MIRA
INFORM REPORT
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Report Date : |
22.05.2007 |
IDENTIFICATION DETAILS
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Name : |
KAIZER PVC ADDITIVES SDN BHD |
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Registered Office : |
44a, Jalan Ss 15/4d, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
05/12/1994 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer of Industrial Chemical |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
* Adopted
abbreviations : SC - Subject Company ( the company enquired
by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 325758-D
COMPANY NAME : KAIZER PVC ADDITIVES SDN BHD
FORMER NAME : TG TRADING SDN BHD (15-05-2000)
INCORPORATION DATE : 05/12/1994
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : 44A, JALAN SS 15/4D, PETALING JAYA,
47500
SUBANG
BUSINESS ADDRESS : LOT 205, JALAN SUNGAI,
PULAI
INDAH, 42920 PELABUHAN KLANG, SELANGOR,
TEL NO : 03 - 31013523/2167
FAX NO : 03 - 31015462
CONTACT PERSON : RAJANDARAN GOPAL (MANAGING DIRECTOR)
INDUSTRY CODE : 24290
PRINCIPAL ACTIVITY : MANUFACTURER OF INDUSTRIAL CHEMICAL
AUTHORISED CAPITAL : MYR1,000,000.00 DIVIDED INTO ORDINARY
SHARE
1,000,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR1,000,000.00 DIVIDED INTO ORDINARY
SHARE
1,000,000
CASH OF MYR1.00 EACH.
SALES : MYR817,339 [2005]
NET WORTH : MYR502,201 [2005]
STAFF STRENGTH : 10
[2007]
BANKER (S) : AMBANK (M) BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : POOR
PAYMENT : FAIR
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : SATISFACTORY
INDUSTRY OUTLOOK : AVERAGE 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) manufacturer of
industrial chemical.
The SC is not listed on
The SC is not qualified to be one of the Top Corporate Performers in the
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
MR. RAJANDARAN A/L GOPAL 1211, JALAN RJ 3/11,
+ 70300
SEREMBAN, NEGERI SEMBILAN, 560212-05-5157
AHMAD TRADE HOUSE
26, BLOCK F, ROAD 11, BANANI 250,000
INTERNATIONAL DHAKA,
1213,
MR. SUBASH CHANDRA 28,
JALAN TERASEK 2, BANGSAR BARU, 59100 4263417 150,000
PANDIAN CHELLIAH +
MR. GOPAL A/L VYTHILINGAM 37, LORONG SUNGAI BERTIH 2,
+ GEMBIRA,
41100 KLANG, SELANGOR, 480616-10-5501
MR. OOI HONG YAN + 405,
LORONG SONGKET 3,
41000
KLANG,
MR. BALLAN A/L RAMASAMY 54, JALAN CENGAL 7,
70400
SEREMBAN, NEGERI SEMBILAN, 671025-05-5081
MR. ZAINAL ABIDIN BIN ABU 17, JALAN SETIAWANGSA 5,
ZARIN + SETIAWANGSA,
54200
WILAYAH
--------------------
1,000,000
===========
+ Also
Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. RAJANDARAN A/L GOPAL
Address : 1211, JALAN RJ 3/11,
NEGERI
IC / PP No. : 8235018
New IC No : 560212-05-5157
Date of Birth : 12/02/1956
Nationality : MALAYSIAN INDIAN
DIRECTOR 2
Name of Subject : MR. SUBASH CHANDRA PANDIAN CHELLIAH
Address : 28, JALAN TERASEK 2, BANGSAR BARU,
59100
WILAYAH
IC / PP No. : 4263417
New IC No : 480818-07-5099
Date of Birth : 18/08/1948
Nationality : MALAYSIAN INDIAN
DIRECTOR 3
Name of Subject : MR. GOPAL A/L VYTHILINGAM
Address : 37, LORONG SUNGAI BERTIH 2,
IC / PP No. : 2909259
New IC No : 480616-10-5501
Date of Birth : 16/06/1948
Nationality : MALAYSIAN INDIAN
DIRECTOR 4
Name of Subject : MR. OOI HONG YAN
Address : 405, LORONG SONGKET 3,
IC / PP No. : 4441791
New IC No : 530304-02-5011
Date of Birth : 04/03/1953
Nationality : MALAYSIAN CHINESE
DIRECTOR 5
Name of Subject : MR. ZAINAL ABIDIN BIN ABU ZARIN
Address : 17, JALAN SETIAWANGSA 5,
IC / PP No. : 2813777
New IC No : 411120-03-5109
Date of Birth : 20/11/1941
Nationality : MALAYSIAN MALAY
DIRECTOR 6
Name of Subject : MD.FARUKUL ISLAM SHOVA
Address : F-9, PALLABI EXT, PALLABI DHAKA,
1221,
IC / PP No. : R0957303
Nationality : BANGLADESHI
MANAGEMENT
1) Name of Subject : RAJANDARAN
GOPAL
Position : MANAGING DIRECTOR
2) Name of Subject : BALLAN
RAMASAMY
Position : PRODUCTION MANAGER
AUDITOR
Auditor : GOONTING & CHEW
Auditors' Address : 28-C, 3RD FLOOR BLOK 2,
13/50,
40675 SHAH ALAM,
COMPANY SECRETARY
1) Company Secretary : MR.
SANTHA KUMAR A/L P.K KRISHNAN
IC / PP No. : 5990713
New IC No. : 601121-10-5145
Address : 19, JALAN MERAK 12, BANDAR PUCHONG JAYA, 47100
PUCHONG,
BANKING
Banking relations are maintained principally with :
1) Banker Name : AMBANK
(M) 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 : 15 Jul 2004
Description of Charge : A DEBENTURE 1ST FIXED AND FLOATING
CHARGE
Amount Secured : RM 1,500,000.00
Description of Property Affected : A 1ST FIXED AND FLOATING ASSETS OF
THE COMPANY
Name & Address of Chargee : AMBANK (M) BHD
BANGUNAN
AMBANK GROUP, JALAN RAJA CHULAN, 22ND
FLOOR,
50200
Form 40 Dated 05 Nov 2004
Registered and Numbered 1 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
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
Overseas : YES
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 [ ]
Fair [ X ] Poor [ ]
CLIENTELE
Local : NO Percentage : 0
%
Overseas : YES Percentage : 100%
Export Market :
Credit Term : AS AGREED.
Payment Mode : TELEGRAPHIC TRANSFER (TT).
OPERATIONS
Products Manufactured : ADDITIVES
Competitor(s) : COGNIS OLEOCHEMICALS (M) SDN BHD
TORAY
PLASTICS (
NATURAL
OLEOCHEMICALS SDN BHD
COGNIS
RIKA (M) SDN BHD
T.I.P.P.
(
Ownership of premises : OWNED
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 10 9 9
Branch : NO
Other Information :
The SC is principally engaged in the (as a / as an) manufacturer of
industrial chemical.
The SC specialises in the manufacturing
of additives and stabilizers for the PVC industry.
The SC utilises advanced automated machineries to ensure production of
high quality products.
Besides that the SC has a warehouse located at the same premises to keep
stock and materials.
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 : 03-31013523/2167
Match : N/A
Address Provided By Client :
INDUSTRIAL PARK,
PULAI INDAH, 42920
PELABUHAN
KLANG
Current Address :
INDUSTRIAL
PARK, PULAI INDAH, 42920
PELABUHAN
KLANG,
Match : YES
Latest Financial Accounts : YES
Other Investigations
On 22nd May 2007, we conducted an interview with Mr Rajandaran the SC's
Managing Director. He revealed some information pertaining to the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 361.86% ]
Profit / ( Loss ) before tax : Increased [ <
136.39% > ]
Return on Shareholder Funds : Unfavourable [ < 62.36%
> ]
Return on Net Assets : Unfavourable [ < 17.22%
> ]
The increase in turnover could be due to the SC adopting an aggressive
marketing strategy. Higher losses before tax during the year could be due to
the higher operating costs incurred. The SC's unfavourable
returns on shareholders' funds indicate the management's inefficiency in
utilising its assets to generate
returns.
Working Capital Control :
Stocks Ratio : Unfavourable [ 205 Days ]
Debtors Ratio : Favourable [ 21 Days ]
Creditors Ratio : Unfavourable [ 87 Days ]
The SC could be incurring higher holding cost. As its capital was tied
up in stocks, it could face liquidity problems. The favourable debtors' days
could be due to the good credit control measures implemented by the SC. The
unfavourable creditors' ratio could be due to the SC taking advantage of the
credit granted by its suppliers. However this may affect the goodwill between
the SC and its suppliers and the SC may inadvertently have to pay more for its
future supplies.
Liquidity :
Liquid Ratio : Unfavourable [ 0.09 Times ]
Current Ratio : Unfavourable [ 0.70 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 [ < 4.12
Times > ]
Gearing Ratio : Unfavourable [ 2.25 Times ]
The SC incurred losses in the year. It did not generate sufficient
income to service its interest. If the
situation does not improve, the SC may be vulnerable to default in servicing
the interest. The SC was highly geared, thus it had a high financial risk. The
SC was dependent on loans to finance its business needs. In times of economic
downturn and / or high interest rate, the SC will become less profitable and
competitive than other firms in the same industry, which are lowly geared. This
is because the SC has to service the interest and to repay the loan, which will
erode part of its profits. The profits will fluctuate depending on the SC's
turnover and the interest it needs to pay.
Overall Assessment :
Although the SC's turnover increased its profits however showed a
reverse trend. The losses could be due to the management's failure to maintain its
competitiveness in the market. 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. The SC's
interest cover was negative, indicating that it did not generate sufficient
income to service its interest. If its result does not show impressive
improvements or succeed obtaining short term financing or capital injection, it
may not be able to service its interest and repay the loans. The SC'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 SC: POOR
COMMENTS
Established in 1994, the SC is principally engaged in the manufacturer
of industrial chemical. With its long presence in the industry coupled with its
vast experiences in the business, the SC should have built up a certain
goodwill with its client over times. The SC is a private limited company with
the paid up capital standing at RM1 million.
Our investigation revealed that the SC solely concentrates on the
overseas market. With the full concentration on the overseas market, the SC is
unlikely to be affected by the uncertainties in the local economy and this has
benefited the SC in terms of higher earnings. However, being an international
player, the SC is subjected to certain inherent risks of foreign currencies
fluctuation and stiff competition from the international market. The SC can be
considered as a small entity with the workforce of 10 and the management of the
SC is overseen by Rajandaran Gopal.
Referring to the financial statements as at 31 Mar, 2005, the SC
reported pre-tax losses of RM313,169 on the back of RM817,339 in turnover. Due
to the losses, the SC has generated an unfavourable return on shareholders'
funds which indicated that the management was inefficient in utilising its shareholders' funds to generate
returns. Moreover, the SC is in weak liquidity position with its current
liabilities well exceeding its current assets. Thus, it may face difficulties
in meeting its short term obligations if no short term loan is obtained or
additional capital injected. The gearing ratio of the SC is also high
indicating that the SC faces high financial risk.
Investigation revealed that the SC's supplies are sourced locally and
from overseas countries. Thus, it is subjected to the currency fluctuation
risk.
Based on the historical financial data, we concluded that the SC's
payment record is fair. The SC is clear of litigation.
This industry remains robust with continuing strong global demand for
its products. With the promising outlook of the industry performance, the SC's
business potential should be favourable.
However, the SC is facing increasing competition from other companies.
Hence, the SC should improve its management capability and explore more new
market segments in order to have a stable standing in the industry.
Despite showing a positive growth of the industry, we however regard
that granting credit to the SC to be quite risky in view of poor financial
standing. Hence, we do not recommend the credit to be proceeded to the SC.
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-December-2005
KAIZER
PVC ADDITIVES SDN BHD
2005 2004
MYR MYR
TURNOVER 817,339 176,966
=========== ===========
PROFIT/(LOSS)
FROM OPERATIONS <313,169> <132,478>
SHARE OF PROFITS/(LOSSES) OF
ASSOCIATED
------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION <313,169> <132,478>
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PROFIT/(LOSS)
AFTER TAXATION <313,169> <132,478>
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS <313,169> <132,478>
------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS <313,169> <132,478>
RETAINED PROFIT/(ACCUMULATED LOSS)
BROUGHT
FORWARD
As previously
reported <184,630> <52,152>
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As
restated <184,630> <52,152>
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PROFIT
AVAILABLE FOR APPROPRIATIONS <497,799> <184,630>
------------------- -------------------
RETAINED PROFIT/(ACCUMULATED LOSS)
CARRIED
FORWARD <497,799> <184,630>
=========== ===========
RETAINED
BY: The Company <497,799> <184,630>
------------------- -------------------
<497,799> <184,630>
=========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Term
loan 49,990 4,864
Bank
overdraft 1,831 25
Hire
purchase 1,220 300
Interest
on trust receipts 4,142 -
Banker's
acceptance 3,993 -
------------------- -------------------
61,176 5,189
=========== ===========
BALANCE SHEET
As At 31-December-2005
KAIZER PVC ADDITIVES SDN BHD
2005 2004
MYR MYR
ASSETS EMPLOYED:
FIXED
ASSETS 1,691,272 950,248
------------------- -------------------
TOTAL
LONG TERM ASSETS 1,691,272 950,248
CURRENT
ASSETS
Stocks 457,999 11,035
Trade debtors 47,104 9,842
Other
debtors, deposits & prepayments 18,863 294,120
Items in transit between head
office & branches
Cash
& bank balances 1,127 36,618
------------------- -------------------
TOTAL
CURRENT ASSETS 525,093 351,615
CURRENT
LIABILITIES
Trade
creditors 194,531 20,723
Other
creditors & accruals 189,972 17,401
Hire
purchase & lease creditors 4,956 1,239
Bank
overdraft 75,410 -
Other
borrowings 88,643 -
Bill
& acceptances payable 184,000 -
Amounts
owing to director 15,228 600
------------------- -------------------
TOTAL
CURRENT LIABILITIES 752,740 39,963
------------------- -------------------
NET
CURRENT ASSETS/(LIABILITIES) <227,647> 311,652
------------------- -------------------
TOTAL
NET ASSETS 1,463,625 1,261,900
=========== ===========
FINANCED
BY:
SHARE
CAPITAL
Ordinary
share capital 1,000,000 1,000,000
------------------- -------------------
TOTAL
SHARE CAPITAL 1,000,000 1,000,000
RESERVES
Retained profit/(Accumulated loss) carried
forward <497,799> <184,630>
------------------- -------------------
TOTAL
RESERVES <497,799> <184,630>
------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 502,201 815,370
LONG
TERM & DEFERRED LIABILITIES & PROVISIONS
Long
term loans 947,775 424,208
Hire
purchase creditors 13,649 22,322
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 961,424 446,530
------------------- -------------------
1,463,625 1,261,900
=========== ===========
FINANCIAL RATIOS
As At 31-December-2005
KAIZER PVC ADDITIVES SDN BHD
2005 2004
MYR MYR
TYPES OF FUNDS
Cash 1,127 36,618
Net
Liquid Funds <74,283> 36,618
Net
Liquid Assets <685,646> 300,617
Net
Current Assets/(Liabilities) <227,647> 311,652
Net
Tangible Assets 1,463,625 1,261,900
Net
Monetary Assets <1,647,070> <145,913>
BALANCE
SHEET ITEMS
Total
Borrowings 1,130,433 447,769
Total
Liabilities 1,714,164 486,493
Total
Assets 2,216,365 1,301,863
Net
Assets 1,463,625 1,261,900
Net
Assets Backing 502,201 815,370
Shareholders''
Funds 502,201 815,370
Total
Share Capital 1,000,000 1,000,000
Total
Reserves <497,799> <184,630>
LIQUIDITY
(Times)
Cash
Ratio 0.00 0.92
Liquid
Ratio 0.09 8.52
Current
Ratio 0.70 8.80
WORKING
CAPITAL CONTROL (Days)
Stock
Ratio 205 23
Debtors
Ratio 21 20
Creditors
Ratio 87 43
SOLVENCY
RATIOS (Times)
Gearing
Ratio 2.25 0.55
Liabilities
Ratio 3.41 0.60
Times
Interest Earned Ratio <4.12> <24.53>
PERFORMANCE
RATIO (%)
Operating
Profit Margin <38.32> <74.86>
Net
Profit Margin <38.32> <74.86>
Return
On Net Assets <17.22> <10.09>
Return
On Capital Employed <16.32> <10.08>
Return
On Shareholders'' Funds/Equity <62.36> <16.25>
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/normal. |
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%)