MIRA INFORM REPORT

 

 

Report Date :

25.01.2013

 

IDENTIFICATION DETAILS

 

Name :

KILANG SPROCKET S.A. SDN. BHD.

 

 

Registered Office :

2440 Lorong Perusahaan 10, Perai Industrial Estate, 13600 Prai, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

30.03.2001

 

 

Com. Reg. No.:

543453-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturer, Assembler, Dealer In Spocket & Accessories For Motor Vehicle

 

 

No. of Employees :

350

 

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

(31.03.2011)

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.

:

543453-K

COMPANY NAME

:

KILANG SPROCKET S.A. SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

30/03/2001

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

2440 LORONG PERUSAHAAN 10, PERAI INDUSTRIAL ESTATE, 13600 PRAI, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

2440, LORONG PERUSAHAAN 10,PRAI INDUSTRIAL ESTATE, 13600 PRAI, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-3999515

FAX.NO.

:

04-3977515

EMAIL

:

kssa@kilangsprocket.com

WEB SITE

:

www.kilangsprocket.com

CONTACT PERSON

:

LEE THIAN CHAI ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

29300

PRINCIPAL ACTIVITY

:

MANUFACTURER, ASSEMBLER, DEALER IN SPOCKET & ACCESSORIES FOR MOTOR VEHICLE

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 2,500,000.00 DIVIDED INTO
ORDINARY SHARES 2,500,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 65,668,670 [2011]

NET WORTH

:

MYR 21,098,215 [2011]

 

 

 

STAFF STRENGTH

:

350 [2013]

BANKER (S)

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BHD
RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MATURE

 

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, assembler, dealer in spocket & accessories for motor vehicle.

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


 

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



Name

Address

IC/PP/Loc No

Shareholding

(%)

KILANG RANTAI S.A. SDN BHD.

NO. 2440, LORONG PERUSAHAAN 10, PERAI INDUSTRIAL ESTATE, 13600 PRAI, PULAU PINANG, MALAYSIA.

118880

1,275,000.00

51.00

MR. LEE THIAN CHAI +

11A LEBUH KURAU 11, TMN. CHAI LENG, 13700 PRAI, MALAYSIA.

601004-01-6151

1,000,000.00

40.00

MR. LEE THIAM HOCK

 

730313-01-5823

75,000.00

3.00

MR. LEE THIAM HUAT

93 JLN MAHARANI, 84000 MUAR, JOHOR, MALAYSIA.

671228-01-6007

75,000.00

3.00

MR. LEE TIAM CHUAN

 

660905-01-5367

75,000.00

3.00

 

 

 

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

------

 

 

 

2,500,000.00

100.00

 

 

 

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

=====


+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

TAN TJIE THENG

Address

:

J1,PETOLONGAN 20, SEMARANG, INDONESIA.

IC / PP No

:

R025670

 

 

 

Date of Birth

:

24/04/1953

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

12/04/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

AGUS HARTONO

Address

:

JALAN KERTAJAYA INDAH, BLOK F 11/2, NO. 214, SURABAYA, INDONESIA.

IC / PP No

:

V829888

 

 

 

Date of Birth

:

19/08/1956

 

 

 

Nationality

:

INDONESIAN

Date of Appointment

:

20/03/2003

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MS. LEE G SU MEI

Address

:

NO.11-A,LEBUH KURAU 11, TMN CHAI LENG, 13700 PRAI, MALAYSIA.

 

 

 

New IC No

:

620525-71-5234

Date of Birth

:

25/05/1962

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/07/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. ARSHAD BIN MD.ISA

Address

:

161,PENKALAN BANGOR, 13200 KEPALA BATAS, SEBERANG PRAI, MALAYSIA.

 

 

 

New IC No

:

510428-07-5231

Date of Birth

:

28/04/1951

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

20/03/2003

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. LEE THIAN CHAI

Address

:

11A LEBUH KURAU 11, TMN. CHAI LENG, 13700 PRAI, MALAYSIA.

 

 

 

New IC No

:

601004-01-6151

Date of Birth

:

04/10/1960

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

02/04/2001

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

LEE THIAN CHAI

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

GRANT THORNTON

Auditor' Address

:

51-8-A,MENARA BHL BANK, JALAN SULTAN AHMAD SHAH,10050, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. CHEE WAI HONG

 

 

 

 

 

New IC No

:

731009-07-5391

 

Address

:

18-07-02 SCOTLAND VILLAS, MEDAN LUMBA KUDA, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. FOO LI LING

 

IC / PP No

:

A1728204

 

New IC No

:

701111-07-5286

 

Address

:

67, JALAN BUNGA ANGGERIK 2, DATARAN UKAY, 68000 AMPANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BHD

 

 

 

 

 

2)

Name

:

RHB BANK 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

:

22/08/2002

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,400,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

04/09/2002

Description Of Charge

:

N/A

 

Amount Secured

:

RM853,200.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 2 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

02/10/2003

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,081,600.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 3 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

10/01/2005

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,063,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 4 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

Overseas

:

YES

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

SPOCKET & ACCESSORIES FOR MOTOR VEHICLE

 

 

 

Competitor(s)

:

DRB-HICOM BERHAD
HARTMANN MALAYSIA SDN BHD
LUCASVARITY (M) SDN BHD
PEPS - JV (M) SDN BHD
PERODUA ENGINE MANUFACTURING SDN BHD

 

 

 

 

 

 

 

 

 

Total Number of Employees:

YEAR

2013

 


GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

350

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturer, assembler, dealer in spocket & accessories for motor vehicle.

The core business of the SC is the manufacturing of motorcycle sprocket and bicycle sprocket.

The SC has established itself as a leader and successful manufacturer in the sprocket industry by supplying its products throughout whole Malaysia and Overseas.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

04-3999515

Match

:

N/A

 

 

 

Address Provided by Client

:

2440, LORANG PERUSAHAAN 10, PERAI INDUSTRIAL ESTATE 13600 PERAI,

Current Address

:

2440, LORONG PERUSAHAAN 10,PRAI INDUSTRIAL ESTATE, 13600 PRAI, PULAU PINANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the SC and she provided some information on the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Return on Shareholder Funds

:

Favourable

[

36.94%

]

 

Return on Net Assets

:

Favourable

[

39.94%

]

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Favourable

[

1.59 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

:

Unfavourable

[

1.05 Times

]

 

 

 

 

 

 

 

 

The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

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's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

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

29300 : Manufacture of parts and accessories for motor vehicles

 

 

INDUSTRY :

MOTOR VECHICLE

 

 

 


According to the Malaysian Automotive Association (MAA),the total industry volume (TIV) for first half 2012 was 301,224 units against 297,203 of first half 2011. This is an increase of 1.4% compared to first half 2012.The implimentation of the Bank Negara's guidelines on responsible financing practices from 1st January 2012 coused a slowdown in new vehicle purchase in first quarter 2012. However the market faced growth since April 2012 due to adjustment to the stricter requirements of the hire purchase loans application process.


Sales of passenger vehicles in the first half 2012 decreaced by a very small margin of 0.8% to 250,208 units compared to 252,200 units at the first half 2011. The decreace caused by lower prodcution volume of the passenger cars due to Thailands flood and distruction in Japanese supply chain. Sales of comercial vehicles in the first half 2012 increased by 50.3% to 31 852 units compared to 21,199 units at the first half 2012.


The TIV for second half 2012 forcasted 615 000 units against 600 123 of second half 2011. This is an increase of 2.5% compared to second half 2011. Sales of passenger vehicles in the second half 2012 forcasted increase by 2.2% to 547 000 units compared to 535113 units at the second half 2011. While sales of comercial vehicles in the second half 2012 forcasted to increase by 4.6% to 68 000 units compared to 65 010 units at the second half 2012.


Second half of 2012 could be challeging , where the world economy faces significants challenges due to the eurozone crisis and expected to slow down for the second half 2012 where would affect customer spending trend. But the government incentives towards robust motor vechicle industry expected to rose in the end of 2012 due to positif customer sentiment, the introdution of new models of vechiles, a longer working month and the extension of tax incentives for hybrids and electric vehicles to December 2013 under Budget 2012.

 

 

OVERALL INDUSTRY OUTLOOK : Mature

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2001, the SC is a Private Limited company, focusing on manufacturer, assembler, dealer in spocket & accessories for motor vehicle. With its long establishment in the market, the SC has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment.


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 350 staff in its operations The SC has a good management capability.


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. 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 has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 21,098,215, 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.


The industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the SC's growth prospect is very much depends on its capacity in sustaining its performance in the market. However, with the SC's favourable conditions, it should have acquired competitive edge from its competitors.


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)

KILANG SPROCKET S.A. SDN. BHD.

 

Financial Year End

31/12/2011

Months

12

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

SUMMARY

Currency

MYR

 

 

TURNOVER

65,668,670

 

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

Total Turnover

65,668,670

 

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

 

 

PROFIT/(LOSS) FROM OPERATIONS

9,605,785

 

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

PROFIT/(LOSS) BEFORE TAXATION

9,605,785

Taxation

<1,811,316>

 

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

PROFIT/(LOSS) AFTER TAXATION

7,794,469

 

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

As previously reported

10,803,746

 

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

As restated

10,803,746

 

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

PROFIT AVAILABLE FOR APPROPRIATIONS

18,598,215

 

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

18,598,215

 

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

 

 

 

BALANCE SHEET

 

KILANG SPROCKET S.A. SDN. BHD.

 

ASSETS EMPLOYED:

 

FIXED ASSETS

12,512,461

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

148,500

 

 

 

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

TOTAL LONG TERM ASSETS

12,660,961

 

 

CURRENT ASSETS

 

TOTAL CURRENT ASSETS

30,678,725

 

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

TOTAL ASSET

43,339,686

 

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

 

 

CURRENT LIABILITIES

 

TOTAL CURRENT LIABILITIES

19,290,860

 

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

NET CURRENT ASSETS/(LIABILITIES)

11,387,865

 

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

TOTAL NET ASSETS

24,048,826

 

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

 

 

SHARE CAPITAL

 

Ordinary share capital

2,500,000

 

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

TOTAL SHARE CAPITAL

2,500,000

 

 

RESERVES

 

Retained profit/(loss) carried forward

18,598,215

 

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

TOTAL RESERVES

18,598,215

 

 

 

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

SHAREHOLDERS' FUNDS/EQUITY

21,098,215

 

 

LONG TERM LIABILITIES

 

TOTAL LONG TERM LIABILITIES

2,950,611

 

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

 

24,048,826

 

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

 

 

 

 

 

 

FINANCIAL RATIO

 

 

KILANG SPROCKET S.A. SDN. BHD.

 

TYPES OF FUNDS

 

Net Liquid Assets

11,387,865

Net Current Assets/(Liabilities)

11,387,865

Net Tangible Assets

24,048,826

Net Monetary Assets

8,437,254

 

 

BALANCE SHEET ITEMS

 

Total Liabilities

22,241,471

Total Assets

43,339,686

Net Assets

24,048,826

Net Assets Backing

21,098,215

Shareholders' Funds

21,098,215

Total Share Capital

2,500,000

Total Reserves

18,598,215

 

 

LIQUIDITY (Times)

 

Current Ratio

1.59

 

 

SOLVENCY RATIOS (Times)

 

Liabilities Ratio

1.05

Assets Backing Ratio

9.62

 

 

PERFORMANCE RATIO (%)

 

Operating Profit Margin

14.63

Net Profit Margin

11.87

Return On Net Assets

39.94

Return On Capital Employed

39.94

Return On Shareholders' Funds/Equity

36.94

 

 




 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.85

UK Pound

1

Rs.85.25

Euro

1

Rs.71.72

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.