|
Report No. : |
345041 |
|
Report Date : |
17.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
NESPALM SDN. BHD. |
|
|
|
|
Registered Office : |
11-02, Menara Tjb, 9, Jalan Syed Mohd
Mufti, Tingkat 11, 80000 Johor Bahru, Johor |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
04.06.1999 |
|
|
|
|
Com. Reg. No.: |
485096-X |
|
|
|
|
Legal Form : |
Private Limited |
|
|
|
|
Line of Business : |
Trading of palm oil |
|
|
|
|
No. of Employee : |
10 [2015] |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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.
Malaysia is vulnerable to a fall in world commodity prices or a general
slowdown in global economic activity.
The NAJIB
administration 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. Gross exports of goods and services constitute more than 80% of
GDP. The oil and gas sector supplied about 29% of government revenue in 2014.
As an oil and gas exporter, Malaysia has previously 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
strained government finances, shrunk Malaysia’s current account surplus and put
downward pressure on the ringgit. The government is trying to lessen its
dependence on state oil producer Petronas.
Bank
Negara Malaysia (the central bank) maintains healthy foreign exchange reserves;
a well-developed regulatory regime has limited Malaysia's exposure to riskier
financial instruments and the global financial crisis. In order to attract
increased investment, NAJIB 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. |
: |
485096-X |
||||
|
COMPANY NAME |
: |
NESPALM SDN. BHD. |
||||
|
FORMER NAME |
: |
SYARIKAT BUANA KITA SDN BHD (23/06/2000) |
||||
|
INCORPORATION DATE |
: |
04/06/1999 |
||||
|
COMPANY STATUS |
: |
EXIST |
||||
|
LEGAL FORM |
: |
PRIVATE LIMITED |
||||
|
LISTED STATUS |
: |
NO |
||||
|
REGISTERED ADDRESS |
: |
11-02, MENARA TJB, 9, JALAN SYED MOHD
MUFTI, TINGKAT 11, 80000 JOHOR BAHRU, JOHOR, MALAYSIA. |
||||
|
BUSINESS ADDRESS |
: |
137A, JALAN SUSUR 3, 81000 KULAI, JOHOR,
MALAYSIA. |
||||
|
TEL.NO. |
: |
07-6637682 |
||||
|
FAX.NO. |
: |
07-6633682 |
||||
|
CONTACT PERSON |
: |
JAYALETCHMY A/P PALANISAMY ( DIRECTOR ) |
||||
|
INDUSTRY CODE |
: |
46202 |
||||
|
PRINCIPAL ACTIVITY |
: |
TRADING OF PALM OIL |
||||
|
AUTHORISED CAPITAL |
: |
MYR 5,000,000.00 DIVIDED INTO |
||||
|
ISSUED AND PAID UP CAPITAL |
: |
MYR 1,520,000.00 DIVIDED INTO |
||||
|
SALES |
: |
MYR 94,233,230 [2013] |
||||
|
NET WORTH |
: |
MYR 1,622,611 [2013] |
||||
|
STAFF STRENGTH |
: |
10 [2015] |
||||
|
||||||
|
LITIGATION |
: |
CLEAR |
||||
|
DEFAULTER CHECK |
: |
CLEAR |
||||
|
FINANCIAL CONDITION |
: |
POOR |
||||
|
PAYMENT |
: |
AVERAGE |
||||
|
MANAGEMENT CAPABILITY |
: |
AVERAGE |
||||
|
COMMERCIAL RISK |
: |
MODERATE |
||||
|
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 |
|
30/06/2014 |
MYR 5,000,000.00 |
MYR 1,520,000.00 |
|
10/09/2007 |
MYR 5,000,000.00 |
MYR 1,020,000.00 |
|
06/06/2002 |
MYR 1,000,000.00 |
MYR 1,000,000.00 |
|
09/09/2001 |
MYR 500,000.00 |
MYR 500,000.00 |
|
20/04/2000 |
MYR 100,000.00 |
MYR 100,000.00 |
The major shareholder(s) of the Subject are
shown as follows :
Current Shareholder(s) :
|
Name |
Address |
IC/PP/Loc No |
Shareholding |
(%) |
|
MR. SHANMUGAM A/L MUTHUSAMY + |
246, JALAN PINANG SATU, TAMAN KOTA KULAI,
81000 KULAI, JOHOR, MALAYSIA. |
841228-01-5425 |
760,000.00 |
50.00 |
|
MS. JAYALETCHMY A/P PALANISAMY + |
180, JALAN SABAR, TAMAN EMAS, 81000 KULAI,
JOHOR, MALAYSIA. |
571004-01-5330 5369763 |
760,000.00 |
50.00 |
|
--------------- |
------ |
|||
|
1,520,000.00 |
100.00 |
|||
|
============ |
===== |
+ Also Director
Former Shareholder(s) :
|
Name |
Country |
IC/PP/Loc No |
Shareholding |
Last Updated |
|
MUTHUSAMY A/L P SINNAPPAN |
MALAYSIA |
540306-01-5393 |
N/A |
N/A |
DIRECTORS
|
DIRECTOR 1
|
Name Of Subject |
: |
MR. MOHTAR BIN NGAH |
|
Address |
: |
292, JALAN AIR BUKIT, TAMAN AMPANG UTAMA,
BATU 4 1/2, JALAN AMPANG, 68000 AMPANG, SELANGOR, MALAYSIA. |
|
IC / PP No |
: |
4713730 |
|
New IC No |
: |
541122-04-5103 |
|
Date of Birth |
: |
22/11/1954 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
08/12/2004 |
DIRECTOR 2
|
Name Of Subject |
: |
MR. SHANMUGAM A/L MUTHUSAMY |
|
Address |
: |
246, JALAN PINANG SATU, TAMAN KOTA KULAI,
81000 KULAI, JOHOR, MALAYSIA. |
|
New IC No |
: |
841228-01-5425 |
|
Date of Birth |
: |
28/12/1984 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
17/12/2010 |
DIRECTOR 3
|
Name Of Subject |
: |
MS. JAYALETCHMY A/P PALANISAMY |
|
Address |
: |
180, JALAN SABAR, TAMAN EMAS, 81000 KULAI,
JOHOR, MALAYSIA. |
|
IC / PP No |
: |
5369763 |
|
New IC No |
: |
571004-01-5330 |
|
Date of Birth |
: |
04/10/1957 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
04/06/1999 |
MANAGEMENT
|
|
1) |
Name of Subject |
: |
JAYALETCHMY A/P PALANISAMY |
|
Position |
: |
DIRECTOR |
|
|
AUDITOR |
|
Auditor |
: |
GANESH KUMAR & CO. |
|
Auditor' Address |
: |
11-01, MENARA TJB, 9, TINGKAT 11, 80000 JOHOR
BAHRU, JOHOR, MALAYSIA. |
COMPANY SECRETARIES
|
|
1) |
Company Secretary |
: |
MS. ROHANI BINTI ABDUL RAZAK |
|
IC / PP No |
: |
A1824902 |
|
|
New IC No |
: |
720219-71-5226 |
|
|
Address |
: |
51, JALAN RUMBIA 28, TAMAN DAYA, 81100 JOHOR
BAHRU, JOHOR, 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 |
|
1 |
31/10/2007 |
FACILITIES AGREEMENT & DEBENTURE & SECURITY TRUST DEED |
CREDIT GUARANTEE CORPORATION MALAYSIA
BERHAD |
- |
Satisfied |
|
2 |
03/07/2009 |
MEMORANDUM OF DEPOSIT OF FIXED DEPOSIT RECEIPT & LETTER OF SET-OFF
AND LETTER OF GUARANTEE |
MALAYAN BANKING BERHAD |
MYR 4,000,000.00 |
Unsatisfied |
|
3 |
20/11/2012 |
N/A |
MAYBANK ISLAMIC BERHAD |
- |
Unsatisfied |
|
4 |
06/12/2012 |
MEMORANDUM OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND MUDHARABAH INVESTMENT
ACCOUNT AND NEGOTIABLE CERTIFICATE OF DEPOSIT AND LETTER OF SET-OFF |
MAYBANK ISLAMIC BERHAD |
MYR 2,000,000.00 |
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 |
[ |
] |
Average 61-90 Days |
[ |
X |
] |
|||||
|
Fair 91-120 Days |
[ |
] |
Poor >120 Days |
[ |
] |
|||||||||
CLIENTELE
|
|
Local |
: |
YES |
|||
|
Domestic Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
YES |
|||
|
Export Market |
: |
ASIA |
|||
|
Credit Term |
: |
N/A |
|||
|
Payment Mode |
: |
CHEQUES |
|||
OPERATIONS
|
|
Goods Traded |
: |
PALM OIL |
|
|
Total Number of Employees: |
|
||||||||
|
YEAR |
2015 |
2014 |
2013 |
2012 |
|||||
|
GROUP |
N/A |
N/A |
N/A |
N/A |
|||||
|
COMPANY |
10 |
5 |
5 |
5 |
|||||
|
Branch |
: |
NO |
Other Information:
The Subject is principally engaged in the (as a / as an) trading of palm oil.
The Subject deals with Palm Acid Oil, RDB Strearine, RBD Olien, RBD Palm Oil
and others.
The Subject sells the products according to its customers' requirements.
CURRENT INVESTIGATION
|
Latest fresh investigations
carried out on the Subject indicated that :
|
Telephone Number Provided By Client |
: |
N/A |
|
Current Telephone Number |
: |
07-6637682 |
|
Match |
: |
N/A |
|
Address Provided by Client |
: |
137A, JALAN SUSUR 3,81000,KULAI,JOHOR. |
|
Current Address |
: |
137A, JALAN SUSUR 3, 81000 KULAI, JOHOR,
MALAYSIA. |
|
Match |
: |
YES |
|
Latest Financial Accounts |
: |
YES |
Other Investigations
On 12th October 2015 we contacted one of the staff from the Subject and she provided
some information on the Subject.
|
Profitability |
||||||
|
Turnover |
: |
Erratic |
[ |
2009 - 2013 |
] |
|
|
Profit/(Loss) Before Tax |
: |
Increased |
[ |
2009 - 2013 |
] |
|
|
Return on Shareholder Funds |
: |
Unfavourable |
[ |
5.61% |
] |
|
|
Return on Net Assets |
: |
Favourable |
[ |
33.22% |
] |
|
|
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. The unfavourable return on
shareholders' funds could indicate that the Subject was inefficient in
utilising its assets to generate returns. |
||||||
|
Working Capital Control |
||||||
|
Stock Ratio |
: |
Favourable |
[ |
1 Days |
] |
|
|
Debtor Ratio |
: |
Favourable |
[ |
12 Days |
] |
|
|
Creditors Ratio |
: |
Favourable |
[ |
3 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 |
[ |
1.11 Times |
] |
|
|
Current Ratio |
: |
Unfavourable |
[ |
1.14 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 |
: |
Unfavourable |
[ |
1.71 Times |
] |
|
|
Gearing Ratio |
: |
Unfavourable |
[ |
2.78 Times |
] |
|
|
The Subject's interest cover was low. If
its profits fall or when interest rate rises, it may not be able to
meet all its interest payment. The Subject was highly geared, thus it had a high
financial risk. The Subject was dependent on loans to finance its business
needs. In times of economic downturn and / or high interest rate, the Subject
will become less profitable and competitive than other firms in the same
industry, which are lowly geared. This is because the Subject has to service
the interest and to repay the loan, which will erode part of its profits. The
profits will fluctuate depending on the Subject's turnover and the interest
it needs to pay. |
||||||
|
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. If there is a fall in the
Subject's profit or any increase in interest rate, the Subject may not be
able to generate sufficient cash-flow to service its interest. The Subject's
gearing level was high and its going concern will be in doubt if there is no
injection of additional shareholders' funds in times of economic downturn and
/ or high interest rates. |
||||||
|
Overall financial condition of the Subject
: POOR |
||||||
|
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 |
3.2 |
4.0 |
|
Unemployment Rate |
3.3 |
3.2 |
3.0 |
2.9 |
3.0 |
|
Net International Reserves ( MYR Billion ) |
415 |
427 |
- |
417 |
- |
|
Average Risk-Weighted Capital Adequacy
Ratio ( % ) |
3.50 |
2.20 |
- |
4.00 |
- |
|
Average 3 Months of Non-performing Loans (
% ) |
14.80 |
14.70 |
- |
- |
- |
|
Average Base Lending Rate ( % ) |
6.60 |
6.53 |
6.53 |
6.85 |
- |
|
Business Loans Disbursed( % ) |
15.3 |
32.2 |
- |
56.0 |
- |
|
Foreign Investment ( MYR Million ) |
23,546.1 |
26,230.4 |
38,238.0 |
43,486.6 |
- |
|
Consumer Loans ( % ) |
- |
- |
- |
- |
- |
|
Registration of New Companies ( No. ) |
45,455 |
45,441 |
46,321 |
49,144 |
- |
|
Registration of New Companies ( % ) |
3.0 |
(0.0) |
1.9 |
6.1 |
- |
|
Liquidation of Companies ( No. ) |
132,485 |
17,092 |
26,430 |
21,753 |
- |
|
Liquidation of Companies ( % ) |
417.8 |
(87.1) |
54.6 |
(17.7) |
- |
|
Registration of New Business ( No. ) |
284,598 |
324,761 |
329,895 |
332,723 |
- |
|
Registration of New Business ( % ) |
5.0 |
14.0 |
2.0 |
1.0 |
- |
|
Business Dissolved ( No. ) |
20,121 |
20,380 |
18,161 |
21,436 |
- |
|
Business Dissolved ( % ) |
1.9 |
1.3 |
(10.9) |
18.0 |
- |
|
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 |
63.2 |
- |
|
Credit Cards Spending ( % ) |
15.6 |
12.6 |
- |
13.5 |
- |
|
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) |
- |
- |
3.0 |
- |
|
Other Mining |
- |
- |
- |
46.6 |
- |
|
Industry Non-performing Loans ( MYR Million
) |
46.5 |
- |
- |
- |
- |
|
% of Industry Non-performing Loans |
0.1 |
- |
- |
- |
- |
|
Manufacturing # |
4.7 |
4.8 |
3.4 |
6.4 |
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 |
1.4 |
- |
|
Plastic Products |
3.8 |
- |
- |
2.7 |
- |
|
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 |
- |
- |
13.0 |
- |
|
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 |
|
|
|
|
|
|
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 |
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 |
FULL |
FULL |
|
Currency |
MYR |
MYR |
MYR |
MYR |
MYR |
|
TURNOVER |
94,233,230 |
62,357,338 |
67,632,116 |
80,060,412 |
86,744,688 |
|
Other Income |
114,370 |
447,443 |
295,993 |
103,728 |
68,030 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Total Turnover |
94,347,600 |
62,804,781 |
67,928,109 |
80,164,140 |
86,812,718 |
|
Costs of Goods Sold |
(92,021,439) |
(60,986,129) |
(66,353,549) |
(78,386,337) |
(84,998,229) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Gross Profit |
2,326,161 |
1,818,652 |
1,574,560 |
1,777,803 |
1,814,489 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) FROM OPERATIONS |
228,695 |
81,522 |
(110,813) |
(19,880) |
38,738 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) BEFORE TAXATION |
228,695 |
81,522 |
(110,813) |
(19,880) |
38,738 |
|
Taxation |
(137,616) |
(117,613) |
(41,451) |
(61,494) |
(57,792) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) AFTER TAXATION |
91,079 |
(36,091) |
(152,264) |
(81,374) |
(19,054) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD |
|||||
|
As previously reported |
11,532 |
47,623 |
199,887 |
281,261 |
300,315 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
As restated |
11,532 |
47,623 |
199,887 |
281,261 |
300,315 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
102,611 |
11,532 |
47,623 |
199,887 |
281,261 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
102,611 |
11,532 |
47,623 |
199,887 |
281,261 |
|
============= |
============= |
============= |
============= |
============= |
|
|
INTEREST EXPENSE (as per notes to P&L) |
|||||
|
Bank overdraft |
224,479 |
167,812 |
197,265 |
243,970 |
25,182 |
|
Fixed deposit |
47,753 |
24,814 |
- |
- |
- |
|
Hire purchase |
8,528 |
10,047 |
10,565 |
8,493 |
9,327 |
|
Others |
40,611 |
26,391 |
31,636 |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
321,371 |
229,064 |
239,466 |
252,463 |
34,509 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
DEPRECIATION (as per notes to P&L) |
75,553 |
144,283 |
161,122 |
151,681 |
180,751 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
75,553 |
144,283 |
161,122 |
151,681 |
180,751 |
|
|
============= |
============= |
============= |
============= |
============= |
|
ASSETS EMPLOYED: |
|||||
|
FIXED ASSETS |
808,315 |
797,068 |
773,429 |
829,095 |
874,866 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM ASSETS |
808,315 |
797,068 |
773,429 |
829,095 |
874,866 |
|
Stocks |
168,996 |
38,197 |
324,738 |
- |
- |
|
Trade debtors |
3,027,913 |
3,234,407 |
1,077,352 |
2,366,809 |
4,620,601 |
|
Other debtors, deposits & prepayments |
689,026 |
356,286 |
260,167 |
182,819 |
159,392 |
|
Short term deposits |
2,112,654 |
1,464,901 |
840,088 |
1,655,842 |
1,695,990 |
|
Amount due from related companies |
965,857 |
1,000,857 |
1,000,856 |
999,207 |
1,367,068 |
|
Amount due from director |
51,695 |
85,911 |
51,710 |
- |
- |
|
Cash & bank balances |
60,300 |
319,290 |
856,852 |
1,895,046 |
248,754 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT ASSETS |
7,076,441 |
6,499,849 |
4,411,763 |
7,099,723 |
8,091,805 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL ASSET |
7,884,756 |
7,296,917 |
5,185,192 |
7,928,818 |
8,966,671 |
|
============= |
============= |
============= |
============= |
============= |
|
|
CURRENT LIABILITIES |
|||||
|
Trade creditors |
774,627 |
2,163,577 |
911,310 |
1,906,864 |
2,752,438 |
|
Other creditors & accruals |
165,042 |
136,794 |
54,989 |
76,715 |
103,085 |
|
Hire purchase & lease creditors |
- |
53,897 |
80,607 |
113,931 |
456,310 |
|
Bank overdraft |
4,517,521 |
2,920,616 |
1,962,229 |
3,731,746 |
3,464,574 |
|
Amounts owing to related companies |
541,356 |
298,382 |
353,570 |
19,861 |
- |
|
Amounts owing to director |
139,355 |
139,355 |
670,387 |
636,750 |
539,372 |
|
Provision for taxation |
90,886 |
34,060 |
15,231 |
- |
- |
|
Other liabilities |
- |
- |
- |
62,306 |
149,282 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT LIABILITIES |
6,228,787 |
5,746,681 |
4,048,323 |
6,548,173 |
7,465,061 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
NET CURRENT ASSETS/(LIABILITIES) |
847,654 |
753,168 |
363,440 |
551,550 |
626,744 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL NET ASSETS |
1,655,969 |
1,550,236 |
1,136,869 |
1,380,645 |
1,501,610 |
|
============= |
============= |
============= |
============= |
============= |
|
|
SHARE CAPITAL |
|||||
|
Ordinary share capital |
1,520,000 |
1,520,000 |
1,020,000 |
1,020,000 |
1,020,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL SHARE CAPITAL |
1,520,000 |
1,520,000 |
1,020,000 |
1,020,000 |
1,020,000 |
|
Retained profit/(loss) carried forward |
102,611 |
11,532 |
47,623 |
199,887 |
281,261 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL RESERVES |
102,611 |
11,532 |
47,623 |
199,887 |
281,261 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
SHAREHOLDERS' FUNDS/EQUITY |
1,622,611 |
1,531,532 |
1,067,623 |
1,219,887 |
1,301,261 |
|
Hire purchase creditors |
- |
- |
53,897 |
134,504 |
178,786 |
|
Deferred taxation |
33,358 |
18,704 |
15,349 |
26,254 |
21,563 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM LIABILITIES |
33,358 |
18,704 |
69,246 |
160,758 |
200,349 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
1,655,969 |
1,550,236 |
1,136,869 |
1,380,645 |
1,501,610 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
TYPES OF FUNDS |
|||||
|
Cash |
2,172,954 |
1,784,191 |
1,696,940 |
3,550,888 |
1,944,744 |
|
Net Liquid Funds |
(2,344,567) |
(1,136,425) |
(265,289) |
(180,858) |
(1,519,830) |
|
Net Liquid Assets |
678,658 |
714,971 |
38,702 |
551,550 |
626,744 |
|
Net Current Assets/(Liabilities) |
847,654 |
753,168 |
363,440 |
551,550 |
626,744 |
|
Net Tangible Assets |
1,655,969 |
1,550,236 |
1,136,869 |
1,380,645 |
1,501,610 |
|
Net Monetary Assets |
645,300 |
696,267 |
(30,544) |
390,792 |
426,395 |
|
PROFIT & LOSS ITEMS |
|||||
|
Earnings Before Interest & Tax (EBIT) |
550,066 |
310,586 |
128,653 |
232,583 |
73,247 |
|
Earnings Before Interest, Taxes,
Depreciation And Amortization (EBITDA) |
625,619 |
454,869 |
289,775 |
384,264 |
253,998 |
|
BALANCE SHEET ITEMS |
|||||
|
Total Borrowings |
4,517,521 |
2,974,513 |
2,096,733 |
3,980,181 |
4,099,670 |
|
Total Liabilities |
6,262,145 |
5,765,385 |
4,117,569 |
6,708,931 |
7,665,410 |
|
Total Assets |
7,884,756 |
7,296,917 |
5,185,192 |
7,928,818 |
8,966,671 |
|
Net Assets |
1,655,969 |
1,550,236 |
1,136,869 |
1,380,645 |
1,501,610 |
|
Net Assets Backing |
1,622,611 |
1,531,532 |
1,067,623 |
1,219,887 |
1,301,261 |
|
Shareholders' Funds |
1,622,611 |
1,531,532 |
1,067,623 |
1,219,887 |
1,301,261 |
|
Total Share Capital |
1,520,000 |
1,520,000 |
1,020,000 |
1,020,000 |
1,020,000 |
|
Total Reserves |
102,611 |
11,532 |
47,623 |
199,887 |
281,261 |
|
LIQUIDITY (Times) |
|||||
|
Cash Ratio |
0.35 |
0.31 |
0.42 |
0.54 |
0.26 |
|
Liquid Ratio |
1.11 |
1.12 |
1.01 |
1.08 |
1.08 |
|
Current Ratio |
1.14 |
1.13 |
1.09 |
1.08 |
1.08 |
|
WORKING CAPITAL CONTROL (Days) |
|||||
|
Stock Ratio |
1 |
0 |
2 |
0 |
0 |
|
Debtors Ratio |
12 |
19 |
6 |
11 |
19 |
|
Creditors Ratio |
3 |
13 |
5 |
9 |
12 |
|
SOLVENCY RATIOS (Times) |
|||||
|
Gearing Ratio |
2.78 |
1.94 |
1.96 |
3.26 |
3.15 |
|
Liabilities Ratio |
3.86 |
3.76 |
3.86 |
5.50 |
5.89 |
|
Times Interest Earned Ratio |
1.71 |
1.36 |
0.54 |
0.92 |
2.12 |
|
Assets Backing Ratio |
1.09 |
1.02 |
1.11 |
1.35 |
1.47 |
|
PERFORMANCE RATIO (%) |
|||||
|
Operating Profit Margin |
0.24 |
0.13 |
(0.16) |
(0.02) |
0.04 |
|
Net Profit Margin |
0.10 |
(0.06) |
(0.23) |
(0.10) |
(0.02) |
|
Return On Net Assets |
33.22 |
20.03 |
11.32 |
16.85 |
4.88 |
|
Return On Capital Employed |
8.91 |
6.86 |
4.05 |
4.45 |
1.35 |
|
Return On Shareholders' Funds/Equity |
5.61 |
(2.36) |
(14.26) |
(6.67) |
(1.46) |
|
Dividend Pay Out Ratio (Times) |
0 |
0 |
0 |
0 |
0 |
|
NOTES TO ACCOUNTS |
|||||
|
Contingent Liabilities |
0 |
0 |
0 |
0 |
0 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.97 |
|
|
1 |
Rs.100.55 |
|
Euro |
1 |
Rs.73.99 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
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.