MIRA INFORM REPORT

 

 

Report Date :

07.11.2014

 

IDENTIFICATION DETAILS

 

Name :

CELESTICA MALAYSIA SDN. BHD.

 

 

Registered Office :

Suite 16-1, (Penthouse Upper), Menara Penang Garden, 42a, Jalan Sultan Ahmad Shah, 10050 Pulau Pinang, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

22.09.1998

 

 

Com. Reg. No.:

469259-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the (as a / as an) manufactured of printed circuit boards and electronic products.

 

 

No of Employees :

1,850 [2014]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

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

 

Source : CIA


 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

469259-D

COMPANY NAME

:

CELESTICA MALAYSIA SDN. BHD.

FORMER NAME

:

CELESTICA (M) SDN BHD (22/07/1999)
SELESA ANGKASA SDN BHD (04/11/1998)

INCORPORATION DATE

:

22/09/1998

COMPANY STATUS

:

EXIST

LEGAL FORM

:

Private Limited

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

Suite 16-1, (Penthouse Upper), Menara Penang Garden, 42a, Jalan Sultan Ahmad Shah, 10050 Pulau Pinang, Pulau Pinang, Malaysia.

BUSINESS ADDRESS

:

Plot 15 & 16, Jalan Hi Tech 2/3 Phase 1, Kulim Hi-Tech Park, 09000 Kulim, Kedah, Malaysia.

TEL.NO.

:

04-4033288

FAX.NO.

:

04-4033279

WEB SITE

:

WWW.CELESTICA.COM

CONTACT PERSON

:

YONG CHONG CHIN ( MANAGING DIRECTOR )

INDUSTRY CODE

:

26103

PRINCIPAL ACTIVITY

:

MANUFACTURED OF PRINTED CIRCUIT BOARDS AND ELECTRONIC PRODUCTS

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 9,880,000.00 DIVIDED INTO 
ORDINARY SHARES 4,940,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 4,940,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 882,639,145 [2013]

NET WORTH

:

MYR 335,368,792 [2013]

M1000 OVERALL RANKING

:

789[2011]

M1000 INDUSTRY RANKING

:

32[2011]

STAFF STRENGTH

:

1,850 [2014]

BANKER (S)

:

BANK OF AMERICA MALAYSIA BHD
CITIBANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

GOOD

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MARGINAL 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) manufactured of printed circuit boards and electronic 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

2009

2008

2005

OVERALL RANKING

789

319

262

313

INDUSTRY RANKING

32

17

18

23

 

The immediate holding company of the Subject is CELESTICA CAYMAN HOLDINGS 1 LIMITED, a company incorporated in CAYMAN ISLANDS.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

16/01/2013

MYR 10,000,000.00

MYR 9,880,000.00

01/01/1970

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

(%)

CELESTICA CAYMAN HOLDINGS 1 LIMITED

QUEENSGATE HOUSE, SOUTH CHURCH STREET, P.O BOX 1234 GT, GRAND CAYMAN, CAYMAN ISLAND, CAYMAN ISLANDS.

CR 131049

9,880,000.00

100.00

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

------

9,880,000.00

100.00

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

=====

 

+ Also Director

 





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MONICA FUNG NGAN YING

Address

:

FLAT B, BLOCK 14, PRISTINE VILLA, 18, PAK LOK PATH, TAI WAI, NEW TERRITORIES, HONG KONG.

IC / PP No

:

HA9104439

Nationality

:

HONGKONGESE

Date of Appointment

:

10/05/2007

 

DIRECTOR 2

 

Name Of Subject

:

MR. YONG CHONG CHIN

Address

:

18, JALAN BATU BUKIT, 10470 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

6916980

New IC No

:

621226-07-5323

Date of Birth

:

26/12/1962

Nationality

:

MALAYSIAN

Date of Appointment

:

25/09/2006




MANAGEMENT

 

 

1)

Name of Subject

:

CRAIG MUHLHAUSER

Position

:

PRESIDENT

 

2)

Name of Subject

:

MARY GENDRON

Position

:

SENIOR VICE PRESIDENT

 

3)

Name of Subject

:

YONG CHONG CHIN

Position

:

MANAGING DIRECTOR

 

4)

Name of Subject

:

LIM CHENG SHING

Position

:

FINANCIAL CONTROLLER

 

5)

Name of Subject

:

PAUL NICOLETTI

Position

:

CHIEF FINANCE OFFICER

 

6)

Name of Subject

:

ABDUL RAFIQUE ADBUL RAHIM

Position

:

HUMAN RESOURCE MANAGER

 

7)

Name of Subject

:

JOHN PERI

Position

:

CHIEF OPERATING OFFICER

 

8)

Name of Subject

:

N FARIZA

Position

:

STAFF

 

9)

Name of Subject

:

STELLA

Position

:

SECRETARY

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

HUNZA TOWER, 163E, KELAWEI ROAD, 18TH FLOOR, 10250 GEORGETOWN, PULAU PINANG, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ONG TZE-EN

IC / PP No

:

A2054637

New IC No

:

720313-07-5210

Address

:

VILLA BATU BUKIT, 7-2-1, JALAN BATU BUKIT, 10470 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

BANK OF AMERICA MALAYSIA BHD

 

2)

Name

:

CITIBANK BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

21/09/1999

N/A

CITIBANK BERHAD

MYR 250,000.00

Satisfied

 

LITIGATION 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.


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



PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

30%

Overseas

:

YES

Percentage

:

70%

Import Countries

:

ASIA,UNITED STATES,EUROPE

 

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

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

EUROPE

ASIA

SINGAPORE

UNITED STATES

Credit Term

:

30 - 60 DAYS

Payment Mode

:

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

Type of Customer

:

ELECTRICAL & ELECTRONIC INDUSTRIES,COMPUTER INDUSTRY,TELECOMUNICATION INDUSTRY

 

OPERATIONS

 

Products manufactured

:

PRINTED CIRCUIT BOARDS, ELECTRONIC PRODUCTS

Competitor(s)

:

JABIL CIRCUIT SDN BHD

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

1,850

1,800

1,800

1,800

1,800

 

Branch

:

NO

 

Information:


The Subject is principally engaged in the (as a / as an) manufactured of printed circuit boards and electronic products. 

Celestica's global manufacturing network comprises more than 40 locations in the Americas, Europe and Asia. The company's global services include design and engineering, manufacturing and systems assembly, fulfillment and after-market services.


The Subject business is mainly focused on printed circuit boards assembly, inspection & testing.


The Subject is one of the leading PCB assembler for the following industries:


1) Computing


2) Electrical and electronic


3) Telecommunication


4) Aerospace


The Subject designs its printed circuit boards based on clients' requirements such as size, colours, patterns models and application of technologies ( completed process ).


The Subject is a member of the Celestica group of the companies. The group is a global leader in the electronics manufacturing services industry.


The Subject factory is equipped with the state-of-the-art facilities and automated machineries.

 

Besides that, the Subject has a warehouse located at the same premises to keep the stocks and materials. 



RECENT DEVELOPMENT


21st October 2014


The Subject announced their third quarter 2014 financial results.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

04-4033288

Match

:

N/A

Address Provided by Client

:

PLOT 15, JALAN HI-TECH 2/3 PHASE 1, 09000, KULIM, KEDAH MALAYSIA KULIM MALAYSIA

Current Address

:

PLOT 15 & 16, JALAN HI TECH 2/3 PHASE 1, KULIM HI-TECH PARK, 09000 KULIM, KEDAH, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 5th November 2014 we contacted one of the staff from Subject and collect some information.



FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

Return on Shareholder Funds

:

Acceptable

[

22.14%

]

Return on Net Assets

:

Acceptable

[

24.57%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Unfavourable

[

70 Days

]

Debtor Ratio

:

Unfavourable

[

68 Days

]

Creditors Ratio

:

Favourable

[

60 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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

:

Favourable

[

1.55 Times

]

Current Ratio

:

Favourable

[

2.48 Times

]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Nil

[

0.00 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject's interest cover was nil as it did not pay any interest during the year. 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 :

Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. 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 : STRONG

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2010

2011

2012

2013

2014**

Population ( Million)

28.35

28.70

29.30

29.80

30.30

Gross Domestic Products ( % )

7.2

5.1

5.6

5.3

6.0

Domestic Demand ( % )

6.3

8.2

9.4

5.6

6.4

Private Expenditure ( % )

8.1

8.2

8.0

7.4

7.9

Consumption ( % )

6.7

7.1

1.0

5.7

6.5

Investment ( % )

17.7

12.2

11.7

13.3

12.0

Public Expenditure ( % )

3.8

8.4

13.3

1.2

2.3

Consumption ( % )

0.2

16.1

11.3

(1.2)

2.1

Investment ( % )

2.8

(0.3)

15.9

4.2

2.6

Balance of Trade ( MYR Million )

118,356

116,058

106,300

110,700

52,314

Government Finance ( MYR Million )

(40,482)

(45,511)

(42,297)

(39,993)

(37,291)

Government Finance to GDP / Fiscal Deficit ( % )

(5.6)

(5.4)

(4.5)

(4.0)

(3.5)

Inflation ( % Change in Composite CPI)

5.1

3.1

1.6

2.5

3.3

Unemployment Rate

3.9

3.3

3.2

3.0

3.0

Net International Reserves ( MYR Billion )

329

415

427

-

417

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.20

3.50

2.20

-

-

Average 3 Months of Non-performing Loans ( % )

15.30

14.80

14.70

-

-

Average Base Lending Rate ( % )

6.30

6.60

6.53

6.53

-

Business Loans Disbursed( % )

14.7

15.3

32.2

-

-

Foreign Investment ( MYR Million )

22,517.9

23,546.1

26,230.4

38,238.0

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

44,148

45,455

45,441

46,321

-

Registration of New Companies ( % )

6.2

3.0

(0.0)

1.9

-

Liquidation of Companies ( No. )

25,585

132,476

-

-

-

Liquidation of Companies ( % )

(34.5)

417.8

-

-

-

Registration of New Business ( No. )

271,414

284,598

324,761

329,895

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,738

20,121

-

-

-

Business Dissolved ( % )

2.0

1.9

-

-

-

Sales of New Passenger Cars (' 000 Unit )

543.6

535.1

552.2

-

-

Cellular Phone Subscribers ( Million )

32.8

35.3

38.5

43.0

-

Tourist Arrival ( Million Persons )

24.6

24.7

25.0

25.7

-

Hotel Occupancy Rate ( % )

63.0

60.6

62.4

62.6

-

Credit Cards Spending ( % )

14.1

15.6

12.6

-

-

Bad Cheque Offenders (No.)

33,568

32,627

26,982

28,876

-

Individual Bankruptcy ( No.)

18,119

19,167

19,575

21,984

-

Individual Bankruptcy ( % )

11.7

5.8

2.1

12.3

-



INDUSTRIES ( % of Growth ):

2010

2011

2012

2013

2014**

Agriculture

2.4

5.8

1.0

2.1

3.8

Palm Oil

(3.4)

10.8

(0.3)

2.6

-

Rubber

9.9

6.1

(7.9)

(10.1)

-

Forestry & Logging

(3.3)

(7.6)

(4.5)

(7.8)

-

Fishing

5.6

2.1

4.3

1.6

-

Other Agriculture

7.9

7.1

6.4

8.2

-

Industry Non-Performing Loans ( MYR Million )

508.4

634.1

-

-

-

% of Industry Non-Performing Loans

2.1

3.2

-

-

-

Mining

(0.3)

(5.4)

1.4

0.9

(0.8)

Oil & Gas

0.5

(1.7)

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

49.7

46.5

-

-

-

% of Industry Non-performing Loans

0.1

0.1

-

-

-

Manufacturing #

11.9

4.7

4.8

3.4

6.6

Exported-oriented Industries

12.1

4.1

6.5

3.3

5.6

Electrical & Electronics

28.4

(4.0)

12.7

6.9

13.3

Rubber Products

25.3

20.7

3.0

11.7

(0.3)

Wood Products

20.1

(5.1)

8.7

(2.7)

5.1

Textiles & Apparel

(0.4)

13.2

(7.1)

(2.6)

11.5

Domestic-oriented Industries

16.3

10.7

1.7

6.8

9.4

Food, Beverages & Tobacco

3.0

4.8

2.7

3.6

6.1

Chemical & Chemical Products

16.2

10.0

10.8

5.6

-

Plastic Products

2.4

3.8

-

-

-

Iron & Steel

29.3

2.2

(6.6)

5.0

0.1

Fabricated Metal Products

14.9

21.8

13.8

9.9

2.9

Non-metallic Mineral

20.2

12.1

2.9

(2.0)

5.4

Transport Equipment

36.5

12.0

3.4

13.8

22.9

Paper & Paper Products

18.7

9.5

3.1

1.8

4.7

Crude Oil Refineries

(11.4)

9.3

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,217.5

6,537.2

-

-

-

% of Industry Non-Performing Loans

23.8

25.7

-

-

-

Construction

11.4

4.7

18.6

10.9

10.0

Industry Non-Performing Loans ( MYR Million )

4,038.5

3,856.9

-

-

-

% of Industry Non-Performing Loans

10.7

10.2

-

-

-

Services

7.4

7.0

6.4

5.9

6.2

Electric, Gas & Water

7.8

3.5

4.4

4.2

3.6

Transport, Storage & Communication

7.7

6.5

7.1

7.3

7.5

Wholesale, Retail, Hotel & Restaurant

4.7

5.2

4.7

5.9

6.9

Finance, Insurance & Real Estate

6.10

6.90

9.70

3.70

4.65

Government Services

5.9

12.4

9.4

8.3

6.1

Other Services

4.4

5.1

3.9

5.1

4.8

Industry Non-Performing Loans ( MYR Million )

7,384.6

6,825.2

-

-

-

% of Industry Non-Performing Loans

25.7

23.4

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

26103 : Manufacture of electrical capacitors and resistors

INDUSTRY :

ELECTRICAL & ELECTRONIC

The Electrical & Electronics (E&E) industry is the leading industry within the manufacturing sector and is the largest contributor to manufacturing output, employment, investment, exports and imports. Malaysia is a key player in the fast expanding Asia Pacific E&E market, its major export destinations include Singapore, United States, Europe, Japan and Taiwan. The E&E industry is targeted under the National Key Economic Areas ( NKEA ) to gear the nation towards high-income economy by focusing on high-value and high-growth manufacturing activities.

According to Ministry of Finance, in the year 2013 the electrical and electronic (E&E) subsector is expected to grow further, driven by higher demand for electronic equipment and parts as well as semiconductors in line with recovery in advanced economies.

Output of E&E rebounded 1.6% during the first seven months of 2012 mainly driven by the higher production of semiconductor devices (14.5%) as well as audio, visual and communication apparatus (6%). The improved performance of E&E was partly due to chip vendors and storage producers taking advantage of stable prices and supply of parts to replenish inventories as well as the launching of new products which was delayed by massive floods in Thailand during the fourth quarter of 2011. 

Despite the slowdown in global demand, E&E manufacturers continued to invest in new technology and product development to upscale the value chain. Approved capital spending in the E&E subsector amounted to RM1.72 billion in 46 projects, of which RM1.35 billion were from foreign investors. This further reaffirms Malaysia as an attractive and cost-efficient E&E manufacturing base in the region. The continued strong investments will further strengthen growth in the E&E subsector and create more skilled jobs.

Softening of world demand for solar panels impact Malaysia on it's downturn in small scale compared to China where it facing great impact. The decline in E&E products was also due to the weak global demand.

E&E has been instrumental in the development of the Northern Corridor Klang Valley, Johor and Sarawak, contributing significantly to the socio-economic development of the relevant communities.However, the E&E sector faces significant challenges in maintaining growth with intense competition from China, Taiwan, Singapore and other Asian countries. Over the last 10 years, E&E's share of Malaysian exports has gradually declined. 

Malaysia's E&E sector remains focused on assembly, the lower value-added part of the industry while Taiwan, South Korea and Singapore have captured the higher value-added activities in research and development, design and manufacturing. 

To propel the E&E industry to a higher level, under the Economic Transformation Programme (ETP) launched by the Government, a few sub-sectors namely integrated circuits, solar photovoltaics, light emitting diodes, and solid state lighting & integrated electronics have been identified for greater promotion based on their potential to contribute significantly towards Gross National Income (GNI) targets 2020.

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1998, the Subject is a Private Limited company, focusing on manufactured of printed circuit boards and electronic products. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. A paid up capital of MYR 4,940,000 allows the Subject to expand its business more comfortably. With a strong backing from its holding company, the Subject enjoys timely financial assistance should the needs arise. 

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 1,850 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. The Subject has a good  management capability. Its capable management team has enabled the Subject to keep its business on going. Hence, the future prospect of the Subject is bright. 

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at a favourable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term 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 335,368,792, the Subject should be able to maintain its business in the near terms. 

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. 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. 

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors. 

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market. 

Based on the above condition, we recommend credit be granted to the Subject promptly.

 



PROFIT AND LOSS ACCOUNT

 

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

CELESTICA MALAYSIA SDN. BHD.

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

2009-12-31

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

SUMMARY

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

882,639,145

671,214,049

647,273,292

591,671,636

394,479,894

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

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

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

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

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

Total Turnover

882,639,145

671,214,049

647,273,292

591,671,636

394,479,894

Costs of Goods Sold

(791,989,209)

(613,094,887)

-

-

-

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

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

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

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

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

Gross Profit

90,649,936

58,119,162

-

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

83,953,195

49,548,539

44,235,254

44,376,823

(6,603,101)

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

83,953,195

49,548,539

44,235,254

44,376,823

(6,603,101)

Taxation

(9,716,660)

(4,558,094)

(24,859)

(4,288,402)

3,755,710

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

74,236,535

44,990,445

44,210,395

40,088,421

(2,847,391)

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

256,192,257

211,201,812

166,991,417

126,902,996

129,750,387

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

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

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

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

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

As restated

256,192,257

211,201,812

166,991,417

126,902,996

129,750,387

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

330,428,792

256,192,257

211,201,812

166,991,417

126,902,996

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

330,428,792

256,192,257

211,201,812

166,991,417

126,902,996

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

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

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

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

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

 

 

 

 

 

 

 

BALANCE SHEET

 

CELESTICA MALAYSIA SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

68,569,751

69,695,004

64,158,259

60,650,526

65,875,052

Deferred assets

1,151,631

2,498,585

-

-

-

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,151,631

2,498,585

-

-

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

69,721,382

72,193,589

64,158,259

60,650,526

65,875,052

Stocks

169,962,749

155,710,864

-

87,709,531

89,728,686

Trade debtors

163,621,462

129,752,107

-

118,713,409

87,696,956

Other debtors, deposits & prepayments

1,803,274

2,888,941

-

3,907,025

2,163,415

Amount due from related companies

17,116,615

3,827,321

-

545,241

459,842

Cash & bank balances

103,185,921

47,795,783

-

63,933,007

33,298,450

Others

-

-

-

-

322,770

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

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

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

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

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

TOTAL CURRENT ASSETS

455,690,021

339,975,016

295,436,052

274,808,213

213,670,119

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

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

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

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

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

TOTAL ASSET

525,411,403

412,168,605

359,594,311

335,458,739

279,545,171

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

129,794,430

107,979,915

-

77,459,422

53,600,556

Other creditors & accruals

48,570,273

33,430,163

-

37,158,897

27,682,973

Amounts owing to related companies

549,528

2,284,929

-

40,360,824

59,656,582

Provision for taxation

3,739,403

524,156

-

1,630,640

-

Other liabilities

1,122,285

961,309

-

1,450,831

1,390,750

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

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

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

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

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

TOTAL CURRENT LIABILITIES

183,775,919

145,180,472

137,409,466

158,060,614

142,330,861

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

271,914,102

194,794,544

158,026,586

116,747,599

71,339,258

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

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

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

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

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

TOTAL NET ASSETS

341,635,484

266,988,133

222,184,845

177,398,125

137,214,310

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

4,940,000

4,940,000

4,940,000

4,940,000

4,940,000

Preference share capital

-

-

-

4,940,000

4,940,000

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

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

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

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

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

TOTAL SHARE CAPITAL

4,940,000

4,940,000

4,940,000

9,880,000

9,880,000

Retained profit/(loss) carried forward

330,428,792

256,192,257

211,201,812

166,991,417

126,902,996

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

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

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

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

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

TOTAL RESERVES

330,428,792

256,192,257

211,201,812

166,991,417

126,902,996

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

335,368,792

261,132,257

216,141,812

176,871,417

136,782,996

Others

6,266,692

5,855,876

-

526,708

431,314

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

6,266,692

5,855,876

6,043,033

526,708

431,314

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

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

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

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

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

341,635,484

266,988,133

222,184,845

177,398,125

137,214,310

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

CELESTICA MALAYSIA SDN. BHD.

 

TYPES OF FUNDS

Cash

103,185,921

47,795,783

-

63,933,007

33,298,450

Net Liquid Funds

103,185,921

47,795,783

-

63,933,007

33,298,450

Net Liquid Assets

101,951,353

39,083,680

158,026,586

29,038,068

(18,389,428)

Net Current Assets/(Liabilities)

271,914,102

194,794,544

158,026,586

116,747,599

71,339,258

Net Tangible Assets

341,635,484

266,988,133

222,184,845

177,398,125

137,214,310

Net Monetary Assets

95,684,661

33,227,804

151,983,553

28,511,360

(18,820,742)

BALANCE SHEET ITEMS

Total Borrowings

0

0

-

0

0

Total Liabilities

190,042,611

151,036,348

143,452,499

158,587,322

142,762,175

Total Assets

525,411,403

412,168,605

359,594,311

335,458,739

279,545,171

Net Assets

341,635,484

266,988,133

222,184,845

177,398,125

137,214,310

Net Assets Backing

335,368,792

261,132,257

216,141,812

176,871,417

136,782,996

Shareholders' Funds

335,368,792

261,132,257

216,141,812

176,871,417

136,782,996

Total Share Capital

4,940,000

4,940,000

4,940,000

9,880,000

9,880,000

Total Reserves

330,428,792

256,192,257

211,201,812

166,991,417

126,902,996

LIQUIDITY (Times)

Cash Ratio

0.56

0.33

-

0.40

0.23

Liquid Ratio

1.55

1.27

-

1.18

0.87

Current Ratio

2.48

2.34

2.15

1.74

1.50

WORKING CAPITAL CONTROL (Days)

Stock Ratio

70

85

-

54

83

Debtors Ratio

68

71

-

73

81

Creditors Ratio

60

64

-

48

50

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

-

0.00

0.00

Liabilities Ratio

0.57

0.58

0.66

0.90

1.04

Times Interest Earned Ratio

0.00

0.00

-

0.00

0.00

Assets Backing Ratio

69.16

54.05

44.98

17.96

13.89

PERFORMANCE RATIO (%)

Operating Profit Margin

9.51

7.38

6.83

7.50

(1.67)

Net Profit Margin

8.41

6.70

6.83

6.78

(0.72)

Return On Net Assets

24.57

18.56

19.91

25.02

(4.81)

Return On Capital Employed

24.57

18.56

19.91

25.02

(4.81)

Return On Shareholders' Funds/Equity

22.14

17.23

20.45

22.67

(2.08)

Dividend Pay Out Ratio (Times)

0.00

0.00

-

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

-

0

0


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.39

UK Pound

1

Rs.98.00

Euro

1

Rs.76.99

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 


 

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.