MIRA INFORM REPORT

 

 

Report Date :

06.04.2014

 

IDENTIFICATION DETAILS

 

Name :

TERANG NUSA (MALAYSIA) SDN. BHD.

 

 

Formerly Known as:

AMERICAN HEALTHCARE (MALAYSIA) SDN BHD (03/01/2010)

 

 

Registered Office :

Lot 345, Seksyen 27, Jalan Pengkalan Chepa, Aras 2 , 15400 Kota Bharu, Kelantan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.10.2012

 

 

Date of Incorporation :

02.09.1991

 

 

Com. Reg. No.:

224197-U

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing of Sterile Surgical Glove

 

 

No. of Employees

900

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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.

:

224197-U

COMPANY NAME

:

TERANG NUSA (MALAYSIA) SDN. BHD.

FORMER NAME

:

AMERICAN HEALTHCARE (MALAYSIA) SDN BHD (03/01/2010)

INCORPORATION DATE

:

02/09/1991

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LOT 345, SEKSYEN 27, JALAN PENGKALAN CHEPA, ARAS 2 , 15400 KOTA BHARU, KELANTAN, MALAYSIA.

BUSINESS ADDRESS

:

2, JALAN 8, PENGKALAN CHEPA 2, INDUSTRIAL ZONE, 16100 KOTA BHARU, KELANTAN, MALAYSIA.

TEL.NO.

:

09-7747171

FAX.NO.

:

09-7747757

EMAIL

:

SALES@TERANGNUSA.COM

WEB SITE

:

WWW.TERANGNUSA.COM

CONTACT PERSON

:

WONG KOON MEI @ WONG KWAN MOOI ( MANAGING DIRECTOR )

INDUSTRY CODE

:

22192

PRINCIPAL ACTIVITY

:

MANUFACTURING OF STERILE SURGICAL GLOVE

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

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

SALES

:

MYR 231,245,622 [2012]

NET WORTH

:

MYR 44,170,382 [2012]

STAFF STRENGTH

:

900 [2014]

BANKER (S)

:

EXPORT-IMPORT BANK OF MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

GOOD

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) manufacturing of sterile surgical glove.

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

 

The immediate holding company of the Subject is ADVENTA BERHAD, a company incorporated in MALAYSIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/04/2012

MYR 500,000.00

MYR 500,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

ADVENTA BERHAD

1, JALAN 8, PENGKALAN CHEPA 2, INDUSTRIAL ZONE, 16100 KOTA BHARU, KELANTAN, MALAYSIA.

618533M

500,000.00

100.00

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

------

500,000.00

100.00

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

=====

+ Also Director



DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MS. WONG KOON MEI @ WONG KWAN MOOI

Address

:

LOT 850-A, TAMAN AZAM, JALAN LONG YUNUS, 15200 KOTA BHARU, KELANTAN, MALAYSIA.

New IC No

:

320501-10-5090

Date of Birth

:

01/05/1932

Nationality

:

MALAYSIAN

Date of Appointment

:

30/11/2012

 

DIRECTOR 2

 

Name Of Subject

:

MS. KWEK SIEW LENG

Address

:

PT 1654, TAMAN BESU, SBJ PUTRA, PASIR PEKAN, 16250 WAKAF BHARU, KELANTAN, MALAYSIA.

New IC No

:

661009-01-5902

Date of Birth

:

09/10/1966

Nationality

:

MALAYSIAN

Date of Appointment

:

20/03/2009

 

DIRECTOR 3

 

Name Of Subject

:

MR. WONG CHIN TOH

Address

:

26, ELITIS MAYA VALENCIA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

IC / PP No

:

A3157059

New IC No

:

750624-14-5535

Date of Birth

:

24/06/1975

Nationality

:

MALAYSIAN

Date of Appointment

:

30/11/2012

 

DIRECTOR 4

 

Name Of Subject

:

MR. LOW CHIN GUAN

Address

:

LOT 850-A, TAMAN AZAM, JALAN LONG YUNUS, 15200 KOTA BHARU, KELANTAN, MALAYSIA.

IC / PP No

:

5924608

New IC No

:

600223-10-6371

Date of Birth

:

23/02/1960

Nationality

:

MALAYSIAN

Date of Appointment

:

04/10/1991



MANAGEMENT

 

 

 

1)

Name of Subject

:

WONG KOON MEI @ WONG KWAN MOOI

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

KWEK SIEW LING

Position

:

FINANCE MANAGER

 

3)

Name of Subject

:

KOH KIM SEK

Position

:

MARKETING MANAGER

 

 

 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG

Auditor' Address

:

MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, DAMANSARA HEIGHTS, LEVEL 23A, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SURINDER KAUR A/P GURBAKSH SINGH

IC / PP No

:

5196719

New IC No

:

560919-03-5344

Address

:

LOT 2092, TAMAN KENANGAN, JALAN HOSPITAL, 15200 KOTA BHARU, KELANTAN, MALAYSIA.

 

2)

Company Secretary

:

MS. KWEK SIEW LENG

New IC No

:

661009-01-5902

Address

:

PT 1654, TAMAN BESU, SBJ PUTRA, PASIR PEKAN, 16250 WAKAF BHARU, KELANTAN, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

EXPORT-IMPORT BANK OF MALAYSIA BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

27/04/2004

N/A

RHB BANK BERHAD

MYR 14,100,000.00

Satisfied

2

31/01/2008

N/A

EXPORT-IMPORT BANK OF MALAYSIA BHD

-

Unsatisfied

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject 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 SUBJECT


* We have checked through the Subject 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

:

100%

Overseas

:

NO

Percentage

:

0%


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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]



CLIENTELE

 

Local

:

YES

Percentage

:

50%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

50%

Export Market

:

EUROPE

MIDDLE EAST

ASIA PACIFIC

MIDDLE EAST

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

MEDICAL INDUSTRIES

 

 

OPERATIONS

 

Products manufactured

:

STERILE SURGICAL GLOVE

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

GROUP

N/A

N/A

N/A

N/A

COMPANY

900

900

978

978

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of sterile surgical glove.


Subject is a complete provider of all medical gloves required in a hospital, from sterile surgical to non sterile examination.

The subject has the widest range of surgical gloves, to fulfill the needs of all surgeries, hospital or day centers.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

09-7747171

Match

:

N/A

Address Provided by Client

:

NO. 2, JALAN 8, PENGKALAN CHEPA 2 INDUSTRIAL ZONE, 16100 KOTA BHARU, MALAYSIA

Current Address

:

2, JALAN 8, PENGKALAN CHEPA 2, INDUSTRIAL ZONE, 16100 KOTA BHARU, KELANTAN, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


On 2nd April 2014, we have contacted one of the staff from the subject and she provided some information.

The address provided is incomplete.



FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2008 - 2012

]

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

Return on Shareholder Funds

:

Acceptable

[

29.04%

]

Return on Net Assets

:

Acceptable

[

20.34%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The Subject's management had generated acceptable return for its shareholders using its assets.

Liquidity

Current Ratio

:

Unfavourable

[

0.59 Times

]

Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject.

Solvency

Liability Ratio

:

Unfavourable

[

5.17 Times

]

The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

Overall Assessment :

The higher turnover had helped to reduce the Subject's losses. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. The Subject's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : LIMITED

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

* Estimate / Preliminary

** Forecast

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



INDUSTRY ANALYSIS

 

MSIC CODE

22192 : Manufacture of rubber gloves

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 1991, the Subject is a Private Limited company, focusing on manufacturing of sterile surgical glove. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. The Subject is well backed by a listed company shareholders which would stimulate further growth for the Subject. Hence, the potential growth of the Subject is positive.


Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. Being a large entity, the Subject has a steady workforce of 900 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. The Subject has a good management capability. Its capable management team has enabled the Subject to keep its business on going. Hence, the future prospect of the Subject is bright.


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. However, due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Nevertheless, given a positive net worth standing at MYR 44,170,382, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. We noted that the Subject's supplies are solely sourced from local market. Being highly dependent on a limited number of suppliers could lead to delays, lost of revenue and increased costs if such resources become unavailable or shortage.


The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.


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


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

 



PROFIT AND LOSS ACCOUNT

 

 

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

TERANG NUSA (MALAYSIA) SDN. BHD.

 

Financial Year End

2012-10-31

2011-10-31

2010-10-31

2009-10-31

2008-10-31

Months

12

12

12

12

9

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

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

231,245,622

198,524,829

158,929,848

66,898,888

63,718,014

Other Income

-

1,401,610

1,152,591

-

-

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

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

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

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

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

Total Turnover

231,245,622

199,926,439

160,082,439

66,898,888

63,718,014

Costs of Goods Sold

-

(193,390,734)

-

-

-

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

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

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

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

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

Gross Profit

-

6,535,705

-

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

8,983,941

(5,565,248)

8,334,583

6,139,474

4,972,800

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

8,983,941

(5,565,248)

8,334,583

6,139,474

4,972,800

Taxation

3,842,250

1,318,824

771,246

(69,554)

(513,757)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

12,826,191

(4,246,424)

9,105,829

6,069,920

4,459,043

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

34,861,098

39,107,522

34,001,693

29,931,773

25,472,730

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

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

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

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

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

As restated

34,861,098

39,107,522

34,001,693

29,931,773

25,472,730

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

47,687,289

34,861,098

43,107,522

36,001,693

29,931,773

DIVIDENDS - Ordinary (paid & proposed)

(4,500,000)

-

(4,000,000)

(2,000,000)

-

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

43,187,289

34,861,098

39,107,522

34,001,693

29,931,773

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

-

406

293

417

353

Bankers' acceptance

-

-

2,032

-

-

Revolving loans

-

851,243

475,138

546,090

166,519

Term loan / Borrowing

-

281,592

160,205

174,855

-

Others

-

3,100,552

707,673

435,988

297,667

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

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

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

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

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

-

4,233,793

1,345,341

1,157,350

464,539

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

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

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

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

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

 

 

BALANCE SHEET

 

 

TERANG NUSA (MALAYSIA) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

137,140,865

118,893,440

100,630,817

37,227,587

23,439,784

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

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

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

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

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

TOTAL LONG TERM ASSETS

137,140,865

118,893,440

100,630,817

37,227,587

23,439,784

CURRENT ASSETS

Stocks

-

40,440,426

30,204,187

16,133,636

18,094,479

Trade debtors

-

78,096,909

24,962,431

21,415,992

22,787,684

Other debtors, deposits & prepayments

-

643,371

392,925

149,526

6,320

Cash & bank balances

-

2,812,480

2,740,035

2,264,786

514,640

Others

-

1,237,427

2,292,612

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

135,511,162

123,230,613

60,592,190

39,963,940

41,403,123

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

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

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

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

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

TOTAL ASSET

272,652,027

242,124,053

161,223,007

77,191,527

64,842,907

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

-

38,736,765

52,858,598

4,780,965

8,770,624

Other creditors & accruals

-

5,104,588

11,454,549

15,426,825

2,478,259

Short term borrowings/Term loans

-

1,223,036

2,488,651

1,489,448

-

Other borrowings

-

32,422,574

30,517,308

9,000,000

10,500,000

Amounts owing to holding company

-

125,185,978

17,817,066

-

-

Provision for taxation

-

-

-

307

40

Other liabilities

-

-

-

7,251,000

9,824,309

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

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

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

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

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

TOTAL CURRENT LIABILITIES

228,481,645

202,672,941

115,136,172

37,948,545

31,573,232

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

(92,970,483)

(79,442,328)

(54,543,982)

2,015,395

9,829,891

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

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

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

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

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

TOTAL NET ASSETS

44,170,382

39,451,112

46,086,835

39,242,982

33,269,675

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

500,000

500,000

500,000

500,000

500,000

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

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

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

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

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

TOTAL SHARE CAPITAL

500,000

500,000

500,000

500,000

500,000

RESERVES

Revaluation reserve

483,093

483,093

483,093

483,093

483,093

Retained profit/(loss) carried forward

43,187,289

34,861,098

39,107,522

34,001,693

29,931,773

Others

-

-

-

1,878

1,878

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

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

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

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

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

TOTAL RESERVES

43,670,382

35,344,191

39,590,615

34,486,664

30,416,744

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

44,170,382

35,844,191

40,090,615

34,986,664

30,916,744

LONG TERM LIABILITIES

Long term loans

-

3,276,814

4,345,449

1,834,100

-

Deferred taxation

-

330,107

1,650,771

2,422,218

2,352,931

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

3,606,921

5,996,220

4,256,318

2,352,931

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

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

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

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

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

44,170,382

39,451,112

46,086,835

39,242,982

33,269,675

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

TERANG NUSA (MALAYSIA) SDN. BHD.

 

TYPES OF FUNDS

Cash

-

2,812,480

2,740,035

2,264,786

514,640

Net Liquid Funds

-

2,812,480

2,740,035

2,264,786

514,640

Net Liquid Assets

(92,970,483)

(119,882,754)

(84,748,169)

(14,118,241)

(8,264,588)

Net Current Assets/(Liabilities)

(92,970,483)

(79,442,328)

(54,543,982)

2,015,395

9,829,891

Net Tangible Assets

44,170,382

39,451,112

46,086,835

39,242,982

33,269,675

Net Monetary Assets

(92,970,483)

(123,489,675)

(90,744,389)

(18,374,559)

(10,617,519)

BALANCE SHEET ITEMS

Total Borrowings

-

37,773,667

37,826,546

12,869,638

10,666,519

Total Liabilities

228,481,645

206,279,862

121,132,392

42,204,863

33,926,163

Total Assets

272,652,027

242,124,053

161,223,007

77,191,527

64,842,907

Net Assets

44,170,382

39,451,112

46,086,835

39,242,982

33,269,675

Net Assets Backing

44,170,382

35,844,191

40,090,615

34,986,664

30,916,744

Shareholders' Funds

44,170,382

35,844,191

40,090,615

34,986,664

30,916,744

Total Share Capital

500,000

500,000

500,000

500,000

500,000

Total Reserves

43,670,382

35,344,191

39,590,615

34,486,664

30,416,744

LIQUIDITY (Times)

Cash Ratio

-

0.01

0.02

0.06

0.02

Liquid Ratio

-

0.41

0.26

0.63

0.74

Current Ratio

0.59

0.61

0.53

1.05

1.31

WORKING CAPITAL CONTROL (Days)

Stock Ratio

-

74

69

88

104

Debtors Ratio

-

144

57

117

131

Creditors Ratio

-

73

121

26

50

SOLVENCY RATIOS (Times)

Gearing Ratio

-

1.05

0.94

0.37

0.35

Liabilities Ratio

5.17

5.75

3.02

1.21

1.10

Times Interest Earned Ratio

-

(0.31)

7.20

6.30

11.70

Assets Backing Ratio

88.34

78.90

92.17

78.49

66.54

PERFORMANCE RATIO (%)

Operating Profit Margin

3.89

(2.80)

5.24

9.18

7.80

Net Profit Margin

5.55

(2.14)

5.73

9.07

7.00

Return On Net Assets

20.34

(3.37)

21.00

18.59

16.34

Return On Capital Employed

20.34

(3.30)

20.79

18.34

16.26

Return On Shareholders' Funds/Equity

29.04

(11.85)

22.71

17.35

14.42

Dividend Pay Out Ratio (Times)

0.35

0.00

0.44

0.33

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

-

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.32

UK Pound

1

Rs.100.04

Euro

1

Rs.82.65

                

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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.