MIRA INFORM REPORT

 

 

Report Date :

01.06.2013

 

IDENTIFICATION DETAILS

 

Name :

LATEXX MANUFACTURING SDN. BHD.

 

 

Formerly Known as:

M.R.G. INDUSTRIES SDN. BHD.

 

 

Registered Office :

Lot 18374, Jalan Perusahaan 3, Kamunting Industrial Estate, 34600 Kamunting, Perak

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

10.11.1987

 

 

Com. Reg. No.:

165989-U

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing of gloves

 

 

No. of Employees :

1161 (2013)

 

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 :

Satisfactory 

 

 

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 – 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.

:

165989-U

COMPANY NAME

:

LATEXX MANUFACTURING SDN. BHD.

FORMER NAME

:

M.R.G. INDUSTRIES SDN. BHD. (07/07/2000)

INCORPORATION DATE

:

10/11/1987

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LOT 18374, JALAN PERUSAHAAN 3, KAMUNTING INDUSTRIAL ESTATE, 34600 KAMUNTING, PERAK, MALAYSIA.

BUSINESS ADDRESS

:

LOT 18374, JALAN PERUSAHAAN TIGA, KAMUNTING INDUSTRIAL ESTATE, 34600 KAMUNTING, PERAK, MALAYSIA.

TEL.NO.

:

05-8295555

FAX.NO.

:

05-8295678

WEB SITE

:

WWW.LATEXX.COM.MY

CONTACT PERSON

:

LOW BOK TEK ( CEO )

 

 

 

INDUSTRY CODE

:

22193

PRINCIPAL ACTIVITY

:

MANUFACTURING OF GLOVES

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

 

 

 

SALES

:

MYR 435,714,026 [2011]

NET WORTH

:

MYR 157,232,186 [2011]

 

 

 

STAFF STRENGTH

:

1161 [2013]

BANKER (S)

:

BANK PEMBANGUNAN MALAYSIA BHD
EON BANK BHD
EXPORT-IMPORT BANK OF MALAYSIA BHD
HSBC BANK MALAYSIA BHD
MALAYAN BANKING BHD
OCBC BANK (MALAYSIA) BHD
RHB ISLAMIC BANK BHD

LITIGATION

:

TRACED

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

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) manufacturing of gloves.

 

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

 

The immediate holding company of the SC is LATEXX PARTNERS BERHAD, a company incorporated in MALAYSIA.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

LATEXX PARTNERS BERHAD

PLOT 18374, JALAN PERUSAHAAN 3, KAMUNTING INDUSTRIAL ESTATE, 34600 KAMUNTING, PERAK, MALAYSIA.

86100

3,000,000.00

100.00

 

 

 

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

------

 

 

 

3,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

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

Local No

Country

Company

(%)

As At

413726

MALAYSIA

ABSOLUTE SYNTHETIC TECHNOLOGIES (MALAYSIA) SDN. BHD.

51.00

29/03/2013

 

 

 

 

 

 

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

JAN-BERND HANS HEINRICH TIMMERMANN

Address

:

91 HILLVIEW AVENUE, #10-20 THE PETALS, 669625, SINGAPORE.

IC / PP No

:

C4KH4137M

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

30/01/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. LOW BAN SIN

Address

:

140, JALAN PERAJURIT, TIMUR 9, TAMAN IPOH BARU, 31400 IPOH, PERAK, MALAYSIA.

IC / PP No

:

A2024716

New IC No

:

711103-02-5181

Date of Birth

:

03/11/1971

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

02/05/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MS. LIEW LAI LAI

Address

:

88, JALAN 8, TAMAN SENTOSA, 34000 TAIPING, PERAK, MALAYSIA.

IC / PP No

:

A1559571

New IC No

:

700514-08-5492

Date of Birth

:

14/05/1970

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

31/10/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. LOW BOK TEK

Address

:

18, LORONG 20, TAMAN LAKE VIEW, 34000 TAIPING, PERAK, MALAYSIA.

IC / PP No

:

5327406

New IC No

:

580321-08-5097

Date of Birth

:

21/03/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

10/07/2004

 

 

 

 

 

 

Working Experience

:

MORE THAN 15 YEARS OF EXPERIENCE IN THE MOTOR VEHICLES INDUSTRY. HE HAS ACTIVELY INVOLVED IN THE CORPORATE PLANNING OF TAIPING SUPER BHD GROUP.

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

BORIS ILLETSHKO

Address

:

SONNENROSENGASSE 11, 2345 BRUNN AM, GEBIRGE , AUSTRIA.

IC / PP No

:

J05287768

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

30/01/2013

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

LOW BOK TEK

 

Position

:

CEO

 

 

 

 

 

2)

Name of Subject

:

THEE POH CHOON

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

STYL ASSOCIATES

Auditor' Address

:

107B, JALAN AMINUDDIN, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. TOH CHEE SEONG

 

IC / PP No

:

A1442047

 

New IC No

:

691223-07-5145

 

Address

:

148, CHANGKAT DELIMA 1, ISLAND GLADES, 11700 GELUGOR, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. ONG BEE FANG

 

IC / PP No

:

A1871995

 

New IC No

:

710501-07-5024

 

Address

:

5, CANGKAT MINDEN LORONG 4, MINDEN HEIGHTS, 11700 GELUGOR, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

BANK PEMBANGUNAN MALAYSIA BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

EON BANK BHD

 

 

 

 

 

 

 

 

 

3)

Name

:

EXPORT-IMPORT BANK OF MALAYSIA BHD

 

 

 

 

 

 

 

 

 

4)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

 

5)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

 

6)

Name

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

7)

Name

:

RHB ISLAMIC BANK BHD

 

 

 

 

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

 

 

ENCUMBRANCE (S)


ENCUMBRANCE 1

Date of Creation

:

10/10/2007

Description Of Charge

:

N/A

 

Amount Secured

:

RM6,682,886.40

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

BANK PERTANIAN MALAYSIA

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 17 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

22/05/2008

Description Of Charge

:

N/A

 

Amount Secured

:

RM15,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB ISLAMIC BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 19 In The Register of Charges





ENCUMBRANCE 3

Date of Creation

:

15/10/2008

Description Of Charge

:

N/A

 

Amount Secured

:

RM13,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB ISLAMIC BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 20 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

09/12/2009

Description Of Charge

:

N/A

 

Amount Secured

:

RM8,925,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

EON BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 21 In The Register of Charges

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank against the SC whether the subject has been involved in any litigation. 

LEGAL ACTION

 

 

 

Code No

:

99

Case No

:

1258

 

 

 

 

 

Year

:

2003

Place

:

KUALA LUMPUR

 

 

 

 

 

Court

:

HIGH COURT

 

 

 

 

 

 

 

 

Solicitor

:

KAM WOON WAH

 

 

 

 

 

 

 

 

Solicitor Tel. No.

:

20938030

 

 

 

 

 

 

 

 

Plaintiff

:

CALTEX OIL MALAYSIA LIMITED

 

 

 

Defendants

:

LATEXX MANUFACTURING SDN BHD (165989)

PT 4004, KAMUNTING IND EST, JLN PERUSAHAAN 3, KAMUNTING, PO BOX 9, 34600 KAMUNTING, PERAK, MALAYSIA.

 

 

 

 

Amount Claimed

:

370,329.85

 

 

 

 

 

 

 

 

Nature of Claim

:

GDS SOLD & DELIVERED

 

 

 

 

 

 

 

 

Remark

:

LIST

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person wo has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.

No winding up petition was found in our databank

 

 

 

DEFAULTER CHECK AGAINST SC


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

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

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 



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

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

CANADA

FRANCE

AUSTRALIA

ASIA

GERMANY

ITALY

UNITED STATES

UNITED KINGDOM

Credit Term

:

60 - 90 DAYS

 

 

 

 

 

 

Payment Mode

:

LETTER OF CREDIT (LC)
CHEQUES

Type of Customer

:

DEALERS,DISTRIBUTORS,HOSPITALS

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

GLOVES

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN RUBBER GLOVE MANUFACTURERS ASSOCIATION (MRGMA)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2009

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

1161

1,655

1,655

1,500

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:

The SC is principally engaged in the (as a / as an) manufacturing of gloves. 

The SC's products range includes ambidextrous pre-powdered latex examination gloves, powder-free latex examination gloves, powder-free nitrile examination gloves, controlled environment powder-free latex gloves, high risk gloves, and hand specified powdered latex surgical gloves.

We were informed that the SC places supreme emphasis on quality at every stage of production, in the choice of raw materials and high-grade chemicals. 

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

The SC has foreign workers from Nepal, Myanmar and Bangladesh.

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

058295555

Current Telephone Number

:

05-8295555

Match

:

YES

 

 

 

Address Provided by Client

:

PT 5054 JALAN PERUSAHAAN 3, KAMUNTING INDUSTRIAL ESTATE 34600 KAMUNTING PARK

Current Address

:

LOT 18374, JALAN PERUSAHAAN TIGA, KAMUNTING INDUSTRIAL ESTATE, 34600 KAMUNTING, PERAK, 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 also belongs to the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

23.04%

]

 

Return on Net Assets

:

Acceptable

[

29.71%

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

66 Days

]

 

Debtor Ratio

:

Favourable

[

46 Days

]

 

Creditors Ratio

:

Favourable

[

42 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

:

Unfavourable

[

0.57 Times

]

 

Current Ratio

:

Unfavourable

[

0.95 Times

]

 

 

 

 

 

 

 

 

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

10.69 Times

]

 

Gearing Ratio

:

Favourable

[

0.38 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. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. 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 : FAIR

 

 

 

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

22193 : Rubber remilling and latex processing

 

 

INDUSTRY :

NATURAL RUBBER

 

 

 

Malaysia aims to make a comeback as the world's largest rubber producer, with the opening of more plantations in Sabah and Sarawak. Currently, Thailand is the world's no. 1 in terms of production,followed by Indonesia. The Malaysian Government is placing emphasis on producing more rubber in Malaysia, concentrating on Peninsular Malaysia as well as Sabah and Sarawak. 

 

According to the Association of Natural Rubber Producing Countries (ANRPC),Global rubber production rose 4.9 per cent in the second quarter (April-June) of the 2012. Thailand forecasted to produce 3.3 million tonnes, followed by Indonesia (2.9 million tonnes) and Malaysia (975,000 tonnes).Malaysia's natural rubber production in March 2012 was 67,376 tonnes, a decrease of 23.5% or 20,701 tonnes compared to the February 2012.Howewer, natural rubber production expected to increace by 2.1 % or 1388 tonnes year-on-year (y-o-y).

 

The Malaysian Government had announced an allocation for planting new areas with rubber trees as well as the rubber replanting scheme during the tabling of Budget 2012.According to Sarawak's Rubber Industry Smallholders' Development Authority (Risda), this benefit 20,000 smallholders for the replanting.This allocation will provide opportunities for smallholders to plant more rubber trees in the future. The rubber price will continue to rise, translating into more revenue for the country, while having a positive impact on smallholders.

 

According to the Malaysian Rubber Products Manufacturers' Association, the reason behind Malaysia's fall from the top spot in respect of rubber production was the shift in interest towards downstream activities and higher returns from palm oil.Hence,at the end of 2012, active replanting activity expected to cover Sabah and sarawak about 5000ha each and about 38 000ha in penisula under goverment new replanting program and allocation.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1987, the SC is a Private Limited company, focusing on manufacturing of gloves . 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. 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. 

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. Being a large entity, the SC has a steady workforce of 1161 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright. 

The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. However, 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. Due to its low liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. 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 157,232,186, 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 they 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. 

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 has reached its optimum level and is generally stable. The potential growth for the industry is marginal and it is quite competitive. It very much depends on the SC's capacity in sustaining its performance in the market. 

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)

LATEXX MANUFACTURING SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

435,714,026

494,094,968

327,717,693

223,255,444

150,767,722

Other Income

728,368

1,018,256

308,444

48,020

36,355

 

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

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

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

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

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

Total Turnover

436,442,394

495,113,224

328,026,137

223,303,464

150,804,077

Costs of Goods Sold

<350,892,763>

<375,240,220>

<248,868,238>

<191,999,901>

<133,513,698>

 

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

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

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

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

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

Gross Profit

85,549,631

119,873,004

79,157,899

31,303,563

17,290,379

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

55,926,474

86,510,930

53,399,588

15,928,511

6,227,448

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

55,926,474

86,510,930

53,399,588

15,928,511

6,227,448

Taxation

<19,697,131>

<18,549,365>

<472,615>

<7,405>

<7,271>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

36,229,343

67,961,565

52,926,973

15,921,106

6,220,177

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

129,117,843

71,906,278

34,979,305

19,058,199

12,838,022

 

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

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

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

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

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

As restated

129,117,843

71,906,278

34,979,305

19,058,199

12,838,022

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

165,347,186

139,867,843

87,906,278

34,979,305

19,058,199

DIVIDENDS - Ordinary (paid & proposed)

<11,115,000>

<10,750,000>

<16,000,000>

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

154,232,186

129,117,843

71,906,278

34,979,305

19,058,199

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

1,546

3,423

4,401

16,777

41,970

Bankers' acceptance

1,396,844

943,871

1,163,510

755,195

-

Hire purchase

3,287,781

2,754,602

1,523,896

1,015,386

71,387

Term loan / Borrowing

1,087,501

1,245,751

1,413,319

540,006

300,493

Others

-

-

1,708,211

829,198

134,554

 

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

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

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

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

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

 

5,773,672

4,947,647

5,813,337

3,156,562

548,404

 

 

 

BALANCE SHEET

 

 

 

LATEXX MANUFACTURING SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

218,141,533

200,180,755

160,089,930

110,892,099

71,719,911

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Subsidiary companies

-

-

-

-

5,580

Investments

-

-

14,856,480

288,480

-

Others

-

-

6,264,464

6,294,318

2,217,424

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

21,120,944

6,582,798

2,223,004

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

218,141,533

200,180,755

181,210,874

117,474,897

73,942,915

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

78,672,631

47,237,646

38,417,219

36,131,929

27,835,382

Trade debtors

55,299,972

53,819,658

54,113,857

38,391,834

25,187,231

Other debtors, deposits & prepayments

3,603,127

2,599,584

2,251,401

4,659,026

7,693,491

Short term deposits

15,507,545

4,024,950

2,653,550

-

1,200,000

Short term loan to financial institutions

206,480

16,406,480

-

-

-

Amount due from related companies

3,333,024

1,911,201

12,988

-

-

Cash & bank balances

38,304,881

39,613,318

13,488,775

4,771,226

1,185,441

 

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

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

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

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

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

TOTAL CURRENT ASSETS

194,927,660

165,612,837

110,937,790

83,954,015

63,101,545

 

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

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

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

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

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

TOTAL ASSET

413,069,193

365,793,592

292,148,664

201,428,912

137,044,460

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

40,253,315

46,904,978

52,681,528

33,798,717

29,026,986

Other creditors & accruals

9,284,795

12,154,843

15,208,877

17,717,829

21,196,942

Hire purchase & lease creditors

15,984,084

12,499,533

8,396,677

3,458,508

1,370,501

Bank overdraft

-

-

-

2,134,218

-

Short term borrowings/Term loans

4,671,046

4,098,243

3,379,958

2,141,477

789,532

Bill & acceptances payable

34,581,858

21,774,542

28,919,781

28,078,728

1,225,746

Amounts owing to holding company

86,390,993

78,677,699

67,037,530

52,718,746

51,541,569

Provision for taxation

8,654,387

3,745,000

5,029

1,927

1,078

Dividends payable/proposed

5,553,000

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

205,373,478

179,854,838

175,629,380

140,050,150

105,152,354

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<10,445,818>

<14,242,001>

<64,691,590>

<56,096,135>

<42,050,809>

 

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

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

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

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

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

TOTAL NET ASSETS

207,695,715

185,938,754

116,519,284

61,378,762

31,892,106

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

3,000,000

3,000,000

3,000,000

1,693,000

1,693,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

3,000,000

3,000,000

3,000,000

1,693,000

1,693,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

154,232,186

129,117,843

71,906,278

34,979,305

19,058,199

Others

-

256,144

-

-

-

 

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

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

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

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

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

TOTAL RESERVES

154,232,186

129,373,987

71,906,278

34,979,305

19,058,199

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

157,232,186

132,373,987

74,906,278

36,672,305

20,751,199

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

7,255,690

10,948,666

12,304,763

12,957,619

5,069,812

Hire purchase creditors

32,407,839

34,115,450

28,856,957

11,748,838

6,071,095

Deferred taxation

10,800,000

8,500,651

451,286

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

50,463,529

53,564,767

41,613,006

24,706,457

11,140,907

 

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

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

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

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

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

 

207,695,715

185,938,754

116,519,284

61,378,762

31,892,106

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

LATEXX MANUFACTURING SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

53,812,426

43,638,268

16,142,325

4,771,226

2,385,441

Net Liquid Funds

53,812,426

43,638,268

16,142,325

2,637,008

2,385,441

Net Liquid Assets

<89,118,449>

<61,479,647>

<103,108,809>

<92,228,064>

<69,886,191>

Net Current Assets/(Liabilities)

<10,445,818>

<14,242,001>

<64,691,590>

<56,096,135>

<42,050,809>

Net Tangible Assets

207,695,715

185,938,754

116,519,284

61,378,762

31,892,106

Net Monetary Assets

<139,581,978>

<115,044,414>

<144,721,815>

<116,934,521>

<81,027,098>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

60,318,659

61,661,892

52,938,355

32,440,660

13,300,940

Total Liabilities

255,837,007

233,419,605

217,242,386

164,756,607

116,293,261

Total Assets

413,069,193

365,793,592

292,148,664

201,428,912

137,044,460

Net Assets

207,695,715

185,938,754

116,519,284

61,378,762

31,892,106

Net Assets Backing

157,232,186

132,373,987

74,906,278

36,672,305

20,751,199

Shareholders' Funds

157,232,186

132,373,987

74,906,278

36,672,305

20,751,199

Total Share Capital

3,000,000

3,000,000

3,000,000

1,693,000

1,693,000

Total Reserves

154,232,186

129,373,987

71,906,278

34,979,305

19,058,199

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.26

0.24

0.09

0.03

0.02

Liquid Ratio

0.57

0.66

0.41

0.34

0.34

Current Ratio

0.95

0.92

0.63

0.60

0.60

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

66

35

43

59

67

Debtors Ratio

46

40

60

63

61

Creditors Ratio

42

46

77

64

79

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.38

0.47

0.71

0.88

0.64

Liabilities Ratio

1.63

1.76

2.90

4.49

5.60

Times Interest Earned Ratio

10.69

18.49

10.19

6.05

12.36

Assets Backing Ratio

69.23

61.98

38.84

36.25

18.84

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

12.84

17.51

16.29

7.13

4.13

Net Profit Margin

8.31

13.75

16.15

7.13

4.13

Return On Net Assets

29.71

49.19

50.82

31.09

21.25

Return On Capital Employed

27.58

46.09

47.40

28.50

20.37

Return On Shareholders' Funds/Equity

23.04

51.34

70.66

43.41

29.98

Dividend Pay Out Ratio (Times)

0.31

0.16

0.30

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.56.49

UK Pound

1

Rs.86.01

Euro

1

Rs.73.68

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.