MIRA INFORM REPORT

 

 

Report Date :

11.07.2014

 

IDENTIFICATION DETAILS

 

Name :

BIOCON SDN. BHD.

 

 

Registered Office :

Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, Level 7, 50490 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

19.01.2011

 

 

Date of Incorporation :

31.03.2013

 

 

Com. Reg. No.:

930330-U

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Pharmaceuticals and Medical Products

 

 

No. of Employees

150

 

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 – 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 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.

:

930330-U

COMPANY NAME

:

BIOCON SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

19/01/2011

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, DAMANSARA HEIGHTS, LEVEL 7, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

NO.1, JALAN BIOTEKNOLOGI 1, KAWASAN PERINDUSTRIAN SILC, 79200 BANDAR NUSAJAYA, JOHOR, MALAYSIA.

TEL.NO.

:

07-5600000

FAX.NO.

:

07-5600050

WEB SITE

:

WWW.BIOCON.COM

CONTACT PERSON

:

KAN MAZUMDAR SHAW ( MANAGING DIRECTOR )

INDUSTRY CODE

:

21007

PRINCIPAL ACTIVITY

:

MANUFACTURING OF PHARMACEUTICALS AND MEDICAL PRODUCTS

AUTHORISED CAPITAL

:

MYR 100,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 10.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 63,373,840.00 DIVIDED INTO
ORDINARY SHARES 6,337,384 CASH OF MYR 10.00 EACH.

SALES

:

N/A

NET WORTH

:

MYR 56,143,815 [2013]

BANKER (S)

 

HSBC BANK MALAYSIA BHD
MALAYAN BANKING BHD
STANDARD CHARTERED BANK

STAFF STRENGTH

:

150 [2014]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

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 of pharmaceuticals and medical products.

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

 

The immediate holding company of the Subject is BIOCON LIMITED, a company incorporated in INDIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

20/09/2013

MYR 100,000,000.00

MYR 63,373,840.00

16/08/2013

MYR 100,000,000.00

MYR 57,440,000.00

15/02/2013

MYR 50,000,000.00

MYR 45,000,000.00

19/01/2011

MYR 50,000,000.00

MYR 30.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

BIOCON LIMITED

20TH KM, HOSUR ROAD, ELECTRONICS CITY, BANGALORE, INDIA.

L24234KA1978PLC00341

6,337,384.00

100.00

 

 

 

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

------

 

 

 

6,337,384.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

KIRAN MAZUMDAR SHAW

Address

:

GLENMORE, HOSKUR GATE, OFF 20TH KM HOSUR ROAD, ELECTRINIC CITY, BANGALORE-560, 100, INDIA.

IC / PP No

:

Z1863599

Nationality

:

INDIAN

Date of Appointment

:

19/01/2011

 

 

 

DIRECTOR 2

 

Name Of Subject

:

JOHN MCCALLUM MARSHALL SHAW

Address

:

GLENMORE, HOSKUR GATE, OFF 20TH KM HOSUR ROAD, ELECTRINIC CITY, BANGALORE-560, 100, INDIA.

IC / PP No

:

761074085

Nationality

:

BRITISH

Date of Appointment

:

19/01/2011

 

DIRECTOR 3

 

Name Of Subject

:

MS. PAN SENG WEE

Address

:

11, JALAN SETIA IMPIAN U13/4N, SETIA ALAM, SEKSYEN U13, 40170 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

A3068483

New IC No

:

750810-10-5510

Date of Birth

:

10/08/1975

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

31/07/2013

 

DIRECTOR 4

 

Name Of Subject

:

MS. CHONG LAI LAI

Address

:

12, JALAN MARGOSA SD 10/5M, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A3333449

New IC No

:

760314-14-5184

Date of Birth

:

14/03/1976

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

01/11/2012

 

DIRECTOR 5

 

Name Of Subject

:

DR ARUN SURESH CHANDAVARKAR

Address

:

376, MALBAR MANSION, 13, MAIN ROAD, KORAMANGALA, 3RD BLOCK, BANGALORE-560, 034, INDIA.

IC / PP No

:

G7929276

Nationality

:

INDIAN

Date of Appointment

:

19/01/2011



MANAGEMENT

 

 

 

1)

Name of Subject

:

KAN MAZUMDAR SHAW

 

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG

Auditor' Address

:

SUITE 11.2, MENARA PELANGI, 2, JALAN KUNING, TAMAN PELANGI, LEVEL 11, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHUA SIEW CHUAN

 

IC / PP No

:

5461293

 

New IC No

:

580826-05-5408

 

Address

:

36, JALAN USJ 5/3, UEP SUBANG JAYA, PETALING JAYA, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. YEOW SZE MIN

 

 

 

 

 

New IC No

:

830105-14-6114

 

Address

:

36, JALAN USJ 5/3, UEP SUBANG JAYA, PETALING JAYA, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

 

3)

Name

:

STANDARD CHARTERED BANK

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

18/05/2011

A CHARGE UNDER THE NATIONAL LAND CODE 1965 DATED 18 MAY 2011 (THE "LAND CHARGE") MADE BETWEEN THE COMPANY AND MAYBANK INVESTMENT BANK BERHAD ("SECURITY AGENT")

MAYBANK INVESTMENT BANK BERHAD

MYR 130,000,000.00

Unsatisfied

2

18/05/2011

A DEBENTURE DATED 18 MAY 2011 & AN ACCOUNTS ASSIGNMENT DATED 18 MAY 2011 & AN INSURANCE ASSIGNMENT DATED 18 MAY 2011

MAYBANK INVESTMENT BANK BERHAD

MYR 130,000,000.00

Unsatisfied

 

 

LEGAL CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


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

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



PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES



CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

 

 

 

Export Market

:

WORLDWIDE

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

PHARMACEUTICALS AND MEDICAL PRODUCTS

 

 

 

 

Total Number of Employees:

YEAR

2014

2013

 

GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

150

140

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of pharmaceuticals and medical products.

Biocon's bio-pharma manufacturing and research facility located within a 40 acre compound, at Bio-XCell, Johor in Malaysia, the new regional biotech hub of Asia that offers a state-of-the-art biotechnology ecosystem.

The facility is the largest integrated insulins production plant in Asia, with an investment of over USD 160 million, the largest foreign investment in this sector in Malaysia.


Biocon has been recognized as an Entry Point Project (EPP) by the Govt. of Malaysia and is expected to play a major role in the government's economic transformation program.


Biocon is the largest Indian Insulins Company and is credited with developing the world's first Pichia-based recombinant human Insulin, INSUGEN®. It provides insulins in over 30 countries.


Biocon's Malaysia facility will further augment its capabilities to cater to the global needs of diabetic patients for affordable insulin and insulin analogs.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

07-5600000

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 1, JALAN BIOTEKNOLOGI 1, KAWASAN PERINDUSTRIAN SILC, 79200, NUSAJAYA, JOHOR, 79200,

Current Address

:

NO.1, JALAN BIOTEKNOLOGI 1, KAWASAN PERINDUSTRIAN SILC, 79200 BANDAR NUSAJAYA, JOHOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The Subject refused to comment anything regarding its nil turnover.



FINANCIAL ANALYSIS

 

 

Overall Assessment :

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 is in good liquidity position with its current liabilities well covered by it current assets. Unfortunately, the high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk.

 

 

 

 

 

 

 

Overall financial condition of the Subject : LIMITED

 

 

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

 

 

 

 

 



INDUSTRY ANALYSIS

 

MSIC CODE

21007 : Manufacture of biotech pharmaceuticals

 

 

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 domesticoriented 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 sevenmonths of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domesticoriented 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 goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment 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 2011, the Subject is a Private Limited company, focusing on manufacturing of pharmaceuticals and medical products. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. Having strong support from its shareholder has enabled the Subject to remain competitive despite the challenging business environment.


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 150 staff in its operations. Overall, we regard that the Subject's management capability is average.


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 is in good liquidity position with its current liabilities well covered by it current assets. Unfortunately, the high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk.

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.


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. Nonetheless, the Subject should adopt better competitive strategies in order to sustain its business position and to compete with other well established players in the same industry.


In view of the above, we recommend credit be granted to the Subject with close monitoring.

 



 

PROFIT AND LOSS ACCOUNT

 

 

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

BIOCON SDN. BHD.

 

Financial Year End

2013-03-31

2012-03-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

 

 

 

TURNOVER

0

0

Other Income

95,594

62,120

 

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

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

Total Turnover

95,594

62,120

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

(1,017,622)

(278,563)

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

(1,017,622)

(278,563)

 

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

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

PROFIT/(LOSS) AFTER TAXATION

(1,017,622)

(278,563)

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

(278,563)

-

 

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

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

As restated

(278,563)

-

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(1,296,185)

(278,563)

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(1,296,185)

(278,563)

 

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

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

 

 

 

Others

91,500

236

 

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

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

 

91,500

236

 

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

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

 

 

BALANCE SHEET

 

 

BIOCON SDN. BHD.

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

127,583,010

52,716,591

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

127,583,010

52,716,591

 

 

 

Other debtors, deposits & prepayments

38,992,797

14,757,054

Short term deposits

-

4,500,000

Cash & bank balances

6,411,323

5,275,527

 

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

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

TOTAL CURRENT ASSETS

45,404,120

24,532,581

 

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

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

TOTAL ASSET

172,987,130

77,249,172

 

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

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

 

 

 

Other creditors & accruals

42,402,738

26,177,658

 

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

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

TOTAL CURRENT LIABILITIES

42,402,738

26,177,658

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

3,001,382

(1,645,077)

 

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

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

TOTAL NET ASSETS

130,584,392

51,071,514

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

57,440,000

45,000,000

 

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

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

TOTAL SHARE CAPITAL

57,440,000

45,000,000

 

 

 

Retained profit/(loss) carried forward

(1,296,185)

(278,563)

 

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

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

TOTAL RESERVES

(1,296,185)

(278,563)

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

56,143,815

44,721,437

 

 

 

Long term loans

71,150,500

3,060,000

Others

3,290,077

3,290,077

 

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

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

TOTAL LONG TERM LIABILITIES

74,440,577

6,350,077

 

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

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

 

130,584,392

51,071,514

 

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

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

 

 

 

 

 

 

FINANCIAL RATIO

 

 

BIOCON SDN. BHD.

 

TYPES OF FUNDS

 

 

Cash

6,411,323

9,775,527

Net Liquid Funds

6,411,323

9,775,527

Net Liquid Assets

3,001,382

(1,645,077)

Net Current Assets/(Liabilities)

3,001,382

(1,645,077)

Net Tangible Assets

130,584,392

51,071,514

Net Monetary Assets

(71,439,195)

(7,995,154)

BALANCE SHEET ITEMS

 

 

Total Borrowings

71,150,500

3,060,000

Total Liabilities

116,843,315

32,527,735

Total Assets

172,987,130

77,249,172

Net Assets

130,584,392

51,071,514

Net Assets Backing

56,143,815

44,721,437

Shareholders' Funds

56,143,815

44,721,437

Total Share Capital

57,440,000

45,000,000

Total Reserves

(1,296,185)

(278,563)

LIQUIDITY (Times)

 

 

Cash Ratio

0.15

0.37

Liquid Ratio

1.07

0.94

Current Ratio

1.07

0.94

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

0

0

Debtors Ratio

0

0

Creditors Ratio

0

0

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

1.27

0.07

Liabilities Ratio

2.08

0.73

Times Interest Earned Ratio

(10.12)

(1,179.35)

Assets Backing Ratio

2.27

1.13

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

0.00

0.00

Net Profit Margin

0.00

0.00

Return On Net Assets

(0.71)

(0.54)

Return On Capital Employed

(0.71)

(0.54)

Return On Shareholders' Funds/Equity

(1.81)

(0.62)

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.88

UK Pound

1

Rs.102.59

Euro

1

Rs.81.69

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

NIS

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

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

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.