance in the market.

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)

SIME DARBY PLANTATION (SARAWAK) SDN BHD

 

Financial Year End

2014-06-30

Months

12

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

SUMMARY

Currency

MYR

TURNOVER

346,317,591

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

Total Turnover

346,317,591

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

PROFIT/(LOSS) FROM OPERATIONS

72,667,290

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

PROFIT/(LOSS) BEFORE TAXATION

72,667,290

Taxation

(15,762,265)

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

PROFIT/(LOSS) AFTER TAXATION

56,905,025

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

512,368,022

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

As restated

512,368,022

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

PROFIT AVAILABLE FOR APPROPRIATIONS

569,273,047

TRANSFER TO RESERVES - General

(525,683)

DIVIDENDS - Ordinary (paid & proposed)

(55,750,000)

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

513,523,047

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

 

 

 

 

BALANCE SHEET

 

SIME DARBY PLANTATION (SARAWAK) SDN BHD

 

ASSETS EMPLOYED:

FIXED ASSETS

225,103,770

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

TOTAL LONG TERM ASSETS

225,103,770

TOTAL CURRENT ASSETS

376,414,642

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

TOTAL ASSET

601,518,412

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

TOTAL CURRENT LIABILITIES

36,498,472

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

NET CURRENT ASSETS/(LIABILITIES)

339,916,170

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

TOTAL NET ASSETS

565,019,940

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

SHARE CAPITAL

Ordinary share capital

25,000,000

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

TOTAL SHARE CAPITAL

25,000,000

Retained profit/(loss) carried forward

513,523,047

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

TOTAL RESERVES

512,997,364

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

SHAREHOLDERS' FUNDS/EQUITY

537,997,364

TOTAL LONG TERM LIABILITIES

27,022,576

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

565,019,940

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

 

 

 

FINANCIAL RATIO

 

 

SIME DARBY PLANTATION (SARAWAK) SDN BHD

 

TYPES OF FUNDS

Net Liquid Assets

339,916,170

Net Current Assets/(Liabilities)

339,916,170

Net Tangible Assets

565,019,940

Net Monetary Assets

312,893,594

BALANCE SHEET ITEMS

Total Liabilities

63,521,048

Total Assets

601,518,412

Net Assets

565,019,940

Net Assets Backing

537,997,364

Shareholders' Funds

537,997,364

Total Share Capital

25,000,000

Total Reserves

512,997,364

LIQUIDITY (Times)

Current Ratio

10.31

SOLVENCY RATIOS (Times)

Liabilities Ratio

0.12

Assets Backing Ratio

22.60

PERFORMANCE RATIO (%)

Operating Profit Margin

20.98

Net Profit Margin

16.43

Return On Net Assets

12.86

Return On Capital Employed

12.86

Return On Shareholders' Funds/Equity

10.58

Dividend Pay Out Ratio (Times)

0.98

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.59

UK Pound

1

Rs.92.46

Euro

1

Rs.67.51

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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.