MIRA INFORM REPORT

 

 

Report Date :

05.08.2014

 

IDENTIFICATION DETAILS

 

Name :

LUVATA MALAYSIA SDN. BHD.

 

 

Formerly Known As :

OUTOKUMPU COPPER PRODUCTS (MALAYSIA) SDN BHD (27/06/2006)

 

 

Registered Office :

Suite 335A, Johor Tower, Jalan Gereja, 3rd Floor, 80100 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

16.01.1997

 

 

Com. Reg. No.:

417125-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing and Dealing of copper products

 

 

No of Employees :

300 [2014]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow But Correct

 

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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 sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara 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 earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

 

Source : CIA

 

 


 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

417125-K

COMPANY NAME

:

LUVATA MALAYSIA SDN. BHD.

FORMER NAME

:

OUTOKUMPU COPPER PRODUCTS (MALAYSIA) SDN BHD (27/06/2006)

INCORPORATION DATE

:

16/01/1997

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE 335A, JOHOR TOWER, JALAN GEREJA, 3RD FLOOR, 80100 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

PLO 573, JALAN KELULI 10, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2526688

FAX.NO.

:

07-2521336

WEB SITE

:

WWW.LUVATA.COM

CONTACT PERSON

:

BERNDT MICHAEL NORDGREN ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

23

PRINCIPAL ACTIVITY

:

MANUFACTURING AND DEALING OF COPPER PRODUCTS

AUTHORISED CAPITAL

:

MYR 120,000,000.00 DIVIDED INTO
ORDINARY SHARE 20,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 100,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 120,000,000.00 DIVIDED INTO
ORDINARY SHARES 20,000,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 31,842,755 CASH AND 68,157,245 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 736,360,230 [2012]

NET WORTH

:

MYR 197,821,548 [2012]

M1000 OVERALL RANKING

:

648[2011]

M1000 INDUSTRY RANKING

:

9[2011]

 

 

 

STAFF STRENGTH

:

300 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

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 and dealing of copper products.

 

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

 

According to the Malaysia 1000 publication, the Subject's ranking are as follows:

 

 

 

 

YEAR

2011

 

 

OVERALL RANKING

648

 

 

INDUSTRY RANKING

9

 

 

 

The immediate holding company of the Subject is LUVATA ESPOO OY, a company incorporated in FINLAND.

 

The ultimate holding company of the Subject is LUVATA OY, a company incorporated in FINLAND.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 120,000,000.00

MYR 120,000,000.00

25/05/1998

MYR 120,000,000.00

MYR 78,000,000.00

09/02/1998

MYR 120,000,000.00

MYR 24,000,000.00

16/01/1997

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

(%)

LUVATA ESPOO OY

TUULIKUJA 2, FIN-02100, ESPOO, FINLAND.

412.948

120,000,000.00

100.00

 

 

 

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

------

 

 

 

120,000,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

DATUK ABDUL RAMAN BIN HAJI SAAD HAJI

Address

:

42, JALAN JINGGA 4, TAMAN PELANGI, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

5635178

New IC No

:

490402-04-5557

Date of Birth

:

02/04/1949

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

10/12/1997

 

 

 

Qualification

:

LAW (HONS) FROM UNIVERSITY OF S'PORE IN 1974 & POST GRADUATE PROGRAM FROM STANFORD UNIVERSITY, PALO ALTO, CALIFORNIA IN 1977

Profile

:

FEDERAL COUNSEL/DEPUTY PUBLIC PROSECUTOR OF ATTORNEY GENERAL'S CHAMBERS FROM MID 1975 TO 1977 CALL TO MALAYSIAN BAR IN AUG 1977 & ADMITTED AS AN ADVOCATE & SOLICITOR OF SUPREME COURT OF THE REPUBLIC OF S'PORE IN FEB 1995 JOINED MESSRS. ABDUL RAMAN SAAD & ASS IN JB IN 1979

Other Info

:

DATUK DIRECTOSHIPS IN YAYASAN MELAKA, AYER KEROH COUNTRY CLUB BHD COMMITTEE MEMBER OF MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE & INDUSTRY, STATE OF JOHOR BRANCH & NATIONAL VICE-PRESIDENT OF MALAYSIA WEIGHT LIFTING FEDERATION MEMBER OF THE FINANCE COMMITTEE OF MALAYSIA OLYMPIC COUNCIL

 

DIRECTOR 2

 

Name Of Subject

:

EAPEN ABRAHAM A/L K E ABRAHAM

Address

:

10, JALAN LEMBAH 8, BANDAR SERI ALAM, 81750 MASAI, JOHOR, MALAYSIA.

IC / PP No

:

4793147

New IC No

:

550404-01-5919

Date of Birth

:

04/04/1955

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

19/10/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

ACTING COUNTRY HEAD BERNDT MICHAEL NORDGREN

Address

:

B8-W2, BLK B, KONDOMINIUM STRAITS VIEW, JALAN PERMAS SELATAN, TAMAN PERMAS JAYA, 81750 MASAI, JOHOR, MALAYSIA.

IC / PP No

:

PX4214216

 

 

 

 

 

 

 

 

 

Nationality

:

FINN

Date of Appointment

:

19/10/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

LAU SIEW DEE

Address

:

37, JALAN JELITA 15, TAMAN PELANGI INDAH, 81800 ULU TIRAM, JOHOR, MALAYSIA.

IC / PP No

:

A0604714

New IC No

:

670313-01-5856

Date of Birth

:

13/03/1967

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

19/10/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

BERNDT MICHAEL NORDGREN

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

EAPEN ABRAHAM

 

Position

:

ACCOUNTANT

 

 

 

 

 

3)

Name of Subject

:

SIA HENG HUAT

 

Position

:

MARKETING MANAGER

 

 

 

 

 

4)

Name of Subject

:

GERALDINE LAU

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

5)

Name of Subject

:

MOHAMED ARIFF

 

Position

:

PRODUCTION MANAGER

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

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

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

CHONG SIOW PEI

 

 

 

 

 

New IC No

:

790921-01-6322

 

Address

:

26, JALAN TASEK SATU, TAMAN TASEK, 80200 JOHOR BAHRU, JOHOR, 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 SUBJECT


* A check has been conducted in our databank against 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

:

40%

Overseas

:

YES

Percentage

:

60%

Import Countries

:

ASIA



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

:

60%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

40%

Export Market

:

SINGAPORE

AUSTRALIA

NEW ZEALAND

UNITED ARAB EMIRATES

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

Type of Customer

:

AUTOMOTIVE INDUSTRIES,ELECTRICAL & ELECTRONIC INDUSTRIES, TELECOMUNICATION INDUSTRY

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

COPPER PRODUCTS

 

 

 

Product Brand Name

:

AUTOKUMPU

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2003

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

THE ELECTRICAL AND ELECTRONICS ASSOCIATION OF MALAYSIA (TEEAM)

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

 

 

 

Production Capacity

:

APPROXIMATELY 1,500 TONNES PER MONTH

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

 

 

 

 


GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

300

300

270

270

265

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing and dealing of copper products.


The Subject is one of the copper product manufacturer for various industrial applications.


The Subject produces a wide range of products including anodes, brass rod, profiles, rods & bars, sheets & plates, strips, tubes, welding products, wire and related products.


The Subject produces its copper products according to its customers' requirements.


The Subject's products are mainly used in various applications such as electrical and electronic conductivity, switch gears, electrical appliances, bus duct and etc.


The Subject is specialises in custom designed plants for surface treatment of wire and strip as well as treatment of industrial waste water.


The Subject provides its customers with service, maintenance and upgrading of both surface treatment and waste water treatment plants.


The Subject's production machineries are semi-automated.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

072526688

Current Telephone Number

:

07-2526688

Match

:

YES

 

 

 

Address Provided by Client

:

PLO 573, JALAN KELULI 10, KAWASAN PERINDUSTRIAN PASIR GUDANG,81700,PASIR GUDANG,JOHOR.

Current Address

:

PLO 573, JALAN KELULI 10, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the Subject and she provided some information.


The Subject refused to comment anything on its nil turnover 2012.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

6.46%

]

 

Return on Net Assets

:

Unfavourable

[

5.91%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players. The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

51 Days

]

 

Debtor Ratio

:

Favourable

[

50 Days

]

 

Creditors Ratio

:

Favourable

[

57 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. 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

:

Acceptable

[

0.99 Times

]

 

Current Ratio

:

Unfavourable

[

1.72 Times

]

 

 

 

 

 

 

 

 

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

(5.32 Times)

]

 

Gearing Ratio

:

Favourable

[

0.07 Times

]

 

 

 

 

 

 

 

 

The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. The Subject's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the Subject : FAIR

 

\

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

23 : MANUFACTURE OF OTHER NON-METALLIC MINERAL PRODUCTS

 

 

INDUSTRY :

MANUFACTURING

 

 

 

The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domestic oriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand.

 

Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first seven months of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domestic oriented 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 government encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by government in the manufacturing sector such as solar 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 1997, the Subject is a Private Limited company, focusing on manufacturing and dealing of copper products. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.


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. The Subject is a fairly large and rapidly growing company with over 300 staff in its operations 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. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to the Subject.


The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 197,821,548, the Subject should be able to maintain its business in the near terms.


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.


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 normally.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

LUVATA 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

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

736,360,230

952,254,451

816,247,283

514,211,182

781,603,820

Other Income

2,285,786

2,165,223

6,194,683

-

-

 

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

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

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

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

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

Total Turnover

738,646,016

954,419,674

822,441,966

514,211,182

781,603,820

Costs of Goods Sold

(703,276,929)

(912,654,674)

(775,144,731)

-

-

 

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

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

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

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

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

Gross Profit

35,369,087

41,765,000

47,297,235

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

13,883,659

15,818,018

23,256,081

51,507,277

(29,519,846)

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

13,883,659

15,818,018

23,256,081

51,507,277

(29,519,846)

Taxation

(1,094,890)

(3,014,447)

(647,292)

(6,249,657)

6,779,708

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

12,788,769

12,803,571

22,608,789

45,257,620

(22,740,138)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

65,032,779

52,229,208

29,620,419

(15,637,201)

7,102,937

 

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

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

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

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

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

As restated

65,032,779

52,229,208

29,620,419

(15,637,201)

7,102,937

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

77,821,548

65,032,779

52,229,208

29,620,419

(15,637,201)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

77,821,548

65,032,779

52,229,208

29,620,419

(15,637,201)

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

(2,196,762)

(5,078,186)

3,267,987

428,198

453,199

 

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

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

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

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

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

 

(2,196,762)

(5,078,186)

3,267,987

428,198

453,199

 

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

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

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

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

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

 

 

 

 

BALANCE SHEET

 

 

LUVATA MALAYSIA SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

93,950,746

107,271,587

92,031,745

84,106,338

75,220,243

 

 

 

 

 

 

Deferred assets

1,117,000

2,209,000

5,267,000

5,891,000

12,136,000

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,117,000

2,209,000

5,267,000

5,891,000

12,136,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

95,067,746

109,480,587

97,298,745

89,997,338

87,356,243

 

 

 

 

 

 

Stocks

103,856,242

69,284,298

30,476,211

37,453,921

20,458,804

Trade debtors

101,722,911

137,044,573

114,317,067

78,409,671

66,040,850

Other debtors, deposits & prepayments

1,387,411

1,091,412

811,655

1,133,048

1,009,862

Amount due from related companies

852,439

805,527

651,686

585,873

343,878

Cash & bank balances

38,466,307

24,300,933

13,762,800

12,639,511

16,805,027

Others

133,027

119,802

69,024

1,097

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

246,418,337

232,646,545

160,088,443

130,223,121

104,658,421

 

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

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

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

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

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

TOTAL ASSET

341,486,083

342,127,132

257,387,188

220,220,459

192,014,664

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

109,996,467

57,698,663

27,691,827

11,530,776

20,066,170

Other creditors & accruals

7,601,509

15,986,318

5,521,244

4,319,642

6,539,343

Short term borrowings/Term loans

13,761,000

15,230,400

-

-

-

Amounts owing to holding company

12,021,404

67,699,686

37,721,699

675,798

465,625

Amounts owing to related companies

284,155

479,286

432,065

273,235

827,036

Provision for taxation

-

-

-

-

40,146

Other liabilities

-

-

-

20,236,096

13,052

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

143,664,535

157,094,353

71,366,835

37,035,547

27,951,372

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

102,753,802

75,552,192

88,721,608

93,187,574

76,707,049

 

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

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

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

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

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

TOTAL NET ASSETS

197,821,548

185,032,779

186,020,353

183,184,912

164,063,292

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

120,000,000

120,000,000

120,000,000

120,000,000

120,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

120,000,000

120,000,000

120,000,000

120,000,000

120,000,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

77,821,548

65,032,779

52,229,208

29,620,419

(15,637,201)

 

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

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

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

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

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

TOTAL RESERVES

77,821,548

65,032,779

52,229,208

29,620,419

(15,637,201)

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

197,821,548

185,032,779

172,229,208

149,620,419

104,362,799

 

 

 

 

 

 

Others

-

-

13,791,145

33,564,493

59,700,493

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

-

13,791,145

33,564,493

59,700,493

 

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

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

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

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

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

 

197,821,548

185,032,779

186,020,353

183,184,912

164,063,292

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

LUVATA MALAYSIA SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

38,466,307

24,300,933

13,762,800

12,639,511

16,805,027

Net Liquid Funds

38,466,307

24,300,933

13,762,800

12,639,511

16,805,027

Net Liquid Assets

(1,102,440)

6,267,894

58,245,397

55,733,653

56,248,245

Net Current Assets/(Liabilities)

102,753,802

75,552,192

88,721,608

93,187,574

76,707,049

Net Tangible Assets

197,821,548

185,032,779

186,020,353

183,184,912

164,063,292

Net Monetary Assets

(1,102,440)

6,267,894

44,454,252

22,169,160

(3,452,248)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

13,761,000

15,230,400

0

0

0

Total Liabilities

143,664,535

157,094,353

85,157,980

70,600,040

87,651,865

Total Assets

341,486,083

342,127,132

257,387,188

220,220,459

192,014,664

Net Assets

197,821,548

185,032,779

186,020,353

183,184,912

164,063,292

Net Assets Backing

197,821,548

185,032,779

172,229,208

149,620,419

104,362,799

Shareholders' Funds

197,821,548

185,032,779

172,229,208

149,620,419

104,362,799

Total Share Capital

120,000,000

120,000,000

120,000,000

120,000,000

120,000,000

Total Reserves

77,821,548

65,032,779

52,229,208

29,620,419

(15,637,201)

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.27

0.15

0.19

0.34

0.60

Liquid Ratio

0.99

1.04

1.82

2.50

3.01

Current Ratio

1.72

1.48

2.24

3.52

3.74

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

51

27

14

27

10

Debtors Ratio

50

53

51

56

31

Creditors Ratio

57

23

13

8

9

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.07

0.08

0.00

0.00

0.00

Liabilities Ratio

0.73

0.85

0.49

0.47

0.84

Times Interest Earned Ratio

(5.32)

(2.11)

8.12

121.29

(64.14)

Assets Backing Ratio

1.65

1.54

1.55

1.53

1.37

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.89

1.66

2.85

10.02

(3.78)

Net Profit Margin

1.74

1.34

2.77

8.80

(2.91)

Return On Net Assets

5.91

5.80

14.26

28.35

(17.72)

Return On Capital Employed

5.91

5.80

14.26

28.35

(17.72)

Return On Shareholders' Funds/Equity

6.46

6.92

13.13

30.25

(21.79)

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 61.01

UK Pound

1

Rs. 102.69

Euro

1

Rs. 81.90

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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.