MIRA INFORM REPORT

 

 

Report Date :

04.07.2014

 

IDENTIFICATION DETAILS

 

Name :

PRESTASI FLOUR MILL (M) SDN. BHD.

 

 

Formerly Known As :

PRESTASI BAHAGIA SDN BHD (19/06/1998)

 

 

Registered Office :

Lot 55711, Jalan Tanjung, Dry Bulk Terminal, West Port, 42009 Pelabuhan Klang, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

23.09.1994

 

 

Com. Reg. No.:

317371-A

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Flour

 

 

No of Employees :

170 [2014]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

D

 

 

MALAYSIA ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays

 

Source : CIA

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

317371-A

COMPANY NAME

:

PRESTASI FLOUR MILL (M) SDN. BHD.

FORMER NAME

:

PRESTASI BAHAGIA SDN BHD (19/06/1998)

INCORPORATION DATE

:

23/09/1994

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LOT 55711, JALAN TANJUNG, DRY BULK TERMINAL, WEST PORT, 42009 PELABUHAN KLANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 55711, JALAN TANJUNG, DRY BULK TERMINAL, WEST PORT, 42009 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31011998

FAX.NO.

:

03-31011898

CONTACT PERSON

:

ALEX LEE ( PRESIDENT )

INDUSTRY CODE

:

10613

PRINCIPAL ACTIVITY

:

MANUFACTURING OF FLOUR

AUTHORISED CAPITAL

:

MYR 100,000,000.00 DIVIDED INTO
ORDINARY SHARE 100,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 51,700,000.00 DIVIDED INTO
ORDINARY SHARES 23,940,000 CASH AND 27,760,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 319,715,862 [2012]

NET WORTH

:

MYR 126,897,273 [2012]

STAFF STRENGTH

:

170 [2014]

BANKER (S)

:

CIMB BANK BHD
HSBC BANK MALAYSIA BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

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 flour.

 

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

 

The immediate holding company of the Subject is INTERFLOUR HOLDINGS (M) SDN. BHD., a company incorporated in MALAYSIA.

 

The ultimate holding company of the Subject is PACIFIC AGRIFOODS LIMITED, a company incorporated in VIRGIN ISLANDS, BRITISH.

 

The intermediate holding company of the Subject is INTERFLOUR HOLDING LIMITED, a company incorporated in VIRGIN ISLANDS, BRITISH.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/06/2013

MYR 100,000,000.00

MYR 51,700,000.00

15/07/2007

MYR 50,000,000.00

MYR 31,900,000.00

15/09/2004

MYR 50,000,000.00

MYR 29,300,000.00

20/07/1998

MYR 25,000,000.00

MYR 18,000,000.00

09/10/1997

MYR 25,000,000.00

MYR 14,000,000.00

24/06/1997

MYR 25,000,000.00

MYR 11,204,000.00

19/02/1997

MYR 25,000,000.00

MYR 10,704,000.00

10/12/1996

MYR 25,000,000.00

MYR 4,988,000.00

16/09/1996

MYR 25,000,000.00

MYR 3,813,000.00

13/09/1996

MYR 25,000,000.00

MYR 100.00

23/09/1994

MYR 100,000.00

MYR 2.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

INTERFLOUR HOLDINGS (M) SDN. BHD.

LEVEL 5 MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

317360H

26,460,000.00

51.18

SARAWAK FLOUR MILL SDN. BHD.

LOT 724, BLOCK 7, DEMAK LAUT INDUSTRIAL PARK, JALAN BAKO, 93050 KUCHING, SARAWAK, MALAYSIA.

252426P

13,900,000.00

26.89

TUATURA SDN. BHD.

BLOCK B-59, LEVEL 2, TAMAN SRI SWK MALL, JALAN TUNKU ABDUL RAHMAN, 93100 KUCHING, SARAWAK, MALAYSIA.

79078U

11,340,000.00

21.93

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

------

51,700,000.00

100.00

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

ANGEL UMALI

Address

:

75, BUKIT TIMAH ROAD, #06-02/03, BOON SIEW BUILDING, 22983, SINGAPORE.

IC / PP No

:

EB2007292

Nationality

:

FILIPINO

Date of Appointment

:

01/03/2006

 

DIRECTOR 2

 

Name Of Subject

:

MR. GREGORY LYOYD HARVEY

Address

:

75, BUKIT TIMAH ROAD, #06-02/03, BOON SIEW, BUILDING, 229833, SINGAPORE.

IC / PP No

:

E4049912

Date of Appointment

:

25/05/2005

 

DIRECTOR 3

 

Name Of Subject

:

MR. GOH CHENG BEE

Address

:

NO.28, JALAN DAMAI KASIH 6, ALAM DAMAI CHERAS, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

3905951

New IC No

:

510522-07-5529

Date of Birth

:

22/05/1951

Nationality

:

MALAYSIAN

Date of Appointment

:

29/08/2011

Remark

:

ALTERNATE DIRECTOR TO GREGORY LLOYD HARVEY

 

DIRECTOR 4

 

Name Of Subject

:

DATO' VENGADASALAM LETCHUMI KANDAN

Address

:

6,LORONG 9/5B, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

2999324

New IC No

:

370808-10-5437

Date of Birth

:

08/08/1937

Nationality

:

MALAYSIAN

Date of Appointment

:

01/08/1996

 

DIRECTOR 5

 

Name Of Subject

:

MR. YEOH SOO ANN

Address

:

NO.7, JALAN TR 2/1, TROPICANA GOLF & COUNTRY RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

6339636

New IC No

:

611201-05-5095

Date of Birth

:

01/12/1961

Nationality

:

MALAYSIAN

Date of Appointment

:

03/10/2012

 

DIRECTOR 6

 

Name Of Subject

:

PIERRE JEAN-CLAUDE MOCCAND

Address

:

THE STERLING 1003 BUKIT TIMAH ROAD, TOWER B2 #03-03, 596289, SINGAPORE.

IC / PP No

:

X3630418

Nationality

:

SWISS

Date of Appointment

:

06/12/2012

Remark

:

ALTERNATE DIRECTOR TO MR YEOH SOO ANN



MANAGEMENT

 

1)

Name of Subject

:

ALEX LEE

Position

:

PRESIDENT

 

2)

Name of Subject

:

CHEONG WOON SIN

Position

:

FINANCIAL CONTROLLER

 

3)

Name of Subject

:

PETER LANG

Position

:

MARKETING MANAGER

 

4)

Name of Subject

:

EUNICE YAP

Position

:

ASSISTANT GENERAL MANAGER

 

AUDITOR

 

Auditor

:

ERNST & YOUNG

Auditor' Address

:

LEVEL 23A, MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LEONG OI WAH

IC / PP No

:

5988820

New IC No

:

601003-10-6390

Address

:

21, JALAN 4/54, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

 

1)

Name

:

CIMB BANK BHD

 

2)

Name

:

HSBC BANK MALAYSIA BHD

 

3)

Name

:

MALAYAN BANKING BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

29/08/1997

N/A

CIMB BANK BERHAD

MYR 27,500,000.00

Satisfied

2

02/10/1998

N/A

CIMB BANK BERHAD

MYR 2,500,000.00

Satisfied

3

25/07/2002

N/A

CIMB BANK BERHAD

MYR 3,000,000.00

Satisfied

4

02/10/2003

N/A

HSBC BANK MALAYSIA BERHAD AS SECURITY AGENT FOR HSBC AMANAH MALAYSIA BERHAD AND ITSELF

-

Satisfied

5

18/01/2010

N/A

MALAYAN BANKING BHD

MYR 101,000,000.00

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



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

:

INDONESIA

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

DEALERS,DISTRIBUTORS

 

 

OPERATIONS

 

Products manufactured

:

FLOUR

Product Brand Name

:

BAKERS CHOICE

Certification of Products

:

1) MS 85:2003

Member(s) / Affiliate(s)

:

MALAYSIA FOOD & BEVERAGE INDUSTRY

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2014

2013

2011

2010

2009

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

170

170

170

170

125

 

Branch

:

YES

Other Information:


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


The Subject is engaged in the flour milling.


The Subject is acknowledged as one of Asia's leading flour millers.



RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA)database, but no latest development was noted in our investigation.

 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-31011998

Match

:

N/A

Address Provided by Client

:

LOT 55711, JALAN TANJUNG, DRY BULK TERMINAL, WEST PORT,42009,PELABUHAN KLANG,SELANGOR.

Current Address

:

LOT 55711, JALAN TANJUNG, DRY BULK TERMINAL, WEST PORT, 42009 PELABUHAN KLANG, 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

[

2008 - 2012

]

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

Return on Shareholder Funds

:

Unfavourable

[

9.98%

]

Return on Net Assets

:

Acceptable

[

14.47%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players. The Subject's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Unfavourable

[

86 Days

]

Debtor Ratio

:

Acceptable

[

63 Days

]

Creditors Ratio

:

Favourable

[

3 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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

:

Acceptable

[

0.83 Times

]

Current Ratio

:

Unfavourable

[

1.40 Times

]

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Acceptable

[

4.24 Times

]

Gearing Ratio

:

Acceptable

[

0.99 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's gearing was slightly high. The Subject is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the Subject. It will be more vulnerable in times of economy downturn.

Overall Assessment :

The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all 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's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the Subject's performance may deteriorate in the coming year.

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

10613 : Flour milling

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 1994, the Subject is a Private Limited company, focusing on manufacturing of flour. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.


Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 170 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.


The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. The gearing level of the Subject is slightly high, therefore it faces moderate financial risk. Given a positive net worth standing at MYR 126,897,273, 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)

PRESTASI FLOUR MILL (M) 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

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

319,715,862

326,720,630

238,592,903

240,024,869

269,338,311

Other Income

3,947,011

3,547,069

2,153,503

3,121,993

1,698,129

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

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

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

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

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

Total Turnover

323,662,873

330,267,699

240,746,406

243,146,862

271,036,440

Costs of Goods Sold

(285,020,911)

(280,102,948)

(191,865,089)

(192,582,943)

(236,634,218)

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

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

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

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

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

Gross Profit

38,641,962

50,164,751

48,881,317

50,563,919

34,402,222

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

15,876,732

30,073,513

31,121,650

35,012,672

15,564,758

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

15,876,732

30,073,513

31,121,650

35,012,672

15,564,758

Taxation

(3,217,119)

(3,867,874)

(7,744,697)

(9,473,067)

(4,669,551)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

12,659,613

26,205,639

23,376,953

25,539,605

10,895,207

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

62,537,660

35,470,950

18,550,033

(6,989,572)

(17,884,779)

Prior year adjustment

-

13,269,071

-

-

-

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

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

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

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

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

As restated

62,537,660

48,740,021

18,550,033

(6,989,572)

(17,884,779)

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

75,197,273

74,945,660

41,926,986

18,550,033

(6,989,572)

DIVIDENDS - Ordinary (paid & proposed)

-

(12,408,000)

(6,456,036)

-

-

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

75,197,273

62,537,660

35,470,950

18,550,033

(6,989,572)

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

914

3,460

13,868

49,344

101,480

Bankers' acceptance

3,522,282

3,710,389

1,487,754

-

2,106,605

Hire purchase

11,474

5,602

-

-

-

Term loan / Borrowing

1,365,703

865,788

1,199

163,372

295,802

Others

-

-

38,779

1,196,196

9,247

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

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

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

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

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

4,900,373

4,585,239

1,541,600

1,408,912

2,513,134

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

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

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

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

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

 

 

 

 

BALANCE SHEET

 

 

PRESTASI FLOUR MILL (M) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

86,812,300

92,382,516

91,466,846

62,063,075

59,675,758

Investment properties

3,637,055

3,949,778

4,262,501

4,575,224

4,375,272

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

3,637,055

3,949,778

4,262,501

4,575,224

4,375,272

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

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

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

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

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

TOTAL LONG TERM ASSETS

90,449,355

96,332,294

95,729,347

66,638,299

64,051,030

Stocks

75,651,600

66,200,232

52,124,964

48,315,197

60,907,476

Trade debtors

54,764,581

62,897,629

40,990,936

34,573,465

35,453,194

Other debtors, deposits & prepayments

4,605,292

3,096,283

3,240,228

1,946,351

4,043,353

Amount due from holding company

6,051,441

6,040,724

25,437

-

-

Amount due from related companies

12,391,071

11,164,107

2,314,012

699,115

-

Cash & bank balances

33,818,558

12,013,464

5,826,176

15,968,433

6,590,776

Others

-

2,823,363

1,210,654

-

13,910

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

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

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

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

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

TOTAL CURRENT ASSETS

187,282,543

164,235,802

105,732,407

101,502,561

107,008,709

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

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

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

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

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

TOTAL ASSET

277,731,898

260,568,096

201,461,754

168,140,860

171,059,739

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

1,988,881

1,060,449

3,280,629

900,716

562,867

Other creditors & accruals

14,255,403

15,630,546

14,908,612

8,379,118

9,808,594

Hire purchase & lease creditors

38,779

35,998

-

-

-

Short term borrowings/Term loans

5,833,332

6,000,000

-

-

4,000,000

Bill & acceptances payable

110,560,000

100,930,000

69,097,000

15,000,000

36,599,000

Amounts owing to holding company

-

-

-

193,018

-

Amounts owing to related companies

991,279

125,720

5,193,528

52,021,668

64,967,068

Provision for taxation

508,612

-

-

3,081,236

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

134,176,286

123,782,713

92,479,769

79,575,756

115,937,529

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

53,106,257

40,453,089

13,252,638

21,926,805

(8,928,820)

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

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

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

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

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

TOTAL NET ASSETS

143,555,612

136,785,383

108,981,985

88,565,104

55,122,210

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

51,700,000

51,700,000

51,700,000

51,700,000

31,900,000

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

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

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

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

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

TOTAL SHARE CAPITAL

51,700,000

51,700,000

51,700,000

51,700,000

31,900,000

Revaluation reserve

-

-

13,269,071

13,269,071

12,440,266

Retained profit/(loss) carried forward

75,197,273

62,537,660

35,470,950

18,550,033

(6,989,572)

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

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

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

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

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

TOTAL RESERVES

75,197,273

62,537,660

48,740,021

31,819,104

5,450,694

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

126,897,273

114,237,660

100,440,021

83,519,104

37,350,694

Long term loans

9,073,126

14,463,851

-

-

1,001,445

Lease obligations

113,045

151,824

-

-

-

Deferred taxation

7,472,168

7,932,048

8,541,964

5,046,000

2,717,000

Others

-

-

-

-

14,053,071

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

16,658,339

22,547,723

8,541,964

5,046,000

17,771,516

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

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

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

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

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

143,555,612

136,785,383

108,981,985

88,565,104

55,122,210

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

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

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

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

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

 

 

 

 

FINANCIAL RATIO

 

 

PRESTASI FLOUR MILL (M) SDN. BHD.

 

TYPES OF FUNDS

Cash

33,818,558

12,013,464

5,826,176

15,968,433

6,590,776

Net Liquid Funds

(76,741,442)

(88,916,536)

(63,270,824)

968,433

(30,008,224)

Net Liquid Assets

(22,545,343)

(25,747,143)

(38,872,326)

(26,388,392)

(69,836,296)

Net Current Assets/(Liabilities)

53,106,257

40,453,089

13,252,638

21,926,805

(8,928,820)

Net Tangible Assets

143,555,612

136,785,383

108,981,985

88,565,104

55,122,210

Net Monetary Assets

(39,203,682)

(48,294,866)

(47,414,290)

(31,434,392)

(87,607,812)

BALANCE SHEET ITEMS

Total Borrowings

125,618,282

121,581,673

69,097,000

15,000,000

41,600,445

Total Liabilities

150,834,625

146,330,436

101,021,733

84,621,756

133,709,045

Total Assets

277,731,898

260,568,096

201,461,754

168,140,860

171,059,739

Net Assets

143,555,612

136,785,383

108,981,985

88,565,104

55,122,210

Net Assets Backing

126,897,273

114,237,660

100,440,021

83,519,104

37,350,694

Shareholders' Funds

126,897,273

114,237,660

100,440,021

83,519,104

37,350,694

Total Share Capital

51,700,000

51,700,000

51,700,000

51,700,000

31,900,000

Total Reserves

75,197,273

62,537,660

48,740,021

31,819,104

5,450,694

LIQUIDITY (Times)

Cash Ratio

0.25

0.10

0.06

0.20

0.06

Liquid Ratio

0.83

0.79

0.58

0.67

0.40

Current Ratio

1.40

1.33

1.14

1.28

0.92

WORKING CAPITAL CONTROL (Days)

Stock Ratio

86

74

80

73

83

Debtors Ratio

63

70

63

53

48

Creditors Ratio

3

1

6

2

1

SOLVENCY RATIOS (Times)

Gearing Ratio

0.99

1.06

0.69

0.18

1.11

Liabilities Ratio

1.19

1.28

1.01

1.01

3.58

Times Interest Earned Ratio

4.24

7.56

21.19

25.85

7.19

Assets Backing Ratio

2.78

2.65

2.11

1.71

1.73

PERFORMANCE RATIO (%)

Operating Profit Margin

4.97

9.20

13.04

14.59

5.78

Net Profit Margin

3.96

8.02

9.80

10.64

4.05

Return On Net Assets

14.47

25.34

29.97

41.12

32.80

Return On Capital Employed

14.47

25.33

29.97

41.12

32.80

Return On Shareholders' Funds/Equity

9.98

22.94

23.27

30.58

29.17

Dividend Pay Out Ratio (Times)

0.00

0.47

0.28

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. 59.72

UK Pound

1

Rs. 102.45

Euro

1

Rs. 81.54

 

 

INFORMATION DETAILS

 

Analysis Done by :

RSM

 

 

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.