MIRA INFORM REPORT

 

 

Report Date :

14.02.2008

 

IDENTIFICATION DETAILS

 

Name :

PLEXTECH MALAYSIA SDN BHD

 

 

Formerly Known As :

NG AH CHOO SDN BHD

 

 

Registered Office :

Unit 901, City Plaza, 21 Jalan Tebrau, Level 9, 80000 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31/12/2006

 

 

Date of Incorporation :

18/10/1993

 

 

Com. Reg. No.:

278686-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacture & Sale Of Grafted Copolymerized Cross Linking Polyethylene Resins

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

278686-M

COMPANY NAME

:

PLEXTECH (MALAYSIA) SDN BHD

FORMER NAME

:

NG AH CHOO SDN BHD (22/02/1995)

INCORPORATION DATE

:

18/10/1993

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

REGISTERED ADDRESS

:

UNIT 901, CITY PLAZA, 21 JALAN TEBRAU, LEVEL 9, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

PLO 264, TEBRAU INDUSTRIAL ESTATE IV, JALAN FIRMA 3, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

TEL.NO.

:

07-3542211 / 3523899

FAX.NO.

:

07-3542213 / 3512882

CONTACT PERSON

:

CASSANDRA TENG ( GROUP GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

2413 2520

PRINCIPAL ACTIVITY

:

MANUFACTURE & SALE OF GRAFTED COPOLYMERIZED CROSS LINKING POLYETHYLENE RESINS

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARES 1,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 15,033,098 [2006]

NET WORTH

:

MYR 2,326,257 [2006]

 

 

 

STAFF STRENGTH

:

30 [2008]

BANKER (S)

:

OCBC BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

HIGH

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) manufacture & sale of grafted copolymerized cross linking polyethylene resins

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 immediate and ultimate holding company of the SC is PLASTRADE ENTERPRISE SDN BHD, a company incorporated in MALAYSIA

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

 

Name

Address

IC/PP/Loc No

Shareholding

MR. PUA KONG HOI +

20, JALAN TERENTANG, KEBUN TEH PARK, 80500 JOHOR BAHRU, JOHOR, MALAYSIA.

480605-10-5493 7920507

1,000.00

PLASTRADE ENTERPRISE SDN BHD

PLO 264, TEBRAU INDUSTRIAL ESTATE IV, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

233071

999,000.00

 

 

 

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

 

 

 

1,000,000.00

 

 

 

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

 

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. FONG BEE HONG

Address

:

18, JALAN LAWA 10, TAMAN PELANGI INDAH, 81800 ULU TIRAM, JOHOR, MALAYSIA.

IC / PP No

:

A1431486

New IC No

:

691122-10-5974

Date of Birth

:

22/11/1969

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

01/10/2007

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. PUA KONG HOI

Address

:

20, JALAN TERENTANG, KEBUN TEH PARK, 80250 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

7920507

New IC No

:

480605-10-5493

Date of Birth

:

05/06/1948

Nationality

:

MALAYSIAN CHINESE



MANAGEMENT

 

 

 

1)

Name of Subject

:

CASSANDRA TENG

 

Position

:

GROUP GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

PUA KONG HOI

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

HEY

 

Position

:

ACCOUNT MANAGER

 

 

 

AUDITOR

 

Auditor

:

K H PUN & CO

Auditor' Address

:

UNIT 901A, CITY PLAZA, 21 JALAN TEBRAU, LEVEL 9, 80300 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SEOW GEK HONG

 

 

 

 

 

New IC No

:

510329-71-5192

 

Address

:

9, JALAN PUCUNG 3, TAMAN PERLING, 81200 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

 

 

2)

Company Secretary

:

MR. YONG QUEK THAI

 

IC / PP No

:

5191717

 

New IC No

:

570630-01-6707

 

Address

:

17, JALAN PERMAS 11/10, PERMAS JAYA, 81750 MASAI, JOHOR, MALAYSIA.

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

OCBC 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

:

30/10/2007

Description Of Charge

:

CASH DEPOSIT AGREEMENT

Amount Secured

:

N/A

Description Of Property Affected

:

ALL INVESTMENTS OF THE COMPANY

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

1 JALAN IBRAHIM, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

Form 40 Dated 06/11/2007

Registered and Numbered 3 In The Register of Charges

 

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt 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 databank



PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

 

Overseas

:

YES

 

Import Countries

:

SINGAPORE,MIDDLE EAST,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

[

X

]

 

Average

[

 

]

 

Fair

[

 

]

 

Poor

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

5%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

95%

Export Market

:

ARGENTINA, AUSTRALIA, BRUNEI DARUSSALAM, CHINA, GREECE, INDIA, IRAN, JAPAN, JORDAN, NEW ZEALAND,
PERU, SINGAPORE, TAIWAN, THAILAND, TURKEY, UNITED STATES, UNITED ARAB EMIRATES, VIETNAM

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

FREE TRADE ZONE (FTZ) COMPANIES,DISTRIBUTORS


The SC concentrates more on the overseas market

For local, the SC sells to companies located in the Free Trade Zones.

 

 

OPERATIONS

 

Products manufactured

:

BLACK JACKETING POLYETHYLENE COMPOUNDS, BLACK JACKETING POLYETHYLENE COMPOUNDS WITH ANTI TERMITE REAGENT, CROSSLINKABLE POLYETHYLENE PLEXLINK (CABLE GRADE), CROSSLINKABLE POLYETHYLENE PLEXLINK (PIPE GRADE), HEAT SHRINKAGE PRODUCTS (PLASTIC)

 

 

 

Brand Name

:

PLEXLINK

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2002

 

 

 

Competitor(s)

:

ARRK (MALAYSIA) SDN BHD

MEDICOMPOUNDS SDN BHD

PENFIBRE SDN BHD

POLYCORE OPTICAL (MALAYSIA) SDN BHD

TORAY PLASTICS (MALAYSIA) SDN BHD

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

 

 

 

Ownership of premises

:

LEASED/RENTED

 

Total Number of Employees:

 

YEAR

2008

2007

2006

2005

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

30

25

16

16

 

 

 

 

 

 

Branch

:

NO

Other Information:


The SC is principally engaged in the (as a / as an) manufacture & sale of grafted copolymerized cross linking polyethylene resins

 The resins are used for producing cables and wiring products

 The SC's production capacity depends on its customers' requirements

 According to the SC, its business faces stiff competition from local players

 

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

:

07-3542211 / 3523899

Match

:

N/A

 

 

 

Address Provided by Client

:

PLO 264, TEBRAU INDUSTRIAL ESTATE IV, JALAN FIRMA 3, 81100, JOHOR BAHRU, JOHOR.

Current Address

:

PLO 264, TEBRAU INDUSTRIAL ESTATE IV, JALAN FIRMA 3, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the Senior staff from the Finance Department. She provided some information on the SC. Later we contacted one of the Supervisor from the Production Department for more information on the SC.


FINANCIAL COMMENTS

Profitability:

Turnover

:

Increased

[

44.83%

]

Profit/(Loss) Before Tax

:

Decreased

[

40.13%

]

Return on Shareholder Funds

:

Unfavourable

[

5.62%

]

Return on Net Assets

:

Acceptable

[

12.03%

]


The increase in turnover could be due to the SC adopting an aggressive marketing strategy. The SC's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds and net assets could indicate that the SC's management was inefficient in utilising its assets to generate returns.

Working Capital Control:

Stock Ratio

:

Favourable

[

21 Days

]

Debtors Ratio

:

Unfavourable

[

87 Days

]

Creditors Ratio

:

Favourable

[

25 Days

]


The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. 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

:

Favourable

[

1.26 Times

]

Current Ratio

:

Unfavourable

[

1.47 Times

]


A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Unfavourable

[

1.88 Times

]

Gearing Ratio

:

Favourable

[

0.69 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 Accessment:

Although the SC's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the SC's profit margin. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. 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

 

 

ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2004

2005

2006

2007*

2008**

 

 

 

 

 

 

Population ( Million)

25.58

26.13

26.64

27.17

27.73

Gross Domestic Products ( % )

7.1

5.3

5.8

6.0

6.5

Domestic Demand ( % )

7.5

7.3

7.0

9.0

6.8

Private Expenditure ( % )

13.1

9.5

7.0

8.6

8.2

Consumption ( % )

10.5

9.2

7.1

9.0

7.9

Investment ( % )

25.8

8.5

7.0

7.1

9.5

Public Expenditure ( % )

<2.1>

3.6

6.8

10.1

3.2

Consumption ( % )

6.0

5.4

5.0

10.8

5.5

Investment ( % )

<8.7>

1.9

8.9

9.3

0.5

 

 

 

 

 

 

Balance of Trade ( MYR Million )

80,663

99,760

108,192

99,965

99,599

Government Finance ( MYR Million )

<19,419>

<18,684>

<19,109>

<19,948>

<20,933>

Government Finance to GDP / Fiscal Deficit ( % )

<4.3>

<3.8>

<3.3>

<3.2>

<3.1>

Inflation ( % Change in Composite CPI)

1.4

3.1

3.9

4.0

4.0

Unemployment Rate

3.5

3.5

3.4

3.5

3.3

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

254

266

290

-

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

13.84

13.63

12.91

-

-

Average 3 Months of Non-performing Loans ( % )

8.46

6.74

5.41

-

-

Average Base Lending Rate ( % )

5.99

6.00

6.61

-

-

Business Loans Disbursed( % )

10.5

8.7

<2.5>

-

-

Foreign Investment ( MYR Million )

13,143.9

17,882.9

20,228.0

-

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

38,580

37,474

38,293

-

-

Registration of New Companies ( % )

6.8

<2.9>

2.2

-

-

Liquidation of Companies ( No. )

3,334

3,069

8,647

-

-

Liquidation of Companies ( % )

<15.8>

<7.9>

181.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

189,206

193,095

216,147

-

-

Registration of New Business ( % )

4.6

2.1

11.9

-

-

Business Dissolved ( No. )

51,301

73,355

52,879

-

-

Business Dissolved ( % )

7.0

43.0

<27.9>

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

380.6

400.8

374.1

-

-

Cellular Phone Subscribers ( Million )

14.6

18.5

19.5

21.3

-

Tourist Arrival ( Million Persons )

15.7

16.7

17.5

20.1

-

Hotel Occupancy Rate ( % )

60.8

63.6

64.8

-

-

 

 

 

 

 

 

Credit Cards Spending ( % )

19.3

13.9

15.4

-

-

Bad Cheque Offenders (No.)

70,465

57,316

36,555

-

-

Individual Bankruptcy ( No.)

16,251

15,868

13,596

-

-

Individual Bankruptcy ( % )

31.6

<2.4>

<14.3>

-

-

 

INDUSTRIES ( % of Growth ):

2004

2005

2006

2007*

2008**

 

 

 

 

 

 

Agriculture

5.0

2.5

5.3

3.1

3.5

Palm Oil

3.9

7.1

5.8

<0.6>

-

Rubber

16.5

<2.9>

12.6

1.0

-

Forestry & Logging

4.3

2.0

<0.4>

2.8

-

Fishing

5.5

<0.4>

9.3

5.2

-

Other Agriculture

2.4

3.2

5.3

7.0

-

Industry Non-Performing Loans ( MYR Million )

620.3

563.7

516.5

487.3

0

% of Industry Non-Performing Loans

1.38

1.19

1.06

1.08

0

 

 

 

 

 

 

Mining

3.9

0.8

<0.4>

3.3

4.0

Oil & Gas

4.5

1.6

4.6

-

-

Other Mining

<8.0>

<1.0>

5.1

-

-

Industry Non-performing Loans ( MYR Million )

62.6

68.8

55.4

42.2

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

9.8

5.1

7.3

3.1

3.8

Exported-oriented Industries

15.5

3.0

11.1

<1.9>

-

Electrical & Electronics

17.8

3.6

13.4

3.0

-

Rubber Products

14.8

2.4

0.4

8.0

-

Wood Products

12.7

0.9

0.7

3.3

-

Textiles & Apparel

<11.7>

<4.4>

12.6

<10.1>

-

Domestic-oriented Industries

9.7

6.9

5.0

5.3

-

Food, Beverages & Tobacco

3.8

7.7

4.8

5.6

-

Chemical & Chemical Products

14.6

6.9

1.7

9.2

-

Plastic Products

13.5

18.6

21.3

<3.6>

-

Iron & Steel

2.7

<6.7>

<6.9>

17.5

-

Fabricated Metal Products

29.2

<7.5>

20.0

26.2

-

Non-metallic Mineral

<4.8>

<6.0>

<1.9>

6.6

-

Transport Equipment

8.6

10.4

5.3

<19.0>

-

Paper & Paper Products

2.3

4.6

4.1

14.9

-

Crude Oil Refineries

<2.4>

8.2

12.1

8.6

-

Industry Non-Performing Loans ( MYR Million )

7,765.4

6,035.6

6,181.3

6,366.2

-

% of Industry Non-Performing Loans

17.3

12.7

12.7

14.1

-

 

 

 

 

 

 

Construction

<1.5>

<1.6>

<0.5>

5.2

6.3

Industry Non-Performing Loans ( MYR Million )

5,547.7

5,172.7

5,527.3

5,116.7

-

% of Industry Non-Performing Loans

12.4

10.9

11.4

11.3

-

 

 

 

 

 

 

Services

6.8

6.6

7.2

9.0

8.6

Electric, Gas & Water

8.1

5.5

5.2

4.6

5.0

Transport, Storage & Communication

8.5

6.3

5.2

7.6

7.8

Wholesale, Retail, Hotel & Restaurant

7.1

8.0

7.1

11.6

10.0

Finance, Insurance & Real Estate

6.3

7.0

7.7

10.7

9.2

Government Services

6.5

7.6

9.8

4.6

8.6

Other Services

4.9

5.0

4.7

5.0

5.9

Industry Non-Performing Loans ( MYR Million )

8,913.7

8,716.8

11,593.2

10,207.8

-

% of Industry Non-Performing Loans

19.9

18.4

23.9

22.6

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

INDUSTRY COMMENTS

 

MSIC CODE

2413 : Manufacture of plastics in primary forms and of synthetic rubber

2520 : Manufacture of plastic products

 

 

INDUSTRY :

CHEMICAL


The chemical products industry is essentially a supporting industry, supplying intermediates and inputs to the end-user industries such as agriculture, electronics, automotive, construction-related industry and personal care products. The chemicals and chemical products industry, including agricultural and industrial chemicals, cosmetics and toiletry products, paint and soaps, is a significant contributor to the manufacturing sector. The growth of the industry is also highly dependent on the performance of the other sectors of the economy.


Despite higher crude oil prices, output of the industry grew strongly by 9.2% (January-June 2006: 1.7%), which boosted the industry's share to 10.0% of the overall manufacturing sector during the period. The basic chemicals industry recorded solid growth of 11.8% (January-June 2006: 1.3%) largely due to higher production of industrial gases, following increased activities in other domestic manufacturing industries and stronger external demand. In January 2007, import for chemicals and chemical products stand at RM3.13 billion.


The exports of chemicals grew strongly by 31.8% in 2007 (January-June 2006: -3.6%) due to strong demand for organic and inorganic chemicals, particularly from China and Thailand. Meanwhile, steady demand from ASEAN, China and Japan saw significant growth of 16.8% (2007) in exports of essential oils, perfumes and cleaning preparations (January- June 2006: 11.7%).


The chemical products industry is expected to grow in tandem with the overall growth of other manufacturing of the economy. Besides that, the chemical and chemical products industry raises investment to improve efficiency and increase productivity to meet stronger demand. In addition, the Government's emphasis on high technology and higher-skilled projects is expected to increase investment in high value-added projects. Strong external demand for resource-based products and the improvement in the construction-related industries would further lend support to the expansion of chemical sector.

 

 

OVERALL INDUSTRY OUTLOOK : Strong Growth

 

COMMENTS

 


Incorporated in 1993, the SC is principally engaged in manufacturing and trading of grafted copolymerized cross linking polyethylene resins. The SC is a private limited company and it has a total paid up capital of RM1million. The immediate and ultimate holding company is Plastrade Enterprise Sdn Bhd. Being well backed by its established company, the SC is expected to enjoy timely financial assistance if the needs arise. With its long track record in the industry, the SC should have developed its own image and reputation over times.


Over the years, the SC has built up an extensive network in the market. We noted that the SC's major concentration is on the overseas market as 95% of its products are exported to Argentina, Australia, Taiwan, Thailand and etc in order to capture higher market shares. Being an international player, the SC is subjected to certain inherent risks of foreign currencies fluctuation and stiff competition from the international market. As a whole, the SC's business risk is moderate. Presently, there are 30 employees in its business operations.


Duirng the financial year ended 2006, the SC's turnover has increased 44.82% to RM15.03million, which led to pre-tax profit of RM130,641. Return on shareholders' funds was low, indicating that the SC was inefficient in utilising its funds to generate returns. The SC possesses an adequate liquidity position and a low gearing ratio, this shows that the SC faces low financial risk.


Apart from sourcing its raw materials locally, the SC also imports from overseas suppliers. Thus, it eliminates the risk of dependency on deliveries from a number of key suppliers and shortage of its raw materials.


Based on our databank, the SC's overall payment habit is good and the SC is clear of any litigation.


The industry remains robust and its upward trend is likely to sustain in the near term. With the promising outlook of the industry performance, the SC should adopt more competitive strategies in order to retain its market position and compete with other international players in the same field.


In view of the above, we recommend credit be granted to the SC normally.

 


PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.

PLEXTECH (MALAYSIA) SDN BHD

For The Year Ended 31-December-2006



 

2006

2005

 

MYR

MYR

TURNOVER

15,033,098

10,380,141

 

==========

==========

PROFIT/(LOSS) FROM OPERATIONS

130,641

218,220

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

130,641

218,220

Taxation

-

<6,209>


PROFIT/(LOSS) AFTER TAXATION

------------
130,641

------------
212,011

 

 

 


PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

------------
130,641

------------
212,011

 

 

 


PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD

------------
130,641

------------
212,011

As previous reported

1,195,616

983,605


As restated

------------
1,195,616

------------
983,605

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,326,257

1,195,616


RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD

------------
1,326,257
==========

------------
1,195,616
==========

RETAINED BY: The Company

1,326,257

1,195,616

 

------------
1,326,257
==========

------------
1,195,616
==========

INTEREST EXPENSE (as per notes to PL)

 

 

Bank overdraft

12,657

12,131

Interest on trust receipts

119,303

105,459

bankers acceptance

17,224

33,009

 

------------
149,184
==========

------------
150,599
==========

 

 

BALANCE SHEET

 

 

PLEXTECH (MALAYSIA) SDN BHD

As At 31-December-2006

 

 

 

 

2006

2005

 

MYR

MYR

 

 

 

ASSET EMPLOYED:

 

 

FIXED ASSETS

321,246

466,040

 

 

 

TOTAL LONG TERM ASSETS

------------
321,246

------------
466,040

 

 

 

CURRENT ASSETS

 

 

      Stocks

879,236

1,126,842

      Trade debtors

3,595,208

3,535,658

      Other debtors, deposits & prepayments

1,491,807

581,811

      Cash & bank balances

173,931

579,354

      tax recoverable

124,630

126,102

TOTAL CURRENT ASSETS


------------
6,264,812


------------
5,949,767

 

 

 

CURRENT LIABILITIES

 

 

      Trade creditors

1,010,915

1,244,219

      Other creditors & accruals

437,436

440,289

      Bank overdraft

185,878

197,088

      Other borrowings

1,419,183

1,494,900

      Bill & acceptances payable

-

661,000

      Amounts owing to holding companies

1,156,389

132,695

      Amounts owing to director

50,000

50,000

TOTAL CURRENT LIABILITIES

------------
4,259,801

------------
4,220,191

NET CURRENT ASSETS/(LIABILITIES)

------------
2,005,011

------------
1,729,576

TOTAL NET ASSETS

------------
2,326,257
==========

------------
2,195,616
==========

 

 

 

FINANCED BY:

 

 

 

 

 

SHARE CAPITAL

 

 

      Ordinary share capital

1,000,000

1,000,000

 

 

 

TOTAL SHARE CAPITAL

------------
1,000,000

------------
1,000,000

 

 

 

RESERVES

 

 

      Retain profit/(Accumulated loss) carried forward

1,326,257

1,195,616

 

 

 


TOTAL RESERVES

------------
1,326,257

------------
1,195,616


SHAREHOLDERS' FUNDS/EQUITY


------------
2,326,257


------------
2,195,616

 

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

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

 

2,326,257

2,195,616

 

==========

==========

 

 

 

 

 

 

FINANCIAL RATIOS

 

 

PLEXTECH (MALAYSIA) SDN BHD

As At 31-December-2006

 

 

 

 

2006

2005

 

MYR

MYR

 

 

 

 

 

 

TYPES OF FUNDS

 

 

      Cash

173,931

579,354

      Net Liquid Funds

<11,947>

382,266

      Net Liquid Assets

1,125,775

602,734

      Net Current Assets/(Liabilities)

2,005,011

1,729,576

      Net Tangible Assets

2,326,257

2,195,616

      Net Monetary Assets

1,125,775

602,734

 

 

 

BALANCE SHEET ITEMS

 

 

      Total Borrowings

1,605,061

1,691,988

      Total Liabilities

4,259,801

4,220,191

      Total Assets

6,586,058

6,415,807

      Net Assets

2,326,257

2,195,616

      Net Assets Backing

2,326,257

2,195,616

      Shareholders" Funds

2,326,257

2,195,616

      Total Share Capital

1,000,000

1,000,000

      Total Reserves

1,326,257

1,195,616

 

 

 

LIQUIDITY(Times)

 

 

      Cash Ratio

0.04

0.14

      Liquid Ratio

1.26

1.14

      Current Ratio

1.47

1.41

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

      Stock Ratio

21

40

      Debtors Ratio

87

124

      Creditors Ratio

25

44

 

 

 

SOLVENCY RATIOS (Times)

 

 

      Gearing Ratio

0.69

0.77

      Liabilities Ratio

1.83

1.92

      Times Interest Earned Ratio

1.88

2.45

 

 

 

PERFORMANCE RATIO (%)

 

 

      Operating Profit Margin

0.87

2.10

      Net Profit Margin

0.87

2.04

      Return On Net Assets

12.03

16.80

      Return On Capital Employed

11.14

15.41

      Return On Shareholders' Funds/Equity

5.62

9.66

      Dividend Pay Out Ratio (Times)

0

0

 

 

 

NOTES TO ACCOUNTS

 

 

      Contingent Liabilities

0.00

0.00

 

 

 

 

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions