|
* Adopted abbreviations : SC -
Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
517543-H
|
|
COMPANY NAME
|
:
|
MAXWELL PHARMA SDN BHD
|
|
FORMER NAME
|
:
|
MAXWELL PHARMACY SDN BHD (15/04/2009)
|
|
INCORPORATION DATE
|
:
|
21/06/2000
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
339 JALAN TUANKU ABD RAHMAN, MEZZANINE FLOOR, 50100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
B2-02, PJ INDUSTRIAL PARK, JALAN KEMAJUAN, 46200 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-79547877
|
|
FAX.NO.
|
:
|
03-79543877
|
|
EMAIL
|
:
|
rachelle.lee@goe.com.my
|
|
WEB SITE
|
:
|
www.goe.com.my
|
|
CONTACT PERSON
|
:
|
CHEW SOON KEONG ( CEO )
|
|
INDUSTRY CODE
|
:
|
2423
|
|
PRINCIPAL
ACTIVITY
|
:
|
MANUFACTURE
& WHOLESALE OF PHARMACUETICAL & RELATED PRODUCT
|
|
AUTHORISED
CAPITAL
|
:
|
MYR 500,000.00
DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR 200,000.00
DIVIDED INTO
ORDINARY SHARES 200,000 CASH OF MYR 1.00 EACH.
|
|
SALES
|
:
|
MYR 2,399,589
[2009]
|
|
NET WORTH
|
:
|
MYR
<984,792> [2009]
|
|
STAFF STRENGTH
|
:
|
15 [2011]
|
|
BANKER (S)
|
|
PUBLIC BANK
BHD
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER
CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
FAIR
|
|
MANAGEMENT CAPABILITY
|
:
|
WEAK
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
HIGH
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
STRONG GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
NIL
|
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 &
wholesale of pharmacuetical & related product.
The SC is not listed on Bursa Malaysia (Malaysia
Stock Exchange).
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
MR. CHEW SOON KEONG +
|
41, JALAN SS 1/21, KAMPUNG TUNKU, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
|
471203-07-5389
2205712
|
100,000.00
|
|
MS. CHEW LYE LENG +
|
41, JALAN SS 1/21, KAMOUNG TUNKU, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
|
470115-07-5464
1851966
|
100,000.00
|
|
|
|
|
---------------
|
|
|
|
|
200,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. CHEW WEI LIN
|
|
Address
|
:
|
41, JALAN SS 1/21, KAMPUNG TUNKU, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
811203-14-5736
|
|
Date of Birth
|
:
|
03/12/1981
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
01/10/2010
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. CHEW SOON KEONG
|
|
Address
|
:
|
41, JALAN SS 1/21, KAMPUNG TUNKU, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
2205712
|
|
New IC No
|
:
|
471203-07-5389
|
|
Date of Birth
|
:
|
03/12/1947
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
21/06/2000
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MS. CHEW LYE LENG
|
|
Address
|
:
|
41, JALAN SS 1/21, KAMOUNG TUNKU, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
1851966
|
|
New IC No
|
:
|
470115-07-5464
|
|
Date of Birth
|
:
|
15/01/1947
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
21/06/2000
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
CHEW SOON KEONG
|
|
|
Position
|
:
|
CEO
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
LETCHUMY
|
|
|
Position
|
:
|
ADMIN MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
SAM & CO
|
|
Auditor' Address
|
:
|
29-2, PLAZA SINAR, JALAN 6/38D, TAMAN SRI SINAR, SEGAMBUT, 51200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. APPLASAMY S/O SUPPAROO
|
|
|
IC / PP No
|
:
|
5927339
|
|
|
New IC No
|
:
|
580628-02-5021
|
|
|
Address
|
:
|
63, JALAN KANGSAR, TAMAN RAINBOW, OFF JALAN IPOH,
51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
PUBLIC BANK 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
|
:
|
17/06/2005
|
|
Description Of Charge
|
:
|
|
FACILITIES AGREEMENT, DEED ASSIGNMENT & POWER OF ATTORNEY
|
|
|
Amount Secured
|
:
|
RM72,000.00
|
|
Description Of Property Affected
|
:
|
|
UNIT LIGHT INDUSTRIAL LOT KNOWN AS UNIT P/B/2F/02 WITHIN STOREY 2 FLOOR
OF BUILDING BLOCK B DEVELOPMENT KNOWN AS PJ INDUSTRIAL PARK
|
|
|
Name & Address Of Chargee
|
:
|
|
PUBLIC BANK BHD
|
|
WISMA LIM FOO YONG, 86, JALAN RAJA CHULAN, GROUND FLOOR, 50200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 27/06/2005
|
|
Registered and Numbered 2 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
09/11/2005
|
|
Description Of Charge
|
:
|
|
FACILITIES AGREEMENT, EXISTING DEED ASSIGNMENT & EXISITING POWER
OF ATTORNEY
|
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
|
UNIT LIGHT INDUSTRIAL LOT KNOWN AS UNIT P/B/2F/02 WITHIN STOREY 2
FLOOR OF BUILDING BLOCK B DEVELOPMENT KNOWN AS PJ INDUSTRIAL PARK
|
|
|
Name & Address Of Chargee
|
:
|
|
PUBLIC BANK BHD
|
|
WISMA LIM FOO YONG, 86, JALAN RAJA CHULAN, GROUND FLOOR, 50200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 20/01/2006
|
|
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.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER CHECK AGAINST SC
* We have checked through the SC 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 since 1990. Information was
provided by third party where the debt amount can be disputed. Please check
with creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
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 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
X
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
SINGAPORE
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT)
|
OPERATIONS
|
Products manufactured
|
:
|
|
JOJ/NATURAL/PRIMOSE/ROSE/ROSA T E OILS
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
ASIA
PHARMACEUTICAL PRODUCTS SDN BHD
|
|
BIOSIS GROUP BHD
|
|
HCM-HYGENIC CORPORATION (MALAYSIA) SDN BHD
|
|
HOVID BHD
|
|
UNOMEDICAL SDN BHD
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
|
MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
|
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
COMPANY
|
15
|
15
|
10
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacture &
wholesale of pharmacuetical & related product.
The SC's product concept is base on Natural Healing with Botanicals.
The SC undertakes research and development of its products base on all
natural plant extracts / concentrates with known healing properties like
Evening Primrose Oil / extracts, Natural Vitamin E, Rosehip Seed Oil /
extracts, Grape Seed Oil / extracts, Jojoba Oil etc.
The SC's products are safe and suitable for even the most sensitive skin.
The SC's products do not contain any animal & artificial ingredients,
harsh chemicals like SLS alcohol and others.
PROJECTS
No projects found in our databank
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
|
:
|
03-79547877
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
B2-02, PJ INDUSTRIAL PARK, JALAN KEMAJUAN, 46200 PETALING JAYA,
SELANGOR.
|
|
Current Address
|
:
|
B2-02, PJ INDUSTRIAL PARK, JALAN KEMAJUAN, 46200 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one
of the staff from the SC and she provided some information on the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
2007 - 2009
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2007 - 2009
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
35.03%
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
83.05%
|
]
|
The SC's turnover increased steadily as the demand for its products / services
increased due to the goodwill built up over the years. Higher losses before
tax during the year could be due to the higher operating costs incurred.
Although the SC's returns showed positive figures it is not reflective of the
true situation. The SC incurred losses during the year and its shareholders'
funds have turned red. The positive returns on shareholders' funds is the
result of losses divided by negative shareholders' funds. The SC's management
was inefficient in utilising the assets to generate returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
46 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
34 Days
|
]
|
|
Creditors
Ratio
|
:
|
Favourable
|
[
|
51 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
|
[
|
0.24 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.51 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
|
[
|
<17.38
Times>
|
]
|
|
Gearing Ratio
|
:
|
Unfavourable
|
[
|
<0.34
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's gearing was negative during the
year as its shareholders' funds was in the red. This means the SC is running
its business using borrowed money. We consider the SC as facing high
financial risks.
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 has high financial risks. If its shareholders do not inject more
capital into the company or if its business performance does not improve, its
going concern may be in question.
Overall financial condition of the SC : POOR
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
27.17
|
27.73
|
28.31
|
28.88
|
29.13
|
|
Gross Domestic Products ( % )
|
6.3
|
4.6
|
<0.5>
|
6.9
|
5.8
|
|
Domestic Demand ( % )
|
9.0
|
6.9
|
2.9
|
4.6
|
4.8
|
|
Private Expenditure ( % )
|
8.6
|
7.1
|
<2.7>
|
8.1
|
7.0
|
|
Consumption ( % )
|
9.0
|
8.4
|
0.7
|
6.7
|
6.3
|
|
Investment ( % )
|
7.1
|
1.5
|
<17.2>
|
15.2
|
10.2
|
|
Public Expenditure ( % )
|
10.1
|
6.5
|
5.2
|
3.8
|
2.8
|
|
Consumption ( % )
|
10.8
|
11.6
|
3.1
|
0.2
|
4.6
|
|
Investment ( % )
|
9.3
|
0.7
|
8.0
|
8.3
|
0.6
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
100,340
|
129,563
|
89,650
|
118,356
|
116,058
|
|
Government Finance ( MYR Million )
|
<19,948>
|
<34,462>
|
<28,450>
|
<40,482>
|
-
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.2>
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
|
Inflation ( % Change in Composite CPI)
|
2.0
|
<3.3>
|
<5.2>
|
5.1
|
-
|
|
Unemployment Rate
|
3.2
|
3.7
|
4.5
|
3.9
|
-
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
336
|
388
|
331
|
394
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
3.04
|
1.91
|
2.87
|
2.20
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
13.30
|
13.24
|
11.08
|
15.30
|
-
|
|
Average Base Lending Rate ( % )
|
6.72
|
6.72
|
5.53
|
5.70
|
-
|
|
Business Loans Disbursed( % )
|
9.1
|
11.6
|
10.5
|
14.7
|
-
|
|
Foreign Investment ( MYR Million )
|
33,426.0
|
23,261.4
|
22,156.8
|
22,517.9
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
43,337
|
41,599
|
41,578
|
-
|
-
|
|
Registration of New Companies ( % )
|
13.2
|
<4.0>
|
<0.1>
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
22,629
|
27,992
|
39,075
|
-
|
-
|
|
Liquidation of Companies ( % )
|
161.5
|
23.7
|
39.6
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
227,410
|
269,866
|
312,581
|
-
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
20,431
|
18,885
|
19,345
|
-
|
-
|
|
Business Dissolved ( % )
|
<61.4>
|
<7.6>
|
2.4
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
442.9
|
497.5
|
319.4
|
369.7
|
-
|
|
Cellular Phone Subscribers ( Million )
|
23.3
|
25.1
|
30.1
|
32.8
|
-
|
|
Tourist Arrival ( Million Persons )
|
20.9
|
21.5
|
23.6
|
24.0
|
25.0
|
|
Hotel Occupancy Rate ( % )
|
70
|
68
|
58
|
63
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
20.1
|
17.1
|
12.8
|
15.1
|
-
|
|
Bad Cheque Offenders (No.)
|
30,004
|
34,834
|
-
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
13,238
|
13,907
|
-
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<2.6>
|
5.1
|
-
|
-
|
-
|
|
INDUSTRIES ( % of Growth ):
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.1
|
3.6
|
0.4
|
3.4
|
4.5
|
|
Palm Oil
|
<0.6>
|
7.0
|
<1.1>
|
1.3
|
-
|
|
Rubber
|
1.0
|
<1.1>
|
<19.8>
|
9.9
|
-
|
|
Forestry & Logging
|
2.8
|
<1.5>
|
<5.9>
|
<1.3>
|
-
|
|
Fishing
|
5.2
|
4.0
|
5.5
|
4.1
|
-
|
|
Other Agriculture
|
7.0
|
5.9
|
9.0
|
6.6
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
487.3
|
393.0
|
413.7
|
508.4
|
-
|
|
% of Industry Non-Performing Loans
|
1.1
|
<2.0>
|
1.3
|
2.1
|
-
|
|
|
|
|
|
|
|
|
Mining
|
3.3
|
<0.8>
|
<3.8>
|
1.0
|
2.9
|
|
Oil & Gas
|
2.2
|
12.7
|
2.1
|
4.9
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
42.2
|
36.0
|
44.2
|
49.7
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
3.1
|
1.3
|
<9.4>
|
10.8
|
6.7
|
|
Exported-oriented Industries
|
<1.9>
|
2.7
|
<19.0>
|
12.1
|
-
|
|
Electrical & Electronics
|
3.0
|
2.4
|
<30.3>
|
27.4
|
-
|
|
Rubber Products
|
8.0
|
4.2
|
<10.1>
|
25.3
|
-
|
|
Wood Products
|
3.3
|
<6.0>
|
<24.1>
|
19.7
|
-
|
|
Textiles & Apparel
|
<10.1>
|
1.9
|
<19.5>
|
<1.3>
|
-
|
|
Domestic-oriented Industries
|
5.3
|
9.9
|
<9.8>
|
16.3
|
-
|
|
Food, Beverages & Tobacco
|
5.6
|
9.5
|
0.2
|
3.0
|
-
|
|
Chemical & Chemical Products
|
9.2
|
1.4
|
<7.7>
|
20.4
|
-
|
|
Plastic Products
|
<3.6>
|
6.5
|
<9.1>
|
2.4
|
-
|
|
Iron & Steel
|
17.5
|
16.8
|
<32.7>
|
30.0
|
-
|
|
Fabricated Metal Products
|
26.2
|
14.7
|
<2.5>
|
14.9
|
-
|
|
Non-metallic Mineral
|
6.6
|
8.3
|
<15.5>
|
20.2
|
-
|
|
Transport Equipment
|
<19.0>
|
27.1
|
<13.5>
|
36.5
|
-
|
|
Paper & Paper Products
|
14.9
|
8.6
|
<5.0>
|
20.5
|
-
|
|
Crude Oil Refineries
|
8.6
|
7.8
|
0.2
|
<11.4>
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,366.2
|
5,729.4
|
6,007.3
|
6,217.5
|
-
|
|
% of Industry Non-Performing Loans
|
14.1
|
16.8
|
18.3
|
23.8
|
-
|
|
|
|
|
|
|
|
|
Construction
|
4.6
|
2.1
|
5.8
|
4.9
|
4.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,116.7
|
4,149.8
|
3,241.8
|
4,038.5
|
-
|
|
% of Industry Non-Performing Loans
|
11.3
|
12.2
|
9.9
|
10.7
|
-
|
|
|
|
|
|
|
|
|
Services
|
9.7
|
7.3
|
2.6
|
6.5
|
5.3
|
|
Electric, Gas & Water
|
4.6
|
5.0
|
0.4
|
8.5
|
5.6
|
|
Transport, Storage & Communication
|
7.60
|
7.80
|
1.60
|
7.15
|
7.55
|
|
Wholesale, Retail, Hotel & Restaurant
|
11.6
|
10.0
|
2.8
|
4.7
|
5.2
|
|
Finance, Insurance & Real Estate
|
10.7
|
9.2
|
3.8
|
6.0
|
5.2
|
|
Government Services
|
4.6
|
8.6
|
2.0
|
6.7
|
1.9
|
|
Other Services
|
5.0
|
5.9
|
4.4
|
4.2
|
5.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
10,207.8
|
8,281.4
|
6,631.3
|
7,384.6
|
-
|
|
% of Industry Non-Performing Loans
|
22.6
|
24.3
|
20.2
|
25.7
|
-
|
|
* Estimate /
Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
2423 : Manufacture of pharmaceuticals, medicinal chemicals and
botanical products
|
|
|
|
|
INDUSTRY :
|
PHARMACEUTICAL
|
|
Malaysia's
pharmaceutical industry has become increasingly reputable. Along the years,
there was a significant transformation of the Malaysian pharmaceutical
industry; especially gaining momentum from the implementation of
regulations. Besides, the vast development in various aspects such as
management, hospital, marketing, community, manufacturing, academia,
research, regulatory and enforcement has changed the entire landscape of
the local pharmaceutical sector.
|
|
Valued at RM3.5 billion in 2007, the pharmaceutical market grew to RM3.8
billion in 2008 and jumped to RM4.2 billion in year 2009, on the back of
the US
subprime crisis. Driven by the changing demographics, with a growing
middle-class, as well as the rising expectations, the domestic industry is
projected to grow at a compound annual rate of 10 per cent. Currently,
domestic manufacturers dominate the scene for generics and OTC (over the
counter) products while MNCs (multi-national companies) reign strong in
branded/ethical drugs.
|
|
Nonetheless, efforts to provide healthcare including pharmaceutical care
are facing new challenges. Rising costs, constraints in financial budget,
inefficient health systems, huge disease burden, and the changing social,
technological, economic and political environment currently confront many
countries, including Malaysia.
The Ministry of Health has no option but to embrace change and ICT
(information and communication technology). Its pharmaceutical services
division has responded to this challenge by effectively applying innovative
and creative ideas to further improve the drug delivery system.
|
|
Regarding medicines access, the number of medicines on the market has
increased dramatically over the last two decades, bringing some novel
innovations but also considerable challenges in regulating the quality and
monitoring the rational use of medicines. On the regulatory front, up to
2009, the Drug Control Authority (DCA) had approved 12,626 prescription
medicines, 9,683 OTC items and 20,193 traditional products. The DCA had
also licensed 250 manufacturers, 374 importers and 962 wholesalers.
|
|
The pharmaceutical authority is mindful of creating a business-friendly
environment which in turn will stimulate the economy and to achieve high
income status in line with the prime minister's Government Transformation
Programme (GTP). On this, it is taking steps to reduce the processing time
for new licences from 21 to 10 days. With enhancement in IT system, licence
applications are now more efficient. In an era of speed, the division must
facilitate and be more responsive. Competitive edge is the driving force.
While enforcement is important to ensure that the laws are complied to
safeguard public interests but not over-regulation which can be burdensome
to the business community.
|
|
Anyway, audits and monitors will be conducted on suspiciously fast movement
and high sale of selected brands. Last year, 79 pharmacies were raided with
1,297 items valued at RM389,900 confiscated. The pharmacy enforcement also
took part in operations to reduce street crimes linked to drugs abuse and
diversion of psychotropics, ATS stimulants and narcotic derivatives sourced
from clinics and pharmacies.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Strong Growth
|
COMMENTS & RECOMMENDATION
Incorporated in 2000 as a private limited company, the SC is principally engaged
in manufacture and wholesale of pharmaceutical and related product. Having
been in the industry for over a decade, the SC has achieved a certain market
share and has built up a satisfactory reputation in the market. With a small
paid up capital of RM200,000, the SC should put more efforts on its business
to gain higher market share while competing aggressively in the market.
Besides catering to the local market, the SC also exports to neighboring
county, Singapore.
As it concentrates in both local and overseas markets, we believe that the SC
has the ability to lower its business risk to meet any uncertainties in the
local economy. However, being a loss making company indicates that the SC
faces difficulties in the market. Currently, the SC's management is headed by
its CEO, Chew Soon Keong, and supported by 15 manpower. An unfavourable
return on shareholders' funds implies that the SC's management capability is
weak.
Despite the higher turnover of RM2.39 million, the SC suffered pre-tax losses
of RM344,934 which reflected a highly competitive business environment. Due
to these losses, the SC has generated an unfavourable return on shareholders'
funds indicating that the management was inefficient in utilising its funds
to generate return. Besides, we noted that the SC's current liabilities well
exceed its current assets. Due to its weak liquidity position, the SC may
face working capital deficiency in meeting its short term financial
obligations if no fresh capital is injected into the SC. The high gearing
ratio clearly implied that the SC was supported by more debt than equity.
Thus, the SC is exposed to high financial risk.The SC's unfavourable
financial performance over the years has wiped out its shareholders' funds to
a deficit of RM984,792. Therefore, the SC as a going concern is much
dependent on its ability to generate sufficient cash flow and obtain
additional financing to meet its future obligations.
The SC sources its raw materials locally and internationally. Being involved
in import and export activities, the SC is subjected to the foreign currency
exchange risk and high operating costs which in turn may impair its
profitability.
Based on the historical financial data, we concluded that the SC's payment
habit is fair. The unfavourable creditors' ratio clearly implied a weak
credit control.
The industry is rapidly growing and continue to be attractive in the near
terms. However, the SC does not take any advantage from this favourable
condition as it is making losses in this few years. The SC should adopt more
competitive strategies to retain its business position in the market.
Based on the above unfavourable condition, we regard granting credit to the
SC to be quite risky. Hence, credit is not recommended.
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
MAXWELL PHARMA
SDN BHD
|
|
For The Year
Ended 30-09-2009
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
TURNOVER
|
2,399,589
|
1,454,882
|
1,423,659
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
<344,934>
|
<274,172>
|
<193,731>
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
<344,934>
|
<274,172>
|
<193,731>
|
|
|
|
|
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
<344,934>
|
------------
<274,172>
|
------------
<193,731>
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
<344,934>
|
------------
<274,172>
|
------------
<193,731>
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
<344,934>
|
------------
<274,172>
|
------------
<193,731>
|
|
As previous reported
|
<839,858>
|
<565,686>
|
<371,955>
|
|
|
|
|
|
|
As restated
|
------------
<839,858>
|
------------
<565,686>
|
------------
<371,955>
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
<1,184,792>
|
<839,858>
|
<565,686>
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
<1,184,792>
==========
|
------------
<839,858>
==========
|
------------
<565,686>
==========
|
|
RETAINED BY: The Company
|
<1,184,792>
|
<839,858>
|
<565,686>
|
|
|
------------
<1,184,792>
==========
|
------------
<839,858>
==========
|
------------
<565,686>
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
Term loan
|
7,111
|
9,825
|
8,126
|
|
Bank overdraft
|
10,458
|
11,154
|
15,365
|
|
|
|
|
|
|
Hire purchase
|
-
|
812
|
3,435
|
|
Other interest expenses
|
1,201
|
18,158
|
-
|
|
Paypal charges
|
-
|
509
|
-
|
|
|
------------
18,770
==========
|
------------
40,458
==========
|
------------
26,926
==========
|
BALANCE SHEET
|
MAXWELL PHARMA
SDN BHD
|
|
As At
30-09-2009
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
144,331
|
160,127
|
177,016
|
|
TOTAL LONG TERM ASSETS
|
------------
144,331
|
------------
160,127
|
------------
177,016
|
|
CURRENT ASSETS
|
|
|
|
|
|
Stocks
|
303,315
|
317,187
|
247,680
|
|
|
Trade debtors
|
221,260
|
347,994
|
74,298
|
|
|
Other debtors, deposits & prepayments
|
6,128
|
5,681
|
4,952
|
|
|
Cash & bank balances
|
19,534
|
8,182
|
698
|
|
|
Tax recoverable
|
18,865
|
17,800
|
11,000
|
|
TOTAL CURRENT ASSETS
|
------------
569,102
|
------------
696,844
|
------------
338,628
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
332,168
|
445,877
|
238,266
|
|
|
Other creditors & accruals
|
39,954
|
18,664
|
56,781
|
|
|
Hire purchase & lease creditors
|
-
|
-
|
4,919
|
|
|
Bank overdraft
|
229,266
|
143,424
|
170,512
|
|
|
Short term borrowings/Term loans
|
13,874
|
11,627
|
10,811
|
|
|
Amounts owing to director
|
490,922
|
259,672
|
261,176
|
|
|
Amount due to a shareholder
|
-
|
10,000
|
20,140
|
|
TOTAL CURRENT LIABILITIES
|
------------
1,106,184
|
------------
889,264
|
------------
762,605
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<537,082>
|
------------
<192,420>
|
------------
<423,977>
|
|
TOTAL NET ASSETS
|
------------
<392,751>
==========
|
------------
<32,293>
==========
|
------------
<246,961>
==========
|
|
FINANCED BY:
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
200,000
|
200,000
|
200,000
|
|
TOTAL SHARE CAPITAL
|
------------
200,000
|
------------
200,000
|
------------
200,000
|
|
RESERVES
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
<1,184,792>
|
<839,858>
|
<565,686>
|
|
TOTAL RESERVES
|
------------
<1,184,792>
|
------------
<839,858>
|
------------
<565,686>
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
<984,792>
|
------------
<639,858>
|
------------
<365,686>
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
Long term loans
|
92,041
|
107,565
|
118,725
|
|
|
Amount due to directors
|
500,000
|
500,000
|
-
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
592,041
|
------------
607,565
|
------------
118,725
|
|
|
------------
|
------------
|
------------
|
|
|
<392,751>
|
<32,293>
|
<246,961>
|
|
|
==========
|
==========
|
==========
|
FINANCIAL RATIOS
|
MAXWELL PHARMA
SDN BHD
|
|
As At
30-09-2009
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
19,534
|
8,182
|
698
|
|
|
Net Liquid Funds
|
<223,606>
|
<146,869>
|
<180,625>
|
|
|
Net Liquid Assets
|
<840,397>
|
<509,607>
|
<671,657>
|
|
|
Net Current Assets/(Liabilities)
|
<537,082>
|
<192,420>
|
<423,977>
|
|
|
Net Tangible Assets
|
<392,751>
|
<32,293>
|
<246,961>
|
|
|
Net Monetary Assets
|
<1,432,438>
|
<1,117,172>
|
<790,382>
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
335,181
|
262,616
|
304,967
|
|
|
Total Liabilities
|
1,698,225
|
1,496,829
|
881,330
|
|
|
Total Assets
|
713,433
|
856,971
|
515,644
|
|
|
Net Assets
|
<392,751>
|
<32,293>
|
<246,961>
|
|
|
Net Assets Backing
|
<984,792>
|
<639,858>
|
<365,686>
|
|
|
Shareholders" Funds
|
<984,792>
|
<639,858>
|
<365,686>
|
|
|
Total Share Capital
|
200,000
|
200,000
|
200,000
|
|
|
Total Reserves
|
<1,184,792>
|
<839,858>
|
<565,686>
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.02
|
0.01
|
0
|
|
|
Liquid Ratio
|
0.24
|
0.43
|
0.12
|
|
|
Current Ratio
|
0.51
|
0.78
|
0.44
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
46
|
80
|
64
|
|
|
Debtors Ratio
|
34
|
87
|
19
|
|
|
Creditors Ratio
|
51
|
112
|
61
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
<0.34>
|
<0.41>
|
<0.83>
|
|
|
Liabilities Ratio
|
<1.72>
|
<2.34>
|
<2.41>
|
|
|
Times Interest Earned Ratio
|
<17.38>
|
<5.78>
|
<6.19>
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
<14.37>
|
<18.84>
|
<13.61>
|
|
|
Net Profit Margin
|
<14.37>
|
<18.84>
|
<13.61>
|
|
|
Return On Net Assets
|
83.05
|
723.73
|
67.54
|
|
|
Return On Capital Employed
|
218.01
|
<190.39>
|
274.72
|
|
|
Return On Shareholders' Funds/Equity
|
35.03
|
42.85
|
52.98
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
