MIRA INFORM REPORT

 

 

Report Date :

14.06.2013

 

IDENTIFICATION DETAILS

 

Name :

NIPPON ELECTRIC GLASS (MALAYSIA) SDN. BHD.

 

 

Registered Office :

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

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

26.01.1991

 

 

Com. Reg. No.:

211795-M

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing of Cathode Ray Tube Glass, Glass Tubing, Glass Fiber, Neorex & Other Related Electronic Glass Materials

 

 

No. of Employees :

500

 

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

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

211795-M

COMPANY NAME

:

NIPPON ELECTRIC GLASS (MALAYSIA) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

26/01/1991

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

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

BUSINESS ADDRESS

:

LOT 1-7, LION INDUSTRIAL PARK, PERSIARAN JUBLI PERAK, SECTION 22, 40706 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-55430000

FAX.NO.

:

03-51910881

WEB SITE

:

WWW.NEG.CO.JP

CONTACT PERSON

:

SHIGARU GOTO ( MANAGING DIRECTOR )

INDUSTRY CODE

:

231

PRINCIPAL ACTIVITY

:

MANUFACTURING OF CATHODE RAY TUBE GLASS, GLASS TUBING, GLASS FIBER, NEOREX & OTHER RELATED ELECTRONIC GLASS MATERIALS

AUTHORISED CAPITAL

:

MYR 1,460,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,460,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,303,574,600.00 DIVIDED INTO
ORDINARY SHARES 1,303,574,600 CASH OF MYR 1.00 EACH.

SALES

:

MYR 1,205,789,034 [2012]

NET WORTH

:

MYR 1,465,133,401 [2012]

M1000 OVERALL RANKING

:

512[2011]

M1000 INDUSTRY RANKING

:

23[2011]

STAFF STRENGTH

:

500 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

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) manufacturing of cathode ray tube glass, glass tubing, glass fiber, neorex & other related electronic glass materials.

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

 

According to the Malaysia 1000 publication, the SC's ranking are as follows:

 

YEAR

2011

2009

2008

2005

2004

 

OVERALL RANKING

512

340

286

156

120

 

INDUSTRY RANKING

23

21

21

14

12

 

 

The immediate and ultimate holding company of the SC is NIPPON ELECTRIC GLASS CO LTD, a company incorporated in JAPAN.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

NIPPON ELECTRIC GLASS CO LTD

7-1, SEIRAN 2-CHOME, OTSU SHIGA, JAPAN.

XLZ000008797

1,303,574,600.00

100.00

 

 

 

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

------

 

 

 

1,303,574,600.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

SHIGERU GOTO

Address

:

UNIR 37-20-2, SRI PENAGA CONDOMINIUM, JALAN MEDANG SERAI, BUKIT BANDARAYA, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

TG7881401

Nationality

:

JAPANESE

Date of Appointment

:

01/04/2011

 

DIRECTOR 2

 

Name Of Subject

:

TAKAO AKUNE

Address

:

UNIT 37-17-5, SRI PENAGA CONDO, JALAN MEDANG SERAI, BUKIT BANDARAYA, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

MZ0462688

Nationality

:

JAPANESE

Date of Appointment

:

31/03/2006

 

DIRECTOR 3

 

Name Of Subject

:

SATOSHI FURUTA

Address

:

B 8-3A, BAYU ANGKASA, JALAN MEDANG KAPAS, BUKIT BANDARAYA, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

TH5759800

Nationality

:

JAPANESE

Date of Appointment

:

21/01/2010

 

DIRECTOR 4

 

Name Of Subject

:

KOICHI INAMASU

Address

:

8-11-207 UCHIDEHAMA, OTSU, SHIGA, 520-0806 , JAPAN.

IC / PP No

:

TK2948339

Nationality

:

JAPANESE

Date of Appointment

:

31/03/2006



MANAGEMENT

 

 

 

1)

Name of Subject

:

SHIGARU GOTO

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

ABDUL NASIR B. ABU BAKAR

 

Position

:

ADMIN MANAGER

 

 

 

 

 

3)

Name of Subject

:

LEONG MENG FWEI

 

Position

:

SENIOR FINANCE MANAGER

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR CENTRAL, P O BOX 10192, LEVEL 15, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHEONG CHOON YIN

 

New IC No

:

711103-03-5216

 

Address

:

NO. 8 JALAN PUTRA HARMONI 1/3H, SEKSYEN 1 PUTRA HEIGHTS, 47650 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

2)

Company Secretary

:

MS. WONG SIEW YEEN

 

New IC No

:

700305-05-5166

 

Address

:

NO. 3, JALAN SS15/5E, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

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

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.


No legal action was found in our databank.


No winding up petition was found in our databank.

 

 

DEFAULTER CHECK AGAINST SC


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


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

 

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

EUROPE


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

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

WORLDWIDE

Credit Term

:

30 - 60 DAYS

Payment Mode

:

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

Type of Customer

:

LICENCE MANUFACTURER WAREHOUSE (LMW)

 

 

OPERATIONS

 

Products manufactured

:

GLASS BULBS, GLASS FIBRE CHOPPED STRANDS, GLASS TUBES, TURNTABLES (PLATES)

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2004
2 ) MS ISO 14001 : 2004 Year :2001

 

 

 

 

 

Competitor(s)

:

IWAKI GLASS (MALAYSIA) SDN BHD
KIG GLASS INDUSTRIAL BHD
MSG SAFETY GLASS SDN BHD
OZONE GLASS DESIGN SDN BHD
SEOWON PRECISION GLASS (M) SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

500

500

520

520

500

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of cathode ray tube glass, glass tubing, glass fiber, neorex & other related electronic glass materials.

The SC's products range includes glass bulbs for CRT, glasstubes, chopped strands, glass fibre and etc.

We were informed that the SC's products are used in televisions, computers, microwaves and others.

Besides that the SC also undertakes manufacturing of internal glass for the microwaves mainly for SAMSUNG.

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


PROJECTS


No projects found in our databank

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-55430000

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 1-7 LION INDUSTRIAL PARK, PERSIARAN JUBLI PERK, 40706 SHAH ALAM, SELANGOR MALAYSIA

Current Address

:

LOT 1-7, LION INDUSTRIAL PARK, PERSIARAN JUBLI PERAK, SECTION 22, 40706 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 13th June 2013 we contacted one of the staff from SC and she provided us some information on SC.

The address provided is incomplete.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

<10.62%>

]

 

Return on Net Assets

:

Unfavourable

[

<9.28%>

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC could be more efficient in controlling its operating costs and had managed to reduce its losses during the year. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Favourable

[

1.61 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

:

Favourable

[

0.33 Times

]

 

 

 

 

 

 

 

 

A low liabilities ratio has minimised the SC's financial risk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The higher turnover had helped to reduce the SC's losses. 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 has a low liabilities ratio. It's liabilities were low and was not vulnerable to the financial risk.

 

 

 

 

 

 

 

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

231 : Manufacture of glass and glass products

 

 

INDUSTRY :

MANUFACTURING

 

The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domesticoriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand.

 

Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first sevenmonths of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domesticoriented industries continued to expand 8.6% while export-oriented industries grew 4.1%.

 

According to the Department of Statistics, the sales value of the Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion) to record RM52.4 billion as compared to RM48.8 billion reported in year 2012. Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2 billion) as compared with the preceding month. The sales value in December 2012 has been revised positive 7.5% year-on-year to record RM52.6 billion.

 

Output of rubber products increased 3.6% in the first seven month of 2012 mainly supported by continuous demand for rubber gloves. Output of rubber gloves grew 5.9% on account of the expansion in the global healthcare industry and wider usage of gloves in other sectors. Similarly, output of catheters, especially for use in medical appliances, also registered a strong growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in tandem with slowing external demand from the automotive industry, especially China.

 

Meanwhile, production of wood and wood products rebounded 4.6% largely supported by higher demand for wooden and cane furniture (33.5%). The positive performance was attributed to vibrant higher demand from major export destinations such as China and the United States (US) for Malaysian-made furniture. Demand from China accelerated further following the country's rising income level and the implementation of zero import duty on Malaysian made-furniture. Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.

 

The output of chemicals and chemical products rose 9.9% in the first seven month of year 2012 on account of increasing demand for plastic products (11.8%) and basic chemicals (11.1%). External demand for plastic packaging materials surged during the early part of the year 2012, particularly from Japan and Thailand, as manufacturers resumed operations, which were interrupted by natural calamities and power outages. Chemical production are expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.

 

Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such assolar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1991, the SC is a Private Limited company, focusing on manufacturing of cathode ray tube glass, glass tubing, glass fiber, neorex & other related electronic glass materials. The SC has been existence in the market for 23 years and it has succeeded in building up its image in the market. With a large issued and paid up capital of RM1,303,574,600 and strong backing from its well-established holding company, the SC enjoys timely financial assistance should the needs arise. These favourable conditions has minimised its risk in the industry compared to other players

 

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 500 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. To improve its quality products and services, we noted that the SC has received a number of certifications & awards. This will improve the customer's confidence level to the SC.


Despite the higher turnover, the SC suffered pre-tax losses which reflected a highly competitive business environment. 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. A low liabilities ratio has minimised the SC's financial risk. Given a positive net worth standing at MYR 1,465,133,401, 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.


The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.

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)

NIPPON ELECTRIC GLASS (MALAYSIA) SDN. BHD.

 

Financial Year End

31/12/2012

31/12/2011

31/12/2010

31/12/2009

31/12/2008

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

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

1,205,789,034

1,203,518,305

1,017,528,370

681,539,581

1,110,557,984

 

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

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

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

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

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

Total Turnover

1,205,789,034

1,203,518,305

1,017,528,370

681,539,581

1,110,557,984

Costs of Goods Sold

-

<1,181,440,081>

<863,188,106>

<730,307,585>

-

 

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

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

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

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

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

Gross Profit

-

22,078,224

154,340,264

<48,768,004>

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

<155,592,202>

<172,568,414>

<9,836,620>

<133,147,953>

<193,574,431>

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

<155,592,202>

<172,568,414>

<9,836,620>

<133,147,953>

<193,574,431>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

<155,592,202>

<172,568,414>

<9,836,620>

<133,147,953>

<193,574,431>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

317,151,003

489,719,417

499,556,037

632,703,990

828,959,616

Prior year adjustment

-

-

-

-

<2,681,195>

 

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

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

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

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

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

As restated

317,151,003

489,719,417

499,556,037

632,703,990

826,278,421

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

161,558,801

317,151,003

489,719,417

499,556,037

632,703,990

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

161,558,801

317,151,003

489,719,417

499,556,037

632,703,990

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

-

10,277,611

10,988,486

14,292,979

14,195,304

 

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

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

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

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

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

 

-

10,277,611

10,988,486

14,292,979

14,195,304

 

 

BALANCE SHEET

 

 

NIPPON ELECTRIC GLASS (MALAYSIA) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

1,507,483,575

1,652,264,442

1,671,094,058

870,264,289

1,018,325,764

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

1,507,483,575

1,652,264,442

1,671,094,058

870,264,289

1,018,325,764

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

-

281,372,429

224,566,704

158,225,354

255,539,018

Trade debtors

-

109,583,274

123,100,300

108,346,831

82,659,664

Other debtors, deposits & prepayments

-

3,685,979

1,307,752

1,199,031

3,079,814

Short term deposits

-

1,100,000

1,100,000

69,975,000

65,100,000

Short term loans & advances

-

42,579,765

45,429,310

34,702,190

-

Amount due from related companies

-

42,559,268

14,127,567

12,610,645

72,343,874

Cash & bank balances

-

40,427,832

118,958,711

140,793,586

91,504,229

Others

-

434,948

375,375

1,255,380

46,612,815

 

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

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

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

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

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

TOTAL CURRENT ASSETS

445,279,280

521,743,495

528,965,719

527,108,017

616,839,414

 

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

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

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

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

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

TOTAL ASSET

1,952,762,855

2,174,007,937

2,200,059,777

1,397,372,306

1,635,165,178

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

71,322,472

76,026,321

63,253,660

89,918,237

Other creditors & accruals

-

14,673,404

43,782,739

15,071,230

16,897,617

Short term borrowings/Term loans

-

41,218,760

38,496,480

37,494,600

39,653,900

Other borrowings

-

37,553,060

35,072,880

-

-

Amounts owing to holding company

-

57,733,895

115,995,850

-

-

Other liabilities

-

-

-

98,096,388

81,512,801

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

276,068,555

222,501,591

309,374,270

213,915,878

227,982,555

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

169,210,725

299,241,904

219,591,449

313,192,139

388,856,859

 

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

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

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

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

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

TOTAL NET ASSETS

1,676,694,300

1,951,506,346

1,890,685,507

1,183,456,428

1,407,182,623

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

1,303,574,600

1,303,574,600

1,140,385,500

358,800,000

358,800,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

1,303,574,600

1,303,574,600

1,140,385,500

358,800,000

358,800,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

161,558,801

317,151,003

489,719,417

499,556,037

632,703,990

Others

-

-

-

-

4,826,621

 

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

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

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

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

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

TOTAL RESERVES

161,558,801

317,151,003

489,719,417

499,556,037

637,530,611

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,465,133,401

1,620,725,603

1,630,104,917

858,356,037

996,330,611

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

-

103,046,900

134,737,680

168,725,700

213,456,100

Retirement benefits provision

-

3,515,193

3,087,830

2,654,241

2,923,062

Others

-

224,218,650

122,755,080

153,720,450

194,472,850

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

211,560,899

330,780,743

260,580,590

325,100,391

410,852,012

 

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

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

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

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

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

 

1,676,694,300

1,951,506,346

1,890,685,507

1,183,456,428

1,407,182,623

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

NIPPON ELECTRIC GLASS (MALAYSIA) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

-

41,527,832

120,058,711

210,768,586

156,604,229

Net Liquid Funds

-

41,527,832

120,058,711

210,768,586

156,604,229

Net Liquid Assets

169,210,725

17,869,475

<4,975,255>

154,966,785

133,317,841

Net Current Assets/(Liabilities)

169,210,725

299,241,904

219,591,449

313,192,139

388,856,859

Net Tangible Assets

1,676,694,300

1,951,506,346

1,890,685,507

1,183,456,428

1,407,182,623

Net Monetary Assets

<42,350,174>

<312,911,268>

<265,555,845>

<170,133,606>

<277,534,171>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

-

181,818,720

208,307,040

206,220,300

253,110,000

Total Liabilities

487,629,454

553,282,334

569,954,860

539,016,269

638,834,567

Total Assets

1,952,762,855

2,174,007,937

2,200,059,777

1,397,372,306

1,635,165,178

Net Assets

1,676,694,300

1,951,506,346

1,890,685,507

1,183,456,428

1,407,182,623

Net Assets Backing

1,465,133,401

1,620,725,603

1,630,104,917

858,356,037

996,330,611

Shareholders' Funds

1,465,133,401

1,620,725,603

1,630,104,917

858,356,037

996,330,611

Total Share Capital

1,303,574,600

1,303,574,600

1,140,385,500

358,800,000

358,800,000

Total Reserves

161,558,801

317,151,003

489,719,417

499,556,037

637,530,611

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

-

0.19

0.39

0.99

0.69

Liquid Ratio

-

1.08

0.98

1.72

1.58

Current Ratio

1.61

2.34

1.71

2.46

2.71

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

-

85

81

85

84

Debtors Ratio

-

33

44

58

27

Creditors Ratio

-

22

32

32

30

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

-

0.11

0.13

0.24

0.25

Liabilities Ratio

0.33

0.34

0.35

0.63

0.64

Times Interest Earned Ratio

-

<15.79>

0.10

<8.32>

<12.64>

Assets Backing Ratio

1.29

1.50

1.66

3.30

3.92

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

<12.90>

<14.34>

<0.97>

<19.54>

<17.43>

Net Profit Margin

<12.90>

<14.34>

<0.97>

<19.54>

<17.43>

Return On Net Assets

<9.28>

<8.32>

0.06

<10.04>

<12.75>

Return On Capital Employed

<9.28>

<8.32>

0.06

<10.04>

<12.75>

Return On Shareholders' Funds/Equity

<10.62>

<10.65>

<0.60>

<15.51>

<19.43>

Dividend Pay Out Ratio (Times)

-

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

-

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.58.41

UK Pound

1

Rs.91.62

Euro

1

Rs.78.12

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.