MIRA INFORM REPORT

 

 

Report Date :

03.01.2013

 

IDENTIFICATION DETAILS

 

Name :

KSP MANUFACTURING SDN. BHD.

 

 

Formerly Known As :

BITULINE INDUSTRIES SDN BHD (08/11/1994)

 

 

Registered Office :

Wisma Taiko, 1,Jalan S.P. Seenivasagam, 30000 Ipoh, Perak

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.09.2011

 

 

Date of Incorporation :

02.06.1984

 

 

Com. Reg. No.:

120900-P

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturer of Soap Noodles

 

 

No. of Employees :

100

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

NOTES:

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

 

ECGC Country Risk Classification List – 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.

:

120900-P

COMPANY NAME

:

KSP MANUFACTURING SDN. BHD.

FORMER NAME

:

BITULINE INDUSTRIES SDN BHD (08/11/1994)

INCORPORATION DATE

:

02/06/1984

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

WISMA TAIKO, 1,JALAN S.P. SEENIVASAGAM, 30000 IPOH, PERAK, MALAYSIA.

BUSINESS ADDRESS

:

LOT 1245, KUNDANG INDUSTRIAL ESTATE, 48020 RAWANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-60341213

FAX.NO.

:

03-60343090

CONTACT PERSON

:

YEOW AH KOW ( MANAGING DIRECTOR )

INDUSTRY CODE

:

20231

PRINCIPAL ACTIVITY

:

MANUFACTURER OF SOAP NOODLES

AUTHORISED CAPITAL

:

MYR 25,000,000.00 DIVIDED INTO
ORDINARY SHARE 23,300,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 17,000,000.00 OF MYR 0.10 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 22,500,000.00 DIVIDED INTO
ORDINARY SHARES 7,500,000 CASH AND 15,000,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 156,421,000 [2011]

NET WORTH

:

MYR 37,476,000 [2011]

STAFF STRENGTH

:

100 [2012]

BANKER (S)

:

RHB BANK BHD

 

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

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) manufacturer of soap noodles.

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

The immediate holding company of the SC is PALM-OLEO SDN BHD, a company incorporated in MALAYSIA.

The ultimate holding company of the SC is KUALA LUMPUR KEPONG BERHAD, a company incorporated in MALAYSIA.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

PALM-OLEO SDN BHD

LOT 1245, KUNDANG INDUSTRIAL ESTATE, 48020 RAWANG, SELANGOR, MALAYSIA.

185886

22,500,000.00

100.00

 

 

 

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

------

 

 

 

22,500,000.00

100.00

 

 

 

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

=====

 

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. GOH ENG CHOOR

Address

:

9,LORONG BATU NILAM 20G, BANDAR BUKIT TINGGI 2, 41200 KLANG, SELANGOR, MALAYSIA.

New IC No

:

571002-10-5199

Date of Birth

:

02/10/1957

Nationality

:

MALAYSIAN

Date of Appointment

:

10/06/2011

 

DIRECTOR 2

 

Name Of Subject

:

MR. PUNG KOK HOOI

Address

:

NO.1,JALAN SS 24/19, TAMAN MEGAH, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

New IC No

:

660414-07-5357

Date of Birth

:

14/04/1966

Nationality

:

MALAYSIAN

Date of Appointment

:

26/12/2008

 

DIRECTOR 3

 

Name Of Subject

:

MR. YEOW AH KOW

Address

:

3, JALAN SS19/3C, SUBANG JAYA, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

New IC No

:

540203-05-5085

Date of Birth

:

03/02/1954

Nationality

:

MALAYSIAN

Date of Appointment

:

16/03/1998

 

DIRECTOR 4

 

Name Of Subject

:

MR. MADHEV A/L BALA SUBRAMANIAM

Address

:

NO.4SS 24/9, TAMAN MEGAH, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

New IC No

:

600913-71-5115

Date of Birth

:

13/09/1960

Nationality

:

MALAYSIAN

Date of Appointment

:

01/10/2005



MANAGEMENT

 

 

 

1)

Name of Subject

:

YEOW AH KOW

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

NG YIN LIN

 

Position

:

FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

CHEW BENG SUAN

 

Position

:

MARKETING MANAGER

 

 

 

 

 

4)

Name of Subject

:

ASMA

 

Position

:

HUMAN RESOURCE DIRECTOR

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

1ST FLOOR, WISMA PENANG GARDEN, 42 JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. YAP MIOW KIEN

 

 

 

 

 

New IC No

:

681220-05-5334

 

Address

:

12,LINGKARAN MERU VALLEY 1A, LAKEVIEW VILLA,MERU VALLEY GOLF RESORT, JALAN BUKIT MERU, 30020 IPOH, PERAK, MALAYSIA.

 

2)

Company Secretary

:

MR. PUNG KOK HOOI

 

 

 

 

 

New IC No

:

660414-07-5357

 

Address

:

NO.1,JALAN SS 24/19, TAMAN MEGAH, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

RHB BANK 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

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES


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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

SOAP NOODLES

Competitor(s)

:

COLGATE-PALMOLIVE (MALAYSIA) SDN. BHD.
KAO SOAP (MALAYSIA) SDN BHD
PACIFIC SOAP MFG SDN BHD
SENSORY BASICS SDN BHD
UNITED DETERGENT INDUSTRIES SDN. BHD.

 

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIA FOOD & BEVERAGE INDUSTRY

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

100

100

100

100

100

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturer of soap noodles.

The SC main production is soap noodles.

Soap noodles is one of the raw materials used by soap manufactures to produce soap.

The SC supplies its soap noodles producing soap to branded soups like LUX and PALMOLIVE etc.

The main raw material used to produce the soap noodles is palm oil.

 

 

PROJECTS


No projects found in our databank

 

RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA)database, but no latest development was noted in our investigation.

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

603 7809 8833

Current Telephone Number

:

03-60341213

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 1245, KUNDANG INDUSTRIAL ESTATE,48020,RAWANG,SELANGOR.

Current Address

:

LOT 1245, KUNDANG INDUSTRIAL ESTATE, 48020 RAWANG, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 31st December 2012 we contacted one of the staff from the Admin Department. She provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

29.22%

]

 

Return on Net Assets

:

Favourable

[

37.95%

]

 

 

 

 

 

 

 

 

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. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Favourable

[

4.58 Times

]

 

 

 

 

 

 

 

 

The SC was in good liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Favourable

[

0.23 Times

]

 

 

 

 

 

 

 

 

A low liabilities ratio has minimised the SC's financial risk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC has high financial risks. If its shareholders do not inject more capital into the company or if its business performance does not improve, its going concern may be in question.

 

 

 

 

 

 

 

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

20231 : Manufacture of soap and detergents, cleaning and polishing preparations

 

 

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 1984, the SC is a Private Limited company, focusing on manufacturer of soap noodles. The SC has been in business for 29 years. 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. The SC is a large entity with strong capital position.


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 100 staff in its operations Overall, we regard that the SC's management capability is average.


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. A low liabilities ratio has minimised the SC's financial risk. Given a positive net worth standing at MYR 37,476,000, the SC should be able to maintain its business in the near terms.


The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.


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


The industry 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)

KSP MANUFACTURING SDN. BHD.

 

Financial Year End

30/09/2011

30/09/2010

30/09/2009

30/09/2008

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

SUMMARY

SUMMARY

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

156,421,000

156,317,000

136,105,000

131,302,000

 

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

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

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

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

Total Turnover

156,421,000

156,317,000

136,105,000

131,302,000

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

14,526,000

9,355,000

9,086,000

8,845,000

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

14,526,000

9,355,000

9,086,000

8,845,000

Taxation

<3,575,000>

<2,203,000>

<2,143,000>

<2,557,000>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

10,951,000

7,152,000

6,943,000

6,288,000

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

31,659,000

37,737,000

30,794,000

24,506,000

 

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

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

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

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

As restated

31,659,000

37,737,000

30,794,000

24,506,000

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

42,610,000

44,889,000

37,737,000

30,794,000

DIVIDENDS - Ordinary (paid & proposed)

<15,041,000>

<13,230,000>

-

-

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

27,569,000

31,659,000

37,737,000

30,794,000

 

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

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

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

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

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

KSP MANUFACTURING SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

10,570,000

10,889,000

12,293,000

13,243,000

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

0

-

-

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

10,570,000

10,889,000

12,293,000

13,243,000

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

-

-

11,261,000

24,749,000

Trade debtors

-

-

12,130,000

15,053,000

Other debtors, deposits & prepayments

-

-

765,000

533,000

Short term deposits

-

-

5,200,000

-

Amount due from related companies

-

-

70,000

418,000

Cash & bank balances

-

-

732,000

1,381,000

Others

-

-

15,062,000

35,000

 

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

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

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

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

TOTAL CURRENT ASSETS

35,437,000

52,918,000

45,220,000

42,169,000

 

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

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

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

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

TOTAL ASSET

46,007,000

63,807,000

57,513,000

55,412,000

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

-

-

5,097,000

5,824,000

Other creditors & accruals

-

-

3,647,000

1,899,000

Amounts owing to holding company

-

-

7,000

327,000

Amounts owing to related companies

-

-

42,000

106,000

Provision for taxation

-

-

383,000

137,000

Other liabilities

-

-

-

5,725,000

 

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

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

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

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

TOTAL CURRENT LIABILITIES

7,731,000

8,548,000

9,176,000

14,018,000

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

27,706,000

44,370,000

36,044,000

28,151,000

 

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

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

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

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

TOTAL NET ASSETS

38,276,000

55,259,000

48,337,000

41,394,000

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

22,500,000

22,500,000

7,500,000

7,500,000

 

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

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

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

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

TOTAL SHARE CAPITAL

22,500,000

22,500,000

7,500,000

7,500,000

 

 

 

 

 

RESERVES

 

 

 

 

Share premium

1,700,000

-

-

-

Capital reserve

-

-

1,700,000

1,700,000

Retained profit/(loss) carried forward

27,569,000

31,659,000

37,737,000

30,794,000

 

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

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

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

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

TOTAL RESERVES

14,976,000

31,659,000

39,437,000

32,494,000

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

37,476,000

54,159,000

46,937,000

39,994,000

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Deferred taxation

-

-

1,400,000

1,400,000

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

800,000

1,100,000

1,400,000

1,400,000

 

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

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

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

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

 

38,276,000

55,259,000

48,337,000

41,394,000

 

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

KSP MANUFACTURING SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

Cash

-

-

5,932,000

1,381,000

Net Liquid Funds

-

-

5,932,000

1,381,000

Net Liquid Assets

27,706,000

44,370,000

24,783,000

3,402,000

Net Current Assets/(Liabilities)

27,706,000

44,370,000

36,044,000

28,151,000

Net Tangible Assets

38,276,000

55,259,000

48,337,000

41,394,000

Net Monetary Assets

26,906,000

43,270,000

23,383,000

2,002,000

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

-

-

0

0

Total Liabilities

8,531,000

9,648,000

10,576,000

15,418,000

Total Assets

46,007,000

63,807,000

57,513,000

55,412,000

Net Assets

38,276,000

55,259,000

48,337,000

41,394,000

Net Assets Backing

37,476,000

54,159,000

46,937,000

39,994,000

Shareholders' Funds

37,476,000

54,159,000

46,937,000

39,994,000

Total Share Capital

22,500,000

22,500,000

7,500,000

7,500,000

Total Reserves

14,976,000

31,659,000

39,437,000

32,494,000

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

-

-

0.65

0.10

Liquid Ratio

-

-

3.70

1.24

Current Ratio

4.58

6.19

4.93

3.01

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

-

-

30

69

Debtors Ratio

-

-

33

42

Creditors Ratio

-

-

14

16

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

-

-

0.00

0.00

Liabilities Ratio

0.23

0.18

0.23

0.39

Times Interest Earned Ratio

-

-

0.00

0.00

Assets Backing Ratio

1.70

2.46

6.44

5.52

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

9.29

5.98

6.68

6.74

Net Profit Margin

7.00

4.58

5.10

4.79

Return On Net Assets

37.95

16.93

18.80

21.37

Return On Capital Employed

37.95

16.93

18.80

21.37

Return On Shareholders' Funds/Equity

29.22

13.21

14.79

15.72

Dividend Pay Out Ratio (Times)

1.37

1.85

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

 

-

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.88.76

Euro

1

Rs.72.19

 

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.