MIRA INFORM REPORT

 

 

Report Date :

31.05.2014

 

IDENTIFICATION DETAILS

 

Name :

CERAMICA INDAH SDN BHD

 

 

Formerly Known as :

KAM HAM BRICK FACTORY SDN BHD

 

 

Registered Office :

4 1/2, Mile, Kung Phin Road, Off Penrissen Road, 93250 Kuching, Sarawak

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

25.11.1980

 

 

Com. Reg. No.:

64767-T

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

manufacturer of Ceramic Floor Tiles bearing brand name Kimgres

 

 

No of Employees :

1000 [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 But Correct 

 

 

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

 


 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

N/A - Not Applicable

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

64767-T

COMPANY NAME

:

CERAMICA INDAH SDN BHD

FORMER NAME

:

KAM HAM BRICK FACTORY SDN BHD (12/09/1984)

INCORPORATION DATE

:

25/11/1980

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

4 1/2, MILE, KUNG PHIN ROAD, OFF PENRISSEN ROAD, 93250 KUCHING, SARAWAK, MALAYSIA.

BUSINESS ADDRESS

:

4 1/2 MILE KUNG PHIN ROAD, PO BOX 1842, 93736 KUCHING, SARAWAK, MALAYSIA.

TEL.NO.

:

082-451567

FAX.NO.

:

082-452135

EMAIL

:

JOHN@KIMHIM.COM.MY

WEB SITE

:

WWW.KIMHIN.COM.MY

CONTACT PERSON

:

JOHN CHUA ( GROUP MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

23921

PRINCIPAL ACTIVITY

:

MANUFACTURER OF CERAMIC FLOOR TILES

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO 
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO 
ORDINARY SHARES 7,000,000 CASH AND 43,000,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 111,035,222 [2012]

NET WORTH

:

MYR 85,170,469 [2012]

 

 

 

STAFF STRENGTH

:

1000 [2014]

BANKER (S)

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The Subject is principally engaged in the (as a / as an) manufacturer of ceramic floor tiles.

 

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

 

The immediate holding company of the Subject is KIM HIN INDUSTRY BERHAD, a company incorporated in MALAYSIA.

 

The ultimate holding company of the Subject is KIM HIN (MALAYSIA) SDN. BHD., a company incorporated in MALAYSIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

07/11/2013

MYR 50,000,000.00

MYR 50,000,000.00

31/12/2012

MYR 50,000,000.00

MYR 48,500,000.00

31/12/2011

MYR 20,000,000.00

MYR 20,000,000.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

KIM HIN INDUSTRY BERHAD

4 1/2 MILE, KUNG PHIN ROAD, OFF PENRISSEN ROAD, 93250 KUCHING, SARAWAK, MALAYSIA.

18203V

50,000,000.00

100.00

 

 

 

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

------

 

 

 

50,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

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



Local No

Country

Company

(%)

As At

 

AUSTRALIA

KIMGRES HOLDINGS PTY. LTD.

100.00

31/12/2012

 

 

 

 

 

 

AUSTRALIA

KIMGRES AUSTRALIA PTY. LTD.

100.00

31/12/2012

 

 

 

 

 

 

 

 

DIRECTORS

 

DIRECTOR 1

Name Of Subject

:

MR. CHUA SENG GUAN

Address

:

128, JALAN TAN SRI DATUK WILLIAM TAN, 93450 KUCHING, SARAWAK, MALAYSIA.

IC / PP No

:

K712132

New IC No

:

580122-13-5151

Date of Birth

:

22/01/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

14/08/1987

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

Name Of Subject

:

MR. CHUA SENG HUAT

Address

:

128, JALAN KUEH SIAK HONG, 93300 KUCHING, SARAWAK, MALAYSIA.

IC / PP No

:

K764495

New IC No

:

610510-13-5545

Date of Birth

:

10/05/1961

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

29/08/2006

 

 

 

Qualification

:

B.B.A. UNIVERSITY OF HAWAII, USA IN 1981.

Profile

:

RESPONSIBLE FOR TRANSFORMING THE KIM HIN GROUP INTO AN INTERNATIONAL PLAYER IN THE CERAMICS INDUSTRY.

 

 

 

 

DIRECTOR 3

Name Of Subject

:

MR. JOHN CHUA SENG CHAI

Address

:

128, JALAN TAN SRI DATUK WILLIAM TAN, 93450 KUCHING, SARAWAK, MALAYSIA.

 

 

 

New IC No

:

581228-13-5883

Date of Birth

:

28/12/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

14/08/1987

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

Name Of Subject

:

MS. PAULINE GETRUDE CHUA HUI LIN

Address

:

1, SIN JUAK GARDEN, JALAN RENGAS, KUCHING-BY-PASS, 93300 KUCHING, SARAWAK, MALAYSIA.

IC / PP No

:

K794597

New IC No

:

620507-13-6044

Date of Birth

:

07/05/1962

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/03/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

Name Of Subject

:

MS. CHUA YEW LIN

Address

:

128, JALAN TAN SRI DATUK WILLIAM TAN, 93450 KUCHING, SARAWAK, MALAYSIA.

IC / PP No

:

K0004042

New IC No

:

630511-13-5254

Date of Birth

:

11/05/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/03/2004

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENt

 

 

1)

Name of Subject

:

JOHN CHUA

 

Position

:

GROUP MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG

Auditor' Address

:

ROOMS 300-303, WISMA BUKIT MATA KUCHING, JALAN TUNKU ABDUL RAHMAN, 93100 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LOW WAI SEE

 

 

 

 

 

New IC No

:

740411-14-5188

 

Address

:

166, CHAWAN ROAD, 93300 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BHD

 

 

 

 


ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

04/03/1988

N/A

HONGKONG BANK MALAYSIA BERAHD

MYR 3,500,000.00

Satisfied

2

10/03/1988

N/A

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BHD

MYR 5,000,000.00

Satisfied

4

15/09/1989

DEBENTURE

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD

MYR 9,000,000.00

Satisfied

3

26/09/1989

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 6,500,000.00

Satisfied

 

 

LEGAL CHECK AGAINST SUBJECT


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

No legal action was found in our databank. 

No winding up petition was found in our databank. 

DEFAULTER CHECK AGAINST SUBJECT


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

 

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

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 


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

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

AUSTRALIA

UNITED STATES

ASIA

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

CERAMIC FLOOR TILES

 

 

 

Product Brand Name

:

KIMGRES, VITROGRES, DUROGRES

 

 

 

Certification of Products

:

1 ) MS ISO 13006 : 2003

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2013

2010

 

 

 

 

 

 


GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

1000

1000

950

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturer of ceramic floor tiles. 

The Subject is one of the driving forces of the ceramic industry in Malaysia and has years of experience in the manufacturing of ceramic and porcelain tiles. 

The Subject adopts the state of the art technology and prides itself as being the market leader in design and product innovation. Our products are sold under the brand name Kimgres. 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

082-451567, 451017, 458857

Current Telephone Number

:

082-451567

Match

:

YES

 

 

 

Address Provided by Client

:

4 1/2 MILE KUNG PHIN ROAD, PO BOX 1842,93736,KUCHING,SARAWAK.

Current Address

:

4 1/2 MILE KUNG PHIN ROAD, PO BOX 1842, 93736 KUCHING, SARAWAK, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

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

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

(13.72%)

]

 

Return on Net Assets

:

Unfavourable

[

(13.83%)

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.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

[

147 Days

]

 

Debtor Ratio

:

Favourable

[

19 Days

]

 

Creditors Ratio

:

Favourable

[

43 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

:

Acceptable

[

0.83 Times

]

 

Current Ratio

:

Favourable

[

2.47 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

(44.56 Times)

]

 

Gearing Ratio

:

Favourable

[

0.00 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 had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. The Subject'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 was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the Subject : LIMITED

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 


INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

INDUSTRY ANALYSIS

 

MSIC CODE

 

23921 : Manufacture of non-refractory ceramic

 

 

INDUSTRY :

CONSTRUCTION

 

 

 

The construction sector consists of four subsectors: residential, non-residential, civil engineering and special trade works. During a period of rapid economic expansion, the sector generally outperforms Gross Domestic Product (GDP) growth. 

 

Construction's contribution to gross domestic product (GDP) is expected to fall to 11.2% in 2013 from 15 % in 2012, with all subsectors registering steady growth. The sector is expected to benefit from the acceleration of ongoing construction activities, particularly from the Economic Transformation Programme (ETP) and Second Rolling Plan (RP2) construction-related projects. Of significance, exploration activities in O&G industries and major projects such as the electrified double-tracking between lpoh -Padang Besar, LPT2 Jabur - Kuala Terengganu, MRT and the River of Life are expected to drive the growth of the civil engineering subsector. The non-residential subsector is expected to expand spurred by the industrial building segment and the commencement of construction of the Tun Razak Exchange (TRX). The residential subsector is also projected to expand, albeit at a moderate pace, after recording several years of strong growth. Key housing development projects, particularly in Sungai Buloh and Bandar Malaysia in Sungai Besi, which are expected to commence in 2013, will support residential construction activities. According to the Minister of Finance, the domestic demand is expected to grow at 5.6% and will remain the main driver of growth in 2013 underpinned by strong private sector expenditure.

 

The industry is set to receive a further boost from a wave of new developments earmarked for 2013, including rail projects worth an estimated $52 billion that should be launched in the coming year. It was predicted that the growth in other sectors will largely drive Malaysia's economy but the construction sector's contribution to GDP could still remain stable. However, while the construction sector is expected to have a solid 2013, it remains hampered by a shortage of skilled labourers, with rapid growth in recent years triggering a drain on its workforce. In late November of 2012, the Builders Association Malaysia (MBAM) request the government to do more to facilitate the training of building workers or run the risk of supplyside bottlenecks delaying new projects.

 

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1980, the Subject is a Private Limited company, focusing on manufacturer of ceramic floor tiles. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. The Subject is well backed by a listed company shareholders which would stimulate further growth for the Subject. Hence, the potential growth of the Subject is positive. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect. 

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a large entity, the Subject has a steady workforce of 1000 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. 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. 

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 85,170,469, the Subject should be able to maintain its business in the near terms. 

The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources. 

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry. 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

CERAMICA INDAH SDN BHD

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

111,035,222

133,355,649

124,957,977

120,548,215

131,034,036

Other Income

1,996,938

2,667,980

2,857,376

-

-

 

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

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

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

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

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

Total Turnover

113,032,160

136,023,629

127,815,353

120,548,215

131,034,036

Costs of Goods Sold

(111,561,060)

(126,161,265)

(114,975,476)

-

-

 

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

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

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

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

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

Gross Profit

1,471,100

9,862,364

12,839,877

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

(12,040,328)

(2,768,167)

707,944

8,860,116

-

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

(12,040,328)

(2,768,167)

707,944

8,860,116

-

Taxation

358,050

(3,858,562)

(260,159)

0

(2,752,220)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(11,682,278)

(6,626,729)

447,785

8,860,116

(2,752,220)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

48,352,747

54,351,874

53,904,089

46,043,973

51,296,193

Prior year adjustment

-

627,602

-

-

-

 

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

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

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

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

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

As restated

48,352,747

54,979,476

53,904,089

46,043,973

51,296,193

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

36,670,469

48,352,747

54,351,874

54,904,089

48,543,973

DIVIDENDS - Ordinary (paid & proposed)

-

-

-

(1,000,000)

(2,500,000)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

36,670,469

48,352,747

54,351,874

53,904,089

46,043,973

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

134

3,045

-

-

-

Loan from holding company

264,139

-

-

-

-

Others

-

-

823

-

-

 

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

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

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

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

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

 

264,273

3,045

823

-

-

 

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

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

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

 

 

 

 

 

BALANCE SHEET

 

 

CERAMICA INDAH SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

43,105,793

35,334,980

38,552,660

42,988,134

47,829,944

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Subsidiary companies

2,055,879

2,055,879

2,055,879

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

2,055,879

2,055,879

2,055,879

0

2,055,879

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

45,161,672

37,390,859

40,608,539

42,988,134

49,885,823

 

 

 

 

 

 

Stocks

44,631,248

48,034,278

-

-

-

Contract work-in-progress

-

-

50,509,254

-

-

Trade debtors

5,756,585

5,966,784

6,788,552

-

-

Other debtors, deposits & prepayments

2,549,362

7,853,594

1,080,323

-

-

Short term deposits

1,500,703

4,310,913

-

-

-

Deposits with financial institutions

-

-

2,511,200

-

-

Amount due from subsidiary companies

8,444,411

13,407,932

14,972,097

-

-

Cash & bank balances

3,993,728

5,457,224

5,988,672

-

-

Others

370,231

-

1,718,293

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

67,246,268

85,030,725

83,568,391

78,444,882

77,252,749

 

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

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

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

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

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

TOTAL ASSET

112,407,940

122,421,584

124,176,930

121,433,016

127,138,572

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

13,067,552

14,783,663

16,047,501

-

-

Other creditors & accruals

3,912,478

4,693,183

3,880,145

-

-

Amounts owing to holding company

10,257,441

31,440,022

28,468,308

-

-

Provision for taxation

-

2,838,402

-

-

-

Other liabilities

-

212,067

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

27,237,471

53,967,337

48,395,954

58,998,225

72,750,997

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

40,008,797

31,063,388

35,172,437

19,446,657

4,501,752

 

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

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

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

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

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

TOTAL NET ASSETS

85,170,469

68,454,247

75,780,976

62,434,791

54,387,575

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

48,500,000

20,000,000

20,000,000

7,000,000

7,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

48,500,000

20,000,000

20,000,000

7,000,000

7,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

-

-

-

-

627,602

Revaluation reserve

-

-

627,602

-

-

Retained profit/(loss) carried forward

36,670,469

48,352,747

54,351,874

53,904,089

46,043,973

 

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

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

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

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

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

TOTAL RESERVES

36,670,469

48,352,747

54,979,476

54,531,791

46,671,575

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

85,170,469

68,352,747

74,979,476

61,531,791

53,671,575

 

 

 

 

 

 

Deferred taxation

-

101,500

801,500

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

101,500

801,500

903,000

716,000

 

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

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

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

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

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

 

85,170,469

68,454,247

75,780,976

62,434,791

54,387,575

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

CERAMICA INDAH SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

5,494,431

9,768,137

5,988,672

-

-

Net Liquid Funds

5,494,431

9,768,137

5,988,672

-

-

Net Liquid Assets

(4,622,451)

(16,970,890)

35,172,437

19,446,657

4,501,752

Net Current Assets/(Liabilities)

40,008,797

31,063,388

35,172,437

19,446,657

4,501,752

Net Tangible Assets

85,170,469

68,454,247

75,780,976

62,434,791

54,387,575

Net Monetary Assets

(4,622,451)

(17,072,390)

34,370,937

18,543,657

3,785,752

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

0

-

-

Total Liabilities

27,237,471

54,068,837

49,197,454

59,901,225

73,466,997

Total Assets

112,407,940

122,421,584

124,176,930

121,433,016

127,138,572

Net Assets

85,170,469

68,454,247

75,780,976

62,434,791

54,387,575

Net Assets Backing

85,170,469

68,352,747

74,979,476

61,531,791

53,671,575

Shareholders' Funds

85,170,469

68,352,747

74,979,476

61,531,791

53,671,575

Total Share Capital

48,500,000

20,000,000

20,000,000

7,000,000

7,000,000

Total Reserves

36,670,469

48,352,747

54,979,476

54,531,791

46,671,575

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.20

0.18

0.12

-

-

Liquid Ratio

0.83

0.69

1.73

-

-

Current Ratio

2.47

1.58

1.73

1.33

1.06

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

147

131

148

-

-

Debtors Ratio

19

16

20

-

-

Creditors Ratio

43

43

51

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

-

-

Liabilities Ratio

0.32

0.79

0.66

0.97

1.37

Times Interest Earned Ratio

(44.56)

(908.09)

861.20

-

-

Assets Backing Ratio

1.76

3.42

3.79

8.92

7.77

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

(10.84)

(2.08)

0.57

7.35

-

Net Profit Margin

(10.52)

(4.97)

0.36

7.35

(2.10)

Return On Net Assets

(13.83)

(4.04)

0.94

14.19

-

Return On Capital Employed

(13.83)

(4.04)

0.94

14.19

-

Return On Shareholders' Funds/Equity

(13.72)

(9.69)

0.60

14.40

(5.13)

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.11

0.91

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

 

 





 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.03

UK Pound

1

Rs.98.91

Euro

1

Rs.80.33

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

 

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.