MIRA INFORM REPORT

 

 

Report Date :

17.04.2014

 

IDENTIFICATION DETAILS

 

Name :

KARYON (MALAYSIA) SDN. BHD.

 

 

Formerly Known As :

INSA-RIA SDN BHD (14/03/1996)

 

 

Registered Office :

Suite 13.01, City Plaza 21, Jalan Tebrau, 13th Floor, 80300 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

10.01.1994

 

 

Com. Reg. No.:

286370-H

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Foam Boosters, Concentrated Detergent Paste, Washing Detergent And Shampoo

 

 

No. of Employees

20

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

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.

:

286370-H

COMPANY NAME

:

KARYON (MALAYSIA) SDN. BHD.

FORMER NAME

:

INSA-RIA SDN BHD (14/03/1996)

INCORPORATION DATE

:

10/01/1994

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 13.01, CITY PLAZA 21, JALAN TEBRAU, 13TH FLOOR, 80300 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

16, JALAN UTARID U5/16 , MAHSING INTEGRATED INDUSTRIAL PARK ,SECTION U5, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78464325

FAX.NO.

:

03-78463327

EMAIL

:

INFO@KARYON.COM.MY

WEB SITE

:

WWW.KARYON.COM.MY

CONTACT PERSON

:

LOH CHEN YOOK ( DIRECTOR )

INDUSTRY CODE

:

20231

PRINCIPAL ACTIVITY

:

MANUFACTURING OF FOAM BOOSTERS, CONCENTRATED DETERGENT PASTE, WASHING DETERGENT AND SHAMPOO

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 1,031,470.00 DIVIDED INTO
ORDINARY SHARES 1,031,470 CASH OF MYR 1.00 EACH.

SALES

:

MYR 19,856,609 [2012]

NET WORTH

:

MYR 4,652,102 [2012]

STAFF STRENGTH

:

20 [2014]

BANKER (S)

:

RHB BANK BHD
AMBANK (M) BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

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 foam boosters, concentrated detergent paste, washing detergent and shampoo.

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

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

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 5,000,000.00

MYR 1,031,470.00

09/12/2002

MYR 5,000,000.00

MYR 672,200.00

22/03/2002

MYR 500,000.00

MYR 500,000.00

10/05/2001

MYR 500,000.00

MYR 400,000.00

26/06/2000

MYR 500,000.00

MYR 250,000.00

17/03/1997

MYR 100,000.00

MYR 100,000.00

10/01/1994

MYR 100,000.00

MYR 2.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

KARYON INDUSTRIES BERHAD

SUITE 1301, CITY PLAZA, JALAN TEBRAU, 13TH FLOOR, 80300 JOHOR BAHRU, JOHOR, MALAYSIA.

612797T

1,031,470.00

100.00

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

------

1,031,470.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. LOH CHEN YOOK

Address

:

33, JALAN SETIABAKTI 3, BUKIT DAMANSARA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

4844106

New IC No

:

541215-10-6147

Date of Birth

:

15/12/1954

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

01/08/2005

 

DIRECTOR 2

 

Name Of Subject

:

DR CHUA KEE LAM

Address

:

119, JALAN PESONA, TAMAN JOHOR JAYA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

1569044

New IC No

:

411026-01-5013

Date of Birth

:

26/10/1941

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

30/04/2013

 

DIRECTOR 3

 

Name Of Subject

:

MR. LOH FATT CHONG

Address

:

33, JALAN SETIA BAKTI 3, BUKIT DAMANSARA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

790608-14-6091

Date of Birth

:

08/06/1979

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

02/01/2006



MANAGEMENT

 

 

 

1)

Name of Subject

:

LOH CHEN YOOK

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

MESSRS RAKI CS TAN & RAMANAN

Auditor' Address

:

WISMA TCS, 8M, JALAN TUN ABDUL RAZAK, SUSUR 3, 80200 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. YONG MAY LI

IC / PP No

:

8200619

New IC No

:

560419-01-5064

Address

:

25, JALAN SETIA 5/2, TAMAN SETIA INDAH, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

 

2)

Company Secretary

:

MS. WOO MIN FONG

IC / PP No

:

3516413

New IC No

:

460531-01-5584

Address

:

5, JALAN PERDANA, 80300 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

RHB BANK BHD

 

2)

Name

:

AMBANK (M) BHD

 

3)

Name

:

MALAYAN BANKING BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

26/05/2003

FACILITIES AGREEMENT & 1ST LEGAL CHARGE & 2ND LEGAL CHARGE

RHB BANK BERHAD

MYR 900,000.00

Satisfied

2

26/05/2003

FACILITIES AGREEMENT & 3RD LEGAL CHARGE & LETTER OF SET-OFF

RHB BANK BERHAD

MYR 200,000.00

Unsatisfied

3

13/08/2004

SUPPLEMENTAL FACILITIES AGREEMENT & 4TH CHARGE

RHB BANK BERHAD

MYR 635,000.00

Unsatisfied

4

12/05/2005

N/A

MALAYAN BANKING BHD

MYR 1,000,000.00

Satisfied

5

16/08/2005

FACILITY AGREEMENT & LETTER OF SET-OFF (FIRST PARTY)

RHB BANK BERHAD

-

Unsatisfied

6

09/01/2009

MEMORANDUM OF DEPOSIT AND LETTER OF SET-OFF

AMBANK (M) BERHAD

MYR 2,100,000.00

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

Overseas

:

YES



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

[

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

:

CHINA

INDIA

SINGAPORE

THAILAND

VIETNAM

TURKEY

SYRIA

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Products manufactured

:

DETERGENT, DISHWASHER, SHAMPOO AND ETC

Member(s) / Affiliate(s)

:

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

2009

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

COMPANY

20

20

20

20

15

15

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of foam boosters, concentrated detergent paste, washing detergent and shampoo.

The Subject is manufacturer of toiletries products and Palm Kernel Diethanolamide (PKDE - foam booster plus thickener), which also known as Cocamide DEA (CDE).

Karyon is one of the major producers of PKDE in Malaysia.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-78464325

Match

:

N/A

Address Provided by Client

:

16, JALAN UTARID U5/16 , MAHSING INTEGRATED INDUSTRIAL PARK ,SECTION U5,40150,SHAH ALAM,SELANGOR.

Current Address

:

16, JALAN UTARID U5/16 , MAHSING INTEGRATED INDUSTRIAL PARK ,SECTION U5, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 11th April 2014 we contacted one of the staff from the Subject and she provided some information.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2008 - 2012

]

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

Return on Shareholder Funds

:

Acceptable

[

15.15%

]

Return on Net Assets

:

Acceptable

[

16.88%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Favourable

[

23 Days

]

Debtor Ratio

:

Acceptable

[

60 Days

]

Creditors Ratio

:

Favourable

[

21 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Favourable

[

1.23 Times

]

Current Ratio

:

Unfavourable

[

1.45 Times

]

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

Solvency

Interest Cover

:

Favourable

[

22.62 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

Overall Assessment :

Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

Overall financial condition of the Subject : STABLE

 

 

 

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

20231 : Manufacture of soap and detergents, cleaning and polishing preparations

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 1994, the Subject is a Private Limited company, focusing on manufacturing of foam boosters, concentrated detergent paste, washing detergent and shampoo. Its impressive track record shows that the Subject has been able to keep its business going despite the passing of two decades of highs and lows in the local economy. 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. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject's business operation is supported by 20 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

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. The Subject 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 Subject 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 4,652,102, 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. The Subject'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 Subject has a good control over its resources.

We regard that the Subject's overall payment habit is prompt. The Subject 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 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)

KARYON (MALAYSIA) 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

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

SUMMARY

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

19,856,609

18,386,219

15,546,005

13,746,070

16,615,697

Other Income

73,512

117,492

-

-

-

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

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

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

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

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

Total Turnover

19,930,121

18,503,711

15,546,005

13,746,070

16,615,697

Costs of Goods Sold

(17,595,647)

(16,605,323)

-

-

-

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

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

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

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

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

Gross Profit

2,334,474

1,898,388

-

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

772,720

751,598

496,237

1,190,302

562,759

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

772,720

751,598

496,237

1,190,302

562,759

Taxation

(67,720)

(189,896)

(131,207)

(296,196)

(137,994)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

705,000

561,702

365,030

894,106

424,765

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

3,372,057

3,996,545

3,631,515

2,737,409

2,602,693

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

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

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

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

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

As restated

3,372,057

3,996,545

3,631,515

2,737,409

2,602,693

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

4,077,057

4,558,247

3,996,545

3,631,515

3,027,458

DIVIDENDS - Ordinary (paid & proposed)

(456,425)

(1,186,190)

-

-

(290,049)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

3,620,632

3,372,057

3,996,545

3,631,515

2,737,409

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bankers' acceptance

5,388

46,927

-

-

-

Hire purchase

-

-

-

-

2,215

Letter of credit

-

598

-

-

-

Term loan / Borrowing

-

-

-

8,671

44,289

Others

30,345

18,981

-

27,071

38,893

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

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

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

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

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

35,733

66,506

-

35,742

85,397

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

KARYON (MALAYSIA) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

1,709,821

1,756,086

2,390,619

2,448,664

2,511,693

LONG TERM INVESTMENTS/OTHER ASSETS

Others

530,121

536,432

-

-

-

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

530,121

536,432

-

-

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

2,239,942

2,292,518

2,390,619

2,448,664

2,511,693

CURRENT ASSETS

Stocks

1,250,114

1,212,038

-

1,181,920

1,180,686

Trade debtors

3,272,024

3,160,718

-

2,675,984

2,555,321

Other debtors, deposits & prepayments

47,781

38,471

-

37,115

41,256

Short term deposits

606,511

594,268

-

-

347,794

Cash & bank balances

2,924,978

2,049,960

-

1,207,391

853,446

Others

155,600

178,700

-

165,804

357,756

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

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

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

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

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

TOTAL CURRENT ASSETS

8,257,008

7,234,155

6,356,445

5,268,214

5,336,259

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

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

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

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

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

TOTAL ASSET

10,496,950

9,526,673

8,747,064

7,716,878

7,847,952

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

1,011,359

770,510

-

277,215

1,008,739

Other creditors & accruals

151,195

84,937

-

2,349,678

2,301,325

Short term borrowings/Term loans

-

-

-

-

152,583

Bill & acceptances payable

-

713,000

-

302,000

209,000

Amounts owing to holding company

4,529,699

3,415,699

-

-

-

Amounts owing to related companies

15,595

-

-

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

5,707,848

4,984,146

3,580,049

2,928,893

3,671,647

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

2,549,160

2,250,009

2,776,396

2,339,321

1,664,612

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

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

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

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

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

TOTAL NET ASSETS

4,789,102

4,542,527

5,167,015

4,787,985

4,176,305

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

1,031,470

1,031,470

1,031,470

1,031,470

1,031,470

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

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

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

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

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

TOTAL SHARE CAPITAL

1,031,470

1,031,470

1,031,470

1,031,470

1,031,470

RESERVES

Retained profit/(loss) carried forward

3,620,632

3,372,057

3,996,545

3,631,515

2,737,409

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

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

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

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

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

TOTAL RESERVES

3,620,632

3,372,057

3,996,545

3,631,515

2,737,409

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

4,652,102

4,403,527

5,028,015

4,662,985

3,768,879

LONG TERM LIABILITIES

Long term loans

-

-

-

-

296,426

Deferred taxation

137,000

139,000

-

125,000

111,000

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

137,000

139,000

139,000

125,000

407,426

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

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

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

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

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

4,789,102

4,542,527

5,167,015

4,787,985

4,176,305

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

KARYON (MALAYSIA) SDN. BHD.

 

TYPES OF FUNDS

Cash

3,531,489

2,644,228

-

1,207,391

1,201,240

Net Liquid Funds

3,531,489

1,931,228

-

905,391

992,240

Net Liquid Assets

1,299,046

1,037,971

2,776,396

1,157,401

483,926

Net Current Assets/(Liabilities)

2,549,160

2,250,009

2,776,396

2,339,321

1,664,612

Net Tangible Assets

4,789,102

4,542,527

5,167,015

4,787,985

4,176,305

Net Monetary Assets

1,162,046

898,971

2,637,396

1,032,401

76,500

BALANCE SHEET ITEMS

Total Borrowings

0

713,000

-

302,000

658,009

Total Liabilities

5,844,848

5,123,146

3,719,049

3,053,893

4,079,073

Total Assets

10,496,950

9,526,673

8,747,064

7,716,878

7,847,952

Net Assets

4,789,102

4,542,527

5,167,015

4,787,985

4,176,305

Net Assets Backing

4,652,102

4,403,527

5,028,015

4,662,985

3,768,879

Shareholders' Funds

4,652,102

4,403,527

5,028,015

4,662,985

3,768,879

Total Share Capital

1,031,470

1,031,470

1,031,470

1,031,470

1,031,470

Total Reserves

3,620,632

3,372,057

3,996,545

3,631,515

2,737,409

LIQUIDITY (Times)

Cash Ratio

0.62

0.53

-

0.41

0.33

Liquid Ratio

1.23

1.21

-

1.40

1.13

Current Ratio

1.45

1.45

1.78

1.80

1.45

WORKING CAPITAL CONTROL (Days)

Stock Ratio

23

24

-

31

26

Debtors Ratio

60

63

-

71

56

Creditors Ratio

21

17

-

7

22

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.16

-

0.06

0.17

Liabilities Ratio

1.26

1.16

0.74

0.65

1.08

Times Interest Earned Ratio

22.62

12.30

-

34.30

7.59

Assets Backing Ratio

4.64

4.40

5.01

4.64

4.05

PERFORMANCE RATIO (%)

Operating Profit Margin

3.89

4.09

3.19

8.66

3.39

Net Profit Margin

3.55

3.06

2.35

6.50

2.56

Return On Net Assets

16.88

18.01

9.60

25.61

15.52

Return On Capital Employed

16.88

18.01

9.60

25.61

15.52

Return On Shareholders' Funds/Equity

15.15

12.76

7.26

19.17

11.27

Dividend Pay Out Ratio (Times)

0.65

2.11

-

0.00

0.68

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

-

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.22

UK Pound

1

Rs.100.78

Euro

1

Rs.83.29

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

PDT

 

               

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.