MIRA INFORM REPORT

 

 

Report Date :

08.06.2012

 

IDENTIFICATION DETAILS

 

Name :

GPA TECHNOLOGIES SDN BHD

 

 

Registered Office :

8-3, Jalan Segambut, 51200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

03.10.2001

 

 

Com. Reg. No.:

560511-X

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturing and sale of sealed lead acid batteries

 

 

No. of Employees :

15

 

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

 

 

* Adopted abbreviations :                           

SC - Subject Company (the company enquired by you)

N/A - Not Applicable

                                                                   

                                   

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

560511-X

COMPANY NAME

:

GPA TECHNOLOGIES SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

03/10/2001

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

REGISTERED ADDRESS

:

8-3, JALAN SEGAMBUT, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 5031 & 5032, JALAN TERATAI, OFF JALAN MERU, 41050 KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-33927180/33929423

FAX.NO.

:

03-33920918

WEB SITE

:

www.gp-products.com

CONTACT PERSON

:

OSMAN BIN MOHD ZAIN ( DIRECTOR )

INDUSTRY CODE

:

31400

PRINCIPAL ACTIVITY

:

MANUFACTURING AND SALE OF SEALED LEAD ACID BATTERIES

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 500,000.00 DIVIDED INTO 
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 14,102,993 [2011]

NET WORTH

:

MYR 5,179,186 [2011]

 

 

 

STAFF STRENGTH

:

15 [2012]

BANKER (S)

 

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MATURE

 

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 and sale of sealed lead acid batteries.

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

 

The immediate holding company of the SC is GP PRODUCTS SDN BHD, a company incorporated in MALAYSIA.

The ultimate holding company of the SC is GPA HOLDINGS BERHAD, a company incorporated in MALAYSIA.

 

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

Name

Address

IC/PP/Loc No

Shareholding

GP PRODUCTS SDN BHD

8-3, JALAN SEGAMBUT, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

204551

500,000.00

 

 

 

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

 

 

 

500,000.00

 

 

 

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

+ Also Director

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

DATO' OSMAN BIN MOHD ZAIN

Address

:

2675 JALAN PERMATA 23, TAMAN PERMATA, ULU KELANG, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A3412037

New IC No

:

331106-08-5433

Date of Birth

:

06/11/1933

 

 

 

Nationality

:

MALAYSIAN MALAY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. GAN LOCK YONG @ GAN CHOON HUR

Address

:

21, JALAN SS 21/6, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

4137361

New IC No

:

501029-01-5149

Date of Birth

:

29/10/1950

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

 

 

 

 

 

 

 

 

Working Experience

:

JOINED JASA KITA TRADING S/B AS ACC & CCREDIT CONTROLLER IN 1983 FIN MANAGER OF JASA KITA GROUP

Other Info

:

FELLOW OF THE ASS OF INTERNATIONAL ACC, UK MEMBER OF THE NATIONAL INST. OF ACC, AUS

 

DIRECTOR 3

 

Name Of Subject

:

MR. LEE KOK WOI

Address

:

5, JALAN SUNWAY 1/4, TAMAN SUNWAY CHERAS, BATU 9, 43200 KAJANG, SELANGOR, MALAYSIA.

IC / PP No

:

A0919214

New IC No

:

671218-10-5313

Date of Birth

:

18/12/1967

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

OSMAN BIN MOHD ZAIN

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

LEE KOK YONG

 

Position

:

DIRECTOR

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

CROWE HORWATH

Auditor' Address

:

TOWER C, MEGAN AVENUE II, 12, JALAN YAP KWAN SENG, LEVEL 16, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LIM LAI SAM

 

IC / PP No

:

7353189

 

New IC No

:

640525-08-6034

 

Address

:

20-12B-3A, ANGKUPURI CONDOMINIUM, JALAN 1/70C, OFF JALAN BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. CHONG SIEW DUAN

 

IC / PP No

:

A1507959

 

New IC No

:

700101-10-5600

 

Address

:

9, JALAN BSJ 5, TAMAN BUKIT SEGAR JAYA, 43200 KAJANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

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



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

Percentage

:

60%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

40%

Export Market

:

ASIA

Credit Term

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES

Type of Customer

:

END USERS

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

SEALED LEAD ACID BATTERIES

 

 

 

Competitor(s)

:

AMALGAMATED BATTERIES MANUFACTURING (SARAWAK) SDN BHD
ENERGIZER MALAYSIA SDN BHD
GP BATTERIES (MALAYSIA) SDN BHD
GPA HOLDINGS BHD
KG POWER (M) SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

YEAR

2012

 

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

15

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing and sale of sealed lead acid batteries.

The SC is engaged in the manufacturing and distribution of rechargeable maintenance-free sealed lead acid batteries. 

Marketed under the GP brand, these batteries are widely used as a back-up power source for standby and cyclical applications. 

These include UPS, alarm & security systems, emergency lighting, power tools and toys, telecommunications and many 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

:

N/A

Current Telephone Number

:

03-33927180/33929423

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 5031 & 5032, JALAN TERATAI, OFF JALAN MERU,41050,KLANG,SELANGOR.

Current Address

:

LOT 5031 & 5032, JALAN TERATAI, OFF JALAN MERU, 41050 KLANG, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

We contacted one of the staff from the Accounts Department. She provided some information on the SC.

 

 

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

58.62%

]

 

Profit/(Loss) Before Tax

:

Decreased

[

87.59%

]

 

Return on Shareholder Funds

:

Unfavourable

[

4.39%

]

 

Return on Net Assets

:

Unfavourable

[

3.35%

]

 

 

 

 

 

 

 

 

The shrinking turnover could be the result of more entrants into the market which eroded the SC's market share.The SC's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds and net assets could indicate that the SC's management was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

108 Days

]

 

Debtor Ratio

:

Favourable

[

22 Days

]

 

Creditors Ratio

:

Favourable

[

25 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

:

Acceptable

[

0.94 Times

]

 

Current Ratio

:

Favourable

[

2.57 Times

]

 

 

 

 

 

 

 

 

The SC's liquid ratio was slightly low. This could indicate that the SC's working capital was slightly deficient. The SC will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can 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 :

 

 

 

 

 

 

The SC's performance deteriorated over the years with lower turnover and profit. The SC's liquidity was at an acceptable range. If the SC is able to obtain further short term financing, it should be able to meet all 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 : LIMITED

 

 

 

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

31400 : Manufacture of accumulators, primary cells and primary batteries

 

 

INDUSTRY :

ELECTRICAL & ELECTRONIC

 

 

 


The electrical & electronics (E&E) industry is the leading sector in Malaysia's manufacturing sector, contributing significantly to the country's manufacturing output (31 per cent), exports (48.7 per cent) and employment (33.7 per cent). Over the years, Malaysia's E&E industry has developed significant capabilities and skills for the manufacture of a wide range of semiconductor devices including photovoltaic cells and modules, high-end consumer electronics, and information and communication technology (ICT) products.


The E&E industry in Malaysia can be categorised into four sub-sectors:


a) Consumer Electronics


- This sub-sector includes the manufacture of LED television receivers, audio visual products such as blu-ray disc players/recorders, digital home theater systems, mini disc, electronics games consoles and digital cameras.


b) Electronic Components


- Products/activities which fall under this sub-sector include semiconductor devices, passive components, printed circuits and other components such as media, substrates and connectors. 


c) Industrial Electronics


- This sub-sector consists of multimedia and information technology products such as computers, computer peripherals, telecommunication products and office equipment.


d) Electrical


- The major electrical products produced in Malaysia are household appliances such as air-conditioners, refrigerators, washing machines, vacuum cleaners and other electrical appliances.


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. Export earnings of E&E contracted 6.5% to RM136.7 billion due to lower shipments of electronic equipment and parts.


Malaysia's E&E capabilities are expected to be strengthened across the value chain with focus on attracting multinational companies to operate in the country. Under the E&E national key economic area targets, the sector is projected to increase gross national income by RM53bil to RM90bil by 2020, and provide 157,000 jobs.


Proposed projects under semiconductors include bringing in five mature technology fabricators and three in advanced packaging technology; setting up 50 integrated circuit (IC) design firms and two wafer substrate manufacturers. The aim is to have a concentration of leading global semiconductor firms; the current global market share is 5%. 


In the solar manufacturing industry, it was proposed that domestic silicon production be increased from six kilotonnes to 114 kilotonnes by 2020. The production capacity of cell, wafers and modules should be increased by 10 times from 2.3GW to 23.3GW in 2020. Malaysia also aims to be a major manufacturing location for modules serving the Asian market. The global market for solar manufacturing is projected to increase from US$35bil in 2009 to US$290bil in 2020, with Asia as a major growth area.


Malaysia currently has 10% of the Light Emitting Diode (LED) market largely for the illumination sector. The target is to attract at least one major substrate supplier and one epitaxy to complete the value chain. Two more LED wafer fabrication plants are to be brought in, while the LED packaging business would be expanded by 15% per year. At least five solid state lighting companies will be developed into global leaders with a certification laboratory for LED products.


Malaysia has a strong E&E presence. Three out of five of the largest lighting companies are located in the country. Besides the Government's push for green technology, higher education for specialised LED areas, for example thermal and optics, should be encouraged.

 

 

OVERALL INDUSTRY OUTLOOK : Mature

 


CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 2001, the SC is a Private Limited company, focusing on manufacturing and sale of sealed lead acid batteries. 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. The SC is considered as a medium size company with issued and paid up capital standing at RM500,000. 


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. To date, the SC's business operation is supported by 15 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.


The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC however managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. A zero gearing ratio has minimised the SC's financial risk. Given a positive net worth standing at MYR 5,179,186, 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.


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 has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the SC's growth prospect is very much depends on its capacity in sustaining its performance in the market.


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




PROFIT AND LOSS ACCOUNT

 

 

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

GPA TECHNOLOGIES SDN BHD

 

Financial Year End

31/03/2011

31/03/2010

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

 

 

 

TURNOVER

14,102,993

34,085,449

 

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

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

Total Turnover

14,102,993

34,085,449

Costs of Goods Sold

<13,729,023>

<30,161,729>

 

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

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

Gross Profit

373,970

3,923,720

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

178,597

1,439,123

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

178,597

1,439,123

Taxation

49,021

<298,252>

 

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

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

PROFIT/(LOSS) AFTER TAXATION

227,618

1,140,871

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

4,451,568

3,310,697

 

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

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

As restated

4,451,568

3,310,697

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

4,679,186

4,451,568

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

4,679,186

4,451,568

 

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

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

 

 

 

 

 

BALANCE SHEET

 

 

GPA TECHNOLOGIES SDN BHD

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

1,312,422

1,513,304

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

1,312,422

1,513,304

 

 

 

CURRENT ASSETS

 

 

Stocks

4,170,549

9,425,954

Trade debtors

839,942

4,240,440

Other debtors, deposits & prepayments

329,430

88,023

Amount due from holding company

27,682

-

Amount due from related companies

149,673

2,097

Cash & bank balances

453,390

929,789

Others

603,161

433,057

 

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

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

TOTAL CURRENT ASSETS

6,573,827

15,119,360

 

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

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

TOTAL ASSET

7,886,249

16,632,664

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

936,502

1,381,741

Other creditors & accruals

373,619

1,632,889

Amounts owing to holding company

-

1,192,779

Amounts owing to related companies

1,233,871

7,283,926

Other liabilities

10,048

10,048

 

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

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

TOTAL CURRENT LIABILITIES

2,554,040

11,501,383

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

4,019,787

3,617,977

 

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

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

TOTAL NET ASSETS

5,332,209

5,131,281

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

500,000

500,000

 

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

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

TOTAL SHARE CAPITAL

500,000

500,000

 

 

 

RESERVES

 

 

Retained profit/(loss) carried forward

4,679,186

4,451,568

 

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

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

TOTAL RESERVES

4,679,186

4,451,568

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

5,179,186

4,951,568

 

 

 

LONG TERM LIABILITIES

 

 

Deferred taxation

153,023

179,713

 

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

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

TOTAL LONG TERM LIABILITIES

153,023

179,713

 

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

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

 

5,332,209

5,131,281

 

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

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

 

 

 

 

 

 

FINANCIAL RATIO

 

 

GPA TECHNOLOGIES SDN BHD

 

TYPES OF FUNDS

 

 

Cash

453,390

929,789

Net Liquid Funds

453,390

929,789

Net Liquid Assets

<150,762>

<5,807,977>

Net Current Assets/(Liabilities)

4,019,787

3,617,977

Net Tangible Assets

5,332,209

5,131,281

Net Monetary Assets

<303,785>

<5,987,690>

BALANCE SHEET ITEMS

 

 

Total Borrowings

0

0

Total Liabilities

2,707,063

11,681,096

Total Assets

7,886,249

16,632,664

Net Assets

5,332,209

5,131,281

Net Assets Backing

5,179,186

4,951,568

Shareholders' Funds

5,179,186

4,951,568

Total Share Capital

500,000

500,000

Total Reserves

4,679,186

4,451,568

LIQUIDITY (Times)

 

 

Cash Ratio

0.18

0.08

Liquid Ratio

0.94

0.50

Current Ratio

2.57

1.31

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

108

101

Debtors Ratio

22

45

Creditors Ratio

25

17

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.00

0.00

Liabilities Ratio

0.52

2.36

Times Interest Earned Ratio

0.00

0.00

Assets Backing Ratio

10.66

10.26

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

1.27

4.22

Net Profit Margin

1.61

3.35

Return On Net Assets

3.35

28.05

Return On Capital Employed

3.35

28.05

Return On Shareholders' Funds/Equity

4.39

23.04

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.15

UK Pound

1

Rs.85.22

Euro

1

Rs.69.24

 

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.