MIRA INFORM REPORT

 

 

Report Date :

30.12.2014

 

IDENTIFICATION DETAILS

 

Name :

SL SHIPBUILDING CONTRACTOR SDN. BHD.

 

 

Registered Office :

8, Lane 1, Lanang Road, 1st Floor, 96000 Sibu, Sarawak

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

19.05.2003

 

 

Com. Reg. No.:

615566-M

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

·         Engaged as a Shipbuilding

·         Subject offers a wide range of between 20-metre to 60-metre Ocean-Going Vessels such as Tugboats, Anchor Handling Tugs, Offshore Utility & Supply Vessels. 

 

 

No of Employees :

100 [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 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.

:

615566-M

COMPANY NAME

:

SL SHIPBUILDING CONTRACTOR SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

19/05/2003

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

8, LANE 1, LANANG ROAD, 1ST FLOOR, 96000 SIBU, SARAWAK, MALAYSIA.

BUSINESS ADDRESS

:

LOT 530-531, RANTAU PANJANG SHIPBUILDING INDUSTRIAL ESTATE, 96000 SIBU, SARAWAK, MALAYSIA.

TEL.NO.

:

084-217722

FAX.NO.

:

084-217733

WEB SITE

:

WWW.SPLIGHT.COM.MY

CONTACT PERSON

:

ALBERT TANG KING HO ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

30110

PRINCIPAL ACTIVITY

:

·         Engaged as a Shipbuilding

·         Subject offers a wide range of between 20-metre to 60-metre Ocean-Going Vessels such as Tugboats, Anchor Handling Tugs, Offshore Utility & Supply Vessels. 

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARES 320,000 CASH AND 180,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 15,552,268 [2013]

NET WORTH

:

MYR 6,469,931 [2013]

 

 

 

STAFF STRENGTH

:

100 [2014]

BANKER (S)

:

CIMB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

No Complaints 

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) shipbuilding.

 

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 500,000.00

MYR 500,000.00

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. DAVID TANG KING CHU +

18-B,APONG ROAD, 96000 SIBU, SARAWAK, MALAYSIA.

711016-13-5577 K0258025

125,000.00

25.00

MR. JEFFREY TANG KING HIENG +

20B, APONG ROAD, 96000 SIBU, SARAWAK, MALAYSIA.

780517-13-5523

125,000.00

25.00

MR. STEVEN TANG KING BING +

20B, JALAN APONG, 96000 SIBU, SARAWAK, MALAYSIA.

730124-13-5447 K0339236

125,000.00

25.00

MR. ALBERT TANG KING HO +

20B, APONG ROAD, 96000 SIBU, SARAWAK, MALAYSIA.

750128-13-5143 K0375108

125,000.00

25.00

 

 

 

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

------

 

 

 

500,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. TANG TIEW HEE

Address

:

18B, APONG ROAD, 96000 SIBU, SARAWAK, MALAYSIA.

IC / PP No

:

K133954

New IC No

:

450811-13-5469

Date of Birth

:

11/08/1945

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

05/08/2003

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. STEVEN TANG KING BING

Address

:

20B, JALAN APONG, 96000 SIBU, SARAWAK, MALAYSIA.

IC / PP No

:

K0339236

New IC No

:

730124-13-5447

Date of Birth

:

24/01/1973

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

19/05/2003

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. JEFFREY TANG KING HIENG

Address

:

20B, APONG ROAD, 96000 SIBU, SARAWAK, MALAYSIA.

 

 

 

New IC No

:

780517-13-5523

Date of Birth

:

17/05/1978

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

21/04/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. DAVID TANG KING CHU

Address

:

18-B,APONG ROAD, 96000 SIBU, SARAWAK, MALAYSIA.

IC / PP No

:

K0258025

New IC No

:

711016-13-5577

Date of Birth

:

16/10/1971

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

19/05/2003

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. ALBERT TANG KING HO

Address

:

20B, APONG ROAD, 96000 SIBU, SARAWAK, MALAYSIA.

IC / PP No

:

K0375108

New IC No

:

750128-13-5143

Date of Birth

:

28/01/1975

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

21/04/2008

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

ALBERT TANG KING HO

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

DAVID TANG KING CHU

 

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

PUANG LIONG KIAK & CO.

Auditor' Address

:

41, MISSION ROAD, C.D.T.134, TINGKAT 2, 96000 SIBU, SARAWAK, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. TANG TIEW HEE

 

IC / PP No

:

K133954

 

New IC No

:

450811-13-5469

 

Address

:

18B, APONG ROAD, 96000 SIBU, SARAWAK, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

27/04/2004

N/A

EON BANK BERHAD

MYR 800,000.00

Satisfied

2

26/03/2005

N/A

EON BANK BERHAD

MYR 1,300,000.00

Satisfied

3

18/03/2009

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 2,680,000.00

Unsatisfied

4

16/06/2010

N/A

EON BANK BHD

MYR 1,100,000.00

Unsatisfied

5

04/01/2013

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

-

Unsatisfied

6

04/01/2013

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

-

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

:

SINGAPORE,ASIA



CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

SINGAPORE

INDONESIA

MYANMAR

THAILAND

PHILIPPINES

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

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

Type of Customer

:

GOVERNMENT SECTORS,PRIVATE SECTORS

 

 

 

 

 

 

 

 

 

 

 

 



OPERATIONS

 

Services

:

SHIPBUILDING

 

 

 

 

 

Total Number of Employees:

YEAR

2014

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

100

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:

The Subject is principally engaged in the (as a / as an) shipbuilding. 

The Subject's shipyard occupies a land area of 5 acres with a shoreline of 100 metres.

Besides that its shipyard is constantly adopting new technologies, procedures, modern equipment and machinery to achieve highest possible quality, workmanship and ensure timely delivery of products to its clients.

Subject offers a wide range of between 20-metre to 60-metre ocean-going vessels such as Tugboats, Anchor Handling Tugs, Offshore Utility & Supply Vessels.  All vessels built are under strict quality control and coincide with the standards of the major international classifications including ABS, BV, NKK, GL, Lloyds, and CCS, as well as under the U.S.L. Code.


The Subject builds Ocean Going Vessels mostly tugboats ranging in sizes from 12m to 30m, with varying operational and performance capabilities, to meet the requirements of customers.

 

All the Subject's vessels are subjected to strict inspection and quality procedures control during construction. 

Vessels are designed, built and outfitted to meet the criteria of all the major international classification societies including ABS, BV, NKK, Lloyds, DNV, CCS as well as under the U.S.L. Code.




CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

084217722?

Current Telephone Number

:

084-217722

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 530-531, RANTAU PANJANG SHIPBUILDING INDUSTRIAL ESTATE,96000,SIBU,SARAWAK.

Current Address

:

LOT 530-531, RANTAU PANJANG SHIPBUILDING INDUSTRIAL ESTATE, 96000 SIBU, SARAWAK, 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

[

11.77%

]

 

Return on Net Assets

:

Acceptable

[

14.52%

]

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Favourable

[

1.55 Times

]

 

 

 

 

 

 

 

 

The Subject was in good liquidity position with its current  liabilities  well covered by its current assets. With its net current assets, the Subject should be able to repay its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

1.14 Times

]

 

 

 

 

 

 

 

 

The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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. The Subject's liabilities 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 : STABLE

 

 

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

30110 : Building of ships and floating structures

 

 

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 2003, the Subject is a Private Limited company, focusing on shipbuilding. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Presently, the issued and paid up capital of the Subject stands at MYR 500,000. We considered that the Subject's business position in the market is much dependent on the efforts of its directors. 

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. Being a moderate size company, the Subject has a total workforce of 100 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. The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 6,469,931, 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. 

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)

SL SHIPBUILDING CONTRACTOR 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

SUMMARY

SUMMARY

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

15,552,268

15,514,035

24,265,557

15,910,000

18,320,000

 

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

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

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

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

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

Total Turnover

15,552,268

15,514,035

24,265,557

15,910,000

18,320,000

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

987,627

688,006

1,377,301

1,232,610

-

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

987,627

688,006

1,377,301

1,232,610

-

Taxation

(226,000)

-

0

(278,183)

1,170,133

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

761,627

688,006

1,377,301

954,427

1,170,133

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

5,208,304

4,520,298

3,142,997

2,188,570

1,018,437

 

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

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

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

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

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

As restated

5,208,304

4,520,298

3,142,997

2,188,570

1,018,437

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,969,931

5,208,304

4,520,298

3,142,997

2,188,570

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

5,969,931

5,208,304

4,520,298

3,142,997

2,188,570

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

SL SHIPBUILDING CONTRACTOR SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

2,880,173

2,594,156

2,297,483

2,367,597

2,455,679

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

2,880,173

2,594,156

2,297,483

2,367,597

2,455,679

 

 

 

 

 

 

TOTAL CURRENT ASSETS

10,982,506

9,099,400

9,005,080

22,498,103

10,957,977

 

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

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

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

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

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

TOTAL ASSET

13,862,679

11,693,556

11,302,563

24,865,700

13,413,656

 

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

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

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

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

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

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

7,062,735

5,872,249

6,176,043

21,163,015

10,591,863

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

3,919,771

3,227,151

2,829,037

1,335,088

366,114

 

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

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

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

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

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

TOTAL NET ASSETS

6,799,944

5,821,307

5,126,520

3,702,685

2,821,793

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

500,000

500,000

500,000

500,000

500,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

500,000

500,000

500,000

500,000

500,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

5,969,931

5,208,304

4,520,298

3,142,997

2,188,570

 

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

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

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

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

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

TOTAL RESERVES

5,969,931

5,208,304

4,520,298

3,142,997

2,188,570

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

6,469,931

5,708,304

5,020,298

3,642,997

2,688,570

 

 

 

 

 

 

TOTAL LONG TERM LIABILITIES

330,013

113,003

106,222

59,688

133,223

 

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

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

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

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

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

 

6,799,944

5,821,307

5,126,520

3,702,685

2,821,793

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

SL SHIPBUILDING CONTRACTOR SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Net Liquid Assets

3,919,771

3,227,151

2,829,037

1,335,088

366,114

Net Current Assets/(Liabilities)

3,919,771

3,227,151

2,829,037

1,335,088

366,114

Net Tangible Assets

6,799,944

5,821,307

5,126,520

3,702,685

2,821,793

Net Monetary Assets

3,589,758

3,114,148

2,722,815

1,275,400

232,891

 

 

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

 

 

Total Liabilities

7,392,748

5,985,252

6,282,265

21,222,703

10,725,086

Total Assets

13,862,679

11,693,556

11,302,563

24,865,700

13,413,656

Net Assets

6,799,944

5,821,307

5,126,520

3,702,685

2,821,793

Net Assets Backing

6,469,931

5,708,304

5,020,298

3,642,997

2,688,570

Shareholders' Funds

6,469,931

5,708,304

5,020,298

3,642,997

2,688,570

Total Share Capital

500,000

500,000

500,000

500,000

500,000

Total Reserves

5,969,931

5,208,304

4,520,298

3,142,997

2,188,570

 

 

 

 

 

 

LIQUIDITY (Times)

 

 

 

 

 

Current Ratio

1.55

1.55

1.46

1.06

1.03

 

 

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

 

 

Liabilities Ratio

1.14

1.05

1.25

5.83

3.99

Assets Backing Ratio

13.60

11.64

10.25

7.41

5.64

 

 

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

6.35

4.43

-

7.75

-

Net Profit Margin

4.90

4.43

5.68

6.00

6.39

Return On Net Assets

14.52

11.82

-

33.29

-

Return On Capital Employed

14.52

11.82

-

33.29

-

Return On Shareholders' Funds/Equity

11.77

12.05

27.43

26.20

43.52

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.65

UK Pound

1

Rs.99.14

Euro

1

Rs.77.60

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.