MIRA INFORM REPORT
|
Report No. : |
332245 |
|
Report Date : |
16.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
PALM-OLEO SDN. BHD. |
|
|
|
|
Registered Office : |
Wisma Taiko, 1 Jalan S.P.Seenivasagam, 30000 Ipoh, Perak |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
30.09.2013 |
|
|
|
|
Date of Incorporation : |
23.08.1989 |
|
|
|
|
Com. Reg. No.: |
185886-V |
|
|
|
|
Legal Form : |
Private Limited (Limited By Share) |
|
|
|
|
Line of Business : |
Manufacturing of Fatty Acid Products, Glycerine and Palm Oil
Derivatives. |
|
|
|
|
No. of Employee : |
350 [2015] |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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
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 fatty acid
products, glycerine and palm oil derivatives. The Subject is
not listed on Bursa Malaysia (Malaysia Stock Exchange).
The immediate
holding company of the Subject is KL-KEPONG INDUSTRIAL HOLDINGS SDN. BHD., a
company incorporated in MALAYSIA. Share Capital
History
The major
shareholder(s) of the Subject are shown as follows :
+ Also Director The Subject's
interest in other companies (Subsidiaries/Associates) are shown as follow :
DIRECTORS
DIRECTOR 1
DIRECTOR 2
DIRECTOR 3
DIRECTOR 4
DIRECTOR 5
DIRECTOR 6
DIRECTOR 7
DIRECTOR 8
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1) |
Name of
Subject |
: |
YEOW AH KOW |
|
Position |
: |
DIRECTOR |
|
|
2) |
Name of
Subject |
: |
OSCAR LEE |
|
Position |
: |
FINANCIAL
CONTROLLER |
|
|
3) |
Name of
Subject |
: |
MARY |
|
Position |
: |
EXECUTIVE |
|
|
4) |
Name of
Subject |
: |
DEVA RATHNAM |
|
Position |
: |
PRODUCTION
MANAGER |
AUDITOR
|
Auditor |
: |
KPMG |
|
Auditor'
Address |
: |
KPMG TOWER, 8
FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING JAYA, SELANGOR,
MALAYSIA. |
COMPANY SECRETARIES
|
1) |
Company
Secretary |
: |
MS. YAP MIOW
KIEN |
|
IC / PP No |
: |
A1171235 |
|
|
New IC No |
: |
681220-05-5334 |
|
|
Address |
: |
12, LINGKARAN
MERU VALLEY 1A, LAKE VILLA, MERU VALLEY GOLF RESORT, 30020 IPOH, PERAK,
MALAYSIA. |
|
|
2) |
Company
Secretary |
: |
MR. PUNG KOK
HOOI |
|
New IC No |
: |
660414-07-5357 |
|
|
Address |
: |
1, JALAN SS
24/19, TAMAN MEGAH, 47301 PETALING JAYA, SELANGOR, MALAYSIA. |
|
BANKING
Banking relations are maintained principally with :
|
1) |
Name |
: |
MALAYAN
BANKING BHD |
ENCUMBRANCE
(S)
|
Charge No |
Creation Date |
Charge
Description |
Chargee Name |
Total Charge |
Status |
|
2 |
08/11/1991 |
DEBENTURE |
HONGKONG BANK
MALAYSIA BERHAD |
MYR
31,000,000.00 |
Satisfied |
|
1 |
02/12/1991 |
N/A |
HONGKONG BANK
MALAYSIA BERHAD |
- |
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 |
: |
YES |
Percentage |
: |
60% |
|
Overseas |
: |
YES |
Percentage |
: |
40% |
|
Import
Countries |
: |
ASIA |
|||
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 |
Percentage |
: |
45% |
|
Domestic
Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
YES |
Percentage |
: |
55% |
|
Export Market |
: |
EUROPE |
|||
|
Credit Term |
: |
30 - 60 DAYS |
|||
|
Payment Mode |
: |
CHEQUES |
|||
|
Type of
Customer |
: |
PALM OIL
INDUSTRIES |
|||
|
No of Customer |
: |
N/A |
|||
OPERATIONS
|
Products
manufactured |
: |
|
||
|
Award |
: |
1 ) MS ISO
9001 : 2000 Year :0 |
||
|
Member(s) /
Affiliate(s) |
: |
MALAYSIA EXTERNAL
TRADE DEVELOPMENT CORPORATION (MATRADE) CHEMICAL
INDUSTRIES COUNCIL OF MALAYSIA (CICM) MALAYSIA FOOD
& BEVERAGE INDUSTRY |
||
|
Ownership of
premises |
: |
OWNED |
||
|
Production
Line |
: |
N/A |
||
|
Production
Capacity |
: |
|
||
|
Shifts |
: |
1 |
||
|
Total Number
of Employees: |
|
||||||||
|
YEAR |
2015 |
2014 |
2013 |
2012 |
2011 |
||||
|
GROUP |
N/A |
N/A |
N/A |
N/A |
N/A |
||||
|
COMPANY |
350 |
350 |
350 |
350 |
350 |
||||
|
Branch |
: |
NO |
Other Information:
The Subject is principally engaged in the (as a / as an) manufacturing of
fatty acid products, glycerine and palm oil derivatives.
The Subject is a joint venture between KLK, Mitsui & Co., Ltd., Miyoshi
Oil & Fat Co., Ltd. and Asahi Denka Kyogo K.K.
The Subject was commissioned in 1992 and produces PALMERA Fatty Acids and
Glycerine using the latest process technology and computerized monitoring
systems.
The Subject is one of the largest standalone Oleochemical producers in the
world.
Fatty Acids form the critical mass of many common products globally.
Widely accepted and sought after for its high level of stability and
consistency, the Subject's Fatty Acid is being used extensively by many
well-known international brands in industries such as pharmaceuticals, soap
and detergents, cosmetics, food emulsifiers, varnishes and paints.
The Subject's Glycerine also finds wide appeal in many industries due to its
renowned stability and quality consistency, crucial criteria for many of
today's products.
CURRENT
INVESTIGATION
Latest fresh
investigations carried out on the Subject indicated that :
|
Telephone
Number Provided By Client |
: |
N/A |
|
Current
Telephone Number |
: |
03-60344800 |
|
Match |
: |
N/A |
|
Address
Provided by Client |
: |
LOT 1245,KUNDANG
INDUSTRIAL ESTATE 48020 RAWANG,SELANGOR DARUL EHSAN MALAYSIA |
|
Current
Address |
: |
LOT 1245,
KUNDANG INDUSTRIAL ESTATE, 48020 RAWANG, SELANGOR, MALAYSIA. |
|
Match |
: |
YES |
|
Latest
Financial Accounts |
: |
YES |
Other Investigations
We contacted one of the staff from the Subject and he provided some
information.
FINANCIAL
ANALYSIS
|
Profitability |
||||||
|
Turnover |
: |
Decreased |
[ |
2009 - 2013 |
] |
|
|
Profit/(Loss)
Before Tax |
: |
Increased |
[ |
2009 - 2013 |
] |
|
|
Return on
Shareholder Funds |
: |
Acceptable |
[ |
18.04% |
] |
|
|
Return on Net
Assets |
: |
Acceptable |
[ |
21.83% |
] |
|
|
The continuous
fall in turnover could be due to the lower demand for the Subject's products
/ services.The Subject's management have been efficient in controlling its
operating costs. The Subject's management had generated acceptable return
for its shareholders using its assets. |
||||||
|
Working
Capital Control |
||||||
|
Stock Ratio |
: |
Favourable |
[ |
42 Days |
] |
|
|
Debtor Ratio |
: |
Favourable |
[ |
19 Days |
] |
|
|
Creditors
Ratio |
: |
Favourable |
[ |
8 Days |
] |
|
|
The Subject's stocks
were moving fast thus reducing its holding cost. This had reduced funds
being tied up in stocks. The favourable debtors' days could be due to the
good credit control measures implemented by the Subject. The Subject had a
favourable creditors' ratio where the Subject could be taking advantage of
the cash discounts and also wanting to maintain goodwill with its
creditors. |
||||||
|
Liquidity |
||||||
|
Liquid Ratio |
: |
Favourable |
[ |
4.72 Times |
] |
|
|
Current Ratio |
: |
Favourable |
[ |
6.66 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 |
: |
Favourable |
[ |
1,203.51 Times |
] |
|
|
Gearing Ratio |
: |
Favourable |
[ |
0.00 Times |
] |
|
|
The interest
cover showed that the Subject was able to service the interest. The
favourable interest cover could indicate that the Subject was making enough
profit to pay for the interest accrued. The Subject had no gearing and
hence it had virtually no financial risk. The Subject was financed by its
shareholders' funds and internally generated fund. During the economic
downturn, the Subject, having a zero gearing, will be able to compete
better than those which are highly geared in the same industry. |
||||||
|
Overall
Assessment : |
||||||
|
Due to the
efficient control of its operating costs, the Subject was able to remain profitable
despite lower turnover achieved during the year. 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. With the favourable interest
cover, the Subject could be able to service all the accrued interest
without facing any difficulties. The Subject was a zero gearing company, it
was solely dependant on its shareholders to provide funds to finance its
business. The Subject has good chance of getting loans, if the needs
arises. |
||||||
|
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 |
|
|
10401 :
Manufacture of crude 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
|
|
|
|
PROFIT
AND LOSS ACCOUNT
|
THE FINANCIAL STATEMENTS
WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING
STANDARDS(FRS) |
|
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 |
GROUP |
GROUP |
GROUP |
GROUP |
Company |
|
Audited
Account |
YES |
YES |
YES |
YES |
YES |
|
Unqualified
Auditor's Report (Clean Opinion) |
YES |
YES |
YES |
YES |
YES |
|
Financial Type |
FULL |
FULL |
FULL |
FULL |
FULL |
|
Currency |
MYR |
MYR |
MYR |
MYR |
MYR |
|
TURNOVER |
1,510,760,000 |
1,826,578,000 |
2,082,842,000 |
1,323,725,000 |
850,136,000 |
|
Other Income |
2,318,000 |
7,609,000 |
4,644,000 |
11,866,000 |
927,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Total Turnover |
1,513,078,000 |
1,834,187,000 |
2,087,486,000 |
1,335,591,000 |
851,063,000 |
|
Costs of Goods
Sold |
(1,270,719,000) |
(1,687,083,000) |
(1,946,645,000) |
(1,240,176,000) |
(779,655,000) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Gross Profit |
242,359,000 |
147,104,000 |
140,841,000 |
95,415,000 |
71,408,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS)
FROM OPERATIONS |
200,055,000 |
111,372,000 |
113,252,000 |
80,832,000 |
50,377,000 |
|
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED COMPANIES |
20,004,000 |
7,344,000 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS)
BEFORE TAXATION |
220,059,000 |
118,716,000 |
113,252,000 |
80,832,000 |
50,377,000 |
|
Taxation |
(47,372,000) |
(27,334,000) |
(24,030,000) |
(17,577,000) |
(12,834,000) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS)
AFTER TAXATION |
172,687,000 |
91,382,000 |
89,222,000 |
63,255,000 |
37,543,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED
PROFIT/(LOSS) BROUGHT FORWARD |
|||||
|
As previously
reported |
426,768,000 |
350,007,000 |
280,512,000 |
358,886,000 |
249,166,000 |
|
Prior year
adjustment |
- |
8,048,000 |
2,942,000 |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
As restated |
426,768,000 |
358,055,000 |
283,454,000 |
358,886,000 |
249,166,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT
AVAILABLE FOR APPROPRIATIONS |
599,455,000 |
449,437,000 |
372,676,000 |
422,141,000 |
286,709,000 |
|
TRANSFER TO
RESERVES - General |
- |
- |
- |
(129,000) |
- |
|
CAPITALISATION
FOR BONUS ISSUES |
- |
- |
- |
(141,500,000) |
- |
|
DIVIDENDS -
Ordinary (paid & proposed) |
(45,338,000) |
(22,669,000) |
(22,669,000) |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED
PROFIT/(LOSS) CARRIED FORWARD |
554,117,000 |
426,768,000 |
350,007,000 |
280,512,000 |
286,709,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
INTEREST
EXPENSE (as per notes to P&L) |
|||||
|
Others |
183,000 |
2,147,000 |
7,408,000 |
2,814,000 |
4,500,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
183,000 |
2,147,000 |
7,408,000 |
2,814,000 |
4,500,000 |
|
|
============= |
============= |
============= |
============= |
============= |
BALANCE
SHEET
|
ASSETS
EMPLOYED: |
|||||
|
FIXED ASSETS |
275,892,000 |
296,040,000 |
331,568,000 |
259,905,000 |
132,748,000 |
|
LONG TERM
INVESTMENTS/OTHER ASSETS |
|||||
|
Subsidiary
companies |
- |
- |
- |
- |
87,942,000 |
|
Associated
companies |
168,971,000 |
132,649,000 |
124,933,000 |
122,103,000 |
63,800,000 |
|
Others |
20,739,000 |
21,018,000 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM
INVESTMENTS/OTHER ASSETS |
189,710,000 |
153,667,000 |
124,933,000 |
122,103,000 |
151,742,000 |
|
Goodwill on
consolidation |
35,082,000 |
35,082,000 |
35,082,000 |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL
INTANGIBLE ASSETS |
35,082,000 |
35,082,000 |
35,082,000 |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG
TERM ASSETS |
500,684,000 |
484,789,000 |
491,583,000 |
382,008,000 |
284,490,000 |
|
Stocks |
174,073,000 |
213,034,000 |
303,771,000 |
212,404,000 |
95,929,000 |
|
Trade debtors |
79,243,000 |
87,119,000 |
199,911,000 |
79,808,000 |
39,934,000 |
|
Other debtors,
deposits & prepayments |
4,151,000 |
4,184,000 |
17,490,000 |
11,584,000 |
1,312,000 |
|
Short term
deposits |
228,956,000 |
104,455,000 |
13,248,000 |
11,475,000 |
24,051,000 |
|
Short term
loans & advances |
- |
- |
- |
- |
15,017,000 |
|
Amount due from
holding company |
141,000 |
134,000 |
75,000 |
95,750,000 |
- |
|
Amount due
from subsidiary companies |
- |
- |
- |
- |
5,577,000 |
|
Amount due
from related companies |
47,885,000 |
35,352,000 |
16,000 |
14,861,000 |
20,370,000 |
|
Amount due from
associated companies |
23,987,000 |
24,097,000 |
146,000 |
65,866,000 |
67,432,000 |
|
Cash &
bank balances |
37,160,000 |
7,083,000 |
7,009,000 |
6,189,000 |
1,368,000 |
|
Others |
2,377,000 |
6,485,000 |
4,032,000 |
970,000 |
22,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT
ASSETS |
597,973,000 |
481,943,000 |
545,698,000 |
498,907,000 |
271,012,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL ASSET |
1,098,657,000 |
966,732,000 |
1,037,281,000 |
880,915,000 |
555,502,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
CURRENT
LIABILITIES |
|||||
|
Trade
creditors |
28,337,000 |
35,102,000 |
47,326,000 |
37,367,000 |
17,104,000 |
|
Other
creditors & accruals |
44,303,000 |
39,654,000 |
30,918,000 |
24,315,000 |
18,596,000 |
|
Short term
borrowings/Term loans |
- |
8,235,000 |
16,000,000 |
16,000,000 |
21,250,000 |
|
Other
borrowings |
- |
- |
60,423,000 |
- |
- |
|
Bill &
acceptances payable |
- |
- |
21,820,000 |
- |
- |
|
Amounts owing
to holding company |
89,000 |
99,000 |
30,501,000 |
29,786,000 |
17,000 |
|
Amounts owing
to subsidiary companies |
- |
- |
- |
- |
84,000 |
|
Amounts owing
to related companies |
585,000 |
1,693,000 |
1,022,000 |
13,864,000 |
15,125,000 |
|
Amounts owing
to associated companies |
1,782,000 |
1,077,000 |
42,000 |
774,000 |
13,000 |
|
Provision for
taxation |
10,513,000 |
1,018,000 |
2,105,000 |
1,908,000 |
2,415,000 |
|
Other
liabilities |
4,150,000 |
- |
9,565,000 |
9,000,000 |
39,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT
LIABILITIES |
89,759,000 |
86,878,000 |
219,722,000 |
133,014,000 |
74,643,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
NET CURRENT
ASSETS/(LIABILITIES) |
508,214,000 |
395,065,000 |
325,976,000 |
365,893,000 |
196,369,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL NET
ASSETS |
1,008,898,000 |
879,854,000 |
817,559,000 |
747,901,000 |
480,859,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
SHARE CAPITAL |
|||||
|
Ordinary share
capital |
403,000,000 |
403,000,000 |
403,000,000 |
403,000,000 |
141,500,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL SHARE
CAPITAL |
403,000,000 |
403,000,000 |
403,000,000 |
403,000,000 |
141,500,000 |
|
Retained
profit/(loss) carried forward |
554,117,000 |
426,768,000 |
350,007,000 |
280,512,000 |
286,709,000 |
|
Capital
redemption reserve |
129,000 |
129,000 |
129,000 |
129,000 |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL RESERVES |
554,246,000 |
426,897,000 |
350,136,000 |
280,641,000 |
286,709,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
SHAREHOLDERS'
FUNDS/EQUITY |
957,246,000 |
829,897,000 |
753,136,000 |
683,641,000 |
428,209,000 |
|
Long term
loans |
- |
- |
8,174,000 |
24,292,000 |
23,750,000 |
|
Deferred
taxation |
47,444,000 |
49,474,000 |
56,249,000 |
39,968,000 |
28,900,000 |
|
Others |
4,208,000 |
483,000 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG
TERM LIABILITIES |
51,652,000 |
49,957,000 |
64,423,000 |
64,260,000 |
52,650,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
1,008,898,000 |
879,854,000 |
817,559,000 |
747,901,000 |
480,859,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
FINANCIAL
RATIO
|
TYPES OF FUNDS |
|||||
|
Cash |
266,116,000 |
111,538,000 |
20,257,000 |
17,664,000 |
25,419,000 |
|
Net Liquid Funds |
266,116,000 |
111,538,000 |
(1,563,000) |
17,664,000 |
25,419,000 |
|
Net Liquid
Assets |
334,141,000 |
182,031,000 |
22,205,000 |
153,489,000 |
100,440,000 |
|
Net Current
Assets/(Liabilities) |
508,214,000 |
395,065,000 |
325,976,000 |
365,893,000 |
196,369,000 |
|
Net Tangible
Assets |
973,816,000 |
844,772,000 |
782,477,000 |
747,901,000 |
480,859,000 |
|
Net Monetary
Assets |
282,489,000 |
132,074,000 |
(42,218,000) |
89,229,000 |
47,790,000 |
|
BALANCE SHEET
ITEMS |
|||||
|
Total
Borrowings |
0 |
8,235,000 |
106,417,000 |
40,292,000 |
45,000,000 |
|
Total
Liabilities |
141,411,000 |
136,835,000 |
284,145,000 |
197,274,000 |
127,293,000 |
|
Total Assets |
1,098,657,000 |
966,732,000 |
1,037,281,000 |
880,915,000 |
555,502,000 |
|
Net Assets |
1,008,898,000 |
879,854,000 |
817,559,000 |
747,901,000 |
480,859,000 |
|
Net Assets
Backing |
957,246,000 |
829,897,000 |
753,136,000 |
683,641,000 |
428,209,000 |
|
Shareholders'
Funds |
957,246,000 |
829,897,000 |
753,136,000 |
683,641,000 |
428,209,000 |
|
Total Share
Capital |
403,000,000 |
403,000,000 |
403,000,000 |
403,000,000 |
141,500,000 |
|
Total Reserves |
554,246,000 |
426,897,000 |
350,136,000 |
280,641,000 |
286,709,000 |
|
LIQUIDITY
(Times) |
|||||
|
Cash Ratio |
2.96 |
1.28 |
0.09 |
0.13 |
0.34 |
|
Liquid Ratio |
4.72 |
3.10 |
1.10 |
2.15 |
2.35 |
|
Current Ratio |
6.66 |
5.55 |
2.48 |
3.75 |
3.63 |
|
WORKING
CAPITAL CONTROL (Days) |
|||||
|
Stock Ratio |
42 |
43 |
53 |
59 |
41 |
|
Debtors Ratio |
19 |
17 |
35 |
22 |
17 |
|
Creditors Ratio |
8 |
8 |
9 |
11 |
8 |
|
SOLVENCY
RATIOS (Times) |
|||||
|
Gearing Ratio |
0.00 |
0.01 |
0.14 |
0.06 |
0.11 |
|
Liabilities
Ratio |
0.15 |
0.16 |
0.38 |
0.29 |
0.30 |
|
Times Interest
Earned Ratio |
1,203.51 |
56.29 |
16.29 |
29.72 |
12.19 |
|
Assets Backing
Ratio |
2.42 |
2.10 |
1.94 |
1.86 |
3.40 |
|
PERFORMANCE
RATIO (%) |
|||||
|
Operating
Profit Margin |
14.57 |
6.50 |
5.44 |
6.11 |
5.93 |
|
Net Profit
Margin |
11.43 |
5.00 |
4.28 |
4.78 |
4.42 |
|
Return On Net
Assets |
21.83 |
13.74 |
14.76 |
11.18 |
11.41 |
|
Return On
Capital Employed |
21.10 |
13.21 |
14.15 |
11.18 |
11.41 |
|
Return On
Shareholders' Funds/Equity |
18.04 |
11.01 |
11.85 |
9.25 |
8.77 |
|
Dividend Pay
Out Ratio (Times) |
0.26 |
0.25 |
0.25 |
0.00 |
0.00 |
|
NOTES TO
ACCOUNTS |
|||||
|
Contingent
Liabilities |
0 |
0 |
0 |
0 |
0 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.38 |
|
|
1 |
Rs.99.13 |
|
Euro |
1 |
Rs.69.69 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.