MIRA INFORM REPORT

 

 

Report Date :

18.09.2014              

 

IDENTIFICATION DETAILS

 

Name :

KANEKA EPERAN SDN. BHD.

 

 

Registered Office :

Lot 123-124, Jalan Gebeng 2/3, Gebeng Industrial Estates, 26080 Kuantan, Pahang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

12.07.1996

 

 

Com. Reg. No.:

393957-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturer of Foams

 

 

No. of Employees :

50

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 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.

:

393957-K

COMPANY NAME

:

KANEKA EPERAN SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

12/07/1996

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LOT 123-124, JALAN GEBENG 2/3, GEBENG INDUSTRIAL ESTATES, 26080 KUANTAN, PAHANG, MALAYSIA.

BUSINESS ADDRESS

:

LOT 123-124, JALAN GEBENG 2/3, GEBENG INDUSTRIAL ESTATE, 26080 KUANTAN, PAHANG, MALAYSIA.

TEL.NO.

:

09-5826000

FAX.NO.

:

09-5837777

CONTACT PERSON

:

MASAHIRO KOZAI ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

22203

PRINCIPAL ACTIVITY

:

MANUFACTURER OF FOAMS

AUTHORISED CAPITAL

:

MYR 20,000,000.00 DIVIDED INTO
ORDINARY SHARE 20,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 16,000,000.00 DIVIDED INTO
ORDINARY SHARES 16,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 38,561,523 [2013]

NET WORTH

:

MYR 42,182,627 [2013]

 

 

 

STAFF STRENGTH

:

50 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

HISTORY / BACKGROUND

 

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

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

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

The immediate holding company of the Subject is KANEKA CORPORATION, a company incorporated in JAPAN.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/09/2011

MYR 20,000,000.00

MYR 16,000,000.00

31/03/1997

MYR 12,000,000.00

MYR 12,000,000.00

28/02/1997

MYR 12,000,000.00

MYR 10,800,000.00

15/08/1996

MYR 12,000,000.00

MYR 1,000,000.00

12/07/1996

MYR 12,000,000.00

MYR 3.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

KANEKA CORPORATION

3-2-4, NAKANOSHIMA KITA-KU, OSAKA, 5308288, JAPAN.

XLZ000006873

16,000,000.00

100.00

 

 

 

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

------

 

 

 

16,000,000.00

100.00

 

 

 

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

=====

 

 

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. MASAHIRO KOZAI

Address

:

LOT 123-124 JALAN GEBENG 2/3,, GEBENG INDUSTRIAL ESTATE, 26080 KUANTAN, PAHANG, MALAYSIA.

IC / PP No

:

TH2721575

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

02/04/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

IKUO AOI

Address

:

A-503, MARINE CITY, KANAZAWABUNKO, 391, SHIBAMACHI,KANAZAWA-WARD, YOKOHAMA-CITY, KANAGAWA-PREFECTURE, JAPAN, JAPAN.

IC / PP No

:

TG7110778

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

31/03/2014

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. KOKI TAKAHASHI

Address

:

A-6-3, TIFFANI KIARA, 1, CHANGKAT DUTA KIARA, OFF JALAN DUTA KIARA, MONT' KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

TK6809284

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

31/03/2014



MANAGEMENT

 

 

 

1)

Name of Subject

:

MASAHIRO KOZAI

 

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

KPMG TOWER, 8, BANDAR UTAMA, 1ST FLOOR, LEVEL 10, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 


 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SEOW SIEW CHAN

 

IC / PP No

:

A1414783

 

New IC No

:

690816-06-5300

 

Address

:

A-5644, LORONG ALOR AKAR 25, 25250 KUANTAN, PAHANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

LEGAL CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


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

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


PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 


The Subject refused to 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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

BEADS FOAMS

 

 

 

Award

:

1 ) ISO/ TS 16949 : 2002 Year :2005
2 ) MS ISO 9001 : 2000 Year :2002

 

 

 

 

 

Competitor(s)

:

CAMEL FOAM INDUSTRIES SDN BHD
GRAND PLATFORM (M) SDN BHD
ODYSSEY TECHNOLOGIES (MALAYSIA) SDN BHD
POWER FOAM INDUSTRIES SDN BHD
VARIOUS RESOURCES (M) SDN BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

50

50

50

54

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


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

The Subject mainly focuses on manufacturing polyethylene polypropylene beads foams.

The Subject utilizes advanced automated and semi-automated machineries to ensure production of high quality products.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

09-5826000

Match

:

N/A

 

 

 

Address Provided by Client

:

SUITE 1502, 15TH FLOOR, CENTRE POINT SOUTH, MID VALLEY CITY LINGKARAN SYED PUTRA 59200 KUALA LUMPUR

Current Address

:

LOT 123-124, JALAN GEBENG 2/3, GEBENG INDUSTRIAL ESTATE, 26080 KUANTAN, PAHANG, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 18th September 2014 we contacted one of the staff from the Subject's Company Secretary and she provided some information.

We tried to contact the Subject numerous ocassions but not answered. Therefore we contacted the Subject's Company Secretary.

She is not aware of the address provided.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Unfavourable

[

4.87%

]

 

Return on Net Assets

:

Unfavourable

[

6.88%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

96 Days

]

 

Debtor Ratio

:

Favourable

[

32 Days

]

 

Creditors Ratio

:

Favourable

[

7 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

:

Favourable

[

10.13 Times

]

 

Current Ratio

:

Favourable

[

13.47 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 :

 

 

 

 

 

 

Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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 : FAIR

 

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

28,876

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

21,984

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

12.3

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.1

2.4

5.8

1.3

2.1

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

(6.5)

(0.3)

(5.4)

1.0

0.7

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 #

(9.0)

11.9

4.7

4.8

3.5

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.0)

12.7

18.6

Rubber Products

(10.1)

25.3

20.7

3.0

8.2

Wood Products

(24.1)

20.1

(5.1)

8.7

(3.1)

Textiles & Apparel

(19.5)

(0.4)

13.2

(7.1)

(2.6)

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.8

2.7

3.6

Chemical & Chemical Products

(7.7)

16.2

10.0

10.8

(0.7)

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.2

(6.6)

3.4

Fabricated Metal Products

(2.5)

14.9

21.8

13.8

12.2

Non-metallic Mineral

(15.5)

20.2

12.1

2.9

(0.4)

Transport Equipment

(13.5)

36.5

12.0

3.4

13.8

Paper & Paper Products

(5.0)

18.7

9.5

3.1

2.3

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

6.2

11.4

4.7

18.6

10.9

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

2.9

7.4

7.1

6.4

5.9

Electric, Gas & Water

1.4

7.8

3.5

4.4

4.2

Transport, Storage & Communication

1.6

7.7

6.5

7.1

7.3

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

4.7

5.9

Finance, Insurance & Real Estate

3.8

6.1

6.9

9.7

3.7

Government Services

3.4

5.9

12.4

9.4

8.3

Other Services

3.8

4.4

5.1

3.9

5.1

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

22203 : Manufacture of plastic articles for the packing of goods

 

 

INDUSTRY :

MANUFACTURING

 

 

 

The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domesticoriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand.

 

Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first sevenmonths of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domesticoriented industries continued to expand 8.6% while export-oriented industries grew 4.1%.

 

According to the Department of Statistics, the sales value of the Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion) to record RM52.4 billion as compared to RM48.8 billion reported in year 2012. Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2 billion) as compared with the preceding month. The sales value in December 2012 has been revised positive 7.5% year-on-year to record RM52.6 billion.

 

Output of rubber products increased 3.6% in the first seven month of 2012 mainly supported by continuous demand for rubber gloves. Output of rubber gloves grew 5.9% on account of the expansion in the global healthcare industry and wider usage of gloves in other sectors. Similarly, output of catheters, especially for use in medical appliances, also registered a strong growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in tandem with slowing external demand from the automotive industry, especially China.

 

Meanwhile, production of wood and wood products rebounded 4.6% largely supported by higher demand for wooden and cane furniture (33.5%). The positive performance was attributed to vibrant higher demand from major export destinations such as China and the United States (US) for Malaysian-made furniture. Demand from China accelerated further following the country’s rising income level and the implementation of zero import duty on Malaysian made-furniture. Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.

 

The output of chemicals and chemical products rose 9.9% in the first seven month of year 2012 on account of increasing demand for plastic products (11.8%) and basic chemicals (11.1%). External demand for plastic packaging materials surged during the early part of the year 2012, particularly from Japan and Thailand, as manufacturers resumed operations, which were interrupted by natural calamities and power outages. Chemical production are expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.

 

Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such assolar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1996, the Subject is a Private Limited company, focusing on manufacturer of foams. 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. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. 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. The Subject is operating on a medium scale and it has approximately 50 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to the Subject.

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. 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 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 42,182,627, 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.

We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days.

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.

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)

KANEKA EPERAN SDN. BHD.

 

Financial Year End

2013-03-31

2012-03-31

2011-03-31

2010-03-31

2009-03-31

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

FULL

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

38,561,523

37,248,589

44,200,328

40,323,770

41,465,640

Other Income

-

-

630,799

256,760

-

 

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

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

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

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

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

Total Turnover

38,561,523

37,248,589

44,831,127

40,580,530

41,465,640

Costs of Goods Sold

(25,656,029)

(26,081,654)

(30,179,038)

(26,150,436)

-

 

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

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

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

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

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

Gross Profit

12,905,494

11,166,935

14,652,089

14,430,094

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

2,900,807

1,888,090

2,654,573

2,921,309

2,196,690

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

2,900,807

1,888,090

2,654,573

2,921,309

2,196,690

Taxation

(844,454)

(478,203)

(576,121)

(1,333,015)

(610,456)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

2,056,353

1,409,887

2,078,452

1,588,294

1,586,234

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

24,958,274

24,588,387

23,309,935

22,521,641

22,295,407

Prior year adjustment

-

(1,040,000)

-

-

-

 

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

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

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

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

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

As restated

24,958,274

23,548,387

23,309,935

22,521,641

22,295,407

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

27,014,627

24,958,274

25,388,387

24,109,935

23,881,641

DIVIDENDS - Ordinary (paid & proposed)

(832,000)

-

(800,000)

(800,000)

(1,360,000)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

26,182,627

24,958,274

24,588,387

23,309,935

22,521,641

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

KANEKA EPERAN SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

4,118,328

5,115,597

6,418,358

7,830,468

10,101,025

 

 

 

 

 

 

Deferred assets

196,109

138,535

80,175

160,946

-

Others

-

17,834

20,896

53,096

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

196,109

156,369

101,071

214,042

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

4,314,437

5,271,966

6,519,429

8,044,510

10,101,025

 

 

 

 

 

 

Stocks

10,130,432

6,257,953

5,762,972

6,966,483

-

Trade debtors

3,418,049

4,625,906

5,345,790

4,825,825

-

Other debtors, deposits & prepayments

287,913

667,563

412,504

195,466

-

Amount due from holding company

-

-

21,598,723

12,205,007

-

Amount due from related companies

21,499,387

19,304,007

-

-

-

Cash & bank balances

5,535,557

7,536,350

4,424,533

11,345,109

-

Others

33,785

441,176

243,087

219,423

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

40,905,123

38,832,955

37,787,609

35,757,313

31,746,453

 

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

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

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

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

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

TOTAL ASSET

45,219,560

44,104,921

44,307,038

43,801,823

41,847,478

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

494,297

547,761

791,376

691,969

-

Other creditors & accruals

1,190,024

1,144,088

1,045,401

2,117,998

-

Bank overdraft

-

-

1,238

33,919

-

Amounts owing to holding company

632,427

798,133

1,880,636

1,648,002

-

Amounts owing to related companies

646,617

656,665

-

-

-

Other liabilities

73,568

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

3,036,933

3,146,647

3,718,651

4,491,888

3,325,837

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

37,868,190

35,686,308

34,068,958

31,265,425

28,420,616

 

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

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

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

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

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

TOTAL NET ASSETS

42,182,627

40,958,274

40,588,387

39,309,935

38,521,641

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

16,000,000

16,000,000

16,000,000

16,000,000

16,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

16,000,000

16,000,000

16,000,000

16,000,000

16,000,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

26,182,627

24,958,274

24,588,387

23,309,935

22,521,641

 

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

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

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

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

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

TOTAL RESERVES

26,182,627

24,958,274

24,588,387

23,309,935

22,521,641

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

42,182,627

40,958,274

40,588,387

39,309,935

38,521,641

 

 

 

 

 

 

 

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

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

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

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

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

 

42,182,627

40,958,274

40,588,387

39,309,935

38,521,641

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

KANEKA EPERAN SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

5,535,557

7,536,350

4,424,533

11,345,109

-

Net Liquid Funds

5,535,557

7,536,350

4,423,295

11,311,190

-

Net Liquid Assets

27,737,758

29,428,355

28,305,986

24,298,942

28,420,616

Net Current Assets/(Liabilities)

37,868,190

35,686,308

34,068,958

31,265,425

28,420,616

Net Tangible Assets

42,182,627

40,958,274

40,588,387

39,309,935

38,521,641

Net Monetary Assets

27,737,758

29,428,355

28,305,986

24,298,942

28,420,616

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

1,238

33,919

-

Total Liabilities

3,036,933

3,146,647

3,718,651

4,491,888

3,325,837

Total Assets

45,219,560

44,104,921

44,307,038

43,801,823

41,847,478

Net Assets

42,182,627

40,958,274

40,588,387

39,309,935

38,521,641

Net Assets Backing

42,182,627

40,958,274

40,588,387

39,309,935

38,521,641

Shareholders' Funds

42,182,627

40,958,274

40,588,387

39,309,935

38,521,641

Total Share Capital

16,000,000

16,000,000

16,000,000

16,000,000

16,000,000

Total Reserves

26,182,627

24,958,274

24,588,387

23,309,935

22,521,641

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

1.82

2.40

1.19

2.53

-

Liquid Ratio

10.13

10.35

8.61

6.41

-

Current Ratio

13.47

12.34

10.16

7.96

9.55

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

96

61

48

63

-

Debtors Ratio

32

45

44

44

-

Creditors Ratio

7

8

10

10

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

-

Liabilities Ratio

0.07

0.08

0.09

0.11

0.09

Times Interest Earned Ratio

0.00

0.00

0.00

0.00

-

Assets Backing Ratio

2.64

2.56

2.54

2.46

2.41

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

7.52

5.07

6.01

7.24

5.30

Net Profit Margin

5.33

3.79

4.70

3.94

3.83

Return On Net Assets

6.88

4.61

6.54

7.43

5.70

Return On Capital Employed

6.88

4.61

6.54

7.43

5.70

Return On Shareholders' Funds/Equity

4.87

3.44

5.12

4.04

4.12

Dividend Pay Out Ratio (Times)

0.40

0.00

0.38

0.50

0.86

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.95

UK Pound

1

Rs.99.32

Euro

1

Rs.78.96

 

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%)

 

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.