MIRA INFORM REPORT

 

 

Report Date :

28.06.2012

 

INQUIRY DETAILS

 

Given Name :

Worldwide Resins & Chemicals Sdn Bhd

 

 

Given Address :

No. 8 Jalan Sejahtera 26/124 Axis Premier Industrial Park Sec 25 Shah Alam Selangor Darul Ehsan, Malaysia

 

IDENTIFICATION DETAILS

 

Name :

WORLDWIDE RESINS & CHEMICALS SDN BHD

 

 

Registered Office :

25-1, Jalan Pju 1/42a, Block F2, Dataran Prima, 47301 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

12.07.1991

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Wholesale of other intermediate products, waste and scrap

 

 

No. of Employees :

30

 

 

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

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

220766-D

COMPANY NAME

:

WORLDWIDE RESINS & CHEMICALS SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

12/07/1991

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

25-1, JALAN PJU 1/42A, BLOCK F2, DATARAN PRIMA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

8, JALAN SEJAHTERA 25/124, AXIS PREMIER INDUSTRIAL PARK, SECTION 25, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-51224899

FAX.NO.

:

03-51224849

EMAIL

:

wwrckl@wwrc.com.my

WEB SITE

:

www.wwrc.com.my

CONTACT PERSON

:

TEOH WENG CHAI ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

51499

PRINCIPAL ACTIVITY

:

TRADING IN RESINS AND CHEMICALS PRODUCT

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 3,463,363.00 DIVIDED INTO 
ORDINARY SHARES 2,148,504 CASH AND 1,314,859 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 202,138,667 [2010]

NET WORTH

:

MYR 64,434,956 [2010]

 

 

 

STAFF STRENGTH

:

30 [2012]

BANKER (S)

:

AMBANK (M) BHD
HSBC BANK MALAYSIA BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

MYR 11,276,000 (USD 3,580,000)

 

 

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 resins and chemicals product.The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).The immediate holding company of the SC is FU YUAN ENTERPRISE PTE LTD, a company incorporated in SINGAPORE.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

FU YUAN ENTERPRISE PTE LTD

5, PIONEER SECTOR 2, 628367, SINGAPORE.

 

1,780,350.00

51.41

TENG CHEN JIUNG +

33, SIGLAP VIEW, 455796, SINGAPORE.

2197959G

280,506.00

8.10

MR. TEOH WENG CHAI +

59, JALAN 31/109, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

681009-07-5145 A1119142

264,503.00

7.64

UNIQUE FINE PRODUCTS CO LTD

176/55-56 MOOBAN LINCHEE, NANGLINCHEE ROAD, YANNAWA, 10120, BANGKOK, THAILAND.

 

233,750.00

6.75

TENG CHEN MING +

8, WU SHENG ROAD, LIN YA DIST 80245, KAOHSIUNG, TAIWAN.

P133118363

220,000.00

6.35

MR. LUM FOOK KIONG

17, JALAN 31/100C, KOTA KEMUNING, SECTION 31, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

681202-05-5023 A1092947

98,750.00

2.85

WONG CHING KIU

ROOM 1505, 15/7, DECC INDUSTRIAL CENTRE, 12 KUT SHING STREET, CHAIWAN, HONG KONG.

P620305112

82,500.00

2.38

DENG CHEN SHING

8 WU SHENG ROAD, LIN YA DIST, 80245, KAOSHIUNG, TAIWAN.

M10818782

69,500.00

2.01

MR. SAHAT BIN JANTAN +

19, LORONG PENDING 1C, BANDAR PUTERI, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

660509-10-6101 A0423219

67,500.00

1.95

CHEN JEN HWA

8 WU SHENG ROAD, LIN YA DIST, 80245, KAOSHIUNG, TAIWAN.

M11792089

67,500.00

1.95

TENG CHEN SHING

8 WU SHENG ROAD, LIN YA DIST, 80245, KAOSHIUNG, TAIWAN.

M7430050

53,000.00

1.53

TENG MEI-YU

8 WU SHENG ROAD, LIN YA DISTRICT, 80245, KAOSHIUNG, TAIWAN.

M12568855

38,500.00

1.11

LAO BENEDICT A

REPROCO HOUSE 1038, JOSEFA LIANES, ESCODA ST, MALATE MANILA, TAIWAN.

ZZ007592

38,500.00

1.11

TENG CHEN CHUNG

8 WU SHENG RD, LIN YA DISTRICT, 80245, KAOSHIUNG, TAIWAN.

M6917494

27,500.00

0.79

TENG CHEN JI @ DENG CHENJI +

33, SIGLAP VIEW, 455796, SINGAPORE.

S8115934C

10,000.00

0.29

REMAINING SHAREHOLDERS

 

 

131,004.00

3.78

 

 

 

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

------

 

 

 

3,463,363.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

TENG CHEN JI @ DENG CHENJI

Address

:

33, SIGLAP VIEW, 455796, SINGAPORE.

IC / PP No

:

S8115934C

 

 

 

Date of Birth

:

05/06/1981

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

10/04/2008

 

DIRECTOR 2

 

Name Of Subject

:

MR. SAHAT BIN JANTAN

Address

:

19, LORONG PENDING 1C, BANDAR PUTERI, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

A0423219

New IC No

:

660509-10-6101

Date of Birth

:

09/05/1966

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

01/06/1999

 

DIRECTOR 3

 

Name Of Subject

:

TENG CHEN MING

Address

:

8, WU SHENG ROAD, LIN YA DIST 80245, KAOHSIUNG, TAIWAN.

IC / PP No

:

P133118363

Nationality

:

CHINESE

Date of Appointment

:

10/06/1996

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. TEOH WENG CHAI

Address

:

59, JALAN 31/109, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

A1119142

New IC No

:

681009-07-5145

Date of Birth

:

09/10/1968

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

01/06/1999

 

DIRECTOR 5

 

Name Of Subject

:

TENG CHEN JIUNG

Address

:

33, SIGLAP VIEW, 455796, SINGAPORE.

IC / PP No

:

2197959G

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

12/07/1991


MANAGEMENT

 

1)

Name of Subject

:

TEOH WENG CHAI

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

TENG CHEN JIUNG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

WENDY PANG

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

 

AUDITOR

 

Auditor

:

GEP ASSOCIATES

Auditor' Address

:

25 JALAN PJU 1/42A, DATARAN PRIMA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. GONG WOOI KWONG

 

IC / PP No

:

4575317

 

New IC No

:

540308-08-6187

 

Address

:

12A, JALAN PJU 3/15, DAMANSARA INDAH RESORT HOMES, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

AMBANK (M) BHD

 

 

 

 

 

2)

Name

:

HSBC 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

:

01/08/2002

Description Of Charge

:

OPEN CHARGE

 

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 2

Date of Creation

:

30/11/2010

Description Of Charge

:

MEMO OF CHARGE

 

Amount Secured

:

RM4,800,000.00

Description Of Property Affected

:

THE LAND HELD UNDER HS(D) 104708, PT 102509, SHAH ALAM, SELANGOR TOGETHER WITH A WAREHOUSE CUM 2 STOREY OFFICE BUILDING ERECTED THEREON

 

Name & Address Of Chargee

:

AMBANK (M) BHD
MENARA DION, JALAN SULTAN ISMAIL, LEVEL 18, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 09/12/2010

Registered and Numbered 6 In The Register of Charges


ENCUMBRANCE 3

Date of Creation

:

01/12/2011

Description Of Charge

:

TRADE FINANCING GENERAL AGREEMENT

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD
2 LEBOH AMPANG, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 15/12/2011

Registered and Numbered 7 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

Percentage

:

60%

Overseas

:

YES

Percentage

:

40%

Import Countries

:

ASIA,EUROPE


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

:

BRUNEI DARUSSALAM, SINGAPORE, THAILAND, PHILIPPINES, INDONESIA, CHINA, TAIWAN

Credit Term

:

60 - 90 DAYS

 

 

 

 

 

 

Payment Mode

:

CASH,CHEQUES,LETTER OF CREDIT (LC)

 

 

 

 

 

 

No of Customer

:

40

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

RESINS AND CHEMICALS

 

 

 

 

Competitor(s)

:

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

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

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

30

30

30

30

28

27

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading in resins and chemicals product.

The Groups main business is the supply of raw materials to the paint and coatings, ink, adhesives, plastics, rubber, electronics, composites, resins and other related industries. 

The Group also supplies packing (filling) and tinting machines to the paint and ink industries.

The SC offers a wide range of products which include:

* Additives & Catalysts.

* Grinding Media & other chemicals.

* Pigments, Fillers, Extenders.

* Resins & Intermediates.

* Solvents & Plasticicizers.

* Other Industries: construction chemicals, cosmetic, electronics, packaging, food & beverage.

* Plastic Resins: Nylon, Polyacetal, Polycarbonate, Cellulose Acetate.

* PVC: Stearic Acid, Impact Modifier, Liquid Stabilizers, Calcium Carbonate.

* Rubber: Sulphur, Synthetic Rubber, Silica, Zink Stearate and others.

The SC has a warehouse located at the same premises to keep stocks and materials.

The SC also has regional offices based in Hong Kong, Vietnam, Thailand, Taiwan, Singapore, China and Indonesia.

The SC's products are available in both liquid and powder forms.

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

:

03-51224899

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 8 JALAN SEJAHTERA 26/124 AXIS PREMIER INDUSTRIAL PARK SEC 25 SHAH

Current Address

:

8, JALAN SEJAHTERA 25/124, AXIS PREMIER INDUSTRIAL PARK, SECTION 25, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 21st June 2012 we contacted one of the Senior staff from the SC and she provided some information on the SC.

The address provided is incomplete.


FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Return on Shareholder Funds

:

Acceptable

[

21.00%

]

 

Return on Net Assets

:

Acceptable

[

28.09%

]

 

 

 

 

 

 

 

 

The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Acceptable

[

58 Days

]

 

Debtor Ratio

:

Unfavourable

[

103 Days

]

 

Creditors Ratio

:

Favourable

[

31 Days

]

 

 

 

 

 

 

 

 

The SC kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. 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

[

1.18 Times

]

 

Current Ratio

:

Unfavourable

[

1.73 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

:

Favourable

[

18.39 Times

]

 

Gearing Ratio

:

Favourable

[

0.07 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

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. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : STABLE

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

 

 

 

 

 


INDUSTRY ANALYSIS

 

MSIC CODE

 

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

 

 

INDUSTRY :

MANUFACTURING


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 1991, the SC is a Private Limited company, focusing on trading in resins and chemicals product. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in 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. To date, the SC's business operation is supported by 30 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.


During the financial year 2010, the Group's pre-tax profit stood at MYR 18,006,574, given a turnover of MYR 202,138,667. 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 lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 64,434,956, 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.


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)

WORLDWIDE RESINS & 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

GROUP

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

202,138,667

152,555,018

151,092,541

129,438,558

 

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

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

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

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

Total Turnover

202,138,667

152,555,018

151,092,541

129,438,558

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

18,000,694

12,634,031

10,265,254

9,540,046

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

5,880

-

-

-

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

18,006,574

12,634,031

10,265,254

9,540,046

Taxation

<4,420,836>

<3,304,947>

<2,630,063>

<2,609,573>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

13,585,738

9,329,084

7,635,191

6,930,473

Minority interests

<55,847>

-

-

-

 

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

13,529,891

9,329,084

7,635,191

6,930,473

 

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

13,529,891

9,329,084

7,635,191

6,930,473

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

46,487,611

37,937,784

31,071,460

24,889,073

 

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

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

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

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

As restated

46,487,611

37,937,784

31,071,460

24,889,073

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

60,017,502

47,266,868

38,706,651

31,819,546

DIVIDENDS - Ordinary (paid & proposed)

<1,039,009>

<779,257>

<768,867>

<748,086>

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

58,978,493

46,487,611

37,937,784

31,071,460

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Bank overdraft

11,658

4,284

34,898

33,341

Hire purchase

133

1,593

5,066

12,363

Term loan / Borrowing

6,249

-

-

-

Trust receipts

303,947

324,294

368,850

140,679

Others

713,649

297,390

1,105,534

1,230,054

 

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

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

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

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

 

1,035,636

627,561

1,514,348

1,416,437

 

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

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

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

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

 

 

BALANCE SHEET

 

WORLDWIDE RESINS & CHEMICALS SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

24,162,075

17,023,598

14,243,734

14,200,005

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Associated companies

123,520

-

-

-

Investments

921,789

938,689

510,009

514,009

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,045,309

938,689

510,009

514,009

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

Goodwill on consolidation

4,527

-

-

-

 

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

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

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

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

TOTAL INTANGIBLE ASSETS

4,527

-

-

-

 

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

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

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

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

TOTAL LONG TERM ASSETS

25,211,911

17,962,287

14,753,743

14,714,014

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

32,325,051

22,393,776

20,743,514

20,228,432

Trade debtors

57,139,530

46,317,914

34,315,337

39,717,516

Other debtors, deposits & prepayments

4,363,123

2,365,738

2,245,377

2,573,742

Short term deposits

1,608,007

1,753,163

-

-

Amount due from holding company

154,575

-

-

-

Amount due from associated companies

1,518,654

-

-

-

Amount due from director

-

3,500

3,280

103,124

Cash & bank balances

3,859,332

5,531,892

5,335,200

3,592,239

 

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

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

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

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

TOTAL CURRENT ASSETS

100,968,272

78,365,983

62,642,708

66,215,053

 

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

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

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

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

TOTAL ASSET

126,180,183

96,328,270

77,396,451

80,929,067

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

17,372,603

11,275,567

6,076,630

9,633,427

Other creditors & accruals

2,145,697

2,393,146

621,371

1,886,928

Hire purchase & lease creditors

-

895

69,229

31,890

Bank overdraft

2,108,826

85,019

-

762,005

Short term borrowings/Term loans

534,249

-

-

-

Bill & acceptances payable

35,756,119

28,808,014

26,070,691

30,307,272

Amounts owing to holding company

-

226,409

279,338

95,541

Amounts owing to director

334,395

451,972

500,000

750,001

Provision for taxation

149,938

766,424

-

629,536

 

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

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

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

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

TOTAL CURRENT LIABILITIES

58,401,827

44,007,446

33,617,259

44,096,600

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

42,566,445

34,358,537

29,025,449

22,118,453

 

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

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

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

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

TOTAL NET ASSETS

67,778,356

52,320,824

43,779,192

36,832,467

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

3,463,363

3,463,363

3,463,363

3,463,363

 

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

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

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

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

TOTAL SHARE CAPITAL

3,463,363

3,463,363

3,463,363

3,463,363

 

 

 

 

 

RESERVES

 

 

 

 

Share premium

1,632,250

1,632,250

1,632,250

1,632,250

Retained profit/(loss) carried forward

58,978,493

46,487,611

37,937,784

31,071,460

 

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

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

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

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

TOTAL RESERVES

60,610,743

48,119,861

39,570,034

32,703,710

 

 

 

 

 

MINORITY INTEREST

360,850

-

-

-

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

64,434,956

51,583,224

43,033,397

36,167,073

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

2,112,000

-

-

-

Hire purchase creditors

-

-

895

25,894

Deferred taxation

1,231,400

737,600

744,900

639,500

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

3,343,400

737,600

745,795

665,394

 

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

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

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

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

 

67,778,356

52,320,824

43,779,192

36,832,467

 

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

WORLDWIDE RESINS & CHEMICALS SDN BHD

 

TYPES OF FUNDS

 

 

 

 

Cash

5,467,339

7,285,055

5,335,200

3,592,239

Net Liquid Funds

3,358,513

7,200,036

5,335,200

2,830,234

Net Liquid Assets

10,241,394

11,964,761

8,281,935

1,890,021

Net Current Assets/(Liabilities)

42,566,445

34,358,537

29,025,449

22,118,453

Net Tangible Assets

67,773,829

52,320,824

43,779,192

36,832,467

Net Monetary Assets

6,897,994

11,227,161

7,536,140

1,224,627

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

4,755,075

85,914

70,124

819,789

Total Liabilities

61,745,227

44,745,046

34,363,054

44,761,994

Total Assets

126,180,183

96,328,270

77,396,451

80,929,067

Net Assets

67,778,356

52,320,824

43,779,192

36,832,467

Net Assets Backing

64,434,956

51,583,224

43,033,397

36,167,073

Shareholders' Funds

64,434,956

51,583,224

43,033,397

36,167,073

Total Share Capital

3,463,363

3,463,363

3,463,363

3,463,363

Total Reserves

60,610,743

48,119,861

39,570,034

32,703,710

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.09

0.17

0.16

0.08

Liquid Ratio

1.18

1.27

1.25

1.04

Current Ratio

1.73

1.78

1.86

1.50

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

58

54

50

57

Debtors Ratio

103

111

83

112

Creditors Ratio

31

27

15

27

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.07

0.00

0.00

0.02

Liabilities Ratio

0.96

0.87

0.80

1.24

Times Interest Earned Ratio

18.39

21.13

7.78

7.74

Assets Backing Ratio

19.57

15.11

12.64

10.63

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

8.91

8.28

6.79

7.37

Net Profit Margin

6.69

6.12

5.05

5.35

Return On Net Assets

28.09

25.35

26.91

29.75

Return On Capital Employed

27.11

25.31

26.86

29.12

Return On Shareholders' Funds/Equity

21.00

18.09

17.74

19.16

Dividend Pay Out Ratio (Times)

0.08

0.08

0.10

0.11

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.57.21

UK Pound

1

Rs.89.42

Euro

1

Rs.71.46

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.