MIRA INFORM REPORT

 

 

Report Date :

29.07.2014

 

IDENTIFICATION DETAILS

 

Name :

STERIPACK ASIA SDN. BHD.

 

 

Registered Office :

Upper Penthouse, Wisma Rakyat, 2, Jalan Raja Abdullah, Off Jalan Sultan Ismail, 50300 Kuala Lumpur, Wilayah Persekutuan,

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

24.09.2007

 

 

Com. Reg. No.:

789482-W

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing and trading of medical device and medical packaging products

 

 

No. of Employees

45 [2014]

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow

Litigation :

Clear

 

NOTES :

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

 

 

ECGC Country Risk Classification List – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 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

 

 

 


Company name and address

 

 

REGISTRATION NO.

:

789482-W

COMPANY NAME

:

STERIPACK ASIA SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

24/09/2007

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

UPPER PENTHOUSE, WISMA RAKYAT, 2, JALAN RAJA ABDULLAH, OFF JALAN SULTAN ISMAIL, 50300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 119992, JALAN CANANG EMAS 8, TELOK GONG, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31673596

FAX.NO.

:

03-31673597

CONTACT PERSON

:

JOHN MICHAEL WARD ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

32500

PRINCIPAL ACTIVITY

:

MANUFACTURING AND TRADING OF MEDICAL DEVICE AND MEDICAL PACKAGING PRODUCTS

AUTHORISED CAPITAL

:

MYR 25,000,000.00 DIVIDED INTO
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 25,000,000.00 DIVIDED INTO
ORDINARY SHARES 140,002 CASH AND 24,859,998 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 17,533,652 [2013]

NET WORTH

:

MYR 4,272,959 [2013]

 

 

 

STAFF STRENGTH

:

45 [2014]

BANKER (S)

:

CIMB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

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 and trading of medical device and medical packaging products.

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

 

The immediate holding company of the Subject is STERIPACK LTD, a company incorporated in IRELAND.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/03/2013

MYR 25,000,000.00

MYR 25,000,000.00

11/09/2011

MYR 25,000,000.00

MYR 8,240,000.00

30/09/2009

MYR 25,000,000.00

MYR 8,140,000.00

26/12/2008

MYR 25,000,000.00

MYR 8,000,000.00

29/08/2008

MYR 25,000,000.00

MYR 5,360,000.00

18/07/2008

MYR 25,000,000.00

MYR 2,860,000.00

30/06/2008

MYR 25,000,000.00

MYR 360,002.00

24/09/2007

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

(%)

JOHN MICHAEL WARD +

10, JALAN 7/1, TROPICANA GOLF & COUNTRY CLUB, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

LB0045489

140,000.00

0.56

GARETT MOORE +

KILPATRICK MULLINGAR, WESTMEATH, IRELAND.

P323037

1.00

0.00

STERIPACK LTD

CLARA, CO. OFFALY, IRELAND.

214158

24,859,999.00

99.44

 

 

 

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

------

 

 

 

25,000,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

STEVEN JOHN MARTIN

Address

:

18, JALAN TR 9/6, GREEN ACRESS 2, TROPICANA GOLF & COUNTRY RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

090028791

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

17/11/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. KOH CHIEK KEY

Address

:

70-2, BLOCK J, RAMPAI COURT, TAMAN SRI RAMPAI, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A1626583

New IC No

:

700815-05-5107

Date of Birth

:

15/08/1970

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

30/09/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

AIDAN MICHAEL O'BRIEN

Address

:

CARTRONAGEERAGH, LONGFORD, IRELAND.

IC / PP No

:

P348044

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

24/09/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

GARETT MOORE

Address

:

KILPATRICK MULLINGAR, WESTMEATH, IRELAND.

IC / PP No

:

P323037

 

 

 

 

 

 

 

 

 

Nationality

:

IRISH

Date of Appointment

:

24/09/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

JOHN MICHAEL WARD

Address

:

10, JALAN 7/1, TROPICANA GOLF & COUNTRY CLUB, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

LB0045489

 

 

 

 

 

 

 

 

 

Nationality

:

IRISH

Date of Appointment

:

17/11/2008

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

JOHN MICHAEL WARD

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

KOH CHIEK KEY

 

Position

:

FINANCE & ADMIN DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

IVENE

 

Position

:

ADMIN & HUMAN RESOURCE MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

RSM ROBERT TEO,KUAN & CO.

Auditor' Address

:

WISMA RKT, BLOCK A, 2, JALAN RAJA ABDULLAH, OFF JALAN SULTAN ISMAIL, 2ND FLOOR, 50300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. WOO CHOOI YOKE

 

IC / PP No

:

6807051

 

New IC No

:

620517-10-6172

 

Address

:

7, JALAN IKHLAS 2, TAMAN IKHLAS, BANDAR SUNGAI LONG, 43000 KAJANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. ENG BEE HONG

 

IC / PP No

:

8254998

 

New IC No

:

570809-71-5006

 

Address

:

15, JALAN ANGGERIK ERIA 31/104A, KOTA KEMUNING, SEKSYEN 31, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

 

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

01/12/2008

GENERAL FACILITY AGREEMENT & DEBENTURE

CIMB BANK BERHAD

MYR 12,007,320.00

Unsatisfied

2

01/12/2008

GENERAL FACILITY AGREEMENT & MEMORANDUM

CIMB BANK BERHAD

MYR 12,007,320.00

Unsatisfied

3

17/07/2013

GENERAL FACILITY AGREEMENT

CIMB BANK BERHAD

-

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

 

 

 


The Subject refused to disclosed its suppliers country and percentage.

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

HOSPITALS,PHARMACIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

MEDICAL DEVICE AND MEDICAL PACKAGING PRODUCTS

 

 

 

Competitor(s)

:

B.BRAUN MEDICAL INDUSTRIES SDN BHD
BEMIS ASIA PACIFIC SDN BHD
MEDITOP CORPORATION (MALAYSIA) SDN BHD
SCIENTILLENCE SDN BHD
THE LARYNGEAL MASK COMPANY (MALAYSIA) SDN BHD

 

 

 

 

 

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2013

2011

2010

 


GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

45

45

45

30

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


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

The Subject is one of the company listed under STERIPACKGROUP of companies.

The Subject is a leading global supplier of cleanroom sterilised packaging solutions for the Medical Device Industry offering a one stop solution for Medical Device companies looking to have their products assembled, packaged, sterilised and tested all under one roof.

The Subject undertakes the following business operations:

* Flexible medical packaging

* Contract engineering

* Contract manufacturing services

* Package testing


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-31673596

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 119982 JALAN CANANG EMAS 8 TELOK GONG 42000 KLANG SELANGOR

MALAYSIA

Current Address

:

LOT 119992, JALAN CANANG EMAS 8, TELOK GONG, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

 

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

We were unable to verify the address provided as it is incomplete.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Unfavourable

[

(107.18%)

]

 

Return on Net Assets

:

Unfavourable

[

(27.49%)

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.Higher losses before tax during the year could be due to the higher operating costs incurred. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

92 Days

]

 

Debtor Ratio

:

Acceptable

[

55 Days

]

 

Creditors Ratio

:

Favourable

[

39 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

:

Unfavourable

[

0.24 Times

]

 

Current Ratio

:

Unfavourable

[

0.48 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

(4.14 Times)

]

 

Gearing Ratio

:

Unfavourable

[

2.36 Times

]

 

 

 

 

 

 

 

 

The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the Subject's turnover increased its profits however showed a reverse trend. The losses could be due to the management's failure to maintain its competitiveness in the market. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. The Subject's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the Subject : POOR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 

 

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 



INDUSTRY ANALYSIS

 

MSIC CODE

32500 : Manufacture of medical and dental instrument and supplies

 

 

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 2007, the Subject is a Private Limited company, focusing on manufacturing and trading of medical device and medical packaging products. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. Having strong support from its holding company 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 operating on a medium scale and it has approximately 45 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.

Despite the higher turnover, the Subject suffered pre-tax losses which reflected a highly competitive business environment. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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. Given a positive net worth standing at MYR 4,272,959, the Subject should be able to maintain its business in the near terms.

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth . 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.

In view of its poor financial condition, we only recommend credit be proceeded to the Subject with guarantee.

 



PROFIT AND LOSS ACCOUNT

 

 

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

STERIPACK ASIA SDN. BHD.

 

Financial Year End

2013-09-30

2012-09-30

2011-09-30

2010-09-30

2009-09-30

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

17,533,652

14,545,908

6,211,949

5,218,770

3,516,464

Other Income

185,628

421,693

3,124

632,248

-

 

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

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

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

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

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

Total Turnover

17,719,280

14,967,601

6,215,073

5,851,018

3,516,464

Costs of Goods Sold

(10,626,858)

(9,237,713)

(3,944,832)

(3,213,695)

(2,882,454)

 

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

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

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

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

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

Gross Profit

7,092,422

5,729,888

2,270,241

2,637,323

634,010

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

(4,579,769)

(2,221,082)

(3,863,785)

(3,667,118)

(4,922,098)

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

(4,579,769)

(2,221,082)

(3,863,785)

(3,667,118)

(4,922,098)

Taxation

-

0

0

0

0

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(4,579,769)

(2,221,082)

(3,863,785)

(3,667,118)

(4,922,098)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

(16,662,472)

(14,441,390)

(10,577,605)

(6,910,487)

(1,988,389)

 

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

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

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

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

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

As restated

(16,662,472)

(14,441,390)

(10,577,605)

(6,910,487)

(1,988,389)

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(21,242,241)

(16,662,472)

(14,441,390)

(10,577,605)

(6,910,487)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(21,242,241)

(16,662,472)

(14,441,390)

(10,577,605)

(6,910,487)

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

891,385

542,272

-

-

-

 

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

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

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

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

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

 

891,385

542,272

-

-

-

 

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

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

 

 

 

 

BALANCE SHEET

 

STERIPACK ASIA SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

22,747,425

20,961,635

21,614,176

20,965,231

19,827,565

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Deferred/Expenditure carried forward

-

-

206,966

-

-

Others

103,483

172,472

-

-

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

103,483

172,472

206,966

-

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

22,850,908

21,134,107

21,821,142

20,965,231

19,827,565

 

 

 

 

 

 

Stocks

4,406,175

3,955,133

2,362,775

1,430,641

739,219

Trade debtors

2,656,773

2,132,196

851,831

1,077,190

421,833

Other debtors, deposits & prepayments

604,326

1,052,226

746,022

377,106

919,335

Short term deposits

109,999

109,999

106,795

104,191

100,960

Amount due from holding company

-

369,057

366,995

358,607

435,456

Amount due from related companies

-

100,700

-

-

-

Cash & bank balances

962,997

828,952

247,441

421,741

185,987

Others

-

-

1,300

1,300

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

8,740,270

8,548,263

4,683,159

3,770,776

2,802,790

 

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

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

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

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

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

TOTAL ASSET

31,591,178

29,682,370

26,504,301

24,736,007

22,630,355

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

1,128,988

1,193,724

473,636

459,348

107,280

Other creditors & accruals

1,647,294

571,327

600,117

493,694

1,297,889

Hire purchase & lease creditors

157,838

590,423

552,527

517,065

483,879

Bank overdraft

-

-

-

333,159

172,910

Short term borrowings/Term loans

770,180

733,577

738,586

727,373

763,843

Amounts owing to holding company

14,469,845

9,263,674

20,067,673

13,122,728

5,849,986

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

18,174,145

12,352,725

22,432,539

15,653,367

8,675,787

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

(9,433,875)

(3,804,462)

(17,749,380)

(11,882,591)

(5,872,997)

 

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

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

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

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

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

TOTAL NET ASSETS

13,417,033

17,329,645

4,071,762

9,082,640

13,954,568

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

25,000,000

25,000,000

8,240,000

8,140,000

8,140,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

25,000,000

25,000,000

8,240,000

8,140,000

8,140,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

515,200

515,200

515,200

515,200

515,200

Retained profit/(loss) carried forward

(21,242,241)

(16,662,472)

(14,441,390)

(10,577,605)

(6,910,487)

 

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

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

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

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

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

TOTAL RESERVES

(20,727,041)

(16,147,272)

(13,926,190)

(10,062,405)

(6,395,287)

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

4,272,959

8,852,728

(5,686,190)

(1,922,405)

1,744,713

 

 

 

 

 

 

Long term loans

8,925,629

8,374,032

9,065,426

9,759,991

10,447,736

Hire purchase creditors

218,445

102,885

692,526

1,245,054

1,762,119

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

9,144,074

8,476,917

9,757,952

11,005,045

12,209,855

 

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

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

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

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

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

 

13,417,033

17,329,645

4,071,762

9,082,640

13,954,568

 

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

STERIPACK ASIA SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

1,072,996

938,951

354,236

525,932

286,947

Net Liquid Funds

1,072,996

938,951

354,236

192,773

114,037

Net Liquid Assets

(13,840,050)

(7,759,595)

(20,112,155)

(13,313,232)

(6,612,216)

Net Current Assets/(Liabilities)

(9,433,875)

(3,804,462)

(17,749,380)

(11,882,591)

(5,872,997)

Net Tangible Assets

13,313,550

17,157,173

3,864,796

9,082,640

13,954,568

Net Monetary Assets

(22,984,124)

(16,236,512)

(29,870,107)

(24,318,277)

(18,822,071)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

10,072,092

9,800,917

11,049,065

12,582,642

13,630,487

Total Liabilities

27,318,219

20,829,642

32,190,491

26,658,412

20,885,642

Total Assets

31,591,178

29,682,370

26,504,301

24,736,007

22,630,355

Net Assets

13,417,033

17,329,645

4,071,762

9,082,640

13,954,568

Net Assets Backing

4,272,959

8,852,728

(5,686,190)

(1,922,405)

1,744,713

Shareholders' Funds

4,272,959

8,852,728

(5,686,190)

(1,922,405)

1,744,713

Total Share Capital

25,000,000

25,000,000

8,240,000

8,140,000

8,140,000

Total Reserves

(20,727,041)

(16,147,272)

(13,926,190)

(10,062,405)

(6,395,287)

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.06

0.08

0.02

0.03

0.03

Liquid Ratio

0.24

0.37

0.10

0.15

0.24

Current Ratio

0.48

0.69

0.21

0.24

0.32

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

92

99

139

100

77

Debtors Ratio

55

54

50

75

44

Creditors Ratio

39

47

44

52

14

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

2.36

1.11

(1.94)

(6.55)

7.81

Liabilities Ratio

6.39

2.35

(5.66)

(13.87)

11.97

Times Interest Earned Ratio

(4.14)

(3.10)

0.00

0.00

0.00

Assets Backing Ratio

0.53

0.69

0.47

1.12

1.71

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

(26.12)

(15.27)

(62.20)

(70.27)

(139.97)

Net Profit Margin

(26.12)

(15.27)

(62.20)

(70.27)

(139.97)

Return On Net Assets

(27.49)

(9.69)

(94.89)

(40.38)

(35.27)

Return On Capital Employed

(26.97)

(9.28)

(79.97)

(36.92)

(33.69)

Return On Shareholders' Funds/Equity

(107.18)

(25.09)

67.95

190.76

(282.12)

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.60.10

UK Pound

1

Rs.102.04

Euro

1

Rs.80.74

 

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.