MIRA INFORM REPORT

 

 

Report Date :

21.08.2014

 

IDENTIFICATION DETAILS

 

Name :

QD HERBS SDN. BHD.

 

 

Registered Office :

110B-1, Jalan Raja Permaisuri Bainun, 30250 Ipoh, Perak

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

19.02.1997

 

 

Com. Reg. No.:

420038-W

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Herbal and Pharmaceutical Products.

 

 

No of Employees :

50

 

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 – 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.

:

420038-W

COMPANY NAME

:

QD HERBS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

19/02/1997

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

110B-1, JALAN RAJA PERMAISURI BAINUN, 30250 IPOH, PERAK, MALAYSIA.

BUSINESS ADDRESS

:

NO 1 & 3, PERINDUSTRIAN PENGKALAN 35, TAMAN PERINDUSTRIAN SRI PENGKALAN, JALAN LAHAT, 31650 IPOH, PERAK, MALAYSIA.

TEL.NO.

:

05-3229733/3220733

FAX.NO.

:

05-3218733

CONTACT PERSON

:

CHUA KAY LIN ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

21001

PRINCIPAL ACTIVITY

:

MANUFACTURING OF HERBAL AND PHARMACEUTICAL PRODUCTS

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 1,066,000.00 DIVIDED INTO 

ORDINARY SHARES 920,000 CASH AND 146,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 6,868,953 [2013]

NET WORTH

:

MYR 2,194,631 [2013]

 

 

 

STAFF STRENGTH

:

50 [2014]

BANKER (S)

:

CIMB BANK BHD
PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

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 herbal and pharmaceutical products.

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

The immediate holding company of the Subject is ASTROBUMI CORPORATION SDN. BHD., 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 1,066,000.00

23/03/2000

MYR 1,000,000.00

MYR 986,000.00

28/08/1998

MYR 500,000.00

MYR 246,000.00

09/09/1997

MYR 500,000.00

MYR 100,000.00

12/06/1997

MYR 500,000.00

MYR 70,000.00

19/02/1997

MYR 500,000.00

MYR 2.00

 

 

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

 


Name

Address

IC/PP/Loc No

Shareholding

(%)

ASTROBUMI CORPORATION SDN. BHD.

18, JALAN UTAMA 2/11, TAMAN PERINDUSTRIAN MAJU JAYA PUCHONG, BATU 14, JALAN PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

377541P

986,200.00

92.51

MR. CHOONG CHEE PING +

11, HALA STADIUM, TAMAN IPOH, 31400 IPOH, PERAK, MALAYSIA.

570713-08-5337 5165857

39,900.00

3.74

MR. CHOONG CHEE YEE

28, DATARAN PERAJURIT 3, TAMAN KEMUNCAK, 31400 IPOH, PERAK, MALAYSIA.

470907-08-5521 0615002

39,900.00

3.74

 

 

 

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

------

 

 

 

1,066,000.00

100.00

 

 

 

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

=====

+ Also Director

 


DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. PANG KOOI YAN

Address

:

10, USJ 11/2C, UEP SUBANG JAYA, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

6837751

New IC No

:

620707-08-6141

Date of Birth

:

07/07/1962

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

12/07/1999

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHUA KAY LIN

Address

:

16, JALAN PASIR DELIMA 1, TAMAN DESA HARUM, 31650 IPOH, PERAK, MALAYSIA.

IC / PP No

:

6732715

New IC No

:

620303-08-6495

Date of Birth

:

03/03/1962

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

12/07/1999

 

DIRECTOR 3

 

Name Of Subject

:

MR. CHOONG CHEE PING

Address

:

11, HALA STADIUM, TAMAN IPOH, 31400 IPOH, PERAK, MALAYSIA.

IC / PP No

:

5165857

New IC No

:

570713-08-5337

Date of Birth

:

13/07/1957

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

19/02/1997



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHUA KAY LIN

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

HOR WAI SZE

 

Position

:

PRODUCTION ENGINEER

 

 

 

 

 

3)

Name of Subject

:

TEH LAI QUINN

 

Position

:

QUALITY CONTROL MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

LIM HOON NAM & CO.

Auditor' Address

:

110B-2, JALAN RAJA PERMAISURI BAINUN, 30250 IPOH, PERAK, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. NG SENG @ NG KIN SIN

 

IC / PP No

:

1419044

 

New IC No

:

430911-08-5333

 

Address

:

3, JALAN FOO KAN YIK, TAMAN CHATEAU, 30250 IPOH, PERAK, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

2)

Name

:

PUBLIC BANK BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

18/12/1997

N/A

BANK BUMIPUTRA MALAYSIA BERHAD

MYR 135,000.00

Satisfied

2

13/03/2000

LETTER OF SET-OFF

PUBLIC BANK BERHAD

MYR 250,000.00

Unsatisfied

3

13/03/2000

LETTER OF SET-OFF

PUBLIC BANK BERHAD

MYR 100,000.00

Unsatisfied

4

13/03/2000

A FIRST LEGAL CHARGE UNDER THE NATIONAL LAND CODE

PUBLIC BANK BERHAD

MYR 150,000.00

Unsatisfied

5

28/12/2001

LETTER OF SET-OFF

PUBLIC BANK BERHAD

MYR 400,000.00

Unsatisfied

6

28/12/2004

FORM OF CHARGE AS SPECIFIED UNDER SECTION 24 OF THE NATIONAL LAND CODE

PUBLIC BANK BERHAD

MYR 135,000.00

Unsatisfied

7

30/11/2007

FIRST PARTY LEGAL CHARGE UNDER THE NATIONAL LAND CODE

PUBLIC BANK BERHAD

-

Unsatisfied

8

09/09/2009

FIRST PARTY LEGAL CHARGE UNDER THE NATIONAL LAND CODE 1965 AS COLLATERAL SECURITY TO THE FACILITIES AGREEMENT

PUBLIC BANK BERHAD

-

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

Import Countries

:

UNITED STATES,AUSTRALIA,CANADA,NEW ZEALAND,SOUTH AFRICA


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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

CAMBODIA

HONG KONG

TAIWAN

 

 

 

 

 

 

 

 

 

 

 

 

Payment Mode

:

CASH
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

WHOLESALERS,PHARMACIES,PHARMACEUTICAL INDUSTRIES



OPERATIONS

 

Products manufactured

:

PHARMACEUTICAL PRODUCTS

 

 

 

 

Total Number of Employees:

YEAR

2014

2009

GROUP

N/A

N/A

COMPANY

50

50

 

Branch

:

NO

 

 

Other Information:


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

The Subject is manufacturing of herbal and pharmaceutical products.

The Subject manufacture their product based on customers request.

The Subject supply the product more to the wholesale and wholesale will divide to hypermarket and pharmacies.

The Subject also enganged with COSWAY. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

053220733/3229733

Current Telephone Number

:

05-3229733/3220733

Match

:

YES

 

 

 

Address Provided by Client

:

NO 1 & 3, PERSIARAN PERINDUSTRIAN PENGKALAN, 35TAMAN PERINDUSTRIAN SRI

PENGKALAN, JALAN LAHAT, 31500 PERAK, MALAYSIA

Current Address

:

NO 1 & 3, PERINDUSTRIAN PENGKALAN 35, TAMAN PERINDUSTRIAN SRI PENGKALAN, JALAN LAHAT, 31650 IPOH, PERAK, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 14th August 2014, we contacted one of the staff from the Subject Ms Fong from Administration Department and she provided some information regarding the Subject.

 

 

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Acceptable

[

11.73%

]

 

Return on Net Assets

:

Acceptable

[

16.21%

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

44 Days

]

 

Debtor Ratio

:

Favourable

[

48 Days

]

 

Creditors Ratio

:

Favourable

[

40 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

:

Favourable

[

1.64 Times

]

 

Current Ratio

:

Favourable

[

2.20 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

:

Acceptable

[

4.64 Times

]

 

Gearing Ratio

:

Favourable

[

0.38 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. 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 :

 

 

 

 

 

 

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. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. 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 : 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

21001 : Manufacture of medicinal active substances to be used for their pharmacological properties in the manufacture of medicaments 

 

 

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 1997, the Subject is a Private Limited company, focusing on manufacturing of herbal and pharmaceutical products. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. 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 is operating on a medium scale and it has approximately 50 employees in its business 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. 


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 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 2,194,631, 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. 


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


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the 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)

QD HERBS SDN. BHD.

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

2009-12-31

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

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

6,868,953

4,693,360

4,023,847

3,746,940

3,793,772

 

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

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

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

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

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

Total Turnover

6,868,953

4,693,360

4,023,847

3,746,940

3,793,772

Costs of Goods Sold

(5,279,963)

(3,549,519)

-

-

-

 

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

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

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

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

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

Gross Profit

1,588,990

1,143,841

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

337,009

251,953

120,316

226,210

47,886

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

337,009

251,953

120,316

226,210

47,886

Taxation

(79,506)

(57,588)

(32,650)

(50,951)

(15,641)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

257,503

194,365

87,666

175,259

32,245

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

911,103

747,652

690,900

515,641

483,396

 

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

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

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

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

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

As restated

911,103

747,652

690,900

515,641

483,396

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,168,606

942,017

778,566

690,900

515,641

DIVIDENDS - Ordinary (paid & proposed)

(39,975)

(30,914)

(30,914)

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,128,631

911,103

747,652

690,900

515,641

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

8,647

23,164

-

-

-

Lease interest

18,201

5,263

-

-

-

Term loan / Borrowing

26,804

-

-

-

-

Others

39,019

20,663

-

-

-

 

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

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

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

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

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

 

92,671

49,090

-

-

-

 

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

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

 

 

 

 

 

BALANCE SHEET

 

 

QD HERBS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

905,925

832,436

665,815

651,656

696,990

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

905,925

832,436

665,815

651,656

696,990

 

 

 

 

 

 

Stocks

819,301

613,640

-

-

-

Trade debtors

902,792

806,007

-

-

-

Other debtors, deposits & prepayments

451,020

41,395

-

-

-

Short term deposits

845,989

821,018

-

-

-

Cash & bank balances

177,790

148,004

-

-

-

Others

3,864

31,255

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

3,200,756

2,461,319

2,207,819

2,265,944

2,113,799

 

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

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

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

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

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

TOTAL ASSET

4,106,681

3,293,755

2,873,634

2,917,600

2,810,789

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

574,874

372,531

-

-

-

Other creditors & accruals

469,659

370,144

-

-

-

Hire purchase & lease creditors

82,385

41,948

-

-

-

Bank overdraft

109,362

314,379

-

-

-

Short term borrowings/Term loans

54,098

-

-

-

-

Bill & acceptances payable

166,070

165,056

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

1,456,448

1,264,058

985,776

1,067,245

1,183,776

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,744,308

1,197,261

1,222,043

1,198,699

930,023

 

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

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

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

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

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

TOTAL NET ASSETS

2,650,233

2,029,697

1,887,858

1,850,355

1,627,013

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

1,066,000

1,066,000

1,066,000

1,066,000

1,066,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

1,066,000

1,066,000

1,066,000

1,066,000

1,066,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

1,128,631

911,103

747,652

690,900

515,641

 

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

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

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

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

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

TOTAL RESERVES

1,128,631

911,103

747,652

690,900

515,641

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

2,194,631

1,977,103

1,813,652

1,756,900

1,581,641

 

 

 

 

 

 

Long term loans

197,706

-

-

-

-

Lease obligations

233,962

22,693

-

-

-

Deferred taxation

23,934

29,901

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

455,602

52,594

74,206

93,455

45,372

 

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

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

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

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

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

 

2,650,233

2,029,697

1,887,858

1,850,355

1,627,013

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

QD HERBS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

1,023,779

969,022

-

-

-

Net Liquid Funds

748,347

489,587

-

-

-

Net Liquid Assets

925,007

583,621

1,222,043

1,198,699

930,023

Net Current Assets/(Liabilities)

1,744,308

1,197,261

1,222,043

1,198,699

930,023

Net Tangible Assets

2,650,233

2,029,697

1,887,858

1,850,355

1,627,013

Net Monetary Assets

469,405

531,027

1,147,837

1,105,244

884,651

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

843,583

544,076

-

-

-

Total Liabilities

1,912,050

1,316,652

1,059,982

1,160,700

1,229,148

Total Assets

4,106,681

3,293,755

2,873,634

2,917,600

2,810,789

Net Assets

2,650,233

2,029,697

1,887,858

1,850,355

1,627,013

Net Assets Backing

2,194,631

1,977,103

1,813,652

1,756,900

1,581,641

Shareholders' Funds

2,194,631

1,977,103

1,813,652

1,756,900

1,581,641

Total Share Capital

1,066,000

1,066,000

1,066,000

1,066,000

1,066,000

Total Reserves

1,128,631

911,103

747,652

690,900

515,641

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.70

0.77

-

-

-

Liquid Ratio

1.64

1.46

-

-

-

Current Ratio

2.20

1.95

2.24

2.12

1.79

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

44

48

-

-

-

Debtors Ratio

48

63

-

-

-

Creditors Ratio

40

38

-

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.38

0.28

-

-

-

Liabilities Ratio

0.87

0.67

0.58

0.66

0.78

Times Interest Earned Ratio

4.64

6.13

-

-

-

Assets Backing Ratio

2.49

1.90

1.77

1.74

1.53

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

4.91

5.37

2.99

6.04

1.26

Net Profit Margin

3.75

4.14

2.18

4.68

0.85

Return On Net Assets

16.21

14.83

6.37

12.23

2.94

Return On Capital Employed

15.12

12.62

6.37

12.23

2.94

Return On Shareholders' Funds/Equity

11.73

9.83

4.83

9.98

2.04

Dividend Pay Out Ratio (Times)

0.16

0.16

0.35

-

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

 

 

 




 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.67

UK Pound

1

Rs.100.81

Euro

1

Rs.80.73

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

SMN

 

 

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.