MIRA INFORM REPORT

 

 

Report Date :

08.01.2014

 

IDENTIFICATION DETAILS

 

Name :

QL MARINE PRODUCTS SDN. BHD.

 

 

Formerly Known As :

QL KARASAKI IKA SDN BHD

 

 

Registered Office :

16A, Jalan Astaka U8/83, Bukit Jelutong, 40150 Shah Alam, Selangor,

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

05.03.1996

 

 

Com. Reg. No.:

378679-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of surimi & surimi based products

 

 

No. of Employees :

500

 

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 interest

Source : CIA


EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

378679-K

COMPANY NAME

:

QL MARINE PRODUCTS SDN. BHD.

FORMER NAME

:

QL KARASAKI IKA SDN BHD (19/09/2002)
WINNING VENTURE SDN BHD (10/03/1999)

INCORPORATION DATE

:

05/03/1996

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

16A, JALAN ASTAKA U8/83, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

KAMPUNG BOLONG, TUARAN, P.O.BOX 502, 89208 TUARAN, , 89208 TUARAN, SABAH, MALAYSIA.

TEL.NO.

:

088-791833

FAX.NO.

:

088-791822

WEB SITE

:

WWW.QLMP.COM.MY

CONTACT PERSON

:

CHIA SONG POU ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

64200 10799

PRINCIPAL ACTIVITY

:

MANUFACTURING OF SURIMI & SURIMI BASED PRODUCTS

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 47,650,960.00 DIVIDED INTO
ORDINARY SHARES 12,500,000 CASH AND 35,150,960 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 80,628,000 [2013]

NET WORTH

:

MYR 79,517,000 [2013]

 

 

 

STAFF STRENGTH

:

500 [2014]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

 

HISTORY / BACKGROUND

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) manufacturing of surimi & surimi based products.

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

 

The immediate holding company of the Subject is QL FISHERY SDN. BHD., a company incorporated in MALAYSIA.

The ultimate holding company of the Subject is QL RESOURCES BERHAD, a company incorporated in MALAYSIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

20/05/2013

MYR 50,000,000.00

MYR 47,650,960.00

15/02/2013

MYR 50,000,000.00

MYR 42,800,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

QL FISHERY SDN. BHD.

16A, JALAN ASTAKA U8/83, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

259833H

47,650,960.00

100.00

 

 

 

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

------

 

 

 

47,650,960.00

100.00

 

 

 

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

947813A

MALAYSIA

ICON BLITZ SDN. BHD.

100.00

01/04/2013

 

 

 

 

 



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. CHEAH JUW TECK

Address

:

1, JALAN TEPI SUNGAI, 36400 HUTAN MELINTANG, PERAK, MALAYSIA.

IC / PP No

:

A1309822

New IC No

:

690401-10-6377

Date of Birth

:

01/04/1969

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

18/02/2000

 

 

 

Qualification

:

DEGREE IN FOOD TECHNOLOGY FROM UPM IN 1993

Profile

:

AS A QUALITY CONTROL EXE IN S & P FOODS BHD SINCE JOINED THE QL GROUP IN 1994 WHICH CURRENTLY AS OPERATIONS MANAGER TO SET UP SURIMI & SURIMI-BASED PRODUCTS BUSS

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHIA SONG KOOI

Address

:

2B, LORONG RAJA UDANG 9, KINGFISHER PARK PH 2, 88400 KOTA KINABALU, SABAH, MALAYSIA.

IC / PP No

:

5886689

New IC No

:

600216-10-5733

Date of Birth

:

16/02/1960

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

27/12/2002

 

 

 

Qualification

:

B. AGRICULTURAL SC. FROM UPM IN 1985

Profile

:

ANCOM BHD AS A MKTG EXE FOR AGRO-CHEMICAL PRODUCTS & HEADED THE PRODUCT & MARKET DEVELOPMENT DIVISION IN 1986 11 YEARS EXPERIENCE FARM MGTE & IN TRADING OF RAW MATERIALS FOR FARM USE SEC GENERAL OF SABAH LIVESTOCK POULTRY ASSOCIATION

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. CHIA SONG POU

Address

:

42, BAGAN SUNGAI BURUNG, 45300 SUNGAI BESAR, SELANGOR, MALAYSIA.

IC / PP No

:

8221823

New IC No

:

560518-10-5815

Date of Birth

:

18/05/1956

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/02/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. CHIA SEONG FATT

Address

:

303, TAMAN LILY, BATU 4, JALAN SIN ON, 91000 TAWAU, SABAH, MALAYSIA.

IC / PP No

:

4863180

New IC No

:

550909-10-6293

Date of Birth

:

09/09/1955

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/06/2004

 

 

 

Qualification

:

B.SC. HONS IN CHEMISTRY FROM UNIVERSITY OF LONDON IN 1979 & M.B.A. FROM UM IN 1984

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. CHIA SONG KANG

Address

:

11, JALAN MERLIMAU, 86900 ENDAU, JOHOR, MALAYSIA.

IC / PP No

:

4069529

New IC No

:

500822-10-5743

Date of Birth

:

22/08/1950

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/12/2004

 

 

 

 

 

 

Profile

:

MORE THAN 20 YEARS EXPERIENCE IN FISHMEAL MANUFACTURING & IN THE FISHING INDUSTRY

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

MR. CHIA SONG KUN

Address

:

17, JALAN KELAB GOLF 13/3, SEKSYEN 13, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

2301518

New IC No

:

491208-10-6007

Date of Birth

:

08/12/1949

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/06/2004

 

 

 

Qualification

:

B.SC (HONOURS) IN MATHEMATICS, UM IN 1972 & M.B.A., UM IN 1988.

Profile

:

TUTOR IN UM IN 1973 & LECTURER AT ITM FOR 11 YEARS UNTIL 1984 INCORPORATE CBG HOLDING SDN BHD IN 1984 TO COMMENCE THE BUSS OF DISTRIBUTING FISHMEAL & OTHER FEED-MEAL RAW MATERIALS

Other Info

:

ACTIVE IN KLANG CHINESE CHAMBER OF COMMERCE & INDUSTRY WHERE HEAD OF THE COMMERCE COMMITTEE SINCE EARLY 1999



MANAGEMENT

 

1)

Name of Subject

:

CHIA SONG POU

 

Position

:

DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

WISMA GEK POH, JALAN HAJI SAMAN, 88000 KOTA KINABALU, SABAH, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. NG GEOK PING

 

IC / PP No

:

A1165996

 

New IC No

:

681230-10-6772

 

Address

:

29, JALAN MERBUK 3, BANDAR PUCHONG JAYA, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. KOON WAI YE

 

IC / PP No

:

A3561425

 

New IC No

:

761026-10-5350

 

Address

:

6, JALAN PUTERO 10/16, BANDAR PUTERI, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


No Banker found in our databank.


 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

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

 

PAYMENT RECORD

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 


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

Domestic Markets

:

SINGAPORE

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

SURIMI & SURIMI BASED PRODUCTS

 

 

 

 

Total Number of Employees:

YEAR

2014

 


GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

500

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of surimi & surimi based products.

The Subject specializes in upstream and downstream processing of surimi, fish fillet and fishmeal.

The Subject is notably the biggest Surimi producer in Asia.

Aside from sea fishing, the Subject also purchases fish products from all the major landing ports in Sabah in order to meet its huge customer demand.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

088-791833

Match

:

N/A

 

 

 

Address Provided by Client

:

KAMPUNG BOLONG P O BOX 502 89208 TUASAN SABAH

Current Address

:

KAMPUNG BOLONG, TUARAN, P.O.BOX 502, 89208 TUARAN, , 89208 TUARAN, SABAH, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

 

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

The address provided is incorrect.


FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Acceptable

[

15.09%

]

 

Return on Net Assets

:

Acceptable

[

13.69%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

70 Days

]

 

Debtor Ratio

:

Favourable

[

18 Days

]

 

Creditors Ratio

:

Favourable

[

6 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

6.06 Times

]

 

Current Ratio

:

Favourable

[

8.80 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

[

99.66 Times

]

 

Gearing Ratio

:

Favourable

[

0.02 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 was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

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 as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the Subject : STRONG

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 

 

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index

 

 

 

 

 

 

 


 

INDUSTRY ANALYSIS

 

MSIC CODE

64200 : Activities of investment holding companies

10799 : Manufacture of other food products n.e.c.

 

 

INDUSTRY :

ECONOMY

 

 

 

The country's gross domestic product (GDP) expanded by 6.4% in the 4th quarter ended Dec 31 2012 on a year-on-year basis driven by sustained domestic demand and high investment growth. For the full year 2012, the GDP growth hit 5.6%, well above the government’s revised forecast of 4.5%-5.0% made in year 2011. Despite the weak and uncertain global economic conditions, there is remarkable optimism that Malaysia's economy could still continue to grow at a relatively healthy pace. The government has, in fact, targeted a gross domestic product (GDP) growth rate of between 4.5% and 5.5% for 2013. This is quite an encouraging growth rate, and an achievable one at that, according to most economists.

 

Additionally, tepid economic growth in advanced economies and the slowdown of emerging economies especially in China and India, point to weakening global economic prospects. The deterioration in the external environment and correction in commodity prices are expected to weigh on Malaysia’s export performance during the second half of 2012. Nevertheless, the vibrant domestic demand is expected to be sustained during the second half of 2012, supported by both public and private sectors amid conducive financial market conditions, stable prices and a favourable labour market. The external sector provided little support with exports showing a slower pace of decrease in 4th quarter of year 2012 to -1.5%, while imports also decreased by -0.9% resulting in an actual increase in the level of net exports compared to 3rd quarter of year 2012, although growth remained negative relative to 4th quarter of year 2012.

 

Domestic demand will be the main driver of the Malaysian economy supported by private and public sector expenditure. Growth in private consumption is expected to be buoyed by stable employment and income coupled with lower inflation. The salary revision and bonus for civil servants, cash assistance under Bantuan Rakyat 1Malaysia (BR1M), reward to the Federal Land Development Authority (FELDA) settlers and other cash payments to assist various groups supported private consumption. Private investment is envisaged to drive economic growth over the medium term, underpinned by the ongoing implementation of the Economic Transformation Programme (ETP) and vibrant construction activity. Growth in private investment will be broad-based in line with positive investors’ confidence and strong domestic demand. Public investment will be largely led by the Non-Financial Public Enterprises’ (NFPEs) capital spending on oil and gas (O&G), telecommunications and transportrelated industries. The Investment expenditure was about evenly divided between structures and machinery & equipment, but the former category showed continued strong growth at 25.0% over the 4th quarter ended Dec 31 2011, while growth in the latter category slowed to 7.6% from 22.3% in 3rd quarter ended Sept 30 2012.

 

Growth was broad based with all major sectors registering increases. The only subsectors that posted declines were the textile manufacturing and forestry and logging activities. The construction sector posted the strongest growth, hitting 15% on the year 2012, not surprising given the spate of major projects and related private sector property investment over the year. Besides, the agriculture sectors had a slightly grew at 0.6% while the manufacturing and mining industries continued growth at 4.2% and 1.5% respectively. The service sector had drop to 5.5%. However, according to the Minister of Finance, the agriculture and construction sectors are projected to expand 2.4% and 11.2% respectively while the manufacturing and the mining industries are forecast to grow 4.9% and 2.7& respectively. Meanwhile, the service sector is expected to grow 5.6%.

 

With domestic demand remaining robust and signs of improvement in the external sector, there are far less grounds for an interest rate cut, unlike in the rest of the region where growth has, with the exception of Thailand, been less than impressive. High capacity utilisation, strong credit growth and the need to rein in household debt are all mitigating factors against an easing of policy. Meanwhile, in maintaining the balance between economic growth and inflationary pressures in Malaysia, it is expected that interest rates in the country will remain stable through 2013. The benchmark overnight policy rate (OPR) currently stands at 3%, which has been supportive of the country's economic growth amid a low inflation environment with consumer price index (CPI) growing at less than 2% in 2012. But with price pressures expected to pick up in year 2014, with CPI expected to increase around 2% to 3%, some economists expect the OPR to likely be raised by 25 basis points to 3.25% in the second half of year 2014.

 

In conclusion, the outlook for the Malaysian economy is going to be challenging, with the ongoing global economic slowdown in view of the debt crisis in Europe and the weakening of the US economy. Besdies, the loss of growth momentum in Malaysia will continue and become serious enough to sidetrack the country from its long-term development goals. Thus, nominal Gross National Income (GNI) per capita is expected to increase 6.4% to RM32,947 in year 2013. In terms of Public-Private Partnership (PPP) Facilitation Fund, per capita income is expected to grow 4.4% to reach USD16,368.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1996, the Subject is a Private Limited company, focusing on manufacturing of surimi & surimi based products. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.

Over the years, the Subject has 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 large entity, the Subject has a steady workforce of 500 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. The Subject has a good management capability. Its capable management team has enabled the Subject to keep its business on going. Hence, the future prospect of the Subject is bright.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 79,517,000, the Subject should be able to maintain its business in the near terms.

The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials.

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 has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. With the Subject’s favourable conditions, it should have acquired competitive edge from its competitors.

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)

QL MARINE PRODUCTS SDN. BHD.

 

Financial Year End

2013-03-31

2012-03-31

2011-03-31

2010-03-31

2009-03-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

80,628,000

77,425,000

87,258,000

48,047,000

48,208,000

 

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

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

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

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

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

Total Turnover

80,628,000

77,425,000

87,258,000

48,047,000

48,208,000

Costs of Goods Sold

(66,986,000)

(65,916,000)

(68,998,000)

(38,191,000)

(33,569,000)

 

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

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

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

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

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

Gross Profit

13,642,000

11,509,000

18,260,000

9,856,000

14,639,000

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

12,333,000

10,094,000

16,367,000

8,545,000

12,625,000

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

12,333,000

10,094,000

16,367,000

8,545,000

12,625,000

Taxation

(337,000)

(2,639,000)

(593,000)

(179,000)

3,000

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

11,996,000

7,455,000

15,774,000

8,366,000

12,628,000

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

22,416,000

29,434,000

18,995,000

17,149,000

14,921,000

Prior year adjustment

-

-

(25,000)

-

-

 

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

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

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

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

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

As restated

22,416,000

29,434,000

18,970,000

17,149,000

14,921,000

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

34,412,000

36,889,000

34,744,000

25,515,000

27,549,000

DIVIDENDS - Ordinary (paid & proposed)

(10,024,000)

(14,473,000)

(5,310,000)

(6,520,000)

(10,400,000)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

24,388,000

22,416,000

29,434,000

18,995,000

17,149,000

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

4,000

5,000

1,000

4,000

41,000

Bankers' acceptance

3,000

-

-

-

-

Hire purchase

-

-

1,000

4,000

8,000

Loan from holding company

-

-

-

-

103,000

Term loan / Borrowing

8,000

120,000

388,000

799,000

1,087,000

Others

110,000

166,000

338,000

226,000

371,000

 

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

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

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

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

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

 

125,000

291,000

728,000

1,033,000

1,610,000

 

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

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

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

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

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

 


 

BALANCE SHEET

 

QL MARINE PRODUCTS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

46,663,000

49,664,000

44,220,000

36,624,000

34,867,000

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Subsidiary companies

1,000

1,000

-

-

-

Others

309,000

1,035,000

9,371,000

13,235,000

14,587,000

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

310,000

1,036,000

9,371,000

13,235,000

14,587,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

46,973,000

50,700,000

53,591,000

49,859,000

49,454,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

15,423,000

10,388,000

8,015,000

10,787,000

6,816,000

Trade debtors

3,965,000

3,934,000

2,190,000

1,723,000

794,000

Other debtors, deposits & prepayments

1,600,000

1,939,000

5,437,000

1,892,000

1,413,000

Short term deposits

10,900,000

1,200,000

4,400,000

-

-

Amount due from holding company

-

-

9,000

9,000

-

Amount due from subsidiary companies

1,000

-

-

-

-

Amount due from related companies

17,341,000

15,633,000

24,618,000

24,055,000

34,261,000

Cash & bank balances

392,000

459,000

973,000

1,800,000

384,000

Others

18,000

33,000

150,000

155,000

117,000

 

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

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

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

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

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

TOTAL CURRENT ASSETS

49,640,000

33,586,000

45,792,000

40,421,000

43,785,000

 

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

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

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

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

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

TOTAL ASSET

96,613,000

84,286,000

99,383,000

90,280,000

93,239,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

1,012,000

884,000

852,000

1,046,000

307,000

Other creditors & accruals

2,408,000

2,365,000

3,042,000

1,463,000

2,248,000

Hire purchase & lease creditors

-

-

-

32,000

61,000

Bank overdraft

662,000

1,649,000

1,148,000

-

-

Short term borrowings/Term loans

-

630,000

2,916,000

6,477,000

7,300,000

Bill & acceptances payable

692,000

-

414,000

-

2,755,000

Amounts owing to holding company

86,000

23,000

-

-

40,000

Amounts owing to related companies

759,000

2,965,000

10,169,000

11,244,000

6,605,000

Other liabilities

24,000

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

5,643,000

8,516,000

18,541,000

20,262,000

19,316,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

43,997,000

25,070,000

27,251,000

20,159,000

24,469,000

 

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

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

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

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

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

TOTAL NET ASSETS

90,970,000

75,770,000

80,842,000

70,018,000

73,923,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

47,651,000

42,800,000

42,800,000

40,000,000

40,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

47,651,000

42,800,000

42,800,000

40,000,000

40,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

7,500,000

7,500,000

7,500,000

7,500,000

7,500,000

General reserve

(22,000)

-

-

-

-

Retained profit/(loss) carried forward

24,388,000

22,416,000

29,434,000

18,995,000

17,149,000

 

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

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

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

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

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

TOTAL RESERVES

31,866,000

29,916,000

36,934,000

26,495,000

24,649,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

79,517,000

72,716,000

79,734,000

66,495,000

64,649,000

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

-

-

625,000

3,523,000

9,242,000

Hire purchase creditors

-

-

-

-

32,000

Deferred taxation

3,253,000

3,054,000

483,000

-

-

Others

8,200,000

-

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

11,453,000

3,054,000

1,108,000

3,523,000

9,274,000

 

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

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

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

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

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

 

90,970,000

75,770,000

80,842,000

70,018,000

73,923,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

QL MARINE PRODUCTS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

11,292,000

1,659,000

5,373,000

1,800,000

384,000

Net Liquid Funds

9,938,000

10,000

3,811,000

1,800,000

(2,371,000)

Net Liquid Assets

28,574,000

14,682,000

19,236,000

9,372,000

17,653,000

Net Current Assets/(Liabilities)

43,997,000

25,070,000

27,251,000

20,159,000

24,469,000

Net Tangible Assets

90,970,000

75,770,000

80,842,000

70,018,000

73,923,000

Net Monetary Assets

17,121,000

11,628,000

18,128,000

5,849,000

8,379,000

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

1,354,000

2,279,000

5,103,000

10,032,000

19,390,000

Total Liabilities

17,096,000

11,570,000

19,649,000

23,785,000

28,590,000

Total Assets

96,613,000

84,286,000

99,383,000

90,280,000

93,239,000

Net Assets

90,970,000

75,770,000

80,842,000

70,018,000

73,923,000

Net Assets Backing

79,517,000

72,716,000

79,734,000

66,495,000

64,649,000

Shareholders' Funds

79,517,000

72,716,000

79,734,000

66,495,000

64,649,000

Total Share Capital

47,651,000

42,800,000

42,800,000

40,000,000

40,000,000

Total Reserves

31,866,000

29,916,000

36,934,000

26,495,000

24,649,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

2.00

0.19

0.29

0.09

0.02

Liquid Ratio

6.06

2.72

2.04

1.46

1.91

Current Ratio

8.80

3.94

2.47

1.99

2.27

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

70

49

34

82

52

Debtors Ratio

18

19

9

13

6

Creditors Ratio

6

5

5

10

3

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.02

0.03

0.06

0.15

0.30

Liabilities Ratio

0.21

0.16

0.25

0.36

0.44

Times Interest Earned Ratio

99.66

35.69

23.48

9.27

8.84

Assets Backing Ratio

1.91

1.77

1.89

1.75

1.85

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

15.30

13.04

18.76

17.78

26.19

Net Profit Margin

14.88

9.63

18.08

17.41

26.19

Return On Net Assets

13.69

13.71

21.15

13.68

19.26

Return On Capital Employed

13.60

13.41

20.85

13.67

19.24

Return On Shareholders' Funds/Equity

15.09

10.25

19.78

12.58

19.53

Dividend Pay Out Ratio (Times)

0.84

1.94

0.34

0.78

0.82

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0



FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.38

UK Pound

1

Rs.102.25

Euro

1

Rs.84.97

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.