MIRA INFORM REPORT

 

 

Report Date :

03.07.2013

 

IDENTIFICATION DETAILS

 

Name :

J.K.WIRE HARNESS SDN. BHD.

 

 

Registered Office :

7, Jalan Firma 2/2, Kawasan Perindustrian Tebrau 1, 81100 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.01.2012

 

 

Date of Incorporation :

31.12.1979

 

 

Com. Reg. No.:

53725-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacture, Supply of Wiring System, Wire Harnesses For Motor Vehicle and Automotive Accessories

 

 

No. of Employees :

1,780

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 35% of government revenue in 2011. Bank Negera Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

53725-K

COMPANY NAME

:

J.K.WIRE HARNESS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

31/12/1979

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

7, JALAN FIRMA 2/2, KAWASAN PERINDUSTRIAN TEBRAU 1, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

NO 7 & 9, JALAN FIRMA 2/2, KAWASAN PERINDUSTRIAN TEBRAU 1, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

TEL.NO.

:

07-3548886

FAX.NO.

:

07-3525387

EMAIL

:

VINCENT@KYM.COM.MY

WEB SITE

:

WWW.JKWH.COM.MY/

CONTACT PERSON

:

HUANG SER SEONG ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

29300

PRINCIPAL ACTIVITY

:

MANUFACTURE, SUPPLY OF WIRING SYSTEM, WIRE HARNESSES FOR MOTOR VEHICLE AND AUTOMOTIVE ACCESSORIES

AUTHORISED CAPITAL

:

MYR 3,000,000.00 DIVIDED INTO
ORDINARY SHARE 3,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

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

 

 

 

SALES

:

MYR 282,809,724 [2012]

NET WORTH

:

MYR 274,016,628 [2012]

 

 

 

STAFF STRENGTH

:

1,780 [2013]

BANKER (S)

:

BANK OF TOKYO-MITSUBISHI (MALAYSIA) BHD
HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MARGINAL 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) manufacture, supply of wiring system, wire harnesses for motor vehicle and automotive accessories.

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

The immediate holding company of the SC is TSM GLOBAL BERHAD, a company incorporated in MALAYSIA.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

TSM GLOBAL BERHAD

12, LORONG MEDAN TUANKU SATU, 50300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

73170

1,200,000.00

60.00

SUMITOMO WING SYSTEMS LTD.

1-14, NISHISUEHIRO-CHO, YOKKAICHI-CITY, MIE, JAPAN.

XLZ000001918

600,000.00

30.00

MR. LEE SING KUAN

4, LORONG TAMAN PANTAI, PANTAI HILLS, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

360130-04-5055 3908960

200,000.00

10.00

 

 

 

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

------

 

 

 

2,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

The SC interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Country

Company

(%)

As At

277652

MALAYSIA

AAN-J.K. WIRE HARNESS SDN. BHD.

100.00

29/03/2013

 

 

 

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. LIM KHENG YEW @ AUGUSTINE

Address

:

1, JALAN SS 2/8, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

4024317

New IC No

:

510717-08-5137

Date of Birth

:

17/07/1951

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

31/03/1997

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. LIM KHENG CHYE

Address

:

20, JALAN SS 1/20, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

4587888

New IC No

:

540521-08-5247

Date of Birth

:

21/05/1954

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

27/05/1998

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. LIM TZE THEAN @ AUGUSTINE

Address

:

1, JALAN SS 2/8, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

781013-14-5773

Date of Birth

:

13/10/1978

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

29/05/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. HUANG SER SEONG

Address

:

71E, JALAN LAYANG 4, TAMAN PERLING, 81200 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

A0285339

New IC No

:

651218-01-5213

Date of Birth

:

18/12/1965

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

03/05/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

TAKAO KAWAMURA

Address

:

5-6-15, HINAGA YOKKAICHI, MIE JAPAN, 510085, JAPAN.

IC / PP No

:

TH0427055

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

03/09/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

TOSHIMI SHIRAKAWA

Address

:

709-15, NISHIKATA OAZA, KUWANA, MIE JAPAN, JAPAN.

IC / PP No

:

TK4980247

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

18/07/2012

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

HUANG SER SEONG

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

LIM KHENG CHYE

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

LEE LEH KEE

 

Position

:

FINANCE MANAGER

 

 

 

 

 

4)

Name of Subject

:

VINCENT CHEAH

 

Position

:

SALES MANAGER

 

 

 

 

 

5)

Name of Subject

:

HELEN LIU

 

Position

:

EXECUTIVE

 

 

 

 

 

 

AUDITOR

 

Auditor

:

CROWE HORWATH

Auditor' Address

:

TOWER C, MEGAN AVENUE II, 12, JALAN YAP KWAN SENG, LEVEL 16, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHEE MIN ER

 

IC / PP No

:

A1891024

 

New IC No

:

710620-10-5468

 

Address

:

6, JALAN SP 3/2, TAMAN SEGAR PERDANA, BATU 9, 43200 KAJANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

BANK OF TOKYO-MITSUBISHI (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

2

10/09/1983

N/A

HONGKONG BANK MALAYSIA BHD

MYR 480,000.00

Satisfied

1

19/09/1983

N/A

MALAYSIA INDUSTRIAL DEVELOPMENT FINANCE

MYR 230,000.00

Satisfied

3

24/04/1987

N/A

HONGKONG BANK MALAYSIA BHD

MYR 300,000.00

Satisfied

4

13/10/1988

N/A

THE HONGKONG AND SHANGHAI BANKING CORP

MYR 500,000.00

Satisfied

5

28/06/1991

N/A

HONGKONG BANK MALAYSIA BHD

MYR 1,710,000.00

Satisfied

6

17/12/2008

N/A

RHB BANK BHD

MYR 20,000,000.00

Satisfied

 

 

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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

98%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

2%

Export Market

:

ASIA

Credit Term

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

AUTOMOTIVE INDUSTRIES

 

 

 

 

 

 

CUSTOMER(S)

:

1) TAN CHONG & SONS MOTOR CO SDN BHD


The SC concentrates more on the local market at this moment. It only exports if there are requirements from the overseas countries.

OPERATIONS

 

Products manufactured

:

WIRING HARNESS (ELECTRICAL DISTRIBUTION SYSTEM) FOR PASSENGER AND COMMERCIAL VEHICLES, AUTOMOTIVE ACCESSORIES

 

 

 

Award

:

1 ) MS ISO 14001 : 2004 Year :2004

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

 

 

 

Ownership of premises

:

OWNED

 

Factory Size

:

82,053 (7630 m2)

 

 

Total Number of Employees:

 

YEAR

2013

2011

2010

2008

 

GROUP

N/A

1,930

1,930

1,930

 

 

 

 

 

COMPANY

1,780

1,770

1,770

1,770

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacture, supply of wiring system, wire harnesses for motor vehicle and automotive accessories.

The SC mainly focuses on wire harness (Electrical Distribution System) for passenger and commercial vehicles, motorcycles and automotive accessories.

Besides that the SC has manufacturing plants in Johor and Tapah.

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

The SC produces wire harness for local assembled cars mainly for PERODUA. Besides this, the SC also produces wire harness for TOYOTA, NISSAN and others.

The SC also produces automobile cabling, high tension ignition cables and many more.

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

:

N/A

Current Telephone Number

:

07-3548886

Match

:

N/A

 

 

 

Address Provided by Client

:

NO.9,JALAN FIRMA 2/2,KAWASAN PERINDUSTRIAN TEBRAU 1,81100 MALAYSIA

Current Address

:

NO 7 & 9, JALAN FIRMA 2/2, KAWASAN PERINDUSTRIAN TEBRAU 1, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided is incomplete.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

8.29%

]

 

Return on Net Assets

:

Acceptable

[

11.90%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

67 Days

]

 

Debtor Ratio

:

Acceptable

[

58 Days

]

 

Creditors Ratio

:

Favourable

[

27 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The SC's management was quite efficient in handling its debtors. The SC's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. The SC had a favourable creditors' ratio where the SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

4.44 Times

]

 

Current Ratio

:

Favourable

[

5.89 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

:

Favourable

[

286.99 Times

]

 

Gearing Ratio

:

Favourable

[

0.03 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : STRONG

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

<0.5>

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

<2.7>

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

<17.2>

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

<1.2>

Investment ( % )

8.0

2.8

<0.3>

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

<28,450>

<40,482>

<45,511>

<42,297>

<39,993>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<5.6>

<5.4>

<4.5>

<4.0>

Inflation ( % Change in Composite CPI)

<5.2>

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

<0.1>

6.2

3.0

<0.0>

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

<34.5>

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 

 

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

<1.1>

<3.4>

10.8

<2.8>

-

Rubber

<19.8>

9.9

6.1

<0.6>

-

Forestry & Logging

<5.9>

<3.3>

<7.6>

<2.2>

-

Fishing

5.5

5.6

2.1

<0.7>

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

<3.8>

0.2

<5.7>

1.5

2.7

Oil & Gas

2.1

0.5

<1.7>

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

<9.4>

11.4

4.7

4.2

4.9

Exported-oriented Industries

<19.0>

12.1

2.8

4.1

-

Electrical & Electronics

<30.3>

28.4

<4.9>

1.6

-

Rubber Products

<10.1>

25.3

15.4

3.6

-

Wood Products

<24.1>

20.1

<4.9>

4.6

-

Textiles & Apparel

<19.5>

<0.4>

14.8

<7.1>

-

Domestic-oriented Industries

<9.8>

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

<7.7>

16.2

5.5

9.9

-

Plastic Products

<9.1>

2.4

3.8

-

-

Iron & Steel

<32.7>

29.3

2.4

-

-

Fabricated Metal Products

<2.5>

14.9

25.2

-

-

Non-metallic Mineral

<15.5>

20.2

27.1

6.6

-

Transport Equipment

<13.5>

36.5

<10.4>

13.7

-

Paper & Paper Products

<5.0>

18.7

14.8

<7.8>

-

Crude Oil Refineries

0.2

<11.4>

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

 

 

 

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

29300 : Manufacture of parts and accessories for motor vehicles

 

 

INDUSTRY :

MOTOR VECHICLE

 

 

 

The total industry volume (TIV) for year 2013 forcasted 640 000 units. This is an increase of 2.0% compared to the year 2012. Sales of passenger vehicles in the year 2013 forcasted increase by 2.0% to 563 000 units compared to 552 189 units at the year 2012. While sales of comercial vehicles in year 2013 forcasted to increase by 2.0% to 77 000 units compared to 75 564 units at the year 2012.

 

It is a big challenge for the TIV of year 2013 to create another high record. However, Malaysia's GPD growth is forcasted to be 5.6% in year 2013. This is driven by exports and domestic demand and is expected to give confidence in consumer sentiments. Besides, multiplier effects from the Economic Transformation Programme's (ETP) projects would give a further boost to the domestic economy and create greater demand for new vehicles.

 

According to the Malaysian Automotive Association (MAA), 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 total industry volume (TIV) of the year 2012 surged to a historical high of 627,753 units which is an all time record achievement for the industry. This record had overtaken the previous highest record of 605,156 units achieved in 2010. It had also outperformed the MAA's TIV forcast of 615,000 units. The main contributors to the growth were led by Perodua and Proton, followed by Toyota, Honda and Nissan.

 

The total registration of new passenger vehicles in year 2012 reached 552,189 unts compare with 535,113 units in year 2011. Which had bring an increase of 3.2% (17,076 units) of growth rate in the registration of passenger vehicles. While the total registration for commercial vehicles n 2012 was 75,564 units which is an increase of 6.2% (10,554 units). Besides, the production of new vehicles also recorded an increase of 6.8% (36,105 units) in year 2012. According to the president of Malaysian Automotive Association (MAA), the record new vehicle sales in 2012 was due to factors such as strong economic growth, the implementation of infrastructure projects under the Economic Transformation Programme (ETP), increased consumer spending and consumption due to stable employment and rising disposable income, introduction of new models at competitive prices as well as aggressive sales campaigns by car companies.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1979, the SC is a Private Limited company, focusing on manufacture, supply of wiring system, wire harnesses for motor vehicle and automotive accessories. Its long establishment in the market has allowed the SC to build up a good reputation and gain higher market share against its rivals. The SC is well backed by a listed company shareholders which would stimulate further growth for the SC. Hence, the potential growth of the SC is positive. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.

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 large entity, the SC has a steady workforce of 1,780 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.

The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. However, the SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 274,016,628, the SC should be able to maintain its business in the near terms.

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. 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.

We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. As the SC is long presence in the market, it should have acquired competitive edge against other players in the same fields.

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)

J.K.WIRE HARNESS SDN. BHD.

 

Financial Year End

31/01/2012

31/01/2011

31/01/2010

31/01/2009

31/01/2008

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

282,809,724

328,383,354

257,193,289

268,161,659

225,154,208

Other Income

4,381,529

4,332,634

-

-

-

 

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

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

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

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

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

Total Turnover

287,191,253

332,715,988

257,193,289

268,161,659

225,154,208

Costs of Goods Sold

<231,795,196>

<243,545,260>

-

-

-

 

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

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

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

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

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

Gross Profit

55,396,057

89,170,728

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

32,761,316

66,964,321

55,648,273

45,628,950

41,757,770

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

32,761,316

66,964,321

55,648,273

45,628,950

41,757,770

Taxation

<7,457,137>

<14,237,408>

<12,120,675>

<10,978,842>

<9,913,012>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

25,304,179

52,726,913

43,527,598

34,650,108

31,844,758

Minority interests

<2,587,537>

<3,359,361>

<1,670,598>

<403,629>

<645,039>

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

22,716,642

49,367,552

41,857,000

34,246,479

31,199,719

 

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

22,716,642

49,367,552

41,857,000

34,246,479

31,199,719

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

233,297,059

214,108,584

193,276,276

164,724,809

135,146,019

 

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

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

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

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

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

As restated

233,297,059

214,108,584

193,276,276

164,724,809

135,146,019

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

256,013,701

263,476,136

235,133,276

198,971,288

166,345,738

TRANSFER TO RESERVES - General

<254,172>

<179,077>

<1,024,692>

<695,012>

<588,929>

DIVIDENDS - Ordinary (paid & proposed)

<11,750,000>

<30,000,000>

<20,000,000>

<5,000,000>

<1,032,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

244,009,529

233,297,059

214,108,584

193,276,276

164,724,809

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

114,555

8,142

-

-

-

 

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

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

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

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

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

 

114,555

8,142

-

-

-

 

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

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

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

J.K.WIRE HARNESS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

74,566,710

56,381,835

55,206,537

60,692,435

41,909,320

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Associated companies

15,708,060

13,386,986

-

-

-

Others

11,240,293

11,168,532

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

26,948,353

24,555,518

12,738,896

12,545,415

10,148,567

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

101,515,063

80,937,353

67,945,433

73,237,850

52,057,887

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Short term quoted/unquoted investments

18,000,000

31,841,562

-

-

-

Stocks

51,805,443

39,876,225

-

-

-

Trade debtors

45,259,525

62,433,015

-

-

-

Other debtors, deposits & prepayments

1,878,423

1,702,577

-

-

-

Short term deposits

89,681,354

73,864,883

-

-

-

Amount due from related companies

10,053

7,549

-

-

-

Cash & bank balances

2,501,012

9,786,088

-

-

-

Others

1,361,832

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

210,497,642

219,511,899

208,487,191

180,534,762

168,263,201

 

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

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

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

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

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

TOTAL ASSET

312,012,705

300,449,252

276,432,624

253,772,612

220,321,088

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

17,046,215

22,417,960

-

-

-

Other creditors & accruals

8,508,246

11,263,560

-

-

-

Short term borrowings/Term loans

9,553,174

-

-

-

-

Amounts owing to related companies

620,442

582,939

-

-

-

Provision for taxation

-

4,265,168

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

35,728,077

38,529,627

36,204,753

36,788,780

-

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

174,769,565

180,982,272

172,282,438

143,745,982

168,263,201

 

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

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

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

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

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

TOTAL NET ASSETS

276,284,628

261,919,625

240,227,871

216,983,832

220,321,088

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

2,000,000

2,000,000

2,000,000

2,000,000

2,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

2,000,000

2,000,000

2,000,000

2,000,000

2,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

-

-

6,177,999

5,883,866

3,556,983

Capital reserve

4,595,383

4,465,001

-

-

-

Exchange equalisation/fluctuation reserve

1,353,530

883,916

-

-

-

Retained profit/(loss) carried forward

244,009,529

233,297,059

214,108,584

193,276,276

164,724,809

 

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

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

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

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

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

TOTAL RESERVES

249,958,442

238,645,976

220,286,583

199,160,142

168,281,792

 

 

 

 

 

 

MINORITY INTEREST

22,058,186

19,470,649

16,111,288

14,440,690

14,037,061

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

274,016,628

260,116,625

238,397,871

215,600,832

184,318,853

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

2,268,000

1,803,000

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

2,268,000

1,803,000

1,830,000

1,383,000

36,002,235

 

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

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

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

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

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

 

276,284,628

261,919,625

240,227,871

216,983,832

220,321,088

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

J.K.WIRE HARNESS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

92,182,366

83,650,971

-

-

-

Net Liquid Funds

92,182,366

83,650,971

-

-

-

Net Liquid Assets

122,964,122

141,106,047

172,282,438

143,745,982

168,263,201

Net Current Assets/(Liabilities)

174,769,565

180,982,272

172,282,438

143,745,982

168,263,201

Net Tangible Assets

276,284,628

261,919,625

240,227,871

216,983,832

220,321,088

Net Monetary Assets

120,696,122

139,303,047

170,452,438

142,362,982

132,260,966

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

9,553,174

0

-

-

-

Total Liabilities

37,996,077

40,332,627

38,034,753

38,171,780

36,002,235

Total Assets

312,012,705

300,449,252

276,432,624

253,772,612

220,321,088

Net Assets

276,284,628

261,919,625

240,227,871

216,983,832

220,321,088

Net Assets Backing

274,016,628

260,116,625

238,397,871

215,600,832

184,318,853

Shareholders' Funds

274,016,628

260,116,625

238,397,871

215,600,832

184,318,853

Total Share Capital

2,000,000

2,000,000

2,000,000

2,000,000

2,000,000

Total Reserves

249,958,442

238,645,976

220,286,583

199,160,142

168,281,792

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

2.58

2.17

-

-

-

Liquid Ratio

4.44

4.66

-

-

-

Current Ratio

5.89

5.70

5.76

4.91

-

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

67

44

-

-

-

Debtors Ratio

58

69

-

-

-

Creditors Ratio

27

34

-

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.03

0.00

-

-

-

Liabilities Ratio

0.14

0.16

0.16

0.18

0.20

Times Interest Earned Ratio

286.99

8,225.55

-

-

-

Assets Backing Ratio

138.14

130.96

120.11

108.49

110.16

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

11.58

20.39

21.64

17.02

18.55

Net Profit Margin

8.03

15.03

16.27

12.77

13.86

Return On Net Assets

11.90

25.57

23.16

21.03

18.95

Return On Capital Employed

11.02

23.80

21.71

19.72

17.82

Return On Shareholders' Funds/Equity

8.29

18.98

17.56

15.88

16.93

Dividend Pay Out Ratio (Times)

0.52

0.61

0.48

0.15

0.03

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

 

 

 



 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.41

UK Pound

1

Rs.90.38

Euro

1

Rs.77.61

 

 

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.