MIRA INFORM REPORT

 

 

Report Date :           

13.05.2011

 

IDENTIFICATION DETAILS

 

Name :

SIEGWERK MALAYSIA SDN BHD

 

 

Formerly Known As :

SICPA (MALAYSIA) SDN BHD

 

 

Registered Office :

6, Jalan Firma 1/5, Kawasan Perindustrian Tebrau, 81100 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2009

 

 

Date of Incorporation :

04.07.1970

 

 

Com. Reg. No.:

9744-V

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturing of Printing Inks, Marketing Of Graphic Art Supplies & Accessories

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Poor

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Malaysia

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

                                                                                                                                    

* Adopted abbreviations :       SC - Subject Company (the company enquired by you)          

                                          N/A - Not Applicable                                                            

 

                                         

                                                                                                                                    

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

9744-V

COMPANY NAME

:

SIEGWERK MALAYSIA SDN BHD

FORMER NAME

:

SICPA (MALAYSIA) SDN BHD (23/11/2005)
SICPA COLLIE (MALAYSIA) SDN BHD (29/05/1993)
COLLIE (MALAYSIA) SDN BHD (21/10/1989)
K.D. JAMES CHEN (MALAYSIA) SDN BHD (15/12/1976)

INCORPORATION DATE

:

04/07/1970

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

6, JALAN FIRMA 1/5, KAWASAN PERINDUSTRIAN TEBRAU, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

6, JALAN FIRMA 1/5, KAWASAN PERINDUSTRIAN TEBRAU, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

TEL.NO.

:

07-3547600

FAX.NO.

:

07-3523568

WEB SITE

:

www.siegwerk-group.com

CONTACT PERSON

:

PRAKASH ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

24222

PRINCIPAL ACTIVITY

:

MANUFACTURING OF PRINTING INKS, MARKETING OF GRAPHIC ART SUPPLIES & ACCESSORIES

AUTHORISED CAPITAL

:

MYR 33,523,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 28,523,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 29,282,900.00 DIVIDED INTO 
ORDINARY SHARES 4,400,000 CASH AND 600,000 OTHERWISE OF MYR 1.00 EACH.
PREFERENCE SHARES 24,274,100 CASH AND 8,800 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 62,025,131 [2009]

NET WORTH

:

MYR <7,915,599> [2009]

 

 

 

STAFF STRENGTH

:

160 [2011]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

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) manufacturing of printing inks, marketing of graphic art supplies & accessories.

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



The immediate holding company of the SC is SIEGWERK SINGAPORE PTE LTD, a company incorporated in SINGAPORE.

The ultimate holding company of the SC is SIEGWERK DRUCKFARBEN AG, a company incorporated in GERMANY.

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

Name

Address

IC/PP/Loc No

Shareholding

SIEGWERK SINGAPORE PTE LTD
[ORD 5,000,000 & PREF 24,282,900]

71, TOH GUAN ROAD EAST, 04-02 TCH, TECH CENTRE, 608598, SINGAPORE.

 

29,282,900.00

SIEGWERK SINGAPORE PTE LTD [ORD 5,000,000 & PREF 24,282,900]

71, TOH GUAN ROAD EAST, 04-02 TCH, TECH CENTRE, 608598, SINGAPORE.

 

29,282,900.00

 

 

 

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

 

 

 

58,565,800.00

 

 

 

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

+ Also Director

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. RALF WOLFGANG HILDENBRAND

Address

:

AM MUHLENBERG 9, D-53721, SIEGBURG, GERMANY.

IC / PP No

:

P5369285840

 

 

 

Date of Birth

:

10/05/1963

 

 

 

Nationality

:

DEUTSCH

Date of Appointment

:

15/06/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. PAUL THOMAS HARRAP

Address

:

184, JALAN TERASEK, BANDAR BARU, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

E3046163

 

 

 

Date of Birth

:

26/06/1972

 

 

 

Nationality

:

AUSTRALIAN

Date of Appointment

:

01/04/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. TAN CHIN HUAT

Address

:

202, JALAN PESONA 1, TAMAN PELANGI INDAH, 81800 ULU TIRAM, JOHOR, MALAYSIA.

IC / PP No

:

6934999

New IC No

:

621019-10-6473

Date of Birth

:

19/10/1962

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

31/10/2007

 

 

 

 

 

 

 

 

 

 

 

 




 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

PRAKASH

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

LEE PENG YONG

 

Position

:

FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

NG CHOON KEAT

 

Position

:

HEAD OF FINANCE

 

 

 

 

 

4)

Name of Subject

:

FARIDAH AWAB

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG

Auditor' Address

:

SUITE 11.2, MENARA PELANGI 2, JALAN KUNING, TAMAN PELANGI, LEVEL 11, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ALWIZAH AL-YAFII BTE AHMAD KAMAL

 

IC / PP No

:

A2751599

 

New IC No

:

740228-07-5492

 

Address

:

12, JALAN PANTAI 9/7, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING 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

:

25/10/1993

Description Of Charge

:

N/A

 

Amount Secured

:

RM23,200,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 7 In The Register of Charges

 

LEGAL CHECK AGAINST 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. 

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

Percentage

:

90%

Overseas

:

YES

Percentage

:

10%

Import Countries

:

CHINA,UNITED STATES,EUROPE

A trade enquiry with SC's suppliers revealed the following:

 

 

Supplier 1

Types of Supplies

:

CHEMICAL PRODUCTS

Time Known

:

N/A

Credit Term

:

90 DAYS

Mode of Payment

:

CHEQUES

Credit Limit

:

N/A

Mthly Avg Trx.

:

N/A

Outstanding amount

:

N/A

Payment Record

:

FAIR




According to our trade survey and the historical financial accounts, we are of the opinion 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, THAILAND, PHILIPPINES, AUSTRALIA, HONG KONG, INDIA, INDONESIA, PAKISTAN, CHINA, SOUTH
KOREA, TAIWAN, VIETNAM, CAMBODIA, MYANMAR

Credit Term

:

30 - 60 DAYS, 60 - 90 DAYS.

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

PRINTING INDUSTRIES

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

PRINTING INKS AND LITHOGRAPHIC CHEMICALS

 

 

 

Brand Name

:

SICPA , SIEGWERK

 

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2001

 

 

 

 

Competitor(s)

:

BROTHER INDUSTRIES TECHNOLOGY (M) SDN BHD
DIC (MALAYSIA) SDN BHD
EASTERN OXYGEN INDUSTRIES SDN BHD
SAKATA INX (MALAYSIA) SDN BHD
TOYOCHEM SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)SMI ASSOCIATION OF MALAYSIASMALL & MEDIUM ENTERPRISECHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

 

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2011

2010

2009

2008

2007

2006

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

160

150

148

154

132

125

 

 

 

 

Branch

:

YES

 

No of Branches

:

2

 

 

 

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of printing inks, marketing of graphic art supplies & accessories.

The SC specializes in :

* Printing ink additives and printing aids

* Printing lacquers

* Packaging inks for offset, flexographic and rotogravure printing. (Tobacco Packaging, Flexible Packaging, Corrugated Carton, Label Packaging, Sheed Fed & UV, Paper & Board & Decorative)

We were informed that the warehouse is located at the same premises to keep its products and materials.

The SC utilizes the advanced automated and semi-automated machineries to ensure production of high quality products.

Besides that the SC has branches located in Selangor and Penang.

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

:

073547600

Current Telephone Number

:

07-3547600

Match

:

YES

 

 

 

Address Provided by Client

:

6, JALAN FIRMA 1/5, KAWASAN PERINDUSTRIAN TEBRAU, 81100, JOHOR BAHRU, JOHOR.

Current Address

:

6, JALAN FIRMA 1/5, KAWASAN PERINDUSTRIAN TEBRAU, 81100 JOHOR BAHRU, JOHOR, 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

:

Erratic

[

2007 - 2009

]

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2009

]

Return on Shareholder Funds

:

Unfavourable

[

<3.66%>

]

Return on Net Assets

:

Unfavourable

[

2.52%

]


The fluctuating turnover reflects the fierce competition among the existing and new market players. The management had succeeded in turning the SC into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

Working Capital Control:

Stock Ratio

:

Unfavourable

[

81 Days

]

Debtors Ratio

:

Unfavourable

[

83 Days

]

Creditors Ratio

:

Favourable

[

54 Days

]


The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The high debtors' ratio could indicate that the SC was weak in its credit control. However, the SC could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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

[

0.78 Times

]

Current Ratio

:

Unfavourable

[

1.29 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

[

2.58 Times

]

Gearing Ratio

:

Unfavourable

[

<0.00 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'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:

The SC's turnover showed a volatile trend but its losses were lower when compared to the previous corresponding period. This could suggest that the SC was more efficient in its operating cost control and was more competitive. 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 was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

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

24222 : Manufacture of printing ink

 

 

INDUSTRY :

CHEMICAL

 

 

 


The chemicals industry is one of Malaysia's key industries, catering not only for its own national requirements but also exporting to a number of countries worldwide. The Malaysian chemicals and chemical products industry has become the second largest contributor to the manufactured exports sector, after the electrical and electronics industry.


The chemicals industry is important in Malaysia on account of the nation's substantial oil and gas feedstock. The Chemicals Industries Council of Malaysia (CICM) was established in 1978 as an industry group under the aegis of the Federation of Malaysian Manufacturers, to focus on the development of the chemicals industry. The primary objective of the CICM was to organise the chemicals industry in Malaysia into a cohesive group to represent Malaysia's interest at the ASEAN Chemicals Industries Club (ACIC).


The Malaysian chemicals industry witnessed 37% growth in domestic sales value in 2004 and sustained solid growth up until mid-2008. It expanded rapidly and had been forecast to reach sales figures of MYR60,816mn by 2009. 


Malaysia's balance of trade for the year January to December 2008 was MYR114,883mn. In the first five months of 2008, total trade was 11.2% up on the same period last year. These impressive figures were short-lived however, with significant decreases observed in the latter half of 2008 and early 2009, due to the impact of global economic crisis. The Industrial Production Index (IPI) in January 2009 was 20.2 % lower than it was in January 2008, following a sharp decline of 15.9% in December 2008.


The biggest drop was witnessed by chemicals and chemical products, which saw output contract by 29.9%. This is partly because the chemicals industry tends to be more sensitive to the economic cycle and so fares disproportionately badly in recessions.


Total exports are down from MYR100,115mn (US$27,858.48mn) in January-February 2008 to MYR77,856mn (US$21,662mn) in the same period of 2009. Similarly, there has been a fall in imports, with total incoming sales falling from MYR81,289mn (US$22,617mn) in January-February 2008 to MYR57,778mn (US$16,705mn) in January-February 2009.

 

 

OVERALL INDUSTRY OUTLOOK : Strong Growth

 


COMMENTS & RECOMMENDATION

 

 

Formed in 1970, the SC is a private limited company which involved in manufacturing of printing inks, marketing of graphic art supplies and accessories. With its long presence in the industry coupled with its vast experiences in the business, the SC should have built up certain goodwill with its clients over times. With an issued and paid up capital of RM29.28 million and strong backing from its holding company, the SC has the ability to further expand its business in the future.


Our investigation revealed that the SC serves both local and overseas clients. Penetrating into the overseas countries such as Singapore, Thailand, Philippines and etc has well diversified its business risk and at the same time added strength to its capabilities in capturing higher market shares. However, being a loss making company indicates that the SC faces difficulties in the market. The SC is a large entity with a work force of 160. Overall, the management capability of the SC is average.


In year 2009, the SC's turnover stood at RM62.02 million and it has generated pre-tax profit of RM289,325. However, return on shareholders' funds of the SC is relatively low, indicating that the SC did not generate an acceptable amount of profits based on its existing shareholders' funds. 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. With unfavourable net worth of RM7.91 million, its future performance is vulnerable.


Our investigation revealed that the SC sources 90% of its products locally while the rest are obtained from overseas suppliers. As an export-oriented company and being involved in import activities, the SC is exposed to foreign exchange risk.


Based on the historical financial data, we concluded that the SC's payment habit is fair. With poor financial condition, the SC may unable to pay its customers on time.


The chemical industry remains an important sector and a growth engine for manufacturing output. Moreover, the continuous efforts implemented by the government to boost the economic growth will further enhance the industry. 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.


Despite having a strong background, the SC however posted a red shareholders' fund. In view of this, we do not recommend any credit be granted to the SC.



PROFIT AND LOSS ACCOUNT

 

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

SIEGWERK MALAYSIA SDN BHD

For The Year Ended 31-December-2009

 

 

 

 

 

2009

2008

2007

 

MYR

MYR

MYR

 

 

 

 

 

 

 

 

TURNOVER

62,025,131

58,394,268

72,303,594

 

==========

==========

==========

PROFIT/(LOSS) FROM OPERATIONS

289,325

<3,758,423>

<8,726,920>

 

 

 

 

 

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

289,325

<3,758,423>

<8,726,920>

 

 

 

 


PROFIT/(LOSS) AFTER TAXATION

------------
289,325

------------
<3,758,423>

------------
<8,726,920>

 

 

 

 

 

 

 

 


PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

------------
289,325

------------
<3,758,423>

------------
<8,726,920>

 

 

 

 


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

------------
289,325

------------
<3,758,423>

------------
<8,726,920>

As previous reported

<95,343,963>

<91,585,540>

<82,858,620>

 

 

 

 


As restated

------------
<95,343,963>

------------
<91,585,540>

------------
<82,858,620>

 

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<95,054,638>

<95,343,963>

<91,585,540>

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD

------------
<95,054,638>
==========

------------
<95,343,963>
==========

------------
<91,585,540>
==========

RETAINED BY: The Company

<95,054,638>

<95,343,963>

<91,585,540>

 

 

 

 

 

 

 

 

 

------------
<95,054,638>
==========

------------
<95,343,963>
==========

------------
<91,585,540>
==========

INTEREST EXPENSE (as per notes to PL)

 

 

 

 

 

 

 

Bank overdraft

57,050

184,243

243,102

 

 

 

 

Hire purchase

-

-

32,532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bankers acceptance

125,803

261,092

317,561

Intercompany interest

-

1,847,765

1,242,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

------------
182,853
==========

------------
2,293,100
==========

------------
1,836,192
==========

 

 

 

 

 

 

 

BALANCE SHEET

 

SIEGWERK MALAYSIA SDN BHD

As At 31-December-2009



 

 

 

 

2009

2008

2007

 

MYR

MYR

MYR

 

 

 

 

 

ASSET EMPLOYED:

 

 

 

FIXED ASSETS

10,989,141

12,083,165

13,317,441

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LONG TERM ASSETS

------------
10,989,141

------------
12,083,165

------------
13,317,441

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stocks

13,782,822

12,535,293

17,745,303

 

 

 

 

 

 

Trade debtors

14,157,688

25,728,454

27,694,174

 

Other debtors, deposits & prepayments

2,994,881

1,368,320

691,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount due from holding company

-

106,529

223,787

 

Amount due from subsidiary companies

-

2,496,795

1,334,122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & bank balances

4,066,126

1,886,652

3,461,083

 

 

 

 

 

 

Tax recoverable

-

-

255,353

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS


------------
35,001,517


------------
44,122,043


------------
51,405,674

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

9,211,835

9,194,118

14,879,098

 

Other creditors & accruals

12,808,707

4,078,700

7,747,363

 

 

 

 

 

 

Bank overdraft

3,729

4,174,287

3,732,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bill & acceptances payable

5,193,032

4,874,000

7,527,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts owing to holding companies

-

48,400

558,323

 

Amounts owing to subsidiary companies

-

15,529,371

12,288,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

------------
27,217,303

------------
37,898,876

------------
46,732,691

NET CURRENT ASSETS/(LIABILITIES)

------------
7,784,214

------------
6,223,167

------------
4,672,983

TOTAL NET ASSETS

------------
18,773,355
==========

------------
18,306,332
==========

------------
17,990,424
==========

 

 

 

 

 

FINANCED BY:

 

 

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

4,282,900

4,282,900

4,282,900

 

 

 

 

 

TOTAL SHARE CAPITAL

------------
4,282,900

------------
4,282,900

------------
4,282,900

 

 

 

 

 

RESERVES

 

 

 

 

Share premium

62,333,139

62,333,139

62,333,139

 

Capital reserve

20,523,000

20,523,000

20,523,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retain profit/(Accumulated loss) carried forward

<95,054,638>

<95,343,963>

<91,585,540>

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


TOTAL RESERVES

------------
<12,198,499>

------------
<12,487,824>

------------
<8,729,401>


SHAREHOLDERS' FUNDS/EQUITY


------------
<7,915,599>


------------
<8,204,924>


------------
<4,446,501>

 

 

 

 

 

 

 

 

 

 


LONG TERM & DEFERRED LIABILITIES & PROVISIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan from holding & related companies

26,688,954

26,511,256

22,436,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS

------------
26,688,954

------------
26,511,256

------------
22,436,925

 

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

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

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

 

18,773,355

18,306,332

17,990,424

 

==========

==========

==========

 

 

 

 

 

 

 

FINANCIAL RATIOS

 

SIEGWERK MALAYSIA SDN BHD

As At 31-December-2009



 

 

 

 

 

2009

2008

2007

 

MYR

MYR

MYR

 

 

 

 

 

 

 

 

 

 

TYPES OF FUNDS

 

 

 

 

Cash

4,066,126

1,886,652

3,461,083

 

Net Liquid Funds

4,062,397

<2,287,635>

<271,349>

 

Net Liquid Assets

<5,998,608>

<6,312,126>

<13,072,320>

 

Net Current Assets/(Liabilities)

7,784,214

6,223,167

4,672,983

 

Net Tangible Assets

18,773,355

18,306,332

17,990,424

 

Net Monetary Assets

<32,687,562>

<32,823,382>

<35,509,245>

 

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

3,729

4,174,287

3,732,432

 

Total Liabilities

53,906,257

64,410,132

69,169,616

 

Total Assets

45,990,658

56,205,208

64,723,115

 

Net Assets

18,773,355

18,306,332

17,990,424

 

Net Assets Backing

<7,915,599>

<8,204,924>

<4,446,501>

 

Shareholders" Funds

<7,915,599>

<8,204,924>

<4,446,501>

 

Total Share Capital

4,282,900

4,282,900

4,282,900

 

Total Reserves

<12,198,499>

<12,487,824>

<8,729,401>

 

 

 

 

 

LIQUIDITY(Times)

 

 

 

 

Cash Ratio

0.15

0.05

0.07

 

Liquid Ratio

0.78

0.83

0.72

 

Current Ratio

1.29

1.16

1.10

 

 

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

81

78

90

 

Debtors Ratio

83

161

140

 

Creditors Ratio

54

57

75

 

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0

<0.51>

<0.84>

 

Liabilities Ratio

<6.81>

<7.85>

<15.56>

 

Times Interest Earned Ratio

2.58

<0.64>

<3.75>

 

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

0.47

<6.44>

<12.07>

 

Net Profit Margin

0.47

<6.44>

<12.07>

 

Return On Net Assets

2.52

<8.00>

<38.30>

 

Return On Capital Employed

2.51

<6.52>

<31.72>

 

Return On Shareholders' Funds/Equity

<3.66>

45.81

196.26

 

Dividend Pay Out Ratio (Times)

0

0

0

 

 

 

 

 

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0.00

0.00

0.00

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.79

UK Pound

1

Rs.73.19

Euro

1

Rs.63.59

 

 

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

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

----

NB

New Business

----

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.