MIRA INFORM REPORT

MIRA INFORM REPOR T

 

 

Report Date :

16.12.2014

 

IDENTIFICATION DETAILS

 

Name :

ELEKTRISOLA (MALAYSIA) SDN. BHD.

 

 

Registered Office :

Jalan Damai 1, Janda Baik, 28750 Bentong, Pahang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

07.02.1990

 

 

Com. Reg. No.:

193121-P

 

 

Legal Form :

Private Limited (Limited by Share)

 

 

Line of Business :

Produce & Trade In Magnet Wires.

 

 

No of Employees :

800 [2014]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

NOTES :

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

 

 

ECGC Country Risk Classification List – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with 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.

:

193121-P

COMPANY NAME

:

ELEKTRISOLA (MALAYSIA) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/02/1990

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

ELEKTRISOLA (MALAYSIA) SDN. BHD., JALAN DAMAI 1, JANDA BAIK, 28750 BENTONG, PAHANG, MALAYSIA.

BUSINESS ADDRESS

:

JALAN DAMAI 1, JANDA BAIK, 28750 BENTONG, PAHANG, MALAYSIA.

TEL.NO.

:

09-2210888

FAX.NO.

:

09-2210800

WEB SITE

:

WWW.ELEKTRISOLA.COM

CONTACT PERSON

:

THILO JOCHEN WESTERHAUSEN ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

27320

PRINCIPAL ACTIVITY

:

PRODUCE & TRADE IN MAGNET WIRES

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 48,000,000.00 DIVIDED INTO 
ORDINARY SHARES 48,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 340,660,444 [2013]

NET WORTH

:

MYR 234,503,414 [2013]

M1000 OVERALL RANKING

:

707[2009]

M1000 INDUSTRY RANKING

:

16[2009]

 

 

 

STAFF STRENGTH

:

800 [2014]

BANKER (S)

 

CIMB BANK BHD

HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

The 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) produce & trade in magnet wires.

 

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

2009

2008

 

OVERALL RANKING

707

661

 

INDUSTRY RANKING

16

11

 

 

The immediate holding company of the Subject is DR SCHILDBACH FINANZ GMBH, a company incorporated in GERMANY.

 

 

Share Capital History

 

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 100,000,000.00

MYR 48,000,000.00

 

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

 


Name

Address

IC/PP/Loc No

Shareholding

(%)

DR SCHILDBACH FINANZ GMBH

IN DER HUTTENWIESE, 51574 REICHSHOF-ECKENHAGEN, WEST GERMANY, GERMANY.

HRB 1553

48,000,000.00

100.00

 

 

 

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

------

 

 

 

48,000,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :

 

 

 

Country

Company

(%)

As At

 

INDIA

ELEKTRISOLA (INDIA) PVT LTD

99.00

31/12/2012

 

 

 

 

 

 

INDONESIA

PT ELEKTRISOLAR INDONESIA

99.00

31/12/2012

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. THILO JOCHEN WESTERHAUSEN

Address

:

JALAN DAMAI SATU, JANDA BAIK, 28750 BENTONG, PAHANG, MALAYSIA.

IC / PP No

:

C4K5KK242

 

 

 

 

 

 

 

 

 

Nationality

:

GERMAN

Date of Appointment

:

21/05/1992

 

DIRECTOR 2

 

Name Of Subject

:

OLIVER SCHILDBACH

Address

:

WARTHSRABE 47, D-51674 WIEHL.

IC / PP No

:

C78NJ2C02

Date of Appointment

:

24/08/1990

 

DIRECTOR 3

 

Name Of Subject

:

MR. MOHD KHAIRI BIN MOHD ANUAR

Address

:

LOT 4178 KAMPUNG BARU KETARI, 28700 BENTONG, PAHANG, MALAYSIA.

IC / PP No

:

A0928002

New IC No

:

680301-05-5657

Date of Birth

:

01/03/1968

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

11/11/2009

 

DIRECTOR 4

 

Name Of Subject

:

DETLEF SCHILDBACH

Address

:

AM FEHLBERG 29, D-51580 REICHSHOF-ECKENHAGEN, GERMANY.

IC / PP No

:

533514113

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

24/08/1990

 

 

MANAGEMENT

 

1)

Name of Subject

:

THILO JOCHEN WESTERHAUSEN

 

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, K.L. CENTRAL, P.O.BOX 10192, LEVEL 15, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SEE SIEW CHENG

 

IC / PP No

:

A0735809

 

New IC No

:

670505-10-5880

 

Address

:

17, JALAN ARA SD7/4G, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

2)

Company Secretary

:

MS. LEONG SHIAK WAN

 

IC / PP No

:

A1393261

 

New IC No

:

691117-10-5486

 

Address

:

207, BLOCK E, PARADESA TROPICA, 7 PERSIARAN MERANTI PJU 9, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

BANKING

 

Banking relations are maintained principally with:

 

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

HSBC BANK MALAYSIA BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

07/06/1994

FIXED AND FLOATING CHARGE

BANK OF COMMERCE (M) BERHAD

MYR 6,000,000.00

Unsatisfied

2

07/06/1994

FIXED AND FLOATING CHARGE

HONGKONG BANK MALAYSIA BERHAD

MYR 4,000,000.00

Unsatisfied

3

09/01/2008

MEMORANDUM OF THIRD LEGAL CHARGE

HSBC BANK MALAYSIA BERHAD

-

Unsatisfied

 

 

LITIGATION 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.


No blacklisted record & debt collection case was found in our defaulters' databank.

 

 

PAYMENT RECORD

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

20%

Overseas

:

YES

Percentage

:

80%

Import Countries

:

EUROPE,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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

30%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

70%

Export Market

:

CHINA

TAIWAN

INDIA

INDONESIA

SINGAPORE

PHILIPPINES

SOUTH KOREA


JAPAN

HONG KONG


GERMANY

VIETNAM

THAILAND

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

DISTRIBUTORS,CONTRACTOR,ELECTRICAL & ELECTRONIC INDUSTRIES,ELECTRICAL & MECHANICAL CONTRACTORS

 

 

OPERATIONS

 

Products manufactured

:

WIRES

 

 

 

Product Brand Name

:

ELEKTRISOLA

 

 

 

Award

:

1) ISO/ TS 16949 : 2002 Year :2004

2) MS ISO 14001 Year :2002

3) OHSAS 18001 Year :2001

4) QS 9000 Year :1999

5 ) MS ISO 9001 : 2000 Year :1995

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

 

 

 

Ownership of premises

:

OWNED

 

 

 

 

 

 

 

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

800

750

1,000

1,000

1,000

 

Branch

:

NO

 

 

Other Information:

 

The Subject is principally engaged in the (as a / as an) produce & trade in magnet wires. 


The Subject produces an ultra-fine copper wires mainly for electrical and electronic, telecommunication and automotive industries

 

The Subject's products range as follows:

 

* Metal : Copper, different brass types, aluminium and copper clad aluminium.

* Diameters: 0,010 - 0,50 mm, for technical. 

* Insulation: Wide range of different coating available such as enamelled wire types and selfbonding wire
* Colours: Available on request. 

* Spool sizes: Different spool sizes available such as big spools available for high productivity on automatic high speed winding machines, (0,05 mm wires up to 20 kg per spool).
* Lubrication: Precisely metered lubrication with very small tolerance avoids potting and taping problems, while ensuring super wind ability with no wire breaks.

 

We were informed that the Subject's products are manufactured according to its customers' specifications.

 

The Subject utilizes an advanced automated and semi-automated machines to ensure production of high quality products.

 

 

CURRENT INVESTIGATION 

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

09-2210888

Match

:

N/A

 

 

 

Address Provided by Client

:

JALAN DAMAI 1, JANDA BAIK,28750,BENTONG,PAHANG.

Current Address

:

JALAN DAMAI 1, JANDA BAIK, 28750 BENTONG, PAHANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

Other Investigations

 

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

 

 

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Acceptable

[

15.41%

]

 

Return on Net Assets

:

Acceptable

[

13.45%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.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

:

Unfavourable

[

90 Days

]

 

Debtor Ratio

:

Acceptable

[

56 Days

]

 

Creditors Ratio

:

Favourable

[

19 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

[

2.36 Times

]

 

Current Ratio

:

Favourable

[

3.88 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

[

56.52 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 :

 

 

 

 

 

 

Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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 : STRONG

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

 

 

 

 

 

 

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

 

 

 

 

 

 

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.3

4.0

Unemployment Rate

3.3

3.2

3.0

3.0

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

-

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

-

-

Business Loans Disbursed( % )

15.3

32.2

-

-

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

-

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

45,455

45,441

46,321

-

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

-

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

-

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

284,598

324,761

329,895

-

-

Registration of New Business ( % )

5.0

14.0

2.0

-

-

Business Dissolved ( No. )

20,121

20,380

18,161

-

-

Business Dissolved ( % )

1.9

1.3

(10.9)

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

-

-

 

 

 

 

 

 

Credit Cards Spending ( % )

15.6

12.6

-

-

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-

 

 

 

 

 

 

 

 

INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

 

 

 

 

 

 

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

 

 

 

 

 

 

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

 

 

 

 

 

 

Manufacturing #

4.7

4.8

3.4

6.6

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

-

-

Plastic Products

3.8

-

-

-

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

 

 

 

 

 

 

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

 

 

 

 

 

 

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

 

27320 : Manufacture of other electronic and electric wires and cables

 

Industry: Manufacturing

 

The manufacturing sector is expected to grow by 5.5% in 2015. It will be bolstered by strong domestic and export-oriented industries in line with growing investment activities and favorable external demand. Moreover, in 2014, the manufacturing sectors have spearheading growth. The manufacturing sector is estimated to grow at a faster pace in 2014 on higher exports of electronics and electrical (E&E) products as external demand improves.

 

The manufacturing sector expanded strongly during the first half of 2014, the highest growth in three years, spurred by higher global semiconductor sales. Value-added of the manufacturing sector expanded 7.1% during the first half of 2014. Production of the sector rose 6.6% in the first seven months of 2014 supported by resilient domestic demand and recovery in the external sector during the first seven months of the years. The sales value of manufactured products rebounded by 7.7% in the first seven months of 2014. The strong performance of the sector was on account of higher output at 9.4% from the domestic-oriented industries, particularly transport equipment, food and beverage

 

The manufacturing sector continued to attract domestic and foreign investment with investment approved by Malaysian Investment Development Authority (MIDA) totaling RM47.4 billion during the first six months of 2014, mainly from Japan, China and Germany. Meanwhile, the capacity utilization rate remained steady at 80.4% during the second quarter of 2014 while average wage per employee and productivity improved to RM2,772 per month and 5.9%, respectively during the first seven months of 2014. Boosted by favorable domestic economic activity and recovery in the external sector, the manufacturing sector is expected to record a better performance with growth of 6.4% in 2014.

 

In the meantime, production of wood products rebounded by 5.1% largely supported by higher output in the saw-milling and planning of wood segment at 25.9% during the first seven months of 2014. The positive performance was attributed to vibrant residential and commercial construction activities which contributed to increased use of timber frame and glued laminated timber for cost savings compared to the use of concrete and steel. Increased demand from major export destination such as the US, Japan and Australia for Malaysian made furniture contributed to the higher output, particularly wooden and cane furniture which rebounded by 2.2%.

 

Production of rubber products contracted 0.3% in the first seven months of 2014 on account of slower demand for rubber gloves and rubber tyres. The decline in rubber tyres for vehicles was due to the weaker external demand from the automotive industry, particularly from China. Output of other rubber products contracted 3.8% following the product shift from rubber-based to plastics, silicones and metal alloys in the manufacture of medical devices.

 

Besides, exports of manufactured products are expected to grow 6.1% in 2014 boosted by the growing demand from advanced economies. However, during the first seven months of 2014, manufactured exports surged 11.4%. The robust growth was buoyed by strengthening demand in the US and EU, reflecting significant exposure of Malaysian exports to the economic performance in the advance economies. The strength in export was broad-based with robust growth in both E&E and non- E&E subsectors.

 

Under budget 2015, the Government will provide incentive in the form of capital allowance on automation expenditure to encourage automation in the manufacturing sector, which may help in the manufacturing sector.

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

 

CREDIT RISK EVALUATION & RECOMMENDATION


Incorporated in 1990, the Subject is a Private Limited company, focusing on produce & trade in magnet wires. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. The Subject is a large entity with strong capital position of MYR 48,000,000. We are confident with the Subject's business and its future growth prospect. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. 


Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. Being a large entity, the Subject has a steady workforce of 800 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. 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. 


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 234,503,414, 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. 


In view of the above favourable condition, we recommend credit be proceeded to the Subject with favourable term.

 

 

PROFIT AND LOSS ACCOUNT

 

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

ELEKTRISOLA (MALAYSIA) 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

GROUP

GROUP

GROUP

GROUP

GROUP

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

340,660,444

332,424,211

387,382,669

418,668,938

258,542,648

Other Income

11,734,996

6,326,995

9,585,689

14,250,713

-

 

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

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

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

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

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

Total Turnover

352,395,440

338,751,206

396,968,358

432,919,651

258,542,648

Costs of Goods Sold

(290,694,570)

(299,034,191)

(356,398,414)

(384,760,401)

-

 

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

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

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

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

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

Gross Profit

61,700,870

39,717,015

40,569,944

48,159,250

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

36,197,948

14,112,566

10,481,308

21,754,758

(2,479,775)

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

36,197,948

14,112,566

10,481,308

21,754,758

(2,479,775)

Taxation

(61,294)

(157,320)

(56,028)

2,933,244

(58,763)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

36,136,654

13,955,246

10,425,280

24,688,002

(2,538,538)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

150,671,049

136,715,803

126,290,523

101,602,521

104,141,059

 

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

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

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

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

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

As restated

150,671,049

136,715,803

126,290,523

101,602,521

104,141,059

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

186,807,703

150,671,049

136,715,803

126,290,523

101,602,521

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

186,807,703

150,671,049

136,715,803

126,290,523

101,602,521

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

-

-

272,005

458,630

98,491

Term loan / Borrowing

2,762

76,553

565,656

520,718

955,229

Others

649,232

935,124

1,153,133

1,231,529

2,335,100

 

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

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

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

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

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

 

651,994

1,011,677

1,990,794

2,210,877

3,388,820

 

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

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

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

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

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

 

 

BALANCE SHEET

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

107,646,601

120,039,133

144,510,882

168,609,585

185,157,265

 

 

 

 

 

 

Loans & advances - non-current

4,959,131

5,163,998

-

-

5,867,044

Deferred assets

3,255,600

3,251,367

3,383,513

3,382,661

453,878

Others

-

-

5,372,415

5,313,743

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

8,214,731

8,415,365

8,755,928

8,696,404

6,320,922

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

115,861,332

128,454,498

153,266,810

177,305,989

191,478,187

 

 

 

 

 

 

Stocks

83,762,096

83,305,339

85,067,770

89,723,308

91,007,138

Trade debtors

52,398,494

52,377,371

44,974,166

56,930,965

50,307,581

Other debtors, deposits & prepayments

1,185,545

877,808

912,710

1,060,296

1,228,695

Amount due from related companies

45,940,628

16,509,521

25,739,075

16,879,078

12,231,322

Cash & bank balances

29,613,710

22,328,874

11,119,811

18,101,747

6,668,346

Others

137,212

441,168

229,869

85,202

53,823

 

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

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

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

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

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

TOTAL CURRENT ASSETS

213,037,685

175,840,081

168,043,401

182,780,596

161,496,905

 

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

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

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

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

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

TOTAL ASSET

328,899,017

304,294,579

321,310,211

360,086,585

352,975,092

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

15,340,068

14,712,087

7,336,581

15,078,197

15,072,247

Other creditors & accruals

8,292,876

7,977,786

6,227,934

11,757,781

8,054,693

Short term borrowings/Term loans

-

-

5,824,420

1,862,595

1,792,656

Other borrowings

-

-

6,911,000

17,251,775

14,253,918

Amounts owing to related companies

31,142,536

29,916,722

74,381,001

2,867,049

10,986,756

Provision for taxation

100,995

474,194

244,545

86,330

97,042

Other liabilities

-

-

-

31,986,344

42,290,343

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

54,876,475

53,080,789

100,925,481

80,890,071

92,547,655

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

158,161,210

122,759,292

67,117,920

101,890,525

68,949,250

 

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

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

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

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

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

TOTAL NET ASSETS

274,022,542

251,213,790

220,384,730

279,196,514

260,427,437

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

48,000,000

48,000,000

48,000,000

48,000,000

48,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

48,000,000

48,000,000

48,000,000

48,000,000

48,000,000

 

 

 

 

 

 

Exchange equalisation/fluctuation reserve

(304,289)

(286,058)

-

-

-

Retained profit/(loss) carried forward

186,807,703

150,671,049

136,715,803

126,290,523

101,602,521

Others

-

-

(262,073)

(227,497)

(148,178)

 

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

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

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

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

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

TOTAL RESERVES

186,503,414

150,384,991

136,453,730

126,063,026

101,454,343

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

234,503,414

198,384,991

184,453,730

174,063,026

149,454,343

 

 

 

 

 

 

Long term loans

-

-

-

23,923,998

30,574,744

Retirement benefits provision

18,128

18,749

-

-

-

Others

39,501,000

52,810,050

35,931,000

81,209,490

80,398,350

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

39,519,128

52,828,799

35,931,000

105,133,488

110,973,094

 

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

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

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

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

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

 

274,022,542

251,213,790

220,384,730

279,196,514

260,427,437

 

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

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

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

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

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

 

 

FINANCIAL RATIO

 

TYPES OF FUNDS

 

 

 

 

 

Cash

29,613,710

22,328,874

11,119,811

18,101,747

6,668,346

Net Liquid Funds

29,613,710

22,328,874

11,119,811

18,101,747

6,668,346

Net Liquid Assets

74,399,114

39,453,953

(17,949,850)

12,167,217

(22,057,888)

Net Current Assets/(Liabilities)

158,161,210

122,759,292

67,117,920

101,890,525

68,949,250

Net Tangible Assets

274,022,542

251,213,790

220,384,730

279,196,514

260,427,437

Net Monetary Assets

34,879,986

(13,374,846)

(53,880,850)

(92,966,271)

(133,030,982)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

12,735,420

43,038,368

46,621,318

Total Liabilities

94,395,603

105,909,588

136,856,481

186,023,559

203,520,749

Total Assets

328,899,017

304,294,579

321,310,211

360,086,585

352,975,092

Net Assets

274,022,542

251,213,790

220,384,730

279,196,514

260,427,437

Net Assets Backing

234,503,414

198,384,991

184,453,730

174,063,026

149,454,343

Shareholders' Funds

234,503,414

198,384,991

184,453,730

174,063,026

149,454,343

Total Share Capital

48,000,000

48,000,000

48,000,000

48,000,000

48,000,000

Total Reserves

186,503,414

150,384,991

136,453,730

126,063,026

101,454,343

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.54

0.42

0.11

0.22

0.07

Liquid Ratio

2.36

1.74

0.82

1.15

0.76

Current Ratio

3.88

3.31

1.67

2.26

1.75

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

90

91

80

78

128

Debtors Ratio

56

58

42

50

71

Creditors Ratio

19

18

8

14

21

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.07

0.25

0.31

Liabilities Ratio

0.40

0.53

0.74

1.07

1.36

Times Interest Earned Ratio

56.52

14.95

6.26

10.84

0.27

Assets Backing Ratio

5.71

5.23

4.59

5.82

5.43

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

10.63

4.25

2.71

5.20

(0.96)

Net Profit Margin

10.61

4.20

2.69

5.90

(0.98)

Return On Net Assets

13.45

6.02

5.66

8.58

0.35

Return On Capital Employed

13.45

6.02

5.66

8.58

0.35

Return On Shareholders' Funds/Equity

15.41

7.03

5.65

14.18

(1.70)

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.62.65

UK Pound

1

Rs.98.53

Euro

1

Rs.78.15

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 

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.