MIRA INFORM REPORT

 

 

Report Date :

29.12.2014

 

IDENTIFICATION DETAILS

 

Name :

SB TAPE INTERNATIONAL SDN. BHD.

 

 

Formerly Known As :

GOLDFOX INDUSTRIES SDN. BHD.

 

 

Registered Office :

Suite 9 Directbiz Avenue, 38b-2 Jalan Radin Anum, Bandar Baru Seri Petaling, 57500 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

10.07.1996

 

 

Com. Reg. No.:

393568-K

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

·         engaged in the Manufacturing and Supplying all kinds of Adhesive, Pressure Sensitive Tape and Non-Adhesive Tape for Household, Commercial and Industrial Uses. 

 

Engaged in Producing Glue and Adhesive Products for a wide range of Adhesive Tapes from Bandoliering Tapes, Masking Tapes, Packaging Tapes, Carrier Tapes, Double Coated Tapes and Foil & Aluminum Tapes

 

Subject's products are used for all kinds of industries which including Electrical and Electronic, Packaging, Furniture, Hardware & Textiles

 

 

No of Employees :

30 [2014]

 

 

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 – 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 strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 35% of government revenue in 2011. Bank Negera Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

393568-K

COMPANY NAME

:

SB TAPE INTERNATIONAL SDN. BHD.

FORMER NAME

:

GOLDFOX INDUSTRIES SDN. BHD. (28/12/2012)

INCORPORATION DATE

:

10/07/1996

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE 9 DIRECTBIZ AVENUE, 38B-2 JALAN RADIN ANUM, BANDAR BARU SERI PETALING, 57500 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 1812, JALAN KPB 1, KAWASAN PERINDUSTRIAN KAMPUNG BARU BALAKONG, 43300 BALAKONG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-89613612/86463600

FAX.NO.

:

03-89614902

WEB SITE

:

WWW.GOLDFOX.COM.MY

CONTACT PERSON

:

TOH CHEE HUI ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

17093

PRINCIPAL ACTIVITY

:

MANUFACTURE AND SUPPLY OF ALL KINDS OF ADHESIVE, PRESSURE SENSITIVE TAPE AND NON-ADHESIVE TAPE FOR HOUSEHOLD, COMMERCIAL AND INDUSTRIAL USES

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 600,000.00 DIVIDED INTO 
ORDINARY SHARES 600,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 130,471,650 [2013]

NET WORTH

:

MYR 16,617,586 [2013]

 

 

 

STAFF STRENGTH

:

30 [2014]

BANKER (S)

:

OCBC BANK (MALAYSIA) BHD
HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

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) manufacture and supply of all kinds of adhesive, pressure sensitive tape and non-adhesive tape for household, commercial and industrial uses.

 

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

21/12/2012

MYR 1,000,000.00

MYR 600,000.00

08/10/2001

MYR 500,000.00

MYR 300,000.00

19/12/1996

MYR 100,000.00

MYR 15,002.00

15/08/1996

MYR 100,000.00

MYR 5,002.00

10/07/1996

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

(%)

MR. TOH CHEE HUI +

20, JALAN PAKIS 1, TAMAN FERN GROVE CHERAS, 43200 BALAKONG, SELANGOR, MALAYSIA.

730220-01-6229

276,000.00

46.00

MS. TOH MEI MEI +

20, JALAN PAKIS SATU, TAMAN FERN GROVE, BATU 9, 43200 BALAKONG, SELANGOR, MALAYSIA.

751028-01-5990 A3150885

252,000.00

42.00

MR. TOH YEE SING +

20, JALAN PAKIS 1, TAMAN FERN GROVE CHERAS, BATU 9, 43200 BALAKONG, SELANGOR, MALAYSIA.

770707-01-5603 A3740715

72,000.00

12.00

 

 

 

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

------

 

 

 

600,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. TOH YEE SING

Address

:

20, JALAN PAKIS 1, TAMAN FERN GROVE CHERAS, BATU 9, 43200 BALAKONG, SELANGOR, MALAYSIA.

IC / PP No

:

A3740715

New IC No

:

770707-01-5603

Date of Birth

:

07/07/1977

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/03/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. TOH MEI MEI

Address

:

20, JALAN PAKIS SATU, TAMAN FERN GROVE, BATU 9, 43200 BALAKONG, SELANGOR, MALAYSIA.

IC / PP No

:

A3150885

New IC No

:

751028-01-5990

Date of Birth

:

28/10/1975

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/11/1999

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. TOH CHEE HUI

Address

:

20, JALAN PAKIS 1, TAMAN FERN GROVE CHERAS, 43200 BALAKONG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

730220-01-6229

Date of Birth

:

20/02/1973

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

08/10/2007

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

TOH CHEE HUI

 

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

LT LIM & ASSOCIATES

Auditor' Address

:

SUITE 2, DIRECTBIZ AVENUE, 38B-2, JALAN RADIN ANUM, BANDAR BARU SERI PETALING, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. FONG KIN HONG

 

IC / PP No

:

A2632509

 

New IC No

:

730920-08-5591

 

Address

:

4C-00-05 BLOCK C, SARAKA APARTMENT, JALAN WAWASAN 4/12, PUSAT BANDAR PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

03/11/2004

N/A

OCBC BANK MALAYSIA BERHAD

MYR 2,950,000.00

Satisfied

2

08/07/2005

N/A

OCBC BANK (MALAYSIA) BHD

MYR 1,000,000.00

Satisfied

3

01/08/2011

TRADE FINANCING GENERAL AGREEMENT

HSBC AMANAH MALAYSIA BERHAD

-

Unsatisfied

4

15/09/2011

TRADE FINANCING GENERAL AGREEMENT

HSBC BANK MALAYSIA BERHAD

-

Unsatisfied

5

10/06/2013

DEBENTURE

HSBC AMANAH MALAYSIA BERHAD

-

Unsatisfied

6

10/06/2013

DEBENTURE

HSBC AMANAH MALAYSIA BERHAD

-

Unsatisfied

7

10/06/2013

DEBENTURE

HSBC AMANAH 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

Overseas

:

YES

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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

90%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

10%

Export Market

:

SINGAPORE

THAILAND

INDONESIA

INDIA

VIETNAM

CHINA

PHILIPPINES

UNITED STATES

UNITED KINGDOM

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

Type of Customer

:

AGENTS,DISTRIBUTORS,DEALERS,PACKAGING INDUSTRIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

ADHESIVE, PRESSURE SENSITIVE TAPE AND NON-ADHESIVE TAPE

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

30

30

35

30

30

 

 

 

 

 

Branch

:

NO

 

 

Other Information:

The Subject is principally engaged in the (as a / as an) manufacture and supply of all kinds of adhesive, pressure sensitive tape and non-adhesive tape for household, commercial and industrial uses. 

The Subject produces the glue and adhesive products for a wide range of adhesive tapes from bandoliering tapes, masking tapes, packaging tapes, carrier tapes, double coated tapes and foil & aluminum tapes.

The Subject's products are used for all kinds of industries which including electrical and electronic, packaging, furniture, hardware & textiles.

The Subject's plant is equipped with both automated and semi-automated machineries. 


RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA) database, but no latest development was noted in our investigation.


CURRENT INVESTIGATION


Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-89613612/86463600

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 1812, JALAN KPB 1, KAWASAN PERINDUSTRIAN KAMPUNG BARU BALAKONG,43300,BALAKONG,SELANGOR.

Current Address

:

LOT 1812, JALAN KPB 1, KAWASAN PERINDUSTRIAN KAMPUNG BARU BALAKONG, 43300 BALAKONG, SELANGOR, 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

[

25.68%

]

 

Return on Net Assets

:

Acceptable

[

18.82%

]

 

 

 

 

 

 

 

 

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

:

Favourable

[

18 Days

]

 

Debtor Ratio

:

Favourable

[

0 Days

]

 

Creditors Ratio

:

Favourable

[

6 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

:

Unfavourable

[

0.53 Times

]

 

Current Ratio

:

Unfavourable

[

1.04 Times

]

 

 

 

 

 

 

 

 

A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

4.89 Times

]

 

Gearing Ratio

:

Unfavourable

[

1.48 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 highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Overall financial condition of the Subject : FAIR

 

 

 

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 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

17093 : Manufacture of gummed or adhesive paper in strips or rolls and labels and wall paper

 

 

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 1996, the Subject is a Private Limited company, focusing on manufacture and supply of all kinds of adhesive, pressure sensitive tape and non-adhesive tape for household, commercial and industrial uses. 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. Presently, the issued and paid up capital of the Subject stands at MYR 600,000. We considered that the Subject's business position in the market is much dependent on the efforts of its directors. 

Apart from supplying its products to the local market, the Subject also exports to overseas countries. Its ability to penetrate into the global market has benefited the Subject in terms of higher profitability and well diversified its business risk. Hence, better growth prospect can be expected. Being a small company, the Subject's business operation is supported by 30 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at a favourable range which indicated that the management was efficient in utilising its funds to generate income. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at MYR 16,617,586, 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. 

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 normally.

 



PROFIT AND LOSS ACCOUNT

 

 

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

SB TAPE INTERNATIONAL SDN. BHD.

 

Financial Year End

2013-06-30

2012-06-30

2011-06-30

2010-06-30

2009-06-30

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

130,471,650

68,516,725

87,955,466

65,939,980

50,836,672

 

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

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

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

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

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

Total Turnover

130,471,650

68,516,725

87,955,466

65,939,980

50,836,672

Costs of Goods Sold

(123,301,098)

(65,837,094)

(83,827,046)

(64,463,508)

-

 

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

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

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

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

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

Gross Profit

7,170,552

2,679,631

4,128,420

1,476,472

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

5,565,854

3,354,423

3,970,164

1,885,373

1,789,176

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

5,565,854

3,354,423

3,970,164

1,885,373

1,789,176

Taxation

(1,297,847)

(677,343)

(354,926)

(503,637)

(124,676)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

4,268,007

2,677,080

3,615,238

1,381,736

1,664,500

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

11,949,579

10,272,499

6,657,261

6,775,525

5,111,025

 

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

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

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

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

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

As restated

11,949,579

10,272,499

6,657,261

6,775,525

5,111,025

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

16,217,586

12,949,579

10,272,499

8,157,261

6,775,525

DIVIDENDS - Ordinary (paid & proposed)

(200,000)

(1,000,000)

-

(1,500,000)

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

16,017,586

11,949,579

10,272,499

6,657,261

6,775,525

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bankers' acceptance

143,801

1,383

-

-

-

Hire purchase

1,128,163

211,835

-

-

-

Term loan / Borrowing

46,415

-

-

-

-

Others

111,771

277,769

36,712

2,298

12,729

 

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

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

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

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

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

 

1,430,150

490,987

36,712

2,298

12,729

 

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

SB TAPE INTERNATIONAL SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

36,634,882

32,969,899

3,860,884

3,568,877

1,444,979

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

36,634,882

32,969,899

3,860,884

3,568,877

1,444,979

 

 

 

 

 

 

Stocks

6,296,581

6,059,157

7,012,335

3,912,504

2,170,242

Trade debtors

-

-

960,963

5,186,823

13,763,933

Other debtors, deposits & prepayments

4,876,283

5,202,872

4,072,799

849,056

864,744

Short term deposits

-

140,800

989,003

-

-

Cash & bank balances

1,674,387

393,878

147,739

885,780

1,400,364

Others

-

25,603

-

88,002

1,771

 

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

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

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

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

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

TOTAL CURRENT ASSETS

12,847,251

11,822,310

13,182,839

10,922,165

18,201,054

 

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

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

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

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

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

TOTAL ASSET

49,482,133

44,792,209

17,043,723

14,491,042

19,646,033

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

2,192,094

2,241,224

4,579,269

2,369,651

9,385,417

Other creditors & accruals

4,137,984

3,979,040

813,178

4,243,087

2,658,332

Hire purchase & lease creditors

3,292,501

2,839,551

-

-

-

Short term borrowings/Term loans

285,714

-

-

-

-

Other borrowings

1,217,587

1,593,829

-

-

-

Bill & acceptances payable

858,000

-

-

-

-

Amounts owing to director

38,000

38,000

38,000

38,000

76,000

Provision for taxation

284,970

-

410,876

-

49,659

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

12,306,850

10,691,644

5,841,323

6,650,738

12,169,408

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

540,401

1,130,666

7,341,516

4,271,427

6,031,646

 

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

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

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

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

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

TOTAL NET ASSETS

37,175,283

34,100,565

11,202,400

7,840,304

7,476,625

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

600,000

600,000

600,000

600,000

600,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

600,000

600,000

600,000

600,000

600,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

16,017,586

11,949,579

10,272,499

6,657,261

6,775,525

 

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

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

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

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

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

TOTAL RESERVES

16,017,586

11,949,579

10,272,499

6,657,261

6,775,525

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

16,617,586

12,549,579

10,872,499

7,257,261

7,375,525

 

 

 

 

 

 

Long term loans

1,571,429

-

-

-

-

Hire purchase creditors

17,313,543

20,666,284

-

-

-

Deferred taxation

1,672,725

884,702

329,901

583,043

101,100

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

20,557,697

21,550,986

329,901

583,043

101,100

 

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

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

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

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

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

 

37,175,283

34,100,565

11,202,400

7,840,304

7,476,625

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

SB TAPE INTERNATIONAL SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

1,674,387

534,678

1,136,742

885,780

1,400,364

Net Liquid Funds

816,387

534,678

1,136,742

885,780

1,400,364

Net Liquid Assets

(5,756,180)

(4,928,491)

329,181

358,923

3,861,404

Net Current Assets/(Liabilities)

540,401

1,130,666

7,341,516

4,271,427

6,031,646

Net Tangible Assets

37,175,283

34,100,565

11,202,400

7,840,304

7,476,625

Net Monetary Assets

(26,313,877)

(26,479,477)

(720)

(224,120)

3,760,304

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

24,538,774

25,099,664

0

0

0

Total Liabilities

32,864,547

32,242,630

6,171,224

7,233,781

12,270,508

Total Assets

49,482,133

44,792,209

17,043,723

14,491,042

19,646,033

Net Assets

37,175,283

34,100,565

11,202,400

7,840,304

7,476,625

Net Assets Backing

16,617,586

12,549,579

10,872,499

7,257,261

7,375,525

Shareholders' Funds

16,617,586

12,549,579

10,872,499

7,257,261

7,375,525

Total Share Capital

600,000

600,000

600,000

600,000

600,000

Total Reserves

16,017,586

11,949,579

10,272,499

6,657,261

6,775,525

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.14

0.05

0.19

0.13

0.12

Liquid Ratio

0.53

0.54

1.06

1.05

1.32

Current Ratio

1.04

1.11

2.26

1.64

1.50

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

18

32

29

22

16

Debtors Ratio

0

0

4

29

99

Creditors Ratio

6

12

20

13

67

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

1.48

2.00

0.00

0.00

0.00

Liabilities Ratio

1.98

2.57

0.57

1.00

1.66

Times Interest Earned Ratio

4.89

7.83

109.14

821.44

141.56

Assets Backing Ratio

61.96

56.83

18.67

13.07

12.46

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

4.27

4.90

4.51

2.86

3.52

Net Profit Margin

3.27

3.91

4.11

2.10

3.27

Return On Net Assets

18.82

11.28

35.77

24.08

24.10

Return On Capital Employed

17.29

10.41

35.77

24.08

24.10

Return On Shareholders' Funds/Equity

25.68

21.33

33.25

19.04

22.57

Dividend Pay Out Ratio (Times)

0.05

0.37

0.00

1.09

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.64

UK Pound

1

Rs.98.98

Euro

1

Rs.77.74

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

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.