MIRA INFORM REPORT

Report No. :	506187
Report Date :	25.04.2018

IDENTIFICATION DETAILS

Name :	NATURAL OLEOCHEMICALS SDN. BHD.
Formerly Known As :	NALIN CHEMICALS SDN BHD (26/06/1992) SEGAMAT KERNEL OIL MILL SDN BHD (26/10/1989)
Registered Office :	12th Floor, UBN Tower, 10, Jalan P. Ramlee, 50250 Kuala Lumpur, Wilayah Persekutuan
Country :	Malaysia
Financials (as on) :	31.12.2016
Date of Incorporation :	28.01.1986
Com. Reg. No.:	150005-U
Legal Form :	Private Limited (Limited By Share)
Line of Business :	The subject is principally engaged in the manufacturing of oleochemicals products.
No. of Employees :	450 [2017]

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Malaysia	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

MALAYSIA - ECONOMIC OVERVIEW

Malaysia, an upper middle-income country, has transformed itself since the 1970s from a producer of raw materials into a multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move further up the value-added production chain by attracting investments in high technology, knowledge-based industries and services. NAJIB's Economic Transformation Program 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. Domestic demand continues to anchor economic growth, supported mainly by private consumption, which accounts for 53% of GDP. Nevertheless, exports - particularly of electronics, oil and gas, and palm oil - remain a significant driver of the economy. In 2015, gross exports of goods and services were equivalent to 73% of GDP. The oil and gas sector supplied about 22% of government revenue in 2015, down significantly from prior years amid a decline in commodity prices and diversification of government revenues. Malaysia has embarked on a fiscal reform program aimed at achieving a balanced budget by 2020, including rationalization of subsidies and the 2015 introduction of a 6% value added tax. Sustained low commodity prices throughout the period not only strained government finances, but also shrunk Malaysia’s current account surplus and weighed heavily on the Malaysian ringgit, which was among the region’s worst performing currencies during 2015. The ringgit rebounded in early 2016, but hit new lows following the US presidential election amid a broader selloff of emerging market assets.

Bank Negara Malaysia (the central bank) maintains adequate foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments, although it remains vulnerable to volatile global capital flows. In order to increase Malaysia’s competitiveness, Prime Minister 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, policies that favor and advance the economic condition of ethnic Malays.

Malaysia signed the 12-nation Trans-Pacific Partnership (TPP) free trade agreement in February 2016, although the future of the TPP remains unclear following the US withdrawal from the agreement. Along with nine other ASEAN members, Malaysia established the ASEAN Economic Community in 2015, which aims to advance regional economic integration.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.

:

150005-U

COMPANY NAME

:

NATURAL OLEOCHEMICALS SDN. BHD.

FORMER NAME

:

NALIN CHEMICALS SDN BHD (26/06/1992)
SEGAMAT KERNEL OIL MILL SDN BHD (26/10/1989)

INCORPORATION DATE

:

28/01/1986

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

12TH FLOOR, UBN TOWER, 10, JALAN P. RAMLEE, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

PLO 428, JALAN BESI SATU, PASIR GUDANG INDUSTRIAL ESTATE, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2533888

FAX.NO.

:

07-2511614

CONTACT PERSON

:

YEE CHEK TOONG ( DIRECTOR )

INDUSTRY CODE

:

20

PRINCIPAL ACTIVITY

:

MANUFACTURING OF OLEOCHEMICALS PRODUCTS

AUTHORISED CAPITAL

:

MYR 500,000,000.00 DIVIDED INTO 
ORDINARY SHARE 500,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 204,160,000.00 DIVIDED INTO 
ORDINARY SHARES 200,910,000 CASH AND 3,250,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 2,034,509,000 [2016]

NET WORTH

:

MYR 478,668,000 [2016]

M1000 OVERALL RANKING

:

333[2011]

M1000 INDUSTRY RANKING

:

16[2011]

STAFF STRENGTH

:

450 [2017]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

REGULAR

MANAGEMENT CAPABILITY

:

GOOD

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MARGINAL 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 shall have a minimum one director. 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 oleochemicals products.

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

According to the Malaysia 1000 publication, the Subject's ranking are as follows:
YEAR	2011	2009	2008	2005	2004
OVERALL RANKING	333	295	377	563	626
INDUSTRY RANKING	16	16	22	29	26

The immediate holding company of the Subject is PGEO GROUP SDN. BHD., a company incorporated in MALAYSIA.

The ultimate holding company of the Subject is WILMAR INTERNATIONAL LIMITED, a company incorporated in SINGAPORE.

Former Address(es)

Address	As At Date
17TH FLOOR, WISMA JERNEH, 38, JALAN SULTAN ISMAIL, 50250, WILAYAH PERSEKUTUAN, MALAYSIA	03/01/2012
17TH FLOOR, UMBC BUILDING, JALAN SULTAN ISMAIL, 50000, WILAYAH PERSEKUTUAN, MALAYSIA	03/06/1992
30, JALAN TELAWI, BANGSAR BARU, 59100, WILAYAH PERSEKUTUAN, MALAYSIA	07/07/1987
12-02, 12TH FLOOR, BANGUNA MING, JALAN BUKIT NANAS, 50250, WILAYAH PERSEKUTUAN, MALAYSIA	07/07/1988
17TH FLOOR, WISMA ACE JEMEH, 38, JALAN SULTAN ISMAIL, 50250, WILAYAH PERSEKUTUAN, MALAYSIA	12/08/2012
13TH FLOOR, MENARA JOHOR CORPORATION, KOTARAYA,JOHOR, 80000, JOHOR, MALAYSIA	15/02/2013
PLO 428,JALAN BESI SATU, PASIR GUDANG,JOHOR, 81700, JOHOR, MALAYSIA	15/02/2013
LEVEL 2, PERSADA JOHOR INTERNATIONAL CONVENTION CENTRE, JALAN ABDULLAH IBRAHIM, 80000, JOHOR, MALAYSIA	23/09/2010
13TH FLOOR, MENARA JOHOR CORPORATON, KOTARAYA, 80000, JOHOR, MALAYSIA	30/11/2008
PLO 428, JALAN BESI SATU, PASIR GUDANG INDUSTRIAL ESTATE, 81700, JOHOR, MALAYSIA	31/03/2004

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
08/10/2007	MYR 500,000,000.00	MYR 204,160,000.00
14/08/1995	MYR 100,000,000.00	MYR 51,040,000.00
19/01/1993	MYR 30,000,000.00	MYR 21,600,000.00
11/08/1992	MYR 30,000,000.00	MYR 21,300,002.00
20/02/1992	MYR 25,000,000.00	MYR 18,030,002.00
04/06/1991	MYR 25,000,000.00	MYR 16,000,002.00
08/02/1991	MYR 25,000,000.00	MYR 9,500,002.00
08/10/1990	MYR 25,000,000.00	MYR 9,000,002.00
10/08/1990	MYR 25,000,000.00	MYR 3,000,002.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
PGEO GROUP SDN. BHD.	PLO 338, JALAN TEMBAGA DUA, KAWASAN PERINDUSTRIAN, PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.	515792H	204,160,000.00	100.00
			---------------	------
			204,160,000.00	100.00
			============	=====

+ Also Director

Former Shareholder(s) :

Name	Country	IC/PP/Loc No	Shareholding	Last Updated
KULIM (MALAYSIA) BERHAD	MALAYSIA	23370V	N/A	24/01/2017
NATIONAL LAND FINANCE CO-OPERATIVE SOCIETY LIMITED	MALAYSIA	000000019&n	N/A	24/01/2017

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

Local No	Country	Company	Status	(%)	As At
337789K	MALAYSIA	DUBOIS-NATURAL ESTERS SDN. BHD.	-	55.00	02/10/2017
419384M	MALAYSIA	NATURAL SOAPS SDN. BHD.	-	100.00	02/10/2017
742366H	MALAYSIA	NATURAL WAX SDN. BHD.	-	60.00	02/10/2017

DIRECTORS

DIRECTOR 1

Name Of Subject	:	RAHUL KALE
Address	:	40, NASSIM HILL, 07-42, 258474, SINGAPORE.
IC / PP No	:	E4650464H
Date of Appointment	:	23/09/2010

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	337789K	DUBOIS-NATURAL ESTERS SDN. BHD.	Director	23/09/2010	0.00	-	MYR7,147,111.00	2016	-	23/10/2017
2	150005U	NATURAL OLEOCHEMICALS SDN. BHD.	Director	23/09/2010	0.00	-	MYR122,510,000.00	2016	-	23/10/2017
3	419384M	NATURAL SOAPS SDN. BHD.	Director	23/09/2010	0.00	-	MYR5,334,139.00	2016	-	23/10/2017
4	742366H	NATURAL WAX SDN. BHD.	Director	23/09/2010	0.00	-	MYR34,356.00	2016	-	23/10/2017

DIRECTOR 2

Name Of Subject	:	MS. LIM YEE MEIN
Address	:	64, JALAN CAMAR LAPAN, TAMAN PERLING, 81200 JOHOR BAHRU, JOHOR, MALAYSIA.
New IC No	:	570930-01-5642
Date of Birth	:	30/09/1957
Nationality	:	MALAYSIAN
Date of Appointment	:	23/09/2010

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	see below

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	188264X	BINTULU EDIBLE OILS SDN. BHD.	Director	03/03/2004	0.00	-	MYR108,521,075.00	2016	-	23/10/2017
2	337789K	DUBOIS-NATURAL ESTERS SDN. BHD.	Director	05/10/2010	0.00	-	MYR7,147,111.00	2016	-	23/10/2017
3	114866D	FEDRUMS SDN. BHD.	Director	31/12/2007	0.00	-	MYR458,779.00	2016	-	23/10/2017
4	207989T	LAHAD DATU EDIBLE OILS SDN. BHD.	Director	04/05/2007	0.00	-	MYR16,006,000.00	2016	-	23/10/2017
5	185758D	MAYTOWN SDN. BHD.	Director	21/10/2004	0.00	-	MYR9,044,011.00	2016	-	23/10/2017
6	149833M	MINSEC ENGINEERING SERVICES SDN.BHD.	Director	26/11/2010	0.00	-	MYR2,819,137.00	2016	-	23/10/2017
7	150005U	NATURAL OLEOCHEMICALS SDN. BHD.	Director	23/09/2010	0.00	-	MYR122,510,000.00	2016	-	23/10/2017
8	742367T	NEXSOL (MALAYSIA) SDN. BHD.	Director	03/12/2014	0.00	-	MYR(719,613.00)	2016	-	23/10/2017
9	598647U	ORISATIN SDN. BHD.	Director	01/09/2007	0.00	-	MYR61,404.00	2007	Disolved by Member Voluntary	23/10/2017
10	221400U	P G BUNKERING SERVICES SDN. BHD.	Director	26/11/2013	0.00	-	MYR(178,382.00)	2016	-	23/10/2017
11	708803T	PGEO BIOPRODUCTS SDN. BHD.	Director	20/09/2005	0.00	-	MYR2,505,412.00	2016	-	23/10/2017
12	1076455P	PGEO BIOTECH SDN. BHD.	Director	07/04/2014	0.00	-	MYR(2,093,707.00)	2016	-	23/10/2017
13	14202V	PGEO EDIBLE OILS SDN. BHD.	Director	15/01/2003	0.00	-	MYR46,819,149.00	2016	-	23/10/2017
14	700894T	PGEO ENERGY SDN. BHD.	Director	24/06/2005	0.00	-	MYR2,195,027.00	2016	-	23/10/2017
15	515792H	PGEO GROUP SDN. BHD.	Director	11/08/2003	0.00	-	MYR365,788,000.00	2016	-	23/10/2017
16	730681D	PGEO MARKETING SDN. BHD.	Director	19/04/2006	0.00	-	MYR(4,871,156.00)	2016	-	23/10/2017
17	653017V	PGEO OIL MILL SDN. BHD.	Director	01/09/2005	0.00	-	MYR6,217,930.00	2016	-	23/10/2017
18	156983K	SANDAKAN EDIBLE OILS SDN. BHD.	Director	01/01/2002	0.00	-	MYR30,072,895.00	2016	-	23/10/2017
19	733223U	SANDAKAN SPECIALTY FATS SDN. BHD.	Director	09/06/2006	0.00	-	MYR2,868,705.00	2016	-	23/10/2017
20	700949V	SEO ENERGY SDN. BHD.	Director	24/06/2005	0.00	-	MYR2,173,431.00	2016	-	23/10/2017
21	623599M	VOLAC WILMAR FEED INGREDIENTS SDN. BHD.	Director	31/07/2003	0.00	-	MYR4,464,717.00	2016	-	23/10/2017
22	10472U	WILMAR BULKING INSTALLATION SDN. BHD.	Director	30/03/2015	0.00	-	MYR135,172.00	2015	-	23/10/2017
23	28300A	WILMAR EDIBLE OILS SDN. BHD.	Director	15/03/2016	0.00	-	MYR20,355,724.00	2016	-	23/10/2017
24	673089A	WILMAR FERTILIZER MALAYSIA SDN. BHD.	Director	01/09/2015	0.00	-	MYR(7,016,324.00)	2015	-	23/10/2017
25	1028732M	WILMAR GBS SDN. BHD.	Director	31/03/2015	0.00	-	MYR751,797.00	2016	-	23/10/2017
26	317354A	WILMAR HOLDINGS SDN. BHD.	Director	11/03/2010	0.00	-	MYR18,631,712.00	2016	-	23/10/2017
27	1034263K	WILMAR KUANTAN EDIBLE OILS SDN. BHD.	Director	01/04/2013	0.00	-	MYR(8,612.00)	2016	-	23/10/2017
28	214653X	WILMAR TANK TERMINALS SDN. BHD.	Director	26/11/2013	0.00	-	MYR1,761,301.00	2016	-	23/10/2017
29	728477A	ZELMAC RESOURCES SDN. BHD.	Director	09/05/2006	1.00	50.00	-	-	-	23/10/2017

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	646870T	LDEO ENERGY SDN. BHD.	Director	20/06/2005	30/11/2005	-	-

DIRECTOR 3

Name Of Subject	:	MR. YEE CHEK TOONG
Address	:	1, JALAN AUSTIN HEIGHTS 2/11, TAMAN MOUNT AUSTIN, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.
Other Address(es)	:	BLK A,UNIT 6-1, STULANG VIEW CONDO, TMN PELANGI;80400 J.BAHRU, MALAYSIA.
IC / PP No	:	5192922
New IC No	:	570704-01-6583
Nationality	:	MALAYSIAN
Date of Appointment	:	23/09/2010

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	see below

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	188264X	BINTULU EDIBLE OILS SDN. BHD.	Director	11/06/1999	0.00	-	MYR108,521,075.00	2016	-	23/10/2017
2	337789K	DUBOIS-NATURAL ESTERS SDN. BHD.	Director	23/09/2010	0.00	-	MYR7,147,111.00	2016	-	23/10/2017
3	207989T	LAHAD DATU EDIBLE OILS SDN. BHD.	Director	01/08/1998	0.00	-	MYR16,006,000.00	2016	-	23/10/2017
4	646870T	LDEO ENERGY SDN. BHD.	Director	29/11/2005	0.00	-	MYR1,676,327.00	2016	-	23/10/2017
5	185758D	MAYTOWN SDN. BHD.	Director	01/08/1998	0.00	-	MYR9,044,011.00	2016	-	23/10/2017
6	149833M	MINSEC ENGINEERING SERVICES SDN.BHD.	Director	26/11/2010	0.00	-	MYR2,819,137.00	2016	-	23/10/2017
7	150005U	NATURAL OLEOCHEMICALS SDN. BHD.	Director	23/09/2010	0.00	-	MYR122,510,000.00	2016	-	23/10/2017
8	419384M	NATURAL SOAPS SDN. BHD.	Director	23/09/2010	0.00	-	MYR5,334,139.00	2016	-	23/10/2017
9	742366H	NATURAL WAX SDN. BHD.	Director	23/09/2010	0.00	-	MYR34,356.00	2016	-	23/10/2017
10	221400U	P G BUNKERING SERVICES SDN. BHD.	Director	26/11/2013	0.00	-	MYR(178,382.00)	2016	-	23/10/2017
11	14202V	PGEO EDIBLE OILS SDN. BHD.	Director	23/02/1994	0.00	-	MYR46,819,149.00	2016	-	23/10/2017
12	515792H	PGEO GROUP SDN. BHD.	Director	23/12/2000	0.00	-	MYR365,788,000.00	2016	-	23/10/2017
13	730681D	PGEO MARKETING SDN. BHD.	Director	08/05/2006	0.00	-	MYR(4,871,156.00)	2016	-	23/10/2017
14	156983K	SANDAKAN EDIBLE OILS SDN. BHD.	Director	15/05/2001	0.00	-	MYR30,072,895.00	2016	-	23/10/2017
15	632894V	TSH-WILMAR (BF) SDN. BHD.	Director	13/07/2009	0.00	-	MYR4,575,495.00	2016	-	23/10/2017
16	268555U	TSH-WILMAR SDN. BHD.	Director	13/07/2009	0.00	-	MYR18,701,751.00	2016	-	23/10/2017
17	10472U	WILMAR BULKING INSTALLATION SDN. BHD.	Director	11/03/2010	0.00	-	MYR135,172.00	2015	-	23/10/2017
18	28300A	WILMAR EDIBLE OILS SDN. BHD.	Director	16/03/2010	0.00	-	MYR20,355,724.00	2016	-	23/10/2017
19	673089A	WILMAR FERTILIZER MALAYSIA SDN. BHD.	Director	01/09/2015	0.00	-	MYR(7,016,324.00)	2015	-	23/10/2017
20	317354A	WILMAR HOLDINGS SDN. BHD.	Director	31/12/2007	0.00	-	MYR18,631,712.00	2016	-	23/10/2017
21	214653X	WILMAR TANK TERMINALS SDN. BHD.	Director	26/11/2013	0.00	-	MYR1,761,301.00	2016	-	23/10/2017

FORMER INTEREST

No	Local No	Company	Designation	App Date	Withdrawn Date	Shareholding	Status
1	114866D	FEDRUMS SDN. BHD.	Director	01/08/2000	31/07/2017	-	-
2	4878K	FFM BERHAD	Director	22/10/2004	27/04/2007	-	-
3	180433A	FFM MARKETING SDN. BHD.	Director	04/08/2005	13/04/2007	-	-
4	11923H	JOHOR BAHRU FLOUR MILL SDN.BHD.	Director	04/08/2005	13/04/2007	-	-
5	376090W	PPB OIL PALMS BERHAD	Director	01/08/2004	02/07/2007	-	-
6	623599M	VOLAC WILMAR FEED INGREDIENTS SDN. BHD.	Director	28/11/2003	24/06/2016	-	-

FORMER DIRECTOR(S)

Name	Address	IC/PP No	Appointed Date	Withdrawn Date
WONG SENG LEE	NO. 12, JALAN REDANG 1/4, TAMAN REDANG, JOHOR BAHRU, JOHOR, MALAYSIA	500515-01-5123	20/07/1994	24/09/2010
ZULKIFLI BIN IBRAHIM	4,JALAN LAYANG-LAYANG, LARKIN JAYA, JOHOR., JOHOR BAHRU, JOHOR, MALAYSIA	580723-02-5513	01/01/2007	24/09/2010
SHAMSUDIN BIN A. GHANI	108 JALAN JASMIN 8, TAMAN JASMIN, SELANGOR	590927-05-5203	15/08/1999	12/01/2001
KAMARUZZAMAN BIN ABU KASSIM	NO. 334, JALAN SENTOSA, KAMPUNG DATO`ONN, JOHOR BAHRU, JOHOR, MALAYSIA	640228-01-5045	01/01/1999	15/08/1999
MUHAMMAD ALI BIN HJ HASHIM	MUTIARA TIRAM, ULU TIRAM ESTATE,K.B.705, JOHOR BAHRU., JOHOR BAHRU, JOHOR, MALAYSIA	470419-01-5233	20/07/1994	27/01/1998
MD RIDZUAN BIN HAJI MD TAIB	NO. 21 JALAN INTAN TIGA, TAMAN INTAN, KLUANG, JOHOR, MALAYSIA	520526-04-5289	01/10/1999	01/01/2002
K R SOMASUNAM S/O K S RATHINASAMY PILLAI Y.B. DATO'	NO. 2,, JALAN 12/21A, PETALING JAYA, SELANGOR, MALAYSIA	2938019	20/07/1994	27/09/2010
IZHAR BIN MAHMOOD	LADANG ULU TIRAM, K.B 705, JOHOR BAHRU, JOHOR, MALAYSIA	540401-01-6191	01/01/2009	24/09/2010
JOHARI BIN HAJI MOHAMED	NO. 31, JALAN PADI HUMA 2, BANDAR BARU UDA, JOHOR BAHRU, JOHOR, MALAYSIA	460222-01-5505	01/01/1999	01/01/2009
JAMALUDIN BIN MD ALI	NO. 83, LORONG ZAABA, TAMAN TUN DR ISMAIL MALAYSIA, KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA	581204-01-5297	01/01/2002	15/08/2006
HARIS BIN A.HAMID	A-15-7,CONDO.SRI TTDI, TAMAN TUN DR ISMAIL, K.LUMPUR, KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA	521202-01-5299	24/08/1994	27/07/1998
AHMAD BIN IBRAHIM	34, JALAN IS 5, LEMBAH JAYA, AMPANG, SELANGOR, MALAYSIA	480807-03-5251	01/01/2004	01/01/2005
CHAN YOON FATT	27,JALAN PERMAS 6/22, PERMAS JAYA, MASAI, JOHOR, MALAYSIA	540901-02-5641	01/01/2005	11/07/2005
GEORGE JOSEPH	BLOK A,UNIT 02-03 ALOHA TOWERS CONDO, JALAN KOLAM AIR, J/BAHRU	9011610	01/01/2005	11/07/2005
FAUZIAH BINTI JOHARI	NO.8, LORONG MAKMUR, KG MELAYU MAJIDI, JOHOR BAHRU, JOHOR, MALAYSIA	630627-71-5074	01/01/2005	15/08/2006
ABDUL RAHMAN B SULAIMAN	RUMAH PENGURUS, KILANG KELAPA SAWIT KULIM, ULU TIRAM, ULU TIRAM, JOHOR, MALAYSIA	580809-01-5025	01/01/2006	24/09/2010
DR SANJEEV KRISHNAN CHAUDHRY	NO. 21, CELEBRITY HOMES, PALAM VIHAR GURGAON, NATIONAL CAPITAL REGION, INDIA 122017	H668698	20/07/1994	24/09/2010
AHAMAD BIN MOHAMAD	ULU TIRAM ESTATE KB 705, JOHOR BAHRU, JOHOR, JOHOR BAHRU, JOHOR, MALAYSIA	531125-01-5859	20/07/1994	24/09/2010

Note : The above information was generated from our database.

MANAGEMENT

1)	Name of Subject	:	YEE CHEK TOONG
	Position	:	DIRECTOR

AUDITOR

Auditor	:	ERNST & YOUNG
Auditor' Address	:	SUITE 11.2, LEVEL 11, MENARA PELANGI, 2, JALAN KUNING, TAMAN PELANGI, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MR. MAH TECK KEONG
	IC / PP No	:	6940054
	New IC No	:	620920-10-6607
	Address	:	21, PERSIARAN SYED PUTRA, 50460 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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	04/10/1990	DEBENTURE	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 40,000,000.00	Satisfied
2	18/07/1991	FACILITY AGREEMENT	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 40,000,000.00	Satisfied
2A	17/01/1992	FIXED CHARGE	ARAB-MALAYSIAN MERCHANT BANK BERHAD	MYR 40,000,000.00	Unsatisfied
3	24/08/1993	FACILITIES AGREEMENT	ARABMALAYSIAN MERCHANT BANK BERHAD	MYR 40,000,000.00	Satisfied
4	29/03/2005	N/A	HSBC BANK MALAYSIA BERHAD	MYR 20,000,000.00	Satisfied

LITIGATION CHECK - SUBJECT COMPANY AS A DEFENDANT

* 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
Overseas	:	YES

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	:	YES	Percentage	:	50%
Domestic Markets	:	MALAYSIA
Overseas	:	YES	Percentage	:	50%
Export Market	:	ASIA AUSTRALIA
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CHEQUES LETTER OF CREDIT (LC) TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

OLEOCHEMICALS PRODUCTS

Product Brand Name

:

NATOLEO, NATURAOIL, NATUROL

Award

:

1 ) HACCP Year :2004
2 ) MS ISO 9001 : 2000 Year :1995

Competitor(s)

:

HANWHA CHEMICAL MALAYSIA SDN. BHD.
HUNTSMAN P & A ASIA SDN. BHD.
IOI PAN-CENTURY OLEOCHEMICALS SDN. BHD.
LOTTE CHEMICAL TITAN HOLDING BERHAD
VANCE BIOENERGY SDN. BHD.

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2017	2016	2015	2013	2012
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	450	400	330	325	500

Branch

:

YES

Other Information:

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

The Subject produces a wide range of products including distilled fatty acids, fractionated fatty acids, palmitic acids soap blends, stearic acids, esters, glycerine and other products.

We were informed that the Subject's production site is equipped with various facilities as follows:- 

* Five High-Pressure Splitter units
* Five Multistage Fractionation units
* Two Hydrogenation units
* Three Glycerine Refining units
* Three Esters Reactor units
* Three Flaker units
* Five Automatic Drum Filing Lines
* Two Warehouses
* Fully Stainless Steel Tank Farm
* Road Tanker and Isotank Loading bays

The Subject manufacture the products based on the customers' requirements.

The Subject also provides transport services to its customers based on the orders and requirements.

The Subject belongs to the PGEO Group of companies. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	607- 2688222
Current Telephone Number	:	07-2533888
Match	:	NO
Address Provided by Client	:	PLO 338, JALAN TEMBAGA DUA, P.O. BOX 80, 81707 PASIR GUDANG JOHOR
Current Address	:	PLO 428, JALAN BESI SATU, PASIR GUDANG INDUSTRIAL ESTATE, 81700 PASIR GUDANG, JOHOR, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

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

The contact number provided is not answered.

The address provided belongs to the Subject's related company PGEO Group Sdn Bhd.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2012 - 2016	]
Profit/(Loss) Before Tax	:	Increased	[	2012 - 2016	]
Return on Shareholder Funds	:	Acceptable	[	25.59%	]
Return on Net Assets	:	Favourable	[	32.45%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.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	:	Acceptable	[	60 Days	]
Debtor Ratio	:	Favourable	[	50 Days	]
Creditors Ratio	:	Favourable	[	2 Days	]
The Subject kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. 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	:	Acceptable	[	0.88 Times	]
Current Ratio	:	Unfavourable	[	1.44 Times	]
The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Favourable	[	48.05 Times	]
Gearing Ratio	:	Acceptable	[	0.80 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's gearing was slightly high. The Subject is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the Subject. It will be more vulnerable in times of economy downturn.
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's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all 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's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the Subject's performance may deteriorate in the coming year.
Overall financial condition of the Subject : STABLE

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2013	2014	2015	2016*	2017**
Population ( Million)	29.8	30.0	31.0	31.7	32.1
Gross Domestic Products ( % )	5.3	6.0	4.6	4.9	4.2
Domestic Demand ( % )	5.6	6.4	6.2	6.3	-
Private Expenditure ( % )	8.6	7.9	6.9	7.4	-
Consumption ( % )	5.7	6.5	6.1	5.1	-
Investment ( % )	13.3	12.0	8.1	10.0	12.0
Public Expenditure ( % )	4.4	2.3	4.2	3.3	-
Consumption ( % )	(1.2)	2.1	4.3	2.0	-
Investment ( % )	4.2	2.6	(1.0)	1.1	-
Balance of Trade ( MYR Million )	71,298	82,480	91,577	52,206	-
Government Finance ( MYR Million )	(38,584)	(37,414)	(37,194)	(38,727)	(40,344)
Government Finance to GDP / Fiscal Deficit ( % )	(3.8)	(3.4)	(3.2)	(3.1)	(3.0)
Inflation ( % Change in Composite CPI)	2.5	3.2	4.0	-	-
Unemployment Rate	3.0	2.9	3.1	3.7	3.8
Net International Reserves ( MYR Billion )	422	417	390	391	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	3.10	4.00	3.50	-	-
Average 3 Months of Non-performing Loans ( % )	2.00	2.10	2.00	1.90	-
Average Base Lending Rate ( % )	6.53	6.85	6.79	6.81	-
Business Loans Disbursed( % )	(1.0)	18.6	2.2	-	-
Foreign Investment ( MYR Million )	38,238.0	43,486.6	43,435.0	-	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	46,321	49,203	45,658	43,255	-
Registration of New Companies ( % )	1.9	6.1	(7.2)	(5.3)	-
Liquidation of Companies ( No. )	13,788	11,099	7,066	-	-
Liquidation of Companies ( % )	(15.4)	(19.5)	(36.3)	-	-
Registration of New Business ( No. )	329,895	332,723	364,230	376,720	-
Registration of New Business ( % )	2.0	1.0	9.0	3.0	-
Business Dissolved ( No. )	18,161	21,436	-	-	-
Business Dissolved ( % )	(10.9)	18.0	-	-	-
Sales of New Passenger Cars (' 000 Unit )	576.7	598.4	591.3	464.4	527.8
Cellular Phone Subscribers ( Million )	43.0	44.0	44.2	44.0	-
Tourist Arrival ( Million Persons )	25.72	27.40	25.70	30.20	30.10
Hotel Occupancy Rate ( % )	62.6	63.6	58.8	61.2	-
Credit Cards Spending ( % )	6.0	5.8	6.8	6.3	-
Bad Cheque Offenders (No.)	28,876	-	-	-	-
Individual Bankruptcy ( No.)	21,984	22,351	18,457	-	-
Individual Bankruptcy ( % )	12.3	1.7	(17.4)	-	-

INDUSTRIES ( % of Growth ):	2013	2014	2015	2016*	2017**
Agriculture	2.0	2.1	1.2	(3.3)	1.5
Palm Oil	2.6	6.7	7.0	8.2	-
Rubber	(10.1)	(10.4)	(11.0)	(12.3)	-
Forestry & Logging	(7.8)	(4.2)	(7.2)	(4.8)	-
Fishing	1.6	2.7	2.1	2.9	-
Other Agriculture	8.2	6.2	6.0	6.8	-
Industry Non-Performing Loans ( MYR Million )	314.9	303.8	343.7	420.3	-
% of Industry Non-Performing Loans	1.4	1.4	1.5	1.8	-
Mining	1.2	3.5	4.7	1.1	1.4
Oil & Gas	2.0	3.0	3.5	4.5	-
Other Mining	47.6	46.6	47.1	42.6	-
Industry Non-performing Loans ( MYR Million )	152.7	63.5	180.1	190.0	-
% of Industry Non-performing Loans	0.7	0.3	0.8	0.8	-
Manufacturing #	3.4	6.2	4.9	4.0	4.1
Exported-oriented Industries	3.3	5.6	4.8	4.7	-
Electrical & Electronics	6.9	11.8	9.2	7.0	-
Rubber Products	11.7	(1.3)	5.1	3.9	-
Wood Products	(2.7)	7.8	7.0	7.0	-
Textiles & Apparel	(2.6)	10.8	7.5	6.7	-
Domestic-oriented Industries	5.9	7.7	4.7	3.0	-
Food, Beverages & Tobacco	3.6	6.1	8.9	7.5	-
Chemical & Chemical Products	5.6	1.4	3.5	5.1	-
Plastic Products	3.4	2.7	3.9	5.1	-
Iron & Steel	5.0	2.8	1.6	2.2	-
Fabricated Metal Products	9.9	2.8	4.6	5.1	-
Non-metallic Mineral	(2.0)	6.9	6.8	5.5	-
Transport Equipment	13.8	14.4	5.2	(3.1)	-
Paper & Paper Products	1.8	4.7	3.2	3.9	-
Crude Oil Refineries	11.8	13.0	14.3	13.7	-
Industry Non-Performing Loans ( MYR Million )	6,165.3	5,730.8	4,243.7	4,214.1	-
% of Industry Non-Performing Loans	27.2	25.6	19.0	18.5	-
Construction	10.6	11.7	8.2	8.7	8.3
Industry Non-Performing Loans ( MYR Million )	1,658.2	1,666.4	1,638.0	1,793.9	-
% of Industry Non-Performing Loans	7.3	7.5	7.3	7.9	-
Services	5.9	6.6	5.1	5.6	5.7
Electric, Gas & Water	4.4	3.8	3.5	5.9	5.0
Transport, Storage & Communication	7.30	7.50	7.55	7.55	7.70
Wholesale, Retail, Hotel & Restaurant	6.3	8.9	6.9	6.2	6.7
Finance, Insurance & Real Estate	3.7	4.7	4.3	6.6	-
Government Services	7.4	6.2	4.0	6.5	4.5
Other Services	5.6	4.8	4.7	4.6	5.3
Industry Non-Performing Loans ( MYR Million )	5,084.6	5,373.5	6,806.6	7,190.6	-
% of Industry Non-Performing Loans	22.5	24.1	30.5	31.5	-
* Estimate / Preliminary
** Forecast
# Based On Manufacturing Production Index

INDUSTRY ANALYSIS

MSIC CODE
20 : MANUFACTURE OF CHEMICALS AND CHEMICAL PRODUCTS
INDUSTRY :	MANUFACTURING
The manufacturing sector is expected to grow by 4.3% in 2015. Export-oriented industries are expected to benefit from higher demand as a result of improving growth in advanced economies, while domestic-oriented industries will be boosted by resilient domestic economic activities. The resource-based industry is envisaged to grow steadily attributed to improved demand for chemical, petroleum, rubber, wood and plastic products. In addition, strong construction activities following the implementation of infrastructure projects under the 11MP will augur well for growth in iron and steel as well as cement segments.
In first six months of 2015, the sector expanded at a slower pace of 4.9%. Output of the sector moderated to 4.8% while the sales value of manufactured products grew marginally by 0.1% to RM379.9 billion during the first seven months of 2015. Output from export-oriented industries also increased at a slower pace of 5.3% due to weaker global demand. The manufacturing sector continued to attract domestic and foreign investments, with projects approved by the Malaysian Investment Development Authority (MIDA) valued at RM49.5 billion for the first six months of 2015.
Besides that, production of wood and wood products rose by 7.1% largely supported by higher demand for wooden and cane furniture as well as particleboard and fibreboard with output up by 6.5% and 35.4%, respectively. The overall positive performance of the wood products sub-sector was attributed to higher demand from the US, Singapore and Australia. Output of rubber products rebounded to 3.4%, mainly due to higher output of rubber gloves and rubber tires for vehicles. The rubber-based industry stands to benefit from the strengthening US dollar, as most of the input costs are in ringgit while sales are in US dollar.
Exports of manufactured goods decreased by 3% due to the high base effect during the corresponding period in year 2014. Although, a weak ringgit should have bolstered exports, however, softened by weak external demand coupled with the depreciation in regional currencies during the period. During the first eight months of 2015, the slower expansion in E&E exports and weaker earnings from the non-E&E segment weighed down the overall exports of manufactured goods. Receipts from chemicals and chemical products continued to grow, albeit at a slower pace of 5.7%, mainly due to a slack in the demand for organic chemical products (-3.5%) as major markets. However, the overall growth in the sub-sector was supported by higher exports of plastics in primary form.
In addition, export earnings of wood products remained high at RM9.8 billion during the first eight months of 2015, it supported by strong demand for wooden furniture. demand for veneer and plywood, contracted by 7.4% following lower demand mainly from Japan. Exports of textile, clothing and footwear grew at a slower pace of 6.8% mainly due to a contraction in the exports of the textile segment, particularly textile yarns and woven fabrics. During the first eight months of 2015, the total registered foreign workers in the country increased to 2.2 million. The employment of foreign workers was largely concentrated in the manufacturing sectors. Under the 11MP, the Government will improve the management of foreign workers through the establishment of an improved framework to take into consideration the relevant laws, rules, regulations, national policies and directives relating to recruitment, employment and repatriation of workers.
Under budget 2015, the Government will provide a new incentive that is, Special Reinvestment Allowance to promote reinvestment among existing companies in the manufacturing sectors. The rate of claim is at 60% of the qualifying capital expenditure and is allowed to be set off against 70% of statutory income from year of assessment 2016 to 2018.
OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1986, the Subject is a Private Limited company, focusing on manufacturing of oleochemicals products. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. The Subject is a large entity with strong capital position of MYR 204,160,000. We are confident with the Subject's business and its future growth prospect. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. 

Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. The Subject is a fairly large and rapidly growing company with over 450 staff in its operations The Subject has a good  management capability. Its capable management team has enabled the Subject to keep its business on going. Hence, the future prospect of the Subject is bright. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to 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. Return on shareholders' funds of the Subject was at a favourable range which indicated that the management was efficient in utilising its funds to generate income. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. The gearing level of the Subject is slightly high, therefore it faces moderate financial risk. Given a positive net worth standing at MYR 478,668,000, the Subject should be able to maintain its business in the near terms. 

The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources. 

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 has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market. 

Based on the above condition, we recommend credit be granted to the Subject normally.

PROFIT AND LOSS ACCOUNT

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

NATURAL OLEOCHEMICALS SDN. BHD.

Financial Year End	2016-12-31	2015-12-31	2014-12-31	2013-12-31	2012-12-31
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	2,034,509,000	1,864,346,000	1,919,073,000	1,655,125,000	1,769,583,000
	----------------	----------------	----------------	----------------	----------------
Total Turnover	2,034,509,000	1,864,346,000	1,919,073,000	1,655,125,000	1,769,583,000
Costs of Goods Sold	(1,779,655,000)	(1,594,594,000)	(1,712,921,000)	(1,402,319,000)	(1,537,151,000)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	254,854,000	269,752,000	206,152,000	252,806,000	232,432,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	162,151,000	140,401,000	84,343,000	136,215,000	108,855,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	162,151,000	140,401,000	84,343,000	136,215,000	108,855,000
Taxation	(39,641,000)	(38,950,000)	(18,418,000)	(31,316,000)	(26,330,000)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	122,510,000	101,451,000	65,925,000	104,899,000	82,525,000
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	201,873,000	171,878,000	156,993,000	154,174,000	134,509,000
	----------------	----------------	----------------	----------------	----------------
As restated	201,873,000	171,878,000	156,993,000	154,174,000	134,509,000
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	324,383,000	273,329,000	222,918,000	259,073,000	217,034,000
DIVIDENDS - Ordinary (paid & proposed)	(61,248,000)	(71,456,000)	(51,040,000)	(102,080,000)	(62,860,000)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	263,135,000	201,873,000	171,878,000	156,993,000	154,174,000
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bankers' acceptance	506,000	-	1,741,000	658,000	4,604,000
Loan from holding company	-	2,724,000	3,180,000	438,000	2,124,000
Loan from subsidiary companies	77,000	150,000	103,000	70,000	165,000
Others	2,863,000	2,072,000	5,256,000	3,663,000	3,955,000
	----------------	----------------	----------------	----------------	----------------
	3,446,000	4,946,000	10,280,000	4,829,000	10,848,000
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	19,160,000	22,162,000	27,017,000	20,001,000	20,011,000
AMORTIZATION	441,000	441,000	440,000	314,000	314,000
	----------------	----------------	----------------	----------------	----------------
	19,601,000	22,603,000	27,457,000	20,315,000	20,325,000
	=============	=============	=============	=============	=============

BALANCE SHEET

NATURAL OLEOCHEMICALS SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	195,544,000	194,690,000	213,595,000	220,261,000	229,330,000
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	13,100,000	13,100,000	13,100,000	13,100,000	11,300,000
Others	-	-	-	-	13,142,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	13,100,000	13,100,000	13,100,000	13,100,000	24,442,000
Others	40,694,000	11,947,000	12,388,000	12,828,000	-
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	40,694,000	11,947,000	12,388,000	12,828,000	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	249,338,000	219,737,000	239,083,000	246,189,000	253,772,000
Stocks	334,666,000	145,145,000	156,263,000	151,061,000	118,693,000
Trade debtors	277,062,000	200,866,000	201,953,000	143,823,000	301,055,000
Other debtors, deposits & prepayments	55,253,000	20,161,000	2,942,000	650,000	1,265,000
Short term deposits	8,925,000	100,000	670,000	10,040,000	324,000
Amount due from holding company	-	-	-	86,000	-
Amount due from subsidiary companies	13,822,000	17,503,000	13,512,000	18,300,000	19,285,000
Amount due from related companies	130,744,000	90,039,000	204,521,000	168,860,000	-
Cash & bank balances	6,462,000	669,000	344,000	2,065,000	308,000
Others	26,508,000	663,000	7,193,000	-	3,705,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	853,442,000	475,146,000	587,398,000	494,885,000	444,635,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	1,102,780,000	694,883,000	826,481,000	741,074,000	698,407,000
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	8,156,000	947,000	8,630,000	2,842,000	41,766,000
Other creditors & accruals	42,550,000	39,803,000	38,701,000	45,427,000	44,027,000
Other borrowings	366,968,000	76,730,000	116,498,000	226,700,000	30,532,000
Bill & acceptances payable	18,332,000	2,000,000	3,644,000	-	113,672,000
Amounts owing to holding company	112,000	40,958,000	149,802,000	7,410,000	63,884,000
Amounts owing to subsidiary companies	10,396,000	19,839,000	5,791,000	13,278,000	1,467,000
Amounts owing to related companies	146,002,000	61,671,000	71,790,000	38,903,000	7,106,000
Provision for taxation	-	-	-	3,333,000	3,420,000
Other liabilities	-	20,100,000	27,358,000	6,381,000	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	592,516,000	262,048,000	422,214,000	344,274,000	305,874,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	260,926,000	213,098,000	165,184,000	150,611,000	138,761,000
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	510,264,000	432,835,000	404,267,000	396,800,000	392,533,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	204,160,000	204,160,000	204,160,000	204,160,000	204,160,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	204,160,000	204,160,000	204,160,000	204,160,000	204,160,000
Exchange equalisation/fluctuation reserve	11,373,000	-	-	-	-
Retained profit/(loss) carried forward	263,135,000	201,873,000	171,878,000	156,993,000	154,174,000
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	274,508,000	201,873,000	171,878,000	156,993,000	154,174,000
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	478,668,000	406,033,000	376,038,000	361,153,000	358,334,000
Deferred taxation	31,596,000	26,802,000	28,229,000	35,647,000	34,199,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	31,596,000	26,802,000	28,229,000	35,647,000	34,199,000
	----------------	----------------	----------------	----------------	----------------
	510,264,000	432,835,000	404,267,000	396,800,000	392,533,000
	=============	=============	=============	=============	=============

FINANCIAL RATIO

NATURAL OLEOCHEMICALS SDN. BHD.

TYPES OF FUNDS
Cash	15,387,000	769,000	1,014,000	12,105,000	632,000
Net Liquid Funds	(2,945,000)	(1,231,000)	(2,630,000)	12,105,000	(113,040,000)
Net Liquid Assets	(73,740,000)	67,953,000	8,921,000	(450,000)	20,068,000
Net Current Assets/(Liabilities)	260,926,000	213,098,000	165,184,000	150,611,000	138,761,000
Net Tangible Assets	469,570,000	420,888,000	391,879,000	383,972,000	392,533,000
Net Monetary Assets	(105,336,000)	41,151,000	(19,308,000)	(36,097,000)	(14,131,000)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	165,597,000	145,347,000	94,623,000	141,044,000	119,703,000
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	185,198,000	167,950,000	122,080,000	161,359,000	140,028,000
BALANCE SHEET ITEMS
Total Borrowings	385,300,000	78,730,000	120,142,000	226,700,000	144,204,000
Total Liabilities	624,112,000	288,850,000	450,443,000	379,921,000	340,073,000
Total Assets	1,102,780,000	694,883,000	826,481,000	741,074,000	698,407,000
Net Assets	510,264,000	432,835,000	404,267,000	396,800,000	392,533,000
Net Assets Backing	478,668,000	406,033,000	376,038,000	361,153,000	358,334,000
Shareholders' Funds	478,668,000	406,033,000	376,038,000	361,153,000	358,334,000
Total Share Capital	204,160,000	204,160,000	204,160,000	204,160,000	204,160,000
Total Reserves	274,508,000	201,873,000	171,878,000	156,993,000	154,174,000
GROWTH RATIOS (Year on Year)
Revenue	9.13	(2.85)	15.95	(6.47)	(6.75)
Proft/(Loss) Before Tax	15.49	66.46	(38.08)	25.13	174.44
Proft/(Loss) After Tax	20.76	53.89	(37.15)	27.11	187.24
Total Assets	58.70	(15.92)	11.52	6.11	(20.11)
Total Liabilities	116.07	(35.87)	18.56	11.72	(36.50)
LIQUIDITY (Times)
Cash Ratio	0.03	0	0	0.04	0
Liquid Ratio	0.88	1.26	1.02	1.00	1.07
Current Ratio	1.44	1.81	1.39	1.44	1.45
WORKING CAPITAL CONTROL (Days)
Stock Ratio	60	28	30	33	24
Debtors Ratio	50	39	38	32	62
Creditors Ratio	2	0	2	1	10
SOLVENCY RATIOS (Times)
Gearing Ratio	0.80	0.19	0.32	0.63	0.40
Liabilities Ratio	1.30	0.71	1.20	1.05	0.95
Times Interest Earned Ratio	48.05	29.39	9.20	29.21	11.03
Assets Backing Ratio	2.30	2.06	1.92	1.88	1.92
PERFORMANCE RATIO (%)
Operating Profit Margin	7.97	7.53	4.39	8.23	6.15
Net Profit Margin	6.02	5.44	3.44	6.34	4.66
Return On Net Assets	32.45	33.58	23.41	35.55	30.50
Return On Capital Employed	30.06	32.68	22.71	34.43	30.50
Return On Shareholders' Funds/Equity	25.59	24.99	17.53	29.05	23.03
Dividend Pay Out Ratio (Times)	0.50	0.70	0.77	0.97	0.76
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.36
UK Pound	1	INR 92.50
Euro	1	INR 81.05
MYR	1	INR 17.07

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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