MIRA INFORM REPORT

 

 

Report Date :

29.03.2013

 

IDENTIFICATION DETAILS

 

Name :

CERAMICA INDAH SDN BHD

 

 

Formerly Known as:

Kam Ham Brick Factory Sdn Bhd

 

 

Registered Office :

4 1/2 Mile, Kung Phin Road, Off Penrissen Road, 93250 Kuching, Sarawak

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

25.11.1980

 

 

Com. Reg. No.:

64767-T

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturer of ceramic floor tiles

 

 

No. of Employees :

1000

 

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

(31.03.2012)

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.

:

64767-T

COMPANY NAME

:

CERAMICA INDAH SDN BHD

FORMER NAME

:

KAM HAM BRICK FACTORY SDN BHD (12/09/1984)

INCORPORATION DATE

:

25/11/1980

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

4 1/2 MILE, KUNG PHIN ROAD, OFF PENRISSEN ROAD, 93250 KUCHING, SARAWAK, MALAYSIA.

BUSINESS ADDRESS

:

4 1/2 MILE KUNG PHIN ROAD, PO BOX 1842, 93736 KUCHING, SARAWAK, MALAYSIA.

TEL.NO.

:

082-451567

FAX.NO.

:

082-452135

EMAIL

:

JOHN@KIMHIM.COM.MY

WEB SITE

:

WWW.KIMHIN.COM.MY

CONTACT PERSON

:

JOHN CHUA ( GROUP MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

23921

PRINCIPAL ACTIVITY

:

MANUFACTURER OF CERAMIC FLOOR TILES

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO 
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 48,500,000.00 DIVIDED INTO 
ORDINARY SHARES 7,000,000 CASH AND 41,500,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 133,355,649 [2011]

NET WORTH

:

MYR 68,352,747 [2011]

 

 

 

STAFF STRENGTH

:

1000 [2013]

BANKER (S)

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

GOOD

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 ceramic floor tiles.

 

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

 

The immediate holding company of the SC is KIM HIN INDUSTRY BERHAD, a company incorporated in MALAYSIA.

 

The ultimate holding company of the SC is KIM HIN (MALAYSIA) SDN BHD, a company incorporated in MALAYSIA.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

KIM HIN INDUSTRY BERHAD

4 1/2 MILE, KUNG PHIN ROAD, OFF PENRISSEN ROAD, 93250 KUCHING, SARAWAK, MALAYSIA.

18203

48,500,000.00

100.00

 

 

 

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

------

 

 

 

48,500,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

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

Local No

Country

Company

(%)

As At

AU011017

AUSTRALIA

KIMGRESS HOLDINGS PTY. LTD.

100

31/12/2011

 

 

 

 

 

AU011017

AUSTRALIA

KIMGRESS AUSTRALIA PTY. LTD.

100

31/12/2011

 

 

 

 

 

 

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MS. PAULINE GETRUDE CHUA HUI LIN

Address

:

1, SIN JUAK GARDEN, JALAN RENGAS, KUCHING-BY-PASS, 93300 KUCHING, SARAWAK, MALAYSIA.

IC / PP No

:

K794597

New IC No

:

620507-13-6044

Date of Birth

:

07/05/1962

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/03/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. CHUA YEW LIN

Address

:

128 JALAN TAN SRI DATUK WILLIAM TAN, 93450 KUCHING, SARAWAK, MALAYSIA.

IC / PP No

:

K0004042

New IC No

:

630511-13-5254

Date of Birth

:

11/05/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/03/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. JOHN CHUA SENG CHAI

Address

:

128 JALAN TAN SRI DATUK WILLIAM TAN, 93450 KUCHING, SARAWAK, MALAYSIA.

IC / PP No

:

K712131

New IC No

:

581228-13-5883

Date of Birth

:

28/12/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

14/08/1987

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. CHUA SENG HUAT

Address

:

128 JALAN TAN SRI DATUK WILLIAM TAN, 93450 KUCHING, SARAWAK, MALAYSIA.

 

 

 

New IC No

:

610510-13-5545

Date of Birth

:

10/05/1961

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

29/08/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. CHUA SENG GUAN

Address

:

128 JALAN TAN SRI DATUK WILLIAM TAN, 93450 KUCHING, SARAWAK, MALAYSIA.

IC / PP No

:

K712132

New IC No

:

580122-13-5151

Date of Birth

:

22/01/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

14/08/1987

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

JOHN CHUA

 

Position

:

GROUP MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG

Auditor' Address

:

ROOMS 300-303, WISMA BUKIT MATA KUCHING, JALAN TUNKU ABDUL RAHMAN, 93100 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LOW WAI SEE

 

IC / PP No

:

A2817315

 

New IC No

:

740411-14-5188

 

Address

:

9, JALAN BERJAYA, KENYALANG PARK, 93300 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

 

 

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

 

 

 



The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

AUSTRALIA

UNITED STATES

ASIA

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

CERAMIC FLOOR TILES

 

 

 

Brand Name

:

KIMGRES, VITROGRES, DUROGRES

 

 

 

 

Certification of Products

:

1 ) MS ISO 13006 : 2003

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

 

Total Number of Employees:

 

YEAR

2013

2010

2008

 

GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

1000

950

1,000

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturer of ceramic floor tiles. 

The S is one of the driving forces of the ceramic industry in Malaysia and has years of experience in the manufacturing of ceramic and porcelain tiles. 

The SC adopts the state of the art technology and prides itself as being the market leader in design and product innovation. Our products are sold under the brand name Kimgres. 

 

 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

082-451567, 451017, 458857

Current Telephone Number

:

082-451567

Match

:

YES

 

 

 

Address Provided by Client

:

4 1/2 MILE KONG PING ROAD, PO BOX 1842,93736,KUCHING,SARAWAK.

Current Address

:

4 1/2 MILE KUNG PHIN ROAD, PO BOX 1842, 93736 KUCHING, SARAWAK, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


we contacted one of the staff from the SC and she provided some information on the SC.

The address provided is incorrect.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

<9.69%>

]

 

Return on Net Assets

:

Unfavourable

[

<4.04%>

]

 

 

 

 

 

 

 

 

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 incurred losses during the year due to the inefficient control of its operating costs. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

131 Days

]

 

Debtor Ratio

:

Favourable

[

16 Days

]

 

Creditors Ratio

:

Favourable

[

43 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

[

1.58 Times

]

 

Current Ratio

:

Unfavourable

[

1.58 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

<908.09 Times>

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC incurred losses in the year. It did not generate sufficient income to service its interest. If the situation does not improve, the SC may be vulnerable to default in servicing the interest. 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 increased its profits however showed a reverse trend. The losses could be due to the management's failure to maintain its competitiveness in the market. 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's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. 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

23921 : Manufacture of non-refractory ceramic

 

 

INDUSTRY :

CONSTRUCTION

 

 

 


Construction industry expected to play a vital role by contribution of 7%to the GDP growth in 2012 . The productivity levels of the construction anticipated to grow by 5.6% in 2012, compared with 3.09% 2011 . The Government and the private sector work together in order to achieve this target. Malaysia's economy was expected to sustain its growth momentum in 2012, with productivity growing by more than 4%, driven by the construction.


The productivity levels of the construction and services sectors are anticipated to grow by 5.6% and 4.9%, respectively, in 2012, compared with 3.09% and 4.92% year 2011.


The construction sector expected turns to grow eventhough local players be presured by eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries due to goverment new projects. Growth in the construction sector more than doubled to 6.4%, led mainly by the residential and civil engineering sub-sectors construction at first quarter 2012.


The acceleration of government project such as the remaining contracts for six packages of the elevated portion of the Sungai Buloh-Kajang (SBK) line, the RM7 billion West Coast Expressway (WCE), the RM7 billion electrified double tracking (EDT) from Gemas to Johor Baru and the RM30 billion Sarawak Corridor of Renewable Energy (SCORE),easily increase job oppurtunity in year 2012. 


Major infrastructure improvements in the Klang Valley such as the MRT (My Rapid Transit), River Rehabilitation and covered walkway projects are expected to boost property prices.


This sector estimate get no less than RM20 billion at the end of year 2012. The sector started strongly with RM5.9 billion job wins in the first quarter 2012, which was already 74.5 per cent of the total RM7.9 billion awarded at the year 2011. Government would progressively award contracts over the local players at third quarter 2012, to ensure the projects completed by July 2017. The construction sector is likely to have a banner year at year 2012 with up to RM20 billion worth of jobs to be awarded.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

 

Incorporated in 1980, the SC is a Private Limited company, focusing on manufacturer of ceramic floor tiles. The SC has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. The SC is well backed by a listed company shareholders which would stimulate further growth for the SC. Hence, the potential growth of the SC is positive. 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 1000 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.


Despite the higher turnover, the SC suffered pre-tax losses which reflected a highly competitive business environment. 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 is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 68,352,747, 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.


Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.


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)

CERAMICA INDAH 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

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

133,355,649

124,957,977

120,548,215

131,034,036

113,650,245

Other Income

2,667,980

2,857,376

-

-

-

 

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

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

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

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

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

Total Turnover

136,023,629

127,815,353

120,548,215

131,034,036

113,650,245

Costs of Goods Sold

<126,161,265>

<114,975,476>

-

-

-

 

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

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

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

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

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

Gross Profit

9,862,364

12,839,877

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

<2,768,167>

707,944

8,860,116

-

1,760,338

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

<2,768,167>

707,944

8,860,116

-

1,760,338

Taxation

<3,858,562>

<260,159>

0

<2,752,220>

-

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

<6,626,729>

447,785

8,860,116

<2,752,220>

1,760,338

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

54,351,874

53,904,089

46,043,973

51,296,193

49,535,855

 

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

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

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

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

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

As restated

54,351,874

53,904,089

46,043,973

51,296,193

49,535,855

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

47,725,145

54,351,874

54,904,089

48,543,973

51,296,193

DIVIDENDS - Ordinary (paid & proposed)

-

-

<1,000,000>

<2,500,000>

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

47,725,145

54,351,874

53,904,089

46,043,973

51,296,193

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

3,045

823

-

-

-

 

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

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

 

 

 

 

3,045

823

 

 

 

 

 

 

BALANCE SHEET

 

 

CERAMICA INDAH SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

35,334,980

38,552,660

42,988,134

47,829,944

52,650,678

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Subsidiary companies

2,055,879

2,055,879

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

2,055,879

2,055,879

0

2,055,879

2,055,879

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

37,390,859

40,608,539

42,988,134

49,885,823

54,706,557

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Contract work-in-progress

48,034,278

50,509,254

-

-

-

Trade debtors

5,966,784

6,788,552

-

-

-

Other debtors, deposits & prepayments

7,853,594

1,080,323

-

-

-

Deposits with financial institutions

4,310,913

2,511,200

-

-

-

Amount due from subsidiary companies

13,382,426

14,972,097

-

-

-

Cash & bank balances

5,457,224

5,988,672

-

-

-

Others

25,506

1,718,293

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

85,030,725

83,568,391

78,444,882

77,252,749

77,272,888

 

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

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

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

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

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

TOTAL ASSET

122,421,584

124,176,930

121,433,016

127,138,572

131,979,445

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

14,783,663

16,047,501

-

-

-

Other creditors & accruals

4,693,183

3,880,145

-

-

-

Other liabilities & accruals

212,067

-

-

-

-

Amounts owing to holding company

31,440,022

28,468,308

-

-

-

Provision for taxation

2,838,402

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

53,967,337

48,395,954

58,998,225

72,750,997

73,055,650

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

31,063,388

35,172,437

19,446,657

4,501,752

4,217,238

 

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

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

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

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

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

TOTAL NET ASSETS

68,454,247

75,780,976

62,434,791

54,387,575

58,923,795

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

20,000,000

20,000,000

7,000,000

7,000,000

7,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

20,000,000

20,000,000

7,000,000

7,000,000

7,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

-

-

-

627,602

-

Revaluation reserve

627,602

627,602

-

-

-

Retained profit/(loss) carried forward

47,725,145

54,351,874

54,531,791

46,043,973

51,296,193

Others

-

-

-

-

627,602

 

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

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

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

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

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

TOTAL RESERVES

48,352,747

54,979,476

54,531,791

46,671,575

51,923,795

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

68,352,747

74,979,476

61,531,791

53,671,575

58,923,795

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

101,500

801,500

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

101,500

801,500

903,000

716,000

0

 

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

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

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

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

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

 

68,454,247

75,780,976

62,434,791

54,387,575

58,923,795

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

CERAMICA INDAH SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

5,457,224

5,988,672

-

-

-

Net Liquid Funds

5,457,224

5,988,672

-

-

-

Net Liquid Assets

31,063,388

35,172,437

19,446,657

4,501,752

4,217,238

Net Current Assets/(Liabilities)

31,063,388

35,172,437

19,446,657

4,501,752

4,217,238

Net Tangible Assets

68,454,247

75,780,976

62,434,791

54,387,575

58,923,795

Net Monetary Assets

30,961,888

34,370,937

18,543,657

3,785,752

4,217,238

 

 

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

 

 

Total Liabilities

54,068,837

49,197,454

59,901,225

73,466,997

73,055,650

Total Assets

122,421,584

124,176,930

121,433,016

127,138,572

131,979,445

Net Assets

68,454,247

75,780,976

62,434,791

54,387,575

58,923,795

Net Assets Backing

68,352,747

74,979,476

61,531,791

53,671,575

58,923,795

Shareholders' Funds

68,352,747

74,979,476

61,531,791

53,671,575

58,923,795

Total Share Capital

20,000,000

20,000,000

7,000,000

7,000,000

7,000,000

Total Reserves

48,352,747

54,979,476

54,531,791

46,671,575

51,923,795

 

 

 

 

 

 

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.10

0.12

-

-

-

Liquid Ratio

1.58

1.73

-

-

-

Current Ratio

1.58

1.73

1.33

1.06

1.06

 

 

 

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

131

148

-

-

-

Debtors Ratio

16

20

-

-

-

Creditors Ratio

43

51

-

-

-

 

 

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

 

 

Liabilities Ratio

0.79

0.66

0.97

1.37

1.24

Times Interest Earned Ratio

<908.09>

861.20

-

-

-

Assets Backing Ratio

3.42

3.79

8.92

7.77

8.42

 

 

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

<2.08>

0.57

7.35

-

1.55

Net Profit Margin

<4.97>

0.36

7.35

<2.10>

1.55

Return On Net Assets

<4.04>

0.94

14.19

-

2.99

Return On Capital Employed

<4.04>

0.94

14.19

-

2.99

Return On Shareholders' Funds/Equity

<9.69>

0.60

14.40

<5.13>

2.99

Dividend Pay Out Ratio (Times)

-

-

0.11

0.91

-

 

 

 

 

 

 



FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

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.