|
* Adopted abbreviations : SC
- Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
781769-K
|
|
COMPANY NAME
|
:
|
RECRON (MALAYSIA) SDN BHD
|
|
FORMER NAME
|
:
|
REAL AIM DEVELOPMENT SDN BHD (20/08/2007)
|
|
INCORPORATION DATE
|
:
|
20/07/2007
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
SUITE 7.01-7.03, WISMA GOLDHILL, 67 JALAN RAJA
CHULAN, LEVEL 7, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
WISMA GOLDHILL, LEVEL 8 & 9, , 67, JALAN RAJA
CHULAN, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-20316000
|
|
FAX.NO.
|
:
|
03-20315000
|
|
WEB SITE
|
:
|
www.recronmalaysia.com
|
|
CONTACT PERSON
|
:
|
JUTTI CHANDRA SURESH ( CEO )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
17299
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURE OF POLYESTER RESIN, FIBRE, YARN AND
FABRIC AND UNDERTAKING OF FABRICS BLEACHING, DYEING, PRINTING AND FINISHING
|
|
AUTHORISED CAPITAL
|
:
|
MYR 50,000,000.00 DIVIDED INTO
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 2,500,000.00 DIVIDED INTO
ORDINARY SHARES 2,500,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 3,807,050,000 [2011]
|
|
NET WORTH
|
:
|
MYR 950,650,000 [2011]
|
|
M1000 OVERALL RANKING
|
:
|
135[2011]
|
|
M1000 INDUSTRY RANKING
|
:
|
1[2011]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
7,500 [2012]
|
|
BANKER (S)
|
:
|
|
ICICI BANK LTD
MALAYAN BANKING BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
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) manufacture of polyester resin, fibre, yarn and fabric and
undertaking of fabrics bleaching, dyeing, printing and finishing.
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
|
|
|
|
OVERALL RANKING
|
135
|
|
|
|
INDUSTRY RANKING
|
1
|
|
|
The immediate holding company of the SC is
RELIANCE GLOBAL BUSINESS B V, a company incorporated in NETHERLANDS.
The ultimate holding company of the SC is
RELIANCE INDUSTRIES LIMITED, a company incorporated in INDIA.
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
RELIANCE GLOBAL BUSINESS B V
|
|
00213422
|
2,500,000.00
|
100.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
2,500,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. MAN MOHAN
|
|
Address
|
:
|
41, BAKHTAWAR ANNEXE, 22, NARAYAN DABHOLKAR
ROAD, MALABAR HILL, BOMBAY, 400 006, BOMBAY, INDIA.
|
|
IC / PP No
|
:
|
Z1777776
|
|
|
|
|
|
Date of Birth
|
:
|
10/07/1951
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
22/08/2007
|
|
Remark
|
:
|
OLD PP: F3673620
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. JAIN PRAVEEN KUMAR
|
|
Address
|
:
|
UNIT A-17-3, MONT KIARA MERIDIN, 19, JALAN DUTA
KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
Z1808929
|
|
|
|
|
|
Date of Birth
|
:
|
04/01/1964
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
22/08/2007
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. UDESHI RAJEN DWARKADAS
|
|
Address
|
:
|
502, SHANTI APARTMENT, 98, WALKESHWAR ROAD, 400
006, BOMBAY, INDIA.
|
|
IC / PP No
|
:
|
Z2175096
|
|
|
|
|
|
Date of Birth
|
:
|
31/01/1951
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
22/08/2007
|
|
Remark
|
:
|
OLD PP: G0600014
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. JUTTI CHANDRA SURESH
|
|
Address
|
:
|
10, JALAN 8/155A, BUKIT JALIL GOLF RESORT,
57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
Z1801030
|
|
|
|
|
|
Date of Birth
|
:
|
26/02/1948
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
24/03/2008
|
|
Remark
|
:
|
OLD PP: Z1584700
|
DIRECTOR 5
|
Name Of Subject
|
:
|
KULKARNI VINAY RAMCHANDRA
|
|
Address
|
:
|
2-2, PUTRI YKS CONDOMINIUM, 41, JALAN YAP KWAN
SENG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
P094648090
|
|
|
|
|
|
Date of Birth
|
:
|
02/04/1960
|
|
|
|
|
|
Nationality
|
:
|
BRITISH
|
|
Date of Appointment
|
:
|
26/04/2011
|
DIRECTOR 6
|
Name Of Subject
|
:
|
ANIL KUMAR RAJBANSHI
|
|
Address
|
:
|
A-402, CHAITANYA TOWERS, APPASAHAB MARATHE,
MARG, PRABHADEVI, 40002, MUMBAI, INDIA.
|
|
IC / PP No
|
:
|
Z1877333
|
|
|
|
|
|
Date of Birth
|
:
|
08/09/1956
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
05/02/2008
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
JUTTI CHANDRA SURESH
|
|
|
Position
|
:
|
CEO
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
LAM SOON HOCK
|
|
|
Position
|
:
|
ADMIN MANAGER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
YOONG YIEN PING
|
|
|
Position
|
:
|
ASSISTANT FINANCE MANAGER
|
|
|
|
|
|
|
4)
|
Name of Subject
|
:
|
SENGUPTA
|
|
|
Position
|
:
|
FINANCE MANAGER
|
|
|
|
|
|
|
5)
|
Name of Subject
|
:
|
AMIT DAMANI
|
|
|
Position
|
:
|
MARKETING MANAGER
|
|
|
|
|
|
|
6)
|
Name of Subject
|
:
|
WONG YEN CHI
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
|
7)
|
Name of Subject
|
:
|
KU CHOY HA
|
|
|
Position
|
:
|
PRODUCTION 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. CATHERINE MAH SUIK CHING
|
|
|
IC / PP No
|
:
|
5588928
|
|
|
New IC No
|
:
|
600421-10-6364
|
|
|
Address
|
:
|
19, JALAN BK 3/8D, BANDAR KINRARA, 47180
PUCHONG, SELANGOR, MALAYSIA.
|
|
2)
|
Company Secretary
|
:
|
MS. LEW NYOK KHIM
|
|
|
IC / PP No
|
:
|
5575209
|
|
|
New IC No
|
:
|
581121-08-5708
|
|
|
Address
|
:
|
2, LORONG SS3/59B, 47301 PETALING JAYA,
SELANGOR, MALAYSIA.
|
BANKING
Banking relations are maintained principally with :
|
2)
|
Name
|
:
|
MALAYAN BANKING 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
|
:
|
25/10/2010
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
USD25,000,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
ICICI BANK LTD
|
|
9, RAFFLES PLACE, 05-01, REPUBLIC PLAZA, 048619,
SINGAPORE.
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 03/11/2010
|
|
Registered and Numbered 1 In The Register of
Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
25/10/2010
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
USD1,250,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
ICICI BANK LTD
|
|
9, RAFFLES PLACE, 50-01, REPUBLIC PLAZA,
048619, SINGAPORE.
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 03/11/2010
|
|
Registered and Numbered 2 In The Register of
Charges
|
ENCUMBRANCE 3
|
Date of Creation
|
:
|
11/10/2011
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
USD30,000,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
MALAYAN BANKING BHD
|
|
MENARA MAYBANK, 100, JALAN TUN PERAK, 14TH
FLOOR, 50050 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 24/10/2011
|
|
Registered and Numbered 3 In The Register of
Charges
|
LEGAL
CHECK AGAINST SC
* A check has been conducted in our databank against the SC whether the
subject has been involved in any litigation. 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
|
Percentage
|
:
|
40%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Import Countries
|
:
|
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
|
[
|
|
]
|
|
Average 61-90 Days
|
[
|
X
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
10%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
90%
|
|
Export Market
|
:
|
SOUTHEAST ASIA, AFRICA, MIDDLE EAST,
UNITED STATES, EUROPE, TURKEY
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF
CREDIT (LC)
|
|
Type of Customer
|
:
|
TEXTILES AND GARMENT INDUSTRIES,RETAIL
|
OPERATIONS
|
Products manufactured
|
:
|
|
TEXTILES AND FIBRE PRODUCTS
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
EMAS KIARA INDUSTRIES BHD
|
|
FIBERTEX PERSONAL CARE SDN BHD
|
|
HUALON CORPORATION (M) SDN BHD
|
|
PCCS GROUP BHD
|
|
YEN GLOBAL BHD
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2012
|
2011
|
2010
|
2009
|
2008
|
|
|
|
%20SDN%20BHD%20-%20215026%2020-Mar-2013_files/image007.gif)
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
COMPANY
|
7,500
|
7,500
|
7,350
|
7,300
|
7,343
|
|
|
|
|
|
Branch
|
:
|
|
|
No of Branches
|
:
|
|
|
|
|
|
|
Branch(es)
|
:
|
|
LOT 2322, TANGGA BATU INDUSTRIAL ESTATE,
76400 TANJONG KLING, MELAKA, MALAYSIA.
|
|
Tel No: 06-3511190
|
|
Fax No: 06-3511176
|
|
|
|
PT 1886, 1891, 1892, 7927, 7928, KAWASAN
PERINDUSTRIAN NILAI, 71800 NILAI, NEGERI SEMBILAN, MALAYSIA.
|
|
Tel No: 06-7992855
|
|
Fax No: 06-7992872
|
|
|
|
|
|
|
|
Other
Information:
The SC is principally engaged in the (as a / as an) manufacture of polyester
resin, fibre, yarn and fabric and undertaking of fabrics bleaching, dyeing,
printing and finishing.
The SC is one of largest intergrated polyester and Textile Company with world
class manufacturing facilities at Nilai and Melaka in Malaysia.
The SC's products ranges are as follows:
1) Polyester Polymer Production
2) Nylon Polymer Production
3) Polyester Staple Fibre
4) Spun Yarns
5) Polyester Filament Yarns
6) PET bottle grade Resins
7) Fabrics
The SC produces annually over 500,000 tons of Polyester Products, 36,000 tons
of Nylon Products and 500 million meters of Fabrics.
The products are used for making ready made garments, home furnishings,
curtain materials and others.
The SC's vertically integrated production units have state of art machines
and equipment. Its biggest asset is its highly skilled and dedicated work
force.
PROJECTS
No projects found in our databank
RECENT
DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
CURRENT
INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
03-20316000
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
LEVEL 9, WISMA GOLDHILL 67 JALAN RAJA CHULAN
50200 KUALA LUMPUR
|
|
Current Address
|
:
|
WISMA GOLDHILL, LEVEL 8 & 9, , 67, JALAN
RAJA CHULAN, 50200 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 incomplete.
FINANCIAL
ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Increased
|
[
|
2008 - 2011
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2008 - 2011
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
3.79%
|
]
|
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
4.03%
|
]
|
|
|
|
|
|
|
|
|
|
|
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's profit fell sharply because of the high operating costs
incurred. The unfavourable return on shareholders' funds could indicate
that the SC was inefficient in utilising its assets to generate returns.
|
|
|
|
|
|
|
|
|
|
Working Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Favourable
|
[
|
45 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Favourable
|
[
|
13 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
11 Days
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's stocks were moving fast thus reducing
its holding cost. This had reduced funds being tied up in stocks. The
favourable debtors' days could be due to the good credit control measures implemented
by the SC. The SC had a favourable creditors' ratio as evidenced by its
favourable collection days. The SC could be taking advantage of the cash
discounts and also wanting to maintain goodwill with its creditors.
|
|
|
|
|
|
|
|
|
|
Liquidity
|
|
|
|
|
|
|
|
Liquid Ratio
|
:
|
Unfavourable
|
[
|
0.24 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.94 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
A low liquid ratio means that the SC may be facing
working capital deficiency. If the SC cannot obtain additional financing or
injection of fresh capital, it may face difficulties in meeting its short
term obligations.
|
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Acceptable
|
[
|
3.70 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Acceptable
|
[
|
0.89 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's interest cover was slightly low. If
there is no sharp fall in its profit or sudden increase in the interest rates,
we believe the SC is able to generate sufficient income to service its
interest and repay the loans. The SC's gearing was slightly high. The SC is
utilising the leverage concept to fund its expansion. However, the high
gearing has added financial risks to the SC. It will be more vulnerable in
times of economy downturn.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
Although the SC's turnover had increased, its profits
had declined over the same corresponding period. This could be due to the
stiffer market competition and / or higher operating costs which lowered
the SC's profit margin. Due to its weak liquidity position, the SC will be
faced with problems in meeting all its short term obligations if no short
term loan is obtained or additional capital injected into the SC. The SC
had an acceptable interest cover. If there is no sudden sharp increase in
interest rate or fall in the SC's profit, we do believe the SC is able to
generate sufficient cash flow to service its interest payment. The SC's
gearing was slightly high and its financial risk was also high. If no plans
are made to reduce its gearing, the SC's performance may deteriorate in the
coming year.
|
|
|
|
|
|
|
|
|
|
Overall financial condition of the SC : POOR
|
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
|
|
|
17299 :
Manufacture of other textiles n.e.c.
|
|
|
|
|
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
2007, the SC is a Private Limited company, focusing on manufacture of
polyester resin, fibre, yarn and fabric and undertaking of fabrics
bleaching, dyeing, printing and finishing. Having been in business for 5
years, the SC has established a remarkable clientele base for itself which
has contributed to its business growth. 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 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. Being a large entity, the SC has a steady workforce of 7,500
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.
|
|
Financially, the SC registered a higher turnover compared to previous year.
However, its profits showed a reverse trend. The lower profit achieved was a
result of higher operating cost and increased competition. The SC has
generated an unfavourable return on shareholders' funds indicating that the
management was inefficient in utilising its funds to generate return. Due
to its weak liquidity position, the SC may face working capital deficiency
in meeting its short term financial obligations if no fresh capital are
injected into the SC. The gearing level of the SC is slightly high,
therefore it faces moderate financial risk. Nevertheless, given a positive net
worth standing at MYR 950,650,000, 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.
|
|
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)
|
|
RECRON (MALAYSIA) SDN BHD
|
|
Financial Year End
|
31/12/2011
|
31/12/2010
|
31/12/2009
|
31/12/2008
|
|
Months
|
12
|
12
|
12
|
17
|
|
Consolidated Account
|
Company
|
Company
|
Company
|
Company
|
|
Audited Account
|
YES
|
YES
|
YES
|
YES
|
|
Unqualified Auditor's Report (Clean Opinion)
|
YES
|
YES
|
YES
|
YES
|
|
Financial Type
|
FULL
|
FULL
|
FULL
|
FULL
|
|
Currency
|
MYR
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
TURNOVER
|
3,807,050,000
|
3,192,020,000
|
2,888,960,000
|
2,932,020,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
3,807,050,000
|
3,192,020,000
|
2,888,960,000
|
2,932,020,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
44,290,000
|
144,620,000
|
11,710,000
|
45,700,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
44,290,000
|
144,620,000
|
11,710,000
|
45,700,000
|
|
Taxation
|
<8,250,000>
|
<21,810,000>
|
4,700,000
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
36,040,000
|
122,810,000
|
16,410,000
|
45,700,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
As previously reported
|
184,920,000
|
62,110,000
|
45,700,000
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
184,920,000
|
62,110,000
|
45,700,000
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
220,960,000
|
184,920,000
|
62,110,000
|
45,700,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
220,960,000
|
184,920,000
|
62,110,000
|
45,700,000
|
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L)
|
|
|
|
|
|
Bank overdraft
|
8,260,000
|
11,160,000
|
11,410,000
|
-
|
|
Term loan / Borrowing
|
8,130,000
|
9,020,000
|
19,910,000
|
30,130,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
16,390,000
|
20,180,000
|
31,320,000
|
30,130,000
|
BALANCE SHEET
|
RECRON (MALAYSIA) SDN BHD
|
|
ASSETS EMPLOYED:
|
|
|
|
|
|
FIXED ASSETS
|
1,547,530,000
|
1,481,940,000
|
1,579,120,000
|
1,617,770,000
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
1,547,530,000
|
1,481,940,000
|
1,579,120,000
|
1,617,770,000
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Stocks
|
465,570,000
|
452,260,000
|
449,240,000
|
494,930,000
|
|
Trade debtors
|
136,750,000
|
136,800,000
|
142,430,000
|
111,360,000
|
|
Other debtors, deposits & prepayments
|
15,560,000
|
48,500,000
|
7,480,000
|
15,390,000
|
|
Short term deposits
|
-
|
3,870,000
|
-
|
-
|
|
Cash & bank balances
|
4,090,000
|
1,400,000
|
70,000
|
370,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
621,970,000
|
642,830,000
|
599,220,000
|
622,050,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
2,169,500,000
|
2,124,770,000
|
2,178,340,000
|
2,239,820,000
|
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
117,000,000
|
132,460,000
|
111,700,000
|
75,260,000
|
|
Other creditors & accruals
|
45,840,000
|
48,130,000
|
48,370,000
|
41,210,000
|
|
Bank overdraft
|
183,460,000
|
128,540,000
|
235,080,000
|
254,820,000
|
|
Short term borrowings/Term loans
|
95,310,000
|
661,610,000
|
654,000,000
|
658,930,000
|
|
Other borrowings
|
103,950,000
|
100,000,000
|
165,000,000
|
191,130,000
|
|
Other liabilities
|
117,320,000
|
6,450,000
|
15,300,000
|
35,360,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
662,880,000
|
1,077,190,000
|
1,229,450,000
|
1,256,710,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
<40,910,000>
|
<434,360,000>
|
<630,230,000>
|
<634,660,000>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
1,506,620,000
|
1,047,580,000
|
948,890,000
|
983,110,000
|
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
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
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
Capital reserve
|
727,190,000
|
773,110,000
|
819,040,000
|
864,970,000
|
|
Retained profit/(loss) carried forward
|
220,960,000
|
184,920,000
|
62,110,000
|
45,700,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
948,150,000
|
958,030,000
|
881,150,000
|
910,670,000
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
950,650,000
|
960,530,000
|
883,650,000
|
913,170,000
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES
|
|
|
|
|
|
Long term loans
|
460,670,000
|
-
|
-
|
-
|
|
Deferred taxation
|
95,300,000
|
87,050,000
|
65,240,000
|
69,940,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
555,970,000
|
87,050,000
|
65,240,000
|
69,940,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
1,506,620,000
|
1,047,580,000
|
948,890,000
|
983,110,000
|
|
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
FINANCIAL
RATIO
|
RECRON (MALAYSIA) SDN BHD
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
4,090,000
|
5,270,000
|
70,000
|
370,000
|
|
Net Liquid Funds
|
<179,370,000>
|
<123,270,000>
|
<235,010,000>
|
<254,450,000>
|
|
Net Liquid Assets
|
<506,480,000>
|
<886,620,000>
|
<1,079,470,000>
|
<1,129,590,000>
|
|
Net Current Assets/(Liabilities)
|
<40,910,000>
|
<434,360,000>
|
<630,230,000>
|
<634,660,000>
|
|
Net Tangible Assets
|
1,506,620,000
|
1,047,580,000
|
948,890,000
|
983,110,000
|
|
Net Monetary Assets
|
<1,062,450,000>
|
<973,670,000>
|
<1,144,710,000>
|
<1,199,530,000>
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
843,390,000
|
890,150,000
|
1,054,080,000
|
1,104,880,000
|
|
Total Liabilities
|
1,218,850,000
|
1,164,240,000
|
1,294,690,000
|
1,326,650,000
|
|
Total Assets
|
2,169,500,000
|
2,124,770,000
|
2,178,340,000
|
2,239,820,000
|
|
Net Assets
|
1,506,620,000
|
1,047,580,000
|
948,890,000
|
983,110,000
|
|
Net Assets Backing
|
950,650,000
|
960,530,000
|
883,650,000
|
913,170,000
|
|
Shareholders' Funds
|
950,650,000
|
960,530,000
|
883,650,000
|
913,170,000
|
|
Total Share Capital
|
2,500,000
|
2,500,000
|
2,500,000
|
2,500,000
|
|
Total Reserves
|
948,150,000
|
958,030,000
|
881,150,000
|
910,670,000
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
Cash Ratio
|
0.01
|
0.00
|
0.00
|
0.00
|
|
Liquid Ratio
|
0.24
|
0.18
|
0.12
|
0.10
|
|
Current Ratio
|
0.94
|
0.60
|
0.49
|
0.49
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
45
|
52
|
57
|
62
|
|
Debtors Ratio
|
13
|
16
|
18
|
14
|
|
Creditors Ratio
|
11
|
15
|
14
|
9
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0.89
|
0.93
|
1.19
|
1.21
|
|
Liabilities Ratio
|
1.28
|
1.21
|
1.47
|
1.45
|
|
Times Interest Earned Ratio
|
3.70
|
8.17
|
1.37
|
2.52
|
|
Assets Backing Ratio
|
602.65
|
419.03
|
379.56
|
393.24
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
1.16
|
4.53
|
0.41
|
1.56
|
|
Net Profit Margin
|
0.95
|
3.85
|
0.57
|
1.56
|
|
Return On Net Assets
|
4.03
|
15.73
|
4.53
|
7.71
|
|
Return On Capital Employed
|
3.59
|
14.01
|
3.63
|
6.13
|
|
Return On Shareholders' Funds/Equity
|
3.79
|
12.79
|
1.86
|
5.00
|
|
Dividend Pay Out Ratio (Times)
|
0.00
|
0.00
|
0.00
|
0.00
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
0
|
0
|
|
|
|