MIRA INFORM REPORT

 

 

Report Date :

17.11.2012

 

IDENTIFICATION DETAILS

 

Name :

QUALITY COILS INDUSTRIES SDN.BHD.

 

 

Formerly Known As :

GENNA CORPORATION SDN BHD

 

 

Registered Office :

Lot 25278, First Floor, 31950 Kampar, Perak

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

12.08.1987

 

 

Com. Reg. No.:

163371-V

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturing of mosquito coils and mosquito mats

 

 

No. of Employees :

200 [2012]

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

malaysia - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

* Adopted abbreviations :     SC - Subject Company (the company enquired by you)    

                                         N/A - Not Applicable                                                     

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

163371-V

COMPANY NAME

:

QUALITY COILS INDUSTRIES SDN.BHD.

FORMER NAME

:

GENNA CORPORATION SDN BHD (09/03/1988)

INCORPORATION DATE

:

12/08/1987

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LOT 25278, FIRST FLOOR, 31950 KAMPAR, PERAK, MALAYSIA.

BUSINESS ADDRESS

:

LOT 25278, MAMBANG DIAWAN, 31950 KAMPAR, PERAK, MALAYSIA.

TEL.NO.

:

05-4652771

FAX.NO.

:

05-4652775

EMAIL

:

info@qci.com.my

WEB SITE

:

www.qci.com.my

CONTACT PERSON

:

ANDREW YEOH CHIN YEK ( EXECUTIVE DIRECTOR )

 

 

 

INDUSTRY CODE

:

24210

PRINCIPAL ACTIVITY

:

MANUFACTURING OF MOSQUITO COILS AND MOSQUITO MATS

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 1,500,000.00 DIVIDED INTO 
ORDINARY SHARES 1,500,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 63,466,852 [2011]

NET WORTH

:

MYR 22,589,886 [2011]

 

 

 

STAFF STRENGTH

:

200 [2012]

BANKER (S)

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BHD
RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

HISTORY / BACKGROUND

 

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

 

The SC is principally engaged in the (as a / as an) manufacturing of mosquito coils and mosquito mats.

 

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.ANDREW YEOH CHIN YEK +

172, TAMAN GOLDEN DRAGON, 31900 KAMPAR, PERAK, MALAYSIA.

700826-08-5467

487,500.00

32.50

MR.YEOH HON POH +

333B,TAMAN GOLDEN DRAGON, 31900 KAMPAR,PERAK, MALAYSIA.

400617-08-5597

337,500.00

22.50

MS.GOH CHIN CHOO +

333B,TMN.GOLDEN DRAGON, 31900 KAMPAR, PERAK., MALAYSIA.

450428-08-5534

337,500.00

22.50

MR.YEAH HUN TIK +

G 108,SIGNAL HILL TOWER, JLN BKT.BENDERA UPPER, 84000 K.K, MALAYSIA.

490903-08-5223

337,500.00

22.50

 

 

 

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

------

 

 

 

1,500,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR.ANDREW ANDREW YEOH CHIN YEK

Address

:

172, TAMAN GOLDEN DRAGON, 31900 KAMPAR, PERAK, MALAYSIA.

 

 

 

New IC No

:

700826-08-5467

Date of Birth

:

26/08/1970

 

 

 

Nationality

:

MALAYSIAN

 

DIRECTOR 2

 

Name Of Subject

:

MS. GOH CHIN CHOO

Address

:

333B,TMN.GOLDEN DRAGON, 31900 KAMPAR, PERAK., MALAYSIA.

 

 

 

New IC No

:

450428-08-5534

Date of Birth

:

28/04/1945

 

 

 

Nationality

:

MALAYSIAN

 

DIRECTOR 3

 

Name Of Subject

:

MR. YEOH HON POH

Address

:

333B,TAMAN GOLDEN DRAGON, 31900 KAMPAR,PERAK, MALAYSIA.

 

 

 

New IC No

:

400617-08-5597

Date of Birth

:

17/06/1940

 

 

 

Nationality

:

MALAYSIAN

 

DIRECTOR 4

 

Name Of Subject

:

MR. YEAH HUN TIK

Address

:

G 108,SIGNAL HILL TOWER, JLN BKT.BENDERA UPPER, 84000 K.K, MALAYSIA.

 

 

 

New IC No

:

490903-08-5223

Date of Birth

:

03/09/1949

 

 

 

Nationality

:

MALAYSIAN



MANAGEMENT

 

1)

Name of Subject

:

ANDREW YEOH CHIN YEK

 

Position

:

EXECUTIVE DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

JOYCE HO

 

Position

:

ACCOUNTANT

 

 

 

 

 

3)

Name of Subject

:

RAYMOND CHAI

 

Position

:

BUSINESS DEVELOPMENT MANAGER

 

 

AUDITOR

 

Auditor

:

M.F.CHAI & CO

Auditor' Address

:

81,JLN.MARKET, 30000 IPOH,PERAK., PERAK, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. WONG HON KAI

 

 

 

 

 

New IC No

:

571001-08-5683

 

Address

:

79,LENGKOK CANNING, IPOH GARDEN, 31400 IPOH;PERAK, MALAYSIA.

 

2)

Company Secretary

:

MR. YEAH HUN TIK

 

 

 

 

 

New IC No

:

490903-08-5223

 

Address

:

G 108,SIGNAL HILL TOWER, JLN BKT.BENDERA UPPER, 84000 K.K, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BHD

 

2)

Name

:

RHB BANK 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

:

09/10/1992

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

DEVELOPMENT COMMERCIAL BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

03/01/1996

Description Of Charge

:

N/A

 

Amount Secured

:

RM794,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

DCB BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 7 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

30/12/2002

Description Of Charge

:

N/A

 

Amount Secured

:

RM850,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

Form 40 Dated

Registered and Numbered 12 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

 

CLIENTELE

 

Local

:

YES

 

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

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

 

OPERATIONS

 

Products manufactured

:

MOSQUITO COILS AND MOSQUITO MATS

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2004

 

 

 

 

Competitor(s)

:

ANCOM CROP CARE SDN BHD
CELCURE CHEMICALS (M) SDN BHD
FUMAKILLA MALAYSIA BHD
HEXTAR CHEMICALS SDN BHD.
ZAGRO CHEMICALS SDN BHD

 

 

 

 

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

Production Capacity

:

800 MILLION COILS AND 300 MILLION MATS ANNUALLY

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

200

200

120

100

100

 

 

 

 

 

Branch

:

NO

 

 

Other Information:

The SC is principally engaged in the (as a / as an) manufacturing of mosquito coils and mosquito mats.

The SC's mosquito coil comes in various types of colors, active ingredients, size, burning time & and aroma. 

The SC also packs its products in different packing methods other than standard paper box, such as Tin Can, Coil Holder, Paper Dispenser box and etc.

The SC's Mat division is equipment with complete facilities on fulfilling customer needs on Mosquito Repellent Mat, this shall including white mat & finished goods.

We were informed that the SC also customize the formulation based on customer request, including different type or content of Active Ingredient, color and aroma.

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

054652771

Current Telephone Number

:

05-4652771

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 25278 MAMBANG DIAWAN P O BOX 29 31907 KAMPAR PERAK DARUL

Current Address

:

LOT 25278, MAMBANG DIAWAN, 31950 KAMPAR, PERAK, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

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

The address provided belongs to the SC's PO Box address.


FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Return on Shareholder Funds

:

Acceptable

[

20.27%

]

 

Return on Net Assets

:

Acceptable

[

25.72%

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Favourable

[

2.01 Times

]

 

 

 

 

 

 

 

 

The SC was in good liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

0.80 Times

]

 

 

 

 

 

 

 

 

The SC has an unfavourable liabilities ratio and it may face financial difficulties if no additional capital is injected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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. The SC's liabilities was slightly high and its financial risk was also high. If no plans are made to reduce its liabilities, the SC's performance may deteriorate in the coming year.

 

 

 

 

 

 

 

Overall financial condition of the SC : STRONG

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

INDUSTRY ANALYSIS

 

MSIC CODE

 

24210 : Manufacture of pesticides and other agrochemical products

 

 

INDUSTRY :

MANUFACTURING

 

 

The manufacturing sector is expected to be driven by higher value-added activities in Malaysia.The GDP growth for first quarter 2012 indicating manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia recorded a 12% jump in approved investments in the manufacturing sector in the first quarter of 2012 compared with the corresponding period 2011. According to Federation of Malaysian Manufacturers (FMM), manufacturing sector expected to improve in the third quarter 2012 despite concerns over external developments and the rising cost of production.


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. Malaysia rubber exports are forecast to grow at 10%, at the end of 2012 driven by global demand for medical gloves as well as rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber shipments in Malaysia due to hospitals and clinics place more intrest on rising health and hygiene awareness.


The Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.


Chemical production are expected to show 6.2% in year 2012 and 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.


According to Malaysian Iron and Steel Industry Federation, first half of 2012 would remain weak for the local steel industry due to eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries. At first quarter 2012, the average local steel price is trading atRM2,300 per tonne compared with the average international price of US$740 (RM2,331) per tonne.


According to the Department of Statistics, Malaysia during the first quarter 2012, the manufacturing output increased due to activities in major sub-sectors such as petroleum, chemical, rubber and plastic products (10.5 %), and non-metallic mineral products, basic metal and fabricated metal products (3.9 %). Meanwhile, it's also announced that the manufacturing sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared with RM47.7 billion in May 2011. The Industrial Production Index (IPI ) increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %). 


Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such as solar and medial services can 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 1987, the SC is a Private Limited company, focusing on manufacturing of mosquito coils and mosquito mats. 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. 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 penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. The SC is a fairly large and rapidly growing company with over 200 staff in its operations The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright. To improve its quality products and services, we noted that the SC has received a number of certifications & awards. This will improve the customer's confidence level to the SC.


As at year ended 2011, the SC has reported total turnover and pre-tax profit of MYR 63,466,852 and MYR 6,462,498 respectively. 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. The SC had an acceptable liabilities ratio indicating that the SC has an acceptable level of liabilities relative to shareholders' funds. Given a positive net worth standing at MYR 22,589,886, 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 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)

QUALITY COILS INDUSTRIES SDN.BHD.

 

Financial Year End

31/12/2011

Months

12

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

SUMMARY

Currency

MYR

 

 

TURNOVER

63,466,852

 

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

Total Turnover

63,466,852

 

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

 

 

PROFIT/(LOSS) FROM OPERATIONS

6,462,498

 

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

PROFIT/(LOSS) BEFORE TAXATION

6,462,498

Taxation

<1,548,604>

 

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

PROFIT/(LOSS) AFTER TAXATION

4,913,894

Minority interests

<335,385>

 

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

4,578,509

 

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

4,578,509

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

As previously reported

10,703,464

 

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

As restated

10,703,464

 

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

PROFIT AVAILABLE FOR APPROPRIATIONS

15,281,973

- General

<38,264>

 

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

15,243,709

 

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

 

 

BALANCE SHEET

 

QUALITY COILS INDUSTRIES SDN.BHD.

 

ASSETS EMPLOYED:

 

FIXED ASSETS

9,405,210

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

65,300

 

 

 

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

TOTAL LONG TERM ASSETS

9,470,510

 

 

CURRENT ASSETS

 

TOTAL CURRENT ASSETS

31,136,964

 

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

TOTAL ASSET

40,607,474

 

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

 

 

CURRENT LIABILITIES

 

TOTAL CURRENT LIABILITIES

15,481,089

 

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

NET CURRENT ASSETS/(LIABILITIES)

15,655,875

 

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

TOTAL NET ASSETS

25,126,385

 

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

 

 

SHARE CAPITAL

 

Ordinary share capital

1,500,000

 

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

TOTAL SHARE CAPITAL

1,500,000

 

 

RESERVES

 

Retained profit/(loss) carried forward

15,243,709

Others

2,608,799

 

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

TOTAL RESERVES

17,852,508

 

 

MINORITY INTEREST

3,237,378

 

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

SHAREHOLDERS' FUNDS/EQUITY

22,589,886

 

 

LONG TERM LIABILITIES

 

TOTAL LONG TERM LIABILITIES

2,536,499

 

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

 

25,126,385

 

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

 

 

FINANCIAL RATIO

 

QUALITY COILS INDUSTRIES SDN.BHD.

 

TYPES OF FUNDS

 

Net Liquid Assets

15,655,875

Net Current Assets/(Liabilities)

15,655,875

Net Tangible Assets

25,126,385

Net Monetary Assets

13,119,376

 

 

BALANCE SHEET ITEMS

 

Total Liabilities

18,017,588

Total Assets

40,607,474

Net Assets

25,126,385

Net Assets Backing

22,589,886

Shareholders' Funds

22,589,886

Total Share Capital

1,500,000

Total Reserves

17,852,508

 

 

LIQUIDITY (Times)

 

Current Ratio

2.01

 

 

SOLVENCY RATIOS (Times)

 

Liabilities Ratio

0.80

Assets Backing Ratio

16.75

 

 

PERFORMANCE RATIO (%)

 

Operating Profit Margin

10.18

Net Profit Margin

7.21

Return On Net Assets

25.72

Return On Capital Employed

22.78

Return On Shareholders' Funds/Equity

20.27

 

 





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.99

UK Pound

1

Rs.87.21

Euro

1

Rs.70.22

 

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

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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.