MIRA INFORM REPORT

 

 

Report Date :

20.07.2012

 

 

 

Tel. No.:

603-8063 1133

Fax No.:

603 8051 1838

 

IDENTIFICATION DETAILS

 

Name :

EPIC CHEMICALS SDN BHD

 

 

Formerly Known As :

E3 TECNOLOGY SDN BHD (12/10/2001)

 

 

Registered Office :

1-1b, Room 2, Jalan Pandan Indah 4/34, Pandan Indah, 55100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

15.05.2000

 

 

Com. Reg. No.:

514320-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading In all Type of Chemical and Food Product and Ingredient

 

 

No. of Employees :

10

 

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 – 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

 

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

514320-M

COMPANY NAME

:

EPIC CHEMICALS SDN BHD

FORMER NAME

:

E3 TECNOLOGY SDN BHD (12/10/2001)

INCORPORATION DATE

:

15/05/2000

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

1-1B, ROOM 2, JALAN PANDAN INDAH 4/34, PANDAN INDAH, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

17, JALAN INDUSTRI, MAS 12, TAMAN MAS SEPANG, 47130 PUCHONG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-80631133

FAX.NO.

:

03-80511838

CONTACT PERSON

:

TAN SOON HOCK ( EXECUTIVE DIRECTOR )

 

 

 

INDUSTRY CODE

:

51499

PRINCIPAL ACTIVITY

:

TRADING IN ALL TYPE OF CHEMICAL AND FOOD PRODUCT AND INGREDIENT

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 650,000.00 DIVIDED INTO 
ORDINARY SHARES 650,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 27,022,479 [2010]

NET WORTH

:

MYR 4,615,774 [2010]

 

 

 

STAFF STRENGTH

:

10 [2012]

BANKER (S)

:

ALLIANCE BANK MALAYSIA BHD
OCBC BANK (MALAYSIA) BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

MYR 798,000 (USD 253,000)

 

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 in all type of chemical and food product and ingredient.

 

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

 

The immediate and ultimate holding company of the SC is EPIC INGREDIENTS SDN BHD, a company incorporated in MALAYSIA.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. CHAN KOK WOEI +

9, BATU 6 1/2, JALAN PUCHONG, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

710611-10-5941 A1926151

195,000.00

30.00

EPIC INGREDIENTS SDN BHD

8 & 10, JALAN MERANTI JAYA 9, MERANTI JAYA INDUSTRIAL PARK, BATU 16, JALAN PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

472454

455,000.00

70.00

 

 

 

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

------

 

 

 

650,000.00

100.00

 

 

 

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

=====

 

 

+ Also Director

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. TAN SOON HOCK

Address

:

R1-01-08, SUBANG PERDANA COURT 8, JALAN PERSIARAN MULIA, 47501 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A0878414

New IC No

:

671209-07-5239

Date of Birth

:

09/12/1967

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

15/05/2000

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHAN HONG FOOK

Address

:

6D-06-08 KENANGA APARTMENT, JALAN WAWASAN 2/3, PUSAT BANDAR PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

IC / PP No

:

A0986569

New IC No

:

680522-07-5117

Date of Birth

:

22/05/1968

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

15/05/2000

 

DIRECTOR 3

 

Name Of Subject

:

MR. CHAN KOK WOEI

Address

:

9, BATU 6 1/2, JALAN PUCHONG, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A1926151

New IC No

:

710611-10-5941

Date of Birth

:

11/06/1971

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

18/10/2001



MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN SOON HOCK

 

Position

:

EXECUTIVE DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

KW LOH & ASSOCIATES

Auditor' Address

:

1-1B, JALAN PANDAN INDAH, 4/34 PANDAN INDAH, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. YEE KOK WAH

 

IC / PP No

:

A0748968

 

New IC No

:

670604-01-5907

 

Address

:

18, JALAN BJ 14, TAMAN BALAKONG JAYA, 43300 BALAKONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. YOONG YUIT YUEN

 

IC / PP No

:

8111290

 

New IC No

:

521026-08-5270

 

Address

:

22, LORONG SS 23/10B, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

2)

Name

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

3)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

 

ENCUMBRANCE (S)



ENCUMBRANCE 1

Date of Creation

:

25/09/2007

Description Of Charge

:

CASH DEPOSIT & OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL SUM MONEY CURRENCY FROM TIME TO TIME DEPOSITED BY EPIC CHEMICAL

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
22, 24 & 26, JALAN USJ 9/5N, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 27/09/2007

Registered and Numbered 2 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

13/11/2009

Description Of Charge

:

MEMORANDUM OF LEGAL CHARGE & OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

PROPERTY IS ALL MONIES FROM TIME TO TIME HELD TO CREDIT OF EARNED ON ANY OF COMPANY'S ACC WITH BANK IN MALAYSIA

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD
5 & 6, JALAN KENARI 5, BANDAR PUCHONG JAYA, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 10/12/2009

Registered and Numbered 3 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

30/05/2011

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 4 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

09/09/2011

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,700,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

14/10/2011

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 6 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

:

CHINA,INDIA



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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

FOOD MANUFACTURERS,MANUFACTURING INDUSTRIES

 

OPERATIONS

 

Goods Traded

:

CHEMICAL AND FOOD PRODUCT AND INGREDIENT

 

 

 

 

Competitor(s)

:

IDEMITSU CHEMICALS (M) SDN BHD
KZH RESOURCES SDN BHD
MARUBENI KABUSHIKI KAISHA_(MARUBENI CORPORATION)
TEXCHEM RESOURCES BHD
TITAN TRADING CORP. SDN BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

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

10

10

10

10

13

12

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading in all type of chemical and food product and ingredient.

The SC mainly sells food ingredients and additives.

The SC sells a wide range of products.

The SC keeps stock of the products. 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0380631133

Current Telephone Number

:

03-80631133

Match

:

YES

 

 

 

Address Provided by Client

:

17, JALAN INDUSTRI, MAS 12, TAMAN MAS SEPANG,47130,PUCHONG,SELANGOR.

Current Address

:

17, JALAN INDUSTRI, MAS 12, TAMAN MAS SEPANG, 47130 PUCHONG, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2010

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2010

]

 

Return on Shareholder Funds

:

Acceptable

[

23.04%

]

 

Return on Net Assets

:

Favourable

[

32.09%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Acceptable

[

61 Days

]

 

Debtor Ratio

:

Unfavourable

[

83 Days

]

 

Creditors Ratio

:

Favourable

[

21 Days

]

 

 

 

 

 

 

 

 

The SC kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. 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

:

Favourable

[

1.03 Times

]

 

Current Ratio

:

Unfavourable

[

1.63 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

:

Acceptable

[

7.39 Times

]

 

Gearing Ratio

:

Acceptable

[

0.83 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. The SC's gearing was slightly high. The SC is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the SC. It will be more vulnerable in times of economy downturn.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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 had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. The SC's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the SC's performance may deteriorate in the coming year.

 

 

 

 

 

 

 

Overall financial condition of the SC : FAIR

 

 

 

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

51499 : Wholesale of other intermediate products, waste and scrap n.e.c.

 

 

INDUSTRY :

MANUFACTURING

 

 

 


The manufacturing sector expanded by 5.1% in the third quarter ended September 30,2011 on a year-on-year basis as supply-chain disruptions were reduced and following higher output of domestic-related industries as well as a weaker external environment. Investments in Malaysia's manufacturing sector reached RM40.7 billion in the first 10 months of 2011 and the full-year figure is expected to surpass year 2010's numbers.


The E&E sub-sector is expected to moderate in the second half of 2011, due to the increasingly uncertain external environment. Output of E&E contracted 4.9% during the first seven months of 2011 largely due to the global supply chain disruptions and lower global chip sales. Lower orders for notebooks and personal computers arising from increased preference for smartphones and media tables coupled with uncertainties over the US and European economies, adversely affected the sub-sector.


The wood and wood products sub-sector, on the other hand, is expected to rebound when Japan's reconstruction efforts gain momentum and new housing projects start in the Middle East after the month of Ramadhan in the year 2011. Production of wood and wood products contracted 7% during the first half of the year 2011, largely due to slower output of wooden and cane furniture as well as veneer sheets and plywood. 


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. Output of rubber products increased 15.4% during the first seven months of 2011, supported by continuos demand for rubber gloves as well as rubber tyres and tubes. 


For the textiles, apparel and footwear sub-sector, the local industry players's ability to produce quality designs and diversification of product lines to cater to different market segments as well as market under their own labels are expected to sustain the growth of this sub-sector. Furthermore, the upcoming 2012 Olympic Games is anticipated to boost demand for sports attire and strengthen the sub-sector's growth further. Production of textiles, apparel and foorwear grew 14.8% during the first half of the year 2011 led by higher output of wearing apparel and footwear.


During the first seven months of 2011, production of chemicals and chemical products rose 5.6%. While output of basic chemicals contracted 8.2%, other chemical and plastic products recorded a positive growth of 30% and 20.7% respectively. On the domestic front, output of construction related materials as a group grew strongly by 20% following robust housing construction activities and aided by ongoing implementation of civil engineering projects. The manufacture of transport equipment shrank 9.4% as a result of supply chain disruptions caused by the earthquake and tsunami in Japan. In addition, production of food rose 2.4% driven by the manufacture of refined palm oil processed and preserved fish products and other food products. Specifically, production of beverages increased 12.6% while tobacco declined 2.3%


Going forward, the manufacturing sector is expected to be driven by higher value-added activities. In this regard, further tax and non-tax incentives will be provided to encourage manufacturers to move up the value chain. The new growth initiatives in the manufacturing sector such as solar and medial services would 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 2000, the SC is a Private Limited company, focusing on trading in all type of chemical and food product and ingredient. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. 


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. To date, the SC's business operation is supported by 10 employees. 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. 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. However, the gearing level of the SC is slightly high, therefore it faces moderate financial risk. Given a positive net worth standing at MYR 4,615,774, 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. 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.


We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.


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)

EPIC CHEMICALS SDN BHD

 

Financial Year End

31/12/2010

31/12/2009

31/12/2008

31/12/2007

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

27,022,479

22,515,254

23,407,325

16,977,708

 

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

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

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

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

Total Turnover

27,022,479

22,515,254

23,407,325

16,977,708

Costs of Goods Sold

<22,831,330>

<19,306,564>

<18,512,748>

-

 

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

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

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

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

Gross Profit

4,191,149

3,208,690

4,894,577

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

1,451,397

922,061

2,033,131

509,445

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,451,397

922,061

2,033,131

509,445

Taxation

<387,854>

<230,715>

<535,440>

<125,061>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,063,543

691,346

1,497,691

384,384

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

3,327,231

2,635,885

1,138,194

753,809

 

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

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

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

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

As restated

3,327,231

2,635,885

1,138,194

753,809

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

4,390,774

3,327,231

2,635,885

1,138,193

DIVIDENDS - Ordinary (paid & proposed)

<75,000>

-

-

-

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

4,315,774

3,327,231

2,635,885

1,138,193

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Bank overdraft

-

1,282

2,857

1,481

Bankers' acceptance

173,049

98,854

229,259

-

Hire purchase

15,205

15,777

9,313

7,422

Term loan / Borrowing

34,041

46,636

481,875

19,186

Trust receipts

4,754

18,917

-

56,762

 

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

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

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

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

 

227,049

181,466

723,304

84,851

 

 

 

BALANCE SHEET

 

 

EPIC CHEMICALS SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

543,078

392,818

251,452

247,556

 

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

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

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

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

TOTAL LONG TERM ASSETS

543,077

392,818

251,452

247,556

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

4,500,354

2,940,937

2,621,083

1,716,748

Trade debtors

6,128,746

4,946,228

3,578,092

2,811,938

Other debtors, deposits & prepayments

501,927

336,481

186,900

85,134

Short term deposits

643,364

637,576

328,440

317,416

Amount due from holding company

179,852

14,359

11,448

212,587

Amount due from director

100,000

130,000

100,028

100,028

Cash & bank balances

44,588

225,323

1,204,375

33,417

 

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

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

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

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

TOTAL CURRENT ASSETS

12,098,831

9,230,904

8,030,366

5,277,268

 

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

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

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

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

TOTAL ASSET

12,641,908

9,623,722

8,281,818

5,524,824

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

1,304,775

705,819

269,655

122,696

Other creditors & accruals

907,410

1,026,190

1,556,825

632,661

Hire purchase & lease creditors

118,870

95,118

59,121

50,418

Bank overdraft

387,922

-

-

149,804

Short term borrowings/Term loans

249,366

321,012

321,012

100,008

Other borrowings

2,503,742

1,467,370

1,544,374

2,235,953

Amounts owing to holding company

1,256,046

896,862

41,393

59,718

Amounts owing to director

308,000

400,000

-

234,000

Provision for taxation

375,958

236,456

518,244

124,756

 

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

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

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

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

TOTAL CURRENT LIABILITIES

7,412,088

5,148,827

4,310,624

3,710,014

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

4,686,743

4,082,077

3,719,742

1,567,254

 

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

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

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

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

TOTAL NET ASSETS

5,229,820

4,474,895

3,971,194

1,814,810

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

300,000

300,000

300,000

300,000

 

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

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

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

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

TOTAL SHARE CAPITAL

300,000

300,000

300,000

300,000

 

 

 

 

 

RESERVES

 

 

 

 

Retained profit/(loss) carried forward

4,315,774

3,327,231

2,635,885

1,138,193

 

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

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

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

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

TOTAL RESERVES

4,315,774

3,327,231

2,635,885

1,138,193

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

4,615,774

3,627,231

2,935,885

1,438,193

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

384,900

607,172

893,932

229,562

Hire purchase creditors

206,426

229,668

123,874

146,750

Deferred taxation

22,721

10,824

17,503

305

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

614,046

847,664

1,035,309

376,617

 

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

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

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

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

 

5,229,820

4,474,895

3,971,194

1,814,810

 

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

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

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

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

 

 

 

 

FINANCIAL RATIO

 

EPIC CHEMICALS SDN BHD

 

TYPES OF FUNDS

 

 

 

 

Cash

687,952

862,899

1,532,815

350,833

Net Liquid Funds

300,030

862,899

1,532,815

201,029

Net Liquid Assets

186,389

1,141,140

1,098,659

<149,494>

Net Current Assets/(Liabilities)

4,686,743

4,082,077

3,719,742

1,567,254

Net Tangible Assets

5,229,820

4,474,895

3,971,194

1,814,810

Net Monetary Assets

<427,657>

293,476

63,350

<526,111>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

3,851,226

2,720,340

2,942,313

2,912,495

Total Liabilities

8,026,134

5,996,491

5,345,933

4,086,631

Total Assets

12,641,908

9,623,722

8,281,818

5,524,824

Net Assets

5,229,820

4,474,895

3,971,194

1,814,810

Net Assets Backing

4,615,774

3,627,231

2,935,885

1,438,193

Shareholders' Funds

4,615,774

3,627,231

2,935,885

1,438,193

Total Share Capital

300,000

300,000

300,000

300,000

Total Reserves

4,315,774

3,327,231

2,635,885

1,138,193

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.09

0.17

0.36

0.09

Liquid Ratio

1.03

1.22

1.25

0.96

Current Ratio

1.63

1.79

1.86

1.42

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

61

48

41

37

Debtors Ratio

83

80

56

60

Creditors Ratio

21

13

5

3

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.83

0.75

1.00

2.03

Liabilities Ratio

1.74

1.65

1.82

2.84

Times Interest Earned Ratio

7.39

6.08

3.81

7.00

Assets Backing Ratio

8.05

6.88

6.11

2.79

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

5.37

4.10

8.69

3.00

Net Profit Margin

3.94

3.07

6.40

2.26

Return On Net Assets

32.09

24.66

69.41

32.75

Return On Capital Employed

29.26

24.15

68.39

29.49

Return On Shareholders' Funds/Equity

23.04

19.06

51.01

26.73

Dividend Pay Out Ratio (Times)

0.07

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.38

UK Pound

1

Rs.86.75

Euro

1

Rs.68.06

 

 

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.