MIRA INFORM REPORT

 

 

Report Date :

31.08.2012

 

IDENTIFICATION DETAILS

 

Name :

SCIENTEX PACKAGING FILM SDN BHD

 

 

Formerly Known As :

PETTEX RESINS SDN BHD (28/11/1995)

 

 

Registered Office :

Corporate Office, Scientex Industrial Bhd, Jalan Utas 15/7, 40000 Shah Alam, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.07.2011

 

 

Date of Incorporation :

04.01.1993

 

 

Com. Reg. No.:

255035-P

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Stretch Film, Stretch Hood and Silage Film

 

 

No. of Employees :

370

 

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 :

No Complaints

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable



EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

255035-P

COMPANY NAME

:

SCIENTEX PACKAGING FILM SDN BHD

FORMER NAME

:

PETTEX RESINS SDN BHD (28/11/1995)

INCORPORATION DATE

:

04/01/1993

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

CORPORATE OFFICE, SCIENTEX INDUSTRIAL BHD, JALAN UTAS 15/7, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 4, JALAN SUNGAI PINANG 4/3, SECTION 4 ,TAMAN PERINDUSTRIAN PULAU INDAH, 42920 PELABUHAN KELANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31613000

FAX.NO.

:

03-31011522

EMAIL

:

info@scientex.com.my

WEB SITE

:

www.scientex.com.my

CONTACT PERSON

:

YAU KUAN YEE ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

25203

PRINCIPAL ACTIVITY

:

MANUFACTURING OF STRETCH FILM, STRETCH HOOD AND SILAGE FILM

AUTHORISED CAPITAL

:

MYR 25,000,000.00 DIVIDED INTO 
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 20,000,000.00 DIVIDED INTO 
ORDINARY SHARES 20,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 323,516,893 [2011]

NET WORTH

:

MYR 98,544,472 [2011]

M1000 OVERALL RANKING

:

874[2009]

M1000 INDUSTRY RANKING

:

45[2009]

 

 

 

STAFF STRENGTH

:

370 [2012]

BANKER (S)

:

HSBC BANK MALAYSIA BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The SC is principally engaged in the (as a / as an) manufacturing of stretch film, stretch hood and silage film.

 

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

According to the Malaysia 1000 publication, the SC's ranking are as follows:

 

 

 

 

YEAR

2009

2008

 

OVERALL RANKING

874

860

 

INDUSTRY RANKING

45

45

 

 

The immediate holding company of the SC is SCIENTEX BHD, a company incorporated in MALAYSIA.

 

The ultimate holding company of the SC is SCIENTEX INCORPORATED BERHAD, a company incorporated in MALAYSIA.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

SCIENTEX BHD

JALAN UTAS 15/7, P O BOX 7040, 40913 SHAH ALAM, SELANGOR, MALAYSIA.

7867

20,000,000.00

100.00

 

 

 

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

------

 

 

 

20,000,000.00

100.00

 

 

 

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

=====

 

+ Also Director

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. GAN KOK KHYE

Address

:

22A, JALAN M17, TAMAN MERBOK, BUKIT BARU, 75450 AIR KEROH, MELAKA, MALAYSIA.

IC / PP No

:

6830538

New IC No

:

620816-04-5031

Date of Birth

:

16/08/1962

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

03/04/2002

 

 

 

Qualification

:

B.A. (HONS) BUSINESS STUDIES, NORTH EAST LONDON POLYTECHNIC, UK IN 1985.

Working Experience

:

JOINING WOVENTEX IN 1990, ATTACHED TO GENERAL EDIBLE OIL S/B, AS A MARKETING EXECUTIVE, FROM 1985-1988. JOINED MALACCA SECURITIES S/B AS AN ADMINISTRATIVE MANAGER FROM 1988-1989. FROM 1989-1990, HE WAS WITH QUATARI (M) S/B, A CO WHICH IS PRINCIPALLY INVOLVED IN PLANTATION BUSINESS AS A MANAGER IN CHARGE OF GENERAL ADMINISTRATION, ACCOUNTING & FINANCE.

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHOO SENG HONG

Address

:

50, JALAN SETIA DAMAI, U13/14C, SETIA ALAM, SECTION U13, 40170 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

A0858932

New IC No

:

680210-10-5057

Date of Birth

:

10/02/1968

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

23/12/2002

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. LIM PENG JIN

Address

:

559, JALAN TRANQUERAH, 75200 MELAKA, MELAKA, MALAYSIA.

IC / PP No

:

A0809720

New IC No

:

671009-04-5107

Date of Birth

:

09/10/1967

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

30/11/1993

 

 

 

Qualification

:

B.SC (HONS) CHEMICAL ENGINEERING, UNIVERSITY OF TOKYO, JAPAN IN 1990.

Working Experience

:

ATTACHED TO YAMATO CHEMICAL INDUSTRY CO LTD & SHIN-ETSU CHEMICAL CO LTD IN JAPAN WHICH ARE PRINCIPALLY INVOLVED IN MANUFACTURING & DISTRIBUTING OF PVC & OTHER PLASTICS PRODUCT IN JAPAN, FOR A YEAR BEFORE JOINING SIB IN MARCH 1991.

 

DIRECTOR 4

 

Name Of Subject

:

MR. LIM TECK MENG

Address

:

559, JALAN TENGKERA, 75200 MELAKA, MELAKA, MALAYSIA.

IC / PP No

:

4040088

New IC No

:

370515-04-5119

Date of Birth

:

15/05/1937

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

18/09/2002

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

YAU KUAN YEE

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

LIM PENG JIN

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

TAN HONG KUN

 

Position

:

FINANCE MANAGER

 

 

 

 

 

4)

Name of Subject

:

PEE CHIN HOCK

 

Position

:

GENERAL MANAGER

 

 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG

Auditor' Address

:

LOT 1, MENARA PERTAM, JALAN BBP 2, TAMAN BATU BERENDAM PUTRA, 6TH FLOOR, 75350 BATU BERENDAM, MELAKA, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. NG BOON NGEE

 

IC / PP No

:

A3537006

 

New IC No

:

761114-14-5344

 

Address

:

5, JALAN PUTERI 6/21, BANDAR PUTERI, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

2)

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

:

04/09/1998

Description Of Charge

:

AGREEMENT

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL BILLS, DOCUMENTS OF TITLE, TRANSPORTATION DOCUMENTS, INSURANCE, POLICIES & OTHER DOCUMENTS REPRESENTING TO GOODS

 

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD
17-23, JALAN SULTAN, 46200 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 10/09/1998

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

08/02/2002

Description Of Charge

:

N/A

 

Amount Secured

:

RM8,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

Form 40 Dated 08/02/2002

Registered and Numbered 2 In The Register of Charges

 


ENCUMBRANCE 3

Date of Creation

:

22/06/2004

Description Of Charge

:

AGREEMENT

 

Amount Secured

:

RM5,000,000.00

Description Of Property Affected

:

ALL BILLS, DOCUMENTS OF TITLE, TRANSPORTATION DOCUMENTS, INSURANCE POLICIES & OTHER DOCUMENTS REPRESENTING TO GOODS

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

Form 40 Dated 07/07/2004

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

 

Import Countries

:

SINGAPORE,UNITED ARAB EMIRATES



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

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

RUSSIA, AUSTRALIA, ASIA

Credit Term

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

PACKAGING INDUSTRIES

 

OPERATIONS

 

Products manufactured

:

STRETCH FILMS, STRETCH HOODS AND SILAGE FILMS

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

2007

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

370

360

340

330

300

300

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of stretch film, stretch hood and silage film.

The SC's stretch wrap film is available in both Hand Wrap and Machine Wrap types with core sizes of 1.5", 2" and 3". Machine wrap is available in both conventional stretch and power pre-stretch versions. 

Besides that its stretch wrap film can be applied to numerous industries, such as, food & beverages, cans, bricks and ceramic, paper products, electronic products, PET/plastic containers, chemicals and others. 

The SC's film used for specialty applications such as UV film, mini rolls, banding film and silage film is custom-made. 

 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

603 316 13000

Current Telephone Number

:

03-31613000

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 4 JALAN SUNGAI PINANG 4/3 SECTION 4, TAMAN PERINDUSTRIAN PULAU INDAH 42920 PE MALAYSIA

Current Address

:

LOT 4, JALAN SUNGAI PINANG 4/3, SECTION 4 ,TAMAN PERINDUSTRIAN PULAU INDAH, 42920 PELABUHAN KELANG, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


we contacted one of the staff from HR Department of SC and she provided some information on the SC.

The address provided is incomplete.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

16.06%

]

 

Return on Net Assets

:

Acceptable

[

17.20%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC's management have been efficient in controlling its operating costs. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

20 Days

]

 

Debtor Ratio

:

Favourable

[

11 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

[

0.65 Times

]

 

Current Ratio

:

Unfavourable

[

0.89 Times

]

 

 

 

 

 

 

 

 

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

81.41 Times

]

 

Gearing Ratio

:

Favourable

[

0.24 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. 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 : STABLE

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

INDUSTRY ANALYSIS

 

MSIC CODE

25203 : Manufacture of plastic bags and films

 

 

INDUSTRY :

MANUFACTURING

 

 

 


The manufacturing sector is expected to be driven by higher value-added activities in Malaysia.The GDP growth for first quarter 2012 indicating manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia recorded a 12% jump in approved investments in the manufacturing sector in the first quarter of 2012 compared with the corresponding period 2011. According to Federation of Malaysian Manufacturers (FMM), manufacturing sector expected to improve in the third quarter 2012 despite concerns over external developments and the rising cost of production.


The rubber products sub-sector is expected to remain resilient supported by continuous improvements in medical and healthcare standards in emerging markets as well as demand from niche markets such as the oil and gas sector for rubber hoses. Malaysia rubber exports are forecast to grow at 10%, at the end of 2012 driven by global demand for medical gloves as well as rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber shipments in Malaysia due to hospitals and clinics place more intrest on rising health and hygiene awareness.


The Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.


Chemical production are expected to show 6.2% in year 2012 and 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.


According to Malaysian Iron and Steel Industry Federation, first half of 2012 would remain weak for the local steel industry due to eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries. At first quarter 2012, the average local steel price is trading atRM2,300 per tonne compared with the average international price of US$740 (RM2,331) per tonne.


According to the Department of Statistics, Malaysia during the first quarter 2012, the manufacturing output increased due to activities in major sub-sectors such as petroleum, chemical, rubber and plastic products (10.5 %), and non-metallic mineral products, basic metal and fabricated metal products (3.9 %). Meanwhile, it's also announced that the manufacturing sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared with RM47.7 billion in May 2011. The Industrial Production Index (IPI ) increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %). 


Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such as solar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1993, the SC is a Private Limited company, focusing on manufacturing of stretch film, stretch hood and silage film. With its long establishment in the market, the SC has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. The SC is well backed by a listed company shareholders which would stimulate further growth for the SC. Hence, the potential growth of the SC is positive. The SC is a large entity with strong capital position. Thus, we are confident with the SC's business and its future growth prospect.


Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to moderate commercial risk. The SC is a fairly large and rapidly growing company with over 370 staff in its operations Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 98,544,472, the SC should be able to maintain its business in the near terms.


Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. Investigation revealed that the SC's raw materials are sourced from both local and overseas suppliers. Thus, it is affected by foreign currency fluctuation. Overall the SC has a good control over its resources.


The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. As the SC is long presence in the market, it should have acquired competitive edge against other players in the same fields. Hence, the SC is expected to benefit from the favourable outlook of the industry.


Based on the above condition, we recommend credit be granted to the SC promptly.

PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

SCIENTEX PACKAGING FILM SDN BHD

 

Financial Year End

31/07/2011

31/07/2010

31/07/2009

31/07/2008

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

323,516,893

298,231,343

231,102,190

334,562,759

Other Income

1,586,422

4,300,044

-

-

 

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

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

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

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

Total Turnover

325,103,315

302,531,387

231,102,190

334,562,759

Costs of Goods Sold

<294,486,323>

<272,934,001>

-

-

 

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

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

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

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

Gross Profit

30,616,992

29,597,386

-

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

16,994,192

14,549,965

12,824,959

10,844,551

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

16,994,192

14,549,965

12,824,959

10,844,551

Taxation

<1,165,187>

<1,099,713>

<1,043,293>

<480,000>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

15,829,005

13,450,252

11,781,666

10,364,551

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

73,584,246

67,133,625

67,851,590

57,486,670

Prior year adjustment

1,248,000

-

-

-

 

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

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

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

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

As restated

74,832,246

67,133,625

67,851,590

57,486,670

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

90,661,251

80,583,877

79,633,256

67,851,221

- General

369

369

369

369

DIVIDENDS - Ordinary (paid & proposed)

<12,250,000>

<7,000,000>

<12,500,000>

-

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

78,411,620

73,584,246

67,133,625

67,851,590

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Term loan / Borrowing

-

208,449

388,307

1,050,794

Others

211,337

114,268

548,490

533,038

 

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

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

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

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

 

211,337

322,717

936,797

1,583,832

 

BALANCE SHEET

 

 

 

SCIENTEX PACKAGING FILM SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

99,304,588

104,352,937

107,566,247

121,265,554

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Subsidiary companies

8,300,000

8,300,000

-

-

Investments

90,000

90,000

90,000

90,000

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

8,390,000

8,390,000

90,000

90,000

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

107,694,588

112,742,937

107,656,247

121,355,554

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

17,422,105

13,799,596

20,202,208

19,864,533

Trade debtors

9,474,449

12,866,347

15,645,533

27,087,680

Other debtors, deposits & prepayments

2,542,417

772,090

1,536,094

978,675

Short term deposits

32,191,466

800,000

900,000

11,075,000

Amount due from holding company

-

-

1,027,656

-

Amount due from related companies

-

80,895

24,064

12,000

Cash & bank balances

1,465,422

3,587,089

920,069

1,361,107

Others

-

-

46,174

731,132

 

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

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

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

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

TOTAL CURRENT ASSETS

63,095,859

31,906,017

40,301,798

61,110,127

 

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

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

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

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

TOTAL ASSET

170,790,447

144,648,954

147,958,045

182,465,681

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

40,884,710

27,932,689

47,373,003

65,349,679

Other creditors & accruals

6,358,439

5,963,457

5,696,213

9,708,896

Short term borrowings/Term loans

1,837,500

5,886,000

4,482,400

6,061,875

Other borrowings

21,664,829

-

-

-

Bill & acceptances payable

-

7,782,662

-

2,727,229

Amounts owing to holding company

-

-

-

2,623,983

Amounts owing to related companies

-

-

38,847

153,801

Provision for taxation

2,936

63,912

-

-

Other liabilities

18,535

42,180

52,346

8,087

 

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

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

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

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

TOTAL CURRENT LIABILITIES

70,766,949

47,670,900

57,642,809

86,633,550

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<7,671,090>

<15,764,883>

<17,341,011>

<25,523,423>

 

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

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

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

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

TOTAL NET ASSETS

100,023,498

96,978,054

90,315,236

95,832,131

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

20,000,000

20,000,000

20,000,000

20,000,000

 

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

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

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

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

TOTAL SHARE CAPITAL

20,000,000

20,000,000

20,000,000

20,000,000

 

 

 

 

 

RESERVES

 

 

 

 

Share premium

100,000

100,000

100,000

100,000

Revaluation reserve

32,852

33,221

33,590

33,959

Retained profit/(loss) carried forward

78,411,620

73,584,246

67,133,625

67,851,590

 

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

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

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

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

TOTAL RESERVES

78,544,472

73,717,467

67,267,215

67,985,549

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

98,544,472

93,717,467

87,267,215

87,985,549

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

-

1,960,000

2,162,600

7,058,594

Retirement benefits provision

1,479,026

1,300,587

885,421

787,988

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,479,026

3,260,587

3,048,021

7,846,582

 

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

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

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

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

 

100,023,498

96,978,054

90,315,236

95,832,131

 

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

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

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

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

 

 

 

 

 

 

FINANCIAL RATIO

 

SCIENTEX PACKAGING FILM SDN BHD

 

TYPES OF FUNDS

 

 

 

 

Cash

33,656,888

4,387,089

1,820,069

12,436,107

Net Liquid Funds

33,656,888

4,387,089

1,820,069

12,436,107

Net Liquid Assets

<25,093,195>

<29,564,479>

<37,543,219>

<45,387,956>

Net Current Assets/(Liabilities)

<7,671,090>

<15,764,883>

<17,341,011>

<25,523,423>

Net Tangible Assets

100,023,498

96,978,054

90,315,236

95,832,131

Net Monetary Assets

<26,572,221>

<32,825,066>

<40,591,240>

<53,234,538>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

23,502,329

7,846,000

6,645,000

13,120,469

Total Liabilities

72,245,975

50,931,487

60,690,830

94,480,132

Total Assets

170,790,447

144,648,954

147,958,045

182,465,681

Net Assets

100,023,498

96,978,054

90,315,236

95,832,131

Net Assets Backing

98,544,472

93,717,467

87,267,215

87,985,549

Shareholders' Funds

98,544,472

93,717,467

87,267,215

87,985,549

Total Share Capital

20,000,000

20,000,000

20,000,000

20,000,000

Total Reserves

78,544,472

73,717,467

67,267,215

67,985,549

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.48

0.09

0.03

0.14

Liquid Ratio

0.65

0.38

0.35

0.48

Current Ratio

0.89

0.67

0.70

0.71

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

20

17

32

22

Debtors Ratio

11

16

25

30

Creditors Ratio

51

37

75

71

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.24

0.08

0.08

0.15

Liabilities Ratio

0.73

0.54

0.70

1.07

Times Interest Earned Ratio

81.41

46.09

14.69

7.85

Assets Backing Ratio

5.00

4.85

4.52

4.79

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

5.25

4.88

5.55

3.24

Net Profit Margin

4.89

4.51

5.10

3.10

Return On Net Assets

17.20

15.34

15.24

12.97

Return On Capital Employed

17.20

15.34

15.24

12.97

Return On Shareholders' Funds/Equity

16.06

14.35

13.50

11.78

Dividend Pay Out Ratio (Times)

0.77

0.52

1.06

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.65

UK Pound

1

Rs.88.10

Euro

1

Rs.69.83

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.