MIRA INFORM REPORT

 

 

Report Date :

10.01.2013

 

IDENTIFICATION DETAILS

 

Name :

RLA POLYMERS (M) SDN BHD

 

 

Formerly Known As :

POLYMER SOLUTIONS (M) SDN BHD

 

 

Registered Office :

10a, Lebuh Gopeng, 41400 Klang, Selangor

 

 

Country :

Malaysia.

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

23.04.1992

 

 

Com. Reg. No.:

238530-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject engaged in manufacturer & supplying of polymers.

 

 

No. of Employees :

30

                                   

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

 

Maximum Credit Limit :

USD 619,000

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

238530-M

COMPANY NAME

:

RLA POLYMERS (M) SDN BHD

FORMER NAME

:

POLYMER SOLUTIONS (M) SDN BHD (15/12/2004)
RLM POLYMER SDN BHD (04/12/1993)

INCORPORATION DATE

:

23/04/1992

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

10A, LEBUH GOPENG, 41400 KLANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

5 LEBUH RAYA PETAI, PANDAMARAN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31661039

FAX.NO.

:

03-31661037

CONTACT PERSON

:

FRANCIS ANTHONY STA MARIA ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

20291

PRINCIPAL ACTIVITY

:

MANUFACTURER & SUPPLYING OF POLYMERS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,600,000.00 DIVIDED INTO
ORDINARY SHARES 160,000 CASH AND 2,440,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 26,739,766 [2010]

NET WORTH

:

MYR 11,422,577 [2010]

 

 

 

STAFF STRENGTH

:

30 [2013]

BANKER (S)

:

STANDARD CHARTERED BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

MYR 1,951,000 (USD 619,000)

 

 

 

 

 

 

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 & supplying of polymers.

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

The immediate holding company of the SC is RLA POLYMERS PTY LTD, a company incorporated in AUSTRALIA.

The ultimate holding company of the SC is VITA CAYMAN LIMITED, a company incorporated in CAYMAN ISLANDS.

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. FRANCIS ANTHONY STA MARIA +

4 JALAN SS 25/31, TAMAN MAYANG, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

621106-10-7431 6938509

130,000.00

5.00

RLA POLYMERS PTY LTD

215 COLCHESTER ROAD KILSYTH VICTORIA 3137, AUSTRALIA.

004709915

2,470,000.00

95.00

 

 

 

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

------

 

 

 

2,600,000.00

100.00

 

 

 

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

=====

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

JOHN DAVID MELTHAM

Address

:

WILLOW GARTH, HOWDEN CROFT HILL, ELLERKER BROUGH, EAST YORKSHIRE HU15 2DE, UNITED KINGDOM.

IC / PP No

:

110143667

 

 

 

Date of Birth

:

01/01/1970

 

 

 

Nationality

:

MALAYSIAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

ANTHONY WOOD

Address

:

2/1008 TOORAK ROAD CAMBERWELL VICTORIA, 3124, VICTORIA, AUSTRALIA.

IC / PP No

:

093075258

 

 

 

 

 

 

 

 

 

Nationality

:

AUSTRALIAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MS. TONG MEI FONG

Address

:

225,JALAN LADANG PALM GROVE, 41200 KLANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

570621-10-6276

Date of Birth

:

21/06/1957

 

 

 

Nationality

:

MALAYSIAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. FRANCIS ANTHONY STA MARIA

Address

:

4 JALAN SS 25/31, TAMAN MAYANG, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

6938509

New IC No

:

621106-10-7431

Date of Birth

:

06/11/1962

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

30/11/2002

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

FRANCIS ANTHONY STA MARIA

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

EDDIE LEE

 

Position

:

MARKETING MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1SENTRAL JALAN TRAVERS, LEVEL 10, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LIM LILY

 

 

 

 

 

New IC No

:

470602-10-5966

 

Address

:

77, JALAN IBUS, SOUTHERN PARK, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. TONG MEI FONG

 

 

 

 

 

New IC No

:

570621-10-6276

 

Address

:

225,JALAN LADANG PALM GROVE, 41200 KLANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

STANDARD CHARTERED BANK MALAYSIA 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

Import Countries

:

AUSTRALIA,EUROPE

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

95%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

5%

Export Market

:

ASIA, MIDDLE EAST

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

POLYMER COMPOUND, ADHESIVES & GLUE

 

 

 

Competitor(s)

:

BP CHEMICALS (MALAYSIA) SDN. BHD.
EMERY OLEOCHEMICALS (M) SDN BHD
KL-KEPONG OLEOMAS SDN. BHD.
NATURAL OLEOCHEMICALS SDN BHD
NYLEX (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

LEASED/RENTED

 

Shifts

:

NORMAL

 

 

 

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

2008

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

30

30

30

25

20

20

 

 

 

 

Branch

:

YES

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturer & supplying of polymers.

The SC's products are used in carpet industries, automotives, construction, furnitures and others.

The finished product is a type of glue. It is known as the "rubber madeadhesive".

Besides used for carpet manufacturing, the SC's products can also be used in PVC items.

The SC does not need excessive production workers as the production process are basically mixing and blending.

The SC is equipped with both automated and semi-automated machineries at the production site.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0331661039

Current Telephone Number

:

03-31661039

Match

:

N/A

 

 

 

Address Provided by Client

:

5 LEBUH RAYA PETAI, PANDAMARAN,42000,PELABUHAN KLANG,SELANGOR.

Current Address

:

5 LEBUH RAYA PETAI, PANDAMARAN, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

NO

 

Other Investigations


The address provided is incomplete and the post code provided is incorrect.



 

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2010

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2010

]

 

Return on Shareholder Funds

:

Acceptable

[

20.09%

]

 

Return on Net Assets

:

Favourable

[

85.95%

]

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

45 Days

]

 

Debtor Ratio

:

Favourable

[

47 Days

]

 

Creditors Ratio

:

Favourable

[

50 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.92 Times

]

 

Current Ratio

:

Favourable

[

2.63 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

:

Unfavourable

[

1.46 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. 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 :

 

 

 

 

 

 

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. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. 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 : N/A

 

 

 

 

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

20291 : Manufacture of photographic plates, films, sensitized paper and other sensitized unexposed materials

 

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 1992, the SC is a Private Limited company, focusing on manufacturer & supplying of polymers. 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.


Apart from supplying its products to the local market, the SC also exports to overseas countries. Its ability to penetrate into the global market has benefited the SC in terms of higher profitability and well diversified its business risk. Hence, better growth prospect can be expected. Being a small company, the SC's business operation is supported by 30 employees. Overall, we regard that the SC's management capability is average.


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. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. 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. 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. 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. Given a positive net worth standing at MYR 11,422,577, 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)

RLA POLYMERS (M) SDN BHD

 

Financial Year End

31/12/2010

31/12/2009

31/12/2008

31/12/2007

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

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

26,739,766

18,850,765

17,716,352

15,435,970

 

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

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

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

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

Total Turnover

26,739,766

18,850,765

17,716,352

15,435,970

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

3,090,726

1,871,094

2,091,021

1,827,514

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

3,090,726

1,871,094

2,091,021

1,827,514

Taxation

<795,554>

<448,001>

<595,697>

<482,620>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

2,295,172

1,423,093

1,495,324

1,344,894

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

6,527,405

5,104,312

3,608,988

2,264,094

 

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

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

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

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

As restated

6,527,405

5,104,312

3,608,988

2,264,094

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

8,822,577

6,527,405

5,104,312

3,608,988

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

8,822,577

6,527,405

5,104,312

3,608,988

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Others

6,782,865

-

-

-

 

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

 

 

 

 

6,782,865

 

 

 

 

 

BALANCE SHEET

 

 

RLA POLYMERS (M) SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

586,001

596,263

760,647

712,219

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Others

3,312,423

3,208,797

3,098,400

-

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

3,312,423

3,208,797

3,098,400

-

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

3,898,424

3,805,060

3,859,047

712,219

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

3,296,253

2,723,310

2,011,591

1,403,317

Trade debtors

3,462,271

3,832,773

2,727,713

3,616,110

Other debtors, deposits & prepayments

319,347

400,870

170,946

95,412

Short term deposits

183,106

183,106

183,106

3,183,106

Cash & bank balances

4,915,684

2,595,373

1,732,058

870,922

Others

63,686

119,588

-

-

 

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

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

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

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

TOTAL CURRENT ASSETS

12,240,347

9,855,020

6,825,414

9,168,867

 

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

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

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

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

TOTAL ASSET

16,138,771

13,660,080

10,684,461

9,881,086

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

3,634,222

3,469,010

2,319,278

2,862,806

Other creditors & accruals

878,852

804,455

356,379

602,847

Amounts owing to holding company

137,971

196,291

220,893

83,155

Provision for taxation

-

-

11,967

43,673

 

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

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

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

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

TOTAL CURRENT LIABILITIES

4,651,045

4,469,756

2,908,517

3,592,481

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

7,589,302

5,385,264

3,916,897

5,576,386

 

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

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

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

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

TOTAL NET ASSETS

11,487,726

9,190,324

7,775,944

6,288,605

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

2,600,000

2,600,000

2,600,000

2,600,000

 

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

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

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

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

TOTAL SHARE CAPITAL

2,600,000

2,600,000

2,600,000

2,600,000

 

 

 

 

 

RESERVES

 

 

 

 

Retained profit/(loss) carried forward

8,822,577

6,527,405

5,104,312

3,608,988

 

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

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

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

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

TOTAL RESERVES

8,822,577

6,527,405

5,104,312

3,608,988

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

11,422,577

9,127,405

7,704,312

6,208,988

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Deferred taxation

65,149

62,919

71,632

79,617

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

65,149

62,919

71,632

79,617

 

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

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

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

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

 

11,487,726

9,190,324

7,775,944

6,288,605

 

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

RLA POLYMERS (M) SDN BHD

 

TYPES OF FUNDS

 

 

 

 

Cash

5,098,790

2,778,479

1,915,164

4,054,028

Net Liquid Funds

5,098,790

2,778,479

1,915,164

4,054,028

Net Liquid Assets

4,293,049

2,661,954

1,905,306

4,173,069

Net Current Assets/(Liabilities)

7,589,302

5,385,264

3,916,897

5,576,386

Net Tangible Assets

11,487,726

9,190,324

7,775,944

6,288,605

Net Monetary Assets

4,227,900

2,599,035

1,833,674

4,093,452

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

0

0

0

0

Total Liabilities

4,716,194

4,532,675

2,980,149

3,672,098

Total Assets

16,138,771

13,660,080

10,684,461

9,881,086

Net Assets

11,487,726

9,190,324

7,775,944

6,288,605

Net Assets Backing

11,422,577

9,127,405

7,704,312

6,208,988

Shareholders' Funds

11,422,577

9,127,405

7,704,312

6,208,988

Total Share Capital

2,600,000

2,600,000

2,600,000

2,600,000

Total Reserves

8,822,577

6,527,405

5,104,312

3,608,988

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

1.10

0.62

0.66

1.13

Liquid Ratio

1.92

1.60

1.66

2.16

Current Ratio

2.63

2.20

2.35

2.55

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

45

53

41

33

Debtors Ratio

47

74

56

86

Creditors Ratio

50

67

48

68

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

Liabilities Ratio

0.41

0.50

0.39

0.59

Times Interest Earned Ratio

1.46

0.00

0.00

0.00

Assets Backing Ratio

4.42

3.53

2.99

2.42

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

11.56

9.93

11.80

11.84

Net Profit Margin

8.58

7.55

8.44

8.71

Return On Net Assets

85.95

20.36

26.89

29.06

Return On Capital Employed

85.95

20.36

26.89

29.06

Return On Shareholders' Funds/Equity

20.09

15.59

19.41

21.66

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0




 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.96

UK Pound

1

Rs.88.22

Euro

1

Rs.71.92

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.