MIRA INFORM REPORT

 

 

Report Date :

27.04.2013

 

IDENTIFICATION DETAILS

 

Name :

SYNTHOMER SDN. BHD.

 

 

Registered Office :

Bangunan Revertex, 1 1/2 Miles, Jalan Batu Pahat, 86000 Kluang, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

07.04.2000

 

 

Com. Reg. No.:

510369-K

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacture and trading of synthetic latex rubber

 

 

No. of Employees :

100 (2013)

 

 

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 :

Regular

Litigation :

Clear 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. 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 about 35% of government revenue in 2011. Bank Negera Malaysia (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.

:

510369-K

COMPANY NAME

:

SYNTHOMER SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/04/2000

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

BANGUNAN REVERTEX, 1 1/2 MILES, JALAN BATU PAHAT, 86000 KLUANG, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

UNIT 6-6, LEVEL 16, WISMA UOA DAMANSARA II, NO 6, CHANGKAT SEMANTAN, DAMANSARA HEIGHT , 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-20807200

FAX.NO.

:

03-20807300

EMAIL

:

INFO.ASIA@SYNTHOMER.COM

WEB SITE

:

WWW.SYNTHOMER.COM

CONTACT PERSON

:

BRENDAN CATLOW ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

22193

PRINCIPAL ACTIVITY

:

MANUFACTURE AND TRADING OF SYNTHETIC LATEX RUBBER

AUTHORISED CAPITAL

:

MYR 250,000,000.00 DIVIDED INTO 
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 2,000.00 OF MYR 100,000.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 184,000,000.00 DIVIDED INTO 
ORDINARY SHARES 40,000,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 1,440 CASH OF MYR 100,000.00 EACH.

 

 

 

SALES

:

MYR 514,768,000 [2011]

NET WORTH

:

MYR 169,119,000 [2011]

M1000 OVERALL RANKING

:

953[2011]

M1000 INDUSTRY RANKING

:

32[2011]

 

 

 

STAFF STRENGTH

:

100 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MARGINAL 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) manufacture and trading of synthetic latex rubber.

 

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

2011

2009

 

OVERALL RANKING

953

922

 

INDUSTRY RANKING

32

25

 

 

The immediate holding company of the SC is YULE CATTO NEDERLAND BV, a company incorporated in NETHERLANDS.

 

The ultimate holding company of the SC is YULE CATTO & CO. PLC, a company incorporated in UNITED KINGDOM.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

YULE CATTO NEDERLAND BV

VEEMWEG 29-31, 3771 MTY BARNVELD, THE NETHERLANDS, NETHERLANDS.

XLZ000011159

40,001,440.00

100.00

 

 

 

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

------

 

 

 

40,001,440.00

100.00

 

 

 

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

=====

 

+ Also Director

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

DR BRENDAN CATLOW

Address

:

108, DUTA NUSANTARA, JALAN SRI HARTAMAS , 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

761250486

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

01/03/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

DERICK BLA WHYTE

Address

:

HILL HOUSE, BRENT HALL ROAD, FINCHINGFIELD, ESSEX CM7, UNITED KINGDOM.

IC / PP No

:

761114849

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

21/08/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. MINHAT BIN WAHID

Address

:

72, JALAN TTS 5, TAMAN TASIK SEMENYIH, 43500 SEMENYIH, SELANGOR, MALAYSIA.

IC / PP No

:

5679648

New IC No

:

590426-04-5015

Date of Birth

:

26/04/1959

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

17/03/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

BRENDAN CATLOW

Address

:

108 DUTA NUSANTARA, JALAN SRI HARTAMAS, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

761308651

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

01/03/2007

 

 

 

 

 

 

 

 

 

 

 

 


MANAGEMENT

 

 

 

1)

Name of Subject

:

BRENDAN CATLOW

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

JAIKUMAR

 

Position

:

FINANCE DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

DAVID ANTHONY SPENSLEY

 

Position

:

REGIONAL MARKETING MANAGER

 

 

 

 

 

4)

Name of Subject

:

MINHAT WAHID

 

Position

:

HUMAN RESOURCE DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE

Auditor' Address

:

UPTOWN 1, 1JALAN SS21/58, DAMANSARA UPTOWN, LEVEL 19, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. DINESH A/L SANA SINGHI

 

IC / PP No

:

A1824963

 

New IC No

:

720225-01-5365

 

Address

:

19 JALAN 21/1, 46300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

 

 

ENCUMBRANCE (S)


ENCUMBRANCE 1

Date of Creation

:

20/01/2009

Description Of Charge

:

NEGATIVE PLEDGE

 

Amount Secured

:

RM30,000,000.00

Description Of Property Affected

:

NEGATIVE PLEDGE

 

Name & Address Of Chargee

:

MALAYAN BANKING BERHAD

 

 

 

 

 

 

 

Form 40 Dated 06/02/2009

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

20/01/2009

Description Of Charge

:

NEGATIVE PLEDGE

 

Amount Secured

:

RM70,000,000.00

Description Of Property Affected

:

NEGATIVE PLEDGE

 

Name & Address Of Chargee

:

MALAYAN BANKING BERHAD

 

 

 

 

 

 

 

Form 40 Dated 06/02/2009

Registered and Numbered 2 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

Import Countries

:

ASIA,UNITED KINGDOM



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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

60%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

40%

Export Market

:

ASIA PACIFIC

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

TELEGRAPHIC TRANSFER (TT)
CHEQUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

SYNHETIC LATEX RUBBER

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2006

 

 

 

 

Competitor(s)

:

FELDA RUBBER INDUSTRIES SDN. BHD.
LEE RUBBER (SELANGOR) SDN BHD
LUNG KONG RUBBER SDN BHD
TIONG HUAT RUBBER FACTORY SDN BHD
TITI LATEX SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIAN RUBBER GLOVE MANUFACTURERS ASSOCIATION (MRGMA)

 

 

 

Ownership of premises

:

OWNED

 

Factory / Premises

:

BANGUNAN REVERTEX, 1 1/2 MILES, JALAN BATU PAHAT, 86000 KLUANG, JOHOR, MALAYSIA. 
Tel No: 07-7731000

 

 

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

100

100

100

114

101

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacture and trading of synthetic latex rubber. 

The SC involved in the design and manufacture of synthetic dispersions and latexes. 

The SC leads the world in the design and manufacturer of synthetic dispersions and latices, which are used widely in the manufacture of speciality coatings, adhesives, construction chemical and protective gloves.

The SC's operating across 4 continents with 9 major manufacturing sites it is the recognized leader in emulsion based polymer technologies. 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

60320807200

Current Telephone Number

:

03-20807200

Match

:

YES

 

 

 

Address Provided by Client

:

UNIT 6-6, LEVEL 6, WISMA UOA DAMANSARA II NO.6

CHANGKAT SEMANT

Current Address

:

UNIT 6-6, LEVEL 16, WISMA UOA DAMANSARA II, NO 6, CHANGKAT SEMANTAN, DAMANSARA HEIGHT , 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

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

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Favourable

[

35.53%

]

 

Return on Net Assets

:

Acceptable

[

29.38%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC's management have been efficient in controlling its operating costs. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

16 Days

]

 

Debtor Ratio

:

Favourable

[

42 Days

]

 

Creditors Ratio

:

Favourable

[

43 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. 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

[

1.22 Times

]

 

Current Ratio

:

Unfavourable

[

1.45 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

17.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.40 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Overall financial condition of the SC : STABLE

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

<0.5>

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

<2.7>

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

<17.2>

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

<1.2>

Investment ( % )

8.0

2.8

<0.3>

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

<28,450>

<40,482>

<45,511>

<42,297>

<39,993>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<5.6>

<5.4>

<4.5>

<4.0>

Inflation ( % Change in Composite CPI)

<5.2>

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

<0.1>

6.2

3.0

<0.0>

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

<34.5>

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

<1.1>

<3.4>

10.8

<2.8>

-

Rubber

<19.8>

9.9

6.1

<0.6>

-

Forestry & Logging

<5.9>

<3.3>

<7.6>

<2.2>

-

Fishing

5.5

5.6

2.1

<0.7>

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

<3.8>

0.2

<5.7>

1.5

2.7

Oil & Gas

2.1

0.5

<1.7>

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

<9.4>

11.4

4.7

4.2

4.9

Exported-oriented Industries

<19.0>

12.1

2.8

4.1

-

Electrical & Electronics

<30.3>

28.4

<4.9>

1.6

-

Rubber Products

<10.1>

25.3

15.4

3.6

-

Wood Products

<24.1>

20.1

<4.9>

4.6

-

Textiles & Apparel

<19.5>

<0.4>

14.8

<7.1>

-

Domestic-oriented Industries

<9.8>

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

<7.7>

16.2

5.5

9.9

-

Plastic Products

<9.1>

2.4

3.8

-

-

Iron & Steel

<32.7>

29.3

2.4

-

-

Fabricated Metal Products

<2.5>

14.9

25.2

-

-

Non-metallic Mineral

<15.5>

20.2

27.1

6.6

-

Transport Equipment

<13.5>

36.5

<10.4>

13.7

-

Paper & Paper Products

<5.0>

18.7

14.8

<7.8>

-

Crude Oil Refineries

0.2

<11.4>

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

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

22193 : Rubber remilling and latex processing

 

 

INDUSTRY :

NATURAL RUBBER

 

 

 


Malaysia aims to make a comeback as the world's largest rubber producer, with the opening of more plantations in Sabah and Sarawak. Currently, Thailand is the world's no. 1 in terms of production,followed by Indonesia. The Malaysian Government is placing emphasis on producing more rubber in Malaysia, concentrating on Peninsular Malaysia as well as Sabah and Sarawak. 


According to the Association of Natural Rubber Producing Countries (ANRPC),Global rubber production rose 4.9 per cent in the second quarter (April-June) of the 2012. Thailand forecasted to produce 3.3 million tonnes, followed by Indonesia (2.9 million tonnes) and Malaysia (975,000 tonnes).Malaysia's natural rubber production in March 2012 was 67,376 tonnes, a decrease of 23.5% or 20,701 tonnes compared to the February 2012.Howewer, natural rubber production expected to increace by 2.1 % or 1388 tonnes year-on-year (y-o-y).


The Malaysian Government had announced an allocation for planting new areas with rubber trees as well as the rubber replanting scheme during the tabling of Budget 2012.According to Sarawak's Rubber Industry Smallholders' Development Authority (Risda), this benefit 20,000 smallholders for the replanting.This allocation will provide opportunities for smallholders to plant more rubber trees in the future. The rubber price will continue to rise, translating into more revenue for the country, while having a positive impact on smallholders.


According to the Malaysian Rubber Products Manufacturers' Association, the reason behind Malaysia's fall from the top spot in respect of rubber production was the shift in interest towards downstream activities and higher returns from palm oil.Hence,at the end of 2012, active replanting activity expected to cover Sabah and sarawak about 5000ha each and about 38 000ha in penisula under goverment new replanting program and allocation.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 2000, the SC is a Private Limited company, focusing on manufacture and trading of synthetic latex rubber. 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 established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. To date, the SC has a total workforce of 100 employees in its business 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.


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 169,119,000, the SC should be able to maintain its business in the near terms.


Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.


Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. However, with the SC's favourable conditions, it should have acquired competitive edge from its competitors.


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)

SYNTHOMER SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

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

514,768,000

458,991,000

313,238,000

412,321,000

298,216,000

 

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

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

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

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

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

Total Turnover

514,768,000

458,991,000

313,238,000

412,321,000

298,216,000

Costs of Goods Sold

<431,138,000>

<382,849,000>

<251,911,000>

-

-

 

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

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

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

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

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

Gross Profit

83,630,000

76,142,000

61,327,000

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

60,090,000

47,540,000

36,741,000

36,705,000

37,224,000

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

60,090,000

47,540,000

36,741,000

36,705,000

37,224,000

Taxation

-

95,000

<85,000>

<9,000>

<24,000>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

60,090,000

47,635,000

36,656,000

36,696,000

37,200,000

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

14,029,000

5,394,000

68,738,000

32,042,000

<5,158,000>

 

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

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

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

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

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

As restated

14,029,000

5,394,000

68,738,000

32,042,000

<5,158,000>

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

74,119,000

53,029,000

105,394,000

68,738,000

32,042,000

- General

-

-

<100,000,000>

-

-

DIVIDENDS - Ordinary (paid & proposed)

<45,000,000>

<39,000,000>

-

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

29,119,000

14,029,000

5,394,000

68,738,000

32,042,000

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

56,000

65,000

119,000

152,000

131,000

Revolving loans

95,000

81,000

177,000

257,000

251,000

Term loan / Borrowing

3,604,000

3,927,000

2,415,000

-

-

Others

-

143,000

270,000

132,000

38,000

 

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

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

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

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

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

 

3,755,000

4,216,000

2,981,000

541,000

420,000

 

 

 

BALANCE SHEET

 

 

SYNTHOMER SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

172,794,000

139,677,000

152,758,000

170,819,000

136,429,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

172,794,000

139,677,000

152,758,000

170,819,000

136,429,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

22,906,000

28,773,000

28,714,000

28,282,000

28,322,000

Trade debtors

58,986,000

69,993,000

55,085,000

56,771,000

49,560,000

Other debtors, deposits & prepayments

1,511,000

2,492,000

2,733,000

3,830,000

4,596,000

Short term deposits

600,000

67,600,000

63,600,000

10,000,000

8,000,000

Amount due from related companies

37,531,000

589,000

1,000

-

33,000

Cash & bank balances

22,239,000

6,246,000

3,637,000

5,381,000

6,375,000

Others

154,000

179,000

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

143,927,000

175,872,000

153,770,000

104,264,000

96,886,000

 

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

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

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

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

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

TOTAL ASSET

316,721,000

315,549,000

306,528,000

275,083,000

233,315,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

50,907,000

63,122,000

54,885,000

60,562,000

41,658,000

Other creditors & accruals

23,649,000

8,352,000

5,014,000

4,285,000

8,506,000

Short term borrowings/Term loans

19,328,000

15,801,000

12,956,000

-

-

Amounts owing to related companies

5,348,000

3,033,000

1,161,000

1,497,000

11,065,000

Provision for taxation

-

-

12,000

1,000

3,000

Other liabilities

201,000

320,000

62,000

-

41,000

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

99,433,000

90,628,000

74,090,000

66,345,000

61,273,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

44,494,000

85,244,000

79,680,000

37,919,000

35,613,000

 

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

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

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

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

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

TOTAL NET ASSETS

217,288,000

224,921,000

232,438,000

208,738,000

172,042,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

40,000,000

40,000,000

40,000,000

40,000,000

40,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

40,000,000

40,000,000

40,000,000

40,000,000

40,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

29,119,000

14,029,000

5,394,000

68,738,000

32,042,000

Capital redemption reserve

100,000,000

100,000,000

100,000,000

100,000,000

100,000,000

 

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

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

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

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

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

TOTAL RESERVES

129,119,000

114,029,000

105,394,000

168,738,000

132,042,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

169,119,000

154,029,000

145,394,000

208,738,000

172,042,000

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

48,169,000

70,892,000

87,044,000

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

48,169,000

70,892,000

87,044,000

-

-

 

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

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

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

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

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

 

217,288,000

224,921,000

232,438,000

208,738,000

172,042,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

SYNTHOMER SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

22,839,000

73,846,000

67,237,000

15,381,000

14,375,000

Net Liquid Funds

22,839,000

73,846,000

67,237,000

15,381,000

14,375,000

Net Liquid Assets

21,588,000

56,471,000

50,966,000

9,637,000

7,291,000

Net Current Assets/(Liabilities)

44,494,000

85,244,000

79,680,000

37,919,000

35,613,000

Net Tangible Assets

217,288,000

224,921,000

232,438,000

208,738,000

172,042,000

Net Monetary Assets

<26,581,000>

<14,421,000>

<36,078,000>

9,637,000

7,291,000

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

67,592,000

86,774,000

100,177,000

257,000

251,000

Total Liabilities

147,602,000

161,520,000

161,134,000

66,345,000

61,273,000

Total Assets

316,721,000

315,549,000

306,528,000

275,083,000

233,315,000

Net Assets

217,288,000

224,921,000

232,438,000

208,738,000

172,042,000

Net Assets Backing

169,119,000

154,029,000

145,394,000

208,738,000

172,042,000

Shareholders' Funds

169,119,000

154,029,000

145,394,000

208,738,000

172,042,000

Total Share Capital

40,000,000

40,000,000

40,000,000

40,000,000

40,000,000

Total Reserves

129,119,000

114,029,000

105,394,000

168,738,000

132,042,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.23

0.81

0.91

0.23

0.23

Liquid Ratio

1.22

1.62

1.69

1.15

1.12

Current Ratio

1.45

1.94

2.08

1.57

1.58

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

16

23

33

25

35

Debtors Ratio

42

56

64

50

61

Creditors Ratio

43

60

80

54

51

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.40

0.56

0.69

0.00

0.00

Liabilities Ratio

0.87

1.05

1.11

0.32

0.36

Times Interest Earned Ratio

17.00

12.28

13.33

68.85

89.63

Assets Backing Ratio

5.43

5.62

5.81

5.22

4.30

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

11.67

10.36

11.73

8.90

12.48

Net Profit Margin

11.67

10.38

11.70

8.90

12.47

Return On Net Assets

29.38

23.01

17.09

17.84

21.88

Return On Capital Employed

29.37

23.00

17.08

17.82

21.85

Return On Shareholders' Funds/Equity

35.53

30.93

25.21

17.58

21.62

Dividend Pay Out Ratio (Times)

0.75

0.82

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.29

UK Pound

1

Rs.83.88

Euro

1

Rs.70.68

 

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.