MIRA INFORM REPORT

 

 

Report Date :

25.01.2014

 

IDENTIFICATION DETAILS

 

Name :

SYMBIOTICA SPECIALITY INGREDIENTS SDN. BHD.

 

 

Registered Office :

3-9-B, NB Plaza, 3000, Jalan Baru, 13700 Perai, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.01.2012

 

 

Date of Incorporation :

28.03.2001

 

 

Com. Reg. No.:

543176-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturer and Trader of Pharmaceutical Ingredients

 

 

No of Employees :

50

 

 

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 interests.

 

Source : CIA

 


 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

543176-K

COMPANY NAME

:

SYMBIOTICA SPECIALITY INGREDIENTS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

28/03/2001

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

3-9-B, NB PLAZA, 3000, JALAN BARU, 13700 PERAI, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

3-9-B, NB PLAZA, 3000, JALAN BARU, 13700 PERAI, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-3979799

FAX.NO.

:

04-3973979

CONTACT PERSON

:

AJOY GOPINATH PRABHU ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

21001

PRINCIPAL ACTIVITY

:

MANUFACTURING AND TRADING PHARMACEUTICAL INGREDIENTS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,000,000.00 DIVIDED INTO
ORDINARY SHARES 1,000,000 CASH AND 1,000,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 45,947,754 [2012]

NET WORTH

:

MYR 11,528,004 [2012]

 

 

 

STAFF STRENGTH

:

50 [2014]

BANKER (S)

:

PUBLIC BANK BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD
RHB BANK BHD
EON BANK BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

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

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

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 5,000,000.00

MYR 2,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MS. TUNG AI LING +

14K,TAMAN PERPADUAN, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

660516-02-5000

1,400,000.00

70.00

AJOY GOPINATH PRABHU +

14K,TAMAN PERPADUAN, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

Z1808128

600,000.00

30.00

 

 

 

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

------

 

 

 

2,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

AJOY GOPINATH PRABHU

Address

:

14K,TAMAN PERPADUAN, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

Z1808128

Date of Appointment

:

29/03/2001

 

DIRECTOR 2

 

Name Of Subject

:

MS. TUNG AI LING

Address

:

14K,TAMAN PERPADUAN, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

New IC No

:

660516-02-5000

Date of Birth

:

16/05/1966

Nationality

:

MALAYSIAN

Date of Appointment

:

29/03/2001

 

 

MANAGEMENT

 

 

1)

Name of Subject

:

AJOY GOPINATH PRABHU

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

TUNG AI LING

 

Position

:

FINANCE DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

RAVINDRA A/L KRISHNAN

 

Position

:

BUSINESS DEVELOPMENT MANAGER

 

 

AUDITOR

 

Auditor

:

OOI & ASSOCIATES

Auditor' Address

:

63, JALAN SELAT, TAMAN SELAT, GROUND FLOOR, 12000 BUTTERWORTH, PULAU PINANG, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. OOI WAN KUAN

 

 

 

 

 

New IC No

:

620115-07-5182

 

Address

:

NO. 1 JALAN RAJA GOPAL, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA.

BANKING

 

Banking relations are maintained principally with :

 

1)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

3)

Name

:

RHB BANK BHD

 

 

 

 

 

 

 

 

 

4)

Name

:

EON BANK BHD

 

 

 

 

 

 

 

 

 

5)

Name

:

MALAYAN BANKING BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

16/08/2001

N/A

HONG LEONG BANK BERHAD

MYR 295,000.00

Satisfied

2

12/09/2002

N/A

CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD

MYR 1,000,000.00

Satisfied

3

07/10/2002

ALL MONIES SPECIFIC DEBENTURE & OPEN CHARGE

UNITED OVERSEAS BANK MALAYSIA BERHAD

MYR 1,500,000.00

Unsatisfied

4

29/06/2004

N/A

MALAYAN BANKING BERHAD

MYR 306,000.00

Satisfied

5

29/06/2004

N/A

MALAYAN BANKING BERHAD

MYR 250,000.00

Satisfied

6

29/06/2004

N/A

MALAYAN BANKING BERHAD

MYR 550,000.00

Satisfied

7

20/12/2005

N/A

MALAYAN BANKING BHD

MYR 60,000.00

Satisfied

8

16/04/2007

ALL MONIES SPECIFIC DEBENTURE & OPEN CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD

-

Unsatisfied

9

01/08/2008

OPEN CHARGE

RHB BANK BHD

-

Unsatisfied

10

23/02/2009

N/A

EON BANK BHD

MYR 700,000.00

Satisfied

11

23/02/2009

N/A

EON BANK BHD

MYR 200,000.00

Satisfied

12

06/07/2010

OPEN CHARGE

PUBLIC BANK BHD

-

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

:

UNITED STATES,BELGIUM,INDIA


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

:

INDIA

CHINA

SWITZERLAND

THAILAND

KOREA

UNITED STATES

EUROPE

MIDDLE EAST

TAIWAN

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

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

Type of Customer

:

DEALERS,PHARMACIES,PHARMACEUTICAL INDUSTRIES

 

 

 

 

 

 

CUSTOMER(S)

:

1) PHARMANIAGA BHD

 

 

OPERATIONS

 

Products manufactured

:

PRE-FORMULATED INGREDIETS, NON STEROIDAL ACTIVE PHARMACEUTICAL INGREDIENTS AND STEROIDAL ACTIVE PHARMACEUTICAL INGREDIENTS

 

 

 

Product Brand Name

:

SYMBIOTICA

 

 

 

Award

:

1 ) ENTERPRISE 50 AWARD Year :2009
2 ) EXPORT EXCELLENCE AWARD (MERCHANDISE) BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2006

 

 

 

 

 

Competitor(s)

:

ALPHA BIOLOGICS SDN BHD
APEX HEALTHCARE BHD
CCM DUOPHARMA BIOTECH BHD
IDAMAN PHARMA MANUFACTURING SDN BHD
Y.S.P. INDUSTRIES (M) SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

OWNED

 

Factory / Premises

:

NO 518 JALAN WAJA 4, TAMAN INDUSTRIAL WAJA, 09000 KULIM, KEDAH, MALAYSIA.
Tel No: 04-4892799
Fax No: 04-4892599

 

 

 

 

Production Line

:

4

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

 

 

 

 


 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

50

56

56

50

41

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


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


The Subject is mainly focuses on the Active Pharmaceutical Ingredients (API).


The Subject products range includes Bethasone Valerate, Mometasone Furoate, Bethasone Divropionate and others.

The Subject produces three types of ingredients as follows:


* Steroidal active pharmaceutical ingredients


* Non steroidal active pharmaceutical ingredients


* Pre-formulated ingredients


According to the Subject, it produces the API in powder forms.


The Subject utilizes advanced automated and semi-automated machineries at its factory.


We were informed that the Subject also has R&D Department to ensure production of API that meet the standard of quality that customers' demand.

 

 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

04-3979799

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 518, JALAN-WAJA 4, TAMAN INDUSTRIES, WAJA 09000 KULIM KEDAH

Current Address

:

3-9-B, NB PLAZA, 3000, JALAN BARU, 13700 PERAI, PULAU PINANG, 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 belongs to the Subject's factory.

 

 

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

18.74%

]

 

Return on Net Assets

:

Acceptable

[

22.42%

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years. The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

44 Days

]

 

Debtor Ratio

:

Unfavourable

[

77 Days

]

 

Creditors Ratio

:

Favourable

[

58 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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

[

1.23 Times

]

 

Current Ratio

:

Unfavourable

[

1.66 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

:

Acceptable

[

8.87 Times

]

 

Gearing Ratio

:

Favourable

[

0.56 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject was 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 :

 

 

 

 

 

 

Generally, the Subject's performance has improved with higher turnover and profit. 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 had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject 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 : 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

 

 

INDUSTRY ANALYSIS

 

 

MSIC CODE

 

21001 : Manufacture of medicinal active substances to be used for their pharmacological properties in the manufacture of medicaments

 

 

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 assolar 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 2001, the Subject is a Private Limited company, focusing on manufacturing and trading pharmaceutical ingredients. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.


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. The Subject is operating on a medium scale and it has approximately 50 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to the Subject.


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. 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 11,528,004, the Subject should be able to maintain its business in the near terms.


Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.


The 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 promptly.

 

 

PROFIT AND LOSS ACCOUNT

 

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

SYMBIOTICA SPECIALITY INGREDIENTS SDN. BHD.

 

Financial Year End

2012-01-31

2011-01-31

2010-01-31

2009-01-31

2008-01-31

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

45,947,754

40,865,508

30,682,822

29,385,829

31,506,125

Other Income

976,347

786,436

675,923

258,279

606,795

 

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

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

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

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

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

Total Turnover

46,924,101

41,651,944

31,358,745

29,644,108

32,112,920

Costs of Goods Sold

(41,020,235)

(37,244,142)

(27,656,842)

(26,275,776)

(26,653,075)

 

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

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

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

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

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

Gross Profit

5,903,866

4,407,802

3,701,903

3,368,332

5,459,845

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

2,631,170

1,349,562

1,041,825

568,306

2,281,049

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

2,631,170

1,349,562

1,041,825

568,306

2,281,049

Taxation

(470,706)

(410,419)

(208,091)

(208,833)

(82,157)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

2,160,464

939,143

833,734

359,473

2,198,892

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

7,367,540

6,428,397

5,594,663

5,235,190

3,036,298

 

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

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

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

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

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

As restated

7,367,540

6,428,397

5,594,663

5,235,190

3,036,298

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

9,528,004

7,367,540

6,428,397

5,594,663

5,235,190

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

9,528,004

7,367,540

6,428,397

5,594,663

5,235,190

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

95,378

51,775

46,491

54,321

57,017

Bankers' acceptance

139,696

113,916

63,095

103,928

101,376

Hire purchase

50,853

3,365

4,728

8,070

13,537

Term loan / Borrowing

39,969

57,112

23,237

27,719

30,243

Trust receipts

8,391

3,066

3,003

4,541

3,055

Others

-

-

-

-

9,159

 

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

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

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

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

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

 

334,287

229,234

140,554

198,579

214,387

 

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

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

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

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

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

 

 

BALANCE SHEET

 

SYMBIOTICA SPECIALITY INGREDIENTS SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

4,582,776

2,525,166

2,332,588

2,149,552

2,309,157

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

4,582,776

2,525,166

2,332,588

2,149,552

2,309,157

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

5,571,019

4,993,562

4,012,014

5,560,089

4,705,483

Trade debtors

9,750,434

8,108,469

6,152,355

5,536,463

5,757,223

Other debtors, deposits & prepayments

704,686

1,067,112

159,739

284,828

64,067

Short term deposits

2,323,046

2,300,635

2,239,010

1,939,191

1,679,168

Amount due from related companies

-

-

446,064

443,543

441,211

Cash & bank balances

3,451,854

1,949,503

2,912,597

1,343,329

2,396,232

Others

-

-

-

-

7,600

 

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

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

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

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

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

TOTAL CURRENT ASSETS

21,801,039

18,419,281

15,921,779

15,107,443

15,050,984

 

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

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

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

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

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

TOTAL ASSET

26,383,815

20,944,447

18,254,367

17,256,995

17,360,141

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

6,540,046

4,887,342

4,585,043

4,603,137

5,925,243

Other creditors & accruals

1,445,387

1,470,879

1,891,977

1,229,447

660,726

Hire purchase & lease creditors

325,895

50,804

22,609

33,566

37,043

Bank overdraft

1,256,119

606,110

987,096

705,478

804,338

Short term borrowings/Term loans

100,534

88,627

105,106

66,690

22,396

Other borrowings

-

-

-

-

38,077

Bill & acceptances payable

3,265,000

3,096,000

1,510,000

2,267,000

2,062,000

Amounts owing to director

328

14,575

31,564

30,726

1,221

Provision for taxation

123,752

137,816

22,163

85,555

-

Other liabilities

101,467

470,164

48,958

64,257

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

13,158,528

10,822,317

9,204,516

9,085,856

9,551,044

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

8,642,511

7,596,964

6,717,263

6,021,587

5,499,940

 

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

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

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

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

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

TOTAL NET ASSETS

13,225,287

10,122,130

9,049,851

8,171,139

7,809,097

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

2,000,000

2,000,000

2,000,000

2,000,000

2,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

2,000,000

2,000,000

2,000,000

2,000,000

2,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

9,528,004

7,367,540

6,428,397

5,594,663

5,235,190

 

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

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

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

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

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

TOTAL RESERVES

9,528,004

7,367,540

6,428,397

5,594,663

5,235,190

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

11,528,004

9,367,540

8,428,397

7,594,663

7,235,190

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

642,116

550,630

474,409

407,492

394,451

Hire purchase creditors

896,607

87,930

53,360

75,969

109,461

Deferred taxation

158,560

116,030

93,685

93,015

69,995

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,697,283

754,590

621,454

576,476

573,907

 

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

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

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

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

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

 

13,225,287

10,122,130

9,049,851

8,171,139

7,809,097

 

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

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

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

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

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

 

 

FINANCIAL RATIO

 

SYMBIOTICA SPECIALITY INGREDIENTS SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

5,774,900

4,250,138

5,151,607

3,282,520

4,075,400

Net Liquid Funds

1,253,781

548,028

2,654,511

310,042

1,209,062

Net Liquid Assets

3,071,492

2,603,402

2,705,249

461,498

794,457

Net Current Assets/(Liabilities)

8,642,511

7,596,964

6,717,263

6,021,587

5,499,940

Net Tangible Assets

13,225,287

10,122,130

9,049,851

8,171,139

7,809,097

Net Monetary Assets

1,374,209

1,848,812

2,083,795

(114,978)

220,550

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

6,486,271

4,480,101

3,152,580

3,556,195

3,467,766

Total Liabilities

14,855,811

11,576,907

9,825,970

9,662,332

10,124,951

Total Assets

26,383,815

20,944,447

18,254,367

17,256,995

17,360,141

Net Assets

13,225,287

10,122,130

9,049,851

8,171,139

7,809,097

Net Assets Backing

11,528,004

9,367,540

8,428,397

7,594,663

7,235,190

Shareholders' Funds

11,528,004

9,367,540

8,428,397

7,594,663

7,235,190

Total Share Capital

2,000,000

2,000,000

2,000,000

2,000,000

2,000,000

Total Reserves

9,528,004

7,367,540

6,428,397

5,594,663

5,235,190

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.44

0.39

0.56

0.36

0.43

Liquid Ratio

1.23

1.24

1.29

1.05

1.08

Current Ratio

1.66

1.70

1.73

1.66

1.58

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

44

45

48

69

55

Debtors Ratio

77

72

73

69

67

Creditors Ratio

58

48

61

64

81

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.56

0.48

0.37

0.47

0.48

Liabilities Ratio

1.29

1.24

1.17

1.27

1.40

Times Interest Earned Ratio

8.87

6.89

8.41

3.86

11.64

Assets Backing Ratio

6.61

5.06

4.52

4.09

3.90

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

5.73

3.30

3.40

1.93

7.24

Net Profit Margin

4.70

2.30

2.72

1.22

6.98

Return On Net Assets

22.42

15.60

13.07

9.39

31.96

Return On Capital Employed

20.03

14.65

11.75

8.61

28.85

Return On Shareholders' Funds/Equity

18.74

10.03

9.89

4.73

30.39

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. 62.17

UK Pound

1

Rs. 103.38

Euro

1

Rs. 85.08

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT

 

 

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.