MIRA INFORM REPORT

 

 

Report Date :

24.01.2014

 

IDENTIFICATION DETAILS

 

Name :

MPI POLYESTER INDUSTRIES SDN. BHD.

 

 

Formerly Known As :

POLYBOND SDN BHD

 

 

Registered Office :

F-9-6 (Suite 2), Block F, Setiawalk, Persiaran Wawasan, Pusat Bandar Puchong, 47160 Puchong, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

27.10.1992

 

 

Com. Reg. No.:

251594-V

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

·         engaged in manufacturing of polyethylene terephthalate resins & cotton blend yarn.

Subject manufactures polyester resins including polyethylene terephthalate (PET) products.

 

 

No. of Employees :

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

 

 

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.

:

251594-V

COMPANY NAME

:

MPI POLYESTER INDUSTRIES SDN. BHD.

FORMER NAME

:

POLYBOND SDN BHD (25/07/1994)

INCORPORATION DATE

:

27/10/1992

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

F-9-6 (SUITE 2), BLOCK F, SETIAWALK, PERSIARAN WAWASAN, PUSAT BANDAR PUCHONG, 47160 PUCHONG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

1 JALAN GUNGGUR 28/30, SECTION 28, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-51921969

FAX.NO.

:

03-51913934

CONTACT PERSON

:

SONG PEI GUAN ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

22209

PRINCIPAL ACTIVITY

:

MANUFACTURING OF POLYETHYLENE TEREPHTHALATE RESINS & COTTON BLEND YARN

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO 
ORDINARY SHARE 49,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 10,000.00 OF MYR 100.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 40,680,000.00 DIVIDED INTO 
ORDINARY SHARES 20,010,000 CASH AND 19,990,000 OTHERWISE OF MYR 1.00 EACH.
PREFERENCE SHARES 800 CASH AND 6,000 OTHERWISE OF MYR 100.00 EACH.

 

 

 

SALES

:

MYR 275,741,000 [2013]

NET WORTH

:

MYR 60,033,000 [2013]

 

 

 

STAFF STRENGTH

:

200 [2014]

BANKER (S)

:

BANK ISLAM MALAYSIA BHD
CIMB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

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 of polyethylene terephthalate resins & cotton blend yarn.

 

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 50,000,000.00

MYR 40,680,000.00

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

DELTRONE INVESTMENTS LTD
[ORD: 40,000,000 & PREF: 6,800]

PORTCULLIS INVESTMENTS LTD, P.O.BOX 3444 ROAD TOWN, TORTOLA, BRITISH VIRGIN ISLANDS

AF644297

40,006,800.00

100.00

 

 

 

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

------

 

 

 

40,006,800.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

Name Of Subject

:

MR. SONG WEN SHYANG

Address

:

JL RAYA RANCAEK, KM23, RANCAEK, BANDUNG, INDONESIA.

IC / PP No

:

R244519

 

 

 

 

 

 

 

 

 

Nationality

:

INDONESIAN

Date of Appointment

:

29/07/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

Name Of Subject

:

SONG PEI GUAN

Address

:

INDERA SUBANG CONDOMINIUM, BL-C/03/2/D, JALAN USJ 6/2, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

R980515

 

 

 

 

 

 

 

 

 

Nationality

:

INDONESIAN

Date of Appointment

:

30/06/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

Name Of Subject

:

MS. SONG SELENA

Address

:

INDERA SUBANG CONDOMINIUM, BL-C/03/2/D, JALAN USJ 6/2, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

E4103506

 

 

 

 

 

 

 

 

 

Nationality

:

AUSTRALIAN

Date of Appointment

:

22/04/2008

 

 

 

 

 

 

 

 

 

 

 

 



 

MANAGEMENT

 

 

 

1)

Name of Subject

:

SONG PEI GUAN

 

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

SCW

Auditor' Address

:

F-9-6 ( SUITE 3), BLOCK F, SETIAWALK, PERSIARAN WAWASAN, PUSAT BANDAR PUCHONG, 47160 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ONG PEH CHIN

 

 

 

 

 

New IC No

:

700227-01-5248

 

Address

:

12, JALAN PUTERI 11/1A, BANDAR PUTERI, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. LIM LEE CHUEN

 

 

 

 

 

New IC No

:

680809-10-6304

 

Address

:

40, JALAN H 13, TAMAN MELAWATI, ULU KELANG, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

BANK ISLAM MALAYSIA BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

CIMB BANK BHD

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

25/05/2006

FIRST CHARGE

BUMIPUTRA-COMMERCE BANK BHD

MYR 27,000,000.00

Unsatisfied

2

25/05/2006

SECOND CHARGE

BANK ISLAM MALAYSIA BHD

MYR 11,000,000.00

Unsatisfied

3

25/05/2006

DEBENTURE

BANK ISLAM MALAYSIA BHD

MYR 11,000,000.00

Unsatisfied

4

25/05/2006

DEBENTURE

BUMIPUTRA-COMMERCE BANK BHD

MYR 27,000,000.00

Unsatisfied

5

25/05/2006

TRADE FACILITIES AGREEMENT

BANK ISLAM MALAYSIA BHD

MYR 11,000,000.00

Unsatisfied

6

25/05/2006

FACILITIES AGREEMENT, MEMO OF DEPPOSIT OF FIXED DEPOSIT AND POWER OF ATTORNEY

BUMIPUTRA-COMMERCE BANK BHD

MYR 27,000,000.00

Unsatisfied

7

01/10/2007

MEMORANDUM OF CHARGE UNDER THE NATIONAL LAND CODE, 1965 & DEBENTURE

CIMB BANK BERHAD

MYR 11,200,000.00

Unsatisfied

8

09/06/2008

MEMORANDUM OF CHARGE UNDER THE NATIONAL LAND CODE, 1965 & DEBENTURE & LETTER OF SUBORDINATION OF LOAN / ADVANCES FROM SHAREHOLDERS / RELATED COMPANIES / DIRECTORS

CIMB BANK BERHAD

MYR 5,000,000.00

Unsatisfied

9

01/03/2011

MEMORANDUM OF CHARGE UNDER THE NATIONAL LAND CODE, 1965 & DEBENTURE

CIMB BANK BERHAD

MYR 10,000,000.00

Unsatisfied

 

 

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,JAPAN


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

Percentage

:

60%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

40%

Export Market

:

AUSTRALIA

NEW ZEALAND

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

POLYETHYLENE TEREPHTHALATE (PET) RESINS

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :1997

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

OWNED

 

Factory Size

:

12 ACRES

 

Production Capacity

:

20,000 TONNES (PERMONTH)

 

Shifts

:

2

 

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

2009

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

200

200

200

220

228

200

 

 

 

 

Branch

:

NO

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of polyethylene terephthalate resins & cotton blend yarn.

The Subject manufactures polyester resins including polyethylene terephthalate (PET) products.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-51921969

Match

:

N/A

 

 

 

Address Provided by Client

:

1 JALAN GUNGGUR 28/30, SECTION 28,40000,SHAH ALAM,SELANGOR.

Current Address

:

1 JALAN GUNGGUR 28/30, SECTION 28, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

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


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Unfavourable

[

(1.30%)

]

 

Return on Net Assets

:

Unfavourable

[

0.56%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject could be more efficient in controlling its operating costs and had managed to reduce its losses during the year. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

40 Days

]

 

Debtor Ratio

:

Favourable

[

29 Days

]

 

Creditors Ratio

:

Favourable

[

37 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Unfavourable

[

0.33 Times

]

 

Current Ratio

:

Unfavourable

[

0.57 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

0.30 Times

]

 

Gearing Ratio

:

Favourable

[

0.08 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. 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 :

 

 

 

 

 

 

The Subject's turnover showed a volatile trend but its losses were lower when compared to the previous corresponding period. This could suggest that the Subject was more efficient in its operating cost control and was more competitive. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. 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 : POOR

 

 

 

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

22209 : Manufacture of diverse plastic products n.e.c.

 

 

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 1992, the Subject is a Private Limited company, focusing on manufacturing of polyethylene terephthalate resins & cotton blend yarn. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. 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 established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. The Subject is a fairly large and rapidly growing company with over 200 staff in its 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. 

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. Fortunately, 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 60,033,000, 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. 

Overall, the Subject's payment habit is average. 

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)

MPI POLYESTER INDUSTRIES SDN. BHD.

 

Financial Year End

2013-06-30

2012-06-30

2011-06-30

2010-06-30

2009-06-30

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

275,741,000

278,271,000

274,123,000

223,332,000

201,702,000

 

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

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

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

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

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

Total Turnover

275,741,000

278,271,000

274,123,000

223,332,000

201,702,000

Costs of Goods Sold

(259,368,000)

(275,894,000)

(235,340,000)

-

-

 

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

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

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

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

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

Gross Profit

16,373,000

2,377,000

38,783,000

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

(781,000)

(19,994,000)

29,350,000

10,446,000

(11,448,000)

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

(781,000)

(19,994,000)

29,350,000

10,446,000

(11,448,000)

Taxation

1,000

(21,000)

(15,000)

(6,000)

(10,000)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(780,000)

(20,015,000)

29,335,000

10,440,000

(11,458,000)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

(47,187,000)

(27,172,000)

(56,507,000)

(66,947,000)

(55,489,000)

 

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

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

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

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

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

As restated

(47,187,000)

(27,172,000)

(56,507,000)

(66,947,000)

(55,489,000)

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(47,967,000)

(47,187,000)

(27,172,000)

(56,507,000)

(66,947,000)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(47,967,000)

(47,187,000)

(27,172,000)

(56,507,000)

(66,947,000)

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bankers' acceptance

1,115,000

978,000

793,000

1,016,000

-

Term loan / Borrowing

-

-

15,000

185,000

385,000

Others

-

-

-

-

1,279,000

 

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

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

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

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

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

 

1,115,000

978,000

808,000

1,201,000

1,664,000

 

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

MPI POLYESTER INDUSTRIES SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

113,204,000

127,868,000

141,266,000

155,022,000

168,878,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

113,204,000

127,868,000

141,266,000

155,022,000

168,878,000

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

29,932,000

34,758,000

48,938,000

27,586,000

25,235,000

Trade debtors

22,205,000

18,234,000

20,290,000

12,227,000

14,977,000

Other debtors, deposits & prepayments

2,003,000

6,764,000

3,155,000

3,612,000

4,048,000

Amount due from director

540,000

540,000

540,000

540,000

540,000

Cash & bank balances

16,281,000

5,028,000

10,783,000

4,369,000

1,884,000

 

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

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

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

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

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

TOTAL CURRENT ASSETS

70,961,000

65,324,000

83,706,000

48,334,000

46,684,000

 

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

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

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

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

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

TOTAL ASSET

184,165,000

193,192,000

224,972,000

203,356,000

215,562,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

26,147,000

9,634,000

15,151,000

10,009,000

12,107,000

Other creditors & accruals

6,024,000

4,941,000

106,894,000

116,131,000

129,941,000

Short term borrowings/Term loans

-

-

-

25,723,000

31,127,000

Other borrowings

-

-

14,903,000

-

-

Bill & acceptances payable

4,724,000

20,556,000

7,195,000

-

-

Amounts owing to holding company

87,230,000

97,241,000

-

-

-

Provision for taxation

7,000

7,000

1,000

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

124,132,000

132,379,000

144,144,000

151,863,000

173,175,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

(53,171,000)

(67,055,000)

(60,438,000)

(103,529,000)

(126,491,000)

 

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

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

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

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

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

TOTAL NET ASSETS

60,033,000

60,813,000

80,828,000

51,493,000

42,387,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

40,680,000

40,680,000

40,680,000

40,680,000

40,680,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

40,680,000

40,680,000

40,680,000

40,680,000

40,680,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

67,320,000

67,320,000

67,320,000

67,320,000

67,320,000

Retained profit/(loss) carried forward

(47,967,000)

(47,187,000)

(27,172,000)

(56,507,000)

(66,947,000)

 

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

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

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

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

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

TOTAL RESERVES

19,353,000

20,133,000

40,148,000

10,813,000

373,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

60,033,000

60,813,000

80,828,000

51,493,000

41,053,000

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

-

-

-

-

1,334,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

-

-

-

1,334,000

 

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

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

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

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

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

 

60,033,000

60,813,000

80,828,000

51,493,000

42,387,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

MPI POLYESTER INDUSTRIES SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

16,281,000

5,028,000

10,783,000

4,369,000

1,884,000

Net Liquid Funds

11,557,000

(15,528,000)

3,588,000

4,369,000

1,884,000

Net Liquid Assets

(83,103,000)

(101,813,000)

(109,376,000)

(131,115,000)

(151,726,000)

Net Current Assets/(Liabilities)

(53,171,000)

(67,055,000)

(60,438,000)

(103,529,000)

(126,491,000)

Net Tangible Assets

60,033,000

60,813,000

80,828,000

51,493,000

42,387,000

Net Monetary Assets

(83,103,000)

(101,813,000)

(109,376,000)

(131,115,000)

(153,060,000)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

4,724,000

20,556,000

22,098,000

25,723,000

32,461,000

Total Liabilities

124,132,000

132,379,000

144,144,000

151,863,000

174,509,000

Total Assets

184,165,000

193,192,000

224,972,000

203,356,000

215,562,000

Net Assets

60,033,000

60,813,000

80,828,000

51,493,000

42,387,000

Net Assets Backing

60,033,000

60,813,000

80,828,000

51,493,000

41,053,000

Shareholders' Funds

60,033,000

60,813,000

80,828,000

51,493,000

41,053,000

Total Share Capital

40,680,000

40,680,000

40,680,000

40,680,000

40,680,000

Total Reserves

19,353,000

20,133,000

40,148,000

10,813,000

373,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.13

0.04

0.07

0.03

0.01

Liquid Ratio

0.33

0.23

0.24

0.14

0.12

Current Ratio

0.57

0.49

0.58

0.32

0.27

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

40

46

65

45

46

Debtors Ratio

29

24

27

20

27

Creditors Ratio

37

13

23

16

22

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.08

0.34

0.27

0.50

0.79

Liabilities Ratio

2.07

2.18

1.78

2.95

4.25

Times Interest Earned Ratio

0.30

(19.44)

37.32

9.70

(5.88)

Assets Backing Ratio

1.48

1.49

1.99

1.27

1.04

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

(0.28)

(7.19)

10.71

4.68

(5.68)

Net Profit Margin

(0.28)

(7.19)

10.70

4.67

(5.68)

Return On Net Assets

0.56

(31.27)

37.31

22.62

(23.08)

Return On Capital Employed

0.56

(31.27)

37.31

22.62

(23.08)

Return On Shareholders' Funds/Equity

(1.30)

(32.91)

36.29

20.27

(27.91)

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0



FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.99

UK Pound

1

Rs.102.67

Euro

1

Rs.83.98

 

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.