MIRA INFORM REPORT

 

 

Report No. :

321803

Report Date :

13.05.2015

 

IDENTIFICATION DETAILS

 

Name :

GREENWELL OLEOCHEMICALS SDN. BHD.

 

 

Formerly Known As :

GREENWELL SPECIALTY CHEMICAL SDN BHD


GREENWELL TRADING SDN BHD


UNI-IVORY MARKETING SDN BHD

 

 

Registered Office :

52 B, Persiaran Green Hill, 30450 Ipoh, Perak

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

24.04.1998

 

 

Com. Reg. No.:

461439-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Oleochemicals.

 

 

No. of Employees :

10 [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 :

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. Falling global oil prices in the second half of 2014 have shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. 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. Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

461439-M

COMPANY NAME

:

GREENWELL OLEOCHEMICALS SDN. BHD.

FORMER NAME

:

GREENWELL SPECIALTY CHEMICAL SDN BHD (04/09/2002)
GREENWELL TRADING SDN BHD (20/04/2000)
UNI-IVORY MARKETING SDN BHD (23/06/1998)

INCORPORATION DATE

:

24/04/1998

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

52B, PERSIARAN GREEN HILL, 30450 IPOH, PERAK, MALAYSIA.

BUSINESS ADDRESS

:

18, JALAN BULAN BT U5/BT, SECTION U5, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78468625

FAX.NO.

:

03-78468867

EMAIL

:

MARKETING@GREENWELL.COM.MY

WEB SITE

:

WWW.GREENWELL.COM.MY

CONTACT PERSON

:

TAN KOK HOONG ( DIRECTOR )

INDUSTRY CODE

:

46691

PRINCIPAL ACTIVITY

:

TRADING OF OF OLEOCHEMICALS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,000,000.00 DIVIDED INTO
ORDINARY SHARES 400,000 CASH AND 1,600,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 66,116,454 [2013]

NET WORTH

:

MYR 5,847,096 [2013]

STAFF STRENGTH

:

10 [2015]

 

 

 

BANKER (S)

 

HSBC BANK MALAYSIA BHD
MALAYAN BANKING BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 


HISTORY / BACKGROUND

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

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

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/06/2014

MYR 5,000,000.00

MYR 2,000,000.00

20/09/2007

MYR 1,000,000.00

MYR 1,000,000.00

08/02/2006

MYR 1,000,000.00

MYR 600,000.00

28/04/1999

MYR 100,000.00

MYR 100,000.00

28/04/1999

MYR 100,000.00

MYR 100,000.00

30/04/1998

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. TAN KOK HOONG +

19, JALAN USJ 6/2H, UEP SUBANG JAYA, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

560613-71-5099 4968597

1,000,000.00

50.00

INNOVATIVE PROJECT MANAGEMENT SDN. BHD.

18, JALAN BULAN H U5/H, SECTION U5, SUNGAI BULOH BATU 3, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

451768H

500,000.00

25.00

GREENWELL HOLDINGS SDN. BHD.

18, JALAN BULAN HU 5/H, SECTION U5,SUNGAI BULOH, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

457938P

500,000.00

25.00

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

------

2,000,000.00

100.00

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

=====

+ Also Director

 

The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Country

Company

(%)

As At

539465W

MALAYSIA

EUREKA BINTANG SDN. BHD.

100.00

26/11/2014

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. LIM LOI HENG

Address

:

131, JALAN DATUK SULAIMAN, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

4125205

New IC No

:

510906-08-5179

Date of Birth

:

06/09/1951

Nationality

:

MALAYSIAN

Date of Appointment

:

06/07/2012

 

DIRECTOR 2

 

Name Of Subject

:

MR. HO KEE PEE

Address

:

10, JALAN USJ 4/9E, PETALING JAYA, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

8159401

New IC No

:

531207-03-5511

Date of Birth

:

07/12/1953

Nationality

:

MALAYSIAN

Date of Appointment

:

10/06/1998

 

DIRECTOR 3

 

Name Of Subject

:

MR. TAN KOK HOONG

Address

:

19, JALAN USJ 6/2H, UEP SUBANG JAYA, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

4968597

New IC No

:

560613-71-5099

Date of Birth

:

13/06/1956

Nationality

:

MALAYSIAN

Date of Appointment

:

19/05/1999



MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN KOK HOONG

Position

:

DIRECTOR

 



AUDITOR

 

Auditor

:

FOLKS DFK & CO

Auditor' Address

:

48A, PESIARAN GREEN HILL, 1ST FLOOR, 30450 IPOH, PERAK, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. HUNG SOW MEI

IC / PP No

:

4750911

New IC No

:

550415-08-6552

Address

:

52B, PERSIARAN GREEN HILL, 30450 IPOH, PERAK, MALAYSIA.

 

2)

Company Secretary

:

MS. CHOO LIH JIUN

IC / PP No

:

A2118682

New IC No

:

720706-08-5276

Address

:

52B, PERSIARAN GREEN HILL, 30450 IPOH, PERAK, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

2)

Name

:

MALAYAN BANKING BHD

 

3)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

11/11/2002

OPEN CHARGE

HSBC BANK MALAYSIA BERHAD

-

Unsatisfied

2

03/05/2005

N/A

MALAYAN BANKING BERHAD

MYR 860,000.00

Satisfied

3

26/12/2006

N/A

MALAYAN BANKING BHD

MYR 382,500.00

Satisfied

4

27/05/2009

A MEMORANDUM OF DEPOSIT OF FIXED DEPOSIT AND/OR NEGOTIABLE CERTIFICATE OF DEPOSIT DATED OF 27/05/2009

MALAYAN BANKING BHD

-

Unsatisfied

6

23/12/2014

1ST PARTY

UNITED OVERSEAS BANK (MALAYSIA) BHD

-

Unsatisfied

LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT

 

* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

No blacklisted record & debt collection case was found in our defaulters' databank.

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

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

[

]

Good 31-60 Days

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

N/A

Overseas

:

N/A


The Subject refused to disclose its clientele information.

 

 

OPERATIONS

 

Goods Traded

:

OLEOCHEMICALS

 

Total Number of Employees:

 

YEAR

2015

2014

2012

2011

GROUP

N/A

N/A

N/A

N/A

COMPANY

10

7

10

6

 

Branch

:

NO

Other Information:


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

The Subject is engaged in the sale of oleo chemicals products.

Basic oleochemicals such as Fatty acids, Fatty alcohols, Fatty esters as well as other Oleochemical Derivatives like, Fatty amines, Amides, Stearates, Oleates, Food emulsifiers, Plasticisers/stabilizers, Sulphonates/sulphates, Soap noodles.

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-78468625

Match

:

N/A

Address Provided by Client

:

18, JALAN BULAN BT U5/BT, SECTION U5,40150,SHAH ALAM,SELANGOR.

Current Address

:

18, JALAN BULAN BT U5/BT, SECTION U5, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations

On 11th May 2015 we contacted one of the staff from the Subject and he provided some information.

 

FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Erratic

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

Return on Shareholder Funds

:

Favourable

[

31.36%

]

Return on Net Assets

:

Favourable

[

43.24%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

4 Days

]

Debtor Ratio

:

Favourable

[

23 Days

]

Creditors Ratio

:

Favourable

[

4 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

[

2.84 Times

]

Current Ratio

:

Favourable

[

3.13 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

:

Favourable

[

25.39 Times

]

Gearing Ratio

:

Favourable

[

0.23 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 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 turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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 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

46691 : Wholesale of industrial chemicals

INDUSTRY :

TRADING

The wholesale and retail trade is expected to increase 7.1% in 2015 (2014: 7.7%) driven by strong domestic consumption and higher tourist arrivals following the Malaysia Year of Festivals 2015. Besides, in 2014, the wholesale and retail trade subsector is expected to increase 7.7% (2013: 6.4%) supported by strong domestic consumption.

According to Retail Group Malaysia (RGM), the pharmacy and personal care sub-sector had slow growth rate of 2.6% for the first quarter of 2014, while "other specialty stores" grew at a rate of 3.5%. During the first quarter of 2014, fashion and fashion accessories recorded a sustainable growth of 6.3% as compared with the same period last year (3.6%).

The retail segment increased 10.1% (January - June 2013: 7.1%) attributed to brisk sales in retail outlets such as hypermarkets and large-scale superstores. Since the launch of the Small Retailer Transformation programme (TUKAR) in January 2011 up to end-July 2014, 1,761 small retailer stores (end-July 2013: 1,381) have been modernized to improve their competitiveness. In addition, the strong growth of the retail segment was supported by 1Malaysia Unified Sales held from 29 June 2014 to 1 September 2014 to attract foreign and local tourists to shop in Malaysia. Meanwhile, the wholesale segment expanded 8.2% (January - June 2013: 4.9%) due to higher sales of non-agricultural intermediate products, such as petrol, diesel, lubricants and household goods. Furthermore, food and beverage outlets, laundry outlets, car wash centres, abd health and beauty outlets took a hit from the water rationing in the Klang Valley since February this year.

On the other hand, in 2014, Malaysia's total trade is expected to grow 5.2% to RM1.44 trillion (2013: 4.5%; RM1.37 trillion) underpinned by recovery in key advanced economies, resilient regional demand, and partly due to the base effect arising from sluggish exports in the corresponding period last year. Gross exports are anticipated to expand 6% to RM762.8 billion while import decreased 4.3% to RM677.2 billion (2013: 2.4%; RM719.8 billion; 7%; RM 649.1 billion). Consequently, the trade surplus is expected to be higher at RM85.6 billion or 7.9% of GDP in 2014 (2013: RM70.7 billion; 7.2%).

Furthermore, gross exports rebounded by 10.7% to RM441.3 billion during the first seven months of 2014 (January - July 2013: -2.8%; RM398.5 billion), with manufactured and mining exports rising at a double digit pace of 11.4% and 12.5%. Shipment of agriculture products grew at a slower pace of 2.7%, primarily due to lower receipts of crude rubber (-24.6%) while export growth of other commodities remained steady. Consequently, exports of manufactured and mining products are expected to grow 6.1% and 6.4% in 2014 (2013: 5.1%; 3.3%). Meanwhile, agriculture exports are expected to rebound sharply by 4.5% in 2014 (2013: -14.4%) despite moderating commodity prices. Malaysia's top 3 trading partners are China, Singapore, and Japan.

Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption. Therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1998, the Subject is a Private Limited company, focusing on trading of of oleochemicals. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. A paid up capital of MYR 2,000,000 allows the Subject to expand its business more comfortably. We considered that the Subject's business position in the market is much dependent on the efforts of its directors.

 

Being a small company, the Subject's business operation is supported by 10 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.

 

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. 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. Given a positive net worth standing at MYR 5,847,096, the Subject should be able to maintain its business in the near terms.

 

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.


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)

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

2009-12-31

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

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

66,116,454

45,536,055

49,153,531

28,085,837

26,137,480

Other Income

353,927

222,047

434,353

29,006

38,279

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

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

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

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

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

Total Turnover

66,470,381

45,758,102

49,587,884

28,114,843

26,175,759

Costs of Goods Sold

(62,615,441)

(43,231,336)

(46,276,723)

(26,026,455)

(24,744,788)

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

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

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

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

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

Gross Profit

3,854,940

2,526,766

3,311,161

2,088,388

1,430,971

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

2,428,841

1,243,380

2,083,194

982,445

306,475

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

2,428,841

1,243,380

2,083,194

982,445

306,475

Taxation

(595,449)

(304,825)

(504,016)

(226,885)

(79,936)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,833,392

938,555

1,579,178

755,560

226,539

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

2,491,821

1,953,266

1,674,088

918,528

1,091,989

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

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

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

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

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

As restated

2,491,821

1,953,266

1,674,088

918,528

1,091,989

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

4,325,213

2,891,821

3,253,266

1,674,088

1,318,528

CAPITALISATION FOR BONUS ISSUES

-

-

(1,000,000)

-

-

DIVIDENDS - Ordinary (paid & proposed)

(600,000)

(400,000)

(300,000)

-

(400,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

3,725,213

2,491,821

1,953,266

1,674,088

918,528

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

-

5,311

4,437

26,125

26,125

Bankers' acceptance

69,687

20,210

20,595

20,162

17,444

Hire purchase

7,380

7,380

-

2,987

5,944

Term loan / Borrowing

-

17,160

20,933

22,293

23,679

Others

22,506

24,940

20,043

40,194

95,087

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

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

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

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

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

99,573

75,001

66,008

111,761

168,279

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

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

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

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

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

DEPRECIATION (as per notes to P&L)

103,038

104,405

100,596

20,728

89,680

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

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

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

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

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

103,038

104,405

100,596

20,728

89,680

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

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

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

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

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

 

 


BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

606,218

708,876

784,278

480,645

491,377

Goodwill on consolidation

9,690

9,690

9,690

9,690

9,690

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

9,690

9,690

9,690

9,690

9,690

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

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

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

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

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

TOTAL LONG TERM ASSETS

615,908

718,566

793,968

490,335

501,067

Stocks

720,890

1,352,080

1,183,300

1,239,427

458,677

Trade debtors

4,237,665

5,005,714

6,090,185

3,518,639

2,383,821

Other debtors, deposits & prepayments

275,706

219,165

218,279

247,188

41,957

Short term deposits

776,966

755,004

734,317

716,193

1,041,394

Amount due from director

12,230

12,230

12,230

16,229

-

Cash & bank balances

1,614,336

1,385,689

707,205

470,975

1,180,487

Others

43,961

262,154

-

135,635

120,846

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

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

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

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

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

TOTAL CURRENT ASSETS

7,681,754

8,992,036

8,945,516

6,344,286

5,227,182

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

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

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

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

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

TOTAL ASSET

8,297,662

9,710,602

9,739,484

6,834,621

5,728,249

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

750,690

4,196,199

4,102,184

2,804,066

2,145,940

Other creditors & accruals

371,335

383,730

893,630

274,509

769,470

Hire purchase & lease creditors

60,000

60,000

-

-

23,464

Bank overdraft

-

2,311

38,735

306,969

60,685

Short term borrowings/Term loans

-

-

38,894

36,585

36,879

Bill & acceptances payable

1,263,000

391,000

500,000

500,000

-

Amounts owing to director

5,541

5,541

5,541

5,541

8,311

Provision for taxation

-

-

10,442

-

-

Other liabilities

-

-

-

-

500,000

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

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

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

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

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

TOTAL CURRENT LIABILITIES

2,450,566

5,038,781

5,589,426

3,927,670

3,544,749

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

5,231,188

3,953,255

3,356,090

2,416,616

1,682,433

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

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

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

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

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

TOTAL NET ASSETS

5,847,096

4,671,821

4,150,058

2,906,951

2,183,500

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

2,000,000

2,000,000

2,000,000

1,000,000

1,000,000

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

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

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

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

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

TOTAL SHARE CAPITAL

2,000,000

2,000,000

2,000,000

1,000,000

1,000,000

Retained profit/(loss) carried forward

3,725,213

2,491,821

1,953,266

1,674,088

918,528

Others

121,883

180,000

-

-

-

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

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

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

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

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

TOTAL RESERVES

3,847,096

2,671,821

1,953,266

1,674,088

918,528

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

5,847,096

4,671,821

3,953,266

2,674,088

1,918,528

Long term loans

-

-

196,792

232,863

264,972

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

-

196,792

232,863

264,972

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

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

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

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

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

5,847,096

4,671,821

4,150,058

2,906,951

2,183,500

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

2,391,302

2,140,693

1,441,522

1,187,168

2,221,881

Net Liquid Funds

1,128,302

1,747,382

902,787

380,199

2,161,196

Net Liquid Assets

4,510,298

2,601,175

2,172,790

1,177,189

1,223,756

Net Current Assets/(Liabilities)

5,231,188

3,953,255

3,356,090

2,416,616

1,682,433

Net Tangible Assets

5,837,406

4,662,131

4,140,368

2,897,261

2,173,810

Net Monetary Assets

4,510,298

2,601,175

1,975,998

944,326

958,784

BALANCE SHEET ITEMS

Total Borrowings

1,323,000

453,311

774,421

1,076,417

386,000

Total Liabilities

2,450,566

5,038,781

5,786,218

4,160,533

3,809,721

Total Assets

8,297,662

9,710,602

9,739,484

6,834,621

5,728,249

Net Assets

5,847,096

4,671,821

4,150,058

2,906,951

2,183,500

Net Assets Backing

5,847,096

4,671,821

3,953,266

2,674,088

1,918,528

Shareholders' Funds

5,847,096

4,671,821

3,953,266

2,674,088

1,918,528

Total Share Capital

2,000,000

2,000,000

2,000,000

1,000,000

1,000,000

Total Reserves

3,847,096

2,671,821

1,953,266

1,674,088

918,528

LIQUIDITY (Times)

Cash Ratio

0.98

0.42

0.26

0.30

0.63

Liquid Ratio

2.84

1.52

1.39

1.30

1.35

Current Ratio

3.13

1.78

1.60

1.62

1.47

WORKING CAPITAL CONTROL (Days)

Stock Ratio

4

11

9

16

6

Debtors Ratio

23

40

45

46

33

Creditors Ratio

4

35

32

39

32

SOLVENCY RATIOS (Times)

Gearing Ratio

0.23

0.10

0.20

0.40

0.20

Liabilities Ratio

0.42

1.08

1.46

1.56

1.99

Times Interest Earned Ratio

25.39

17.58

32.56

9.79

2.82

Assets Backing Ratio

2.92

2.33

2.07

2.90

2.17

PERFORMANCE RATIO (%)

Operating Profit Margin

3.67

2.73

4.24

3.50

1.17

Net Profit Margin

2.77

2.06

3.21

2.69

0.87

Return On Net Assets

43.24

28.22

51.79

37.64

21.74

Return On Capital Employed

42.73

27.79

51.19

33.94

20.85

Return On Shareholders' Funds/Equity

31.36

20.09

39.95

28.25

11.81

Dividend Pay Out Ratio (Times)

0.33

0.43

0.19

0.00

1.77

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.20

UK Pound

1

Rs.100.03

Euro

1

Rs.71.91

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

VNT

 

               

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.