MIRA INFORM REPORT

 

 

Report Date :

06.06.2013

 

IDENTIFICATION DETAILS

 

Name :

CHAMPION PHOTOCHEMISTRY SDN. BHD.

 

 

Registered Office :

Level 8, Symphony House, Block D13, Pusat Dagangan Dana 1, Jalan Pju 1a/46, 47301 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.08.2012

 

 

Date of Incorporation :

15.03.1990

 

 

Com. Reg. No.:

194979-M

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing and Distribution of Photographic Equipment and Related Product

 

 

No. of Employees :

50

 

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.

:

194979-M

COMPANY NAME

:

CHAMPION PHOTOCHEMISTRY SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

15/03/1990

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LEVEL 8, SYMPHONY HOUSE, BLOCK D13, PUSAT DAGANGAN DANA 1, JALAN PJU 1A/46, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 28B, MUKIM BATU INDUSTRIAL AREA, 6 1/2 MILES, JALAN KEPONG, 52000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-62572600

FAX.NO.

:

03-62572622

EMAIL

:

SVPLUS_ASIA@CHAMPIONPHOTOCHEMISTRY.COM

WEB SITE

:

WWW.CHAMPIONPHOTOCHEMISTRY.COM

CONTACT PERSON

:

ANDY TEOH ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

26702

PRINCIPAL ACTIVITY

:

MANUFACTURING AND DISTRIBUTION OF PHOTOGRAPHIC EQUIPMENT AND RELATED PRODUCT

AUTHORISED CAPITAL

:

MYR 2,500,000.00 DIVIDED INTO
ORDINARY SHARE 2,500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,500,000.00 DIVIDED INTO
ORDINARY SHARES 2 CASH AND 2,499,998 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 23,421,907 [2012]

NET WORTH

:

MYR 3,706,094 [2012]

 

 

 

STAFF STRENGTH

:

50 [2013]

BANKER (S)

:

CIMB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND


The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) anufacturing and distribution of photographic equipment and related product.

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

The immediate holding company of the SC is NATURECARE CORPORATION, a company incorporated in BRITISH VIRGIN ISLAND.


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


Name

Address

IC/PP/Loc No

Shareholding

(%)

NATURECARE CORPORATION

P.O. BOX 659, INTERNATIONAL TRUST BUILDING, WICKHAMS CAY, ROAD TOWN, TORTOLA BRITISH VIRGIN ISLANDS

XLZ000007172

2,500,000.00

100.00

 

 

 

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

------

 

 

 

2,500,000.00

100.00

 

 

 

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

=====

+ Also Director


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



Local No

Country

Company

(%)

As At

 

CHINA

CHAMPION PHOTOCHEMISTRY TADING (SHANGHAI) CO. LTD

100.00

31/08/2011

 

 

 

 

 




 

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

PHILIP ABRAHAM CHIN

Address

:

NO.7 JALAN KELAB GOLF 13/7, GREEN VILLE, SEKSYEN 13, 40100 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

BA650920

 

 

 

 

 

 

 

 

 

Nationality

:

CANADIAN

Date of Appointment

:

23/05/1991

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

PETER NEWTON

Address

:

27,DONRIDGE DR.,TORONTO, ON M2P 1H3, CANADA.

IC / PP No

:

JK627093

 

 

 

 

 

 

 

 

 

Nationality

:

CANADIAN

Date of Appointment

:

19/03/1990

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. ANDY TEOH EAN LEE

Address

:

12, JALAN 14/41, 46100 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

660603-07-5903

Date of Birth

:

03/06/1966

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

09/06/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

PETER NEWTON

Address

:

27,DONRIDGE DR.,TORONTO, ON M2P 1H3, CANADA.

IC / PP No

:

WH019707

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

19/03/1990

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

ANDY TEOH

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

PHILIP ABRAHAM CHIN

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

JERRY ONG

 

Position

:

SALES MANAGER

 

 

 

 

 

4)

Name of Subject

:

CHONG MENG

 

Position

:

SALES MANAGER

 

 

 

 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG

Auditor' Address

:

LEVEL 23A, MENARA MILENIUM, JALAN DAMANLELA,, PUSAT BANDAR DAMANSARA, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHEN BEE LING

 

 

 

 

 

New IC No

:

740719-06-5256

 

Address

:

B-3-3A PANGSAPURI IMPIAN, OFF JALAN PIPIT, BANDAR PUCHONG JAYA, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. CHIN NGEOK MUI

 

 

 

 

 

New IC No

:

640423-10-7826

 

Address

:

3, JALAN IBU KOTA EMPAT, TAMAN IBU KOTA, GOMBAK, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB 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

:

20/10/2011

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

CIMB BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 8 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

23/06/1997

Description Of Charge

:

N/A

 

Amount Secured

:

MYR6,011,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

BANK BUMIPUTRA MALAYSIA BERHAD

 

 

 

 

 

 

 

Form 40 Dated 28/06/1997

Registered and Numbered 4 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

02/10/2002

Description Of Charge

:

N/A

 

Amount Secured

:

MYR2,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

BUMIPUTRACOMMERCE BANK BERHAD

 

 

 

 

 

 

 

Form 40 Dated 07/10/2002

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

12/04/2004

Description Of Charge

:

N/A

 

Amount Secured

:

MYR3,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

BUMIPUTRACOMMERCE BANK BERHAD

 

 

 

 

 

 

 

Form 40 Dated 07/05/2004

Registered and Numbered 6 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

10/09/2012

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

HONG LEONG BANK BERHAD

 

 

 

 

 

 

 

Form 40 Dated 12/09/2012

Registered and Numbered 7 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

 

Import Countries

:

EUROPE,ASIA



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

:

CHINA

HONG KONG

JAPAN

KOREA

TAIWAN

NEW ZEALAND

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
LETTER OF CREDIT (LC)

Type of Customer

:

DEALERS

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

PHOTOGRAPHIC SOLUTIONS

 

 

 

Brand Name

:

CHAMPION, PHOTOCHEMISTRY, DERALEX, FIXULAS, REDI-FIX, RUSSELL , MYDONEG , MYDOPRINT , NATURECARE MYDOCHROME 6, NOVOTAK , QUALITECH , GRAFIX , RAPA, DERALEX ,FIXALUS ,G REDI-LITH , NOVOTECH , NOVOSPEED NPRIMAPRINT , REDI-SPEED, REDI-TECH , DEVALEX , NOVOLITH , FIXAPLUS

 

 

 

 

Competitor(s)

:

ACIDCHEM INTERNATIONAL SDN BHD
CENTURY CHEMICAL WORKS SDN BHD
DAIREN CHEMICAL (M) SDN BHD
FLEXSYS CHEMICALS (M) SDN BHD
RAH HOLDINGS SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

2008

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

50

50

50

50

50

50

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) anufacturing and distribution of photographic equipment and related product.

The SC's products range includes as follows:

* Photography - Professional & Consumer
* X-Ray - Medical, Dental & Industrial
* Graphic Arts - Printing & Industrial

The SC is produces the picture perfect petrochemicals for:

* Minilabs, Studios, Prolabs,
* Newspapers, Magazines,
* Hospitals, Clinics and;
* Prepress applications.

We were informed that the SC has appointed authorized distributors throughout America, Africa, Australia, Asia and Euroupean countries.

Besides that the SC is also has Research & Development Centre based in Canada which equipped with state-of-the-art facilities.

In addition it also has subsiadiary company located in China which is involved in trading of photographic solutions.

The SC utilises the most advanced, automated and semi-automated machineries to ensure production of high quality products thus meeting customers' requirements.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0362572600

Current Telephone Number

:

03-62572600

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 288 MUKIM BATU INDUSTRIAL AREA 6 1/2MILES JALAN KEPONG 52000 KUALA LUMPUR

Current Address

:

LOT 28B, MUKIM BATU INDUSTRIAL AREA, 6 1/2 MILES, JALAN KEPONG, 52000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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 incorrect.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

<0.72%>

]

 

Return on Net Assets

:

Unfavourable

[

1.50%

]

 

 

 

 

 

 

 

 

The continuous fall in turnover could be due to the lower demand for the SC's products / services.The SC's profit fell sharply because of the high operating costs incurred. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Favourable

[

1.52 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

[

1.59 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC's performance deteriorated over the years with lower turnover and profit. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC'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 : 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

26702 : Manufacture of photographic equipment

 

 

INDUSTRY :

MACHINERY

 

 

 

Malaysia is presently the leading manufacturer of automation machinery and equipment (M&E) for the electrical and electronics (E&E) industry in the ASEAN region with a total of 22 companies in production. The machinery and equipment industry has expanded and produce a diverse range of machinery which give importance to the overall industrial development of the country, due to its cross cutting linkages with all industrial sectors.

 

Malaysia implemented Industrial Master Plan 3 (IMP3, 2006-2020), which the machinery and equipment industry has been established as one of the key areas for growth and development. The implementation focused on the manufacture of high value-added and high technology machinery and equipment (M&E). Under this plan, M&E will positioned Malaysia as the regional production hub for high technology and specialized M&E in the ASEAN region for 2012.

 

Furthemore for the year 2012, Malaysia is the largest manufacturing hub of boilers in the Southeast Asia region. The exports are mainly directed to the neighboring countries such as Indonesia, Philippines, Thailand and Cambodia. Exports of machinery and equipment registered a double-digit growth of 12.6% in the frst seven month of 2012 mainly driven by general industrial machinery and equipment as well as specialised machinery for specific industries.

 

For enhance the machinery and equipment (M&E), the government has introduced two major tax incentives for companies investing in the manufacturing sector where the pioneer status and the investment tax allowance. The tax incentives would remain to be a competitive industry within ASEAN.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1990, the SC is a Private Limited company, focusing on anufacturing and distribution of photographic equipment and related product. The SC has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The 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. The SC is operating on a medium scale and it has approximately 50 employees in its business operations. 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. 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 3,706,094, the SC should be able to maintain its business in the near terms.

Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth . The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.

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

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.

Based on the above condition, we recommend credit be granted to the SC normally.

 

 

PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

CHAMPION PHOTOCHEMISTRY SDN. BHD.

 

Financial Year End

31/08/2012

31/08/2011

31/08/2010

31/08/2009

31/08/2008

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

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

23,421,907

26,081,324

32,221,351

22,098,203

26,300,160

 

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

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

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

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

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

Total Turnover

23,421,907

26,081,324

32,221,351

22,098,203

26,300,160

Costs of Goods Sold

-

<20,080,638>

<24,601,281>

-

-

 

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

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

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

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

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

Gross Profit

-

6,000,686

7,620,070

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

55,842

663,410

1,548,868

3,751,533

5,101,839

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

55,842

663,410

1,548,868

3,751,533

5,101,839

Taxation

<82,358>

<308,893>

<341,922>

<956,167>

<1,177,209>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

<26,516>

354,517

1,206,946

2,795,366

3,924,630

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

1,178,514

2,323,997

1,117,051

1,171,685

2,547,055

 

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

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

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

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

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

As restated

1,178,514

2,323,997

1,117,051

1,171,685

2,547,055

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,151,998

2,678,514

2,323,997

3,967,051

6,471,685

DIVIDENDS - Ordinary (paid & proposed)

-

<1,500,000>

-

<2,850,000>

<5,300,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,151,998

1,178,514

2,323,997

1,117,051

1,171,685

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

-

13,718

7,776

9,772

6,938

Bankers' acceptance

-

60,628

51,566

-

-

Others

-

66,217

85,405

117,853

140,863

 

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

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

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

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

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

 

-

140,563

144,747

127,625

147,801

 

 

 

BALANCE SHEET

 

 

CHAMPION PHOTOCHEMISTRY SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

657,579

735,653

841,207

903,995

1,079,128

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Deferred assets

-

-

127,159

119,256

146,341

Others

-

-

-

1,760,500

1,696,500

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

127,159

1,879,756

1,842,841

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

657,579

735,653

968,366

2,783,751

2,921,969

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

-

2,679,410

3,500,800

3,661,264

3,173,792

Trade debtors

-

2,274,121

3,869,600

744,145

1,283,415

Other debtors, deposits & prepayments

-

993,356

1,053,542

352,901

240,609

Short term deposits

-

-

-

1,168,288

570,444

Cash & bank balances

-

2,464,877

1,871,731

892,957

1,317,652

Others

-

223,656

301,162

-

102,666

 

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

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

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

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

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

TOTAL CURRENT ASSETS

8,933,959

8,635,420

10,596,835

6,819,555

6,688,578

 

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

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

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

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

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

TOTAL ASSET

9,591,538

9,371,073

11,565,201

9,603,306

9,610,547

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

2,370,685

2,922,797

3,672,380

2,930,759

Other creditors & accruals

-

1,631,738

2,207,157

966,090

1,640,333

Bank overdraft

-

510,798

-

-

141,879

Other borrowings

-

-

-

99,000

217,000

Bill & acceptances payable

-

1,117,000

1,604,000

1,060,000

556,000

Amounts owing to holding company

-

-

-

-

101,032

Provision for taxation

-

-

-

87,999

288,666

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

5,867,663

5,630,221

6,733,954

5,885,469

5,875,669

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

3,066,296

3,005,199

3,862,881

934,086

812,909

 

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

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

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

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

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

TOTAL NET ASSETS

3,723,875

3,740,852

4,831,247

3,717,837

3,734,878

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

2,500,000

2,500,000

2,500,000

2,500,000

2,500,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

2,500,000

2,500,000

2,500,000

2,500,000

2,500,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

1,206,094

-

-

-

-

Exchange equalisation/fluctuation reserve

-

18,129

7,250

100,786

63,193

Retained profit/(loss) carried forward

-

1,178,514

2,323,997

1,117,051

1,171,685

 

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

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

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

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

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

TOTAL RESERVES

1,206,094

1,196,643

2,331,247

1,217,837

1,234,878

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,706,094

3,696,643

4,831,247

3,717,837

3,734,878

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

-

44,209

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

17,781

44,209

-

-

-

 

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

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

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

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

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

 

3,723,875

3,740,852

4,831,247

3,717,837

3,734,878

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

CHAMPION PHOTOCHEMISTRY SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

-

2,464,877

1,871,731

2,061,245

1,888,096

Net Liquid Funds

-

1,954,079

1,871,731

2,061,245

1,746,217

Net Liquid Assets

3,066,296

325,789

362,081

<2,727,178>

<2,360,883>

Net Current Assets/(Liabilities)

3,066,296

3,005,199

3,862,881

934,086

812,909

Net Tangible Assets

3,723,875

3,740,852

4,831,247

3,717,837

3,734,878

Net Monetary Assets

3,048,515

281,580

362,081

<2,727,178>

<2,360,883>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

-

510,798

0

99,000

358,879

Total Liabilities

5,885,444

5,674,430

6,733,954

5,885,469

5,875,669

Total Assets

9,591,538

9,371,073

11,565,201

9,603,306

9,610,547

Net Assets

3,723,875

3,740,852

4,831,247

3,717,837

3,734,878

Net Assets Backing

3,706,094

3,696,643

4,831,247

3,717,837

3,734,878

Shareholders' Funds

3,706,094

3,696,643

4,831,247

3,717,837

3,734,878

Total Share Capital

2,500,000

2,500,000

2,500,000

2,500,000

2,500,000

Total Reserves

1,206,094

1,196,643

2,331,247

1,217,837

1,234,878

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

-

0.44

0.28

0.35

0.32

Liquid Ratio

-

1.06

1.05

0.54

0.60

Current Ratio

1.52

1.53

1.57

1.16

1.14

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

-

37

40

60

44

Debtors Ratio

-

32

44

12

18

Creditors Ratio

-

43

43

61

41

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

-

0.14

0.00

0.03

0.10

Liabilities Ratio

1.59

1.54

1.39

1.58

1.57

Times Interest Earned Ratio

-

5.72

11.70

30.39

35.52

Assets Backing Ratio

1.49

1.50

1.93

1.49

1.49

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

0.24

2.54

4.81

16.98

19.40

Net Profit Margin

<0.11>

1.36

3.75

12.65

14.92

Return On Net Assets

1.50

21.49

35.06

104.34

140.56

Return On Capital Employed

1.50

18.91

35.06

104.34

135.41

Return On Shareholders' Funds/Equity

<0.72>

9.59

24.98

75.19

105.08

Dividend Pay Out Ratio (Times)

-

4.23

0.00

1.02

1.35

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

-

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.42

UK Pound

1

Rs.86.54

Euro

1

Rs.73.86

 

 

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.