MIRA INFORM REPORT

 

 

Report Date :

02.09.2013

 

IDENTIFICATION DETAILS

 

Name :

TENCATE GEOSYNTHETICS ASIA SDN. BHD.

 

 

Formerly Known As :

POLYFELT ASIA SDN BHD (04/08/2006)

 

 

Registered Office :

Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, Level 7 , 50490 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

15.05.1993

 

 

Com. Reg. No.:

264232-U

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing and Supplying Geotextiles for Civil and Engineering Construction

 

 

No. of Employees :

70

 

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

 


EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

264232-U

COMPANY NAME

:

TENCATE GEOSYNTHETICS ASIA SDN. BHD.

FORMER NAME

:

POLYFELT ASIA SDN BHD (04/08/2006)
POLYFELT-L&M MANUFACTURING ASIA SDN BHD (23/01/2001)
POLYFELT ASIA SDN BHD (06/11/1997)

INCORPORATION DATE

:

15/05/1993

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, DAMANSARA HEIGHTS, LEVEL 7 , 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

14, JALAN SEMENTA 27/91, SEKSYEN 27, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-51928568

FAX.NO.

:

03-51928573

CONTACT PERSON

:

JOHN JAMES SMITH ( MANAGING DIRECTOR )

INDUSTRY CODE

:

32909

PRINCIPAL ACTIVITY

:

MANUFACTURING AND SUPPLYING GEOTEXTILES FOR CIVIL AND ENGINEERING CONSTRUCTION

AUTHORISED CAPITAL

:

MYR 100,000,000.00 DIVIDED INTO
ORDINARY SHARE 30,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 70,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 18,000,000.00 DIVIDED INTO
ORDINARY SHARES 18,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 184,914,477 [2011]

NET WORTH

:

MYR 53,424,706 [2011]

BANKER (S)

 

MALAYAN BANKING BHD

STAFF STRENGTH

:

70 [2013]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

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 and supplying geotextiles for civil and engineering construction.

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

 

The immediate holding company of the SC is KONINKLIJKE TEN CATE N.V, a company incorporated in NETHERLANDS.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

KONINKLIJKE TEN CATE N.V.

7607, GB ALMELO, EGBERT GORTERSTRAAT 3, NETHERLANDS.

06016321

17,999,999.00

100.00

BIDIM GEOSYNTHETICS S.A

9, RUE MARCEL PAUL, B.P. 80, BEZONA, CEDEX, 95873, FRANCE.

BIDIM

1.00

0.00

 

 

 

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

------

 

 

 

18,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

011069

THAILAND

TENCATE GEOSYNTHETICS (THAILAND) LTD.

100.00

31/12/2011

199806155D

SINGAPORE

TENCATE GEOSYNTHETICS SINGAPORE PTE. LTD.

100.00

31/12/2011

180781W

MALAYSIA

TENCATE GEOSYNTHETICS MALAYSIA SDN. BHD.

100.00

29/03/2013



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

JOHN JAMES SMITH

Address

:

155G, SRI WANGSARIA, JALAN ARA, BANGSAR BARU, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

761321700

Date of Appointment

:

15/05/1993

 

DIRECTOR 2

 

Name Of Subject

:

MR. PATTIS NAIDU S/O M.DANAPAL

Address

:

9, JALAN SS3/94, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

8025691

New IC No

:

500822-10-5401

Date of Birth

:

22/08/1950

Nationality

:

MALAYSIAN

Date of Appointment

:

05/01/2001

Working Experience

:

DEPUTY CHIEF EXECUTIVE OFFICER OF L & M CORP & EXECUTIVE DIR OF ALL THE SUBSIDIARY COMPANIES. IN CHARGE OF THE OPERATIONS OF THE GROUP. HAS 28 YEARS OF EXPERIENCE IN THE SPECIALISED FIELD OF PRESTRESSING, GROUND ENGINEERING, STRUCTURAL REPAIRS & SLIPFORMI

 

DIRECTOR 3

 

Name Of Subject

:

MR. MOHAMED BASHIR BIN MOHAMED SHARIFF

Address

:

4C, JALAN MAKTAB ENAM, OFF JALAN GURNEY, 54100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

0245410

New IC No

:

460614-06-5165

Date of Birth

:

14/06/1946

Nationality

:

MALAYSIAN

Date of Appointment

:

08/05/1996

 

DIRECTOR 4

 

Name Of Subject

:

JOSEPH WALLACE AVERETTE III

Address

:

67, EMERALD ALLIE HOSCHTON, GEORGIA, 30548, UNITED STATES.

IC / PP No

:

425501525

Date of Appointment

:

24/06/2010

 

DIRECTOR 5

 

Name Of Subject

:

WALLACE LAMAR MOORE JR

Address

:

FISCHERGASSE 18, A-4040 LINZ, AUSTRIA.

IC / PP No

:

213894985

Date of Appointment

:

02/09/2010



 

MANAGEMENT

 

 

1)

Name of Subject

:

JOHN JAMES SMITH

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

LINDA

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

LOW SIEW CHONG

 

Position

:

FINANCIAL CONTROLLER

 

 

 

 

 

4)

Name of Subject

:

TERRY LOW

 

Position

:

PRODUCTION 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

:

MR. TAN WEE SIN

 

 

 

 

 

New IC No

:

740530-01-5239

 

Address

:

D309, SEAPARK APARTMENTS, JALAN 21/13,, 46300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

2)

Company Secretary

:

MS. CHUA SIEW CHUAN

 

IC / PP No

:

5461293

 

New IC No

:

580826-05-5408

 

Address

:

6, JALAN SS14/8E, SUBANG JAYA, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

AUSTRALIA

INDIA

SINGAPORE

UNITED KINGDOM

ASIA

Credit Term

:

30 - 60 DAYS

Payment Mode

:

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

 

 

OPERATIONS

 

Products manufactured

:

GEOSYNTHETICS FOR CIVIL ENGINEERING

 

 

 

Competitor(s)

:

DAXON TECHNOLOGY SDN BHD
LYNAS MALAYSIA SDN. BHD.
MEGAN MEDIA HOLDINGS BHD
Q-CELLS MALAYSIA SDN BHD
WD MEDIA (MALAYSIA) SDN.

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

 

 

 

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

70

70

70

75

70

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing and supplying geotextiles for civil and engineering construction.

We were informed that the SC's products are mainly used for civil and engineering construction industries.

The SC's geo synthetic products are used in the infrastructure projects.


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


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-51928568

Match

:

N/A

 

 

 

Address Provided by Client

:

14, JALAN SEMENTA, 27/91 SEKSYEN 27, 40400 SHAH ALAM, SELANGOR

Current Address

:

14, JALAN SEMENTA 27/91, SEKSYEN 27, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 26th August 2013 we contacted one of the staff from the SC and she provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

13.92%

]

 

Return on Net Assets

:

Unfavourable

[

9.12%

]

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC's profit fell sharply because of the high operating costs incurred. The SC's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Acceptable

[

61 Days

]

 

Debtor Ratio

:

Favourable

[

53 Days

]

 

Creditors Ratio

:

Favourable

[

17 Days

]

 

The SC kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. The favourable debtors' days could be due to the good credit control measures implemented by the SC. 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

[

2.73 Times

]

 

Current Ratio

:

Favourable

[

4.40 Times

]

 

 

 

 

 

 

 

 

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

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

1.75 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. 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 :

 

 

 

 

 

 

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. 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. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

Overall financial condition of the SC : FAIR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

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

32909 : Other manufacturing n.e.c.

 

 

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 1993, the SC is a Private Limited company, focusing on manufacturing and supplying geotextiles for civil and engineering construction. Its long establishment in the market has allowed the SC to build up a good reputation and gain higher market share against its rivals. 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 established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. To date, the SC has a total workforce of 70 employees in its business operations. 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 zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 53,424,706, 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)

TENCATE GEOSYNTHETICS ASIA SDN. BHD.

 

Financial Year End

2011-12-31

2010-12-31

2009-12-31

2008-12-31

2007-12-31

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

184,914,477

122,815,142

127,320,554

148,528,661

109,993,430

 

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

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

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

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

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

Total Turnover

184,914,477

122,815,142

127,320,554

148,528,661

109,993,430

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

7,273,659

18,464,679

25,026,486

14,776,276

3,993,473

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

7,273,659

18,464,679

25,026,486

14,776,276

3,993,473

Taxation

165,077

<2,194,180>

<1,957,609>

<1,626,864>

<681,174>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

7,438,736

16,270,499

23,068,877

13,149,412

3,312,299

Minority interests

-

<88,287>

<134,425>

<129,083>

-

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

7,438,736

16,182,212

22,934,452

13,020,329

3,312,299

 

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

7,438,736

16,182,212

22,934,452

13,020,329

3,312,299

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

28,128,817

33,946,605

11,012,153

<2,008,176>

<5,320,475>

 

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

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

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

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

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

As restated

28,128,817

33,946,605

11,012,153

<2,008,176>

<5,320,475>

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

35,567,553

50,128,817

33,946,605

11,012,153

<2,008,176>

DIVIDENDS - Ordinary (paid & proposed)

-

<22,000,000>

-

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

35,567,553

28,128,817

33,946,605

11,012,153

<2,008,176>

 

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

-

90

1,633

-

-

Loan from holding company

9,640,647

644,693

-

-

-

Term loan / Borrowing

47,862

24,131

31,065

-

-

Others

-

-

1,497,195

434,709

-

 

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

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

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

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

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

 

9,688,509

668,914

1,529,893

434,709

-

 

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

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

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

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

 

 

 

 

BALANCE SHEET

 

 

TENCATE GEOSYNTHETICS ASIA SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

94,466,030

32,640,353

34,678,079

36,440,509

44,394,331

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Deferred assets

1,825,349

622,362

593,172

88,082

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,825,349

622,362

593,172

88,082

-

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Goodwill on consolidation

26,496,335

956,543

934,018

934,018

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

26,496,335

956,543

934,018

934,018

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

122,787,714

34,219,258

36,205,269

37,462,609

44,394,331

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

31,043,803

17,209,185

16,367,378

12,933,865

-

Trade debtors

26,605,658

18,500,743

21,989,687

26,965,304

-

Other debtors, deposits & prepayments

1,087,921

11,189,827

293,738

3,935,595

-

Amount due from holding company

-

-

4,048

-

-

Amount due from related companies

16,015

204,027

321,188

980,390

-

Cash & bank balances

22,320,310

3,751,211

2,297,139

6,506,102

-

Others

636,616

-

-

8,548

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

81,710,323

50,854,993

41,273,178

51,329,804

40,887,893

 

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

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

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

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

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

TOTAL ASSET

204,498,037

85,074,251

77,478,447

88,792,413

85,282,224

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

8,493,164

5,355,666

5,117,058

5,435,303

-

Other creditors & accruals

9,984,117

9,077,662

11,166,181

8,560,694

-

Hire purchase & lease creditors

-

-

8,387

31,018

-

Bank overdraft

-

316,292

-

-

-

Amounts owing to related companies

84,037

671,205

568,078

2,245,588

-

Provision for taxation

-

489,749

1,309,841

564,223

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

18,561,318

15,910,574

18,169,545

16,836,826

9,324,135

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

63,149,005

34,944,419

23,103,633

34,492,978

31,563,758

 

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

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

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

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

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

TOTAL NET ASSETS

185,936,719

69,163,677

59,308,902

71,955,587

75,958,089

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

18,000,000

18,000,000

18,000,000

18,000,000

18,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

18,000,000

18,000,000

18,000,000

18,000,000

18,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

35,567,553

28,128,817

33,946,605

11,012,153

<2,008,176>

Others

<142,847>

<91,802>

67,703

33,722

1,623

 

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

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

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

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

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

TOTAL RESERVES

35,424,706

28,037,015

34,014,308

11,045,875

<2,006,553>

 

 

 

 

 

 

MINORITY INTEREST

-

-

264,189

129,764

681

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

53,424,706

46,037,015

52,278,497

29,175,639

15,994,128

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Hire purchase creditors

-

-

-

996,068

-

Deferred taxation

10,413

14,242

30,405

783,880

-

Others

132,501,600

23,112,420

7,000,000

41,000,000

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

132,512,013

23,126,662

7,030,405

42,779,948

59,963,961

 

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

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

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

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

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

 

185,936,719

69,163,677

59,308,902

71,955,587

75,958,089

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

TENCATE GEOSYNTHETICS ASIA SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

22,320,310

3,751,211

2,297,139

6,506,102

-

Net Liquid Funds

22,320,310

3,434,919

2,297,139

6,506,102

-

Net Liquid Assets

32,105,202

17,735,234

6,736,255

21,559,113

31,563,758

Net Current Assets/(Liabilities)

63,149,005

34,944,419

23,103,633

34,492,978

31,563,758

Net Tangible Assets

159,440,384

68,207,134

58,374,884

71,021,569

75,958,089

Net Monetary Assets

<100,406,811>

<5,391,428>

<294,150>

<21,220,835>

<28,400,203>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

316,292

8,387

1,027,086

-

Total Liabilities

151,073,331

39,037,236

25,199,950

59,616,774

69,288,096

Total Assets

204,498,037

85,074,251

77,478,447

88,792,413

85,282,224

Net Assets

185,936,719

69,163,677

59,308,902

71,955,587

75,958,089

Net Assets Backing

53,424,706

46,037,015

52,278,497

29,175,639

15,994,128

Shareholders' Funds

53,424,706

46,037,015

52,278,497

29,175,639

15,994,128

Total Share Capital

18,000,000

18,000,000

18,000,000

18,000,000

18,000,000

Total Reserves

35,424,706

28,037,015

34,014,308

11,045,875

<2,006,553>

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

1.20

0.24

0.13

0.39

-

Liquid Ratio

2.73

2.11

1.37

2.28

-

Current Ratio

4.40

3.20

2.27

3.05

4.39

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

61

51

47

32

-

Debtors Ratio

53

55

63

66

-

Creditors Ratio

17

16

15

13

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.01

0.00

0.04

-

Liabilities Ratio

2.83

0.85

0.48

2.04

4.33

Times Interest Earned Ratio

1.75

28.60

17.36

34.99

-

Assets Backing Ratio

8.86

3.79

3.24

3.95

4.22

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

3.93

15.03

19.66

9.95

3.63

Net Profit Margin

4.02

13.18

18.01

8.77

3.01

Return On Net Assets

9.12

27.66

44.78

21.14

5.26

Return On Capital Employed

7.98

27.16

43.88

20.82

5.26

Return On Shareholders' Funds/Equity

13.92

35.15

43.87

44.63

20.71

Dividend Pay Out Ratio (Times)

0.00

1.36

0.00

0.00

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.57

UK Pound

1

Rs.103.34

Euro

1

Rs.88.16

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.