MIRA INFORM REPORT

 

 

Report Date :

29.03.2013

 

IDENTIFICATION DETAILS

 

Name :

CONTINENTAL TYRE PJ MALAYSIA SDN. BHD.

 

 

Formerly Known As :

CONTINENTAL SIME TYRE PJ SDN BHD (10/07/2012)

 

 

Registered Office :

2 Jalan Tandang, 46050 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

12.07.1961

 

 

Com. Reg. No.:

4296-K

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing and trading of tyres

 

 

No. of Employees :

1,106 [2013]

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

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.

:

4296-K

COMPANY NAME

:

CONTINENTAL TYRE PJ MALAYSIA SDN. BHD.

FORMER NAME

:

CONTINENTAL SIME TYRE PJ SDN BHD (10/07/2012)
DMIB SDN BHD (13/07/2005)
DMIB BHD (03/06/2005)
DUNLOP MALAYSIAN INDUSTRIES BHD (05/08/1988)
DUNLOP MALAYAN INDUSTRIES BHD (02/05/1968)

INCORPORATION DATE

:

12/07/1961

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

2 JALAN TANDANG, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

2 JALAN TANDANG, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-77878888

FAX.NO.

:

03-77835216

EMAIL

:

SALMAH.HASNI@CONTI-SIME.COM

WEB SITE

:

WWW.CONTI-SIME.COM

CONTACT PERSON

:

BENOIT H.G.M. HENRY ( CEO )

 

 

 

INDUSTRY CODE

:

22111

PRINCIPAL ACTIVITY

:

MANUFACTURING AND TRADING OF TYRES

AUTHORISED CAPITAL

:

MYR 200,000,000.00 DIVIDED INTO 
ORDINARY SHARE 400,000,000.00 OF MYR 0.50 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 168,404,679.00 DIVIDED INTO 
ORDINARY SHARES 195,209,358 CASH AND 141,600,000 OTHERWISE OF MYR 0.50 EACH.

 

 

 

SALES

:

MYR 1,291,700,000 [2011]

NET WORTH

:

MYR 124,511,000 [2011]

M1000 OVERALL RANKING

:

406[2011]

M1000 INDUSTRY RANKING

:

7[2011]

 

 

 

STAFF STRENGTH

:

1,106 [2013]

BANKER (S)

:

MALAYAN BANKING BHD
STANDARD CHARTERED BANK MALAYSIA BHD

LITIGATION

:

TRACED

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

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) manufacturing and trading of tyres.

 

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

2009

2008

2005

2004

 

OVERALL RANKING

406

580

521

314

287

 

INDUSTRY RANKING

7

14

10

1

1

 

 

The immediate holding company of the SC is CONTINENTAL TYRE MALAYSIA SDN. BHD., a company incorporated in MALAYSIA.

 

The ultimate holding company of the SC is CONTINENTAL AKTIENGESELLSCHAFT, a company incorporated in GERMANY.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

CONTINENTAL TYRE MALAYSIA SDN. BHD.

NO.2, JALAN TANDANG, TINGKAT 2, SIME DARBY TECHNOLOGY CENTRE BUILDING, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

580442

336,809,358.00

100.00

 

 

 

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

------

 

 

 

336,809,358.00

100.00

 

 

 

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

=====

+ Also Director

 

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

Local No

Country

Company

(%)

As At

449748

MALAYSIA

CONTINENTAL TYRE TECHNOLOGY CENTRE MALAYSIA SDN. BHD.

100

31/12/2011

 

 

 

 

 

 

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. BENOIT HENRI GHISLAIN MARIE HENRY

Address

:

NO.90, JALAN SETIA MURNI 6, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

EH458316

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

11/05/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

ANTONIO MANUEL MONICA LOPES DE SEABRA

Address

:

PRINCE HILLS, 111 ZHEN NING LU, BL. 2, APT. 802, 200050 SHANGHAI, CHINA

IC / PP No

:

G925238

 

 

 

 

 

 

 

 

 

Nationality

:

CHINESE

Date of Appointment

:

07/06/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

SONKE SCHICKE

Address

:

XIKANG ROAD 501,BUILDING 4, APARTMENT 2903 JING AN DISTRICT, SHANGHAI 200040 CHINA

IC / PP No

:

C4FJ9PYT4

 

 

 

 

 

 

 

 

 

Nationality

:

CHINESE

Date of Appointment

:

07/06/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MS. HOE LOO FEN

Address

:

NO.37, TAMAN JOHAN FASA 2, JALAN KUALA KEDAH, 05400 ALOR SETAR, KEDAH, MALAYSIA.

 

 

 

New IC No

:

670727-02-5042

Date of Birth

:

27/07/1967

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

16/11/2012

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

BENOIT H.G.M. HENRY

 

Position

:

CEO

 

 

 

 

 

2)

Name of Subject

:

LEE GEOK KIM

 

Position

:

HEAD OF FINANCE

 

 

 

 

 

3)

Name of Subject

:

LIAN CHIN LI

 

Position

:

ASSISTANT MARKETING MANAGER

 

 

 

 

 

4)

Name of Subject

:

VICTOR SIEW

 

Position

:

HEAD OF MARKETING

 

 

 

 

 

5)

Name of Subject

:

AMELIA LIM

 

Position

:

MARKETING MANAGER

 

 

 

 

 

6)

Name of Subject

:

CHOONG KEE SENG

 

Position

:

SALES DIRECTOR

 

 

 

 

 

7)

Name of Subject

:

SALMAH

 

Position

:

SECRETARY

 

 

 

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. TAI YIT CHAN

 

 

 

 

 

New IC No

:

690118-10-6160

 

Address

:

LOT 6.05, LEVEL 6 KPMG TOWER, 8 FIRST AVENUE, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. LIEW ENE

 

 

 

 

 

New IC No

:

700227-10-5112

 

Address

:

LOT 32, JALAN KUARI, KAMPUNG CHERAS BARU, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

2)

Name

:

STANDARD CHARTERED 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 against the SC whether the subject has been involved in any litigation. 

LEGAL ACTION

 

 

 

Code No

:

99

Case No

:

1853

Year

:

2003

Place

:

KUALA LUMPUR

Court

:

HIGH COURT

 

 

 

Solicitor

:

WONG & ASSOCIATES

 

 

 

Plaintiff

:

KP ASIA AUTO LOGISTICS SDN BHD

 

 

 

Defendants

:

CONTINENTAL TYRE PJ MALAYSIA SDN. BHD. (4296)

2 JALAN TANDANG, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

Amount Claimed

:

1,070,000.00

 

 

 

 

 

 

 

 

Nature of Claim

:

MYR

 

 

 

 

 

 

 

 

Remark

:

GDS SOLD & DELIVERED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Code No

:

99

Case No

:

2050

 

 

 

 

 

Year

:

2003

Place

:

KUALA LUMPUR

 

 

 

 

 

Court

:

HIGH COURT

 

 

 

 

 

 

 

 

Solicitor

:

WONG & ASSOCIATES

 

 

 

 

 

 

 

 

Plaintiff

:

KP ASIA UTO LOGISTICS SDN BHD

 

 

 

Defendants

:

CONTINENTAL TYRE PJ MALAYSIA SDN. BHD. (4296)

2 JALAN TANDANG, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

Amount Claimed

:

1,010,000.00

 

 

 

 

 

 

 

 

Nature of Claim

:

MYR

 

 

 

 

 

 

 

 

Remark

:

GDS SOLD & DELIVERED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person wo has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.

 

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

:

CHINA,EUROPE,UNITED STATES



According to our trade survey and the historical financial accounts, we are of the opinion that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

SAUDI ARABIA

BRAZIL

UNITED STATES

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

Type of Customer

:

DEALERS,DISTRIBUTORS

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

TYRES

 

 

 

Goods Traded

:

TYRES

 

 

 

 

Award

:

1 ) MS ISO 14001 Year :2004
2 ) QUALITY MANAGEMENT EXCELLENCE AWARD BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2003
3 ) PRODUCT EXCELLENCE AWARD BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2002
4 ) OHSAS 18001 Year :2002
5 ) MS ISO 9001 : 2000 Year :1991

 

 

 

 

 

 

 

 

Certification of Products

:

1 ) MS 149:1992

 

 

 

 

Competitor(s)

:

CONTINENTAL TYRE AS MALAYSIA SDN. BHD.
EVERTHROUGH RUBBER PRODUCTS SDN BHD
FRIENDSHIP RUBBER INDUSTRY (MALAYSIA) SDN BHD
GOODYEAR MALAYSIA BERHAD
SILVERSTONE BERHAD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

SMALL & MEDIUM ENTERPRISE

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

MALAYSIA LOGISTICS INDUSTRY

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

1,106

1,190

1,280

1,350

1,200

 

 

 

 

 

Branch

:

YES

 

No of Branches

:

8

 

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing and trading of tyres. 

We were informed that the SC is under the Continental Sime Tyres Sdn Bhd and is a part of the Continental Group. 

The SC produces a wide range of light truck, medium commercial truck and bus radial steel tyres.

The SC utilizes advanced automated and semi-automated machineries to ensure production of high quality products.

Besides that the SC has related manufacturing plant located in Alor Setar, Kedah.

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-77878888

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 2 JALAN TANDANG, 46050 PETALING JAYA SELANGOR DARUL EHSAN

Current Address

:

2 JALAN TANDANG, 46050 PETALING JAYA, SELANGOR, 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

[

<8.69%>

]

 

Return on Net Assets

:

Unfavourable

[

<5.07%>

]

 

 

 

 

 

 

 

 

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 could be more efficient in controlling its operating costs and had managed to reduce its losses during the year. 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

:

Favourable

[

34 Days

]

 

Debtor Ratio

:

Favourable

[

44 Days

]

 

Creditors Ratio

:

Favourable

[

29 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Unfavourable

[

0.74 Times

]

 

Current Ratio

:

Unfavourable

[

1.01 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

:

Unfavourable

[

<1.45 Times>

]

 

Gearing Ratio

:

Favourable

[

0.73 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 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 :

 

 

 

 

 

 

The higher turnover had helped to reduce the SC's losses. 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'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 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 : 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

22111 : Manufacture of rubber tyres for vehicles

 

 

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 1961, the SC is a Private Limited company, focusing on manufacturing and trading of tyres. 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. 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 1,106 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.


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. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. Being a 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 124,511,000, the SC should be able to maintain its business in the near terms.


Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth . The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. 


The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.


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


In view of the above, we recommend credit be granted to the SC with close monitoring.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

CONTINENTAL TYRE PJ 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

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

1,291,700,000

1,068,213,000

884,986,000

493,280,000

529,408,000

 

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

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

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

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

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

Total Turnover

1,291,700,000

1,068,213,000

884,986,000

493,280,000

529,408,000

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

<15,546,000>

<28,425,000>

<22,171,000>

8,158,000

11,873,000

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

<15,546,000>

<28,425,000>

<22,171,000>

8,158,000

11,873,000

Taxation

4,731,000

<15,793,000>

4,953,000

18,296,000

<2,119,000>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

<10,815,000>

<44,218,000>

<17,218,000>

26,454,000

9,754,000

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

<33,079,000>

11,139,000

40,457,000

29,197,000

28,397,000

 

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

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

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

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

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

As restated

<33,079,000>

11,139,000

40,457,000

29,197,000

28,397,000

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<43,894,000>

<33,079,000>

23,239,000

55,651,000

38,151,000

DIVIDENDS - Ordinary (paid & proposed)

-

-

<12,100,000>

<15,194,000>

<8,954,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<43,894,000>

<33,079,000>

11,139,000

40,457,000

29,197,000

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Lease interest

2,012,000

2,309,000

2,490,000

2,669,000

2,746,000

Others

4,326,000

4,080,000

4,332,000

3,124,000

2,825,000

 

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

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

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

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

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

 

6,338,000

6,389,000

6,822,000

5,793,000

5,571,000

 

 

 

BALANCE SHEET

 

 

CONTINENTAL TYRE PJ MALAYSIA SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

147,707,000

164,204,000

193,076,000

221,100,000

252,278,000

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Subsidiary companies

10,193,000

10,193,000

10,193,000

15,774,000

16,420,000

Deferred assets

20,198,000

15,412,000

31,205,000

26,318,000

8,022,000

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

30,391,000

25,605,000

41,398,000

42,092,000

24,442,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

178,098,000

189,809,000

234,474,000

263,192,000

276,720,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

118,832,000

88,708,000

87,501,000

56,665,000

45,262,000

Trade debtors

155,171,000

134,298,000

122,189,000

185,000

80,000

Other debtors, deposits & prepayments

11,317,000

7,782,000

12,729,000

7,317,000

3,613,000

Amount due from holding company

-

-

-

-

839,000

Amount due from subsidiary companies

-

-

-

90,942,000

76,841,000

Amount due from related companies

99,225,000

52,359,000

37,295,000

30,464,000

39,104,000

Cash & bank balances

43,967,000

75,191,000

74,813,000

11,496,000

11,133,000

Others

15,248,000

6,250,000

4,420,000

801,000

5,223,000

 

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

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

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

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

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

TOTAL CURRENT ASSETS

443,760,000

364,588,000

338,947,000

197,870,000

182,095,000

 

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

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

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

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

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

TOTAL ASSET

621,858,000

554,397,000

573,421,000

461,062,000

458,815,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

101,242,000

85,801,000

57,367,000

28,347,000

32,786,000

Other creditors & accruals

67,370,000

70,854,000

62,888,000

19,165,000

23,596,000

Hire purchase & lease creditors

3,770,000

3,556,000

3,355,000

3,165,000

2,986,000

Short term borrowings/Term loans

30,000,000

30,000,000

30,000,000

95,000,000

70,000,000

Bill & acceptances payable

31,600,000

27,400,000

18,000,000

-

-

Amounts owing to holding company

-

-

12,100,000

21,245,000

-

Amounts owing to subsidiary companies

-

-

53,000

12,295,000

42,659,000

Amounts owing to related companies

145,068,000

96,187,000

101,856,000

1,513,000

3,066,000

Dividends payable/proposed

-

-

-

-

8,954,000

Other liabilities

61,075,000

44,266,000

43,671,000

3,500,000

6,003,000

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

440,125,000

358,064,000

329,290,000

184,230,000

190,050,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

3,635,000

6,524,000

9,657,000

13,640,000

<7,955,000>

 

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

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

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

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

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

TOTAL NET ASSETS

181,733,000

196,333,000

244,131,000

276,832,000

268,765,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

168,405,000

168,405,000

168,405,000

168,405,000

168,405,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

168,405,000

168,405,000

168,405,000

168,405,000

168,405,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

<43,894,000>

<33,079,000>

11,139,000

40,457,000

29,197,000

 

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

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

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

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

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

TOTAL RESERVES

<43,894,000>

<33,079,000>

11,139,000

40,457,000

29,197,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

124,511,000

135,326,000

179,544,000

208,862,000

197,602,000

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Lease obligations

57,051,000

60,821,000

64,377,000

67,732,000

70,897,000

Retirement benefits provision

171,000

186,000

210,000

238,000

266,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

57,222,000

61,007,000

64,587,000

67,970,000

71,163,000

 

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

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

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

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

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

 

181,733,000

196,333,000

244,131,000

276,832,000

268,765,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

CONTINENTAL TYRE PJ MALAYSIA SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

43,967,000

75,191,000

74,813,000

11,496,000

11,133,000

Net Liquid Funds

43,967,000

75,191,000

74,813,000

11,496,000

11,133,000

Net Liquid Assets

<115,197,000>

<82,184,000>

<77,844,000>

<43,025,000>

<53,217,000>

Net Current Assets/(Liabilities)

3,635,000

6,524,000

9,657,000

13,640,000

<7,955,000>

Net Tangible Assets

181,733,000

196,333,000

244,131,000

276,832,000

268,765,000

Net Monetary Assets

<172,419,000>

<143,191,000>

<142,431,000>

<110,995,000>

<124,380,000>

 

 

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

90,821,000

94,377,000

97,732,000

165,897,000

143,883,000

Total Liabilities

497,347,000

419,071,000

393,877,000

252,200,000

261,213,000

Total Assets

621,858,000

554,397,000

573,421,000

461,062,000

458,815,000

Net Assets

181,733,000

196,333,000

244,131,000

276,832,000

268,765,000

Net Assets Backing

124,511,000

135,326,000

179,544,000

208,862,000

197,602,000

Shareholders' Funds

124,511,000

135,326,000

179,544,000

208,862,000

197,602,000

Total Share Capital

168,405,000

168,405,000

168,405,000

168,405,000

168,405,000

Total Reserves

<43,894,000>

<33,079,000>

11,139,000

40,457,000

29,197,000

 

 

 

 

 

 

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.10

0.21

0.23

0.06

0.06

Liquid Ratio

0.74

0.77

0.76

0.77

0.72

Current Ratio

1.01

1.02

1.03

1.07

0.96

 

 

 

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

34

30

36

42

31

Debtors Ratio

44

46

50

0

0

Creditors Ratio

29

29

24

21

23

 

 

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.73

0.70

0.54

0.79

0.73

Liabilities Ratio

3.99

3.10

2.19

1.21

1.32

Times Interest Earned Ratio

<1.45>

<3.45>

<2.25>

2.41

3.13

Assets Backing Ratio

1.08

1.17

1.45

1.64

1.60

 

 

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

<1.20>

<2.66>

<2.51>

1.65

2.24

Net Profit Margin

<0.84>

<4.14>

<1.95>

5.36

1.84

Return On Net Assets

<5.07>

<11.22>

<6.29>

5.04

6.49

Return On Capital Employed

<4.96>

<11.02>

<6.20>

4.98

6.42

Return On Shareholders' Funds/Equity

<8.69>

<32.68>

<9.59>

12.67

4.94

Dividend Pay Out Ratio (Times)

-

-

0.70

0.57

0.92

 

 

 

 

 

 

 

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.