MIRA INFORM REPORT

 

 

Report Date :

22.05.2014

 

IDENTIFICATION DETAILS

 

Name :

CJ POLYMERS SDN. BHD.

 

 

Registered Office :

44-2, Jalan 4/18a, Taman Mastiara, Batu 5 1/2, Off Jalan Ipoh, 51200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

16.02.2001

 

 

Com. Reg. No.:

539468-V

 

 

Legal Form :

Exempt Private

 

 

Line of Business :

Wholesale of plastic materials in primary forms, Procurement and Trading of Resin, Polymers, Textile, Petrochemical, and Fertilizer

 

 

No. of Employees

15

 

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 :

Unknown

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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

D

 


 

MALAYSIA - ECONOMIC OVERVIEW

 

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

Source : CIA

 

 

 


EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

539468-V

COMPANY NAME

:

CJ POLYMERS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

16/02/2001

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

44-2, JALAN 4/18A, TAMAN MASTIARA, BATU 5 1/2, OFF JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

B-6-16, VOX SOUTHGATE, JALAN DUA OFF JALAN CHAN SOW LIN, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-92213000

FAX.NO.

:

03-92213006

EMAIL

:

SALE@CJPOLYMERS.COM

WEB SITE

:

WWW.CJPOLYMERS.COM

CONTACT PERSON

:

NG SOO HAN ( MANAGING DIRECTOR )

INDUSTRY CODE

:

46693

PRINCIPAL ACTIVITY

:

PROCUREMENT AND TRADING OF RESIN, POLYMERS, TEXTILE, PETROCHEMICAL, AND FERTILIZER

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 4,000,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH AND 3,900,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

15 [2014]

BANKER (S)

:

HSBC BANK MALAYSIA BHD
STANDARD CHARTERED BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

The Subject is an exempt private company which is allowed to have a minimum of two and a maximum of twenty shareholders and all the shareholders must be individuals. An exempt company is a type of private limited company. 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, suing or be sued by other companies. The Subject is governed by the Companies Act, 1965 and must file in its annual return. The Subject need not file in its financial statements but it has to file in a document duly signed by its director in charge of its finance, the secretary and its auditor stating that the Subject is able to meet all its obligations as and when they fall due. Although the Subject is not required to file in its financial statements, it also has to prepare its financial account which must be presented at the Annual General Meeting.

The Subject is principally engaged in the (as a / as an) procurement and trading of resin, polymers, textile, petrochemical, and fertilizer.

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

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

01/04/2013

MYR 5,000,000.00

MYR 4,000,000.00

31/03/2010

MYR 5,000,000.00

MYR 2,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MS. LOK PEY LING +

B-08-02, KIARAMAS SUTERA, 7, JALAN DESA KIARA, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

731129-01-5094 A2568082

2,000,000.00

50.00

MS. NG SOO HAN +

1, JALAN BU 11/13, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

710603-06-5054 A1905688

2,000,000.00

50.00

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

------

4,000,000.00

100.00

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

=====

+ Also Director

 

The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Country

Company

(%)

As At

852819T

MALAYSIA

CJ PETROCHEMICALS SDN. BHD.

100.00

29/03/2013

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. SIM CHIN HU

Address

:

1, JALAN BU 11/13, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A1907114

New IC No

:

711010-03-5081

Date of Birth

:

10/10/1971

Nationality

:

MALAYSIAN

Date of Appointment

:

05/03/2014

 

DIRECTOR 2

 

Name Of Subject

:

MR. KERK HAN MENG

Address

:

B-08-02, KIARAMAS SUTERA, 7, JALAN DESA KIARA, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A2383713

New IC No

:

730320-01-5127

Date of Birth

:

20/03/1973

Nationality

:

MALAYSIAN

Date of Appointment

:

05/03/2014

 

DIRECTOR 3

 

Name Of Subject

:

MS. LOK PEY LING

Address

:

B-08-02, KIARAMAS SUTERA, 7, JALAN DESA KIARA, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A2568082

New IC No

:

731129-01-5094

Date of Birth

:

29/11/1973

Nationality

:

MALAYSIAN

Date of Appointment

:

16/02/2001

 

DIRECTOR 4

 

Name Of Subject

:

MS. NG SOO HAN

Address

:

1, JALAN BU 11/13, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A1905688

New IC No

:

710603-06-5054

Date of Birth

:

03/06/1971

Nationality

:

MALAYSIAN

Date of Appointment

:

16/02/2001



MANAGEMENT

 

 

 

1)

Name of Subject

:

NG SOO HAN

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

FOO PAU KWAN

Position

:

ASSISTANT ACCOUNT MANAGER

 

3)

Name of Subject

:

ERICA CHUO

Position

:

ASSISTANT MARKETING MANAGER

 

 

AUDITOR

 

Auditor

:

YEH & CO

Auditor' Address

:

44-2, JALAN 4/18A, TAMAN MASTIARA, BATU 5 1/2, OFF JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. WONG NGIA MING

IC / PP No

:

K0095414

New IC No

:

660202-13-5557

Address

:

42, JALAN PUTERI 8/3, BANDAR PUTERI PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

2)

Name

:

STANDARD CHARTERED BANK MALAYSIA BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

10/11/2008

OPEN CHARGE

STANDARD CHARTERED BANK MALAYSIA BHD

-

Unsatisfied

2

10/11/2008

OPEN CHARGE

STANDARD CHARTERED BANK MALAYSIA BHD

-

Unsatisfied

3

10/11/2008

OPEN CHARGE

STANDARD CHARTERED BANK MALAYSIA BHD

-

Unsatisfied

4

24/11/2008

OPEN CHARGE

STANDARD CHARTERED BANK MALAYSIA BHD

-

Unsatisfied

5

21/10/2010

DEED OF ASSIGNMENT

HSBC BANK MALAYSIA BHD

-

Unsatisfied

6

20/04/2011

DEED OF ASSIGNMENT

HONG LEONG ISLAMIC BANK BERHAD

MYR 1,993,685.88

Unsatisfied

7

29/11/2012

N/A

HSBC BANK MALAYSIA BHD

-

Unsatisfied

8

27/01/2014

N/A

HSBC BANK MALAYSIA BHD

-

Unsatisfied

9

19/02/2014

N/A

STANDARD CHARTERED BANK MALAYSIA BHD

-

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

:

50%

Overseas

:

YES

Percentage

:

50%

Import Countries

:

CHINA,VIETNAM,KOREA

 

CLIENTELE

 

Local

:

YES

Percentage

:

50%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

50%

Export Market

:

ASIA

EUROPE

Credit Term

:

AS AGREED

Payment Mode

:

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

Type of Customer

:

PLASTIC MANUFACTURER,OIL & GAS INDUSTRIES

 

OPERATIONS

 

Goods Traded

:

RESIN, POLYMERS, TEXTILE, PETROCHEMICAL, AND FERTILIZER

Ownership of premises

:

LEASED/RENTED

 

Total Number of Employees:

 

YEAR

2014

2012

2011

2010

2009

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

15

15

15

13

10

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) procurement and trading of resin, polymers, textile, petrochemical, and fertilizer.

The subject is an international distribution and trading company that established since 2001. It is a renowned central hub for worldwide procurement and marketing of petrochemicals, polymers and textile raw materials. Our diverse range of suppliers assures continuity of supply to our customers.

The customer base of 700 and more companies consist of manufacturing and international oil and gas companies. With such a wide customer base, it reveals our commitment in providing high quality product and services to our customers.

Subject treat it role as the cornerstone for the expansion of Malaysia’s export and overseas resource development with extreme seriousness. The subject assist the customers in international marketing, procurement of commodities and sales bases both internationally and domestically.

The subject also constantly exploring new products and developments to add value for our customers’ businesses.

Subject place customers and suppliers satisfaction as utmost importance.

The role as product sourcing company is to assist the customers obtain raw material like petrochemical, fertilizer, yarns and others to source for their business product output. As a company with one-stop services, it provide variety of services to ease our customers. It provide practical and professional assistance in marketing and sales to our customers in selling their products. In terms of logistics, customers can be assured with our expertise in handling and shipping their cargoes to the destination safely and on time. The subject also have a team of advisers to give advice and support to customers for documentations procedures needed when running businesses internationally.


CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-92213000

Match

:

N/A

Address Provided by Client

:

B-6, 16 VOX SOUTHGATE, JALAN DUA OFF JALAN CHAN SOW LIN 55200 KUALA LUMPUR

Current Address

:

B-6-16, VOX SOUTHGATE, JALAN DUA OFF JALAN CHAN SOW LIN, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

NO

 

Other Investigations


On 15th May 2014 we contacted one of the staff from the Subject and she provided some information.

FINANCIAL ANALYSIS

 

 

The Subject is a private exempt company which does not need to file in its accounts with the Registrar of Companies for the information of the public. Therefore, we are not able to comment on the Subject's financial performance.

Overall financial condition of the Subject : N/A

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

INDUSTRY ANALYSIS

 

MSIC CODE

46693 : Wholesale of plastic materials in primary forms

INDUSTRY :

TRADING

According to the Retail Group Malaysia (RGM), the wholesale and retail trade sector forecast to grow to 6% in year 2013. During the first quarter of year 2013, RGM is estimating the retail industry to grow 6.9%. Many retailers have been enjoying better sales since the government handed out cash from mid-January of 2013 under the second round of Bantuan Rakyat 1Malaysia to more than 12 million Malaysians. Bookstores and related retail stores have also started enjoying rising sales since the RM250 1Malaysia Book Voucher was distributed to 1.3 million private and public university students. Besides, since early February 2013, handphone traders and retailers selling smartphone accessories have started to benefit from the RM200 rebate on smartphones for 1.5 million young adults aged between 21 and 30 years with a monthly income of not more than RM3,000.

The wholesale and retail trade sector grew 6.1% in the first half of the year 2012 driven by strong domestic consumption and the increasing number of large format stores operating in Malaysia, including 180 foreign hypermarkets, superstores and departmental stores as at end of August 2012. In addition, other indicators such as imports of consumption goods were higher by 15.2%.

In 2012, the wholesale and retail trade sector growth to 5.5% driven by higher consumption which benefited from Government initiatives under the 2012 Budget such as BR1M, Baucar Buku 1Malaysia (BB1M) and the RM100 assistance for all primary and secondary school students. The performance of the sector will also be supported by ongoing efforts to modernise the retail segment under the ETP. In 2012, 500 retail shops and 50 workshops are targeted to be modernised under the Retail Shop Transformation (TUKAR) and Automotive Workshop Modernisation (ATOM) programmes, respectively. As at end of July 2012, 95 workshops have been modernised, surpassing the yearly target, while 393 retail shops have been modernised.

Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.

Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption, therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 2001, the Subject is an Exempt Private company, focusing on procurement and trading of resin, polymers, textile, petrochemical, and fertilizer. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The capital standing of the Subject is fair. However, the Subject does not have strong shareholders' backing.

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. Being a small company, the Subject's business operation is supported by 15 employees. Overall, we regard that the Subject's management capability is average.

As the Subject is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health.

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 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)

CJ POLYMERS SDN. BHD.

 

Financial Year End

2010-03-31

Months

12

Consolidated Account

GROUP

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

FULL

Currency

MYR

TURNOVER

83,988,755

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

Total Turnover

83,988,755

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

PROFIT/(LOSS) FROM OPERATIONS

1,070,438

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

PROFIT/(LOSS) BEFORE TAXATION

1,070,438

Taxation

(369,552)

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

PROFIT/(LOSS) AFTER TAXATION

700,886

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

4,707,108

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

As restated

4,707,108

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,407,994

CAPITALISATION FOR BONUS ISSUES

(1,000,000)

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

4,407,994

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

Others

305,095

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

305,095

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

 

BALANCE SHEET

 

CJ POLYMERS SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

996,136

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

TOTAL LONG TERM ASSETS

996,136

Trade debtors

4,884,209

Other debtors, deposits & prepayments

1,632,487

Cash & bank balances

1,381,462

Others

3,513

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

TOTAL CURRENT ASSETS

7,901,671

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

TOTAL ASSET

8,897,807

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

CURRENT LIABILITIES

Trade creditors

1,315,675

Other creditors & accruals

577,932

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

TOTAL CURRENT LIABILITIES

1,893,607

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

NET CURRENT ASSETS/(LIABILITIES)

6,008,064

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

TOTAL NET ASSETS

7,004,200

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

SHARE CAPITAL

Ordinary share capital

2,000,000

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

TOTAL SHARE CAPITAL

2,000,000

Retained profit/(loss) carried forward

4,407,994

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

TOTAL RESERVES

4,407,994

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

SHAREHOLDERS' FUNDS/EQUITY

6,407,994

Long term loans

596,206

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

TOTAL LONG TERM LIABILITIES

596,206

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

7,004,200

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

 

FINANCIAL RATIO

 

CJ POLYMERS SDN. BHD.

 

TYPES OF FUNDS

Cash

1,381,462

Net Liquid Funds

1,381,462

Net Liquid Assets

6,008,064

Net Current Assets/(Liabilities)

6,008,064

Net Tangible Assets

7,004,200

Net Monetary Assets

5,411,858

BALANCE SHEET ITEMS

Total Borrowings

596,206

Total Liabilities

2,489,813

Total Assets

8,897,807

Net Assets

7,004,200

Net Assets Backing

6,407,994

Shareholders' Funds

6,407,994

Total Share Capital

2,000,000

Total Reserves

4,407,994

LIQUIDITY (Times)

Cash Ratio

0.73

Liquid Ratio

4.17

Current Ratio

4.17

WORKING CAPITAL CONTROL (Days)

Debtors Ratio

21

Creditors Ratio

6

SOLVENCY RATIOS (Times)

Gearing Ratio

0.09

Liabilities Ratio

0.39

Times Interest Earned Ratio

4.51

Assets Backing Ratio

3.50

PERFORMANCE RATIO (%)

Operating Profit Margin

1.27

Net Profit Margin

0.83

Return On Net Assets

19.64

Return On Capital Employed

19.64

Return On Shareholders' Funds/Equity

10.94

 


 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.77

UK Pound

1

Rs.99.01

Euro

1

Rs.80.56

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

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%)

 

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