MIRA INFORM REPORT

 

 

Report Date :

28.03.2013

 

IDENTIFICATION DETAILS

 

Name :

RUBBERFLEX SDN. BHD.

 

 

Formerly Known As :

HEVEAFLEX SDN. BHD.

 

 

Registered Office :

Ubn Tower, Box 48, 10 Jalan P.Ramlee, 21st Floor , 50250 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

26.01.1985

 

 

Com. Reg. No.:

134208-U

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturer of Latex Thread

 

 

No. of Employees :

800

 

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.

:

134208-U

COMPANY NAME

:

RUBBERFLEX SDN. BHD.

FORMER NAME

:

HEVEAFLEX SDN. BHD. (18/10/1986)
HEVEA INDUSTRIES SDN BHD (12/08/1985)

INCORPORATION DATE

:

26/01/1985

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

UBN TOWER, BOX 48, 10 JALAN P.RAMLEE, 21ST FLOOR , 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

21ST FLOOR,UBN TOWER, 10 JALAN P.RAMLEE, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-20720011

FAX.NO.

:

03-20785103

EMAIL

:

INFO@RUBBERFLEX.COM.MY

WEB SITE

:

WWW.RUBBERFLEX.COM.MY

CONTACT PERSON

:

ALDO CERINA ( EXECUTIVE CHAIRMAN )

 

 

 

INDUSTRY CODE

:

22191

PRINCIPAL ACTIVITY

:

MANUFACTURER OF LATEX THREAD

AUTHORISED CAPITAL

:

MYR 30,000,000.00 DIVIDED INTO
ORDINARY SHARE 30,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 22,100,000.00 DIVIDED INTO
ORDINARY SHARES 22,100,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 852,549,401 [2011]

NET WORTH

:

MYR 243,081,269 [2011]

M1000 OVERALL RANKING

:

528[2011]

M1000 INDUSTRY RANKING

:

12[2011]

 

 

 

STAFF STRENGTH

:

800 [2013]

BANKER (S)

:

HSBC BANK MALAYSIA 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) manufacturer of latex thread.

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

2005

2004

 

OVERALL RANKING

528

822

907

 

INDUSTRY RANKING

12

17

14

 


The immediate holding company of the SC is BORNEO LUMBER CO, a company incorporated in LEICHSTENSTEIN.

The ultimate holding company of the SC is RUBBER INTERNATIONAL A.G., a company incorporated in LEICHSTENSTEIN.


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



Name

Address

IC/PP/Loc No

Shareholding

(%)

BORNEO LUMBER CO

ALTENBACH NO. 8, SL 9490 VADUZ, FURSTENTUM, LIECHTENSTEIN.

XLZ000002394

11,050,000.00

50.00

TOPONE ESTABLISHMENT

 

XLZ00210884

10,166,000.00

46.00

MALAYSIA NOMINEES (TEMPATAN) SENDIAN BERHAD

LEVEL 13, MENARA OCBC, 18 JALAN TUN PERAK, 50050 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

6193

884,000.00

4.00

 

 

 

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

------

 

 

 

22,100,000.00

100.00

 

 

 

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

=====


+ Also Director


The SC interest in other companies (Subsidiaries/Associates) are shown as follow :



Local No

Country

Company

(%)

As At

HK011047

HONG KONG

RUBBERFLEX (HONG KONG) LIMITED

100

31/12/2011

 

 

 

 

 

909715

MALAYSIA

RUBBERFLEX REENERGY SDN. BHD.

100

31/12/2011

 

 

 

 

 




 

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

ALDO CERINA

Address

:

12 JALAN U-THANT, 55000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

YA2464160

 

 

 

 

 

 

 

 

 

Nationality

:

ITALIAN

Date of Appointment

:

03/04/1989

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. EUGENE KANG HONG NGEE

Address

:

B5-3, LOJING HEIGHTS 1, SECTION 5, WANGSA MAJU, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A2180211

New IC No

:

720323-01-5465

Date of Birth

:

23/03/1972

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

10/06/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. KRISTOPA ANAK WATT

Address

:

82, KAMPUNG SELAMPIT, 94500 LUNDU, SARAWAK, MALAYSIA.

 

 

 

New IC No

:

680115-13-5557

Date of Birth

:

15/01/1968

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

09/06/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

EDGAR BAYSA VENTURA

Address

:

390 LORONG BENTONG MAKMUR 14, 28700 BENTONG, PAHANG, MALAYSIA.

IC / PP No

:

EB3797935

 

 

 

 

 

 

 

 

 

Nationality

:

FILIPINO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

ALDO CERINA

 

Position

:

EXECUTIVE CHAIRMAN

 

 

 

 

 

2)

Name of Subject

:

KRISTOPA AK WATT

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

RAYMOND

 

Position

:

FINANCE & ADMIN MANAGER

 

 

 

 

 

4)

Name of Subject

:

MAZLAN MOPIT

 

Position

:

HUMAN RESOURCE MANAGER

 

 

AUDITOR

 

Auditor

:

MOORE STEPHENS AC

Auditor' Address

:

A-37-1, MENERA UOA BANGSAR, 5 JALAN BANGSAR UTAMA 1, LEVEL 37, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. EUGENE KANG HONG NGEE

 

IC / PP No

:

A2180211

 

New IC No

:

720323-01-5465

 

Address

:

B5-3, LOJING HEIGHTS 1, SECTION 5, WANGSA MAJU, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. LEE SEET MEI

 

 

 

 

 

New IC No

:

681217-04-5100

 

Address

:

60, JALAN SS2/80, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

3)

Company Secretary

:

MR. WONG MAW CHUAN

 

 

 

 

 

New IC No

:

640419-10-6345

 

Address

:

17, JALAN BK 8/1F, BANDAR KINRARA, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

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

 

ENCUMBRANCE (S)


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

LEGAL CHECK AGAINST SC


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

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC


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

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

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

TAIWAN,EUROPE,THAILAND



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

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

AUSTRALIA

CANADA

FINLAND

GERMANY

UNITED STATES

UNITED KINGDOM

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

Type of Customer

:

TEXTILES AND GARMENT INDUSTRIES

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

EXTRUDED LATEX THREADS

 

 

 

Brand Name

:

RUBBERFLEX

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2003

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

 

 

 

Ownership of premises

:

OWNED

Factory / Premises

:

LOT 2, BENTONG INDUSTRIAL AREA, 28700 BENTONG, PAHANG, MALAYSIA.

Tel No: 09-2224611

Fax No: 09-2225300

 

Factory Size

:

24.5 ACRES

 

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

800

800

750

750

700

700

 

 

 

 

Branch

:

NO

Other Information:


The SC is principally engaged in the (as a / as an) manufacturer of latex thread.

The SC offers a full range of elastic yarns based on extruded natural latex.

The SC's products portfolio is includes as follows:

* Talc-coated (RX) thread

* Powderless (EX) silicone coated thread

* Food grade (MP) thread in RX for the manufacture of meat nettings

* High Modulus (HM) thread in RX & EX for the furniture industry

* Super soft thread for elasticated medical bandages

* Brightly coloured EX threads for the toy industry

* Baby Diaper grade thread

* Super Heat Resistant (SHR) threads in both RX & EX form

* Weather resistant thread (LQ) for the sock trade.

The SC utilizes state-of-the-art Italian technology machineries at its factory to ensure production of high quality products.

Besides that the SC also has a warehouse located at the same premises to keep stocks and materials.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0320720011

Current Telephone Number

:

03-20720011

Match

:

YES

 

 

 

Address Provided by Client

:

21ST FLOOR, UBN TOWER BOX NO. 48, NO. 10 JALAN P RAMLEE 50250 KUALA LUMPUR

Current Address

:

21ST FLOOR,UBN TOWER, 10 JALAN P.RAMLEE, 50250 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 belongs to the SC's PO Box address.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

7.64%

]

 

Return on Net Assets

:

Unfavourable

[

9.00%

]

 

 

 

 

 

 

 

 

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

:

Unfavourable

[

66 Days

]

 

Debtor Ratio

:

Acceptable

[

58 Days

]

 

Creditors Ratio

:

Favourable

[

11 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The SC's management was quite efficient in handling its debtors. The SC's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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

[

0.79 Times

]

 

Current Ratio

:

Unfavourable

[

1.53 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

[

9.99 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 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 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 :

 

 

 

 

 

 

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 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 : 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

22191 : Manufacture of other products of natural or synthetic rubber, unvulcanized, vulcanized or hardened

 

 

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 1985, the SC is a Private Limited company, focusing on manufacturer of latex thread. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. 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 penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a large entity, the SC has a steady workforce of 800 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC. To improve its quality products and services, we noted that the SC has received a number of certifications & awards. This will improve the customer's confidence level to the SC.


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. Fortunately, 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 243,081,269, 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.


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)

RUBBERFLEX 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

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

852,549,401

745,214,544

664,663,887

550,383,667

632,230,155

 

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

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

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

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

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

Total Turnover

852,549,401

745,214,544

664,663,887

550,383,667

632,230,155

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

21,401,086

44,281,189

64,695,874

3,446,839

29,105,168

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

21,401,086

44,281,189

64,695,874

3,446,839

29,105,168

Taxation

<2,822,381>

<1,214,615>

<7,114,821>

38,435

<2,609,810>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

18,578,705

43,066,574

57,581,053

3,485,274

26,495,358

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

225,735,163

194,823,589

149,397,536

145,912,262

131,416,904

 

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

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

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

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

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

As restated

225,735,163

194,823,589

149,397,536

145,912,262

131,416,904

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

244,313,868

237,890,163

206,978,589

149,397,536

157,912,262

DIVIDENDS - Ordinary (paid & proposed)

<24,310,000>

<12,155,000>

<12,155,000>

-

<12,000,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

220,003,868

225,735,163

194,823,589

149,397,536

145,912,262

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

2,381,247

4,386,514

4,604,873

9,185,830

5,758,417

 

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

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

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

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

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

 

2,381,247

4,386,514

4,604,873

9,185,830

5,758,417

 

 

BALANCE SHEET

 

 

RUBBERFLEX SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

153,346,431

156,855,571

157,358,193

173,373,478

178,214,240

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Associated companies

-

-

-

32,147

2,553,048

Others

552,525

3,280,459

2,593,062

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

552,525

3,280,459

2,593,062

32,147

2,553,048

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Goodwill on consolidation

-

-

-

-

605,753

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

-

-

-

-

605,753

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

153,898,956

160,136,030

159,951,255

173,405,625

181,373,041

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

153,644,317

113,956,023

78,280,806

86,833,337

113,684,147

Contract work-in-progress

-

-

-

-

4,521,774

Trade debtors

134,467,716

185,956,301

135,499,798

130,042,961

198,971,366

Other debtors, deposits & prepayments

3,299,865

2,796,307

2,084,673

9,277,178

7,111,847

Cash & bank balances

24,550,161

43,653,383

28,388,498

26,770,664

26,442,200

Others

1,027,138

2,817,171

-

1,857,086

544,700

 

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

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

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

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

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

TOTAL CURRENT ASSETS

316,989,197

349,179,185

244,253,775

254,781,226

351,276,034

 

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

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

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

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

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

TOTAL ASSET

470,888,153

509,315,215

404,205,030

428,186,851

532,649,075

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

26,168,953

40,027,614

27,179,604

22,402,953

33,415,666

Other creditors & accruals

9,171,490

21,187,908

14,117,966

10,946,113

23,309,986

Bank overdraft

-

-

-

686,061

382,195

Other borrowings

-

113,000

8,326,000

89,871,441

135,417,000

Bill & acceptances payable

-

14,257,000

31,148,790

100,826,140

127,176,000

Amounts owing to associated companies

-

-

-

-

1,874,359

Amounts owing to director

190,897

-

7,650

418,392

231,395

Provision for taxation

-

-

934,420

-

-

Dividends payable/proposed

1,105,000

1,105,000

17,260,000

13,105,000

13,105,000

Other liabilities

170,031,944

163,415,079

66,741,538

-

10,972,583

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

206,668,284

240,105,601

165,715,968

238,256,100

345,884,184

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

110,320,913

109,073,584

78,537,807

16,525,126

5,391,850

 

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

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

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

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

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

TOTAL NET ASSETS

264,219,869

269,209,614

238,489,062

189,930,751

186,764,891

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

22,100,000

22,100,000

22,100,000

22,100,000

22,100,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

22,100,000

22,100,000

22,100,000

22,100,000

22,100,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

220,003,868

225,735,163

194,823,589

149,397,536

145,912,262

Others

977,401

569,851

143,373

350,015

655,829

 

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

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

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

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

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

TOTAL RESERVES

220,981,269

226,305,014

194,966,962

149,747,551

146,568,091

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

243,081,269

248,405,014

217,066,962

171,847,551

168,668,091

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

21,138,600

20,804,600

21,422,100

18,083,200

18,096,800

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

21,138,600

20,804,600

21,422,100

18,083,200

18,096,800

 

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

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

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

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

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

 

264,219,869

269,209,614

238,489,062

189,930,751

186,764,891

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

RUBBERFLEX SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

24,550,161

43,653,383

28,388,498

26,770,664

26,442,200

Net Liquid Funds

24,550,161

43,653,383

28,388,498

26,084,603

26,060,005

Net Liquid Assets

<43,323,404>

<4,882,439>

257,001

<70,308,211>

<108,292,297>

Net Current Assets/(Liabilities)

110,320,913

109,073,584

78,537,807

16,525,126

5,391,850

Net Tangible Assets

264,219,869

269,209,614

238,489,062

189,930,751

186,159,138

Net Monetary Assets

<64,462,004>

<25,687,039>

<21,165,099>

<88,391,411>

<126,389,097>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

113,000

8,326,000

90,557,502

135,799,195

Total Liabilities

227,806,884

260,910,201

187,138,068

256,339,300

363,980,984

Total Assets

470,888,153

509,315,215

404,205,030

428,186,851

532,649,075

Net Assets

264,219,869

269,209,614

238,489,062

189,930,751

186,764,891

Net Assets Backing

243,081,269

248,405,014

217,066,962

171,847,551

168,668,091

Shareholders' Funds

243,081,269

248,405,014

217,066,962

171,847,551

168,668,091

Total Share Capital

22,100,000

22,100,000

22,100,000

22,100,000

22,100,000

Total Reserves

220,981,269

226,305,014

194,966,962

149,747,551

146,568,091

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.12

0.18

0.17

0.11

0.08

Liquid Ratio

0.79

0.98

1.00

0.70

0.69

Current Ratio

1.53

1.45

1.47

1.07

1.02

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

66

56

43

58

68

Debtors Ratio

58

91

74

86

115

Creditors Ratio

11

20

15

15

19

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.04

0.53

0.81

Liabilities Ratio

0.94

1.05

0.86

1.49

2.16

Times Interest Earned Ratio

9.99

11.09

15.05

1.38

6.05

Assets Backing Ratio

11.96

12.18

10.79

8.59

8.42

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

2.51

5.94

9.73

0.63

4.60

Net Profit Margin

2.18

5.78

8.66

0.63

4.19

Return On Net Assets

9.00

18.08

29.06

6.65

18.67

Return On Capital Employed

9.00

18.08

29.06

6.63

18.57

Return On Shareholders' Funds/Equity

7.64

17.34

26.53

2.03

15.71

Dividend Pay Out Ratio (Times)

1.31

0.28

0.21

0.00

0.45

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

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.