MIRA INFORM REPORT

 

 

Report Date :

20.11.2012

 

IDENTIFICATION DETAILS

 

Name :

ROBIN RESOURCES (MALAYSIA) SDN. BHD.

 

 

Registered Office :

1, Jalan Industri 5, Taman Perindustrian Temerloh, 28400 Mentakab, Pahang

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2011

 

 

Date of Incorporation :

07.02.1994

 

 

Com. Reg. No.:

289258-U

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturer of Medium Density Fibre-boards and Other Wood-Based Product.

 

 

No. of Employees :

300

 

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 – 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

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

289258-U

 

 

 

 

 

 

 

 

 

COMPANY NAME

:

ROBIN RESOURCES (MALAYSIA) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/02/1994

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

1, JALAN INDUSTRI 5, TAMAN PERINDUSTRIAN TEMERLOH, 28400 MENTAKAB, PAHANG, MALAYSIA.

BUSINESS ADDRESS

:

1, JALAN INDUSTRI 5, TAMAN PERINDUSTRIAN TEMERLOH, 28400 MENTAKAB, PAHANG, MALAYSIA.

TEL.NO.

:

09-2771133

FAX.NO.

:

09-2778688

EMAIL

:

contact@robinmdf.com

WEB SITE

:

www.robinmdf.com

CONTACT PERSON

:

ROBIN LOH SIN KIAN ( CHAIRMAN )

 

 

 

INDUSTRY CODE

:

20212

PRINCIPAL ACTIVITY

:

MANUFACTURER OF MEDIUM DENSITY FIBREBOARDS AND OTHER WOOD-BASED PRODUCT

AUTHORISED CAPITAL

:

MYR 100,000,000.00 DIVIDED INTO 
ORDINARY SHARE 100,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 61,000,000.00 DIVIDED INTO 
ORDINARY SHARES 55,000,000 CASH AND 6,000,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 186,241,986 [2011]

NET WORTH

:

MYR 152,114,640 [2011]

M1000 OVERALL RANKING

:

984[2009]

M1000 INDUSTRY RANKING

:

18[2009]

 

 

 

STAFF STRENGTH

:

300 [2012]

BANKER (S)

:

AMBANK (M) BHD

AMMERCHANT BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

MYR 8,068,000 (USD 2,561,000)

 

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) manufacturer of medium density fibreboards and other wood-based product.

 

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

 

According to the Malaysia 1000 publication, the SC's ranking are as follows:

 

 

 

 

YEAR

2009

 

 

OVERALL RANKING

984

 

 

INDUSTRY RANKING

18

 

 

 

The immediate holding company of the SC is ROBINA RESOURCES (PTE) LTD, a company incorporated in SINGAPORE.

 

The ultimate holding company of the SC is ROSINA INC, a company incorporated in LIBERIA.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

ROBINA RESOURCES (PTE) LTD

80, MARINE PARADE ROAD, #12-08 PARKWAY PARADE, 449269, SINGAPORE.

 

61,000,000.00

100.00

 

 

 

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

------

 

 

 

61,000,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

The SC interest in other companies (Subsidiaries/Associates) are shown as follow :

Local No

Company

(%)

As At

648581

ROBINA PLANTATION SDN BHD

100

30/06/2011

 

 

 

 

 

515352

ROBINA FLOORING SDN BHD

100

30/06/2011

 

 

 

 

 

 

 

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. LOH JU FERN

Address

:

9 PALM ROAD, SINGAPORE, 456444, FOREIGN, MALAYSIA.

IC / PP No

:

S2006516H

 

 

 

Date of Birth

:

27/10/1953

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

22/09/2010

Remark

:

ALT DIR TO LOH SIN KIAN, ROBIN

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. TEOH CHENG KANG

Address

:

1,JLN INDUSTRI 5, TMN PERINDUSTRIAN TEMERLOH, 28400 MENTAKAB, MALAYSIA.

IC / PP No

:

S2004888C

 

 

 

Date of Birth

:

31/05/1948

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

22/09/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

CHUA PHAU TEE

Address

:

1,JLN INDUSTRI 5, TMN PERINDUSTRIAN, TEMERLOH,28400 MENTAKAB, MALAYSIA.

IC / PP No

:

S0570703Z

 

 

 

Date of Birth

:

04/05/1940

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

22/09/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR.JASON LOH HUAI CHIEH @ LUO HUAIJIE

Address

:

NO. 5 AVON ROAD, SINGAPORE 439783, MALAYSIA.

IC / PP No

:

S7712768B

 

 

 

Date of Birth

:

04/05/1977

 

 

 

Nationality

:

SINGAPOREAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR.ROBBY LOH TSE KANG

Address

:

NO.5,AVON ROAD, SINGAPORE 439783, MALAYSIA.

IC / PP No

:

S0074304F

 

 

 

Date of Birth

:

21/05/1950

 

 

 

Nationality

:

SINGAPOREAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

ROBIN LOH SIN KIAN

 

Position

:

CHAIRMAN

 

 

 

 

 

2)

Name of Subject

:

CHUA PHAU TEE

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

CHAN KAH HENG

 

Position

:

ADMIN MANAGER

 

 

 

 

 

4)

Name of Subject

:

MOK YOW KONG

 

Position

:

FINANCE MANAGER

 

 

 

 

 

5)

Name of Subject

:

ALBERT YAN

 

Position

:

BUSINESS DEVELOPMENT MANAGER

 

 

 

 

 

6)

Name of Subject

:

DIONG CHEU LING

 

Position

:

PRODUCTION MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

RSM ROBERT TEO, KUAN & CO

Auditor' Address

:

WISMA RKT, 2 & 4, JALAN RAJA ABDULLAH, OFF JALAN SULTAN ISMAIL, 1ST FLOOR, 50300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ENG BEE HONG

 

 

 

 

 

New IC No

:

570809-71-5006

 

Address

:

23, JALAN SS 26/5, TAMAN MAYANG JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

AMBANK (M) BHD

 

 

 

 

 

2)

Name

:

AMMERCHANT 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)

 


No encumbrance was found in our databank at the time of investigation. 

LEGAL CHECK AGAINST SC

 


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.


No legal action was found in our databank. 


No winding up petition was found in our databank. 

 

DEFAULTER CHECK AGAINST SC

 


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. 

No blacklisted record & debt collection case was found in our defaulters' databank. 

 

PAYMENT RECORD

 

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

EUROPE,JAPAN,CHINA



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

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

MIDDLE EAST, SOUTHEAST ASIA, AUSTRALIA, AFRICA, SAUDI ARABIA, UNITED ARAB EMIRATES

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

Type of Customer

:

FURNITURE INDUSTRY,CONSTRUCTION INDUSTRY

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

MEDIUM DENSITY FIBRE BOARDS

 

 

 

Brand Name

:

ROBIN MDF, ROBIN DECOR

 

 

 

 

Competitor(s)

:

DAIKEN MIRI SDN BHD
EVERGREEN FIBREBOARD BHD
HEVEABOARD BERHAD
MERBOK HILIR BHD
MIECO CHIPBOARD BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

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

300

300

302

300

310

317

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturer of medium density fibreboards and other wood-based product.

The SC has the latest German technology built into its production process. 

Robin MDF is manufactured by a dry process and continuous pressing. Wood chips are refined, blended with resin, wax and dried before they are formed into a mat for pressing at high temperature. The emerging board is sanded then cut into panels through our sophisticated cut-to-size saw to suit customer requirements. 

The SC's products can be used to make furniture systems, kitchen cabinets, bedroom sets, dining sets, TV racks, speaker boxes, flooring, decorative doors, panel mouldings and others.

Besides producing medium density fibre boards, the SC also produces solid doors. 

According to the SC, the doors are produced according to its customers' requirements.

 

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

:

09-2771133

Match

:

N/A

 

 

 

Address Provided by Client

:

1, JALAN INDUSTRI 5, TAMAN PERINDUSTRIAN TEMERLOH,28400,MENTAKAB,PAHANG.

Current Address

:

1, JALAN INDUSTRI 5, TAMAN PERINDUSTRIAN TEMERLOH, 28400 MENTAKAB, PAHANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

 

 

FINANCIAL ANALYSIS

 

 

 

 

 

Auditor Qualified Statement: WE ARE UNABLE TO ASSESS THE EXTEND OF THE AMOUNT OF ALLOWANCES FOR DOUBTFUL DEBT REQUIRED TO BE MADE FOR THE AMOUNT DUE FROM AN ASSOCIATE COMPANY, AMOUNTING TO RM 16,081,176 AS THE DEBT HAS BEEN LONG OUTSTANDING AND THE ASSOCIATE COMPANY IS IN NET CURRENT LIABILITIES POSITION WITH A DEFICIT IN SHAREHOLDER'S FUND

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

6.80%

]

 

Return on Net Assets

:

Unfavourable

[

7.02%

]

 

 

 

 

 

 

 

 

The continuous fall in turnover could be due to the lower demand for the SC's products / services.The SC's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

69 Days

]

 

Debtor Ratio

:

Favourable

[

40 Days

]

 

Creditors Ratio

:

Favourable

[

45 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

2.73 Times

]

 

Current Ratio

:

Favourable

[

4.02 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

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was nil as it did not pay any interest during the year. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC's performance deteriorated over the years with lower turnover and profit. The SC 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 did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the SC : 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

20212 : Manufacture of laminboard, particle board and other panels and boards

 

 

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 1994, the SC is a Private Limited company, focusing on manufacture of medium density fibreboards and other wood-based product. With its long establishment in the market, the SC has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The SC is a large entity with strong capital position. We are confident with the SC's business and its future growth prospect.


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 300 staff in its operations. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. However, 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 zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 152,114,640, the SC should be able to maintain its business in the near terms.


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)

ROBIN RESOURCES (MALAYSIA) SDN. BHD.

 

Financial Year End

30/06/2011

30/06/2010

30/06/2009

30/06/2008

30/06/2007

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

186,241,986

221,902,368

229,904,851

284,083,611

274,817,048

 

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

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

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

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

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

Total Turnover

186,241,986

221,902,368

229,904,851

284,083,611

274,817,048

Costs of Goods Sold

<142,697,558>

-

-

-

-

 

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

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

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

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

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

Gross Profit

43,544,428

-

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

10,855,642

56,542,744

<32,920,161>

<8,668,424>

<2,183,899>

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

10,855,642

56,542,744

<32,920,161>

<8,668,424>

<2,183,899>

Taxation

<512,182>

<6,113,107>

<3,733,872>

<3,947,408>

5,481,895

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

10,343,460

50,429,637

<36,654,033>

<12,615,832>

3,297,996

Minority interests

-

11,536,826

4,604,168

13,315,119

8,978,446

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

10,343,460

61,966,463

<32,049,865>

699,287

12,276,442

 

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

10,343,460

61,966,463

<32,049,865>

699,287

12,276,442

TRANSFER FROM RESERVES

118,138

-

-

-

-

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

85,222,268

33,015,805

65,065,670

64,366,383

56,359,941

 

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

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

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

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

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

As restated

85,222,268

33,015,805

65,065,670

64,366,383

56,359,941

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

95,683,866

94,982,268

33,015,805

65,065,670

68,636,383

DIVIDENDS - Ordinary (paid & proposed)

<16,470,000>

<9,760,000>

-

-

<4,270,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

79,213,866

85,222,268

33,015,805

65,065,670

64,366,383

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

-

-

46,684

-

-

Hire purchase

-

61,916

13,440

63,645

-

Term loan / Borrowing

-

2,119,204

4,409,997

5,444,594

4,266,041

Others

-

-

242,872

132,610

864,553

 

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

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

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

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

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

 

-

2,181,120

4,712,993

5,640,849

5,130,594

 

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

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

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

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

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

 

 

 

 

 

 

 

BALANCE SHEET

 

 

ROBIN RESOURCES (MALAYSIA) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

58,822,374

68,865,509

148,054,945

173,501,521

178,714,381

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Deferred assets

-

-

796,000

2,299,000

3,160,463

Others

13,272,388

10,283,917

9,058,554

-

202,423

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

13,272,388

10,283,917

9,854,554

2,299,000

3,362,886

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Deferred/Expenditure carried forward

-

-

-

444,761

927,250

Goodwill on consolidation

-

-

1,629,540

-

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

-

-

1,629,540

444,761

927,250

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

72,094,762

79,149,426

159,539,039

176,245,282

183,004,517

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

35,153,628

38,938,172

74,946,655

96,066,513

105,661,061

Trade debtors

20,503,936

24,183,091

23,865,873

36,384,891

30,383,566

Other debtors, deposits & prepayments

3,016,928

928,117

3,647,127

4,545,369

16,749,580

Short term deposits

23,900,000

16,300,000

11,400,000

6,650,000

7,503,977

Amount due from holding company

-

-

-

160

-

Amount due from related companies

-

-

321,076

-

-

Amount due from associated companies

19,749,798

21,162,621

-

-

-

Cash & bank balances

7,583,525

12,558,762

20,306,026

22,722,753

9,014,936

Others

-

8,000

230,147

-

5,555,133

 

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

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

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

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

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

TOTAL CURRENT ASSETS

109,907,815

114,078,763

134,716,904

166,369,686

174,868,253

 

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

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

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

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

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

TOTAL ASSET

182,002,577

193,228,189

294,255,943

342,614,968

357,872,770

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

17,488,441

15,752,758

16,292,146

23,197,160

31,279,777

Other creditors &accruals

8,565,651

8,976,454

111,236,641

26,784,560

29,999,224

Hire purchase & lease creditors

-

-

36,029

19,781

-

Short term borrowings/Term loans

-

-

11,479,814

15,937,712

27,967,659

Other borrowings

-

-

2,750,000

5,500,000

-

Amounts owing to holding company

424,048

-

900

-

-

Amounts owing to related companies

121,493

951,770

1,579,826

75,558,345

70,247,946

Amounts owing to director

-

-

1,184,730

-

-

Provision for taxation

747,304

3,075,020

-

1,634,825

-

Other liabilities

-

239,007

108,515

331,969

104,790

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

27,346,937

28,995,009

144,668,601

148,964,352

159,599,396

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

82,560,878

85,083,754

<9,951,697>

17,405,334

15,268,857

 

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

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

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

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

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

TOTAL NET ASSETS

154,655,640

164,233,180

149,587,342

193,650,616

198,273,374

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

61,000,000

61,000,000

61,000,000

61,000,000

61,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

61,000,000

61,000,000

61,000,000

61,000,000

61,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

10,400,774

10,400,774

8,756,107

-

-

Revaluation reserve

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

Exchange equalisation/fluctuation reserve

-

-

-

6,431,565

5,101,804

Retained profit/(loss) carried forward

79,213,866

85,222,268

33,015,805

65,065,670

64,366,383

Others

-

118,138

6,358,735

8,756,107

8,756,107

 

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

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

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

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

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

TOTAL RESERVES

91,114,640

97,241,180

49,630,647

81,753,342

79,724,294

 

 

 

 

 

 

MINORITY INTEREST

-

-

-

4,162,003

4,062,211

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

152,114,640

158,241,180

110,630,647

146,915,345

144,786,505

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

-

-

30,640,428

39,339,959

-

Other long term borrowings

-

-

-

-

44,091,869

Hire purchase creditors

-

-

20,267

73,312

-

Deferred taxation

2,541,000

5,992,000

8,296,000

7,322,000

9,395,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

2,541,000

5,992,000

38,956,695

46,735,271

53,486,869

 

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

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

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

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

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

 

154,655,640

164,233,180

149,587,342

193,650,616

198,273,374

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

ROBIN RESOURCES (MALAYSIA) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

31,483,525

28,858,762

31,706,026

29,372,753

16,518,913

Net Liquid Funds

31,483,525

28,858,762

31,706,026

29,372,753

16,518,913

Net Liquid Assets

47,407,250

46,145,582

<84,898,352>

<78,661,179>

<90,392,204>

Net Current Assets/(Liabilities)

82,560,878

85,083,754

<9,951,697>

17,405,334

15,268,857

Net Tangible Assets

154,655,640

164,233,180

147,957,802

193,205,855

197,346,124

Net Monetary Assets

44,866,250

40,153,582

<123,855,047>

<125,396,450>

<143,879,073>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

44,926,538

60,870,764

72,059,528

Total Liabilities

29,887,937

34,987,009

183,625,296

195,699,623

213,086,265

Total Assets

182,002,577

193,228,189

294,255,943

342,614,968

357,872,770

Net Assets

154,655,640

164,233,180

149,587,342

193,650,616

198,273,374

Net Assets Backing

152,114,640

158,241,180

110,630,647

146,915,345

144,786,505

Shareholders' Funds

152,114,640

158,241,180

110,630,647

146,915,345

144,786,505

Total Share Capital

61,000,000

61,000,000

61,000,000

61,000,000

61,000,000

Total Reserves

91,114,640

97,241,180

49,630,647

81,753,342

79,724,294

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

1.15

1.00

0.22

0.20

0.10

Liquid Ratio

2.73

2.59

0.41

0.47

0.43

Current Ratio

4.02

3.93

0.93

1.12

1.10

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

69

64

119

123

140

Debtors Ratio

40

40

38

47

40

Creditors Ratio

45

26

26

30

42

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.41

0.41

0.50

Liabilities Ratio

0.20

0.22

1.66

1.33

1.47

Times Interest Earned Ratio

0.00

26.92

<5.98>

<0.54>

0.57

Assets Backing Ratio

2.54

2.69

2.43

3.17

3.24

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

5.83

25.48

<14.32>

<3.05>

<0.79>

Net Profit Margin

5.55

27.93

<13.94>

0.25

4.47

Return On Net Assets

7.02

35.76

<18.86>

<1.56>

1.49

Return On Capital Employed

7.02

35.76

<18.65>

<1.53>

1.45

Return On Shareholders' Funds/Equity

6.80

39.16

<28.97>

0.48

8.48

Dividend Pay Out Ratio (Times)

1.59

0.16

0.00

0.00

0.35

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.97

UK Pound

1

Rs.87.50

Euro

1

Rs.70.16

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

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.