|
Report Date : |
06.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
RECRON (MALAYSIA)
SDN. BHD. |
|
|
|
|
Formerly Known As : |
REAL AIM DEVELOPMENT SDN BHD |
|
|
|
|
Registered Office : |
Suite 7.01 - 7.03, Wisma Goldhill, 67, Jalan Raja Chulan,
Level 7, 50200 Kuala Lumpur, Wilayah Persekutuan, |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
20.07.2007 |
|
|
|
|
Com. Reg. No.: |
781769-K |
|
|
|
|
Legal Form : |
Private Limited (Limited By Share) |
|
|
|
|
Line of Business : |
Manufacturing of textiles and fibre products |
|
|
|
|
No. of Employees |
7500 [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 : |
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 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 |
|
REGISTRATION NO. |
: |
781769-K |
||||
|
COMPANY NAME |
: |
RECRON (MALAYSIA) SDN. BHD. |
||||
|
FORMER NAME |
: |
REAL AIM DEVELOPMENT SDN BHD (20/08/2007) |
||||
|
INCORPORATION DATE |
: |
20/07/2007 |
||||
|
COMPANY STATUS |
: |
EXIST |
||||
|
LEGAL FORM |
: |
PRIVATE LIMITED (LIMITED BY SHARE) |
||||
|
LISTED STATUS |
: |
NO |
||||
|
REGISTERED ADDRESS |
: |
SUITE 7.01 - 7.03, WISMA GOLDHILL, 67, JALAN RAJA CHULAN, LEVEL 7, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
||||
|
BUSINESS ADDRESS |
: |
WISMA GOLDHILL, 67, JALAN RAJA CHULAN, LEVEL 7, LEVEL 8 & LEVEL 9, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
||||
|
TEL.NO. |
: |
03-20316000 |
||||
|
FAX.NO. |
: |
03-20315000 |
||||
|
WEB SITE |
: |
WWW.RECRONMALAYSIA.COM |
||||
|
CONTACT PERSON |
: |
LAM SOON HOCK ( ADMIN MANAGER ) |
||||
|
INDUSTRY CODE |
: |
13990 |
||||
|
PRINCIPAL ACTIVITY |
: |
MANUFACTURING OF TEXTILES AND FIBRE PRODUCTS |
||||
|
AUTHORISED CAPITAL |
: |
MYR 350,000,000.00
DIVIDED INTO |
||||
|
ISSUED AND PAID UP CAPITAL |
: |
MYR 113,187,500.00
DIVIDED INTO |
||||
|
SALES |
: |
MYR 3,106,020,000 [2012] |
||||
|
NET WORTH |
: |
MYR 836,970,000 [2012] |
||||
|
M1000 OVERALL RANKING |
: |
135[2011] |
||||
|
M1000 INDUSTRY RANKING |
: |
1[2011] |
||||
|
STAFF STRENGTH |
: |
7500 [2014] |
||||
|
||||||
|
LITIGATION |
: |
CLEAR |
||||
|
DEFAULTER CHECK |
: |
CLEAR |
||||
|
FINANCIAL CONDITION |
: |
POOR |
||||
|
PAYMENT |
: |
AVERAGE |
||||
|
MANAGEMENT CAPABILITY |
: |
AVERAGE |
||||
|
COMMERCIAL RISK |
: |
LOW |
||||
|
CURRENCY EXPOSURE |
: |
HIGH |
||||
|
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 textiles and fibre products.
The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).
|
According to the Malaysia 1000 publication, the Subject's ranking are as follows: |
|||
|
YEAR |
2011 |
||
|
OVERALL RANKING |
135 |
||
|
INDUSTRY RANKING |
1 |
||
The immediate holding company of the Subject is RELIANCE GLOBAL BUSINESS B.V., a company incorporated in NETHERLANDS.
The ultimate holding company of the Subject is RELIANCE INDUSTRIES LIMITED, a company incorporated in INDIA.
Share Capital History
|
Date |
Authorised Shared Capital |
Issue & Paid Up Capital |
|
15/11/2013 |
MYR 350,000,000.00 |
MYR 113,187,500.00 |
|
11/10/2013 |
MYR 350,000,000.00 |
MYR 2,500,000.00 |
|
20/09/2013 |
MYR 200,000,000.00 |
MYR 2,500,000.00 |
|
22/03/2008 |
MYR 50,000,000.00 |
MYR 2,500,000.00 |
|
28/08/2007 |
MYR 100,000.00 |
MYR 100,000.00 |
|
20/07/2007 |
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 |
(%) |
|
RELIANCE GLOBAL BUSINESS B.V. |
SOPHIALAAN 1A, 2514 JP, THE HAGUE, NETHERLANDS. |
RGB781769 |
113,187,500.00 |
100.00 |
|
--------------- |
------ |
|||
|
113,187,500.00 |
100.00 |
|||
|
============ |
===== |
+ Also Director
DIRECTORS |
DIRECTOR 1
|
Name Of Subject |
: |
JAIN PRAVEEN KUMAR |
|
Address |
: |
UNIT A-17-3, MONT KIARA MERIDIN, 19, JALAN DUTA, KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
IC / PP No |
: |
Z1808929 |
|
Nationality |
: |
INDIAN |
|
Date of Appointment |
: |
22/08/2007 |
DIRECTOR 2
|
Name Of Subject |
: |
MR. KULKARNI VINAY RAMCHANDRA |
|
Address |
: |
2-2, PUTRI YKS CONDOMINIUM, 41, JALAN YAP KWAN SENG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
IC / PP No |
: |
501336910 |
|
Nationality |
: |
BRITISH |
|
Date of Appointment |
: |
26/04/2011 |
DIRECTOR 3
|
Name Of Subject |
: |
UDESHI RAJEN DWARKADAS |
|
Address |
: |
502, SHANTI APARTMENTS, 98, WALKESHWAR ROAD, BOMBAY-400 006, INDIA. |
|
IC / PP No |
: |
Z21705096 |
|
Nationality |
: |
INDIAN |
|
Date of Appointment |
: |
22/08/2007 |
DIRECTOR 4
|
Name Of Subject |
: |
MAN MOHAN |
|
Address |
: |
41, BAKHTAWAR ANNEXE, 22, NARAYAN DABHOLKAR ROAD, MALABAR HILL, BOMBAY-400 006, INDIA. |
|
IC / PP No |
: |
Z1777776 |
|
Nationality |
: |
INDIAN |
|
Date of Appointment |
: |
22/08/2007 |
DIRECTOR 5
|
Name Of Subject |
: |
ANIL KUMAR RAJBANSHI |
|
Address |
: |
A-402, CHAITANYA TOWERS, APPASAHAB MARATHE, MARG, PRABHADEVI, MUMBAI-40002, INDIA. |
|
IC / PP No |
: |
Z1877333 |
|
Nationality |
: |
INDIAN |
|
Date of Appointment |
: |
05/02/2008 |
MANAGEMENT |
|
1) |
Name of Subject |
: |
LAM SOON HOCK |
|
Position |
: |
ADMIN MANAGER |
|
|
2) |
Name of Subject |
: |
SENGUPTA |
|
Position |
: |
FINANCE MANAGER |
|
|
3) |
Name of Subject |
: |
YOONG YIEN PING |
|
Position |
: |
ASSISTANT FINANCE MANAGER |
|
|
4) |
Name of Subject |
: |
AMIT DAMANI |
|
Position |
: |
MARKETING MANAGER |
|
|
5) |
Name of Subject |
: |
WONG YEN CHI |
|
Position |
: |
HUMAN RESOURCE MANAGER |
|
|
6) |
Name of Subject |
: |
KU CHOY HA |
|
Position |
: |
PRODUCTION MANAGER |
|
|
7) |
Name of Subject |
: |
KULKARNI VINAY RAMCHANDRA |
|
Position |
: |
CHIEF OPERATING OFFICER |
|
AUDITOR |
|
Auditor |
: |
PRICEWATERHOUSECOOPERS |
|
Auditor' Address |
: |
1, SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, PO BOX 10192, LEVEL 10, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
COMPANY SECRETARIES |
|
1) |
Company Secretary |
: |
MS. CATHERINE MAH SUIK CHING |
|
IC / PP No |
: |
5588928 |
|
|
New IC No |
: |
600421-10-6364 |
|
|
Address |
: |
19, JALAN BK3/8D, BANDAR KINRARA, 47100 PUCHONG, SELANGOR, MALAYSIA. |
|
|
2) |
Company Secretary |
: |
MS. TIA HWEI PING |
|
New IC No |
: |
820813-10-5728 |
|
|
Address |
: |
118, JALAN SENTOSA 63, KAWASAN 19, 41050 KLANG, SELANGOR, MALAYSIA. |
|
BANKING |
Banking relations are maintained principally with :
|
1) |
Name |
: |
ICICI BANK LTD |
ENCUMBRANCE (S) |
|
Charge No |
Creation Date |
Charge Description |
Chargee Name |
Total Charge |
Status |
|
1 |
25/10/2010 |
DEBENTURE |
- |
USD 25,000,000.00 |
Unsatisfied |
|
2 |
25/10/2010 |
MEMORANDUM OF CHARGE |
ICICI BANK LIMITED, SINGAPORE BRANCH |
USD 1,250,000.00 |
Unsatisfied |
|
3 |
11/10/2011 |
FIXED CHARGE |
MALAYAN BANKING BHD |
USD 30,000,000.00 |
Unsatisfied |
|
4 |
07/12/2012 |
THE CHARGE MADE BETWEEN THE COMPANY AND MALAYAN BANKING BERHAD |
MALAYAN BANKING BHD |
USD 10,625,000.00 |
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 |
Percentage |
: |
40% |
|
Overseas |
: |
YES |
Percentage |
: |
60% |
|
Import Countries |
: |
ASIA |
|||
The Subject refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data we
conclude that :
|
OVERALL PAYMENT HABIT |
||||||||||||||
|
Prompt 0-30 Days |
[ |
] |
Good 31-60 Days |
[ |
] |
Average 61-90 Days |
[ |
X |
] |
|||||
|
Fair 91-120 Days |
[ |
] |
Poor >120 Days |
[ |
] |
|||||||||
CLIENTELE |
|
Local |
: |
YES |
Percentage |
: |
10% |
|
Domestic Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
YES |
Percentage |
: |
90% |
|
Export Market |
: |
SOUTHEAST ASIA |
|||
|
Credit Term |
: |
30 - 60 DAYS |
|||
|
Payment Mode |
: |
CHEQUES |
|||
OPERATIONS |
|
Products manufactured |
: |
|
|
|
Ownership of premises |
: |
OWNED |
|
Total Number of Employees: |
|
||||||||
|
YEAR |
2014 |
2013 |
2012 |
2011 |
2010 |
||||
|
|
|||||||||
|
GROUP |
N/A |
N/A |
N/A |
N/A |
N/A |
||||
|
COMPANY |
7500 |
7,500 |
7,500 |
7,500 |
7,350 |
||||
|
Branch |
: |
YES |
|
|
No of Branches |
: |
2 |
|
|
Branch(es) |
: |
LOT 2322, TANGGA BATU INDUSTRIAL ESTATE, 76400 TANJONG KLING, MELAKA, MALAYSIA. Tel No: 06-3511190 Fax No: 06-3511176 PT 1886, 1891, 1892, 7927, 7928, KAWASAN PERINDUSTRIAN NILAI, 71800 NILAI, NEGERI SEMBILAN, MALAYSIA. Tel No: 06-7992855 Fax No: 06-7992872 |
|
Other Information:
The Subject is principally engaged in the (as a / as an) manufacturing of
textiles and fibre products.
The Subject is one of largest intergrated polyester and Textile Company with
world class manufacturing facilities at Nilai and Melaka in Malaysia.
The Subject's products ranges are as follows:
1) Polyester Polymer Production
2) Nylon Polymer Production
3) Polyester Staple Fibre
4) Spun Yarns
5) Polyester Filament Yarns
6) PET bottle grade Resins
7) Fabrics
The Subject produces annually over 500,000 tons of Polyester Products, 36,000
tons of Nylon Products and 500 million meters of Fabrics.
The products are used for making ready made garments, home furnishings, curtain
materials and others.
The Subject's vertically integrated production units have state of art machines
and equipment. Its biggest asset is its highly skilled and dedicated work
force.
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 |
: |
03-20316000 |
|
Match |
: |
YES |
|
Address Provided by Client |
: |
LEVEL 9, WISMA GOLDHILL, 67 JALAN RAJA CHULAN, 50200 KUALA LUMPUR |
|
Current Address |
: |
WISMA GOLDHILL, 67, JALAN RAJA CHULAN, LEVEL 7, LEVEL 8 & LEVEL 9, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
Match |
: |
NO |
|
Latest Financial Accounts |
: |
YES |
Other Investigations
we contacted one of the staff from the Subject and she provided some
information.
The address provided is incomplete.
FINANCIAL ANALYSIS |
|
Profitability |
||||||
|
Turnover |
: |
Erratic |
[ |
2008 - 2012 |
] |
|
|
Profit/(Loss) Before Tax |
: |
Decreased |
[ |
2008 - 2012 |
] |
|
|
Return on Shareholder Funds |
: |
Unfavourable |
[ |
(8.10%) |
] |
|
|
Return on Net Assets |
: |
Unfavourable |
[ |
(7.84%) |
] |
|
|
The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject incurred losses during the year due to the inefficient control of its operating costs. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns. |
||||||
|
Working Capital Control |
||||||
|
Stock Ratio |
: |
Favourable |
[ |
45 Days |
] |
|
|
Debtor Ratio |
: |
Favourable |
[ |
9 Days |
] |
|
|
Creditors Ratio |
: |
Favourable |
[ |
19 Days |
] |
|
|
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors. |
||||||
|
Liquidity |
||||||
|
Liquid Ratio |
: |
Unfavourable |
[ |
0.14 Times |
] |
|
|
Current Ratio |
: |
Unfavourable |
[ |
0.66 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 |
[ |
(5.14 Times) |
] |
|
|
Gearing Ratio |
: |
Acceptable |
[ |
0.92 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'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's losses increased but its turnover showed a fluctuating trend. This indicate the Subject was slowly losing its market share due to its competitors. 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 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 : 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 |
|
|
13990 : Manufacture of other textiles n.e.c. |
|
|
INDUSTRY : |
MANUFACTURING |
|
The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while 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 |
|
|
|
|
PROFIT AND LOSS ACCOUNT |
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE
WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS) |
|
RECRON (MALAYSIA) 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 |
17 |
|
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 |
3,106,020,000 |
3,807,050,000 |
3,192,020,000 |
2,888,960,000 |
2,932,020,000 |
|
Other Income |
1,260,000 |
5,430,000 |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Total Turnover |
3,107,280,000 |
3,812,480,000 |
3,192,020,000 |
2,888,960,000 |
2,932,020,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) FROM OPERATIONS |
(115,700,000) |
44,290,000 |
144,620,000 |
11,710,000 |
45,700,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) BEFORE TAXATION |
(115,700,000) |
44,290,000 |
144,620,000 |
11,710,000 |
45,700,000 |
|
Taxation |
47,940,000 |
(8,250,000) |
(21,810,000) |
4,700,000 |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) AFTER TAXATION |
(67,760,000) |
36,040,000 |
122,810,000 |
16,410,000 |
45,700,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD |
|||||
|
As previously reported |
220,960,000 |
184,920,000 |
62,110,000 |
45,700,000 |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
As restated |
220,960,000 |
184,920,000 |
62,110,000 |
45,700,000 |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
153,200,000 |
220,960,000 |
184,920,000 |
62,110,000 |
45,700,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
153,200,000 |
220,960,000 |
184,920,000 |
62,110,000 |
45,700,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
INTEREST EXPENSE (as per notes to P&L) |
|||||
|
Bank overdraft |
10,570,000 |
8,260,000 |
11,160,000 |
11,410,000 |
- |
|
Term loan / Borrowing |
8,270,000 |
8,130,000 |
9,020,000 |
19,910,000 |
30,130,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
18,840,000 |
16,390,000 |
20,180,000 |
31,320,000 |
30,130,000 |
|
|
============= |
============= |
============= |
============= |
============= |
BALANCE SHEET |
|
RECRON (MALAYSIA) SDN. BHD. |
|
ASSETS EMPLOYED: |
|||||
|
FIXED ASSETS |
1,478,190,000 |
1,547,530,000 |
1,481,940,000 |
1,579,120,000 |
1,617,770,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM ASSETS |
1,478,190,000 |
1,547,530,000 |
1,481,940,000 |
1,579,120,000 |
1,617,770,000 |
|
CURRENT ASSETS |
|||||
|
Stocks |
381,210,000 |
465,570,000 |
452,260,000 |
449,240,000 |
494,930,000 |
|
Trade debtors |
78,470,000 |
136,750,000 |
136,800,000 |
142,430,000 |
111,360,000 |
|
Other debtors, deposits & prepayments |
15,870,000 |
15,560,000 |
48,500,000 |
7,480,000 |
15,390,000 |
|
Short term deposits |
3,820,000 |
3,970,000 |
3,870,000 |
- |
- |
|
Cash & bank balances |
400,000 |
120,000 |
1,400,000 |
70,000 |
370,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT ASSETS |
479,770,000 |
621,970,000 |
642,830,000 |
599,220,000 |
622,050,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL ASSET |
1,957,960,000 |
2,169,500,000 |
2,124,770,000 |
2,178,340,000 |
2,239,820,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
CURRENT LIABILITIES |
|||||
|
Trade creditors |
158,530,000 |
117,000,000 |
132,460,000 |
111,700,000 |
75,260,000 |
|
Other creditors & accruals |
40,590,000 |
45,840,000 |
48,130,000 |
48,370,000 |
41,210,000 |
|
Bank overdraft |
204,910,000 |
183,460,000 |
128,540,000 |
235,080,000 |
254,820,000 |
|
Short term borrowings/Term loans |
91,750,000 |
95,310,000 |
661,610,000 |
654,000,000 |
658,930,000 |
|
Other borrowings |
121,090,000 |
103,950,000 |
100,000,000 |
165,000,000 |
191,130,000 |
|
Other liabilities |
105,050,000 |
117,320,000 |
6,450,000 |
15,300,000 |
35,360,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT LIABILITIES |
721,920,000 |
662,880,000 |
1,077,190,000 |
1,229,450,000 |
1,256,710,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
NET CURRENT ASSETS/(LIABILITIES) |
(242,150,000) |
(40,910,000) |
(434,360,000) |
(630,230,000) |
(634,660,000) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL NET ASSETS |
1,236,040,000 |
1,506,620,000 |
1,047,580,000 |
948,890,000 |
983,110,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
SHARE CAPITAL |
|||||
|
Ordinary share capital |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL SHARE CAPITAL |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
|
RESERVES |
|||||
|
Capital reserve |
681,270,000 |
727,190,000 |
773,110,000 |
819,040,000 |
864,970,000 |
|
Retained profit/(loss) carried forward |
153,200,000 |
220,960,000 |
184,920,000 |
62,110,000 |
45,700,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL RESERVES |
834,470,000 |
948,150,000 |
958,030,000 |
881,150,000 |
910,670,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
SHAREHOLDERS' FUNDS/EQUITY |
836,970,000 |
950,650,000 |
960,530,000 |
883,650,000 |
913,170,000 |
|
LONG TERM LIABILITIES |
|||||
|
Long term loans |
351,710,000 |
460,670,000 |
- |
- |
- |
|
Deferred taxation |
47,360,000 |
95,300,000 |
87,050,000 |
65,240,000 |
69,940,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM LIABILITIES |
399,070,000 |
555,970,000 |
87,050,000 |
65,240,000 |
69,940,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
1,236,040,000 |
1,506,620,000 |
1,047,580,000 |
948,890,000 |
983,110,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
FINANCIAL RATIO |
|
RECRON (MALAYSIA) SDN. BHD. |
|
TYPES OF FUNDS |
|||||
|
Cash |
4,220,000 |
4,090,000 |
5,270,000 |
70,000 |
370,000 |
|
Net Liquid Funds |
(200,690,000) |
(179,370,000) |
(123,270,000) |
(235,010,000) |
(254,450,000) |
|
Net Liquid Assets |
(623,360,000) |
(506,480,000) |
(886,620,000) |
(1,079,470,000) |
(1,129,590,000) |
|
Net Current Assets/(Liabilities) |
(242,150,000) |
(40,910,000) |
(434,360,000) |
(630,230,000) |
(634,660,000) |
|
Net Tangible Assets |
1,236,040,000 |
1,506,620,000 |
1,047,580,000 |
948,890,000 |
983,110,000 |
|
Net Monetary Assets |
(1,022,430,000) |
(1,062,450,000) |
(973,670,000) |
(1,144,710,000) |
(1,199,530,000) |
|
BALANCE SHEET ITEMS |
|||||
|
Total Borrowings |
769,460,000 |
843,390,000 |
890,150,000 |
1,054,080,000 |
1,104,880,000 |
|
Total Liabilities |
1,120,990,000 |
1,218,850,000 |
1,164,240,000 |
1,294,690,000 |
1,326,650,000 |
|
Total Assets |
1,957,960,000 |
2,169,500,000 |
2,124,770,000 |
2,178,340,000 |
2,239,820,000 |
|
Net Assets |
1,236,040,000 |
1,506,620,000 |
1,047,580,000 |
948,890,000 |
983,110,000 |
|
Net Assets Backing |
836,970,000 |
950,650,000 |
960,530,000 |
883,650,000 |
913,170,000 |
|
Shareholders' Funds |
836,970,000 |
950,650,000 |
960,530,000 |
883,650,000 |
913,170,000 |
|
Total Share Capital |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
|
Total Reserves |
834,470,000 |
948,150,000 |
958,030,000 |
881,150,000 |
910,670,000 |
|
LIQUIDITY (Times) |
|||||
|
Cash Ratio |
0.01 |
0.01 |
0.00 |
0.00 |
0.00 |
|
Liquid Ratio |
0.14 |
0.24 |
0.18 |
0.12 |
0.10 |
|
Current Ratio |
0.66 |
0.94 |
0.60 |
0.49 |
0.49 |
|
WORKING CAPITAL CONTROL (Days) |
|||||
|
Stock Ratio |
45 |
45 |
52 |
57 |
62 |
|
Debtors Ratio |
9 |
13 |
16 |
18 |
14 |
|
Creditors Ratio |
19 |
11 |
15 |
14 |
9 |
|
SOLVENCY RATIOS (Times) |
|||||
|
Gearing Ratio |
0.92 |
0.89 |
0.93 |
1.19 |
1.21 |
|
Liabilities Ratio |
1.34 |
1.28 |
1.21 |
1.47 |
1.45 |
|
Times Interest Earned Ratio |
(5.14) |
3.70 |
8.17 |
1.37 |
2.52 |
|
Assets Backing Ratio |
494.42 |
602.65 |
419.03 |
379.56 |
393.24 |
|
PERFORMANCE RATIO (%) |
|||||
|
Operating Profit Margin |
(3.73) |
1.16 |
4.53 |
0.41 |
1.56 |
|
Net Profit Margin |
(2.18) |
0.95 |
3.85 |
0.57 |
1.56 |
|
Return On Net Assets |
(7.84) |
4.03 |
15.73 |
4.53 |
7.71 |
|
Return On Capital Employed |
(6.72) |
3.59 |
14.01 |
3.63 |
6.13 |
|
Return On Shareholders' Funds/Equity |
(8.10) |
3.79 |
12.79 |
1.86 |
5.00 |
|
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.60.05 |
|
|
1 |
Rs.101.32 |
|
Euro |
1 |
Rs.83.34 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.