MIRA INFORM REPORT

 

 

Report Date :

30.05.2012

 

IDENTIFICATION DETAILS

 

Name :

FUSAN CLAYS & GLAZES SDN BHD

 

 

Registered Office :

Suite 102, 46 Persiaran Mergastua, Jalan 56, Kepong Baru, 1st Floor, 52100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

20.03.1997

 

 

Com. Reg. No.:

423909-W

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Ceramic Product

 

 

No. of Employees :

25

 

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

 

 

 

 

 

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

423909-W

COMPANY NAME

:

FUSAN CLAYS & GLAZES SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

20/03/1997

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE 102, 46 PERSIARAN MERGASTUA, JALAN 56, KEPONG BARU, 1ST FLOOR, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

7, JALAN 20/14, PARAMOUNT GARDEN, 46300 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78774163

FAX.NO.

:

03-78746766

CONTACT PERSON

:

KONG TECK SENG ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

26930

PRINCIPAL ACTIVITY

:

MANUFACTURING OF CERAMIC 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 2,339,460.00 DIVIDED INTO 
ORDINARY SHARES 2 CASH AND 2,339,458 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 19,475,680 [2010]

NET WORTH

:

MYR 3,654,099 [2010]

 

 

 

STAFF STRENGTH

:

25 [2012]

BANKER (S)

:

EON BANK BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

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

 

The SC is principally engaged in the (as a / as an) manufacturing of ceramic product.

 

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

 

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

Name

Address

IC/PP/Loc No

Shareholding

MR. KONG TECK SENG +

1, JALAN 21/14, SEA PARK, 46300 SHAH ALAM, SELANGOR, MALAYSIA.

641226-10-7469 A0122008

2,339,459.00

MS. FOO MEE NEE

1, JALAN 21/14, SEA PARK, 46300 SHAH ALAM, SELANGOR, MALAYSIA.

601029-08-5720

1.00

 

 

 

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

 

 

 

2,339,460.00

 

 

 

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

 

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. KONG TECK WOON

Address

:

1, JALAN 21/14, SEA PARK, 46300 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

A1926989

New IC No

:

710702-10-5023

Date of Birth

:

02/07/1971

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. KONG TECK SENG

Address

:

1, JALAN 21/14, SEA PARK, 46300 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

A0122008

New IC No

:

641226-10-7469

Date of Birth

:

26/12/1964

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

20/03/1997

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

KONG TECK SENG

 

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

SEOW & CO

Auditor' Address

:

SUITE 101, 46 PERSIARAN MERGASTUA, JALAN 56, KEPONG BARU, 1ST FLOOR, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SEASON ANAK WENDA

 

IC / PP No

:

K0410968

 

New IC No

:

731022-13-5002

 

Address

:

50-7-2, VISTA MAGNA APARTMENT, METRO PRIMA, KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

EON BANK BHD

 

 

 

 

 

2)

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

:

20/05/1998

Description Of Charge

:

FIXED

 

Amount Secured

:

RM618,000.00

Description Of Property Affected

:

PM 1572, LOT 14974, MK & DIST KELANG

 

Name & Address Of Chargee

:

EON BANK BHD
28 & 30, JALAN SS 2/67, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 20/05/1998

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

20/05/1998

Description Of Charge

:

FIXED

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

PM 1572, LOT 14974, MK & DIST KELANG

 

Name & Address Of Chargee

:

EON BANK BHD
28 & 30, JALAN SS 2/67, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 20/05/1998

Registered and Numbered 2 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

21/11/2001

Description Of Charge

:

FIXED

 

Amount Secured

:

RM600,000.00

Description Of Property Affected

:

PM 1572, LOT 14974, MK & DIST OF KELANG, SELANGOR

 

Name & Address Of Chargee

:

EON BANK BHD
28 & 30, JALAN SS 2/67, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 21/11/2001

Registered and Numbered 4 In The Register of Charges

 



ENCUMBRANCE 4

Date of Creation

:

21/11/2001

Description Of Charge

:

FIXED

 

Amount Secured

:

RM350,000.00

Description Of Property Affected

:

PM 1572, LOT 14974, MK & DIST OF KELANG, SELANGOR

 

Name & Address Of Chargee

:

EON BANK BHD
28 & 30, JALAN SS 2/67, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 21/11/2001

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

07/09/2006

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,600,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated 21/09/2006

Registered and Numbered 9 In The Register of Charges



ENCUMBRANCE 6

Date of Creation

:

07/09/2006

Description Of Charge

:

N/A

 

Amount Secured

:

RM400,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated 21/09/2006

Registered and Numbered 10 In The Register of Charges



ENCUMBRANCE 7

Date of Creation

:

27/12/2007

Description Of Charge

:

N/A

 

Amount Secured

:

RM800,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated 08/01/2008

Registered and Numbered 11 In The Register of Charges



ENCUMBRANCE 8

Date of Creation

:

27/12/2007

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 08/01/2008

Registered and Numbered 12 In The Register of Charges



ENCUMBRANCE 9

Date of Creation

:

15/01/2009

Description Of Charge

:

1ST LEGAL CHARGE

 

Amount Secured

:

RM139,000.00

Description Of Property Affected

:

HSD 123886, PT 119560, MKI KLANG, SELANGOR

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD
39-45, JALAN OTHMAN, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 19/01/2009

Registered and Numbered 13 In The Register of Charges



ENCUMBRANCE 10

Date of Creation

:

23/02/2010

Description Of Charge

:

THE CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL MONIES STANDING TO THE COMPANY ACCOUNTS

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD
39-45, BANGUNAN UOB, JALAN OTHMAN, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 02/03/2010

Registered and Numbered 14 In The Register of Charges



ENCUMBRANCE 11

Date of Creation

:

12/01/2011

Description Of Charge

:

ALL MONIES LOAN AGREEMENT CUM DEED OF ASSIGNMENT

 

Amount Secured

:

N/A

Description Of Property Affected

:

SALE AND PURCHASE AGREEMENT

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD
39-45 JALAN OTHMAN, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 25/02/2011

Registered and Numbered 15 In The Register of Charges



ENCUMBRANCE 12

Date of Creation

:

22/06/2011

Description Of Charge

:

2ND LEGAL CHARGE UNDER THE NATIONAL LAND CODE

 

Amount Secured

:

RM5,600,000.00

Description Of Property Affected

:

ALL THAT PIECE OF LAND HELD WITH 1 UNITE OF SINGLE-STOREY TERRACE HOUSE

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD
39-45, JALAN OTHMAN, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 28/06/2011

Registered and Numbered 16 In The Register of Charges



ENCUMBRANCE 13

Date of Creation

:

22/06/2011

Description Of Charge

:

4TH LEGAL CHARGE UNDER THE NATIONAL LAND CODE

 

Amount Secured

:

RM2,200,000.00

Description Of Property Affected

:

ALL THAT PIECE OF LAND WITH 1 UNIT OF SINGLE-STOREY FACTORY AND AN OPEN SIDED SINGLE STOREY FACTORY

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD
39-45, JALAN OTHMAN, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 28/06/2011

Registered and Numbered 17 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

 

 

 



The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Products manufactured

:

COMPOSITE GLAZE

 

 

 

Competitor(s)

:

GUOCERA TILE INDUSTRIES SDN BHD
JOHAN CERAMICS BHD
MALAYSIAN MOSAICS BHD
SOUTH EAST ASIA FIRE BRICKS INDUSTRIES SDN BHD
WEMBLEY INDUSTRIES HOLDINGS BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

 

 

GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

25

20

20

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of ceramic product.

The SC pecialises in custom blending minerals/chemicals for special applications.

The SC undertakes custom blending of additives, clay-blends, clay-bodies, composite-glazes, pigments and others.

The SC however refused to disclose more information on its operation. 

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

:

03-78774163

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 7 JALAN 20/14 PARAMOUNT GARDEN 46300 PETALING JAYA SELANGOR

Current Address

:

7, JALAN 20/14, PARAMOUNT GARDEN, 46300 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The district is address provided is incorrect.


FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2010

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2010

]

 

Return on Shareholder Funds

:

Unfavourable

[

3.69%

]

 

Return on Net Assets

:

Acceptable

[

12.88%

]

 

 

 

 

 

 

 

 

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 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

:

Favourable

[

18 Days

]

 

Debtor Ratio

:

Acceptable

[

59 Days

]

 

Creditors Ratio

:

Favourable

[

52 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The SC's management was quite efficient in handling its debtors. The SC's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Acceptable

[

0.97 Times

]

 

Current Ratio

:

Unfavourable

[

1.09 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

:

Unfavourable

[

1.98 Times

]

 

Gearing Ratio

:

Favourable

[

0.76 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. 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 :

 

 

 

 

 

 

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'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. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. 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 : 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

26930 : Manufacture of structural non-refractory clay and ceramic products

 

 

INDUSTRY :

CONSTRUCTION

 

 

 


The construction sector will drive the national economy in 2012 by a budgeted growth of 7%, much has to be done now to meet the target, especially when the Malaysian construction industry is set to grow by a bullish RM92 billion in 2012 from RM85 billion in 2010. Timely awards and implementation of projects as per the 10th Malaysia Plan (10MP) and the Economic Transformation Programme (ETP) from now will contribute positively to the growth in 2012, as the projects require a gestation period in order to generate impact to the economy.


The Master Builders Association of Malaysia (MBAM) is concerned that the construction sector may underperform in 2011 if the sector's 4Q 2011 performance does not improve substantially. The construction sector had seen only 3% growth in 3Q 2011. The sector grew by only 3.8% and 0.6% in the first two quarters of 2011 respectively. The overall growth for 2010 was 5.3%.


Major building material producers, such as cement and steel manufacturers, have been reporting lesser demands for the year to date. For projects involving foreign direct investments (FDI) and domestic investors, the timely issue of construction permits will further improve confidence of the investors.


Rising building material costs are haunting construction companies again. Local builders say construction costs may rise at a faster pace than earnings, prompting players to seek greater liberty to import building materials and equipment at lower tariffs. Construction cost could rise more than 15% in 2012. For now, local builders can import steel products and cement at zero import duties. But players are lamenting that import taxes of 30% for other materials such as marble and tiles, are on the high side.


Rising expenses were stifling builders' profits as players were subject to fixed-price contracts. There would be cost overruns, delays and a higher risk of project failures when builders were unable to absorb the cost increases.


A planned and progressive award of projects will reduce any abrupt increase in demands for building materials and manpower which may jeopardise the targeted growth due to temporary shortages in supply as well as preventing unnecessary price increases which will burden contractors. The imminent enactment of the proposed Construction Industry Payment and Adjudication Act (CIPAA) will make the industry more healthy and sustainable for all players of the industry.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Established in 1997, the SC is a private limited company with core business in the manufacturing of ceramic product. 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. A paid up capital of RM2.33 million allows the SC to expand its business more comfortably. We considered that the SC's business position in the market is much dependent on the efforts of its directors.


Besides catering to the local market, the SC has ventured into Asia countries. We believe that this global approach has minimised its commercial risk and better growth prospects can be expected. The SC is operating on a medium scale and it has approximately 25 employees in its business operations. Overall, we regard that the SC's management capability is average.


During the financial year under review, the SC's turnover continued on an upward momentum, reaching RM19,475,680. Correspondingly, its pre-tax profit rose to RM281,157. This was achieved on the back of stronger performance of higher turnover. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return.We noted that the SC's current liabilities well exceed its current assets. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. However,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 RM3,654,099, the SC should be able to maintain its business in the near terms.


Investigation revealed that the SC's supplies are sourced locally and from overseas countries. Thus, it is subjected to the currency fluctuation risk.


Based on the historical financial data, we concluded that the SC's payment habit is average. The SC is capable to meet small and medium commitments.


The industry shows an upward trend and this trend is likely to sustain in the near future. With the promising outlook of the industry performance, the SC business potential should be favourable. The SC however faces moderate business risk as it has to compete with many well established players in the same field.


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)

FUSAN CLAYS & GLAZES SDN BHD

 

Financial Year End

31/12/2010

31/12/2009

31/12/2008

Months

12

12

12

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

FULL

FULL

FULL

Currency

MYR

MYR

MYR

 

 

 

 

TURNOVER

19,475,680

18,303,270

18,391,602

 

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

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

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

Total Turnover

19,475,680

18,303,270

18,391,602

Costs of Goods Sold

<17,486,699>

<16,516,649>

-

 

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

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

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

Gross Profit

1,988,981

1,786,621

-

 

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

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

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

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

258,118

234,038

260,018

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

23,039

<29,854>

<21,762>

 

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

281,157

204,184

238,256

Taxation

<146,493>

<55,430>

<162,242>

 

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

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

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

PROFIT/(LOSS) AFTER TAXATION

134,664

148,754

76,014

 

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

As previously reported

936,263

876,509

900,495

Prior year adjustment

-

11,000

-

 

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

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

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

As restated

936,263

887,509

900,495

 

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,070,927

1,036,263

976,509

DIVIDENDS - Ordinary (paid & proposed)

<116,973>

<100,000>

<100,000>

 

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

953,954

936,263

876,509

 

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

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

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

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

Bank overdraft

67,020

81,790

72,759

Bankers' acceptance

143,077

136,861

-

Hire purchase

13,075

-

-

Term loan / Borrowing

20,495

21,952

19,617

Trust receipts

14,192

17,330

30,962

Others

27,817

27,156

158,290

 

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

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

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

 

285,676

285,089

281,628

 

 

 

BALANCE SHEET

 

 

FUSAN CLAYS & GLAZES SDN BHD

 

ASSETS EMPLOYED:

 

 

 

FIXED ASSETS

3,155,636

2,455,785

2,312,124

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

Investments

514,727

491,688

521,542

 

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

514,727

491,688

521,542

 

 

 

 

 

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

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

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

TOTAL LONG TERM ASSETS

3,670,363

2,947,473

2,833,666

 

 

 

 

CURRENT ASSETS

 

 

 

Stocks

986,623

777,180

870,798

Trade debtors

3,168,553

3,071,605

3,230,649

Other debtors, deposits & prepayments

743,893

567,165

1,224,701

Short term deposits

827,650

577,109

331,022

Amount due from related companies

648,780

646,497

642,964

Amount due from associated companies

1,526,282

1,064,310

-

Amount due from director

-

979,524

992,089

Cash & bank balances

49,822

60,297

11,709

Others

774,331

768,652

760,460

 

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

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

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

TOTAL CURRENT ASSETS

8,725,934

8,512,339

8,064,392

 

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

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

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

TOTAL ASSET

12,396,297

11,459,812

10,898,058

 

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

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

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

 

 

 

 

CURRENT LIABILITIES

 

 

 

Trade creditors

2,492,410

2,375,901

1,812,647

Other creditors & accruals

85,118

170,354

110,441

Hire purchase & lease creditors

94,358

-

-

Bank overdraft

1,688,745

1,098,911

981,512

Short term borrowings/Term loans

83,112

83,112

64,968

Other borrowings

277,956

255,915

140,920

Bill & acceptances payable

2,136,000

3,310,000

3,642,440

Amounts owing to director

1,000,650

-

50,578

Provision for taxation

20,079

93,024

80,757

Dividends payable/proposed

116,973

100,000

100,000

 

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

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

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

TOTAL CURRENT LIABILITIES

7,995,401

7,487,217

6,984,263

 

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

730,533

1,025,122

1,080,129

 

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

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

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

TOTAL NET ASSETS

4,400,896

3,972,595

3,913,795

 

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

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

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

 

 

 

 

SHARE CAPITAL

 

 

 

Ordinary share capital

2,339,460

2,339,460

2,339,460

 

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

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

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

TOTAL SHARE CAPITAL

2,339,460

2,339,460

2,339,460

 

 

 

 

RESERVES

 

 

 

Revaluation reserve

360,685

360,685

360,685

Retained profit/(loss) carried forward

953,954

936,263

876,509

 

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

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

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

TOTAL RESERVES

1,314,639

1,296,948

1,237,194

 

 

 

 

 

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,654,099

3,636,408

3,576,654

 

 

 

 

LONG TERM LIABILITIES

 

 

 

Long term loans

226,735

286,666

222,892

Hire purchase creditors

399,718

-

-

Deferred taxation

120,344

49,521

114,249

 

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

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

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

TOTAL LONG TERM LIABILITIES

746,797

336,187

337,141

 

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

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

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

 

4,400,896

3,972,595

3,913,795

 

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

FUSAN CLAYS & GLAZES SDN BHD

 

TYPES OF FUNDS

 

 

 

Cash

877,472

637,406

342,731

Net Liquid Funds

<811,273>

<461,505>

<638,781>

Net Liquid Assets

<256,090>

247,942

209,331

Net Current Assets/(Liabilities)

730,533

1,025,122

1,080,129

Net Tangible Assets

4,400,896

3,972,595

3,913,795

Net Monetary Assets

<1,002,887>

<88,245>

<127,810>

BALANCE SHEET ITEMS

 

 

 

Total Borrowings

2,770,624

1,724,604

1,410,292

Total Liabilities

8,742,198

7,823,404

7,321,404

Total Assets

12,396,297

11,459,812

10,898,058

Net Assets

4,400,896

3,972,595

3,913,795

Net Assets Backing

3,654,099

3,636,408

3,576,654

Shareholders' Funds

3,654,099

3,636,408

3,576,654

Total Share Capital

2,339,460

2,339,460

2,339,460

Total Reserves

1,314,639

1,296,948

1,237,194

LIQUIDITY (Times)

 

 

 

Cash Ratio

0.11

0.09

0.05

Liquid Ratio

0.97

1.03

1.03

Current Ratio

1.09

1.14

1.15

WORKING CAPITAL CONTROL (Days)

 

 

 

Stock Ratio

18

15

17

Debtors Ratio

59

61

64

Creditors Ratio

52

53

36

SOLVENCY RATIOS (Times)

 

 

 

Gearing Ratio

0.76

0.47

0.39

Liabilities Ratio

2.39

2.15

2.05

Times Interest Earned Ratio

1.98

1.72

1.85

Assets Backing Ratio

1.88

1.70

1.67

PERFORMANCE RATIO (%)

 

 

 

Operating Profit Margin

1.44

1.12

1.30

Net Profit Margin

0.69

0.81

0.41

Return On Net Assets

12.88

12.32

13.28

Return On Capital Employed

9.17

9.65

10.62

Return On Shareholders' Funds/Equity

3.69

4.09

2.13

Dividend Pay Out Ratio (Times)

0.87

0.67

1.32

NOTES TO ACCOUNTS

 

 

 

Contingent Liabilities

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.58

UK Pound

1

Rs.87.14

Euro

1

Rs.69.73

 

 

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.