MIRA INFORM REPORT

 

 

Report Date :

17.01.2014

 

IDENTIFICATION DETAILS

 

Name :

CONTINENTAL TYRE PJ MALAYSIA SDN. BHD.

 

 

Formerly Known As :

CONTINENTAL SIME TYRE PJ SDN BHD

 

 

Registered Office :

2, Jalan Tandang, 46050 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

12.07.1961

 

 

Com. Reg. No.:

4296-K

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

·         Engaged in manufacturing and trading of tyres

Subject produces a wide range of light truck, medium commercial truck and bus radial steel tyres

 

 

No. of Employees :

1,200 [2014]

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct  

 

 

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 interests.

 

Source : CIA


* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

4296-K

COMPANY NAME

:

CONTINENTAL TYRE PJ MALAYSIA SDN. BHD.

FORMER NAME

:

CONTINENTAL SIME TYRE PJ SDN BHD (10/07/2012)
DMIB SDN BHD (13/07/2005)
DMIB BHD (03/06/2005)
DUNLOP MALAYSIAN INDUSTRIES BHD (05/08/1988)
DUNLOP MALAYAN INDUSTRIES BHD (02/05/1968)

INCORPORATION DATE

:

12/07/1961

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

2, JALAN TANDANG, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

SIME DARBY TECHNOLOGY CENTRE BUILDING, 2 JALAN TANDANG, 2ND FLOOR, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-77878888

FAX.NO.

:

03-77835216

WEB SITE

:

WWW.CONTI-SIME.COM

CONTACT PERSON

:

BENOIT H.G.M. HENRY ( CEO )

 

 

 

INDUSTRY CODE

:

22111

PRINCIPAL ACTIVITY

:

MANUFACTURING AND TRADING OF TYRES

AUTHORISED CAPITAL

:

MYR 200,000,000.00 DIVIDED INTO 
ORDINARY SHARE 400,000,000.00 OF MYR 0.50 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 168,404,679.00 DIVIDED INTO 
ORDINARY SHARES 195,209,358 CASH AND 141,600,000 OTHERWISE OF MYR 0.50 EACH.

 

 

 

SALES

:

MYR 1,313,674,000 [2012]

NET WORTH

:

MYR 134,641,000 [2012]

M1000 OVERALL RANKING

:

406[2011]

M1000 INDUSTRY RANKING

:

7[2011]

 

 

 

STAFF STRENGTH

:

1,200 [2014]

BANKER (S)

:

MALAYAN BANKING BHD
STANDARD CHARTERED BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

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

 

The Subject is principally engaged in the (as a / as an) manufacturing and trading of tyres.

 

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

 

According to the Malaysia 1000 publication, the Subject's ranking are as follows:

YEAR

2011

2009

2008

2005

2004

 

OVERALL RANKING

406

580

521

314

287

 

INDUSTRY RANKING

7

14

10

1

1

 

 

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

 

The ultimate holding company of the Subject is CONTINENTAL AKTIENGESELLSCHAFT, a company incorporated in GERMANY.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 200,000,000.00

MYR 168,404,679.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

CONTINENTAL TYRE MALAYSIA SDN. BHD.

NO.2 & 4, JALAN TANDANG, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

580442V

336,809,358.00

100.00

 

 

 

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

------

 

 

 

336,809,358.00

100.00

 

 

 

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

=====

+ Also Director


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



Local No

Country

Company

(%)

As At

397328K

MALAYSIA

DMI TECHNOLOGIES SDN. BHD.

100.00

29/03/2013

 

 

 

 

 

7327K

MALAYSIA

SIMEX TYRES SDN. BHD.

100.00

29/03/2013

 

 

 

 

 

375413U

MALAYSIA

DMIB HIROSHIMA CHEMICAL (MALAYSIA) SDN. BHD.

100.00

29/03/2013

 

 

 

 

 

353591V

MALAYSIA

SIME KITARAN BUMI SDN. BHD.

100.00

29/03/2013

 

 

 

 

 

126902K

MALAYSIA

CONTINENTAL TYRE MARKETING MALAYSIA SDN. BHD.

100.00

29/03/2013

 

 

 

 

 

30060U

MALAYSIA

SIMEX ENGINEERED RUBBER PRODUCTS SDN. BHD.

100.00

29/03/2013

 

 

 

 

 

449748W

MALAYSIA

CONTINENTAL TYRE TECHNOLOGY CENTRE MALAYSIA SDN. BHD.

100.00

29/03/2013

 

 

 

 

 

 

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. BENOIT HENRI GHISLAIN MARIE HENRY

Address

:

NO.90, JALAN SETIA MURNI 6, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

EH458316

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

11/05/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

ANTONIO MANUEL MONICA LOPES DE SEABRA

Address

:

PRINCE HILLS, 111 ZHEN NING LU, BL. 2, APT. 802, 200050 SHANGHAI, CHINA

IC / PP No

:

G925238

 

 

 

 

 

 

 

 

 

Nationality

:

CHINESE

Date of Appointment

:

07/06/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

SONKE SCHICKE

Address

:

XIKANG ROAD 501,BUILDING 4, APARTMENT 2903 JING AN DISTRICT, SHANGHAI 200040 CHINA

IC / PP No

:

C4FJ9PYT4

 

 

 

 

 

 

 

 

 

Nationality

:

CHINESE

Date of Appointment

:

07/06/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MS. HOE LOO FEN

Address

:

NO.37, TAMAN JOHAN FASA 2, JALAN KUALA KEDAH, 05400 ALOR SETAR, KEDAH, MALAYSIA.

 

 

 

New IC No

:

670727-02-5042

Date of Birth

:

27/07/1967

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

16/11/2012

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

BENOIT H.G.M. HENRY

 

Position

:

CEO

 

 

 

 

 

2)

Name of Subject

:

LEE GEOK KIM

 

Position

:

HEAD OF FINANCE

 

 

 

 

 

3)

Name of Subject

:

AMELIA LIM

 

Position

:

MARKETING MANAGER

 

 

 

 

 

4)

Name of Subject

:

CHOONG KEE SENG

 

Position

:

SALES DIRECTOR

 

 

 

 

 

5)

Name of Subject

:

LIAN CHIN LI

 

Position

:

ASSISTANT MARKETING MANAGER

 

 

 

 

 

6)

Name of Subject

:

VICTOR SIEW

 

Position

:

HEAD OF MARKETING

 

 

 

 

 

7)

Name of Subject

:

SALMAH

 

Position

:

SECRETARY

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

KPMG TOWER, 8 FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. TAI YIT CHAN

 

 

 

 

 

New IC No

:

690118-10-6160

 

Address

:

56 JALAN SS 22/29, DAMANSARA JAYA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. PENG SIEW HWEE

 

 

 

 

 

New IC No

:

700710-01-5328

 

Address

:

5-35,LORONG UDANG KETAK 2, TAMAN SRI SEGAMBUT, 52000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

STANDARD CHARTERED BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

 

 

 

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 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 since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. 

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

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

CHINA,EUROPE,UNITED STATES



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

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

SAUDI ARABIA

BRAZIL

UNITED STATES

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

Type of Customer

:

DEALERS,DISTRIBUTORS

 

 

 

 

 

 

 

 

 

 

 

 

 


OPERATIONS

 

Products manufactured

:

TYRES

 

 

 

Goods Traded

:

TYRES

 

 

 

 

Award

:

1 ) MS ISO 14001 Year :2004
2 ) QUALITY MANAGEMENT EXCELLENCE AWARD BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2003
3 ) PRODUCT EXCELLENCE AWARD BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2002
4 ) OHSAS 18001 Year :2002
5 ) MS ISO 9001 : 2000 Year :1991

 

 

 

 

 

 

 

 

Certification of Products

:

1 ) MS 149:1992

 

 

 

 

Competitor(s)

:

CONTINENTAL TYRE AS MALAYSIA SDN. BHD.
EVERTHROUGH RUBBER PRODUCTS SDN BHD
FRIENDSHIP RUBBER INDUSTRY (MALAYSIA) SDN BHD
GOODYEAR MALAYSIA BERHAD
SILVERSTONE BERHAD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

SMALL & MEDIUM ENTERPRISE

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

MALAYSIA LOGISTICS INDUSTRY

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

 

 

 

 


 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

1,200

1,106

1,190

1,280

1,350

 

 

 

 

 

Branch

:

YES

 

No of Branches

:

8

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing and trading of tyres

We were informed that the subject is under the Continental Sime Tyres Sdn Bhd and is a part of the Continental Group. 

The Subject produces a wide range of light truck, medium commercial truck and bus radial steel tyres.

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

Besides that the Subject has related manufacturing plant located in Alor Setar, Kedah.

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-77878888

Match

:

N/A

 

 

 

Address Provided by Client

:

MALAYSIA

Current Address

:

SIME DARBY TECHNOLOGY CENTRE BUILDING, 2 JALAN TANDANG, 2ND FLOOR, 46050 PETALING JAYA, SELANGOR, 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 incomplete.

 

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

7.52%

]

 

Return on Net Assets

:

Unfavourable

[

6.00%

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Acceptable

[

1.10 Times

]

 

 

 

 

 

 

 

 

The Subject has an adequate 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

[

3.53 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The higher turnover had helped to reduce the Subject's losses. 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 : FAIR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 


INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

 

 

 

 



INDUSTRY ANALYSIS

 

MSIC CODE

22111 : Manufacture of rubber tyres for vehicles

 

 

INDUSTRY :

MANUFACTURING

 

 

 

The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domestic oriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand. 

 

Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first seven months of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domestic oriented industries continued to expand 8.6% while export-oriented industries grew 4.1%.

 

According to the Department of Statistics, the sales value of the Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion) to record RM52.4 billion as compared to RM48.8 billion reported in year 2012. Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2 billion) as compared with the preceding month. The sales value in December 2012 has been revised positive 7.5% year-on-year to record RM52.6 billion. 

 

Output of rubber products increased 3.6% in the first seven month of 2012 mainly supported by continuous demand for rubber gloves. Output of rubber gloves grew 5.9% on account of the expansion in the global healthcare industry and wider usage of gloves in other sectors. Similarly, output of catheters, especially for use in medical appliances, also registered a strong growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in tandem with slowing external demand from the automotive industry, especially China. 

 

Meanwhile, production of wood and wood products rebounded 4.6% largely supported by higher demand for wooden and cane furniture (33.5%). The positive performance was attributed to vibrant higher demand from major export destinations such as China and the United States (US) for Malaysian-made furniture. Demand from China accelerated further following the country’s rising income level and the implementation of zero import duty on Malaysian made-furniture. Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.

 

The output of chemicals and chemical products rose 9.9% in the first seven month of year 2012 on account of increasing demand for plastic products (11.8%) and basic chemicals (11.1%). External demand for plastic packaging materials surged during the early part of the year 2012, particularly from Japan and Thailand, as manufacturers resumed operations, which were interrupted by natural calamities and power outages. Chemical production are expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries. 

 

Tax and non-tax incentives provided by government encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by government in the manufacturing sector such as solar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 


CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1961, the Subject is a Private Limited company, focusing on manufacturing and trading of tyres. Its long establishment in the market has allowed the Subject to build up a good reputation and gain higher market share against 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 1,200 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

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. The Subject however has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Fortunately, the Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. Given a positive net worth standing at MYR 134,641,000, 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. Overall the Subject has a good control over its resources. 

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts. 

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)

CONTINENTAL TYRE PJ MALAYSIA SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

1,313,674,000

1,291,700,000

1,068,213,000

884,986,000

493,280,000

 

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

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

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

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

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

Total Turnover

1,313,674,000

1,291,700,000

1,068,213,000

884,986,000

493,280,000

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

11,263,000

(15,546,000)

(28,425,000)

(22,171,000)

8,158,000

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

11,263,000

(15,546,000)

(28,425,000)

(22,171,000)

8,158,000

Taxation

(1,133,000)

4,731,000

(15,793,000)

4,953,000

18,296,000

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

10,130,000

(10,815,000)

(44,218,000)

(17,218,000)

26,454,000

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

(43,894,000)

(33,079,000)

11,139,000

40,457,000

29,197,000

 

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

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

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

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

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

As restated

(43,894,000)

(33,079,000)

11,139,000

40,457,000

29,197,000

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(33,764,000)

(43,894,000)

(33,079,000)

23,239,000

55,651,000

DIVIDENDS - Ordinary (paid & proposed)

-

-

-

(12,100,000)

(15,194,000)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(33,764,000)

(43,894,000)

(33,079,000)

11,139,000

40,457,000

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Lease interest

-

2,012,000

2,309,000

2,490,000

2,669,000

Others

-

4,326,000

4,080,000

4,332,000

3,124,000

 

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

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

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

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

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

 

-

6,338,000

6,389,000

6,822,000

5,793,000

 

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

CONTINENTAL TYRE PJ MALAYSIA SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

136,825,000

147,707,000

164,204,000

193,076,000

221,100,000

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Subsidiary companies

-

10,193,000

10,193,000

10,193,000

15,774,000

Deferred assets

-

20,198,000

15,412,000

31,205,000

26,318,000

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

10,193,000

30,391,000

25,605,000

41,398,000

42,092,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

147,018,000

178,098,000

189,809,000

234,474,000

263,192,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

-

118,832,000

88,708,000

87,501,000

56,665,000

Trade debtors

-

155,171,000

134,298,000

122,189,000

185,000

Other debtors, deposits & prepayments

-

11,317,000

7,782,000

12,729,000

7,317,000

Amount due from subsidiary companies

-

-

-

-

90,942,000

Amount due from related companies

-

99,225,000

52,359,000

37,295,000

30,464,000

Cash & bank balances

-

43,967,000

75,191,000

74,813,000

11,496,000

Others

-

15,248,000

6,250,000

4,420,000

801,000

 

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

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

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

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

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

TOTAL CURRENT ASSETS

462,461,000

443,760,000

364,588,000

338,947,000

197,870,000

 

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

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

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

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

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

TOTAL ASSET

609,479,000

621,858,000

554,397,000

573,421,000

461,062,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

101,242,000

85,801,000

57,367,000

28,347,000

Other creditors & accruals

-

67,370,000

70,854,000

62,888,000

19,165,000

Hire purchase & lease creditors

-

3,770,000

3,556,000

3,355,000

3,165,000

Short term borrowings/Term loans

-

30,000,000

30,000,000

30,000,000

95,000,000

Bill & acceptances payable

-

31,600,000

27,400,000

18,000,000

-

Amounts owing to holding company

-

-

-

12,100,000

21,245,000

Amounts owing to subsidiary companies

-

-

-

53,000

12,295,000

Amounts owing to related companies

-

145,068,000

96,187,000

101,856,000

1,513,000

Other liabilities

-

61,075,000

44,266,000

43,671,000

3,500,000

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

421,622,000

440,125,000

358,064,000

329,290,000

184,230,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

40,839,000

3,635,000

6,524,000

9,657,000

13,640,000

 

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

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

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

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

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

TOTAL NET ASSETS

187,857,000

181,733,000

196,333,000

244,131,000

276,832,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

168,405,000

168,405,000

168,405,000

168,405,000

168,405,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

168,405,000

168,405,000

168,405,000

168,405,000

168,405,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

(33,764,000)

(43,894,000)

(33,079,000)

11,139,000

40,457,000

 

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

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

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

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

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

TOTAL RESERVES

(33,764,000)

(43,894,000)

(33,079,000)

11,139,000

40,457,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

134,641,000

124,511,000

135,326,000

179,544,000

208,862,000

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Lease obligations

-

57,051,000

60,821,000

64,377,000

67,732,000

Retirement benefits provision

-

171,000

186,000

210,000

238,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

53,216,000

57,222,000

61,007,000

64,587,000

67,970,000

 

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

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

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

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

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

 

187,857,000

181,733,000

196,333,000

244,131,000

276,832,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

CONTINENTAL TYRE PJ MALAYSIA SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

-

43,967,000

75,191,000

74,813,000

11,496,000

Net Liquid Funds

-

12,367,000

47,791,000

56,813,000

11,496,000

Net Liquid Assets

40,839,000

(115,197,000)

(82,184,000)

(77,844,000)

(43,025,000)

Net Current Assets/(Liabilities)

40,839,000

3,635,000

6,524,000

9,657,000

13,640,000

Net Tangible Assets

187,857,000

181,733,000

196,333,000

244,131,000

276,832,000

Net Monetary Assets

(12,377,000)

(172,419,000)

(143,191,000)

(142,431,000)

(110,995,000)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

-

122,421,000

121,777,000

115,732,000

165,897,000

Total Liabilities

474,838,000

497,347,000

419,071,000

393,877,000

252,200,000

Total Assets

609,479,000

621,858,000

554,397,000

573,421,000

461,062,000

Net Assets

187,857,000

181,733,000

196,333,000

244,131,000

276,832,000

Net Assets Backing

134,641,000

124,511,000

135,326,000

179,544,000

208,862,000

Shareholders' Funds

134,641,000

124,511,000

135,326,000

179,544,000

208,862,000

Total Share Capital

168,405,000

168,405,000

168,405,000

168,405,000

168,405,000

Total Reserves

(33,764,000)

(43,894,000)

(33,079,000)

11,139,000

40,457,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

-

0.10

0.21

0.23

0.06

Liquid Ratio

-

0.74

0.77

0.76

0.77

Current Ratio

1.10

1.01

1.02

1.03

1.07

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

-

34

30

36

42

Debtors Ratio

-

44

46

50

0

Creditors Ratio

-

29

29

24

21

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

-

0.98

0.90

0.64

0.79

Liabilities Ratio

3.53

3.99

3.10

2.19

1.21

Times Interest Earned Ratio

-

(1.45)

(3.45)

(2.25)

2.41

Assets Backing Ratio

1.12

1.08

1.17

1.45

1.64

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

0.86

(1.20)

(2.66)

(2.51)

1.65

Net Profit Margin

0.77

(0.84)

(4.14)

(1.95)

5.36

Return On Net Assets

6.00

(5.07)

(11.22)

(6.29)

5.04

Return On Capital Employed

6.00

(4.96)

(11.02)

(6.20)

4.98

Return On Shareholders' Funds/Equity

7.52

(8.69)

(32.68)

(9.59)

12.67

Dividend Pay Out Ratio (Times)

-

0.00

0.00

0.70

0.57

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

-

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.53

UK Pound

1

Rs.100.73

Euro

1

Rs.83.84

 

INFORMATION DETAILS

 

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.