MIRA INFORM REPORT

 

 

Report Date :

11.02.2013

 

IDENTIFICATION DETAILS

 

Name :

SIEGWERK MALAYSIA SDN BHD

 

 

Formerly Known As :

SICPA (MALAYSIA) SDN BHD (23/11/2005)

 

 

Registered Office :

6, Jalan Firma 1/5, Kawasan Perindustrian Tebrau, 81100 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

04.07.1970

 

 

Com. Reg. No.:

9744-V

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Printing Inks, Marketing of Graphic Art Supplies & Accessories

 

 

No. of Employees :

160

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

No Complaints

Litigation :

Clear

 

NOTES:

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

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Malaysia

A1

A1

 

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.

:

9744-V

COMPANY NAME

:

SIEGWERK MALAYSIA SDN BHD

FORMER NAME

:

SICPA (MALAYSIA) SDN BHD (23/11/2005)
SICPA COLLIE (MALAYSIA) SDN BHD (29/05/1993)
COLLIE (MALAYSIA) SDN BHD (21/10/1989)
K.D. JAMES CHEN (MALAYSIA) SDN BHD (15/12/1976)

INCORPORATION DATE

:

04/07/1970

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

6, JALAN FIRMA 1/5, KAWASAN PERINDUSTRIAN TEBRAU, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

6, JALAN FIRMA 1/5, KAWASAN PERINDUSTRIAN TEBRAU, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

TEL.NO.

:

07-3547600

FAX.NO.

:

07-3540708

WEB SITE

:

WWW.SIEGWERK-GROUP.COM

CONTACT PERSON

:

PRAKASH ( GENERAL MANAGER )

INDUSTRY CODE

:

20222

PRINCIPAL ACTIVITY

:

MANUFACTURING OF PRINTING INKS, MARKETING OF GRAPHIC ART SUPPLIES & ACCESSORIES

AUTHORISED CAPITAL

:

MYR 33,523,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 28,523,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 29,282,900.00 DIVIDED INTO
ORDINARY SHARES 4,400,000 CASH AND 600,000 OTHERWISE OF MYR 1.00 EACH.
PREFERENCE SHARES 24,282,900 CASH OF MYR 1.00 EACH.

SALES

:

MYR 73,654,953 [2010]

NET WORTH

:

MYR 25,065,450 [2010]

STAFF STRENGTH

:

160 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

 

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

AVERAGE

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 printing inks, marketing of graphic art supplies & accessories.

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

The immediate holding company of the SC is SIEGWERK SINGAPORE PTE LTD, a company incorporated in SINGAPORE.

The ultimate holding company of the SC is SIEGWERK DRUCKFARBEN AG, a company incorporated in GERMANY.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

SIEGWERK SINGAPORE PTE LTD
[ORD 5,000,000 & PREF 24,282,900]

71 TOH GUAN ROD EAST #04-02 TCH TECH CENTRE, 608598, SINGAPORE.

196700221

29,282,900.00

100.00

 

 

 

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

------

 

 

 

29,282,900.00

100.00

 

 

 

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

=====

 

+ Also Director

 


DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. RALF WOLFGANG HILDENBRAND

Address

:

AM MUHLENBERG 9, D-53721, SIEGBURG, GERMANY.

IC / PP No

:

P5369285840

Date of Appointment

:

15/06/2009

 

DIRECTOR 2

 

Name Of Subject

:

MS. SELVI A/P MURUGIAH

Address

:

155 JALAN DESA MESRA, TAMAN DESA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

661017-07-5526

Date of Birth

:

17/10/1966

Nationality

:

MALAYSIAN

 

DIRECTOR 3

 

Name Of Subject

:

MR. PRAKASH KUMAR A/L VELUMAYIL

Address

:

19 JALN LEMBAH 4, BANDAR SERI ALAM, 81750 MASAI, JOHOR, MALAYSIA.

New IC No

:

691220-01-5235

Date of Birth

:

20/12/1969

Nationality

:

MALAYSIAN

 

DIRECTOR 4

 

Name Of Subject

:

JAN-DIRK HENRICH

Address

:

63 HOLLAND ROAD #03-08 VERDURE @ HOLLAND PARK, 258887, SINGAPORE.

IC / PP No

:

C748KYZH2

Nationality

:

DUTCH

Date of Appointment

:

01/11/2012

 


MANAGEMENT

 

 

 

1)

Name of Subject

:

PRAKASH

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

LEE PENG YONG

 

Position

:

FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

NG CHOON KEAT

 

Position

:

HEAD OF FINANCE

 

 

 

 

 

4)

Name of Subject

:

FARIDAH AWAB

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG

Auditor' Address

:

MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, DAMANSARA HEIGHTS, LEVEL 23A, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

ALWIZAH AL-YAFII BINTI AHMAD KAMAL

 

 

 

 

 

New IC No

:

740228-07-5492

 

Address

:

12,JALAN PANTAI 9/7, 46000 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). The SC has bank charges with above mentioned banker(s).

 

 

ENCUMBRANCE (S)


ENCUMBRANCE 1

Date of Creation

:

25/10/1993

Description Of Charge

:

N/A

 

Amount Secured

:

MYR23,200,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

Form 40 Dated

Registered and Numbered 7 In The Register of Charges



LEGAL CHECK AGAINST SC


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

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SC


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

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

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

90%

Overseas

:

YES

Percentage

:

10%

Import Countries

:

CHINA,UNITED STATES,EUROPE

A trade enquiry with SC's suppliers revealed the following:

 

 

Supplier 1

Types of Supplies

:

CHEMICAL PRODUCTS

Time Known

:

N/A

Credit Term

:

90 DAYS

Mode of Payment

:

CHEQUES

Credit Limit

:

N/A

Mthly Avg Trx.

:

N/A

Outstanding amount

:

N/A

Payment Record

:

FAIR

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

SINGAPORE

THAILAND

PHILIPPINES

AUSTRALIA

HONG KONG

INDIA

INDONESIA

PAKISTAN

CHINA

SOUTH KOREA

TAIWAN

VIETNAM

CAMBODIA

MYANMAR

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
CHEQUESTELEGRAPHIC TRANSFER (TT)

Type of Customer

:

PRINTING INDUSTRIES

 

 

OPERATIONS

 

Products manufactured

:

PRINTING INKS AND LITHOGRAPHIC CHEMICALS

 

 

 

Brand Name

:

SICPA , SIEGWERK

 

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2001

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2011

2010

2009

2008

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

160

160

150

148

154

 

 

 

 

 

Branch

:

YES

 

No of Branches

:

2

 

 

 

 

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of printing inks, marketing of graphic art supplies & accessories.

The SC specializes in :

* Printing ink additives and printing aids

* Printing lacquers

* Packaging inks for offset, flexographic and rotogravure printing. (Tobacco Packaging, Flexible Packaging, Corrugated Carton, Label Packaging, Sheed Fed & UV, Paper & Board & Decorative)

We were informed that the warehouse is located at the same premises to keep its products and materials.

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

Besides that the SC has branches located in Selangor and Penang.


PROJECTS


No projects found in our databank

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

073547600

Current Telephone Number

:

07-3547600

Match

:

YES

 

 

 

Address Provided by Client

:

6, JALAN FIRMA 1/5, KAWASAN PERINDUSTRIAN TEBRAU,81100,JOHOR BAHRU,JOHOR.

Current Address

:

6, JALAN FIRMA 1/5, KAWASAN PERINDUSTRIAN TEBRAU, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

NO

 

Other Investigations


On 7th February 2013 we contacted one of the staff from the SC and she provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2010

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2010

]

 

Return on Shareholder Funds

:

Favourable

[

31.84%

]

 

Return on Net Assets

:

Favourable

[

34.35%

]

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. 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

:

Unfavourable

[

90 Days

]

 

Debtor Ratio

:

Unfavourable

[

73 Days

]

 

Creditors Ratio

:

Favourable

[

55 Days

]

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The high debtors' ratio could indicate that the SC was weak in its credit control. However, the SC could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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

:

Acceptable

[

0.81 Times

]

 

Current Ratio

:

Unfavourable

[

1.46 Times

]

 

The SC's liquid ratio was slightly low. This could indicate that the SC's working capital was slightly deficient. The SC will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

13.68 Times

]

 

Gearing Ratio

:

Favourable

[

0.13 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's liquidity was at an acceptable range. If the SC is able to obtain further short term financing, it should be able to meet all 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:

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

20222 : Manufacture of printing ink

 

 

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 1970, the SC is a Private Limited company, focusing on manufacturing of printing inks, marketing of graphic art supplies & accessories. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. With an adequate share capital, the SC has the potential of expanding its business in future.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. The SC is a fairly large and rapidly growing company with over 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. 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. 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. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. Given a positive net worth standing at MYR 25,065,450, the SC should be able to maintain its business in the near terms.


Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth . 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.


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


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.


Based on the above condition, we recommend credit be granted to the SC promptly.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

SIEGWERK MALAYSIA SDN BHD

 

Financial Year End

31/12/2010

31/12/2009

31/12/2008

Months

12

12

12

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

FULL

FULL

FULL

Currency

MYR

MYR

MYR

 

 

 

 

TURNOVER

73,654,953

62,025,131

58,394,268

 

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

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

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

Total Turnover

73,654,953

62,025,131

58,394,268

 

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

7,981,049

289,325

<3,758,423>

 

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

7,981,049

289,325

<3,758,423>

 

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

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

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

PROFIT/(LOSS) AFTER TAXATION

7,981,049

289,325

<3,758,423>

 

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

As previously reported

<95,054,638>

<95,343,963>

<91,585,540>

 

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

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

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

As restated

<95,054,638>

<95,343,963>

<91,585,540>

 

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<87,073,589>

<95,054,638>

<95,343,963>

 

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<87,073,589>

<95,054,638>

<95,343,963>

 

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

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

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

INTEREST EXPENSE (as per notes to P&L)

 

 

 

Bank overdraft

101,203

57,050

184,243

Others

528,139

125,803

2,108,857

 

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

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

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

 

629,342

182,853

2,293,100

 

 

 

BALANCE SHEET

 

 

SIEGWERK MALAYSIA SDN BHD

 

ASSETS EMPLOYED:

 

 

 

FIXED ASSETS

12,263,341

10,989,141

12,083,165

 

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

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

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

TOTAL LONG TERM ASSETS

12,263,341

10,989,141

12,083,165

CURRENT ASSETS

 

 

 

Stocks

18,135,445

13,782,822

12,535,293

Trade debtors

14,808,029

14,157,688

25,728,454

Other debtors, deposits & prepayments

4,626,146

2,994,881

1,368,320

Amount due from holding company

-

-

106,529

Amount due from subsidiary companies

-

-

2,496,795

Cash & bank balances

3,054,329

4,066,126

1,886,652

 

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

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

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

TOTAL CURRENT ASSETS

40,623,949

35,001,517

44,122,043

 

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

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

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

TOTAL ASSET

52,887,290

45,990,658

56,205,208

 

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

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

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

CURRENT LIABILITIES

 

 

 

Trade creditors

11,046,874

9,211,835

9,194,118

Other creditors & accruals

9,935,235

12,808,707

4,078,700

Bank overdraft

3,312,035

3,729

4,174,287

Bill & acceptances payable

3,527,696

5,193,032

4,874,000

Amounts owing to holding company

-

-

48,400

Amounts owing to subsidiary companies

-

-

15,529,371

 

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

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

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

TOTAL CURRENT LIABILITIES

27,821,840

27,217,303

37,898,876

 

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

12,802,109

7,784,214

6,223,167

 

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

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

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

TOTAL NET ASSETS

25,065,450

18,773,355

18,306,332

 

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

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

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

SHARE CAPITAL

 

 

 

Ordinary share capital

29,282,900

4,282,900

4,282,900

 

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

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

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

TOTAL SHARE CAPITAL

29,282,900

4,282,900

4,282,900

RESERVES

 

 

 

Share premium

62,333,139

62,333,139

62,333,139

Capital reserve

20,523,000

20,523,000

20,523,000

Retained profit/(loss) carried forward

<87,073,589>

<95,054,638>

<95,343,963>

 

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

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

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

TOTAL RESERVES

<4,217,450>

<12,198,499>

<12,487,824>

 

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

25,065,450

<7,915,599>

<8,204,924>

LONG TERM LIABILITIES

 

 

 

Others

-

26,688,954

26,511,256

 

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

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

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

TOTAL LONG TERM LIABILITIES

-

26,688,954

26,511,256

 

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

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

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

 

25,065,450

18,773,355

18,306,332

 

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

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

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

 

 

 

FINANCIAL RATIO

 

 

SIEGWERK MALAYSIA SDN BHD

 

TYPES OF FUNDS

 

 

 

Cash

3,054,329

4,066,126

1,886,652

Net Liquid Funds

<257,706>

4,062,397

<2,287,635>

Net Liquid Assets

<5,333,336>

<5,998,608>

<6,312,126>

Net Current Assets/(Liabilities)

12,802,109

7,784,214

6,223,167

Net Tangible Assets

25,065,450

18,773,355

18,306,332

Net Monetary Assets

<5,333,336>

<32,687,562>

<32,823,382>

BALANCE SHEET ITEMS

 

 

 

Total Borrowings

3,312,035

3,729

4,174,287

Total Liabilities

27,821,840

53,906,257

64,410,132

Total Assets

52,887,290

45,990,658

56,205,208

Net Assets

25,065,450

18,773,355

18,306,332

Net Assets Backing

25,065,450

<7,915,599>

<8,204,924>

Shareholders' Funds

25,065,450

<7,915,599>

<8,204,924>

Total Share Capital

29,282,900

4,282,900

4,282,900

Total Reserves

<4,217,450>

<12,198,499>

<12,487,824>

LIQUIDITY (Times)

 

 

 

Cash Ratio

0.11

0.15

0.05

Liquid Ratio

0.81

0.78

0.83

Current Ratio

1.46

1.29

1.16

WORKING CAPITAL CONTROL (Days)

 

 

 

Stock Ratio

90

81

78

Debtors Ratio

73

83

161

Creditors Ratio

55

54

57

SOLVENCY RATIOS (Times)

 

 

 

Gearing Ratio

0.13

-0.00

<0.51>

Liabilities Ratio

1.11

<6.81>

<7.85>

Times Interest Earned Ratio

13.68

2.58

<0.64>

Assets Backing Ratio

0.86

0.64

0.63

PERFORMANCE RATIO (%)

 

 

 

Operating Profit Margin

10.84

0.47

<6.44>

Net Profit Margin

10.84

0.47

<6.44>

Return On Net Assets

34.35

2.52

<8.00>

Return On Capital Employed

30.34

2.51

<6.52>

Return On Shareholders' Funds/Equity

31.84

<3.66>

45.81

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

Contingent Liabilities

0

0

0

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.57

UK Pound

1

Rs.84.25

Euro

1

Rs.71.78

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.