MIRA INFORM REPORT

 

 

Report Date :

24.09.2014

 

IDENTIFICATION DETAILS

 

Name :

BASF (MALAYSIA) SDN. BHD.

 

 

Formerly Known As :

PAYA SERAI SDN BHD (10/10/1989)

 

 

Registered Office :

The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Level 18, 59200 Kuala Lumpur, Wilayah Persekutuan,

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

01.06.1989

 

 

Com. Reg. No.:

182671-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Polystyrene and Engineered Plastic Products

 

 

No. of Employees :

400

 

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.

:

182671-M

COMPANY NAME

:

BASF (MALAYSIA) SDN. BHD.

FORMER NAME

:

PAYA SERAI SDN BHD (10/10/1989)

INCORPORATION DATE

:

01/06/1989

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

2, JALAN ASTAKA U8/87, SEKSYEN U8, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-56283888

FAX.NO.

:

03-56283777

WEB SITE

:

WWW.BASF.COM

CONTACT PERSON

:

WONG KAR YEE ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

20131

PRINCIPAL ACTIVITY

:

MANUFACTURING OF POLYSTYRENE AND ENGINEERED PLASTIC PRODUCTS

AUTHORISED CAPITAL

:

MYR 112,000,000.00 DIVIDED INTO
ORDINARY SHARE 110,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 2,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 111,200,000.00 DIVIDED INTO
ORDINARY SHARES 109,500,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 1,700,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 1,089,559,486 [2013]

NET WORTH

:

MYR 260,665,830 [2013]

M1000 OVERALL RANKING

:

405[2011]

M1000 INDUSTRY RANKING

:

23[2011]

 

 

 

STAFF STRENGTH

:

400 - GROUP [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

TRACED

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

PROMPT

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) manufacturing of polystyrene and engineered plastic 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

2004

 

OVERALL RANKING

405

244

243

301

381

 

INDUSTRY RANKING

23

13

12

13

11

 

 

The immediate holding company of the Subject is BASF BETEILIGUNGSGESELLSCHAFT MBH, a company incorporated in GERMANY.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 112,000,000.00

MYR 111,200,000.00

28/11/1997

MYR 110,000,000.00

MYR 109,500,000.00

30/07/1993

MYR 104,500,000.00

MYR 104,500,000.00

23/10/1992

MYR 100,000,000.00

MYR 100,000,000.00

06/05/1992

MYR 100,000,000.00

MYR 75,000,000.00

17/02/1992

MYR 100,000,000.00

MYR 60,000,000.00

30/01/1992

MYR 100,000,000.00

MYR 50,000,000.00

04/07/1991

MYR 100,000,000.00

MYR 40,000,000.00

03/06/1991

MYR 100,000,000.00

MYR 30,000,000.00

20/05/1991

MYR 100,000,000.00

MYR 20,000,000.00

20/02/1991

MYR 100,000,000.00

MYR 18,000,000.00

24/01/1990

MYR 4,500,000.00

MYR 4,500,000.00

12/12/1989

MYR 4,500,000.00

MYR 2,500,000.00

01/06/1989

MYR 25,000.00

MYR 2.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

BASF BETEILIGUNGSGESELLSCHAFT MBH
[ORD: 109,500,000 & PREF: 1,700,000]

CARL-BOSCH-STRASSE 38, LUDWIGSHAFEN, 67056, GERMANY.

0084

111,200,000.00

100.00

 

 

 

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

------

 

 

 

111,200,000.00

100.00

 

 

 

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

=====

 

 

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. CINDY WONG KAR YEE

Address

:

7, JALAN SS18/5D, PETALING JAYA, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

690925-10-5164

Date of Birth

:

25/09/1969

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

02/08/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

DANIEL LOH HONG CHYE

Address

:

UNIT 8-05, MONT' KIARA DAMAI, 3, JALAN KIARA 2, MONT' KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

E2426203L

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/07/2011

Remark

:

MANAGING DIRECTOR

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

DEAN TREVOR DRAPER

Address

:

52 ORIOLE CRESCENT, SINGAPORE 288643, SINGAPORE.

IC / PP No

:

E4053812

 

 

 

 

 

 

 

 

 

Nationality

:

AUSTRALIAN



MANAGEMENT

 

 

 

1)

Name of Subject

:

WONG KAR YEE

 

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

KPMG TOWER, 8, FIRST AVENUE, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CINDY WONG KAR YEE

 

 

 

 

 

New IC No

:

690925-10-5164

 

Address

:

7, JALAN SS18/5D, PETALING JAYA, 47500 SUBANG JAYA, SELANGOR, 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.

 

DEFAULTER

Defaulter

:

BASF(MALAYSIA) SDN BHD

(182671M)

Last Followup Date

:

21/11/2012

Amount Default

:

MYR 2,042.71

Full Settlement

:

No

Type of Debt

:

Goods Sold / Services Rendered

Status

:

CP

Remark

:

recive fax resit and full settle

 

NOTE

:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

 


PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

60%

Overseas

:

YES

Percentage

:

40%

Import Countries

:

ASIA,SINGAPORE


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

Percentage

:

60%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

40%

Export Market

:

AUSTRALIA

NEW ZEALAND

CANADA

SAUDI ARABIA

UNITED ARAB EMIRATES

ASIA

Credit Term

:

30 - 90 DAYS

 

 

 

 

 

 

Payment Mode

:

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

POLYSTYRENE AND ENGINEERED PLASTIC PRODUCTS

 

 

 

Competitor(s)

:

TORAY BASF PBT RESIN SDN BHD

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)

MALAYSIAN RUBBER GLOVE MANUFACTURERS ASSOCIATION (MRGMA)

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

SMALL & MEDIUM ENTERPRISE

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Factory / Premises

:

LOT 143, JALAN CECAIR, FREE TRADE ZONE JOHOR PORT, 81700 PASIR GUDANG, JOHOR, MALAYSIA.
Tel No: 07-2535000
Fax No: 07-2518194

 

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

 

 

GROUP

400

400

400

400

400

 

 

 

 

 

360

360

383

360

 

 

 

 

 

 

Branch

:

YES

 

No of Branches

:

2

 

 

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of polystyrene and engineered plastic products.

The Subject is a major producer of expandable polystyrene and engineered plastic products.

The plant, located at Pasir Gudang, Johor is for the production of expandable polystyrene (EPS) better known as Styropor and is also producing Tamol, a superplasticier used in the construction industry.

According to the Subject, its expandable polystyrene is also used for packaging products.

Besides, the plant is also producing Ultramid Polyamide and Ultradur for applications in the automotive, electric and electronic industries.

The Subject's plant is equipped with both automated and semi-automated machinery.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-56283888

Match

:

N/A

 

 

 

Address Provided by Client

:

2, JALAN ASTAKA U8/87, SEKSYEN U8, BUKIT JELUTONG,40150,SHAH ALAM,SELANGOR.

Current Address

:

2, JALAN ASTAKA U8/87, SEKSYEN U8, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Acceptable

[

10.59%

]

 

Return on Net Assets

:

Acceptable

[

13.35%

]

 

 

 

 

 

 

 

 

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 Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

46 Days

]

 

Debtor Ratio

:

Favourable

[

32 Days

]

 

Creditors Ratio

:

Favourable

[

9 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.06 Times

]

 

Current Ratio

:

Unfavourable

[

1.76 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

:

Favourable

[

31.76 Times

]

 

Gearing Ratio

:

Favourable

[

0.03 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

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

20131 : Manufacture of plastic in primary forms

 

 

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 1989, the Subject is a Private Limited company, focusing on manufacturing of polystyrene and engineered plastic products. 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. 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 established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. The Subject is a fairly large and rapidly growing company with over 400 staff in its 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.

Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Return on shareholders' funds of the Subject was at an acceptable 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 lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 260,665,830, 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)

BASF (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

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

1,089,559,486

1,477,489,721

1,349,357,436

1,112,435,083

888,013,619

 

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

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

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

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

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

Total Turnover

1,089,559,486

1,477,489,721

1,349,357,436

1,112,435,083

888,013,619

Costs of Goods Sold

(908,135,131)

(1,257,450,719)

(1,180,349,254)

(956,250,923)

(723,906,635)

 

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

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

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

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

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

Gross Profit

181,424,355

220,039,002

169,008,182

156,184,160

164,106,984

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

33,704,946

3,191,535

8,132,082

7,204,395

33,737,569

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

33,704,946

3,191,535

8,132,082

7,204,395

33,737,569

Taxation

(6,096,527)

(283,442)

(343,625)

(1,790,875)

(8,151,853)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

27,608,419

2,908,093

7,788,457

5,413,520

25,585,716

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

38,557,411

47,430,979

39,642,522

73,688,442

48,102,726

 

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

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

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

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

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

As restated

38,557,411

47,430,979

39,642,522

73,688,442

48,102,726

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

66,165,830

50,339,072

47,430,979

79,101,962

73,688,442

TRANSFER TO RESERVES - General

-

(11,781,661)

-

-

-

DIVIDENDS - Ordinary (paid & proposed)

-

-

-

(20,600,000)

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

66,165,830

38,557,411

47,430,979

58,501,962

73,688,442

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Lease interest

-

871

1,294

-

-

Term loan / Borrowing

1,095,787

1,062,519

892,456

-

-

Others

-

-

-

764,996

719,461

 

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

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

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

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

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

 

1,095,787

1,063,390

893,750

764,996

719,461

 

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

BASF (MALAYSIA) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

105,101,531

104,798,118

111,781,682

110,898,504

114,797,143

 

 

 

 

 

 

Deferred assets

3,601,000

2,257,000

-

386,000

129,000

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

3,601,000

2,257,000

-

386,000

129,000

 

 

 

 

 

 

Others

1,911,283

2,389,104

2,866,924

-

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

1,911,283

2,389,104

2,866,924

-

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

110,613,814

109,444,222

114,648,606

111,284,504

114,926,143

 

 

 

 

 

 

Stocks

138,713,224

176,369,182

141,805,018

130,727,384

89,378,074

Trade debtors

96,161,503

133,459,681

136,919,045

96,687,506

88,753,741

Other debtors, deposits & prepayments

8,648,735

14,009,267

8,821,086

3,910,370

4,917,418

Short term deposits

10,945

3,877,247

1,210,372

-

77,184,000

Amount due from holding company

1,529,320

2,399,568

5,105,993

13,613,184

-

Amount due from related companies

87,228,096

89,785,979

122,560,594

97,685,829

85,076,409

Cash & bank balances

4,217,765

9,092,780

13,544,944

36,203,386

13,461,298

Others

10,513,031

9,361,973

1,227,435

1,695,558

2,736,666

 

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

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

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

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

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

TOTAL CURRENT ASSETS

347,022,619

438,355,677

431,194,487

380,523,217

361,507,606

 

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

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

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

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

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

TOTAL ASSET

457,636,433

547,799,899

545,843,093

491,807,721

476,433,749

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

22,563,925

37,565,824

25,031,511

19,507,014

14,722,585

Other creditors & accruals

21,278,747

27,347,760

32,201,592

31,653,810

22,568,870

Hire purchase & lease creditors

-

-

27,662

-

-

Bank overdraft

1,944,092

300

3,531

-

-

Short term borrowings/Term loans

-

13,000,000

-

11,400,000

-

Other borrowings

7,011,089

27,545,879

77,080,828

-

-

Other liabilities & accruals

-

-

-

-

238,372

Amounts owing to holding company

17,234,703

18,685,591

10,790,739

10,025,377

-

Amounts owing to related companies

124,652,047

169,452,317

170,294,680

166,219,558

103,435,351

Provision for taxation

-

-

-

-

1,382,473

Other liabilities

2,286,000

21,144,817

-

-

64,990,656

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

196,970,603

314,742,488

315,430,543

238,805,759

207,338,307

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

150,052,016

123,613,189

115,763,944

141,717,458

154,169,299

 

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

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

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

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

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

TOTAL NET ASSETS

260,665,830

233,057,411

230,412,550

253,001,962

269,095,442

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

111,200,000

111,200,000

111,200,000

111,200,000

111,200,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

111,200,000

111,200,000

111,200,000

111,200,000

111,200,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

83,300,000

83,300,000

83,300,000

83,300,000

83,300,000

Retained profit/(loss) carried forward

66,165,830

38,557,411

47,430,979

58,501,962

73,688,442

Others

-

-

(11,781,661)

-

-

 

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

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

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

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

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

TOTAL RESERVES

149,465,830

121,857,411

118,949,318

141,801,962

156,988,442

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

260,665,830

233,057,411

230,149,318

253,001,962

268,188,442

 

 

 

 

 

 

Lease obligations

-

-

86,232

-

-

Deferred taxation

-

-

177,000

-

907,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

-

263,232

-

907,000

 

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

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

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

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

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

 

260,665,830

233,057,411

230,412,550

253,001,962

269,095,442

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

BASF (MALAYSIA) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

4,228,710

12,970,027

14,755,316

36,203,386

90,645,298

Net Liquid Funds

2,284,618

12,969,727

14,751,785

36,203,386

90,645,298

Net Liquid Assets

11,338,792

(52,755,993)

(26,041,074)

10,990,074

64,791,225

Net Current Assets/(Liabilities)

150,052,016

123,613,189

115,763,944

141,717,458

154,169,299

Net Tangible Assets

258,754,547

230,668,307

227,545,626

253,001,962

269,095,442

Net Monetary Assets

11,338,792

(52,755,993)

(26,304,306)

10,990,074

63,884,225

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

8,955,181

40,546,179

77,198,253

11,400,000

0

Total Liabilities

196,970,603

314,742,488

315,693,775

238,805,759

208,245,307

Total Assets

457,636,433

547,799,899

545,843,093

491,807,721

476,433,749

Net Assets

260,665,830

233,057,411

230,412,550

253,001,962

269,095,442

Net Assets Backing

260,665,830

233,057,411

230,149,318

253,001,962

268,188,442

Shareholders' Funds

260,665,830

233,057,411

230,149,318

253,001,962

268,188,442

Total Share Capital

111,200,000

111,200,000

111,200,000

111,200,000

111,200,000

Total Reserves

149,465,830

121,857,411

118,949,318

141,801,962

156,988,442

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.02

0.04

0.05

0.15

0.44

Liquid Ratio

1.06

0.83

0.92

1.05

1.31

Current Ratio

1.76

1.39

1.37

1.59

1.74

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

46

44

38

43

37

Debtors Ratio

32

33

37

32

36

Creditors Ratio

9

11

8

7

7

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.03

0.17

0.34

0.05

0.00

Liabilities Ratio

0.76

1.35

1.37

0.94

0.78

Times Interest Earned Ratio

31.76

4.00

10.10

10.42

47.89

Assets Backing Ratio

2.33

2.07

2.05

2.28

2.42

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

3.09

0.22

0.60

0.65

3.80

Net Profit Margin

2.53

0.20

0.58

0.49

2.88

Return On Net Assets

13.35

1.83

3.92

3.15

12.80

Return On Capital Employed

13.16

1.81

3.87

3.15

12.80

Return On Shareholders' Funds/Equity

10.59

1.25

3.38

2.14

9.54

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

3.81

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.87

UK Pound

1

Rs.99.63

Euro

1

Rs.78.22

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.