MIRA INFORM REPORT

 

 

Report Date :

11.05.2013

 

IDENTIFICATION DETAILS

 

Name :

Castco SDN. BHD.

 

 

Registered Office :

Unit C-6-5, Block C, Megan Avenue II, 12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

10.03.2010

 

 

Com. Reg. No.:

892641-H

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing of Products Involving the Process of Aluminium Die-Casting

 

 

No. of Employees :

40

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. 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 about 35% of government revenue in 2011. Bank Negera Malaysia (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.

:

892641-H

COMPANY NAME

:

CASTCO SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

10/03/2010

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

UNIT C-6-5, BLOCK C, MEGAN AVENUE II, 12, JALAN YAP KWAN SENG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 8057, JALAN 4D, KG BARU SUBANG, SEKSYEN U6, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78591198

FAX.NO.

:

03-78591178

CONTACT PERSON

:

NG HWA CHAN ( DIRECTOR )

INDUSTRY CODE

:

25994

PRINCIPAL ACTIVITY

:

MANUFACTURING OF PRODUCTS INVOLVING THE PROCESS OF ALUMINIUM DIE-CASTING

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

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

 

 

 

SALES

:

MYR 1,148,697 [2011]

NET WORTH

:

MYR 995,428 [2011]

 

 

 

STAFF STRENGTH

:

40 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

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 of products involving the process of aluminium die-casting.

 

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

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. NG HWA CHAN +

32 JALAN KELAB GOLF 13/5, SEKSYEN 13, 40100 SHAH ALAM, SELANGOR, MALAYSIA.

480602-10-5383 1195625

1,000,000.00

40.00

WU CHIA-HAO +

15, 9TH ROAD, LIN KOU 2ND INDUSTRIAL DISTRICT, LIN KOU SHIANG, TAIPEI, TAIWAN, TAIWAN.

132503479

375,000.00

15.00

MR. TOO CHOON HUA +

308, JALAN BALAI RAYA, BAKRI N/V, 84200 MUAR, JOHOR, MALAYSIA.

670730-01-5873 A0751042

375,000.00

15.00

MR. NG GHEE SOON +

8, JALAN SUNGAI RAMAL, 32/54A, BUKIT RIMAU, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

741124-10-5815 A2878179

375,000.00

15.00

MR. NG GHEE HOONG +

55, LORONG BATU NILAM 20F, BANDAR BUKIT TINGGI, 41200 KLANG, SELANGOR, MALAYSIA.

740902-10-5041 A2839032

375,000.00

15.00

 

 

 

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

------

 

 

 

2,500,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

Directors

 

DIRECTOR 1

 

Name Of Subject

:

MR. NG GHEE SOON

Address

:

8, JALAN SUNGAI RAMAL, 32/54A, BUKIT RIMAU, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

A2878179

New IC No

:

741124-10-5815

Date of Birth

:

24/11/1974

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

10/03/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

WU CHIA-HAO

Address

:

15, 9TH ROAD, LIN KOU 2ND INDUSTRIAL DISTRICT, LIN KOU SHIANG, TAIPEI, TAIWAN, TAIWAN.

IC / PP No

:

132503479

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

10/03/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. TOO CHOON HUA

Address

:

308, JALAN BALAI RAYA, BAKRI N/V, 84200 MUAR, JOHOR, MALAYSIA.

IC / PP No

:

A0751042

New IC No

:

670730-01-5873

Date of Birth

:

30/07/1967

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

10/03/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. NG GHEE HOONG

Address

:

55, LORONG BATU NILAM 20F, BANDAR BUKIT TINGGI, 41200 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

A2839032

New IC No

:

740902-10-5041

Date of Birth

:

02/09/1974

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

10/03/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. NG HWA CHAN

Address

:

32 JALAN KELAB GOLF 13/5, SEKSYEN 13, 40100 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

1195625

New IC No

:

480602-10-5383

Date of Birth

:

02/06/1948

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

15/03/2011

 

 

 

 

 

 

 

 

 

 

 

 


MANAGEMENT

 

1)

Name of Subject

:

NG HWA CHAN

 

Position

:

DIRECTOR

 

 

Auditor

 

Auditor

:

ONG & WONG

Auditor' Address

:

UNIT C-20-5, MEGAN AVENUE II, 12, JALAN YAP KWAN SENG, 20TH FLOOR, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

Company Secretaries

 

1)

Company Secretary

:

MS. WONG SHAN MAY

 

IC / PP No

:

A0697742

 

New IC No

:

670516-10-6184

 

Address

:

5, JALAN BUKIT MEWAH 6, TAMAN BUKIT MEWAH, 43000 KAJANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

BANKING

 

 

 

 

 


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

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

 

 

ENCUMBRANCE (S)


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

 

 

LEGAL CHECK AGAINST SC


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

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SC


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

 

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


PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 


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

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA
EUROPE

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

ALUMINIUM DIE-CASTING

 

 

 

Competitor(s)

:

SHOWA DENKO HD (MALAYSIA) SDN BHD

 

 

 

 

 

Total Number of Employees:

YEAR

2013

2011

GROUP

N/A

N/A

COMPANY

40

25

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of products involving the process of aluminium die-casting.

The SC undertakes aluminium die-casting for the following industries:

* Houshold appliances

* Oil and gas equipment

* Engineering equipment

The SC provides the services according to its customers' requirements.

 

 

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

:

03-78591198

Match

:

N/A

Address Provided by Client

:

UNITC-6-6 6TH FLOOR BLOCK C MEGAN AVENUE 11, NO 12 JALAN YAP KWAN SENG 50450 KUALA LUMPUR MALAYSIA

Current Address

:

LOT 8057, JALAN 4D, KG BARU SUBANG, SEKSYEN U6, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


On 8th May 2013 we contacted one of the staff from the SC and she provided some information on the SC.

The SC refused to disclose the SC's main customers and suppliers as it is confidential.

 

 

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

623.92%

]

 

Profit/(Loss) Before Tax

:

Increased

[

<73.61%>

]

 

Return on Shareholder Funds

:

Unfavourable

[

<95.91%>

]

 

Return on Net Assets

:

Unfavourable

[

<95.91%>

]

 

 

 

 

 

 

 

 

The increase in turnover could be due to the SC adopting an aggressive marketing strategy.Higher losses before tax during the year could be due to the higher operating costs incurred. 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

[

54 Days

]

 

Debtor Ratio

:

Unfavourable

[

67 Days

]

 

Creditors Ratio

:

Favourable

[

46 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the SC was weak in its credit control. However, the SC could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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

[

0.24 Times

]

 

Current Ratio

:

Unfavourable

[

0.31 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

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was nil as it did not pay any interest during the year. 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. 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 did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. 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:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

<0.5>

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

<2.7>

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

<17.2>

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

<1.2>

Investment ( % )

8.0

2.8

<0.3>

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

<28,450>

<40,482>

<45,511>

<42,297>

<39,993>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<5.6>

<5.4>

<4.5>

<4.0>

Inflation ( % Change in Composite CPI)

<5.2>

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

<0.1>

6.2

3.0

<0.0>

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

<34.5>

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

<1.1>

<3.4>

10.8

<2.8>

-

Rubber

<19.8>

9.9

6.1

<0.6>

-

Forestry & Logging

<5.9>

<3.3>

<7.6>

<2.2>

-

Fishing

5.5

5.6

2.1

<0.7>

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

<3.8>

0.2

<5.7>

1.5

2.7

Oil & Gas

2.1

0.5

<1.7>

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

<9.4>

11.4

4.7

4.2

4.9

Exported-oriented Industries

<19.0>

12.1

2.8

4.1

-

Electrical & Electronics

<30.3>

28.4

<4.9>

1.6

-

Rubber Products

<10.1>

25.3

15.4

3.6

-

Wood Products

<24.1>

20.1

<4.9>

4.6

-

Textiles & Apparel

<19.5>

<0.4>

14.8

<7.1>

-

Domestic-oriented Industries

<9.8>

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

<7.7>

16.2

5.5

9.9

-

Plastic Products

<9.1>

2.4

3.8

-

-

Iron & Steel

<32.7>

29.3

2.4

-

-

Fabricated Metal Products

<2.5>

14.9

25.2

-

-

Non-metallic Mineral

<15.5>

20.2

27.1

6.6

-

Transport Equipment

<13.5>

36.5

<10.4>

13.7

-

Paper & Paper Products

<5.0>

18.7

14.8

<7.8>

-

Crude Oil Refineries

0.2

<11.4>

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)


INDUSTRY ANALYSIS

 

MSIC CODE

25994 : Manufacture of metal household articles

 

 

INDUSTRY :

MANUFACTURING

 

 

 


The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domesticoriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand.


Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first sevenmonths of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domesticoriented industries continued to expand 8.6% while export-oriented industries grew 4.1%.


According to the Department of Statistics, the sales value of the Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion) to record RM52.4 billion as compared to RM48.8 billion reported in year 2012. Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2 billion) as compared with the preceding month. The sales value in December 2012 has been revised positive 7.5% year-on-year to record RM52.6 billion.


Output of rubber products increased 3.6% in the first seven month of 2012 mainly supported by continuous demand for rubber gloves. Output of rubber gloves grew 5.9% on account of the expansion in the global healthcare industry and wider usage of gloves in other sectors. Similarly, output of catheters, especially for use in medical appliances, also registered a strong growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in tandem with slowing external demand from the automotive industry, especially China.


Meanwhile, production of wood and wood products rebounded 4.6% largely supported by higher demand for wooden and cane furniture (33.5%). The positive performance was attributed to vibrant higher demand from major export destinations such as China and the United States (US) for Malaysian-made furniture. Demand from China accelerated further following the country's rising income level and the implementation of zero import duty on Malaysian made-furniture. 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.


The output of chemicals and chemical products rose 9.9% in the first seven month of year 2012 on account of increasing demand for plastic products (11.8%) and basic chemicals (11.1%). External demand for plastic packaging materials surged during the early part of the year 2012, particularly from Japan and Thailand, as manufacturers resumed operations, which were interrupted by natural calamities and power outages. Chemical production are expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.


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 assolar 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 2010, the SC is a Private Limited company, focusing on manufacturing of products involving the process of aluminium die-casting. The SC has been in business for 3 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. With a weak shareholders' backing, the SC's capital position is weak. The capital standing of the SC is fair.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. The SC is operating on a medium scale and it has approximately 40 employees in its business operations. Overall, we regard that the SC's management capability is average.


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. A zero gearing ratio indicates that the SC is mainly dependent on its internal funds to finance its business. Overall financial performance of the SC is limited.


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.


Overall, the SC's payment habit is average.


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. Nonetheless, the SC should adopt better competitive strategies in order to sustain its business position and to compete with other well established players in the same industry.


As the SC suffered huge accumulated losses of MYR 1,504,572, we only recommend credit be proceeded to the SC with guarantee.



PROFIT AND LOSS ACCOUNT

 

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

CASTCO SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

Months

12

10

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

 

 

 

TURNOVER

1,148,697

158,677

 

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

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

Total Turnover

1,148,697

158,677

Costs of Goods Sold

<1,766,435>

<479,886>

 

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

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

Gross Profit

<617,738>

<321,209>

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

<954,676>

<549,896>

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

<954,676>

<549,896>

 

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

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

PROFIT/(LOSS) AFTER TAXATION

<954,676>

<549,896>

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

<549,896>

-

 

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

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

As restated

<549,896>

-

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<1,504,572>

<549,896>

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<1,504,572>

<549,896>

 

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

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

 

 

BALANCE SHEET

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

2,649,417

1,402,843

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

2,649,417

1,402,843

 

 

 

CURRENT ASSETS

 

 

Stocks

169,261

68,927

Trade debtors

210,753

47,182

Other debtors, deposits & prepayments

262,080

102,882

Cash & bank balances

107,811

53,536

 

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

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

TOTAL CURRENT ASSETS

749,905

272,527

 

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

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

TOTAL ASSET

3,399,322

1,675,370

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

224,294

95,936

Other creditors & accruals

939,074

379,330

Amounts owing to director

1,240,526

250,000

 

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

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

TOTAL CURRENT LIABILITIES

2,403,894

725,266

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

<1,653,989>

<452,739>

 

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

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

TOTAL NET ASSETS

995,428

950,104

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

2,500,000

1,500,000

 

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

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

TOTAL SHARE CAPITAL

2,500,000

1,500,000

 

 

 

RESERVES

 

 

Retained profit/(loss) carried forward

<1,504,572>

<549,896>

 

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

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

TOTAL RESERVES

<1,504,572>

<549,896>

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

995,428

950,104

 

 

 

 

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

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

 

995,428

950,104

 

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

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

 

 

 

 

 

FINANCIAL RATIO

 

 

 

 

 

 

 

 

 

 

 

TYPES OF FUNDS

 

 

Cash

107,811

53,536

Net Liquid Funds

107,811

53,536

Net Liquid Assets

<1,823,250>

<521,666>

Net Current Assets/(Liabilities)

<1,653,989>

<452,739>

Net Tangible Assets

995,428

950,104

Net Monetary Assets

<1,823,250>

<521,666>

BALANCE SHEET ITEMS

 

 

Total Borrowings

0

0

Total Liabilities

2,403,894

725,266

Total Assets

3,399,322

1,675,370

Net Assets

995,428

950,104

Net Assets Backing

995,428

950,104

Shareholders' Funds

995,428

950,104

Total Share Capital

2,500,000

1,500,000

Total Reserves

<1,504,572>

<549,896>

LIQUIDITY (Times)

 

 

Cash Ratio

0.04

0.07

Liquid Ratio

0.24

0.28

Current Ratio

0.31

0.38

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

54

159

Debtors Ratio

67

109

Creditors Ratio

46

73

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.00

0.00

Liabilities Ratio

2.41

0.76

Times Interest Earned Ratio

0.00

0.00

Assets Backing Ratio

0.40

0.63

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

<83.11>

<346.55>

Net Profit Margin

<83.11>

<346.55>

Return On Net Assets

<95.91>

<57.88>

Return On Capital Employed

<95.91>

<57.88>

Return On Shareholders' Funds/Equity

<95.91>

<57.88>

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.54

UK Pound

1

Rs.84.19

Euro

1

Rs.71.11

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.