MIRA INFORM REPORT

 

 

Report Date :

06.09.2013

 

IDENTIFICATION DETAILS

 

Name :

YAMAUCHI (MALAYSIA) SDN. BHD.

 

 

Registered Office :

Plo 138, Senai Industrial Area, Phase 3, 81400 Senai, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

22.07.1988

 

 

Com. Reg. No.:

172281-V

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturer and sale of moulded, extruded rubber products and pinch roller assembly

 

 

No. of Employees :

600 [2013]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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.

:

172281-V

COMPANY NAME

:

YAMAUCHI (MALAYSIA) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

22/07/1988

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

PLO 138, SENAI INDUSTRIAL AREA, PHASE 3, 81400 SENAI, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

PLO 138, PHASE 3, SENAI INDUSTRIAL AREA, 81400 SENAI, JOHOR, MALAYSIA.

TEL.NO.

:

07-5993335

FAX.NO.

:

07-5993337

CONTACT PERSON

:

TADASHI YASUI ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

22199

PRINCIPAL ACTIVITY

:

MANUFACTURE AND SALE OF MOULDED, EXTRUDED RUBBER PRODUCTS AND PINCH ROLLER ASSEMBLY

AUTHORISED CAPITAL

:

MYR 6,000,000.00 DIVIDED INTO 
ORDINARY SHARE 2,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 4,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 6,000,000.00 DIVIDED INTO 
ORDINARY SHARES 2,000,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 4,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 48,926,472 [2011]

NET WORTH

:

MYR 28,136,889 [2011]

 

 

 

STAFF STRENGTH

:

600 [2013]

BANKER (S)

:

PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

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

 

The SC is principally engaged in the (as a / as an) manufacture and sale of moulded, extruded rubber products and pinch roller assembly.

 

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

(%)

YAMAUCHI (S) PTE LTD

BLOCK 514, CHAI CHEE LANE, #01-06/11, SINGAPORE.

XLZ00001905

4,000,000.00

66.67

YAMAUCHI CORPORATION

2-7, SHODAI TAJIKA, HIRAKATA CITY, OSAKA 573, JAPAN.

XLZ000005484

2,000,000.00

33.33

 

 

 

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

------

 

 

 

6,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MR. ARIFFIN BIN MD ALI

Address

:

6751, JALAN NURI 28, BANDAR PUTRA, 81000 KULAI, JOHOR, MALAYSIA.

 

 

 

New IC No

:

670503-04-5423

Date of Birth

:

03/05/1967

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/01/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

TADASHI YASUI

Address

:

#29-10, 29TH FLOOR, WADIHANA CONDO, JLN MOHD TAIB, 80300 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

MZ0548631

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

20/04/1997

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

ICHIRO YAMAUCHI

Address

:

1-246,UMENAKI ITAMI CITY HYOGO 664, JAPAN.

IC / PP No

:

8487912

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

26/06/1990

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

TETSUO TAKA

Address

:

HIKITA CHO 406-5, NARA CITY NARA PREFECTURE, JAPAN.

IC / PP No

:

TH5683265

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

14/05/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

AKIHIRO NISHITANI

Address

:

NISHI HIRANO CHO 51, FUKUCHIYAMA CITY, KYOTO PREFECTURE, JAPAN.

IC / PP No

:

TK1668747

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

14/05/2012

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

LOH

 

Position

:

FINANCE MANAGER

 

 

 

 

 

2)

Name of Subject

:

TADASHI YASUI

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

MENARA ANSAR, 65, JALAN TRUS, LEVEL 14, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ANG MUI KIOW

 

IC / PP No

:

7032746

 

New IC No

:

630530-01-5426

 

Address

:

27, JALAN NIBONG 18, TAMAN DAYA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

11/09/1995

LETTER OF PLEDGE

PUBLIC BANK BERHAD

MYR 20,000.00

Unsatisfied

2

14/12/1995

LETTER OF PLEDGE

PUBLIC BANK BERHAD

MYR 750,000.00

Unsatisfied

3

27/01/1996

LETTER OF PLEDGE

PUBLIC BANK BERHAD

MYR 45,000.00

Unsatisfied

4

09/05/1996

LETTER OF PLEDGE

PUBLIC BANK BERHAD

MYR 130,000.00

Unsatisfied

5

22/07/1998

LETTER OF PLEDGE

PUBLIC BANK BERHAD

MYR 475,000.00

Unsatisfied

6

29/10/1998

LETTER OF PLEDGE

PUBLIC BANK BERHAD

MYR 150,000.00

Unsatisfied

7

21/10/1999

N/A

PUBLIC BANK BERHAD

MYR 150,000.00

Unsatisfied

 

 

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

Import Countries

:

JAPAN



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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 


CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

UNITED STATES

EUROPE

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

MOULDED, EXTRUDED RUBBER PRODUCTS & PINCH ROLLER ASSEMBLY

 

 

 

 

Competitor(s)

:

KUALA PILAH RUBBER FACTORY SDN BHD

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2010

2009

 

GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

600

800

953

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:

The SC is principally engaged in the (as a / as an) manufacture and sale of moulded, extruded rubber products and pinch roller assembly. 

The SC is specialize in manufacturing of Rubber Mouldings and Pinch Roller for VideoTape Recorders and Apron Bands for Spinning Machines.

The SC's warehouse is located at its same premises to keep is products and materials.

The SC utilises the advanved automated and semi-automated machineries to ensure production of high quality products.

The SC produces rubber buttons for the remote controls.

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

07-5993335

Match

:

N/A

 

 

 

Address Provided by Client

:

PLO 138, SENAI INDUSTRIAL AREA, PHASE III, 81400 SENAI, JOHAR

Current Address

:

PLO 138, PHASE 3, SENAI INDUSTRIAL AREA, 81400 SENAI, JOHOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

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

The address provided is incorrect.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

<3.33%>

]

 

Return on Net Assets

:

Unfavourable

[

<3.95%>

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC incurred losses during the year due to the inefficient control of its operating costs. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

45 Days

]

 

Debtor Ratio

:

Favourable

[

9 Days

]

 

Creditors Ratio

:

Favourable

[

10 Days

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

3.89 Times

]

 

Current Ratio

:

Favourable

[

5.50 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

:

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 :

 

 

 

 

 

 

The SC's losses increased but its turnover showed a fluctuating trend. This indicate the SC was slowly losing its market share due to its competitors. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC 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 : 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

22199 : Manufacture of other rubber products 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 domestic oriented 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 seven months 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 1988, the SC is a Private Limited company, focusing on manufacture and sale of moulded, extruded rubber products and pinch roller assembly. With over 2 decades of experience in the business, the SC has fairly rich experiences in the business and has achieved a certain market share. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. 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. Being a large entity, the SC has a steady workforce of 600 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC. 

Due to the challenging market conditions, the SC's business performance seems to be deteriorating and losses incurred. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 28,136,889, 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. 

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

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

Based on the above condition, we recommend credit be granted to the SC promptly.

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

YAMAUCHI (MALAYSIA) 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

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

48,926,472

52,414,457

47,898,516

64,353,808

70,209,284

Other Income

433,066

46,225

58,545

604,488

-

 

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

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

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

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

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

Total Turnover

49,359,538

52,460,682

47,957,061

64,958,296

70,209,284

Costs of Goods Sold

<46,466,763>

<47,547,390>

<45,620,892>

<59,984,665>

-

 

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

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

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

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

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

Gross Profit

2,892,775

4,913,292

2,336,169

4,973,631

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

<1,110,559>

115,667

<2,380,051>

<350,676>

542,661

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

<1,110,559>

115,667

<2,380,051>

<350,676>

542,661

Taxation

174,359

<76,380>

311,314

88,216

<214,534>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

<936,200>

39,287

<2,068,737>

<262,460>

328,127

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

23,163,089

23,183,802

33,152,539

33,515,799

33,587,672

 

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

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

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

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

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

As restated

23,163,089

23,183,802

33,152,539

33,515,799

33,587,672

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

22,226,889

23,223,089

31,083,802

33,253,339

33,915,799

DIVIDENDS - Ordinary (paid & proposed)

<90,000>

<60,000>

<7,900,000>

<100,800>

<400,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

22,136,889

23,163,089

23,183,802

33,152,539

33,515,799

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

YAMAUCHI (MALAYSIA) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

9,150,595

9,751,828

11,690,437

14,925,126

12,470,749

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Deferred assets

2,067,000

1,826,000

1,867,000

1,497,000

1,311,000

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

2,067,000

1,826,000

1,867,000

1,497,000

1,311,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

11,217,595

11,577,828

13,557,437

16,422,126

13,781,749

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

6,050,551

4,552,181

4,850,271

6,036,930

5,028,667

Trade debtors

1,236,975

983,846

1,038,562

1,424,156

486,542

Other debtors, deposits & prepayments

840,858

720,389

742,222

1,053,860

815,141

Short term deposits

-

-

-

-

16,837,000

Deposits with financial institutions

8,318,152

8,103,640

8,204,437

13,275,429

-

Amount due from holding company

368,904

1,398,964

907,547

4,110

995,109

Amount due from related companies

1,433,355

1,776,330

1,173,151

3,888,227

3,751,476

Cash & bank balances

2,431,241

3,785,313

1,702,740

1,797,422

1,964,111

Others

-

49,638

36,662

12,458

12,725

 

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

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

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

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

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

TOTAL CURRENT ASSETS

20,680,036

21,370,301

18,655,592

27,492,592

29,890,771

 

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

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

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

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

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

TOTAL ASSET

31,897,631

32,948,129

32,213,029

43,914,718

43,672,520

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

1,243,264

1,073,798

717,033

839,333

790,272

Other creditors & accruals

2,424,035

2,651,242

2,252,194

3,822,046

2,966,449

Provision for taxation

3,443

-

-

-

-

Dividends payable/proposed

90,000

60,000

60,000

100,800

400,000

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

3,760,742

3,785,040

3,029,227

4,762,179

4,156,721

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

16,919,294

17,585,261

15,626,365

22,730,413

25,734,050

 

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

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

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

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

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

TOTAL NET ASSETS

28,136,889

29,163,089

29,183,802

39,152,539

39,515,799

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

6,000,000

6,000,000

6,000,000

6,000,000

6,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

6,000,000

6,000,000

6,000,000

6,000,000

6,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

22,136,889

23,163,089

23,183,802

33,152,539

33,515,799

 

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

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

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

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

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

TOTAL RESERVES

22,136,889

23,163,089

23,183,802

33,152,539

33,515,799

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

28,136,889

29,163,089

29,183,802

39,152,539

39,515,799

 

 

 

 

 

 

 

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

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

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

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

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

 

28,136,889

29,163,089

29,183,802

39,152,539

39,515,799

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

YAMAUCHI (MALAYSIA) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

2,431,241

3,785,313

1,702,740

1,797,422

18,801,111

Net Liquid Funds

2,431,241

3,785,313

1,702,740

1,797,422

18,801,111

Net Liquid Assets

10,868,743

13,033,080

10,776,094

16,693,483

20,705,383

Net Current Assets/(Liabilities)

16,919,294

17,585,261

15,626,365

22,730,413

25,734,050

Net Tangible Assets

28,136,889

29,163,089

29,183,802

39,152,539

39,515,799

Net Monetary Assets

10,868,743

13,033,080

10,776,094

16,693,483

20,705,383

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

0

0

0

Total Liabilities

3,760,742

3,785,040

3,029,227

4,762,179

4,156,721

Total Assets

31,897,631

32,948,129

32,213,029

43,914,718

43,672,520

Net Assets

28,136,889

29,163,089

29,183,802

39,152,539

39,515,799

Net Assets Backing

28,136,889

29,163,089

29,183,802

39,152,539

39,515,799

Shareholders' Funds

28,136,889

29,163,089

29,183,802

39,152,539

39,515,799

Total Share Capital

6,000,000

6,000,000

6,000,000

6,000,000

6,000,000

Total Reserves

22,136,889

23,163,089

23,183,802

33,152,539

33,515,799

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.65

1.00

0.56

0.38

4.52

Liquid Ratio

3.89

4.44

4.56

4.51

5.98

Current Ratio

5.50

5.65

6.16

5.77

7.19

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

45

32

37

34

26

Debtors Ratio

9

7

8

8

3

Creditors Ratio

10

8

6

5

4

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

0.00

Liabilities Ratio

0.13

0.13

0.10

0.12

0.11

Times Interest Earned Ratio

0.00

0.00

0.00

0.00

0.00

Assets Backing Ratio

4.69

4.86

4.86

6.53

6.59

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

<2.27>

0.22

<4.97>

<0.54>

0.77

Net Profit Margin

<1.91>

0.07

<4.32>

<0.41>

0.47

Return On Net Assets

<3.95>

0.40

<8.16>

<0.90>

1.37

Return On Capital Employed

<3.95>

0.40

<8.16>

<0.90>

1.37

Return On Shareholders' Funds/Equity

<3.33>

0.13

<7.09>

<0.67>

0.83

Dividend Pay Out Ratio (Times)

0.10

1.53

3.82

0.38

1.22

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.04

UK Pound

1

Rs.103.11

Euro

1

Rs.86.99

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.