MIRA INFORM REPORT

 

 

Report Date :

21.03.2013

 

IDENTIFICATION DETAILS

 

Name :

SEGAMAT PANEL BOARDS SDN. BHD.

 

 

Formerly Known As :

Immediate Expansion Sdn Bhd

 

 

Registered Office :

Suite 6.1a Menara Pelangi, Jalan Kuning Taman Pelangi, Level 6, 80400 Johor Bahru, Johor

 

 

Country :

malaysia

 

 

Financials (as on) :

30.06.2011

 

 

Date of Incorporation :

09.08.2001

 

 

Com. Reg. No.:

555843-X

 

 

Legal Form :

Private limited (limited by share)

 

 

Line of Business :

Manufacturer of medium density fiberboard (mdf) & related products

 

 

No. of Employees :

150

 

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 :

Usually Correct 

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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. 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 more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA


* Adopted abbreviations :                                   SC - Subject Company (the company enquired by you)

                                                                          N/A - Not Applicable   

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

555843-X

COMPANY NAME

:

SEGAMAT PANEL BOARDS SDN. BHD.

FORMER NAME

:

IMMEDIATE EXPANSION SDN BHD (31/07/2002)

INCORPORATION DATE

:

09/08/2001

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE 6.1A MENARA PELANGI, JALAN KUNING TAMAN PELANGI, LEVEL 6, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

PLO 201, KAWASAN PERINDUSTRIAN SEGAMAT II, MUKIM POGOH, 85000 SEGAMAT, JOHOR, MALAYSIA.

TEL.NO.

:

07-9279989

FAX.NO.

:

07-9279969

EMAIL

:

INQUIRIES@SPB.COM.MY

WEB SITE

:

WWW.SPB.COM.MY

CONTACT PERSON

:

HANS PETER FITCH ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

16212

PRINCIPAL ACTIVITY

:

MANUFACTURER OF MEDIUM DENSITY FIBERBOARD (MDF) & RELATED PRODUCTS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,500,000.00 DIVIDED INTO 
ORDINARY SHARES 2,500,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 62,764,673 [2011]

NET WORTH

:

MYR 46,358,555 [2011]

 

 

 

STAFF STRENGTH

:

150 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

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) manufacturer of medium density fiberboard (mdf) & related products.

 

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

 

The immediate holding company of the SC is KAZO TRADING PTE LTD, a company incorporated in SINGAPORE.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

KAZO TRADING PTE LTD

171 CHIN SWEE ROAD, #12-06 SAN CENTRE SINGAPORE, 169877, SINGAPORE.

XLZ00001921

2,500,000.00

100.00

 

 

 

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

------

 

 

 

2,500,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

KOICHI SAITO

Address

:

50 JALAN MUTIARA EMAS 2/7, TAMAN MOUNT AUSTIN, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

TZ6018010

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

15/09/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

HANS PETER FITCH

Address

:

41 JALAN PELANGI PAGI, COUNTRY HEIGHTS, 43000 KAJANG, SELANGOR, MALAYSIA.

IC / PP No

:

761241657

 

 

 

 

 

 

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

18/09/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

SHIGETOYO TAKEUCHI

Address

:

87 CASHEW ROAD, #06-03 CASHEW HEIGHTS, 679658, SINGAPORE.

IC / PP No

:

MZ0683627

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

18/09/2002

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

HANS PETER FITCH

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

SUELIN LIM

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

BDO

Auditor' Address

:

SUITE 18-04 MENARA MAA,15 JALAN DATO'S ABDULLAH TAHIR, LEVEL 18, 80300 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SHAHNIZA ANOM BTE ELIAS

 

IC / PP No

:

A1172646

 

New IC No

:

680929-01-5802

 

Address

:

63 JALAN TEMBAGA MERAH 9 TAMAN SRI SKUDAI, 81300 JOHOR BHARU, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. LEONG SIEW FOONG

 

IC / PP No

:

A0828311

 

New IC No

:

671205-10-5330

 

Address

:

3 JALAN BAYAM, TAMAN KOTA BESAR, 81900 KOTA TINGGI, JOHOR, 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)



ENCUMBRANCE 1

Date of Creation

:

28/03/2011

Description Of Charge

:

N/A

 

Amount Secured

:

MYR8,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AMBANK (M) BERHAD

 

 

 

 

 

 

 

Form 40 Dated 05/04/2011

Registered and Numbered 1 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

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

EUROPE

MIDDLE EAST

Credit Term

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

MEDIUM DENSITY FIBERBOARD (MDF) & RELATED PRODUCTS

 

 

 

Competitor(s)

:

JAYAKUIK SDN BHD

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2010

2009

 

GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

150

174

160

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturer of medium density fiberboard (mdf) & related products.

The SC's core business is to produce high quality wood based thin panels (MDF and Particleboard), with a choice of thickness and sizes.

The SC however refused to disclose further information on its operation. 

 

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

:

07-9279989

Match

:

N/A

 

 

 

Address Provided by Client

:

PLO 201, KAWASAN PERINDUSTRIAN SEGAMAT II, MUKIM POGOH,85000,SEGAMAT,JOHOR.

Current Address

:

PLO 201, KAWASAN PERINDUSTRIAN SEGAMAT II, MUKIM POGOH, 85000 SEGAMAT, JOHOR, 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

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

4.01%

]

 

Return on Net Assets

:

Unfavourable

[

3.41%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. 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

[

27 Days

]

 

Debtor Ratio

:

Favourable

[

12 Days

]

 

Creditors Ratio

:

Favourable

[

59 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

[

0.12 Times

]

 

Current Ratio

:

Unfavourable

[

0.19 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

96.22 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 :

 

 

 

 

 

 

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC 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 : LIMITED

 

 

 

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

16212 : Manufacture of particle board and fibreboard

 

 

INDUSTRY :

MANUFACTURING

 

 

 


The manufacturing sector is expected to be driven by higher value-added activities in Malaysia.The GDP growth for first quarter 2012 indicating manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia recorded a 12% jump in approved investments in the manufacturing sector in the first quarter of 2012 compared with the corresponding period 2011. According to Federation of Malaysian Manufacturers (FMM), manufacturing sector expected to improve in the third quarter 2012 despite concerns over external developments and the rising cost of production.


The rubber products sub-sector is expected to remain resilient supported by continuous improvements in medical and healthcare standards in emerging markets as well as demand from niche markets such as the oil and gas sector for rubber hoses. Malaysia rubber exports are forecast to grow at 10%, at the end of 2012 driven by global demand for medical gloves as well as rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber shipments in Malaysia due to hospitals and clinics place more intrest on rising health and hygiene awareness.


The 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.


Chemical production are expected to show 6.2% in year 2012 and 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.


According to Malaysian Iron and Steel Industry Federation, first half of 2012 would remain weak for the local steel industry due to eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries. At first quarter 2012, the average local steel price is trading atRM2,300 per tonne compared with the average international price of US$740 (RM2,331) per tonne.


According to the Department of Statistics, Malaysia during the first quarter 2012, the manufacturing output increased due to activities in major sub-sectors such as petroleum, chemical, rubber and plastic products (10.5 %), and non-metallic mineral products, basic metal and fabricated metal products (3.9 %). Meanwhile, it's also announced that the manufacturing sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared with RM47.7 billion in May 2011. The Industrial Production Index (IPI ) increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %). 


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 as solar 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 2001, the SC is a Private Limited company, focusing on manufacturer of medium density fiberboard (mdf) & related products. With its long establishment in the market, the SC has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. With an adequate share capital, the SC has the potential of expanding its business in future.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. The SC is a fairly large and rapidly growing company with over 150 staff in its operations Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


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. 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 46,358,555, 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.


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)

SEGAMAT PANEL BOARDS 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

SUMMARY

SUMMARY

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

62,764,673

62,134,961

67,692,817

72,374,792

69,784,562

 

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

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

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

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

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

Total Turnover

62,764,673

62,134,961

67,692,817

72,374,792

69,784,562

Costs of Goods Sold

<45,254,223>

<46,010,386>

-

-

-

 

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

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

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

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

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

Gross Profit

17,510,450

16,124,575

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

1,798,257

1,941,653

404,541

5,691,223

10,478,155

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,798,257

1,941,653

404,541

5,691,223

10,478,155

Taxation

60,530

1,139,152

995,400

886,600

<673,386>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,858,787

3,080,805

1,399,941

6,577,823

9,804,769

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

41,905,575

38,824,770

37,424,829

30,847,006

21,042,237

Prior year adjustment

94,193

-

-

-

-

 

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

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

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

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

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

As restated

41,999,768

38,824,770

37,424,829

30,847,006

21,042,237

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

43,858,555

41,905,575

38,824,770

37,424,829

30,847,006

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

43,858,555

41,905,575

38,824,770

37,424,829

30,847,006

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

952

1,429

-

-

-

Others

17,933

-

-

-

-

 

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

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

 

 

 

 

18,885

1,429

 

 

 

 

 

 

BALANCE SHEET

 

 

SEGAMAT PANEL BOARDS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

111,720,879

100,406,091

70,850,670

59,784,728

58,471,212

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

0

0

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

111,720,879

100,406,091

70,850,670

59,784,728

58,471,212

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

4,691,257

3,797,094

-

-

4,405,797

Trade debtors

2,144,991

3,186,562

-

-

3,847,410

Other debtors, deposits & prepayments

1,555,385

834,486

-

-

3,578,312

Short term deposits

-

-

-

-

9,364,478

Deposits with financial institutions

2,194,492

4,118,466

-

-

-

Amount due from holding company

481,139

481,139

-

-

-

Cash & bank balances

2,455,501

3,893,542

-

-

11,522,716

Others

88,366

67,559

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

13,611,131

16,378,848

20,098,252

40,703,143

32,718,713

 

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

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

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

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

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

TOTAL ASSET

125,332,010

116,784,939

90,948,922

100,487,871

91,189,925

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

7,263,077

5,612,616

-

-

3,103,442

Other creditors & accruals

9,840,801

9,537,733

-

-

3,815,374

Hire purchase & lease creditors

-

13,420

-

-

18,191

Other liabilities & accruals

60,455

-

-

-

-

Amounts owing to holding company

1,852,181

863,125

-

-

222,891

Amounts owing to related companies

46,699,400

855,106

-

-

-

Provision for taxation

-

-

-

-

11,763

Other liabilities

6,293,612

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

72,009,526

16,882,000

10,024,237

11,948,105

7,171,661

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<58,398,395>

<503,152>

10,074,015

28,755,038

25,547,052

 

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

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

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

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

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

TOTAL NET ASSETS

53,322,484

99,902,939

80,924,685

88,539,766

84,018,264

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

2,500,000

2,500,000

2,500,000

2,500,000

2,500,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

2,500,000

2,500,000

2,500,000

2,500,000

2,500,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

43,858,555

41,905,575

38,824,770

37,424,829

30,847,006

 

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

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

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

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

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

TOTAL RESERVES

43,858,555

41,905,575

38,824,770

37,424,829

30,847,006

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

46,358,555

44,405,575

41,324,770

39,924,829

33,347,006

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

-

-

-

-

38,623,491

Hire purchase creditors

-

-

-

-

51,901

Deferred taxation

-

48,530

-

-

3,147,530

Others

6,963,929

55,448,834

-

-

8,848,336

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

6,963,929

55,497,364

39,599,915

48,614,937

50,671,258

 

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

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

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

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

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

 

53,322,484

99,902,939

80,924,685

88,539,766

84,018,264

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

SEGAMAT PANEL BOARDS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

2,455,501

3,893,542

-

-

20,887,194

Net Liquid Funds

2,455,501

3,893,542

-

-

20,887,194

Net Liquid Assets

<63,089,652>

<4,300,246>

10,074,015

28,755,038

21,141,255

Net Current Assets/(Liabilities)

<58,398,395>

<503,152>

10,074,015

28,755,038

25,547,052

Net Tangible Assets

53,322,484

99,902,939

80,924,685

88,539,766

84,018,264

Net Monetary Assets

<70,053,581>

<59,797,610>

<29,525,900>

<19,859,899>

<29,530,003>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

13,420

-

-

38,693,583

Total Liabilities

78,973,455

72,379,364

49,624,152

60,563,042

57,842,919

Total Assets

125,332,010

116,784,939

90,948,922

100,487,871

91,189,925

Net Assets

53,322,484

99,902,939

80,924,685

88,539,766

84,018,264

Net Assets Backing

46,358,555

44,405,575

41,324,770

39,924,829

33,347,006

Shareholders' Funds

46,358,555

44,405,575

41,324,770

39,924,829

33,347,006

Total Share Capital

2,500,000

2,500,000

2,500,000

2,500,000

2,500,000

Total Reserves

43,858,555

41,905,575

38,824,770

37,424,829

30,847,006

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.03

0.23

-

-

2.91

Liquid Ratio

0.12

0.75

-

-

3.95

Current Ratio

0.19

0.97

2.00

3.41

4.56

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

27

22

-

-

23

Debtors Ratio

12

19

-

-

20

Creditors Ratio

59

45

-

-

16

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

-

-

1.16

Liabilities Ratio

1.70

1.63

1.20

1.52

1.73

Times Interest Earned Ratio

96.22

1,359.75

-

-

0.00

Assets Backing Ratio

21.33

39.96

32.37

35.42

33.61

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

2.87

3.12

0.60

7.86

15.02

Net Profit Margin

2.96

4.96

2.07

9.09

14.05

Return On Net Assets

3.41

1.94

0.50

6.43

12.47

Return On Capital Employed

3.41

1.94

0.50

6.43

12.47

Return On Shareholders' Funds/Equity

4.01

6.94

3.39

16.48

29.40

Dividend Pay Out Ratio (Times)

0.00

0.00

-

-

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

 

-

0




FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.38

UK Pound

1

Rs.82.07

Euro

1

Rs.70.37

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.