MIRA INFORM REPORT

 

 

Report Date :

08.10.2012

 

IDENTIFICATION DETAILS

 

Name :

VENUS CERAMIC INDUSTRY SDN BHD

 

 

Registered Office :

8C-1 Jalan Tun Abdul Razak (Susur 3), 1st Floor, 80000 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

18.05.2004

 

 

Com. Reg. No.:

652788-D

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturing and trading of ceramic tiles

 

 

No. of Employees :

500 [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.

:

652788-D

COMPANY NAME

:

VENUS CERAMIC INDUSTRY SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

18/05/2004

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

8C-1 JALAN TUN ABDUL RAZAK (SUSUR 3), 1ST FLOOR, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

PLO 58, KAWASAN PERINDUSTRIAN KLUANG II, BATU 4, JALAN MERSING, 86000 KLUANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-7878999

FAX.NO.

:

07-7878887

EMAIL

:

info@venustiles.com.my

WEB SITE

:

www.venustiles.com.my

CONTACT PERSON

:

CHANG CHIANG-AN ( DIRECTOR )

INDUSTRY CODE

:

26920

PRINCIPAL ACTIVITY

:

MANUFACTURING AND TRADING OF CERAMIC TILES

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO 
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO 
ORDINARY SHARES 5,500,000 CASH AND 4,500,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 87,599,684 [2012]

NET WORTH

:

MYR 44,841,242 [2012]

STAFF STRENGTH

:

500 [2012]

BANKER (S)

:

OCBC BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

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 and trading of ceramic tiles.

 

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

(%)

WANG JEN-CHING +

PLO 58 KAWASAN PERINDUSTRIAN KLUANG 11, BATU 4 JALAN MERSING, 86000 KLUANG, JOHOR, MALAYSIA.

301998606

6,800,000.00

68.00

CHANG CHIANG AN +

PLO 58 KAWASAN PERINDUSTRIAN KLUANG 11, BATU 4 JALAN MERSING, 86000 KLUANG, JOHOR, MALAYSIA.

302324269

1,050,000.00

10.50

WANG TAI-YEN +

PLO 58 KAWASAN PERINDUSTRIAN KLUANG 11, BATU 4 JALAN MERSING, 86000 KLUANG, JOHOR, MALAYSIA.

200589615

1,000,000.00

10.00

CHIN SHENG-JER +

PLO 58 KAWASAN PERINDUSTRIAN KLUANG 11, BATU 4 JALAN MERSING, 86000 KLUANG, JOHOR, MALAYSIA.

210824622

1,000,000.00

10.00

LIM THUAN BIN +

APARTMENT BLOCK 105, BEDOK NORTH, AVENUE 4, #12-2178, 460105, JOHOR, SINGAPORE.

E1588897L

150,000.00

1.50

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

------

10,000,000.00

100.00

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

=====

+ Also Director

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

LIM THUAN BIN

Address

:

APARTMENT BLOCK 105, BEDOK NORTH, AVENUE 4, #12-2178, 460105, JOHOR, SINGAPORE.

IC / PP No

:

E1588897L

 

DIRECTOR 2

 

Name Of Subject

:

WANG TAI-YEN

Address

:

PLO 58 KAWASAN PERINDUSTRIAN KLUANG 11, BATU 4 JALAN MERSING, 86000 KLUANG, JOHOR, MALAYSIA.

IC / PP No

:

200589615

 

DIRECTOR 3

 

Name Of Subject

:

CHIN SHENG-JER

Address

:

PLO 58 KAWASAN PERINDUSTRIAN KLUANG 11, BATU 4 JALAN MERSING, 86000 KLUANG, JOHOR, MALAYSIA.

IC / PP No

:

210824622

 

DIRECTOR 4

 

Name Of Subject

:

CHANG CHIANG AN

Address

:

PLO 58 KAWASAN PERINDUSTRIAN KLUANG 11, BATU 4 JALAN MERSING, 86000 KLUANG, JOHOR, MALAYSIA.

IC / PP No

:

302324269

 

DIRECTOR 5

 

Name Of Subject

:

WANG JEN-CHING

Address

:

PLO 58 KAWASAN PERINDUSTRIAN KLUANG 11, BATU 4 JALAN MERSING, 86000 KLUANG, JOHOR, MALAYSIA.

IC / PP No

:

301998606



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHANG CHIANG-AN

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

DELOITTE KASSIMCHAN

Auditor' Address

:

21 JALAN TUN ABDUL RAZAK, (SUSUR 1/1), 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LAW PHOOI YEN

IC / PP No

:

A0709246

New IC No

:

670329-08-5250

Address

:

32, JALAN PESONA 9, TAMAN PELANGI INDAH, 81800 ULU TIRAM, JOHOR, MALAYSIA.

 

2)

Company Secretary

:

MS. ONG LEY CHENG

IC / PP No

:

5508790

New IC No

:

581229-01-5058

Address

:

14, LORONG ARA 3, TAMAN BAKARIAH, JALAN BAKARIAH, 84000 MUAR, JOHOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

OCBC 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

:

23/01/2006

Description Of Charge

:

1. SUPPLEMENTAL FACILITY AGREEMENT 2. SUPPLEMENTAL DEED OF ASSIGNMENT

Amount Secured

:

N/A

Description Of Property Affected

:

2 PIECES OF LEASEHOLD INDUSTRIAL LAND AND BUILDINGS

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
8A, JALAN DATO HAJI HASSAN, 86000 KLUANG, JOHOR, MALAYSIA.

Form 40 Dated

Registered and Numbered 2 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

11/09/2007

Description Of Charge

:

FIRST LEGAL CHARGE

Amount Secured

:

N/A

Description Of Property Affected

:

2 PIECES OF LEASEHOLD INDUSTRIAL LAND AND BUILDINGS

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
8A, JALAN DATO HAJI HASSAN, 86000 KLUANG, JOHOR, MALAYSIA.

Form 40 Dated 20/09/2007

Registered and Numbered 3 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

11/09/2007

Description Of Charge

:

DEBENTURE

Amount Secured

:

N/A

Description Of Property Affected

:

2 PIECES OF LEASEHOLD INDUSTRIAL LAND

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
8A, JALAN DATO HAJI HASSAN, 86000 KLUANG, JOHOR, MALAYSIA.

Form 40 Dated 20/09/2007

Registered and Numbered 4 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

11/09/2007

Description Of Charge

:

SECOND LEGAL CHARGE

Amount Secured

:

N/A

Description Of Property Affected

:

2 PIECES OF LEASEHOLD INDUSTRIAL LAND

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
8A, JALAN DATO HAJI HASSAN, 86000 KLUANG, JOHOR, MALAYSIA.

Form 40 Dated 20/09/2007

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

15/11/2007

Description Of Charge

:

DEBENTURE

Amount Secured

:

N/A

Description Of Property Affected

:

1. ALL LANDS AND INTERESTT IN THE LAND 2.ALL STOCKS, SHARES, BONDS AND SECURITIES 3. ALL BOOKS AND OTHER DEBTS, REVENUES AND CLAIMS 4. UNCALLLED CAPITAL, GOODWILL AND ALL PATENTS 5. UNDERTAKING AND ALL OTHER PROPERTIES, ASSETS AND RIGHTS

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
8A, JALAN DATO HAJI HASSAN, 86000 KLUANG, JOHOR, MALAYSIA.

Form 40 Dated 26/11/2007

Registered and Numbered 6 In The Register of Charges



ENCUMBRANCE 6

Date of Creation

:

12/10/2010

Description Of Charge

:

DEBENTURES

Amount Secured

:

N/A

Description Of Property Affected

:

ALL THE CHARGOR'S PLANT AND MACHINERY

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
8A, JALAN DATO HAJI HASSAN, 86000 KLUANG, JOHOR, MALAYSIA.

                                                    

Form 40 Dated 15/10/2010

Registered and Numbered 7 In The Register of Charges



LEGAL CHECK AGAINST SC


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

No legal action was found in our databank. 

No winding up petition was found in our databank. 

DEFAULTER CHECK AGAINST SC


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

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

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

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 PACIFIC

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Products manufactured

:

CERAMIC TILES

Certification of Products

:

1 ) MS ISO 13006 : 2003

Competitor(s)

:

BOUSTEAD REALTY SDN BHD
CERAMTEC INNOVATIVE CERAMIC ENGINEERING (M) SDN BHD
STONE MASTER (MALAYSIA) SDN BHD

 

Total Number of Employees:

YEAR

2012

GROUP

N/A

COMPANY

500

 

Branch

:

NO

 

Other Information:


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

The SC's manufacturing processes utilize latest equipments from the world renowned machinery company, SACMI of Italy, combined with latest manufacturing technology processes.

Its range of products include ceramic wall tiles 20cm x 25cm; ceramic floor tiles 30cm x 30cm, and 40cm x 40cm; homogeneous tiles 30cm x 30cm and 30cm x 60cm; full bodied tiles 60cm x 60cm; porcellanato tiles 30cm x 30cm, 30cm x 60cm and 60cm x 60cm; and nano penetrated polished tiles 10cm x 60cm, 10cm x 80cm, 30cm x 30cm, 40cm x 40cm, 30cm x 60cm, 40cm x 80cm, 60cm x 60cm, and 80cm x 80cm. 

It also has varieties of product surface includes super glossy, glossy, matte, marble effect and slate. 

 

 

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

:

07-7878999

Match

:

N/A

Address Provided by Client

:

IO 58 KAWASAN PERINDUSTRIAN KLUANG II BATU 4 JALAN MERSING 86000

Current Address

:

PLO 58, KAWASAN PERINDUSTRIAN KLUANG II, BATU 4, JALAN MERSING, 86000 KLUANG, JOHOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided is incomplete.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

13.22%

]

Profit/(Loss) Before Tax

:

Decreased

[

46.74%

]

Return on Shareholder Funds

:

Unfavourable

[

4.70%

]

Return on Net Assets

:

Unfavourable

[

9.18%

]

The higher turnover could be attributed to the favourable market condition and the SC could be gaining the market share progressively.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

[

171 Days

]

Debtor Ratio

:

Unfavourable

[

110 Days

]

Creditors Ratio

:

Favourable

[

27 Days

]

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

Liquidity

Liquid Ratio

:

Unfavourable

[

0.26 Times

]

Current Ratio

:

Unfavourable

[

0.60 Times

]

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

Interest Cover

:

Acceptable

[

3.20 Times

]

Gearing Ratio

:

Unfavourable

[

1.17 Times

]

The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. The SC was highly geared, thus it had a high financial risk. The SC was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the SC will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the SC has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the SC's turnover and the interest it needs to pay.

Overall Assessment :

Although the SC's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the SC's profit margin. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. The SC's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the SC : POOR

 

 

 

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

26920 : Manufacture of refractory ceramic products

INDUSTRY :

CONSTRUCTION


Construction industry expected to play a vital role by contribution of 7%to the GDP growth in 2012 . The productivity levels of the construction anticipated to grow by 5.6% in 2012, compared with 3.09% 2011 . The Government and the private sector work together in order to achieve this target. Malaysia's economy was expected to sustain its growth momentum in 2012, with productivity growing by more than 4%, driven by the construction.


The productivity levels of the construction and services sectors are anticipated to grow by 5.6% and 4.9%, respectively, in 2012, compared with 3.09% and 4.92% year 2011.


The construction sector expected turns to grow eventhough local players be presured by eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries due to goverment new projects. Growth in the construction sector more than doubled to 6.4%, led mainly by the residential and civil engineering sub-sectors construction at first quarter 2012.


The acceleration of government project such as the remaining contracts for six packages of the elevated portion of the Sungai Buloh-Kajang (SBK) line, the RM7 billion West Coast Expressway (WCE), the RM7 billion electrified double tracking (EDT) from Gemas to Johor Baru and the RM30 billion Sarawak Corridor of Renewable Energy (SCORE),easily increase job oppurtunity in year 2012. 


Major infrastructure improvements in the Klang Valley such as the MRT (My Rapid Transit), River Rehabilitation and covered walkway projects are expected to boost property prices.


This sector estimate get no less than RM20 billion at the end of year 2012. The sector started strongly with RM5.9 billion job wins in the first quarter 2012, which was already 74.5 per cent of the total RM7.9 billion awarded at the year 2011. Government would progressively award contracts over the local players at third quarter 2012, to ensure the projects completed by July 2017. The construction sector is likely to have a banner year at year 2012 with up to RM20 billion worth of jobs to be awarded.

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 2004, the SC is a Private Limited company, focusing on manufacturing and trading of ceramic tiles. Having been in business for 8 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. 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. Being a large entity, the SC has a steady workforce of 500 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. 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.


Financially, the SC registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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. The high gearing ratio clearly implied that the SC was supported by more debt than equity. Thus, the SC is exposed to high financial risk. Fortunately, given a positive net worth standing at MYR 44,841,242, 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.


The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.


The industry 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 normally.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

VENUS CERAMIC INDUSTRY SDN BHD

 

Financial Year End

31/03/2012

31/03/2011

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

TURNOVER

87,599,684

77,372,023

Other Income

95,320

5,682

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

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

Total Turnover

87,695,004

77,377,705

Costs of Goods Sold

<76,089,900>

<62,594,364>

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

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

Gross Profit

11,605,104

14,783,341

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

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

PROFIT/(LOSS) FROM OPERATIONS

5,309,479

9,968,408

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

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

PROFIT/(LOSS) BEFORE TAXATION

5,309,479

9,968,408

Taxation

<3,201,000>

<419,000>

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

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

PROFIT/(LOSS) AFTER TAXATION

2,108,479

9,549,408

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

32,732,763

23,183,355

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

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

As restated

32,732,763

23,183,355

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

34,841,242

32,732,763

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

34,841,242

32,732,763

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

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

INTEREST EXPENSE (as per notes to P&L)

Bankers' acceptance

393,326

128,348

Hire purchase

102,739

100,105

Term loan / Borrowing

1,912,312

873,485

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

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

2,408,377

1,101,938

 

 

 

BALANCE SHEET

 

 

VENUS CERAMIC INDUSTRY SDN BHD

 

ASSETS EMPLOYED:

FIXED ASSETS

132,279,855

106,544,267

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

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

TOTAL LONG TERM ASSETS

132,279,855

106,544,267

CURRENT ASSETS

Stocks

41,043,042

23,452,444

Trade debtors

26,391,208

19,980,550

Other debtors, deposits & prepayments

2,332,884

14,112,537

Cash & bank balances

2,032,583

715,559

Others

786,633

-

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

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

TOTAL CURRENT ASSETS

72,586,350

58,261,090

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

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

TOTAL ASSET

204,866,205

164,805,357

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

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

CURRENT LIABILITIES

Trade creditors

5,616,989

3,432,840

Other creditors & accruals

11,472,747

11,063,375

Hire purchase & lease creditors

539,429

493,021

Short term borrowings/Term loans

23,138,282

4,186,342

Amounts owing to director

80,035,197

72,414,151

Provision for taxation

-

439,553

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

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

TOTAL CURRENT LIABILITIES

120,802,644

92,029,282

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

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

NET CURRENT ASSETS/(LIABILITIES)

<48,216,294>

<33,768,192>

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

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

TOTAL NET ASSETS

84,063,561

72,776,075

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

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

SHARE CAPITAL

Ordinary share capital

10,000,000

10,000,000

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

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

TOTAL SHARE CAPITAL

10,000,000

10,000,000

RESERVES

Retained profit/(loss) carried forward

34,841,242

32,732,763

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

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

TOTAL RESERVES

34,841,242

32,732,763

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

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

SHAREHOLDERS' FUNDS/EQUITY

44,841,242

42,732,763

LONG TERM LIABILITIES

Other long term borrowings

27,958,560

22,463,088

Hire purchase creditors

810,759

328,224

Deferred taxation

10,453,000

7,252,000

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

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

TOTAL LONG TERM LIABILITIES

39,222,319

30,043,312

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

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

84,063,561

72,776,075

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

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

 

FINANCIAL RATIO

 

 

VENUS CERAMIC INDUSTRY SDN BHD

 

TYPES OF FUNDS

Cash

2,032,583

715,559

Net Liquid Funds

2,032,583

715,559

Net Liquid Assets

<89,259,336>

<57,220,636>

Net Current Assets/(Liabilities)

<48,216,294>

<33,768,192>

Net Tangible Assets

84,063,561

72,776,075

Net Monetary Assets

<128,481,655>

<87,263,948>

BALANCE SHEET ITEMS

Total Borrowings

52,447,030

27,470,675

Total Liabilities

160,024,963

122,072,594

Total Assets

204,866,205

164,805,357

Net Assets

84,063,561

72,776,075

Net Assets Backing

44,841,242

42,732,763

Shareholders' Funds

44,841,242

42,732,763

Total Share Capital

10,000,000

10,000,000

Total Reserves

34,841,242

32,732,763

LIQUIDITY (Times)

Cash Ratio

0.02

0.01

Liquid Ratio

0.26

0.38

Current Ratio

0.60

0.63

WORKING CAPITAL CONTROL (Days)

Stock Ratio

171

111

Debtors Ratio

110

94

Creditors Ratio

27

20

SOLVENCY RATIOS (Times)

Gearing Ratio

1.17

0.64

Liabilities Ratio

3.57

2.86

Times Interest Earned Ratio

3.20

10.05

Assets Backing Ratio

8.41

7.28

PERFORMANCE RATIO (%)

Operating Profit Margin

6.06

12.88

Net Profit Margin

2.41

12.34

Return On Net Assets

9.18

15.21

Return On Capital Employed

9.12

15.11

Return On Shareholders' Funds/Equity

4.70

22.35

Dividend Pay Out Ratio (Times)

0.00

0.00

 

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.62

UK Pound

1

Rs.83.57

Euro

1

Rs.67.17

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.