MIRA INFORM REPORT

 

 

Report Date :

07.09.2013

 

IDENTIFICATION DETAILS

 

Name :

KRAIBURG TPE TECHNOLOGY (M) SDN. BHD.

 

 

Formerly Known as:

KRAIBURG TPE (M) SDN BHD

 

 

Registered Office :

Upper Penthouse, Wisma Rkt, Block A, 2, Jalan Raja Abdullah, Off Jalan Sultan Ismail, 50300 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

05.10.1996

 

 

Com. Reg. No.:

404829-V

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

manufacturer of tailor-made thermoplastic elastomers (TPE) based on hydrated styrene block copolymers.

 

 

No. of Employees :

40 [2013]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – 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.

:

404829-V

COMPANY NAME

:

KRAIBURG TPE TECHNOLOGY (M) SDN. BHD.

FORMER NAME

:

KRAIBURG TPE (M) SDN BHD (05/03/2007)
KRAIBURG (M) SDN BHD (13/06/2002)

INCORPORATION DATE

:

05/10/1996

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

UPPER PENTHOUSE, WISMA RKT, BLOCK A, 2, JALAN RAJA ABDULLAH, OFF JALAN SULTAN ISMAIL, 50300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 1839, JALAN KPB 6, KAWASAN PERINDUSTRIAN BALAKONG, 43300 BALAKONG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-89621393

FAX.NO.

:

03-89619884

WEB SITE

:

WWW.KRAIBURG-TPE.COM

CONTACT PERSON

:

ROLAND HELMUT RITTER ( CEO )

 

 

 

INDUSTRY CODE

:

22209

PRINCIPAL ACTIVITY

:

MANUFACTURING OF THERMOPLASTIC ELASTOMER

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 1,111,112.00 DIVIDED INTO 
ORDINARY SHARES 1,111,112 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 87,528,517 [2012]

NET WORTH

:

MYR 42,600,591 [2012]

 

 

 

STAFF STRENGTH

:

40 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

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 thermoplastic elastomer.

 

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

 

The immediate holding company of the SC is KRAIBURG TPE GMBH & CO KG, a company incorporated in GERMANY.

 

The ultimate holding company of the SC is KRAIBURG HOLDING GMBH & CO KG, a company incorporated in GERMANY.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

KRAIBURG TPE GMBH & CO KG

FRIEDRICH-SCHMIDT STREET 2, 84478 WALDKRAIBURG, GERMANY

XLZ00214928

1,000,000.00

90.00

MILTON HOLDINGS INTERNATIONAL LIMITED

ROOM 3303, 148 ELECTRIC ROAD, NORTH POINT, HONG KONG

XLZ00213075

111,112.00

10.00

 

 

 

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

------

 

 

 

1,111,112.00

100.00

 

 

 

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

=====

+ Also Director

 

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

Local No

Country

Company

(%)

As At

 

 

KRAIBURG TPE (SHANGHAI) COMPANY LIMITED

57.00

31/12/2011

 

 

 

 

 

 

 

KRAIBURG TPE CHINA COMPANY LIMITED

57.00

31/12/2011

 

 

 

 

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

ROLAND BURREINER

Address

:

NO B-3A-7, LI VILLAS CONDOMINIUM, JALAN 16/20, 46350 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

CF112TTKW

 

 

 

 

 

 

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

15/09/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

ROLAND HELMUT RITTER

Address

:

G11F05, BLOCK G PUTERI PALMA CONDO, IOI PALM GARDEN RESORT, BATU 7, JALAN KAJANG-PUCHONG, 43000 KAJANG, SELANGOR, MALAYSIA.

IC / PP No

:

C4KRH5LPW

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

15/05/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. FRANZ XAVER HINTERECKER

Address

:

ESCHENWEG 8, 84562 METTENHEIN, GERMANY, MALAYSIA.

IC / PP No

:

CF840YHXJ

 

 

 

 

 

 

 

 

 

Nationality

:

DEUTSCH

Date of Appointment

:

24/03/1999

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

LIU KAM HING

Address

:

FLAT 4, 19/F, BLOCK 3 GRANG GARDEN, 61 SOUTH BAY ROAD, HONG KONG, MALAYSIA.

IC / PP No

:

H01442052

 

 

 

 

 

 

 

 

 

Nationality

:

CHINESE

Date of Appointment

:

15/05/2009

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

LIOW

 

Position

:

ASSISTANT ACCOUNT MANAGER

 

 

 

 

 

2)

Name of Subject

:

ROLAND HELMUT RITTER

 

Position

:

CEO

 

 

 

 

 

AUDITOR

 

Auditor

:

RSM ROBERT TEO,KUAN & CO.

Auditor' Address

:

1ST FLOOR, WISMA RKT, BLOCK A, NO. 2, JALAN RAJA ABDULLAH, OFF JALAN SULTAN ISMAIL, 50300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ENG BEE HONG

 

IC / PP No

:

8254998

 

New IC No

:

570809-71-5006

 

Address

:

23, JALAN SS26/5, TAMAN MAYANG JAYA, 47301 PETALING 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 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

Percentage

:

40%

Overseas

:

YES

Percentage

:

60%

 

 

 

 

 

 



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

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

THERMOPLASTIC ELASTOMER

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

2008

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

40

35

34

34

30

26

 

 

 

 

Branch

:

NO

 

 

Other Information:

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

The SC is a manufacturer of tailor-made thermoplastic elastomers (TPE) based on hydrated styrene block copolymers.

The SC's products are mainly used in automotive, industrial, consumer and medical applications.

In addition, the SC provides TPEs that are resistant to high temperatures and aggressive media and can be sterilised.

We were informed that the SC's are TPEs processed by injection moulding, extrusion and even blow moulding.

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-89621393

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 1839 JALAN KPB6, KAWASAN PERINDUSTRIAN BALAKONG 43300 SERI SELANGOR

Current Address

:

LOT 1839, JALAN KPB 6, KAWASAN PERINDUSTRIAN BALAKONG, 43300 BALAKONG, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

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

The address provided is incomplete. 

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

1.50%

]

 

Profit/(Loss) Before Tax

:

Decreased

[

6.72%

]

 

Return on Shareholder Funds

:

Acceptable

[

23.56%

]

 

Return on Net Assets

:

Acceptable

[

24.78%

]

 

 

 

 

 

 

 

 

The lower turnover could be due to the unfavourable market conditions.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.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Favourable

[

4.83 Times

]

 

 

 

 

 

 

 

 

The SC was in good liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Favourable

[

0.36 Times

]

 

 

 

 

 

 

 

 

A low liabilities ratio has minimised the SC's financial risk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC's performance deteriorated over the years with lower turnover and profit. 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 has a low liabilities ratio. It's liabilities were low and was not vulnerable to the financial risk.

 

 

 

 

 

 

 

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

 

22209 : Manufacture of diverse plastic 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 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 1996, the SC is a Private Limited company, focusing on manufacturing of thermoplastic elastomer. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. 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. 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. The SC is operating on a medium scale and it has approximately 40 employees in its business operations. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC. 

The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. 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. A low liabilities ratio has minimised the SC's financial risk. Given a positive net worth standing at MYR 42,600,591, 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. 

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)

KRAIBURG TPE TECHNOLOGY (M) SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

87,528,517

88,860,222

43,400,204

29,128,338

14,934,659

 

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

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

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

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

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

Total Turnover

87,528,517

88,860,222

43,400,204

29,128,338

14,934,659

Costs of Goods Sold

-

<62,154,199>

<31,022,191>

<20,140,048>

<11,450,288>

 

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

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

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

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

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

Gross Profit

-

26,706,023

12,378,013

8,988,290

3,484,371

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

12,421,163

13,315,853

7,391,996

3,587,960

<302,601>

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

12,421,163

13,315,853

7,391,996

3,587,960

<302,601>

Taxation

<1,778,745>

<2,117,791>

-

-

-

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

10,642,418

11,198,062

7,391,996

3,587,960

<302,601>

Minority interests

<607,654>

<1,026,133>

-

-

-

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

10,034,764

10,171,929

7,391,996

3,587,960

<302,601>

 

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

10,034,764

10,171,929

7,391,996

3,587,960

<302,601>

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

26,983,841

14,318,559

6,926,563

3,338,603

3,641,204

 

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

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

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

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

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

As restated

26,983,841

14,318,559

6,926,563

3,338,603

3,641,204

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

37,018,605

24,490,488

14,318,559

6,926,563

3,338,603

TRANSFER TO RESERVES - Statutory

-

2,493,353

-

-

-

DIVIDENDS - Ordinary (paid & proposed)

<1,182,282>

-

-

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

35,836,323

26,983,841

14,318,559

6,926,563

3,338,603

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

-

-

13,623

22,323

22,999

Loan from holding company

-

-

334,806

552,971

348,553

Others

-

112,988

-

-

-

 

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

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

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

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

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

 

-

112,988

348,429

575,294

371,552

 

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

KRAIBURG TPE TECHNOLOGY (M) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

20,623,600

14,690,001

12,546,963

12,323,298

13,365,910

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Associated companies

-

-

1,190,402

1,190,402

1,190,402

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

1,190,402

1,190,402

1,190,402

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Goodwill on consolidation

-

392,734

-

-

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

-

392,734

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

20,623,600

15,082,735

13,737,365

13,513,700

14,556,312

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

-

9,463,180

3,894,932

3,351,339

3,098,047

Trade debtors

-

12,155,301

3,204,577

4,103,672

2,918,691

Other debtors, deposits & prepayments

-

724,987

436,196

501,406

432,542

Amount due from agents, brokers & reinsurers

-

957,802

-

-

-

Amount due from related companies

-

36,752

174,379

-

-

Amount due from associated companies

-

-

1,336,754

3,019,432

640,720

Cash & bank balances

-

10,049,685

5,141,264

2,130,079

1,834,502

Others

-

112,500

-

-

33,330

 

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

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

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

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

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

TOTAL CURRENT ASSETS

37,200,342

33,500,207

14,188,102

13,105,928

8,957,832

 

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

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

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

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

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

TOTAL ASSET

57,823,942

48,582,942

27,925,467

26,619,628

23,514,144

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

1,209,743

938,550

1,005,165

443,255

Other creditors & accruals

-

3,111,633

1,301,318

507,256

346,094

Hire purchase & lease creditors

-

74,563

105,733

100,785

120,434

Amounts owing to holding company

-

450,532

2,085,154

508,865

3,416,863

Amounts owing to related companies

-

3,317,011

46,755

176,595

-

Provision for taxation

-

408,315

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

7,697,536

8,571,797

4,477,510

2,298,666

4,326,646

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

29,502,806

24,928,410

9,710,592

10,807,262

4,631,186

 

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

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

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

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

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

TOTAL NET ASSETS

50,126,406

40,011,145

23,447,957

24,320,962

19,187,498

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

1,111,112

1,111,112

1,052,632

1,052,632

1,026,316

 

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

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

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

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

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

TOTAL SHARE CAPITAL

1,111,112

1,111,112

1,052,632

1,052,632

1,026,316

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

5,653,156

5,827,311

3,050,681

3,050,681

1,486,697

Retained profit/(loss) carried forward

35,836,323

26,983,841

14,318,559

6,926,563

3,338,603

 

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

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

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

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

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

TOTAL RESERVES

41,489,479

33,163,265

17,369,240

9,977,244

4,825,300

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

42,600,591

34,274,377

18,421,872

11,029,876

5,851,616

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Hire purchase creditors

-

42,607

129,605

235,338

367,454

Deferred taxation

-

1,500,000

-

-

-

Others

-

4,194,161

4,896,480

13,055,748

12,968,428

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

7,525,815

5,736,768

5,026,085

13,291,086

13,335,882

 

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

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

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

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

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

 

50,126,406

40,011,145

23,447,957

24,320,962

19,187,498

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

KRAIBURG TPE TECHNOLOGY (M) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

-

10,049,685

5,141,264

2,130,079

1,834,502

Net Liquid Funds

-

10,049,685

5,141,264

2,130,079

1,834,502

Net Liquid Assets

29,502,806

15,465,230

5,815,660

7,455,923

1,533,139

Net Current Assets/(Liabilities)

29,502,806

24,928,410

9,710,592

10,807,262

4,631,186

Net Tangible Assets

50,126,406

39,618,411

23,447,957

24,320,962

19,187,498

Net Monetary Assets

21,976,991

9,728,462

789,575

<5,835,163>

<11,802,743>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

-

117,170

235,338

336,123

487,888

Total Liabilities

15,223,351

14,308,565

9,503,595

15,589,752

17,662,528

Total Assets

57,823,942

48,582,942

27,925,467

26,619,628

23,514,144

Net Assets

50,126,406

40,011,145

23,447,957

24,320,962

19,187,498

Net Assets Backing

42,600,591

34,274,377

18,421,872

11,029,876

5,851,616

Shareholders' Funds

42,600,591

34,274,377

18,421,872

11,029,876

5,851,616

Total Share Capital

1,111,112

1,111,112

1,052,632

1,052,632

1,026,316

Total Reserves

41,489,479

33,163,265

17,369,240

9,977,244

4,825,300

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

-

1.17

1.15

0.93

0.42

Liquid Ratio

-

2.80

2.30

4.24

1.35

Current Ratio

4.83

3.91

3.17

5.70

2.07

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

-

39

33

42

76

Debtors Ratio

-

50

27

51

71

Creditors Ratio

-

7

11

18

14

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

-

0.00

0.01

0.03

0.08

Liabilities Ratio

0.36

0.42

0.52

1.41

3.02

Times Interest Earned Ratio

-

118.85

22.22

7.24

0.19

Assets Backing Ratio

45.11

35.66

22.28

23.10

18.70

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

14.19

14.99

17.03

12.32

<2.03>

Net Profit Margin

11.46

11.45

17.03

12.32

<2.03>

Return On Net Assets

24.78

33.56

33.01

17.12

0.36

Return On Capital Employed

24.78

33.18

32.86

17.05

0.36

Return On Shareholders' Funds/Equity

23.56

29.68

40.13

32.53

<5.17>

Dividend Pay Out Ratio (Times)

0.12

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

-

0

0

0

0





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.96

UK Pound

1

Rs.102.91

Euro

1

Rs.86.58

 

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.