MIRA
INFORM REPORT
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Report Date : |
19.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
A1 RUBBER SDN BHD |
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Formerly Known As : |
SINMEX RUBBER SDN BHD |
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Registered Office : |
422, Jalan Haruan 4, Oakland Commercial Centre, Ground Floor, 70200
Seremban, Negeri Sembilan |
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Country : |
Malaysia |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
19/01/1994 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing of Latex Concentrate |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
* Adopted
abbreviations : SC - Subject Company ( the company enquired
by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 287476-U
COMPANY NAME : A1 RUBBER SDN BHD
FORMER NAME : SINMEX RUBBER SDN BHD (29-05-2007)
INCORPORATION DATE : 19/01/1994
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : 422, JALAN HARUAN 4, OAKLAND
COMMERCIAL CENTRE,
GROUND
FLOOR, 70200 SEREMBAN, NEGERI SEMBILAN,
MALAYSIA.
BUSINESS ADDRESS : 5-G & 1, JALAN S2 B1, LAKE VIEW
SQUARE, SEREMBAN 2,
70300
SEREMBAN, NEGERI SEMBILAN, MALAYSIA.
TEL NO : 06 - 6012468
FAX NO : 06 - 6012469
CONTACT PERSON : LIM KWEE FATT (MANAGING DIRECTOR)
INDUSTRY CODE : 25199
PRINCIPAL ACTIVITY : MANUFACTURING OF LATEX CONCENTRATE
AUTHORISED CAPITAL : MYR5,000,000.00 DIVIDED INTO ORDINARY
SHARE
5,000,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR2,500,000.00 DIVIDED INTO ORDINARY
SHARE
2,500,000
CASH OF MYR1.00 EACH.
SALES : MYR239,795,743 [2006]
NET WORTH : MYR5,848,579 [2006]
STAFF STRENGTH : 120
[2007]
BANKER (S) : AMBANK (M) BHD
: EON BANK BHD
: MALAYAN BANKING BHD
: STANDARD CHARTERED BANK MALAYSIA BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : LIMITED
PAYMENT : AVERAGE
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : SATISFACTORY
INDUSTRY OUTLOOK : STRONG GROWTH
HISTORY / BACKGROUND
The SC 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
SC must have at least two directors. A private limited company is a separate
legal entity from its shareholders. As a separate legal entity, the SC 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 SC is insolvent. The SC 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 SC is principally engaged in the (as a / as an) manufacturing of
latex concentrate.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is not qualified to be one of the Top Corporate Performers in the
Malaysia 1000 (M1000) publication, a directory jointly published by Companies
Commission of Malaysia (The Registrar Office), Minister of Domestic Trade and
Consumer Affairs and our publication arm, BASIS Publications House Sdn Bhd.
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
MR. LIM KWEE FATT + 87,
TAMAN TITI, 71650 KUALA KLAWANG, 4948035 1,350,000
[APPOINTED AS MD ON NEGERI
SEMBILAN, MALAYSIA. 560316-05-5477
20.3.2000]
MR. CHEW KEE FOO 1,
JALAN CERMAI 19, TAMAN SURIA, 86000 7341482 280,500
KLUANG,
JOHOR, MALAYSIA. 640312-01-5363
MR. LIM CHIN CHONG 87,
TAMAN TITI, 71650 KUALA KLAWANG, 790623-05-5171 250,000
NEGERI
SEMBILAN, MALAYSIA.
MS. LEE LWE LAN LOT
6-12, CONDO TASEK MEWAH, BANDAR 5461047 225,000
SEREMBAN,
70000 SEREMBAN, NEGERI 570825-05-5028
SEMBILAN,
MALAYSIA.
MR. YAP WAH HEE + 58,
TAMAN TITI, JELEBU, 71650 KUALA 5862421 176,000
KLAWANG,
NEGERI SEMBILAN, MALAYSIA. 600514-10-6443
MR. SIOW FOO WAH + 76,
JALAN HOSAPA, TITI, JELEBU, 71650 A0649867 168,500
KUALA
KLAWANG, NEGERI SEMBILAN, 670107-05-5531
MALAYSIA.
MS. LIM SOOK CHIN 87,
TAMAN TITI, 71650 KUALA KLAWANG, 830610-05-5248 50,000
NEGERI
SEMBILAN, MALAYSIA.
--------------------
2,500,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. LIM KWEE FATT
Address : 87,
TAMAN TITI, 71650 KUALA KLAWANG, NEGERI SEMBILAN, MALAYSIA.
IC / PP No. : 4948035
New IC No : 560316-05-5477
Date of Birth : 16/03/1956
Nationality : MALAYSIAN CHINESE
Date of Appointment : 13/01/2000
Remark : APPOINTED AS MD ON 20.3.2000
DIRECTOR 2
Name of Subject : MR. YAP WAH HEE
Address : 58, TAMAN TITI, JELEBU, 71650 KUALA
KLAWANG, NEGERI SEMBILAN,
MALAYSIA.
IC / PP No. : 5862421
New IC No : 600514-10-6443
Date of Birth : 14/05/1960
Nationality : MALAYSIAN CHINESE
Date of Appointment : 20/03/2000
DIRECTOR 3
Name of Subject : MR. SIOW FOO WAH
Address : 76, JALAN HOSAPA, TITI, JELEBU, 71650
KUALA KLAWANG, NEGERI
SEMBILAN,
MALAYSIA.
IC / PP No. : A0649867
New IC No : 670107-05-5531
Date of Birth : 07/01/1967
Nationality : MALAYSIAN
CHINESE
Date of Appointment : 17/03/2001
MANAGEMENT
1) Name of Subject : LIM
KWEE FATT
Position : MANAGING DIRECTOR
AUDITOR
Auditor : TAN KIM HENG & CO
Auditors' Address : A1-2, TAMAN PANGSAPURI MALIM, JALAN
MALIM, 75250 MELAKA,
MELAKA, MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MR.
WONG LEONG PIAU
New IC No. : 770711-05-5755
Address : 690, TAMAN MARIDA, SENAWANG, 70450 SEREMBAN, NEGERI
SEMBILAN,
MALAYSIA.
Date of Appointment : 02/08/2005
BANKING
Banking relations are maintained principally with :
1) Banker Name : AMBANK
(M) BHD
2) Banker Name : EON
BANK BHD
3) Banker Name : MALAYAN
BANKING BHD
4) Banker Name : STANDARD
CHARTERED BANK MALAYSIA BHD
The SC enjoys normal banking routine with above mentioned banker(s).
The SC has bank charges with above mentioned banker(s).
ENCUMBRANCE (S)
ENCUMBRANCE 1
Date of Creation : 01 Oct 2004
Description of Charge : N/A
Amount Secured : RM 600,000.00
Description of Property Affected : N/A
Name & Address of Chargee : AMFINANCE BHD
Form 40 Dated
Registered and Numbered 3 In The
Register of Charges
ENCUMBRANCE 2
Date of Creation : 08 Apr 2005
Description of Charge : N/A
Amount Secured : RM 5,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : EON BANK BHD
Form 40 Dated
Registered and Numbered 4 In The
Register of Charges
ENCUMBRANCE 3
Date of Creation : 07 Jul 2005
Description of Charge : N/A
Amount Secured : RM 21,800,000.00
Description of Property Affected : N/A
Name & Address of Chargee : MALAYAN BANKING BHD
Form 40 Dated
Registered and Numbered 5 In The
Register of Charges
ENCUMBRANCE 4
Date of Creation : 23 Aug 2005
Description of Charge : N/A
Amount Secured : RM 3,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : AMBANK (M) BHD
Form 40 Dated
Registered and Numbered 6 In The
Register of Charges
ENCUMBRANCE 5
Date of Creation : 27 Feb 2006
Description of Charge : N/A
Amount Secured : o/d
Description of Property Affected : N/A
Name & Address of Chargee : STANDARD CHARTERED BANK MALAYSIA BHD
Form 40 Dated
Registered and Numbered 7 In The
Register of Charges
ENCUMBRANCE 6
Date of Creation : 27 Feb 2006
Description of Charge : N/A
Amount Secured : o/d
Description of Property Affected : N/A
Name & Address of Chargee : STANDARD CHARTERED BANK MALAYSIA BHD
Form 40 Dated
Registered and Numbered 8 In The
Register of Charges
LEGAL CHECK AGAINST THE SC
* A check has been
conducted in our databank against the SC whether the subject has been
involved in any
litigation. Our databank consists of 99% of the wound up companies in Malaysia
back dated since 1900.
No legal action was found in our databank.
No winding up petition was found in our data bank
PAYMENT RECORD
SOURCES OF RAW MATERIALS :
Local : YES Percentage : 40%
Overseas : YES Percentage : 60%
Import Countries : ASIA.
The SC 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 [ ] Good [ ] Average [ X ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES Percentage : 70%
Domestic Markets : MALAYSIA.
Overseas : YES Percentage : 30%
Export Market : ASIA.
Credit Term : 30 DAYS.
Payment Mode : LETTER OF CREDIT (LC).
Type of Customer : END USERS.
OPERATIONS
Products Manufactured : LATEX CONCENTRATE
Competitor(s) : HEVEAFIL SDN BHD
FILMAX
SDN BHD
LINATEX
RUBBER PRODUCTS SDN BHD
RUBBERFLEX
SDN BHD
SILITECH
TECHNOLOGY CORPORATION SDN BHD
Ownership of premises : OWNED
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 120 93 61
Branch : NO
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA) database, but no latest
development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
Telephone Number Provided By Client : N/A
Current Telephone Number : 06-6012468
Match : N/A
Address Provided By Client : 5-G & 1, JALAN S2 B1, LAKE VIEW
SQUARE,
SEREMBAN
2, 70300, SEREMBAN, NEGERI SEMBILAN.
Current Address : 5-G & 1, JALAN S2 B1, LAKE VIEW
SQUARE, SEREMBAN 2,
70300
SEREMBAN, NEGERI SEMBILAN, MALAYSIA.
Match : YES
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with the SC's staff from Account Dept, Ms Yee.
She furnished us some information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 5.44% ]
Profit / ( Loss ) before tax : Increased [ 14.92% ]
Return on Shareholder Funds : Acceptable [ 17.76% ]
Return on Net Assets : Acceptable [ 28.88% ]
The higher turnover could be attributed to the favourable market
condition. The SC's management have been efficient in controlling its operating
costs. The SC's management had generated acceptable return for its shareholders
using its assets.
Working Capital Control :
Stocks Ratio : Favourable [ 10 Days ]
Debtors Ratio : Favourable [ 15 Days ]
Creditors Ratio : Favourable [ 14 Days ]
The SC'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 SC. The SC had a
favourable creditors' ratio as evidenced by its favourable collection days. The
SC could be taking advantage of the cash discounts and also wanting to maintain
goodwill with its creditors.
Liquidity :
Liquid Ratio : Unfavourable [ 0.61 Times ]
Current Ratio : Unfavourable [ 0.89 Times ]
A low liquid ratio means that the SC may be facing working capital
deficiency. If the SC cannot obtain additional financing or injection of fresh
capital, it may face difficulties in meeting its short term obligations.
Solvency :
Interest Cover : Unfavourable [ 2.43 Times ]
Gearing Ratio : Favourable [ 0.09 Times ]
The SC'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 SC was lowly geared thus it had a low financial
risk. The SC was mainly financed by its shareholders' funds and internally
generated funds. In times of economic slowdown / downturn, the SC being a lowly
geared company, will be able to compete better than those companies which are
highly geared in the same industry.
Overall Assessment :
Generally, the SC's performance has improved with higher turnover and
profit. Due to its weak liquidity position, the SC will be faced with problems in
meeting all its short term obligations if no short term loan is obtained or
additional capital injected into the SC. If there is a fall in the SC's profit
or any increase in interest rate, the SC may not be able to generate sufficient
cash-flow to service its interest. The SC 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 SC: LIMITED
COMMENTS
Established in 1994, the SC is principally engaged in the manufacturing
of latex concentrate. Having been in the industry for more than one decade
should have enabled to build up a certain goodwill with its clients over times.
With RM2.5 million in issued and paid up capital, the SC has the potential of
capturing a higher market shares as it is competing aggressively in the market.
Having been in the business for over a decade, the SC should have
received strong support from its regular customers. Apart from serving the
local market, the SC also exports to ASIA countries. Its ability to penetrate
into the global market has benefited the SC in terms of higher profitability
and moderated its business risk. The management of the SC is overseen by
Managing Director LIm Swee Kwee Fatt and assisted by 120 staffs. Overall the
management capability of the SC is average.
During the financial year 2006, turnover of the SC grew by 5.44% to
RM239.79 million in 2006. The SC recorded a pre-tax profit of RM1.04 million
for the year. The SC generated an acceptable return on shareholders' funds
indicating that the SC was efficient in utilising its shareholders' funds to
generate favourable returns.
Beside this, the SC posted a low gearing ratio indicating that the SC face s
low financial risk. However the SC posted weak liquidity position the SC will
be faced with problems in meeting all its short term obligations if no short
term loan is obtained or additional capital injected into the SC. The SC should
be able to maintain its business in the near term, given a positive net worth
standing at RM5.84 million.
Investigation revealed that the SC sources its raw materials from both
local and overseas countries. As a result, the SC is exposed to foreign
currency fluctuation risk.
Based on the historical data we concluded that the payment habit of the
SC is average.
The industry shows an upward trend and this trend is very likely to
sustain in the near future. With the promising outlook of the industry
performance, the business potential of the SC should be favourable.
In view of the above we recommend credit be granted to the SC normally.
THE FINANCIAL STATEMENTS WERE
PREPARED
IN ACCORDANCE WITH MALAYSIA
ACCOUNTING
STANDARD.
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-December-2006
A1
RUBBER SDN BHD
2006 2005
MYR MYR
TURNOVER 239,795,743 227,430,774
=========== ===========
PROFIT/(LOSS)
FROM OPERATIONS 1,045,789 910,020
SHARE OF PROFITS/(LOSSES) OF
ASSOCIATED
------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 1,045,789 910,020
Taxation <7,318> <101,298>
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PROFIT/(LOSS)
AFTER TAXATION 1,038,471 808,722
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 1,038,471 808,722
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PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 1,038,471 808,722
RETAINED PROFIT/(ACCUMULATED LOSS)
BROUGHT
FORWARD
As previously
reported 2,310,108 1,501,386
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As restated 2,310,108 1,501,386
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PROFIT
AVAILABLE FOR APPROPRIATIONS 3,348,579 2,310,108
------------------- -------------------
RETAINED PROFIT/(ACCUMULATED LOSS)
CARRIED
FORWARD 3,348,579 2,310,108
=========== ===========
RETAINED
BY: The Company 3,348,579 2,310,108
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3,348,579 2,310,108
=========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Term loan 14,399 24,202
Other
interest expenses 189,424 49,464
Lease
interest 55,281 152,815
banker's
bills interest 473,790 128,765
------------------- -------------------
732,894 355,246
=========== ===========
BALANCE SHEET
As
At 31-December-2006
A1
RUBBER SDN BHD
2006 2005
MYR MYR
ASSETS EMPLOYED:
FIXED ASSETS 4,946,033 4,949,837
LONG TERM
INVESTMENTS/OTHER ASSETS
Investments 3,762,322 3,762,322
------------------- -------------------
TOTAL LONG
TERM INVESTMENTS/OTHER ASSETS 3,762,322 3,762,322
INTANGIBLE
ASSETS
------------------- -------------------
------------------- -------------------
TOTAL LONG
TERM ASSETS 8,708,355 8,712,159
CURRENT
ASSETS
Stocks 6,390,442 7,318,731
Trade debtors 9,614,804 20,236,533
Short term
deposits 2,178,732 2,120,530
Items in transit between head
office & branches
Cash &
bank balances 1,985,397 74,813
tax
refundable 34,735 19,703
------------------- -------------------
TOTAL CURRENT
ASSETS 20,204,110 29,770,310
CURRENT
LIABILITIES
Trade
creditors 9,232,959 8,798,064
Other
creditors & accruals 2,514,390 2,377,187
Bank
overdraft 372,396 313,381
Short term
borrowings/Term loans 178,513 201,385
Bill &
acceptances payable 9,383,725 13,528,878
Amounts owing
to director 1,071,354 7,875,932
Provision for
taxation - 54,766
------------------- -------------------
TOTAL CURRENT
LIABILITIES 22,753,337 33,149,593
------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) <2,549,227> <3,379,283>
------------------- -------------------
TOTAL NET
ASSETS 6,159,128 5,332,876
=========== ===========
FINANCED BY:
SHARE CAPITAL
Ordinary
share capital 2,500,000 2,500,000
------------------- -------------------
TOTAL SHARE
CAPITAL 2,500,000 2,500,000
RESERVES
Retained profit/(Accumulated loss)
carried
forward 3,348,579 2,310,108
------------------- -------------------
TOTAL
RESERVES 3,348,579 2,310,108
------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 5,848,579 4,810,108
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Long term
loans - 178,537
Deferred
taxation 310,549 344,231
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 310,549 522,768
------------------- -------------------
6,159,128 5,332,876
=========== ===========
FINANCIAL RATIOS
As
At 31-December-2006
A1
RUBBER SDN BHD
2006 2005
MYR MYR
TYPES OF FUNDS
Cash 4,164,129 2,195,343
Net Liquid
Funds 3,613,220 1,680,577
Net Liquid
Assets <8,939,669> <10,698,014>
Net Current
Assets/(Liabilities) <2,549,227> <3,379,283>
Net Tangible
Assets 6,159,128 5,332,876
Net Monetary
Assets <9,250,218> <11,220,782>
BALANCE SHEET
ITEMS
Total
Borrowings 550,909 693,303
Total
Liabilities 23,063,886 33,672,361
Total Assets 28,912,465 38,482,469
Net Assets 6,159,128 5,332,876
Net Assets
Backing 5,848,579 4,810,108
Shareholders''
Funds 5,848,579 4,810,108
Total Share
Capital 2,500,000 2,500,000
Total
Reserves 3,348,579 2,310,108
LIQUIDITY
(Times)
Cash Ratio 0.18 0.07
Liquid Ratio 0.61 0.68
Current Ratio 0.89 0.90
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 10 12
Debtors Ratio 15 32
Creditors
Ratio 14 14
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.09 0.14
Liabilities
Ratio 3.94 7.00
Times
Interest Earned Ratio 2.43 3.56
PERFORMANCE
RATIO (%)
Operating
Profit Margin 0.44 0.40
Net Profit
Margin 0.43 0.36
Return On Net
Assets 28.88 23.73
Return On
Capital Employed 26.51 21.64
Return On
Shareholders'' Funds/Equity 17.76 16.81
Dividend Pay
Out Ratio (Times) 0 0
NOTES TO
ACCOUNTS
Contingent
Liabilities 0 0
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)