MIRA INFORM REPORT

 

 

Report Date :

24.12.2012

 

IDENTIFICATION DETAILS

 

Name :

FORTITECH ASIA PACIFIC SDN BHD

 

 

Registered Office :

Faber Imperial Court, Jalan Sultan Ismail, Level 15-2, 50250 Kuala Lumpur, Wilayah Persekutuan,

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

30.10.2002

 

 

Com. Reg. No.:

597394-T

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trading, manufacturing, research & development of human nutrition & other fortified products

 

 

No. of Employees :

60 [2012]

 

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 :

Good

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 – June 30th, 2012

                                                   

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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.

:

597394-T

COMPANY NAME

:

FORTITECH ASIA PACIFIC SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

30/10/2002

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

FABER IMPERIAL COURT, JALAN SULTAN ISMAIL, LEVEL 15-2, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 105, JALAN SATU, KAWASAN PERINDUSTRIAN OLAK LEMPIT, 42700 BANTING, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31823888

FAX.NO.

:

03-31823889

EMAIL

:

infoasiapacific@fortitech.com

WEB SITE

:

www.fortitech.com

CONTACT PERSON

:

BRIAN ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

10622

PRINCIPAL ACTIVITY

:

TRADING, MANUFACTURING, RESEARCH & DEVELOPMENT OF HUMAN NUTRITION & OTHER FORTIFIED PRODUCTS

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO 
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO 
ORDINARY SHARES 13,436,747 CASH AND 36,563,253 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 94,319,184 [2011]

NET WORTH

:

MYR 81,026,350 [2011]

 

 

 

STAFF STRENGTH

:

60 [2012]

BANKER (S)

:

HONG LEONG BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

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) trading, manufacturing, research & development of human nutrition & other fortified products.

 

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

 

The ultimate holding company of the SC is FORTITECH INC, a company incorporated in UNITES STATES.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

FORTITECH EUROPE APS

 

XLZ000019320

50,000,000.00

100.00

 

 

 

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

------

 

 

 

50,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

Name Of Subject

:

WALTER SCOTT BORISENOK

Address

:

217A BOGHT ROAD WATERVLIET, NEW YORK, UNITED STATES.

IC / PP No

:

017000935

 

 

 

Date of Birth

:

03/01/1957

 

 

 

Nationality

:

AMERICAN

Date of Appointment

:

07/11/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. M.CHANASEGARAN A/L S.MURUGASU

Address

:

NO.1,JALAN SS 18/1, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

581020-06-5169

Date of Birth

:

20/10/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

30/10/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

SAMUEL MARK SYLVETSKY

Address

:

872 HEREFORD WAY, NISKAYUNA, NEW YORK, UNITED STATES.

IC / PP No

:

450936079

 

 

 

Date of Birth

:

01/06/1959

 

 

 

 

 

 

Date of Appointment

:

07/11/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

RAMJIBHAI VSANGBHAI CHAUDHARI

Address

:

24 TRADITIONAL LANE, LOUDONVILLE, NEW YORK, UNITED STATES.

IC / PP No

:

421294982

 

 

 

Date of Birth

:

14/06/1939

 

 

 

Nationality

:

AMERICAN

Date of Appointment

:

07/11/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

Name Of Subject

:

WALTER ALEXANDER BORISENOK

Address

:

61 MILLER ROAD, LATHAM, NEW YORK, UNITED STATES.

IC / PP No

:

429186294

 

 

 

Date of Birth

:

10/11/1923

 

 

 

Nationality

:

AMERICAN

Date of Appointment

:

07/11/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

Name Of Subject

:

MS. LIM SECK WAH

Address

:

41 JALAN TAMING INDAH 2, TAMAN TAMING INDAH, BANDAR SG. LONG, 43000 KAJANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

591223-02-5430

Date of Birth

:

23/12/1959

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

30/10/2002

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

BRIAN

 

Position

:

GENERAL MANAGER

   

                                


 

 

AUDITOR

 

Auditor

:

SHAMSIR JASANI GRANT THORNTON

Auditor' Address

:

FABER IMPERIAL COURT, JALAN SULTAN ISMAIL, LEVEL 11, 50774 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

                              

                              

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. M.CHANASEGARAN A/L S.MURUGASU

 

 

 

 

 

New IC No

:

581020-06-5169

 

Address

:

NO.1,JALAN SS 18/1, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. LIM SECK WAH

 

 

 

 

 

New IC No

:

591223-02-5430

 

Address

:

41 JALAN TAMING INDAH 2, TAMAN TAMING INDAH, BANDAR SG. LONG, 43000 KAJANG, SELANGOR, MALAYSIA.

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HONG LEONG BANK BHD

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation. 

 

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

Percentage

:

60%

Overseas

:

YES

Percentage

:

40%

Import Countries

:

ASIA,INDIA,EUROPE,UNITED STATES



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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Percentage

:

60%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

40%

Export Market

:

INDIA, AUSTRALIA, ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

LETTER OF CREDIT (LC),TELEGRAPHIC TRANSFER (TT),CHEQUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



OPERATIONS

 

Products manufactured

:

MINERAL/VITAMINS, PRE-MIXED PRODUCTS

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2004

 

 

 

 

Competitor(s)

:

ALMER MALAYSIA SDN BHD
EHSANIKA SDN BHD
JAYA GLUCOSE (M) SDN. BHD.
KIMANIS FOOD INDUSTRIES SDN. BHD.
LFD MANUFACTURING SDN. BHD.

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

MALAYSIA FOOD & BEVERAGE INDUSTRY

 

 

 

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

60

53

60

56

46

45

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) trading, manufacturing, research & development of human nutrition & other fortified products.

The SC is part of the global network of manufacturing and distribution companies of Fortitech, Inc., the world leader in the development of custom nutrient systems for the food, beverage and pharmaceutical industries.

The SC's nutrient premix comprising ingredients from the following groups; vitamins, minerals, amino acids, botanicals, nucleotides, nutraceuticals and specialty nutrients.

Besides that the SC's manufacturing facility formulates and produces small and large volume fortified food premixes in liquids or solids.

We were informed that the SC's products are Hazard Analysis and Critical Control Points (HACCP) certified and meets (Halal) food permits or approved by the Islamic Law standards. 

The SC's food premixes are used for various food such as infant food, cereals, sport drinks, supplements, diet products, snack food, yogurt, confectionery, dairy products and others.



PROJECTS


No projects found in our databank 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

7013

Current Telephone Number

:

03-31823888

Match

:

NO

 

 

 

Address Provided by Client

:

LOT 105, JALAN SATU, KAWASAN PERINDUSTRIAN OLAK LEMPIT,42700,BANTING,SELANGOR.

Current Address

:

LOT 105, JALAN SATU, KAWASAN PERINDUSTRIAN OLAK LEMPIT, 42700 BANTING, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

we contacted one of the staff from the Admin Department. She provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

26.07%

]

 

Return on Net Assets

:

Favourable

[

31.25%

]

 

 

 

 

 

 

 

 

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

:

Unfavourable

[

88 Days

]

 

Debtor Ratio

:

Acceptable

[

59 Days

]

 

Creditors Ratio

:

Favourable

[

40 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The SC's management was quite efficient in handling its debtors. The SC's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

3.00 Times

]

 

Current Ratio

:

Favourable

[

4.86 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was nil as it did not pay any interest during the year. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. 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 : STRONG

 

 

 

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

10622 : Manufacture of glucose, glucose syrup, maltose, inulin

10622 : Manufacture of glucose, glucose syrup, maltose, inulin

 

 

INDUSTRY :

TRADING

 

 

 


The wholesale and retail trade sector grew 7.1% in the first half of the year 2011 supported by strong consumer spending amid favourable labour market conditions and sustained disposable income. This was reflected in the higher distributive trade index which increased 15.9%, with wholesale and retail trade indices increasing 19.2% and 7.8%, respectively. 


It is anticipated that the retail industry will grow 6.0 per cent in the year 2012.


Malaysia's retail sector for 2011 is expected to grow 6 per cent or RM81.59 billion worth of retail sales, similar to the year 2010, due to concerns of high oil prices, declining purchasing power and high cost of doing business. The Middle East and North Africa civil wars have caused the world oil prices to climb. This has led to further rise in the cost of running retail businesses, especially in terms of transportation cost. Many retailers have no choice but to pass the increased cost to end consumers. At the same time, natural disasters (tsunamis, floods, droughts, snow storms, tornadoes and earthquakes) that occurred in all parts of the world has also led to a shortage in the supply of food and raw materials. The phenomenon has pushed retail prices up.In addition, the continual removal of government subsidies since 2010 has pushed inflation upwards. Consequently, rising prices of retail goods contributed to an expectation of moderate performance.


During the first seven months of 2011, other consumption indicators such as imports of consumption goods and credit card spending increased 12.8% and 11.8%, respectively. Sales of motor vehicles declined 3% on account of supply chain disruptions following devastating March 2011 earthquake and tsunami in Japan.


Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.


Meanwhile, the Government has introduced the Retail Shop Transformation (TUKAR) programme. Under this programme, selected large format retailers will assist small retailers to improve their premises and layout which include attractive product display shelves, enhanced lighting and point-of-sales system to manage product inventory,

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth





CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 2002, the SC is a Private Limited company, focusing on trading, manufacturing, research & development of human nutrition & other fortified products. Having been in the industry for a decade, the SC has achieved a certain market share and has built up a good reputation in the market. It should have received supports from its regular customers. With an issued and paid up capital of RM50 million and strong shareholders' backing, the SC has the ability to further expand its business in the future.


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 lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. Being a moderate size company, the SC has a total workforce of 60 employees in its business operations. Overall, we regard that the SC's management capability is average. 


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. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 81,026,350, the SC should be able to maintain its business in the near terms.


The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.


Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. 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)

FORTITECH ASIA PACIFIC SDN BHD

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

94,319,184

93,705,722

81,757,657

59,127,856

42,977,034

 

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

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

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

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

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

Total Turnover

94,319,184

93,705,722

81,757,657

59,127,856

42,977,034

Costs of Goods Sold

<61,755,298>

<64,605,974>

-

-

-

 

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

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

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

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

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

Gross Profit

32,563,886

29,099,748

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

25,838,847

22,286,085

23,213,062

13,950,180

839,304

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

25,838,847

22,286,085

23,213,062

13,950,180

839,304

Taxation

<4,712,197>

<6,145,743>

<3,545,139>

<3,476,244>

<796,425>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

21,126,650

16,140,342

19,667,923

10,473,936

42,879

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

17,729,700

3,782,108

<15,885,815>

<26,359,751>

<26,402,630>

 

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

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

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

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

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

As restated

17,729,700

3,782,108

<15,885,815>

<26,359,751>

<26,402,630>

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

38,856,350

19,922,450

3,782,108

<15,885,815>

<26,359,751>

DIVIDENDS - Ordinary (paid & proposed)

<7,830,000>

<2,192,750>

-

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

31,026,350

17,729,700

3,782,108

<15,885,815>

<26,359,751>

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

-

81,467

86,775

109,122

57,857

 

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

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

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

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

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

 

-

81,467

86,775

109,122

57,857

 

 

 

BALANCE SHEET

 

 

FORTITECH ASIA PACIFIC SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

35,605,583

35,218,741

35,805,160

6,406,726

7,456,084

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Goodwill on consolidation

-

-

-

-

1,218,776

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

-

-

-

-

1,218,776

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

35,605,583

35,218,741

35,805,160

6,406,726

8,674,860

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

22,701,249

11,368,741

11,116,976

13,096,905

7,324,199

Trade debtors

15,313,136

9,523,009

10,371,891

8,593,681

5,197,775

Other debtors, deposits & prepayments

562,343

998,507

852,930

182,957

193,951

Short term deposits

16,375,000

17,760,000

8,400,000

6,650,000

5,900,000

Amount due from holding company

1,390,807

-

-

-

-

Cash & bank balances

2,661,978

1,273,837

4,869,918

5,388,701

501,232

Others

266,000

-

252,000

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

59,270,513

40,924,094

35,863,715

33,912,244

19,117,157

 

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

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

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

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

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

TOTAL ASSET

94,876,096

76,142,835

71,668,875

40,318,970

27,792,017

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

6,796,060

2,243,876

4,214,610

1,009,980

1,484,150

Other creditors & accruals

3,502,346

2,870,100

6,621,083

4,326,398

2,028,565

Amounts owing to holding company

1,898,340

1,050,994

2,162,213

832,745

639,053

Other liabilities

-

112,165

3,511,861

35,662

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

12,196,746

6,277,135

16,509,767

6,204,785

4,151,768

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

47,073,767

34,646,959

19,353,948

27,707,459

14,965,389

 

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

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

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

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

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

TOTAL NET ASSETS

82,679,350

69,865,700

55,159,108

34,114,185

23,640,249

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

50,000,000

50,000,000

50,000,000

50,000,000

50,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

50,000,000

50,000,000

50,000,000

50,000,000

50,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

31,026,350

17,729,700

3,782,108

<15,885,815>

<26,359,751>

 

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

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

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

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

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

TOTAL RESERVES

31,026,350

17,729,700

3,782,108

<15,885,815>

<26,359,751>

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

81,026,350

67,729,700

53,782,108

34,114,185

23,640,249

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

1,653,000

2,136,000

1,377,000

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,653,000

2,136,000

1,377,000

-

-

 

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

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

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

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

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

 

82,679,350

69,865,700

55,159,108

34,114,185

23,640,249

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

FORTITECH ASIA PACIFIC SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

19,036,978

19,033,837

13,269,918

12,038,701

6,401,232

Net Liquid Funds

19,036,978

19,033,837

13,269,918

12,038,701

6,401,232

Net Liquid Assets

24,372,518

23,278,218

8,236,972

14,610,554

7,641,190

Net Current Assets/(Liabilities)

47,073,767

34,646,959

19,353,948

27,707,459

14,965,389

Net Tangible Assets

82,679,350

69,865,700

55,159,108

34,114,185

22,421,473

Net Monetary Assets

22,719,518

21,142,218

6,859,972

14,610,554

7,641,190

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

0

0

0

Total Liabilities

13,849,746

8,413,135

17,886,767

6,204,785

4,151,768

Total Assets

94,876,096

76,142,835

71,668,875

40,318,970

27,792,017

Net Assets

82,679,350

69,865,700

55,159,108

34,114,185

23,640,249

Net Assets Backing

81,026,350

67,729,700

53,782,108

34,114,185

23,640,249

Shareholders' Funds

81,026,350

67,729,700

53,782,108

34,114,185

23,640,249

Total Share Capital

50,000,000

50,000,000

50,000,000

50,000,000

50,000,000

Total Reserves

31,026,350

17,729,700

3,782,108

<15,885,815>

<26,359,751>

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

1.56

3.03

0.80

1.94

1.54

Liquid Ratio

3.00

4.71

1.50

3.35

2.84

Current Ratio

4.86

6.52

2.17

5.47

4.60

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

88

44

50

81

62

Debtors Ratio

59

37

46

53

44

Creditors Ratio

40

13

19

6

13

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

0.00

Liabilities Ratio

0.17

0.12

0.33

0.18

0.18

Times Interest Earned Ratio

0.00

274.56

268.51

128.84

15.51

Assets Backing Ratio

1.65

1.40

1.10

0.68

0.45

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

27.40

23.78

28.39

23.59

1.95

Net Profit Margin

22.40

17.22

24.06

17.71

0.10

Return On Net Assets

31.25

32.02

42.24

41.21

3.80

Return On Capital Employed

31.25

32.02

42.24

41.21

3.61

Return On Shareholders' Funds/Equity

26.07

23.83

36.57

30.70

0.18

Dividend Pay Out Ratio (Times)

0.37

0.14

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.07

UK Pound

1

Rs.89.54

Euro

1

Rs.72.77

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.