MIRA INFORM REPORT

 

 

Report Date :

21.10.2013

 

IDENTIFICATION DETAILS

 

Name :

DUOPHARMA (M) SENDIRIAN BERHAD

 

 

Registered Office :

Menara Pnb, 201-A, Jalan Tun Razak, 13th Floor, 50400 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

14.10.1978

 

 

Com. Reg. No.:

42491-M

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturer of pharmaceutical products

 

 

No. of Employees :

500

 

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 – 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.

:

42491-M

COMPANY NAME

:

DUOPHARMA (M) SENDIRIAN BERHAD

FORMER NAME

:

N/A

INCORPORATION DATE

:

14/10/1978

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

MENARA PNB, 201-A, JALAN TUN RAZAK, 13TH FLOOR, 50400 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 2599, JALAN SERULING 59, KAWASAN 3, TAMAN KLANG JAYA, 41200 KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-33232759

FAX.NO.

:

03-33233923

CONTACT PERSON

:

KRISHNA KUMARA ( OPERATIONS MANAGER )

 

 

 

INDUSTRY CODE

:

21001

PRINCIPAL ACTIVITY

:

MANUFACTURING OF PHARMACEUTICAL PRODUCTS

AUTHORISED CAPITAL

:

MYR 4,000,000.00 DIVIDED INTO 
ORDINARY SHARE 4,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,700,000.00 DIVIDED INTO 
ORDINARY SHARES 650,000 CASH AND 1,050,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 138,132,000 [2011]

NET WORTH

:

MYR 105,267,000 [2011]

 

 

 

STAFF STRENGTH

:

500 [2013]

BANKER (S)

:

EON BANK BHD
OCBC BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

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

 

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

 

The immediate holding company of the SC is CCM DUOPHARMA BIOTECH BERHAD, a company incorporated in MALAYSIA.

 

The ultimate holding company of the SC is PERMODALAN NASIONAL BERHAD, a company incorporated in MALAYSIA.

 

The penultimate holding company of the SC is CHEMICAL COMPANY MALAYSIA BERHAD, a company incorporated in MALAYSIA.

 

The intermediate holding company of the SC is CCM MARKETING 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

(%)

CCM DUOPHARMA BIOTECH BERHAD

LOT 2599 JALAN SERULING 59, KAWASAN 3, TAMAN KLANG JAYA, 41200 KLANG, SELANGOR, MALAYSIA.

524271

1,700,000.00

100.00

 

 

 

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

------

 

 

 

1,700,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. ABD RAHMAN BIN ABDULLAH THANI

Address

:

16, JALAN BU 12/9, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

650110-08-5311

Date of Birth

:

10/01/1965

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

30/06/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. LEONARD ARIFF BIN ABDUL SHATAR

Address

:

16, USJ 5/4, UEP SUBANG JAYA, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

7430532

New IC No

:

641203-10-7095

Date of Birth

:

03/12/1964

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

31/01/2008

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

KRISHNA KUMARA

 

Position

:

OPERATIONS MANAGER

 

 

 

 

 

2)

Name of Subject

:

AMERUEL FEISAL

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

SHIRLEY TAN

 

Position

:

SENIOR MANAGER

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

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

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. NOOR AZWAH BINTI SAMSUDIN

 

IC / PP No

:

A1846226

 

New IC No

:

710407-10-6568

 

Address

:

41, JALAN IMPIAN GEMILANG 1/7, SAUJANA IMPIAN, 43000 KAJANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

EON BANK BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

26/11/1979

N/A

UNITED ASIAN BANK BERHAD

MYR 100,000.00

Satisfied

2

20/03/1980

N/A

UNITED ASIAN BANK BERHAD

MYR 180,000.00

Satisfied

3

28/04/1981

N/A

UNITED ASIAN BANK BERHAD

MYR 150,000.00

Satisfied

4

07/07/1982

N/A

UNITED ASIAN BANK BERHAD

MYR 190,000.00

Satisfied

5

18/10/1983

N/A

UNITED ASIAN BANK BERHAD

MYR 800,000.00

Satisfied

6

18/09/1984

N/A

UNITED ASIAN BANK BHD

MYR 360,000.00

Satisfied

7

18/10/1985

N/A

UNITED ASIAN BANK BHD

MYR 390,000.00

Satisfied

8

26/11/1986

N/A

SOUTHERN BANK BHD

MYR 2,000,000.00

Satisfied

9

16/07/1987

N/A

ORIENTAL BANK BERHAD

MYR 1,000,000.00

Satisfied

10

08/07/1988

N/A

ARABMALAYSIAN BANK BERAHD

MYR 2,000,000.00

Satisfied

11

11/03/1989

N/A

ARABMALAYSIAN BANK BERAHD

MYR 1,500,000.00

Satisfied

12

15/02/1990

N/A

ARABMALAYSIAN BANK BERAHD

MYR 200,000.00

Satisfied

13

15/02/1990

N/A

ARABMALAYSIAN BANK BERHAD

MYR 3,500,000.00

Satisfied

14

30/11/1990

N/A

SECURITY PACIFIC ASIAN BANK LIMITED

MYR 1,500,000.00

Satisfied

15

25/04/1992

N/A

OCBC BANK MALAYSIA BERHAD

MYR 9,500,000.00

Satisfied

16

20/10/1992

N/A

ARABMALAYSIAN BANK BERAHD

MYR 3,000,000.00

Satisfied

17

16/02/1993

N/A

ARABMALAYSIAN BANK BERAHD

MYR 800,000.00

Satisfied

18

26/10/1994

N/A

ARABMALAYSIAN BANK BERHAD

MYR 8,000,000.00

Satisfied

19

18/01/1995

N/A

EON BANK BERHAD

MYR 14,000,000.00

Satisfied

20

18/01/1995

CHARGE

EON BANK BERHAD

MYR 14,000,000.00

Satisfied

22

26/04/1995

CHARGE

OCBC BANK MALAYSIA BERHAD

MYR 950,000.00

Unsatisfied

21

09/05/1995

CHARGE

OCBC BANK MALAYSIA BERHAD

MYR 11,250,000.00

Unsatisfied

23

14/12/1995

N/A

EON BANK BERHAD

MYR 270,000.00

Satisfied

24

17/01/1996

N/A

MALAYAN BANKING BHD

MYR 500,000.00

Satisfied

25

17/01/1996

N/A

MALAYAN BANKING BHD

MYR 1,200,000.00

Satisfied

26

23/06/1997

N/A

EON BANK BERHAD

MYR 1,400,000.00

Satisfied

27

30/09/1997

4TH & 5TH CHARGE

OCBC BANK MALAYSIA BERHAD

MYR 1,350,000.00

Unsatisfied

28

12/06/1999

N/A

MULTIPURPOSE BANK BERHAD

N/A

Satisfied

29

12/06/1999

N/A

MULTIPURPOSE BANK BERHAD

MYR 500,000.00

Satisfied

30

02/10/2000

N/A

BUMIPUTRACOMMERCE BANK BERHAD

MYR 24,226,000.00

Satisfied

31

13/10/2000

N/A

BUMIPUTRACOMMERCE BANK BERHAD

MYR 5,000,000.00

Satisfied

32

11/04/2001

N/A

HSBC BANK MALAYSIA BERHAD

N/A

Satisfied

 

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank against 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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

 

OPERATIONS

 

Products manufactured

:

PHARMACEUTICAL PRODUCTS

 

 

 

Competitor(s)

:

ALPHA BIOLOGICS SDN BHD
APEX HEALTHCARE BHD
SM PHARMACEUTICALS SDN BHD
Y.S.P. INDUSTRIES (M) SDN BHD

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

 

 

 

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

500

500

500

500

500

 

 

 

 

 

Branch

:

NO

 

 

Other Information:

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

The SC is doing manufacturing of tablets, capsules and other oral preparations and pharmaceutical trading company which imports and markets pharmaceutical products.

The SC's products includes childrens vitamins, cough preparation, eyedrops, health suppliments, pain reliever, sterile injectibles, haemodialysis and sterile irrigation solution, etc

We were informed that the SC is a licensed Malaysian manufacturer which has registered with the Drug Control Authority(DCA). 

These include various dosage forms including sterile injectables and non-sterile preparation such as tablets, capsules, galenicals and others.

The SC's pharmaceutical facilities and all aspects of pharmaceutical manufacturing processes are certified as current Good Manufacturing Practise by the National Pharmaceutical Control Bureau, Ministry of Health Malaysia and conform to standards of World Health Organization. 

Besides that the SC had built state-of-art sterile product manufacturing plant with most sophisticated of equipment imported from Germany and Italy.

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

3 33232759

Current Telephone Number

:

03-33232759

Match

:

NO

 

 

 

Address Provided by Client

:

LOT 2599 JALAN SERULINEG 59 KAWASAN 3 TAMAN KLANG JAYA 41200

Current Address

:

LOT 2599, JALAN SERULING 59, KAWASAN 3, TAMAN KLANG JAYA, 41200 KLANG, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


we contacted one of the Sc's staff from Admin Department. She provided some information of the SC.

The address provided is incomplete.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

24.11%

]

 

Return on Net Assets

:

Acceptable

[

21.15%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

119 Days

]

 

Debtor Ratio

:

Unfavourable

[

92 Days

]

 

Creditors Ratio

:

Favourable

[

11 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The SC had a favourable creditors' ratio where the SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.68 Times

]

 

Current Ratio

:

Favourable

[

3.18 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

:

Favourable

[

14.06 Times

]

 

Gearing Ratio

:

Favourable

[

0.10 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the SC's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the SC's profit margin. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. 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 : STRONG

 

 

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

21001 : Manufacture of medicinal active substances to be used for their pharmacological properties in the manufacture of medicaments 

 

 

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 1978, the SC is a Private Limited company, focusing on manufacturing of pharmaceutical products. Its long establishment in the market has allowed the SC to build up a good reputation and gain higher market share against its rivals. 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 capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future. 

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 500 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright. 

Financially, the SC registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. 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 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 105,267,000, the SC should be able to maintain its business in the near terms. 

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources. 

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

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

In view of the above favourable condition, we recommend credit be proceeded to the SC with favourable term.

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

DUOPHARMA (M) SENDIRIAN BERHAD

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

138,132,000

131,437,000

123,766,000

122,872,000

 

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

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

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

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

Total Turnover

138,132,000

131,437,000

123,766,000

122,872,000

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

32,837,000

33,087,000

38,729,000

35,734,000

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

32,837,000

33,087,000

38,729,000

35,734,000

Taxation

<7,462,000>

<6,110,000>

<7,981,000>

<8,102,000>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

25,375,000

26,977,000

30,748,000

27,632,000

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

88,628,000

73,219,000

61,171,000

45,439,000

Prior year adjustment

-

<8,000>

-

-

 

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

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

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

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

As restated

88,628,000

73,211,000

61,171,000

45,439,000

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

114,003,000

100,188,000

91,919,000

73,071,000

DIVIDENDS - Ordinary (paid & proposed)

<21,158,000>

<11,560,000>

<18,700,000>

<11,900,000>

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

92,845,000

88,628,000

73,219,000

61,171,000

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Others

2,515,000

2,696,000

-

-

 

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

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

 

 

 

2,515,000

2,696,000

 

 

 

 

 

BALANCE SHEET

 

 

DUOPHARMA (M) SENDIRIAN BERHAD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

95,977,000

100,249,000

74,840,000

55,369,000

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Investment properties

5,720,000

-

-

-

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

5,720,000

-

-

-

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

101,697,000

100,249,000

74,840,000

55,369,000

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

45,124,000

34,003,000

36,353,000

33,581,000

Trade debtors

34,678,000

34,203,000

33,317,000

31,205,000

Other debtors, deposits & prepayments

2,619,000

712,000

795,000

994,000

Short term deposits

8,016,000

19,189,000

21,150,000

12,000,000

Amount due from related companies

407,000

865,000

1,023,000

1,681,000

Cash & bank balances

455,000

1,338,000

5,417,000

6,002,000

Others

4,223,000

1,740,000

-

9,091,000

 

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

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

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

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

TOTAL CURRENT ASSETS

95,522,000

92,050,000

98,055,000

94,554,000

 

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

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

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

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

TOTAL ASSET

197,219,000

192,299,000

172,895,000

149,923,000

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

4,047,000

2,363,000

1,797,000

2,004,000

Other creditors & accruals

10,887,000

11,670,000

7,601,000

8,438,000

Short term borrowings/Term loans

8,334,000

8,334,000

6,251,000

-

Amounts owing to holding company

6,800,000

5,000,000

-

63,279,000

Amounts owing to related companies

-

367,000

239,000

3,943,000

Provision for taxation

-

473,000

4,000

-

Other liabilities

-

957,000

777,000

1,361,000

 

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

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

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

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

TOTAL CURRENT LIABILITIES

30,068,000

29,164,000

16,669,000

79,025,000

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

65,454,000

62,886,000

81,386,000

15,529,000

 

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

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

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

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

TOTAL NET ASSETS

167,151,000

163,135,000

156,226,000

70,898,000

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

1,700,000

1,700,000

1,700,000

1,700,000

 

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

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

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

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

TOTAL SHARE CAPITAL

1,700,000

1,700,000

1,700,000

1,700,000

 

 

 

 

 

RESERVES

 

 

 

 

Revaluation reserve

10,722,000

10,722,000

3,776,000

3,776,000

Retained profit/(loss) carried forward

92,845,000

88,628,000

73,219,000

61,171,000

 

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

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

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

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

TOTAL RESERVES

103,567,000

99,350,000

76,995,000

64,947,000

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

105,267,000

101,050,000

78,695,000

66,647,000

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

2,082,000

10,416,000

9,175,000

-

Deferred taxation

6,048,000

4,285,000

4,930,000

4,251,000

Others

53,754,000

47,384,000

63,426,000

-

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

61,884,000

62,085,000

77,531,000

4,251,000

 

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

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

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

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

 

167,151,000

163,135,000

156,226,000

70,898,000

 

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

DUOPHARMA (M) SENDIRIAN BERHAD

 

TYPES OF FUNDS

 

 

 

 

Cash

8,471,000

20,527,000

26,567,000

18,002,000

Net Liquid Funds

8,471,000

20,527,000

26,567,000

18,002,000

Net Liquid Assets

20,330,000

28,883,000

45,033,000

<18,052,000>

Net Current Assets/(Liabilities)

65,454,000

62,886,000

81,386,000

15,529,000

Net Tangible Assets

167,151,000

163,135,000

156,226,000

70,898,000

Net Monetary Assets

<41,554,000>

<33,202,000>

<32,498,000>

<22,303,000>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

10,416,000

18,750,000

15,426,000

0

Total Liabilities

91,952,000

91,249,000

94,200,000

83,276,000

Total Assets

197,219,000

192,299,000

172,895,000

149,923,000

Net Assets

167,151,000

163,135,000

156,226,000

70,898,000

Net Assets Backing

105,267,000

101,050,000

78,695,000

66,647,000

Shareholders' Funds

105,267,000

101,050,000

78,695,000

66,647,000

Total Share Capital

1,700,000

1,700,000

1,700,000

1,700,000

Total Reserves

103,567,000

99,350,000

76,995,000

64,947,000

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.28

0.70

1.59

0.23

Liquid Ratio

1.68

1.99

3.70

0.77

Current Ratio

3.18

3.16

5.88

1.20

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

119

94

107

100

Debtors Ratio

92

95

98

93

Creditors Ratio

11

7

5

6

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.10

0.19

0.20

0.00

Liabilities Ratio

0.87

0.90

1.20

1.25

Times Interest Earned Ratio

14.06

13.27

0.00

0.00

Assets Backing Ratio

98.32

95.96

91.90

41.70

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

23.77

25.17

31.29

29.08

Net Profit Margin

18.37

20.52

24.84

22.49

Return On Net Assets

21.15

21.93

24.79

50.40

Return On Capital Employed

21.15

21.93

24.79

50.40

Return On Shareholders' Funds/Equity

24.11

26.70

39.07

41.46

Dividend Pay Out Ratio (Times)

0.83

0.43

0.61

0.43

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.28

UK Pound

1

Rs.99.03

Euro

1

Rs.83.80

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

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.