MIRA INFORM REPORT

 

 

Report Date :

28.03.2013

 

IDENTIFICATION DETAILS

 

Name :

LUVATA MALAYSIA SDN. BHD.

 

 

Formerly Known As :

OUTOKUMPU COPPER PRODUCTS (MALAYSIA) SDN BHD (27/06/2006)

 

 

Registered Office :

Suite 335a, 3rd Floor, Johor Tower, Jalan Gereja, 80100 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

16.01.1997

 

 

Com. Reg. No.:

417125-K

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing and Dealing of Copper Products

 

 

No. of Employees :

300

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

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

(31.03.2011)

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.

:

417125-K

COMPANY NAME

:

LUVATA MALAYSIA SDN. BHD.

FORMER NAME

:

OUTOKUMPU COPPER PRODUCTS (MALAYSIA) SDN BHD (27/06/2006)

INCORPORATION DATE

:

16/01/1997

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE 335A, 3RD FLOOR, JOHOR TOWER, JALAN GEREJA, 80100 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

PLO 573, JALAN KELULI 10, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2526688

FAX.NO.

:

07-2524388

WEB SITE

:

WWW.LUVATA.COM

CONTACT PERSON

:

MICHAEL NORDGEN ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

25994

PRINCIPAL ACTIVITY

:

MANUFACTURING AND DEALING OF COPPER PRODUCTS

AUTHORISED CAPITAL

:

MYR 120,000,000.00 DIVIDED INTO
ORDINARY SHARE 20,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 100,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 120,000,000.00 DIVIDED INTO
ORDINARY SHARES 20,000,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 31,842,755 CASH AND 0 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 952,254,451 [2011]

NET WORTH

:

MYR 185,032,779 [2011]

M1000 OVERALL RANKING

:

648[2011]

M1000 INDUSTRY RANKING

:

9[2011]

 

 

 

STAFF STRENGTH

:

300 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

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 and dealing of copper products.

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

648

 

 

INDUSTRY RANKING

9

 

 


The immediate holding company of the SC is LUVATA ESPOO OY, a company incorporated in FINLAND.

The ultimate holding company of the SC is LUVATA OY, a company incorporated in FINLAND.


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



Name

Address

IC/PP/Loc No

Shareholding

(%)

LUVATA ESPOO OY

TUULIKUJA 2, FIN-02100, ESPOO, FINLAND

XLZ00218330

120,000,000.00

100.00

 

 

 

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

------

 

 

 

120,000,000.00

100.00

 

 

 

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

=====


+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. EAPEN ABRAHAM A/L K E ABRAHAM

Address

:

NO 10, JALAN LEMBAH 8, BANDAR SERI ALAM, 81750 MASAI, JOHOR, MALAYSIA.

 

 

 

New IC No

:

550404-01-5919

Date of Birth

:

04/04/1955

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

19/10/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. LAU SIEW DEE

Address

:

NO 9 JALAN JELITA 5, TAMAN PELANGI INDAH, 81800 ULU TIRAM, JOHOR, MALAYSIA.

 

 

 

New IC No

:

670313-01-5856

Date of Birth

:

13/03/1967

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

19/10/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

BERNDT MICHAEL NORDGREN

Address

:

#B8-W2, BLK B, KONDOMINIUM STRAITS VIEW, JLN PERMAS SELATAN, TMN PERMAS JAYA, 81750 MASAI, JOHOR, MALAYSIA.

IC / PP No

:

PX4214216

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

19/10/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. ABDUL RAMAN BIN HAJI SAAD, HAJI

Address

:

NO 42, JALAN JINGGA 4, TAMAN PELANGI, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

New IC No

:

490402-04-5557

Date of Birth

:

02/04/1949

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

10/12/1997

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

PETER JOHAN FRIIS

Address

:

12A, JALAN TENGKU PETRIE 1, 07-19 CONDO PETRIE, 80200 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

13632707

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

05/09/2000

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

MICHAEL NORDGEN

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

EAPEN ABRAHAM

 

Position

:

ACCOUNTANT

 

 

 

 

 

3)

Name of Subject

:

SIA HENG HUAT

 

Position

:

MARKETING MANAGER

 

 

 

 

 

4)

Name of Subject

:

GERALDINE LAU

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

5)

Name of Subject

:

MOHAMED ARIFF

 

Position

:

PRODUCTION MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

LEVEL 10, KPMG TOWER,, 8 FIRST AVENUE, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHONG SIOW PEI

 

 

 

 

 

New IC No

:

790921-01-6322

 

Address

:

26 JALAN TASEK SATU, TAMAN TASEK, 80200 JOHOR BAHRU, 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)


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

LEGAL CHECK AGAINST SC


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

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC


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

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

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

60%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

40%

Export Market

:

SINGAPORE

AUSTRALIA

NEW ZEALAND

UNITED ARAB EMIRATES

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

Type of Customer

:

AUTOMOTIVE INDUSTRIES,ELECTRICAL & ELECTRONIC INDUSTRIES,TELECOMUNICATION INDUSTRY

 

 

 

 

 

 

 

 

 

 

 

 




OPERATIONS

 

Products manufactured

:

COPPER ANODES, COPPER PROFILES, COPPER SECTIONS, COPPER STRIPS

 

 

 

Brand Name

:

AUTOKUMPU

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2003

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

THE ELECTRICAL AND ELECTRONICS ASSOCIATION OF MALAYSIA (TEEAM)

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

 

 

 

Production Capacity

:

APPROXIMATELY 1,500 TONNES PER MONTH

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

2008

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

300

270

270

265

260

269

 

 

 

 

Branch

:

NO

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing and dealing of copper products.

The SC is one of the copper product manufacturer for various industrial applications.

The SC produces a wide range of products including anodes, brass rod, profiles, rods & bars, sheets & plates, strips, tubes, welding products, wire and related products.

The SC produces its copper products according to its customers' requirements.

The SC's products are mainly used in various applications such as electrical and electronic conductivity, switch gears, electrical appliances, bus duct and etc.

The SC is specialises in custom designed plants for surface treatment of wire and strip as well as treatment of industrial waste water.

The SC provides its customers with service, maintenance and upgrading of both surface treatment and waste water treatment plants.

The SC's production machineries are semi-automated.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

072526688

Current Telephone Number

:

07-2526688

Match

:

YES

 

 

 

Address Provided by Client

:

PLO 573, JALAN KELULI 10, KAWASAN PERINDUSTRIAN PASIR GUDANG,81700,PASIR GUDANG,JOHOR.

Current Address

:

PLO 573, JALAN KELULI 10, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, 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

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

6.92%

]

 

Return on Net Assets

:

Acceptable

[

11.29%

]

 

 

 

 

 

 

 

 

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

[

27 Days

]

 

Debtor Ratio

:

Favourable

[

53 Days

]

 

Creditors Ratio

:

Favourable

[

23 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

:

Favourable

[

1.04 Times

]

 

Current Ratio

:

Unfavourable

[

1.48 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

:

Acceptable

[

4.11 Times

]

 

Gearing Ratio

:

Favourable

[

0.08 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 was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC 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 as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : FAIR

 

 

 

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

25994 : Manufacture of metal household articles

 

 

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 1997, the SC is a Private Limited company, focusing on manufacturing and dealing of copper 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. The SC is a large entity with strong capital position. We are confident with the SC's business and its future growth prospect.


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 a fairly large and rapidly growing company with over 300 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. The SC however 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 lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 185,032,779, the SC should be able to maintain its business in the near terms.


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.


We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.


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 promptly.

 

PROFIT AND LOSS ACCOUNT

 

 

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

LUVATA MALAYSIA SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

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

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

952,254,451

816,247,283

514,211,182

781,603,820

750,877,877

 

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

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

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

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

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

Total Turnover

952,254,451

816,247,283

514,211,182

781,603,820

750,877,877

Costs of Goods Sold

<912,654,674>

<775,144,731>

-

-

-

 

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

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

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

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

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

Gross Profit

39,599,777

41,102,552

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

15,818,018

23,256,081

51,507,277

<29,519,846>

46,457,738

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

15,818,018

23,256,081

51,507,277

<29,519,846>

46,457,738

Taxation

<3,014,447>

<647,292>

<6,249,657>

6,779,708

<6,281,694>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

12,803,571

22,608,789

45,257,620

<22,740,138>

40,176,044

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

52,229,208

29,620,419

<15,637,201>

7,102,937

<33,073,107>

 

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

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

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

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

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

As restated

52,229,208

29,620,419

<15,637,201>

7,102,937

<33,073,107>

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

65,032,779

52,229,208

29,620,419

<15,637,201>

7,102,937

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

65,032,779

52,229,208

29,620,419

<15,637,201>

7,102,937

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

5,078,186

3,267,987

428,198

453,199

-

 

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

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

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

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

 

 

5,078,186

3,267,987

428,198

453,199

 

 

 

 

BALANCE SHEET

 

 

LUVATA MALAYSIA SDN. BHD.

 

:right'> 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

107,271,587

92,031,745

84,106,338

75,220,243

72,771,083

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Deferred assets

2,209,000

5,267,000

5,891,000

12,136,000

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

2,209,000

5,267,000

5,891,000

12,136,000

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

109,480,587

97,298,745

89,997,338

87,356,243

72,771,083

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

69,284,298

30,476,211

37,453,921

20,458,804

-

Trade debtors

137,044,573

114,317,067

78,409,671

66,040,850

-

Other debtors, deposits & prepayments

1,091,412

811,655

1,133,048

1,009,862

-

Amount due from related companies

805,527

651,686

585,873

343,878

-

Cash & bank balances

24,300,933

13,762,800

12,639,511

16,805,027

-

Others

119,802

69,024

1,097

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

232,646,545

160,088,443

130,223,121

104,658,421

176,516,533

 

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

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

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

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

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

TOTAL ASSET

342,127,132

257,387,188

Deferred assets

2,209,000

5,267,000

5,891,000

12,136,000

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

2,209,000

5,267,000

5,891,000

12,136,000

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

109,480,587

97,298,745

89,997,338

87,356,243

72,771,083

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

69,284,298

30,476,211

37,453,921

20,458,804

-

Trade debtors

137,044,573

114,317,067

78,409,671

66,040,850

-

Other debtors, deposits & prepayments

1,091,412

811,655

1,133,048

1,009,862

-

Amount due from related companies

805,527

651,686

585,873

343,878

-

Cash & bank balances

24,300,933

13,762,800

12,639,511

16,805,027

-

Others

119,802

69,024

1,097

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

232,646,545

160,088,443

130,223,121

104,658,421

176,516,533

 

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

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

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

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

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

TOTAL ASSET

342,127,132

257,387,188

220,220,459

192,014,664

249,287,616

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

57,698,663

27,691,827

11,530,776

20,066,170

-

Other creditors & accruals

15,986,318

5,521,244

4,319,642

6,539,343

-

Short term borrowings/Term loans

15,230,400

-

-

-

-

Amounts owing to holding company

1,592,187

1,177,466

675,798

465,625

-

Amounts owing to related companies

479,286

432,065

273,235

827,036

-

Provision for taxation

-

-

-

40,146

-

Other liabilities

66,107,499

36,544,233

20,236,096

13,052

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

157,094,353

71,366,835

37,035,547

27,951,372

54,696,986

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

75,552,192

88,721,608

93,187,574

76,707,049

121,819,547

 

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

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

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

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

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

TOTAL NET ASSETS

185,032,779

186,020,353

183,184,912

164,063,292

194,590,630

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

120,000,000

120,000,000

120,000,000

120,000,000

120,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

120,000,000

120,000,000

120,000,000

120,000,000

120,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

65,032,779

52,229,208

29,620,419

<15,637,201>

7,102,937

 

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

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

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

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

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

TOTAL RESERVES

65,032,779

52,229,208

29,620,419

<15,637,201>

7,102,937

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

185,032,779

172,229,208

149,620,419

104,362,799

127,102,937

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Others

-

13,791,145

33,564,493

59,700,493

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

13,791,145

33,564,493

59,700,493

67,487,693

 

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

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

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

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

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

 

185,032,779

186,020,353

183,184,912

164,063,292

194,590,630

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

LUVATA MALAYSIA SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

24,300,933

13,762,800

12,639,511

16,805,027

-

Net Liquid Funds

24,300,933

13,762,800

12,639,511

16,805,027

-

Net Liquid Assets

6,267,894

58,245,397

55,733,653

56,248,245

121,819,547

Net Current Assets/(Liabilities)

75,552,192

88,721,608

93,187,574

76,707,049

121,819,547

Net Tangible Assets

185,032,779

186,020,353

183,184,912

164,063,292

194,590,630

Net Monetary Assets

6,267,894

44,454,252

22,169,160

<3,452,248>

54,331,854

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

15,230,400

0

0

0

-

Total Liabilities

157,094,353

85,157,980

70,600,040

87,651,865

122,184,679

Total Assets

342,127,132

257,387,188

220,220,459

192,014,664

249,287,616

Net Assets

185,032,779

186,020,353

183,184,912

164,063,292

194,590,630

Net Assets Backing

185,032,779

172,229,208

149,620,419

104,362,799

127,102,937

Shareholders' Funds

185,032,779

172,229,208

149,620,419

104,362,799

127,102,937

Total Share Capital

120,000,000

120,000,000

120,000,000

120,000,000

120,000,000

Total Reserves

65,032,779

52,229,208

29,620,419

<15,637,201>

7,102,937

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.15

0.19

0.34

0.60

-

Liquid Ratio

1.04

1.82

2.50

3.01

-

Current Ratio

1.48

2.24

3.52

3.74

3.23

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

27

14

27

10

-

Debtors Ratio

53

51

56

31

-

Creditors Ratio

23

13

8

9

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.08

0.00

0.00

0.00

-

Liabilities Ratio

0.85

0.49

0.47

0.84

0.96

Times Interest Earned Ratio

4.11

8.12

121.29

<64.14>

-

Assets Backing Ratio

1.54

1.55

1.53

1.37

1.62

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.66

2.85

10.02

<3.78>

6.19

Net Profit Margin

1.34

2.77

8.80

<2.91>

5.35

Return On Net Assets

11.29

14.26

28.35

<17.72>

23.87

Return On Capital Employed

11.29

14.26

28.35

<17.72>

23.87

Return On Shareholders' Funds/Equity

6.92

13.13

30.25

<21.79>

31.61

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

 




FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.27

UK Pound

1

Rs.82.49

Euro

1

Rs.69.88

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

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

 

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

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

 

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

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