MIRA INFORM REPORT

 

 

Report No. :

315176

Report Date :

02.04.2015

 

IDENTIFICATION DETAILS

 

Name :

MAJUMAS OIL & FATS SDN. BHD.

 

 

Formerly Known As :

PRISMA MAJU ENTERPRISE SDN. BHD.

 

 

Registered Office :

29a-B, Jalan Besar, Selayang Baru, 68100 Batu Caves, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

22.09.2008

 

 

Com. Reg. No.:

833481-W

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the trading of palm oil.

 

 

No. of Employees :

15 [2015]

 

 

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 :

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 – 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.

:

833481-W

COMPANY NAME

:

MAJUMAS OIL & FATS SDN. BHD.

FORMER NAME

:

PRISMA MAJU ENTERPRISE SDN. BHD. (27/04/2011)

INCORPORATION DATE

:

22/09/2008

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

29A-B, JALAN BESAR, SELAYANG BARU, 68100 BATU CAVES, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT PT 67143, JALAN SUNGAI PINANG 5/2, TAMAN PERINDUSTRIAN PULAU INDAH, PELABUHAN KLANG, 42920 PULAU INDAH, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31013347

FAX.NO.

:

03-31013346

CONTACT PERSON

:

KUMARAN A/L SUNNOTHURY ( DIRECTOR )

INDUSTRY CODE

:

46202

PRINCIPAL ACTIVITY

:

TRADING OF PALM OIL

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARE 500,000.00 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

:

MYR 2,104,606 [2013]

NET WORTH

:

MYR 107,614 [2013]

STAFF STRENGTH

:

15 [2015]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

SLOW BUT CORRECT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

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) trading of palm oil.

 

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

22/08/2014

MYR 500,000.00

MYR 500,000.00

31/03/2013

MYR 100,000.00

MYR 100,000.00

22/09/2008

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

(%)

MR. KUMARAN A/L SUNNOTHURY +

27, JALAN SUNGAI KAPAR INDAH 10B, TAMAN SUNGAI KAPAR INDAH, 42200 KAPAR, SELANGOR, MALAYSIA.

810726-10-5499

250,000.00

50.00

MR. NADARAJAN A/L SUNNOTHURY +

27, JALAN SUNGAI KAPAR INDAH 10B, TAMAN SUNGAI KAPAR INDAH, 42200 KAPAR, SELANGOR, MALAYSIA.

750707-10-5643 A3068484

250,000.00

50.00

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

------

500,000.00

100.00

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

=====

 

+ Also Director

 





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. KUMARAN A/L SUNNOTHURY

Address

:

27, JALAN SUNGAI KAPAR INDAH 10B, TAMAN SUNGAI KAPAR INDAH, 42200 KAPAR, SELANGOR, MALAYSIA.

New IC No

:

810726-10-5499

Date of Birth

:

26/07/1981

Nationality

:

MALAYSIAN

Date of Appointment

:

22/09/2008

 

DIRECTOR 2

 

Name Of Subject

:

MR. NADARAJAN A/L SUNNOTHURY

Address

:

27, JALAN SUNGAI KAPAR INDAH 10B, TAMAN SUNGAI KAPAR INDAH, 42200 KAPAR, SELANGOR, MALAYSIA.

IC / PP No

:

A3068484

New IC No

:

750707-10-5643

Date of Birth

:

07/07/1975

Nationality

:

MALAYSIAN

Date of Appointment

:

22/09/2008

 

MANAGEMENT

 

 

1)

Name of Subject

:

KUMARAN A/L SUNNOTHURY

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

FKL & ASSOCIATES

Auditor' Address

:

27-4, JALAN PJU 1/42A, DATARAN PRIMA, LEVEL 4, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. ONG AH LENG

IC / PP No

:

4805847

New IC No

:

550620-08-6631

Address

:

15, JALAN SATU A, SELAYANG BARU, 68100 BATU CAVES, SELANGOR, 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. 

 

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 its suppliers. 

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

X

]

Good 31-60 Days

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA

EUROPE

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

PALM OIL INDUSTRIES

 

OPERATIONS

 

Goods Traded

:

PALM OIL

 

Total Number of Employees:

YEAR

2015

2013

GROUP

N/A

N/A

COMPANY

15

5

 

Branch

:

NO

 

Other Information:


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

The Subject is engage in trading of palm oil and related product.

The Subject is an established and licensed by MPOB (Malaysia Palm Oil Board)

The Subject are also exporting Palm Acid Oil (Palm Sludge Oil) around Malaysia. 

The Subject intend to provide the best product at best price. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-31013347

Match

:

N/A

Address Provided by Client

:

LOT PT 67143 JALAN SUNGAI PINANG 5/2 TAMAN PERINDUSTIAN PULAU INDAH 42920 PELABUHAN KLANG SELANGOR DARUL EHSAN MALAYSIA.

Current Address

:

LOT PT 67143, JALAN SUNGAI PINANG 5/2, TAMAN PERINDUSTRIAN PULAU INDAH, PELABUHAN KLANG, 42920 PULAU INDAH, SELANGOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


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


The address provided is incomplete.

 

FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

18.02%

]

Profit/(Loss) Before Tax

:

Decreased

[

44.34%

]

Return on Shareholder Funds

:

Acceptable

[

26.65%

]

Return on Net Assets

:

Unfavourable

[

1.69%

]

The higher turnover could be attributed to the favourable market condition and the Subject could be gaining the market share progressively.The Subject's profit fell sharply because of the high operating costs incurred. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Unfavourable

[

79 Days

]

Debtor Ratio

:

Unfavourable

[

102 Days

]

Creditors Ratio

:

Favourable

[

24 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Favourable

[

6.79 Times

]

Current Ratio

:

Favourable

[

9.13 Times

]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Acceptable

[

9.10 Times

]

Gearing Ratio

:

Favourable

[

0.29 Times

]

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. 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 :

Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. 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 had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. 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 : 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

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

46202 : Wholesale of palm 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 2008, the Subject is a Private Limited company, focusing on trading of palm oil. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. We noted that the issued and paid up capital of the Subject stands at MYR 500,000. Under the control of its directors, we considered that the Subject's business position in the market is much dependent on their abilities.

From the investigation revealed, 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. Being a small company, the Subject's business operation is supported by 15 employees. 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. 

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds 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. 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. 

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. 

We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days. 

The industry 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)

MAJUMAS OIL & FATS SDN. BHD.

 

Financial Year End

2013-09-30

2012-09-30

2011-09-30

2010-09-30

2009-09-30

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

2,104,606

1,783,311

-

-

-

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

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

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

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

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

Total Turnover

2,104,606

1,783,311

-

-

-

Costs of Goods Sold

(1,794,377)

(1,513,303)

-

-

-

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

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

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

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

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

Gross Profit

310,229

270,008

-

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

25,575

45,949

(44,695)

(1,870)

(3,695)

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

25,575

45,949

(44,695)

(1,870)

(3,695)

Taxation

3,100

(16,750)

-

-

-

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

28,675

29,199

(44,695)

(1,870)

(3,695)

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(21,061)

(50,260)

(5,565)

(3,695)

-

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

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

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

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

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

As restated

(21,061)

(50,260)

(5,565)

(3,695)

-

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

7,614

(21,061)

(50,260)

(5,565)

(3,695)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

7,614

(21,061)

(50,260)

(5,565)

(3,695)

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

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

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

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

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

Hire purchase

3,159

2,159

-

-

-

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

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

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

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

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

3,159

2,159

-

-

-

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

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

-

-

-

 

 

 

 

 

 

 

BALANCE SHEET

 

MAJUMAS OIL & FATS SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

126,521

139,169

74,367

-

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

126,521

139,169

74,367

-

-

Stocks

454,023

435,000

134,104

-

-

Trade debtors

590,817

427,625

-

-

-

Other debtors, deposits & prepayments

30,552

19,597

19,282

-

-

Cash & bank balances

694,185

727,886

408,707

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

1,769,577

1,610,108

562,093

96,605

15,482

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

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

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

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

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

TOTAL ASSET

1,896,098

1,749,277

636,460

96,605

15,482

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

119,432

196,608

67,208

-

-

Other creditors & accruals

15,200

126,671

16,883

-

-

Hire purchase & lease creditors

9,288

9,288

-

-

-

Amounts owing to director

47,258

48,668

50,000

-

-

Provision for taxation

2,660

4,300

-

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

193,838

385,535

134,091

2,170

19,175

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,575,739

1,224,573

428,002

94,435

(3,693)

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

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

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

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

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

TOTAL NET ASSETS

1,702,260

1,363,742

502,369

94,435

(3,693)

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

100,000

100,000

100,000

100,000

2

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

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

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

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

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

TOTAL SHARE CAPITAL

100,000

100,000

100,000

100,000

2

Retained profit/(loss) carried forward

7,614

(21,061)

(50,260)

(5,565)

(3,695)

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

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

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

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

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

TOTAL RESERVES

7,614

(21,061)

(50,260)

(5,565)

(3,695)

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

107,614

78,939

49,740

94,435

(3,693)

Hire purchase creditors

22,294

39,187

-

-

-

Deferred taxation

7,100

12,450

-

-

-

Others

1,565,252

1,233,166

452,629

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,594,646

1,284,803

452,629

-

-

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

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

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

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

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

1,702,260

1,363,742

502,369

94,435

(3,693)

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

MAJUMAS OIL & FATS SDN. BHD.

 

TYPES OF FUNDS

Cash

694,185

727,886

408,707

-

-

Net Liquid Funds

694,185

727,886

408,707

-

-

Net Liquid Assets

1,121,716

789,573

293,898

94,435

(3,693)

Net Current Assets/(Liabilities)

1,575,739

1,224,573

428,002

94,435

(3,693)

Net Tangible Assets

1,702,260

1,363,742

502,369

94,435

(3,693)

Net Monetary Assets

(472,930)

(495,230)

(158,731)

94,435

(3,693)

PROFIT & LOSS ITEMS

EARNINGS BEFORE INTEREST & TAX (EBIT)

0

0

0

-

-

EBITDA

0

0

0

-

-

BALANCE SHEET ITEMS

Total Borrowings

31,582

48,475

0

-

-

Total Liabilities

1,788,484

1,670,338

586,720

2,170

19,175

Total Assets

1,896,098

1,749,277

636,460

96,605

15,482

Net Assets

1,702,260

1,363,742

502,369

94,435

(3,693)

Net Assets Backing

107,614

78,939

49,740

94,435

(3,693)

Shareholders' Funds

107,614

78,939

49,740

94,435

(3,693)

Total Share Capital

100,000

100,000

100,000

100,000

2

Total Reserves

7,614

(21,061)

(50,260)

(5,565)

(3,695)

LIQUIDITY (Times)

Cash Ratio

3.58

1.89

3.05

-

-

Liquid Ratio

6.79

3.05

3.19

-

-

Current Ratio

9.13

4.18

4.19

44.52

0.81

WORKING CAPITAL CONTROL (Days)

Stock Ratio

79

89

0

-

-

Debtors Ratio

102

88

0

-

-

Creditors Ratio

24

47

0

-

-

SOLVENCY RATIOS (Times)

Gearing Ratio

0.29

0.61

0.00

-

-

Liabilities Ratio

16.62

21.16

11.80

0.02

(5.19)

Times Interest Earned Ratio

9.10

22.28

0.00

-

-

Assets Backing Ratio

17.02

13.64

5.02

0.94

(1,846.50)

PERFORMANCE RATIO (%)

Operating Profit Margin

1.22

2.58

0.00

-

-

Net Profit Margin

1.36

1.64

0.00

-

-

Return On Net Assets

1.69

3.53

(8.90)

(1.98)

100.05

Return On Capital Employed

1.68

3.50

(8.90)

(1.98)

100.05

Return On Shareholders' Funds/Equity

26.65

36.99

(89.86)

(1.98)

100.05

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

-

-

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.59

UK Pound

1

Rs.92.45

Euro

1

Rs.67.51

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               


 

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.