MIRA INFORM REPORT

 

 

Report Date :

07.12.2013

 

IDENTIFICATION DETAILS

 

Name :

BEMIS ASIA PACIFIC SDN. BHD.

 

 

Formerly Known As :

PERFECSEAL (ASIA PACIFIC) SDN BHD

 

 

Registered Office :

Level 8, Symphony House, Block D13, Pusat Dagangan Dana 1, Jalan Pju 1a/46, 47301 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

13.11.1997

 

 

Com. Reg. No.:

452772-P

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Medical and Flexible Packaging Materials.

 

 

No. of Employees :

160

 

 

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 :

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


EXECUTIVE SUMMARY

 

 

 

REGISTRATION NO.

:

452772-P

COMPANY NAME

:

BEMIS ASIA PACIFIC SDN. BHD.

FORMER NAME

:

PERFECSEAL (ASIA PACIFIC) SDN BHD (10/05/2003)

INCORPORATION DATE

:

13/11/1997

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LEVEL 8, SYMPHONY HOUSE, BLOCK D13, PUSAT DAGANGAN DANA 1, JALAN PJU 1A/46, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

NO 8 & 10 JALAN TP 5, TAMAN PERINDUSTRIAN UEP, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-80266488

FAX.NO.

:

03-80244215

WEB SITE

:

WWW.BEMIS.COM

CONTACT PERSON

:

LIM BEE LEONG ( PRESIDENT )

 

 

 

INDUSTRY CODE

:

26600

PRINCIPAL ACTIVITY

:

MANUFACTURING OF MEDICAL AND FLEXIBLE PACKAGING MATERIALS

AUTHORISED CAPITAL

:

MYR 25,000,000.00 DIVIDED INTO
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 14,682,432.00 DIVIDED INTO
ORDINARY SHARES 6,753,750 CASH AND 7,928,682 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 96,281,084 [2011]

NET WORTH

:

MYR 59,380,225 [2011]

 

 

 

STAFF STRENGTH

:

160 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

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

The SC is principally engaged in the (as a / as an) manufacturing of medical and flexible packaging materials.

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

The immediate holding company of the SC is PERFECSEAL LIMITED, a company incorporated in IRELAND.

The ultimate holding company of the SC is BEMIS COMPANY INC, a company incorporated in UNITED STATES.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

PERFECSEAL LIMITED

INDUSTRIAL ESTATE, LONDONDERRY BT47 3GQ, NORTHERN IRELAND, FOREIGN, IRELAND.

XLZ000014479

14,682,432.00

100.00

 

 

 

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

------

 

 

 

14,682,432.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. LIM BEE LEONG

Address

:

1, JALAN ANGGERIK ERIA, 31/109C, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

641002-10-7451

Date of Birth

:

02/10/1964

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

13/11/1997

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. CATHERINE MAH SUIK CHING

Address

:

19, JALAN BK3/8D, BANDAR KINRARA, 47180 PUCHONG, SELANGOR, MALAYSIA.

IC / PP No

:

5588928

New IC No

:

600421-10-6364

Date of Birth

:

21/04/1960

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

04/01/2010



MANAGEMENT

 

 

 

1)

Name of Subject

:

LIM BEE LEONG

 

Position

:

PRESIDENT

 

 

 

 

 

2)

Name of Subject

:

YAP PECK GEOK

 

Position

:

ACCOUNTANT

 

 

 

 

 

3)

Name of Subject

:

NGUI MEO ONG

 

Position

:

MARKETING MANAGER

 

 

 

 

 

4)

Name of Subject

:

MELLISSA WONG

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

5)

Name of Subject

:

GOH MENG ENG

 

Position

:

QUALITY CONTROL MANAGER

 

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR CENTRAL, P.O.BOX 10192, LEVEL 15, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHEONG CHOON YIN

 

 

 

 

 

New IC No

:

711103-03-5216

 

Address

:

NO.8,JALAN PUTRA HARMONI 1/3H, SEKSYEN 1, PUTRA HEIGHTS, 47650 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. WONG SIEW YEEN

 

 

 

 

 

New IC No

:

700305-05-5166

 

Address

:

NO. 3, JALAN SS 15/5E, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)


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

 

 

LEGAL CHECK AGAINST SC


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

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC


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

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

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A

 

 

 


The SC refused to disclose its suppliers.

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

Percentage

:

40%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

60%

Export Market

:

ASIA PACIFIC

Credit Term

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

COATED PAPER/FILM ROLLSTOCK, TYVEK POUCHES/ROLLSTOCK, THERMOFORM TRAY

 

 

 

Award

:

1 ) SPECIAL AWARD FOR DESIGN EXCELLENCE BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2002

 

 

 

 

Competitor(s)

:

SCIENTILLENCE SDN BHD

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

Ownership of premises

:

LEASED/RENTED

 

Factory Size

:

ABOUT 22,000 SQ FT

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

160

165

140

145

132

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of medical and flexible packaging materials.

The SC produces medical packaging materials especially the peel pouches for medical industries.

The SC offers total integrated production including the printing, pounch making, slitting, custom tray thermoforming and rewinding.

Besides that the SC is also supplying surgical medical gloves for hospitals and pharmaceuticals.

The SC designs and manufactures pouches according to its customers' requirements.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-80266488

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 8 JALLAN TPS TAMAN PERINDUSTRIAN UEP 47600 SUBHANG JAYA SELANGOR

Current Address

:

NO 8 & 10 JALAN TP 5, TAMAN PERINDUSTRIAN UEP, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 3rd December 2013 we contacted one of the staff from the SC and she provided some information on the SC.

The address provided is incomplete.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

9.03%

]

 

Return on Net Assets

:

Acceptable

[

10.27%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. 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

[

78 Days

]

 

Debtor Ratio

:

Acceptable

[

65 Days

]

 

Creditors Ratio

:

Favourable

[

16 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 management was quite efficient in handling its debtors. The SC's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. The SC had a favourable creditors' ratio where the SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

2.38 Times

]

 

Current Ratio

:

Favourable

[

3.74 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the SC : STRONG

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

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

26600 : Manufacture of irradiation, electro medical and electrotherapeutic equipment

 

 

INDUSTRY :

MACHINERY

 

 

 

Malaysia is presently the leading manufacturer of automation machinery and equipment (M&E) for the electrical and electronics (E&E) industry in the ASEAN region with a total of 22 companies in production. The machinery and equipment industry has expanded and produce a diverse range of machinery which give importance to the overall industrial development of the country, due to its cross cutting linkages with all industrial sectors.

 

Malaysia implemented Industrial Master Plan 3 (IMP3, 2006-2020), which the machinery and equipment industry has been established as one of the key areas for growth and development. The implementation focused on the manufacture of high value-added and high technology machinery and equipment (M&E). Under this plan, M&E will positioned Malaysia as the regional production hub for high technology and specialized M&E in the ASEAN region for 2012.

 

Furthemore for the year 2012, Malaysia is the largest manufacturing hub of boilers in the Southeast Asia region. The exports are mainly directed to the neighboring countries such as Indonesia, Philippines, Thailand and Cambodia. Exports of machinery and equipment registered a double-digit growth of 12.6% in the frst seven month of 2012 mainly driven by general industrial machinery and equipment as well as specialised machinery for specific industries.

 

For enhance the machinery and equipment (M&E), the government has introduced two major tax incentives for companies investing in the manufacturing sector where the pioneer status and the investment tax allowance. The tax incentives would remain to be a competitive industry within ASEAN.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1997, the SC is a Private Limited company, focusing on manufacturing of medical and flexible packaging materials. 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. The SC is a fairly large and rapidly growing company with over 160 staff in its operations. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.

The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. However, the SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 59,380,225, 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.

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.

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)

BEMIS ASIA PACIFIC SDN. BHD.

 

Financial Year End

2011-12-31

2010-12-31

2009-12-31

2008-12-31

2007-12-31

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

96,281,084

98,662,727

87,025,908

79,800,309

67,772,918

 

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

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

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

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

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

Total Turnover

96,281,084

98,662,727

87,025,908

79,800,309

67,772,918

Costs of Goods Sold

<84,112,317>

<84,080,864>

<74,967,032>

-

-

 

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

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

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

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

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

Gross Profit

12,168,767

14,581,863

12,058,876

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

6,186,448

8,176,937

7,572,809

2,967,952

296,441

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

6,186,448

8,176,937

7,572,809

2,967,952

296,441

Taxation

<823,387>

<556,436>

<355,577>

<156,686>

164,654

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

5,363,061

7,620,501

7,217,232

2,811,266

461,095

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

39,334,732

31,714,231

24,496,999

21,685,733

21,224,638

 

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

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

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

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

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

As restated

39,334,732

31,714,231

24,496,999

21,685,733

21,224,638

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

44,697,793

39,334,732

31,714,231

24,496,999

21,685,733

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

44,697,793

39,334,732

31,714,231

24,496,999

21,685,733

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

-

-

178

80,128

40,822

Revolving loans

-

-

14,746

291,899

113,996

Others

-

-

33,500

49,978

15,081

 

 

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

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

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

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

 

 

-

48,424

422,005

169,899

 

 

 

BALANCE SHEET

 

 

BEMIS ASIA PACIFIC SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

18,888,635

18,505,592

19,777,286

22,147,064

24,638,377

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

18,888,635

18,505,592

19,777,286

22,147,064

24,638,377

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

20,576,383

22,088,521

20,189,235

22,228,963

23,669,409

Trade debtors

17,053,470

18,151,204

14,521,619

13,669,332

9,677,751

Other debtors, deposits & prepayments

687,206

756,414

735,824

822,635

724,520

Short term deposits

12,800,000

7,000,000

-

-

-

Amount due from subsidiary companies

1,276,967

1,454,147

342,309

751,560

136,446

Cash & bank balances

4,109,197

2,475,555

2,886,446

20,753

524,827

Others

-

212,811

99,574

698,646

918,269

 

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

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

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

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

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

TOTAL CURRENT ASSETS

56,503,223

52,138,652

38,775,007

38,191,889

35,651,222

 

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

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

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

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

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

TOTAL ASSET

75,391,858

70,644,244

58,552,293

60,338,953

60,289,599

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

3,642,644

5,704,520

4,843,377

5,141,814

2,664,630

Other creditors & accruals

3,942,163

4,141,261

2,734,413

2,076,630

1,565,034

Bank overdraft

-

-

-

213,661

3,403,571

Short term borrowings/Term loans

-

-

-

2,596,606

-

Other borrowings

-

-

-

1,850,000

7,000,000

Bill & acceptances payable

-

-

-

1,431,000

-

Amounts owing to holding company

3,815,740

3,092,044

1,192,420

3,428,512

6,293,125

Amounts owing to subsidiary companies

3,050,688

2,067,215

1,885,675

2,835,128

1,783,637

Provision for taxation

675,091

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

15,126,326

15,005,040

10,655,885

19,573,351

22,709,997

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

41,376,897

37,133,612

28,119,122

18,618,538

12,941,225

 

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

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

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

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

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

TOTAL NET ASSETS

60,265,532

55,639,204

47,896,408

40,765,602

37,579,602

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

14,682,432

14,682,432

14,682,432

14,682,432

14,682,432

 

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

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

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

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

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

TOTAL SHARE CAPITAL

14,682,432

14,682,432

14,682,432

14,682,432

14,682,432

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

44,697,793

39,334,732

31,714,231

24,496,999

21,685,733

 

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

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

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

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

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

TOTAL RESERVES

44,697,793

39,334,732

31,714,231

24,496,999

21,685,733

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

59,380,225

54,017,164

46,396,663

39,179,431

36,368,165

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

885,307

1,622,040

1,499,745

1,586,171

1,211,437

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

885,307

1,622,040

1,499,745

1,586,171

1,211,437

 

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

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

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

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

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

 

60,265,532

55,639,204

47,896,408

40,765,602

37,579,602

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

BEMIS ASIA PACIFIC SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

16,909,197

9,475,555

2,886,446

20,753

524,827

Net Liquid Funds

16,909,197

9,475,555

2,886,446

<1,623,908>

<2,878,744>

Net Liquid Assets

20,800,514

15,045,091

7,929,887

<3,610,425>

<10,728,184>

Net Current Assets/(Liabilities)

41,376,897

37,133,612

28,119,122

18,618,538

12,941,225

Net Tangible Assets

60,265,532

55,639,204

47,896,408

40,765,602

37,579,602

Net Monetary Assets

19,915,207

13,423,051

6,430,142

<5,196,596>

<11,939,621>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

14,746

6,383,166

10,517,567

Total Liabilities

16,011,633

16,627,080

12,155,630

21,159,522

23,921,434

Total Assets

75,391,858

70,644,244

58,552,293

60,338,953

60,289,599

Net Assets

60,265,532

55,639,204

47,896,408

40,765,602

37,579,602

Net Assets Backing

59,380,225

54,017,164

46,396,663

39,179,431

36,368,165

Shareholders' Funds

59,380,225

54,017,164

46,396,663

39,179,431

36,368,165

Total Share Capital

14,682,432

14,682,432

14,682,432

14,682,432

14,682,432

Total Reserves

44,697,793

39,334,732

31,714,231

24,496,999

21,685,733

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

1.12

0.63

0.27

0.00

0.02

Liquid Ratio

2.38

2.00

1.74

0.82

0.53

Current Ratio

3.74

3.47

3.64

1.95

1.57

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

78

82

85

102

127

Debtors Ratio

65

67

61

63

52

Creditors Ratio

16

25

24

24

14

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.16

0.29

Liabilities Ratio

0.27

0.31

0.26

0.54

0.66

Times Interest Earned Ratio

0.00

0.00

157.39

8.03

2.74

Assets Backing Ratio

4.10

3.79

3.26

2.78

2.56

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

6.43

8.29

8.70

3.72

0.44

Net Profit Margin

5.57

7.72

8.29

3.52

0.68

Return On Net Assets

10.27

14.70

15.91

8.32

1.24

Return On Capital Employed

10.27

14.70

15.91

8.21

1.13

Return On Shareholders' Funds/Equity

9.03

14.11

15.56

7.18

1.27

Dividend Pay Out Ratio (Times)

0.00

0.00

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.61.66

UK Pound

1

Rs.100.64

Euro

1

Rs.84.25

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.