|
* Adopted abbreviations :
|
SC - Subject Company (the company
enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
179832-D
|
|
COMPANY NAME
|
:
|
NOVA LABORATORIES SDN. BHD.
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
17/03/1989
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED (LIMITED BY SHARE)
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
22, JALAN DATO SHEIKH AHMAD, GROUND FLOOR,
70000 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
LOT 708, NOVA AVENUE, 4TH MILE, 43950
SUNGAI PELEK, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-31411115
|
|
FAX.NO.
|
:
|
03-31411661
|
|
EMAIL
|
:
|
MAIL@NOVA.COM.MY
|
|
WEB SITE
|
:
|
WWW.NOVA.COM.MY
|
|
CONTACT PERSON
|
:
|
PHANG NYIE LIN ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
21001
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURING OF VETERINARY,HERBAL PRODUCTS AND PROVIDING CONTRACT
FOR MANUFACTURING DRUG DEVELOPMENT SERVICES
|
|
AUTHORISED CAPITAL
|
:
|
MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 935,000.00 DIVIDED INTO
ORDINARY SHARES 300,000 CASH AND 635,000 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 13,488,568 [2011]
|
|
NET WORTH
|
:
|
MYR 10,337,407 [2011]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
50 [2013]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STRONG
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
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 veterinary,herbal products and providing contract
for manufacturing drug development services.
The SC is not listed on Bursa Malaysia
(Malaysia Stock Exchange).
The major
shareholder(s) of the SC are shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
MR. PHANG NYIE LIN +
|
LOT 708, NOVA AVENUE, 4TH MILE, 43950
SUNGAI PELEK, SELANGOR, MALAYSIA.
|
550314-10-5355 8176589
|
520,325.00
|
55.65
|
|
MS. TAN SOK MOOI +
|
LOT 708, NOVA AVENUE, 4TH MILE, SUNGAI
PELEK, 43950 SUNGAI PELEK, SELANGOR, MALAYSIA.
|
550520-10-6316 8182841
|
414,675.00
|
44.35
|
|
|
|
|
---------------
|
------
|
|
|
|
|
935,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. TAN KIAT YIH
|
|
Address
|
:
|
57, JALAN BESAR, 43950 SUNGAI PELEK,
SELANGOR, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
781111-10-5759
|
|
Date of Birth
|
:
|
11/11/1978
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
16/03/2002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MS. TAN SIOK HUN
|
|
Address
|
:
|
191, KAMPUNG BARU, 43950 SUNGAI PELEK,
SELANGOR, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
610724-10-6408
|
|
Date of Birth
|
:
|
24/07/1961
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
16/03/2002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MS. TAN SOK MOOI
|
|
Address
|
:
|
LOT 708, NOVA AVENUE, 4TH MILE, SUNGAI
PELEK, 43950 SUNGAI PELEK, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
8182841
|
|
New IC No
|
:
|
550520-10-6316
|
|
Date of Birth
|
:
|
20/05/1955
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
06/02/1996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. PHANG NYIE LIN
|
|
Address
|
:
|
LOT 708, NOVA AVENUE, 4TH MILE, 43950
SUNGAI PELEK, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
8176589
|
|
New IC No
|
:
|
550314-10-5355
|
|
Date of Birth
|
:
|
14/03/1955
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
17/03/1989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
PHANG NYIE LIN
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
POK LEE PENG
|
|
|
Position
|
:
|
FINANCE DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
LEW POW ONN & CO.
|
|
Auditor' Address
|
:
|
21 & 22, JALAN DATO' SHEIKH AHMAD,
2ND FLOOR, 70000 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. GAN SUN HAI
|
|
|
IC / PP No
|
:
|
8154214
|
|
|
New IC No
|
:
|
541225-01-5425
|
|
|
Address
|
:
|
76, JALAN 7/105, TAMAN MIDAH, CHERAS,
56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. LEONG WAI TENG
|
|
|
IC / PP No
|
:
|
7208564
|
|
|
New IC No
|
:
|
640203-05-5032
|
|
|
Address
|
:
|
35, JALAN DR. KRISHNAN, 70000 SEREMBAN,
NEGERI SEMBILAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
PUBLIC BANK BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with
above mentioned banker(s). The SC has bank charges with above mentioned
banker(s).
|
ENCUMBRANCE
(S)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
12/04/2002
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
MYR250,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
PUBLIC BANK BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 3 In The Register
of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
04/01/2006
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM2,500,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
PUBLIC BANK BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 4 In The Register
of Charges
|
LEGAL
CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the subject
has been involved in any litigation. Our databank consists of 99% of the
wound up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER
CHECK AGAINST SC
* We have checked through the SC in our defaulters' database which comprised
of debtors that have been blacklisted by our customers and debtors that have
been placed or assigned to us for collection since 1990. Information was
provided by third party where the debt amount can be disputed. Please check
with creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT
RECORD
|
|
|
|
SOURCES OF RAW MATERIALS:
|
|
Local
|
:
|
YES
|
|
Overseas
|
:
|
YES
|
|
|
|
|
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
|
Percentage
|
:
|
40%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Export Market
|
:
|
INDONESIA
PAKISTAN
AUSTRALIA
CHINA
BANGLADESH
MYANMAR
|
|
Credit Term
|
:
|
30 - 90 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
LETTER OF CREDIT (LC)
TELEGRAPHIC TRANSFER (TT)
|
|
Type of Customer
|
:
|
HOSPITALS,CLINICS,VETERINARY CLINIC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
HUMAN AND VETERINARY PHARMACEUTICALS
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
SMALL & MEDIUM ENTERPRISE
MALAYSIA EXTERNAL TRADE DEVELOPMENT
CORPORATION (MATRADE)
|
|
|
|
|
|
Ownership of premises
|
:
|
OWNED
|
|
Factory Size
|
:
|
5.5 ACRE
|
|
Shifts
|
:
|
2
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2013
|
2011
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
COMPANY
|
50
|
50
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of
veterinary,herbal products and providing contract for manufacturing drug
development services.
The SC produces both herbal and non-herbal based human and veterinary
pharmaceuticals as follows:
1) Human Pharmaceuticals
* Hepar-P capsule - [Traditionally used as liver tonic]
* Androtec coated tablet
* Ginkgo coated tablet
* Cordycep capsule
* Dong Quai Comp capsule
* Zingirex tablet
2) Vetetinary Pharmaceuticals
* Injection Preparations
* Oral Liquids
* Water Soluble Powders
* Oral Dosers
* Disinfectants & Antiseptics
* Herbal Products
Besides that the SC also manufactures a complete range of softgel products
namely:
* Nova Fish Oil Softgel
* Nova EPO Softgel
* Nova Natura Vitamin E 200 iu Softgel
* Nova Natura Vitamin E 400 iu Softgel
* Nova Neurogel DHA Softgel
The SC's broad product line includes vitamins, antibiotic, respiratory and
bacterial medications, antipyretic, analgesic and anti-inflammatory agents.
The SC produces its pharmaceuticals products in capsule, caplet, tablet,
powder, liquid and coated tablet forms.
We were informed that the SC is also engaged in the research and development
of useful thera-peutic agents derived from its indigenous medicinal plants
for the treatment of Hepatitis B Virus infections, Atherosclerosis and other
diseases.
The SC's manufacturing plant is equipped with state-of-the-art herbal
extraction machinery for the production of standardized herbal extracts. The
setup of this first herbal extraction and manufacturing factory in Malaysia
is in line with the Government's policy in promoting herbal biotechnology in
this region.
The SC's factory has obtained the GMP approval by its Drug Control Authority
of Ministry of Health (BPFK) for the manufacture of herbal pharmaceuticals
and veterinary pharmaceuticals.
PROJECTS
No projects found in our databank
CURRENT
INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
0331411115
|
|
Current Telephone Number
|
:
|
03-31411115
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
LOT 708, NOVA AVENUE, 4TH MILE, 43950
SUNGAI PELEK SEPANG SELANGOR
|
|
Current Address
|
:
|
LOT 708, NOVA AVENUE, 4TH MILE, 43950
SUNGAI PELEK, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the staff from the SC and she provided some information on
the SC.
FINANCIAL
ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Increased
|
[
|
2007 - 2011
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2007 - 2011
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Favourable
|
[
|
66.74%
|
]
|
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
65.38%
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's turnover increased steadily as
the demand for its products / services increased due to the goodwill built up
over the years.The higher profit could be attributed to the increase in
turnover. Generally the SC was profitable. The favourable return on
shareholders' funds and return on net assets indicate that the SC's
management was efficient in utilising the assets to generate returns.
|
|
|
|
|
|
|
|
|
|
Working Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Favourable
|
[
|
25 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Unfavourable
|
[
|
99 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
29 Days
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's stocks were moving fast thus
reducing its holding cost. This had reduced funds being tied up in stocks.
The SC's debtors ratio was high. The SC should tighten its credit control and
improve its collection period. 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
|
:
|
Favourable
|
[
|
9.70 Times
|
]
|
|
|
Current Ratio
|
:
|
Favourable
|
[
|
10.58 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
A minimum liquid ratio of 1 should be
maintained by the SC in order to assure its creditors of its ability to
meet short term obligations and the SC was in a good liquidity position.
Thus, we believe the SC is able to meet all its short term obligations as
and when they fall due.
|
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Favourable
|
[
|
96.93 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 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 had no gearing and hence it had virtually no financial risk. The SC was
financed by its shareholders' funds and internally generated fund. During
the economic downturn, the SC, having a zero gearing, will be able to
compete better than those which are highly geared in the same industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
Generally, the SC's performance has
improved with higher 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. With the favourable interest cover, the SC could be
able to service all the accrued interest without facing any difficulties.
The SC was a zero gearing company, it was solely dependant on its
shareholders to provide funds to finance its business. The SC has good
chance of getting loans, if the needs arises.
|
|
|
|
|
|
|
|
|
|
Overall financial condition of the SC :
STRONG
|
MALAYSIA
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2008
|
2009
|
2010
|
2011*
|
2012**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
27.73
|
28.13
|
28.35
|
28.70
|
29.10
|
|
Gross Domestic Products ( % )
|
4.6
|
<0.5>
|
7.2
|
5.5
|
5.3
|
|
Domestic Demand ( % )
|
6.9
|
2.9
|
6.3
|
4.8
|
7.6
|
|
Private Expenditure ( % )
|
7.1
|
<2.7>
|
8.1
|
7.0
|
8.7
|
|
Consumption ( % )
|
8.4
|
0.7
|
6.7
|
6.3
|
7.1
|
|
Investment ( % )
|
1.5
|
<17.2>
|
17.7
|
16.2
|
15.9
|
|
Public Expenditure ( % )
|
6.5
|
5.2
|
3.8
|
7.6
|
4.7
|
|
Consumption ( % )
|
11.6
|
3.1
|
0.2
|
8.9
|
3.0
|
|
Investment ( % )
|
0.7
|
8.0
|
2.8
|
0.6
|
7.0
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
129,563
|
89,650
|
118,356
|
116,058
|
-
|
|
Government Finance ( MYR Million )
|
<34,462>
|
<28,450>
|
<40,482>
|
<45,511>
|
<43,021>
|
|
Government Finance to GDP / Fiscal
Deficit ( % )
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
<4.7>
|
|
Inflation ( % Change in Composite CPI)
|
<3.3>
|
<5.2>
|
5.1
|
3.1
|
-
|
|
Unemployment Rate
|
3.7
|
4.5
|
3.9
|
3.3
|
-
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion
)
|
388
|
331
|
329
|
415
|
-
|
|
Average Risk-Weighted Capital Adequacy
Ratio ( % )
|
1.91
|
2.87
|
2.20
|
3.50
|
-
|
|
Average 3 Months of Non-performing Loans
( % )
|
13.24
|
11.08
|
15.30
|
14.80
|
-
|
|
Average Base Lending Rate ( % )
|
6.72
|
5.53
|
6.30
|
6.60
|
-
|
|
Business Loans Disbursed( % )
|
11.6
|
10.5
|
14.7
|
15.3
|
-
|
|
Foreign Investment ( MYR Million )
|
23,261.4
|
22,156.8
|
22,517.9
|
23,546.1
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
41,599
|
41,578
|
44,148
|
-
|
-
|
|
Registration of New Companies ( % )
|
<4.0>
|
<0.1>
|
6.2
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
27,992
|
39,075
|
25,585
|
-
|
-
|
|
Liquidation of Companies ( % )
|
23.7
|
39.6
|
<34.5>
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
269,866
|
312,581
|
271,414
|
-
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
18,885
|
19,345
|
19,738
|
-
|
-
|
|
Business Dissolved ( % )
|
<7.6>
|
2.4
|
2.0
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
497.5
|
486.3
|
543.6
|
363.0
|
-
|
|
Cellular Phone Subscribers ( Million )
|
25.1
|
30.1
|
32.8
|
35.3
|
-
|
|
Tourist Arrival ( Million Persons )
|
21.5
|
23.6
|
24.6
|
25.3
|
-
|
|
Hotel Occupancy Rate ( % )
|
68.0
|
58.0
|
63.0
|
51.3
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
17.1
|
12.8
|
14.1
|
15.6
|
-
|
|
Bad Cheque Offenders (No.)
|
34,834
|
36,667
|
33,568
|
27,208
|
-
|
|
Individual Bankruptcy ( No.)
|
13,907
|
16,228
|
18,119
|
16,155
|
-
|
|
Individual Bankruptcy ( % )
|
5.1
|
16.7
|
11.7
|
<10.8>
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2008
|
2009
|
2010
|
2011*
|
2012**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.6
|
0.4
|
2.1
|
4.7
|
4.1
|
|
Palm Oil
|
7.0
|
<1.1>
|
<3.4>
|
7.3
|
-
|
|
Rubber
|
<1.1>
|
<19.8>
|
9.9
|
6.4
|
-
|
|
Forestry & Logging
|
<1.5>
|
<5.9>
|
<3.3>
|
<4.7>
|
-
|
|
Fishing
|
4.0
|
5.5
|
5.6
|
2.8
|
-
|
|
Other Agriculture
|
5.9
|
9.0
|
7.9
|
8.5
|
-
|
|
Industry Non-Performing Loans ( MYR
Million )
|
393.0
|
413.7
|
508.4
|
634.1
|
-
|
|
% of Industry Non-Performing Loans
|
<2.0>
|
1.3
|
2.1
|
3.2
|
-
|
|
|
|
|
|
|
|
|
Mining
|
<0.8>
|
<3.8>
|
0.2
|
<2.4>
|
2.5
|
|
Oil & Gas
|
12.7
|
2.1
|
0.5
|
<1.7>
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR
Million )
|
36.0
|
44.2
|
49.7
|
46.5
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
1.3
|
<9.4>
|
11.4
|
5.6
|
4.5
|
|
Exported-oriented Industries
|
2.7
|
<19.0>
|
12.1
|
2.8
|
-
|
|
Electrical & Electronics
|
2.4
|
<30.3>
|
28.4
|
<4.9>
|
-
|
|
Rubber Products
|
4.2
|
<10.1>
|
25.3
|
15.4
|
-
|
|
Wood Products
|
<6.0>
|
<24.1>
|
20.1
|
<7.3>
|
-
|
|
Textiles & Apparel
|
1.9
|
<19.5>
|
<0.4>
|
14.8
|
-
|
|
Domestic-oriented Industries
|
9.9
|
<9.8>
|
16.3
|
6.3
|
-
|
|
Food, Beverages & Tobacco
|
9.5
|
0.2
|
3.0
|
4.2
|
-
|
|
Chemical & Chemical Products
|
1.4
|
<7.7>
|
16.2
|
5.6
|
-
|
|
Plastic Products
|
6.5
|
<9.1>
|
2.4
|
3.8
|
-
|
|
Iron & Steel
|
16.8
|
<32.7>
|
29.3
|
2.4
|
-
|
|
Fabricated Metal Products
|
14.7
|
<2.5>
|
14.9
|
25.2
|
-
|
|
Non-metallic Mineral
|
8.3
|
<15.5>
|
20.2
|
16.3
|
-
|
|
Transport Equipment
|
27.1
|
<13.5>
|
36.5
|
<9.4>
|
-
|
|
Paper & Paper Products
|
8.6
|
<5.0>
|
18.7
|
15.6
|
-
|
|
Crude Oil Refineries
|
7.8
|
0.2
|
<11.4>
|
9.3
|
-
|
|
Industry Non-Performing Loans ( MYR
Million )
|
5,729.4
|
6,007.3
|
6,217.5
|
6,537.2
|
-
|
|
% of Industry Non-Performing Loans
|
16.8
|
18.3
|
23.8
|
25.7
|
-
|
|
|
|
|
|
|
|
|
Construction
|
2.1
|
5.8
|
5.1
|
4.4
|
7.0
|
|
Industry Non-Performing Loans ( MYR
Million )
|
4,149.8
|
3,241.8
|
4,038.5
|
3,856.9
|
-
|
|
% of Industry Non-Performing Loans
|
12.2
|
9.9
|
10.7
|
10.2
|
-
|
|
|
|
|
|
|
|
|
Services
|
7.3
|
2.6
|
6.5
|
6.4
|
6.5
|
|
Electric, Gas & Water
|
5.0
|
0.4
|
8.5
|
5.6
|
4.8
|
|
Transport, Storage & Communication
|
7.8
|
1.6
|
7.7
|
6.5
|
7.3
|
|
Wholesale, Retail, Hotel & Restaurant
|
10.0
|
2.8
|
4.7
|
5.2
|
6.9
|
|
Finance, Insurance & Real Estate
|
9.2
|
3.8
|
6.1
|
6.3
|
6.5
|
|
Government Services
|
8.6
|
2.0
|
6.7
|
7.6
|
5.6
|
|
Other Services
|
5.9
|
4.4
|
4.2
|
5.4
|
5.7
|
|
Industry Non-Performing Loans ( MYR
Million )
|
8,281.4
|
6,631.3
|
7,384.6
|
6,825.2
|
-
|
|
% of Industry Non-Performing Loans
|
24.3
|
20.2
|
25.7
|
23.4
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
|
|
|
|
|
|
|
INDUSTRY
ANALYSIS
|
MSIC CODE
|
|
21001 : Manufacture of medicinal active
substances to be used for their pharmacological properties in the
manufacture of medicaments
|
|
|
|
|
INDUSTRY :
|
TRADING
|
|
|
|
|
|
|
The wholesale and retail trade sector grew 7.1% in the first half of the
year 2011 supported by strong consumer spending amid favourable labour
market conditions and sustained disposable income. This was reflected in the
higher distributive trade index which increased 15.9%, with wholesale and
retail trade indices increasing 19.2% and 7.8%, respectively.
|
|
It is anticipated that the retail industry will grow 6.0 per cent in the
year 2012.
|
|
Malaysia's retail sector for 2011 is expected to grow 6 per cent or RM81.59
billion worth of retail sales, similar to the year 2010, due to concerns of
high oil prices, declining purchasing power and high cost of doing
business. The Middle East and North Africa civil wars have caused the world
oil prices to climb. This has led to further rise in the cost of running
retail businesses, especially in terms of transportation cost. Many
retailers have no choice but to pass the increased cost to end consumers.
At the same time, natural disasters (tsunamis, floods, droughts, snow
storms, tornadoes and earthquakes) that occurred in all parts of the world
has also led to a shortage in the supply of food and raw materials. The
phenomenon has pushed retail prices up.In addition, the continual removal
of government subsidies since 2010 has pushed inflation upwards.
Consequently, rising prices of retail goods contributed to an expectation
of moderate performance.
|
|
During the first seven months of 2011, other consumption indicators such as
imports of consumption goods and credit card spending increased 12.8% and
11.8%, respectively. Sales of motor vehicles declined 3% on account of
supply chain disruptions following devastating March 2011 earthquake and
tsunami in Japan.
|
|
Growth of the sector is anticipated to remain encouraging with ongoing
efforts by the Government to increase its contribution to the economy.
Major initiatives include increasing the number of large format stores such
as hypermarkets, superstores and departmental stores are carried out to
boost the economy.
|
|
Meanwhile, the Government has introduced the Retail Shop Transformation
(TUKAR) programme. Under this programme, selected large format retailers
will assist small retailers to improve their premises and layout which
include attractive product display shelves, enhanced lighting and
point-of-sales system to manage product inventory,
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
CREDIT RISK EVALUATION & RECOMMENDATION
|
Incorporated in 1989, the SC is a Private Limited company, focusing on
manufacturing of veterinary,herbal products and providing contract for
manufacturing drug development services. 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
considered as medium size company with paid up capital stand at RM935,000.
We considered the SC's business position much depends on its director
ability.
|
|
Over the years, the SC has established an extensive clientele base in the
market. Besides catering to the local market, the SC has penetrated into
other countries. With the contribution of both local and overseas
customers, the SC is likely to be exposed to lower commercial risk. Hence,
we believe that the SC has better business expansion opportunities in the
future. The SC is operating on a medium scale and it has approximately 50
employees in its business operations. 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.
|
|
We noted that both the turnover and profits have increased compared to the
previous year. The higher profit could be due to increase in turnover and
better control over its operating costs. Based on the higher profitability,
the SC has generated a favourable return based on its existing
shareholders' funds which indicated that the management was efficient in
utilising its funds to generate income. The SC is in good liquidity
position with its current liabilities well covered by it current assets.
Hence, it has sufficient working capital to meet its short term financial
obligations. Being a zero geared company, the SC virtually has no financial
risk as it is mainly dependent on its internal funds to finance its
business. Given a positive net worth standing at MYR 10,337,407, the SC
should be able to maintain its business in the near terms.
|
|
Having a strong assets backing, the SC possesses latent assets as
collateral for further financial extension. Hence, it has good chance of
getting loans if the needs arises. The SC's supplier are from both the
local and overseas countries. This will eliminates the risk of dependency
on deliveries from a number of key suppliers and insufficient quantities of
its raw materials. Overall the SC has a good control over its resources.
|
|
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.
|
|
In view of the above favourable condition, we recommend credit be proceeded
to the SC with favourable term.
|
PROFIT
AND LOSS ACCOUNT
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN
FINANCIAL REPORTING STANDARDS(FRS)
|
|
NOVA LABORATORIES SDN. BHD.
|
|
Financial Year End
|
30/06/2011
|
30/06/2010
|
30/06/2009
|
30/06/2008
|
30/06/2007
|
|
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
|
13,488,568
|
10,168,784
|
8,595,291
|
6,676,593
|
6,565,475
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
13,488,568
|
10,168,784
|
8,595,291
|
6,676,593
|
6,565,475
|
|
Costs of Goods Sold
|
<4,984,697>
|
<4,121,943>
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
8,503,871
|
6,046,841
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
6,893,193
|
4,310,445
|
3,482,521
|
1,720,992
|
315,780
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
6,893,193
|
4,310,445
|
3,482,521
|
1,720,992
|
315,780
|
|
Taxation
|
6,217
|
<19,692>
|
<80,214>
|
<23,050>
|
<87,487>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
6,899,410
|
4,290,753
|
3,402,307
|
1,697,942
|
228,293
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As previously reported
|
6,598,297
|
6,061,569
|
2,659,262
|
961,320
|
733,027
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
6,598,297
|
6,061,569
|
2,659,262
|
961,320
|
733,027
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
13,497,707
|
10,352,322
|
6,061,569
|
2,659,262
|
961,320
|
|
DIVIDENDS - Ordinary (paid &
proposed)
|
<4,095,300>
|
<3,754,025>
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
9,402,407
|
6,598,297
|
6,061,569
|
2,659,262
|
961,320
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to
P&L)
|
|
|
|
|
|
|
Bank overdraft
|
-
|
-
|
5,197
|
25,250
|
51,517
|
|
Hire purchase
|
-
|
-
|
1,863
|
1,676
|
12,148
|
|
Term loan / Borrowing
|
-
|
-
|
111,303
|
146,087
|
142,950
|
|
Others
|
71,860
|
106,594
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
71,860
|
106,594
|
118,363
|
173,013
|
206,615
|
BALANCE
SHEET
|
NOVA LABORATORIES SDN. BHD.
|
|
ASSETS EMPLOYED:
|
|
|
|
|
|
|
FIXED ASSETS
|
4,121,930
|
4,575,633
|
4,920,889
|
4,839,208
|
4,838,959
|
|
|
|
|
|
|
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
Development properties/expenditure
|
448,972
|
844,389
|
381,704
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
448,972
|
844,389
|
381,704
|
-
|
-
|
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS
|
|
|
|
|
|
|
Deferred/Expenditure carried forward
|
767,883
|
6,944
|
-
|
-
|
-
|
|
Own goodwill
|
-
|
-
|
7,576
|
8,207
|
8,838
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL INTANGIBLE ASSETS
|
767,883
|
6,944
|
7,576
|
8,207
|
8,838
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
5,338,785
|
5,426,966
|
5,310,169
|
4,847,415
|
4,847,797
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
Stocks
|
485,241
|
404,862
|
409,581
|
387,217
|
395,124
|
|
Trade debtors
|
3,647,025
|
3,040,788
|
3,155,196
|
2,702,800
|
2,547,355
|
|
Other debtors, deposits & prepayments
|
299,009
|
176,899
|
153,770
|
182,112
|
111,953
|
|
Short term deposits
|
408,429
|
706,672
|
-
|
-
|
-
|
|
Cash & bank balances
|
1,028,845
|
302,643
|
1,105,303
|
72,895
|
100,540
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
5,868,549
|
4,631,864
|
4,823,850
|
3,345,024
|
3,154,972
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
11,207,334
|
10,058,830
|
10,134,019
|
8,192,439
|
8,002,769
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Trade creditors
|
391,230
|
475,698
|
512,887
|
621,396
|
932,967
|
|
Other creditors & accruals
|
133,378
|
134,499
|
432,329
|
1,304,958
|
1,901,186
|
|
Hire purchase & lease creditors
|
-
|
7,114
|
27,391
|
-
|
113,122
|
|
Bank overdraft
|
-
|
-
|
-
|
375,830
|
671,382
|
|
Short term borrowings/Term loans
|
24,924
|
295,776
|
322,668
|
322,668
|
315,492
|
|
Amounts owing to director
|
-
|
-
|
-
|
-
|
287,237
|
|
Provision for taxation
|
5,206
|
2,748
|
-
|
-
|
41,453
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
554,738
|
915,835
|
1,295,275
|
2,624,852
|
4,262,839
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
5,313,811
|
3,716,029
|
3,528,575
|
720,172
|
<1,107,867>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
10,652,596
|
9,142,995
|
8,838,744
|
5,567,587
|
3,739,930
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
|
Ordinary share capital
|
935,000
|
935,000
|
935,000
|
935,000
|
650,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
935,000
|
935,000
|
935,000
|
935,000
|
650,000
|
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
Retained profit/(loss) carried forward
|
9,402,407
|
6,598,297
|
6,061,569
|
2,659,262
|
961,320
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
9,402,407
|
6,598,297
|
6,061,569
|
2,659,262
|
961,320
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
10,337,407
|
7,533,297
|
6,996,569
|
3,594,262
|
1,611,320
|
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES
|
|
|
|
|
|
|
Long term loans
|
16,459
|
1,299,546
|
1,548,966
|
1,760,331
|
1,938,665
|
|
Deferred taxation
|
298,730
|
310,152
|
293,209
|
212,994
|
189,945
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
315,189
|
1,609,698
|
1,842,175
|
1,973,325
|
2,128,610
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
10,652,596
|
9,142,995
|
8,838,744
|
5,567,587
|
3,739,930
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
FINANCIAL
RATIO
|
NOVA LABORATORIES SDN. BHD.
|
|
TYPES OF FUNDS
|
|
|
|
|
|
|
Cash
|
1,437,274
|
1,009,315
|
1,105,303
|
72,895
|
100,540
|
|
Net Liquid Funds
|
1,437,274
|
1,009,315
|
1,105,303
|
<302,935>
|
<570,842>
|
|
Net Liquid Assets
|
4,828,570
|
3,311,167
|
3,118,994
|
332,955
|
<1,502,991>
|
|
Net Current Assets/(Liabilities)
|
5,313,811
|
3,716,029
|
3,528,575
|
720,172
|
<1,107,867>
|
|
Net Tangible Assets
|
9,884,713
|
9,136,051
|
8,831,168
|
5,559,380
|
3,731,092
|
|
Net Monetary Assets
|
4,513,381
|
1,701,469
|
1,276,819
|
<1,640,370>
|
<3,631,601>
|
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
|
Total Borrowings
|
41,383
|
1,602,436
|
1,899,025
|
2,458,829
|
3,038,661
|
|
Total Liabilities
|
869,927
|
2,525,533
|
3,137,450
|
4,598,177
|
6,391,449
|
|
Total Assets
|
11,207,334
|
10,058,830
|
10,134,019
|
8,192,439
|
8,002,769
|
|
Net Assets
|
10,652,596
|
9,142,995
|
8,838,744
|
5,567,587
|
3,739,930
|
|
Net Assets Backing
|
10,337,407
|
7,533,297
|
6,996,569
|
3,594,262
|
1,611,320
|
|
Shareholders' Funds
|
10,337,407
|
7,533,297
|
6,996,569
|
3,594,262
|
1,611,320
|
|
Total Share Capital
|
935,000
|
935,000
|
935,000
|
935,000
|
650,000
|
|
Total Reserves
|
9,402,407
|
6,598,297
|
6,061,569
|
2,659,262
|
961,320
|
|
|
|
|
|
|
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
|
Cash Ratio
|
2.59
|
1.10
|
0.85
|
0.03
|
0.02
|
|
Liquid Ratio
|
9.70
|
4.62
|
3.41
|
1.13
|
0.65
|
|
Current Ratio
|
10.58
|
5.06
|
3.72
|
1.27
|
0.74
|
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Stock Ratio
|
25
|
45
|
34
|
21
|
22
|
|
Debtors Ratio
|
99
|
109
|
134
|
148
|
142
|
|
Creditors Ratio
|
29
|
42
|
22
|
34
|
52
|
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
|
Gearing Ratio
|
0.00
|
0.21
|
0.27
|
0.68
|
1.89
|
|
Liabilities Ratio
|
0.08
|
0.34
|
0.45
|
1.28
|
3.97
|
|
Times Interest Earned Ratio
|
96.93
|
41.44
|
30.42
|
10.95
|
2.53
|
|
Assets Backing Ratio
|
10.57
|
9.77
|
9.45
|
5.95
|
3.99
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
|
Operating Profit Margin
|
51.10
|
42.39
|
40.52
|
25.78
|
4.81
|
|
Net Profit Margin
|
51.15
|
42.20
|
39.58
|
25.43
|
3.48
|
|
Return On Net Assets
|
65.38
|
48.31
|
40.74
|
34.02
|
13.97
|
|
Return On Capital Employed
|
60.99
|
48.24
|
40.58
|
31.82
|
11.52
|
|
Return On Shareholders' Funds/Equity
|
66.74
|
56.96
|
48.63
|
47.24
|
14.17
|
|
Dividend Pay Out Ratio (Times)
|
0.59
|
0.87
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|