MIRA INFORM REPORT

 

 

 

 

Report Date :

30.08.2013

 

IDENTIFICATION DETAILS

 

Name :

TENCATE GEOSYNTHETICS ASIA SDN BHD

 

 

Registered Office :

Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Level 7, 50490 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

15.05.1993

 

 

Com. Reg. No.:

264232-U

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing and supplying geotextiles for civil and engineering construction

 

 

No. of Employees :

70

 

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.

:

264232-U

COMPANY NAME

:

TENCATE GEOSYNTHETICS ASIA SDN BHD

FORMER NAME

:

POLYFELT ASIA SDN BHD (04/08/2006)
POLYFELT-L&M MANUFACTURING ASIA SDN BHD (23/01/2001)
POLYFELT ASIA SDN BHD (06/11/1997)

INCORPORATION DATE

:

15/05/1993

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, LEVEL 7, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

14, JALAN SEMENTA 27/91, SEKSYEN 27, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-51928568

FAX.NO.

:

03-51928573

CONTACT PERSON

:

JOHN JAMES SMITH ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

36999

PRINCIPAL ACTIVITY

:

MANUFACTURING AND SUPPLYING GEOTEXTILES FOR CIVIL AND ENGINEERING CONSTRUCTION

AUTHORISED CAPITAL

:

MYR 100,000,000.00 DIVIDED INTO 
ORDINARY SHARE 30,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 70,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 18,000,000.00 DIVIDED INTO 
ORDINARY SHARES 18,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 122,815,142 [2010]

NET WORTH

:

MYR 46,037,015 [2010]

 

 

 

STAFF STRENGTH

:

70 [2012]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

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

The SC is principally engaged in the (as a / as an) manufacturing and supplying geotextiles for civil and engineering construction.

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

The immediate holding company of the SC is KONINKLIJKE TENCATE N.V., a company incorporated in NETHERLANDS.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

KONINKLIJKE TEN CATE N V

7607, GB ALMELO, EGBERT GORTERSTRAAT 3, NETHERLANDS.

 

17,999,999.00

100.00

BIDIM GEOSYNTHETICS S A

9 RUE MARCEL PAUL, B.P 80, 95873 BEZONA, CEDEX, FRANCE.

 

1.00

0.00

 

 

 

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

------

 

 

 

18,000,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

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

Local No

Company

(%)

As At

180781

TENCATE GEOSYNTHETICS MALAYSIA SDN BHD

100

31/12/2010

 

 

 

 

 

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

JOSEPH WALLACE AVERETTE III

Address

:

67, EMERALD ALLIE HOSCHTON, GEORGIA, 30548, UNITED STATES.

IC / PP No

:

P425501525

 

 

 

Date of Birth

:

28/12/1955

 

 

 

Nationality

:

AMERICAN

Date of Appointment

:

24/06/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. WALLACE LAMAR MOORE JR

Address

:

FICHERGASSE 18, A-4040 LINZ, AUSTRIA.

IC / PP No

:

P213894985

 

 

 

 

 

 

 

 

 

Nationality

:

AMERICAN

Date of Appointment

:

02/09/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. PATTIS NAIDU A/L M DANAPAL

Address

:

9, JALAN SS3/94, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

8025691

New IC No

:

500822-10-5401

Date of Birth

:

22/08/1950

 

 

 

Nationality

:

MALAYSIAN INDIAN

Date of Appointment

:

05/01/2001

 

 

 

 

 

 

Working Experience

:

DEPUTY CHIEF EXECUTIVE OFFICER OF L & M CORP & EXECUTIVE DIR OF ALL THE SUBSIDIARY COMPANIES. IN CHARGE OF THE OPERATIONS OF THE GROUP. HAS 28 YEARS OF EXPERIENCE IN THE SPECIALISED FIELD OF PRESTRESSING, GROUND ENGINEERING, STRUCTURAL REPAIRS & SLIPFORMI

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. MOHAMED BASHIR BIN MOHAMED SHARIFF

Address

:

4-C,JALAN MAKTAB ENAM, OFF JALAN GURNEY, 54100 KUALA LUMPUR, MALAYSIA.

 

 

 

New IC No

:

460614-06-5165

Date of Birth

:

14/06/1946

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

08/05/1996

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. JOHN JAMES SMITH

Address

:

155G, SRI WANGSARIA, JALAN ARA, BANGSAR BARU, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

P761321700

 

 

 

Date of Birth

:

24/02/1952

 

 

 

Nationality

:

BRITISH

Date of Appointment

:

15/05/1993

Remark

:

OLD P/P P761253918

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

JOHN JAMES SMITH

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

LOW SIEW CHONG

 

Position

:

FINANCIAL CONTROLLER

 

 

 

 

 

3)

Name of Subject

:

LINDA

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

4)

Name of Subject

:

TERRY LOW

 

Position

:

PRODUCTION MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

KPMG TOWER, 8 FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHUA SIEW CHUAN

 

 

 

 

 

New IC No

:

580826-05-5408

 

Address

:

6, JALAN SS14/8E, SUBANG JAYA, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. PAN SENG WEE

 

 

 

 

 

New IC No

:

750810-10-5510

 

Address

:

11 JALAN SETIA IMPIAN, U13/4N SETIA ALAM, SEKSYEN U13, 40170 SHAH ALAM, 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)


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

 

 

:

YES

:

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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

AUSTRALIA, INDIA, SINGAPORE, UNITED KINGDOM, ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

GEOSYNTHETICS FOR CIVIL ENGINEERING

 

 

 

Competitor(s)

:

ASIAFLEX PRODUCTS SDN BHD
AUO SUNPOWER SDN BHD
LYNAS MALAYSIA SDN BHD
MEGAN MEDIA HOLDINGS BHD
VALE MALAYSIA MINERALS SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

70

70

75

70

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing and supplying geotextiles for civil and engineering construction.

We were informed that the SC's products are mainly used for civil and engineering construction industries.

The SC's geo synthetic products are used in the infrastructure projects.

The SC utilizes advanced automated and semi-automated machineries to ensure production of high quality products.

Besides that the SC also has a warehouse located at the same premises to keep stocks and materials.


PROJECTS


No projects found in our databank 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0351928568

Current Telephone Number

:

03-51928568

Match

:

YES

 

 

 

Address Provided by Client

:

14, JALAN SEMENTA 27/91, SEKSYEN 27,40400,SHAH ALAM,SELANGOR.

Current Address

:

14, JALAN SEMENTA 27/91, SEKSYEN 27, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 9th November 2012 we contacted one of the staff from the SC and she provided some information on the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

2008 - 2010

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2010

]

 

Return on Shareholder Funds

:

Favourable

[

35.15%

]

 

Return on Net Assets

:

Acceptable

[

27.66%

]

 

 

 

 

 

 

 

 

The continuous fall in turnover could be due to the lower demand for the SC's products / services.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. 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

[

51 Days

]

 

Debtor Ratio

:

Favourable

[

55 Days

]

 

Creditors Ratio

:

Favourable

[

12 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

[

2.11 Times

]

 

Current Ratio

:

Favourable

[

3.20 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

[

28.60 Times

]

 

Gearing Ratio

:

Favourable

[

0.01 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 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. 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 : 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

36999 : Other manufacturing n.e.c.

 

 

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 1993, the SC is a Private Limited company, focusing on manufacturing and supplying geotextiles for civil and engineering construction. Its long establishment in the market has allowed the SC to build up a good reputation and gain higher market share against 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. To date, the SC has a total workforce of 70 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.


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 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 46,037,015, 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.


We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.


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.


In view of the above favourable condition, we recommend credit be proceeded to the SC with favourable term.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

TENCATE GEOSYNTHETICS ASIA SDN BHD

 

Financial Year End

31/12/2010

31/12/2009

31/12/2008

Months

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

FULL

FULL

FULL

Currency

MYR

MYR

MYR

 

 

 

 

TURNOVER

122,815,142

127,320,554

148,528,661

 

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

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

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

Total Turnover

122,815,142

127,320,554

148,528,661

 

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

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

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

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

18,464,679

25,026,486

14,776,276

 

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

18,464,679

25,026,486

14,776,276

Taxation

<2,194,180>

<1,957,609>

<1,626,864>

 

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

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

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

PROFIT/(LOSS) AFTER TAXATION

16,270,499

23,068,877

13,149,412

Minority interests

<88,287>

<134,425>

<129,083>

 

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

16,182,212

22,934,452

13,020,329

 

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

16,182,212

22,934,452

13,020,329

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

As previously reported

33,946,605

11,012,153

<2,008,176>

 

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

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

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

As restated

33,946,605

11,012,153

<2,008,176>

 

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

50,128,817

33,946,605

11,012,153

DIVIDENDS - Ordinary (paid & proposed)

<22,000,000>

-

-

 

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

28,128,817

33,946,605

11,012,153

 

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

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

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

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

Hire purchase

90

1,633

-

Term loan / Borrowing

24,131

31,065

-

Others

644,693

1,497,195

434,709

 

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

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

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

 

668,914

1,529,893

434,709

 

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

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

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

 

 

 

BALANCE SHEET

 

 

TENCATE GEOSYNTHETICS ASIA SDN BHD

 

ASSETS EMPLOYED:

 

 

 

FIXED ASSETS

32,640,353

34,678,079

36,440,509

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

Deferred assets

622,362

593,172

88,082

 

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

622,362

593,172

88,082

 

 

 

 

INTANGIBLE ASSETS

 

 

 

Goodwill on consolidation

956,543

934,018

934,018

 

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

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

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

TOTAL INTANGIBLE ASSETS

956,543

934,018

934,018

 

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

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

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

TOTAL LONG TERM ASSETS

34,219,258

36,205,269

37,462,609

 

 

 

 

CURRENT ASSETS

 

 

 

Stocks

17,209,185

16,367,378

12,933,865

Trade debtors

18,392,543

21,989,687

26,965,304

Other debtors, deposits & prepayments

11,189,827

293,738

3,935,595

Amount due from holding company

-

4,048

-

Amount due from related companies

312,227

321,188

980,390

Cash & bank balances

3,751,211

2,297,139

6,506,102

Others

-

-

8,548

 

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

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

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

TOTAL CURRENT ASSETS

50,854,993

41,273,178

51,329,804

 

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

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

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

TOTAL ASSET

85,074,251

77,478,447

88,792,413

 

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

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

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

 

 

 

 

CURRENT LIABILITIES

 

 

 

Trade creditors

3,957,003

5,117,058

5,435,303

Other creditors & accruals

9,077,662

11,166,181

8,560,694

Hire purchase & lease creditors

-

8,387

31,018

Bank overdraft

316,292

-

-

Amounts owing to related companies

2,069,868

568,078

2,245,588

Provision for taxation

489,749

1,309,841

564,223

 

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

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

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

TOTAL CURRENT LIABILITIES

15,910,574

18,169,545

16,836,826

 

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

34,944,419

23,103,633

34,492,978

 

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

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

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

TOTAL NET ASSETS

69,163,677

59,308,902

71,955,587

 

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

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

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

 

 

 

 

SHARE CAPITAL

 

 

 

Ordinary share capital

18,000,000

18,000,000

18,000,000

 

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

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

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

TOTAL SHARE CAPITAL

18,000,000

18,000,000

18,000,000

 

 

 

 

RESERVES

 

 

 

Retained profit/(loss) carried forward

28,128,817

33,946,605

11,012,153

Others

<91,802>

67,703

33,722

 

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

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

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

TOTAL RESERVES

28,037,015

34,014,308

11,045,875

 

 

 

 

MINORITY INTEREST

-

264,189

129,764

 

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

46,037,015

52,278,497

29,175,639

 

 

 

 

LONG TERM LIABILITIES

 

 

 

Hire purchase creditors

-

-

996,068

Deferred taxation

14,242

30,405

783,880

Others

23,112,420

7,000,000

41,000,000

 

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

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

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

TOTAL LONG TERM LIABILITIES

23,126,662

7,030,405

42,779,948

 

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

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

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

 

69,163,677

59,308,902

71,955,587

 

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

TENCATE GEOSYNTHETICS ASIA SDN BHD

 

TYPES OF FUNDS

 

 

 

Cash

3,751,211

2,297,139

6,506,102

Net Liquid Funds

3,434,919

2,297,139

6,506,102

Net Liquid Assets

17,735,234

6,736,255

21,559,113

Net Current Assets/(Liabilities)

34,944,419

23,103,633

34,492,978

Net Tangible Assets

68,207,134

58,374,884

71,021,569

Net Monetary Assets

<5,391,428>

<294,150>

<21,220,835>

BALANCE SHEET ITEMS

 

 

 

Total Borrowings

316,292

8,387

1,027,086

Total Liabilities

39,037,236

25,199,950

59,616,774

Total Assets

85,074,251

77,478,447

88,792,413

Net Assets

69,163,677

59,308,902

71,955,587

Net Assets Backing

46,037,015

52,278,497

29,175,639

Shareholders' Funds

46,037,015

52,278,497

29,175,639

Total Share Capital

18,000,000

18,000,000

18,000,000

Total Reserves

28,037,015

34,014,308

11,045,875

LIQUIDITY (Times)

 

 

 

Cash Ratio

0.24

0.13

0.39

Liquid Ratio

2.11

1.37

2.28

Current Ratio

3.20

2.27

3.05

WORKING CAPITAL CONTROL (Days)

 

 

 

Stock Ratio

51

47

32

Debtors Ratio

55

63

66

Creditors Ratio

12

15

13

SOLVENCY RATIOS (Times)

 

 

 

Gearing Ratio

0.01

0.00

0.04

Liabilities Ratio

0.85

0.48

2.04

Times Interest Earned Ratio

28.60

17.36

34.99

Assets Backing Ratio

3.79

3.24

3.95

PERFORMANCE RATIO (%)

 

 

 

Operating Profit Margin

15.03

19.66

9.95

Net Profit Margin

13.18

18.01

8.77

Return On Net Assets

27.66

44.78

21.14

Return On Capital Employed

27.16

43.88

20.82

Return On Shareholders' Funds/Equity

35.15

43.87

44.63

Dividend Pay Out Ratio (Times)

1.36

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

Contingent Liabilities

0

0

0




 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.67.71

UK Pound

1

Rs.105.14

Euro

1

Rs.90.03

 

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.