MIRA INFORM REPORT

 

 

Report No. :

316522

Report Date :

09.04.2015

 

IDENTIFICATION DETAILS

 

Name :

ROBIN RESOURCES (MALAYSIA) SDN. BHD.

 

 

Registered Office :

1, Jalan Industri 5, Taman Perindustrian Temerloh, 28400 Mentakab, Pahang

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

07.02.1994

 

 

Com. Reg. No.:

289258-U

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Subject is engaged in the manufacturing of medium density fibre boards & other wood-based products.

 

 

No. of Employees :

300 [2015]

 

 

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 :

Good

Payment Behaviour :

Regular

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

 

 

 

 

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.

:

289258-U

COMPANY NAME

:

ROBIN RESOURCES (MALAYSIA) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/02/1994

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

1, JALAN INDUSTRI 5, TAMAN PERINDUSTRIAN TEMERLOH, 28400 MENTAKAB, PAHANG, MALAYSIA.

BUSINESS ADDRESS

:

1, JALAN INDUSTRI 5, TAMAN PERINDUSTRIAN TEMERLOH, 28400 MENTAKAB, PAHANG, MALAYSIA.

TEL.NO.

:

09-2719000

FAX.NO.

:

09-2719100

EMAIL

:

CONTACT@ROBINMDF.COM

WEB SITE

:

WWW.ROBINMDF.COM

CONTACT PERSON

:

CHUA PHAU TEE ( MANAGING DIRECTOR )

INDUSTRY CODE

:

16212

PRINCIPAL ACTIVITY

:

MANUFACTURING OF MEDIUM DENSITY FIBRE BOARDS & OTHER WOOD-BASED PRODUCTS

AUTHORISED CAPITAL

:

MYR 100,000,000.00 DIVIDED INTO 
ORDINARY SHARE 100,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 61,000,000.00 DIVIDED INTO 
ORDINARY SHARES 55,000,000 CASH AND 6,000,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 204,219,999 [2014]

NET WORTH

:

MYR 135,977,400 [2014]

M1000 OVERALL RANKING

:

984[2009]

M1000 INDUSTRY RANKING

:

18[2009]

STAFF STRENGTH

:

300 [2015]

BANKER (S)

:

AMBANK (M) BHD
AMMERCHANT BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

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 medium density fibre boards & other wood-based 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

2009

OVERALL RANKING

984

INDUSTRY RANKING

18

 

The immediate holding company of the Subject is ROBINA RESOURCES (PTE) LTD, a company incorporated in SINGAPORE.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

13/12/2012

MYR 100,000,000.00

MYR 61,000,000.00

02/03/1995

MYR 100,000,000.00

MYR 55,000,000.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

ROBINA RESOURCES (PTE) LTD

80, MARINE PARADE, 18-01, PARKWAY PARADE, 1544, SINGAPORE.

XLZ000000726

61,000,000.00

100.00

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

------

61,000,000.00

100.00

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

=====

 

+ Also Director

 

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



Local No

Country

Company

(%)

As At

648581A

MALAYSIA

ROBINA PLANTATION SDN. BHD.

100.00

26/11/2014

515352A

MALAYSIA

ROBINA FLOORING SDN. BHD.

100.00

26/11/2014


 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

JASON LOH HUAI CHIEH @ LUO HUAIJIE

Address

:

5, AVON ROAD, 439783, SINGAPORE.

IC / PP No

:

S7712768B

Nationality

:

SINGAPOREAN

Date of Appointment

:

22/09/2010

 

DIRECTOR 2

 

Name Of Subject

:

TEOH CHENG KANG

Address

:

1, JALAN INDUSTRI 5, TAMAN PERINDUSTRIAN TEMERLOH, 28400 MENTAKAB, PAHANG, MALAYSIA.

IC / PP No

:

S2004888C

Nationality

:

SINGAPOREAN

Date of Appointment

:

22/08/1994

 

DIRECTOR 3

 

Name Of Subject

:

LOH JU FERN

Address

:

9, PALM ROAD, 456444, SINGAPORE.

IC / PP No

:

2006516

Nationality

:

SINGAPOREAN

Date of Appointment

:

23/02/1994

 

DIRECTOR 4

 

Name Of Subject

:

ROBBY LOH TSE KANG

Address

:

5, AVON ROAD, 439783, SINGAPORE.

IC / PP No

:

S0074304F

Nationality

:

SINGAPOREAN

Date of Appointment

:

07/02/1994

 

DIRECTOR 5

 

Name Of Subject

:

CHUA PHAU TEE

Address

:

1, JALAN INDUSTRI 5, TAMAN PERINDUSTRIAN, TEMERLOH, MENTAKAB, 28400 MENTAKAB, PAHANG, MALAYSIA.

IC / PP No

:

S0570703Z

Nationality

:

SINGAPOREAN

Date of Appointment

:

22/08/1994

 

MANAGEMENT

 

 

1)

Name of Subject

:

CHUA PHAU TEE

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

MOK YOW KONG

Position

:

FINANCE MANAGER

 

3)

Name of Subject

:

ALBERT YAN

Position

:

BUSINESS DEVELOPMENT MANAGER

 

AUDITOR

 

Auditor

:

RSM ROBERT TEO,KUAN & CO.

Auditor' Address

:

WISMA RKT, BLOCK A, 2, JALAN RAJA ABDULLAH, OFF JALAN SULTAN ISMAIL, 1ST FLOOR, 50300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ENG BEE HONG

IC / PP No

:

8254998

New IC No

:

570809-71-5006

Address

:

15, JALAN ANGGERIK ERIA 31/104A, KOTA KEMUNING, SEKSYEN 31, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

AMBANK (M) BHD

 

2)

Name

:

AMMERCHANT BANK BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

16/03/1995

N/A

MALAYSIAN INTERNATIONAL MERCHANT BANKERS BERHAD

MYR 128,000,000.00

Satisfied

2

18/09/2001

N/A

ARABMALAYSIAN MERCHANT BANK BERHAD

MYR 86,738,000.00

Satisfied

3

17/03/2005

CREDIT FACILITIES AGREEMENT

AMMERCHANT BANK BERHAD

MYR 49,580,000.00

Satisfied

4

08/04/2005

A TRADELINES FACILITIES AGREEMENT, A DEBENTURE, A CHARGE

AMMERCHANT BANK BERHAD

MYR 66,080,000.00

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

Overseas

:

YES

Import Countries

:

EUROPE,JAPAN,CHINA



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

:

MIDDLE EAST

SOUTHEAST ASIA

AUSTRALIA

AFRICA

SAUDI ARABIA

UNITED ARAB EMIRATES

Credit Term

:

30 - 60 DAYS

Payment Mode

:

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

 

OPERATIONS

 

Products manufactured

:

MEDIUM DENSITY FIBRE BOARDS & OTHER WOOD-BASED PRODUCTS

Product Brand Name

:

ROBIN MDF, ROBIN DECOR

Competitor(s)

:

EVERGREEN FIBREBOARD BHD
HEVEABOARD BERHAD
MERBOK HILIR BHD
MIECO CHIPBOARD BHD

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

2010

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

COMPANY

300

300

300

300

300

302

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of medium density fibre boards & other wood-based products. 

The Subject has the latest German technology built into its production proccess. 

Robin MDF is manufactured by a dry process and continuous pressing. Wood chips are refined, blended with resin, wax and dried before they are formed into a mat for pressing at high temperature. The emerging board is sanded then cut into panels through our sophisticated cut-to-size saw to suit customer requirements. 

The Subject's products can be used to make furniture systems, kitchen cabinets, bedroom sets, dining sets, TV racks, speaker boxes,flooring, decorative doors, panel mouldings and others.

Besides producing medium density fibre boards, the Subject also produces solid doors. 

According to the Subject, the doors are produced according to its customers' requirements. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

09-2719000

Match

:

N/A

Address Provided by Client

:

NO. 1 JALAN INDUSTR 5, TAMAN PERINDUSTRIAM TEMERLUH 28400 MENTAKAB PAHANG DARUL MAKMUR

Current Address

:

1, JALAN INDUSTRI 5, TAMAN PERINDUSTRIAN TEMERLOH, 28400 MENTAKAB, PAHANG, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address is as per stated in the report.



FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

Return on Shareholder Funds

:

Acceptable

[

10.64%

]

Return on Net Assets

:

Acceptable

[

12.61%

]

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.

Liquidity

Current Ratio

:

Favourable

[

3.87 Times

]

The Subject was in good liquidity position with its current  liabilities  well covered by its current assets. With its net current assets, the Subject should be able to repay its short term obligations.

Solvency

Liability Ratio

:

Favourable

[

0.27 Times

]

A low liabilities ratio has minimised the Subject's financial risk.

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 has a low liabilities ratio. It's liabilities were low and was not vulnerable to the financial risk.

Overall financial condition of the Subject : STRONG

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.3

4.0

Unemployment Rate

3.3

3.2

3.0

3.0

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

-

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

-

-

Business Loans Disbursed( % )

15.3

32.2

-

-

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

-

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

-

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

-

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

-

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

-

-

Registration of New Business ( No. )

284,598

324,761

329,895

-

-

Registration of New Business ( % )

5.0

14.0

2.0

-

-

Business Dissolved ( No. )

20,121

20,380

18,161

-

-

Business Dissolved ( % )

1.9

1.3

(10.9)

-

-

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

-

-

Credit Cards Spending ( % )

15.6

12.6

-

-

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-



INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.6

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

-

-

Plastic Products

3.8

-

-

-

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index



INDUSTRY ANALYSIS

 

MSIC CODE

16212 : Manufacture of particle board and fibreboard

INDUSTRY :

MANUFACTURING

The manufacturing sector is expected to grow by 5.5% in 2015. It will be bolstered by strong domestic and export-oriented industries in line with growing investment activities and favorable external demand. Moreover, in 2014, the manufacturing sectors have spearheading growth. The manufacturing sector is estimated to grow at a faster pace in 2014 on higher exports of electronics and electrical (E&E) products as external demand improves.

The manufacturing sector expanded strongly during the first half of 2014, the highest growth in three years, spurred by higher global semiconductor sales. Value-added of the manufacturing sector expanded 7.1% during the first half of 2014. Production of the sector rose 6.6% in the first seven months of 2014 supported by resilient domestic demand and recovery in the external sector during the first seven months of the years. The sales value of manufactured products rebounded by 7.7% in the first seven months of 2014. The strong performance of the sector was on account of higher output at 9.4% from the domestic-oriented industries, particularly transport equipment, food and beverage.

The manufacturing sector continued to attract domestic and foreign investment with investment approved by Malaysian Investment Development Authority (MIDA) totaling RM47.4 billion during the first six months of 2014, mainly from Japan, China and Germany. Meanwhile, the capacity utilization rate remained steady at 80.4% during the second quarter of 2014 while average wage per employee and productivity improved to RM2,772 per month and 5.9%, respectively during the first seven months of 2014. Boosted by favorable domestic economic activity and recovery in the external sector, the manufacturing sector is expected to record a better performance with growth of 6.4% in 2014.

In the meantime, production of wood products rebounded by 5.1% largely supported by higher output in the saw-milling and planning of wood segment at 25.9% during the first seven months of 2014. The positive performance was attributed to vibrant residential and commercial construction activities which contributed to increased use of timber frame and glued laminated timber for cost savings compared to the use of concrete and steel. Increased demand from major export destination such as the US, Japan and Australia for Malaysian made furniture contributed to the higher output, particularly wooden and cane furniture which rebounded by 2.2%.

Production of rubber products contracted 0.3% in the first seven months of 2014 on account of slower demand for rubber gloves and rubber tyres. The decline in rubber tyres for vehicles was due to the weaker external demand from the automotive industry, particularly from China. Output of other rubber products contracted 3.8% following the product shift from rubber-based to plastics, silicones and metal alloys in the manufacture of medical devices.

Besides, exports of manufactured products are expected to grow 6.1% in 2014 boosted by the growing demand from advanced economies. However, during the first seven months of 2014, manufactured exports surged 11.4%. The robust growth was buoyed by strengthening demand in the US and EU, reflecting significant exposure of Malaysian exports to the economic performance in the advance economies. The strength in export was broad-based with robust growth in both E&E and non- E&E subsectors.

Under budget 2015, the Government will provide incentive in the form of capital allowance on automation expenditure to encourage automation in the manufacturing sector, which may help in the manufacturing sector.

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1994, the Subject is a Private Limited company, focusing on manufacturing of medium density fibre boards & other wood-based 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. A paid up capital of MYR 61,000,000 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. The Subject is a fairly large and rapidly growing company with over 300 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. 

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 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. A low liabilities ratio has minimised the Subject's financial risk. Given a positive net worth standing at MYR 135,977,400, 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. 

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 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)

ROBIN RESOURCES (MALAYSIA) SDN. BHD.

 

Financial Year End

2014-06-30

2013-06-30

2012-06-30

2011-06-30

2010-06-30

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

204,219,999

202,108,645

206,152,453

186,241,986

221,902,368

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

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

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

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

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

Total Turnover

204,219,999

202,108,645

206,152,453

186,241,986

221,902,368

Costs of Goods Sold

-

(157,864,325)

(151,755,035)

(142,697,558)

(160,256,757)

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

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

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

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

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

Gross Profit

-

44,244,320

54,397,418

43,544,428

61,645,611

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

17,672,791

3,914,546

15,129,102

10,855,642

56,542,744

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

17,672,791

3,914,546

15,129,102

10,855,642

56,542,744

Taxation

(3,199,143)

(1,244,575)

(7,057,216)

(512,182)

(6,113,107)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

14,473,648

2,669,971

8,071,886

10,343,460

50,429,637

Minority interests

-

-

-

-

11,536,826

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

14,473,648

2,669,971

8,071,886

10,343,460

61,966,463

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

14,473,648

2,669,971

8,071,886

10,343,460

61,966,463

TRANSFER FROM RESERVES

-

-

-

118,138

-

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

54,702,978

67,283,007

79,213,866

85,222,268

33,015,805

Prior year adjustment

-

-

(1,702,745)

-

-

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

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

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

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

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

As restated

54,702,978

67,283,007

77,511,121

85,222,268

33,015,805

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

69,176,626

69,952,978

85,583,007

95,683,866

94,982,268

DIVIDENDS - Ordinary (paid & proposed)

(6,100,000)

(15,250,000)

(18,300,000)

(16,470,000)

(9,760,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

63,076,626

54,702,978

67,283,007

79,213,866

85,222,268

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Hire purchase

-

-

-

-

61,916

Term loan / Borrowing

-

-

-

-

2,119,204

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

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

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

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

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

-

-

-

-

2,181,120

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

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

 

 

 

 

 

 

 

BALANCE SHEET

 

ROBIN RESOURCES (MALAYSIA) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

46,517,353

50,686,039

55,341,676

58,822,374

68,865,509

Others

-

16,037,501

15,321,327

13,272,388

10,283,917

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

16,037,501

15,321,327

13,272,388

10,283,917

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

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

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

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

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

TOTAL LONG TERM ASSETS

46,517,353

66,723,540

70,663,003

72,094,762

79,149,426

Stocks

-

44,983,512

45,518,285

35,153,628

38,938,172

Trade debtors

-

20,821,719

22,952,281

20,503,936

24,183,091

Other debtors, deposits & prepayments

-

2,199,297

3,063,235

3,016,928

928,117

Short term deposits

-

19,450,000

17,200,000

23,900,000

16,300,000

Amount due from associated companies

-

-

10,265,098

19,749,798

21,162,621

Cash & bank balances

-

9,316,759

10,154,547

7,583,525

12,558,762

Others

-

-

-

-

8,000

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

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

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

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

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

TOTAL CURRENT ASSETS

126,357,532

96,771,287

109,153,446

109,907,815

114,078,763

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

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

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

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

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

TOTAL ASSET

172,874,885

163,494,827

179,816,449

182,002,577

193,228,189

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

-

19,827,672

20,712,962

17,488,441

15,752,758

Other creditors & accruals

-

11,055,452

9,205,943

8,565,651

8,976,454

Amounts owing to holding company

-

4,368

-

424,048

-

Amounts owing to related companies

-

4,761

898,322

121,493

951,770

Provision for taxation

-

1,310,855

4,121,186

747,304

3,075,020

Other liabilities

-

-

-

-

239,007

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

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

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

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

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

TOTAL CURRENT LIABILITIES

32,678,346

32,203,108

34,938,413

27,346,937

28,995,009

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

93,679,186

64,568,179

74,215,033

82,560,878

85,083,754

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

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

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

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

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

TOTAL NET ASSETS

140,196,539

131,291,719

144,878,036

154,655,640

164,233,180

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

61,000,000

61,000,000

61,000,000

61,000,000

61,000,000

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

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

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

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

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

TOTAL SHARE CAPITAL

61,000,000

61,000,000

61,000,000

61,000,000

61,000,000

Revaluation reserve

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

Exchange equalisation/fluctuation reserve

-

-

-

-

118,138

Retained profit/(loss) carried forward

63,076,626

54,702,978

67,283,007

79,213,866

85,222,268

Others

10,400,774

10,400,774

10,400,774

10,400,774

10,400,774

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

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

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

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

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

TOTAL RESERVES

74,977,400

66,603,752

79,183,781

91,114,640

97,241,180

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

135,977,400

127,603,752

140,183,781

152,114,640

158,241,180

Deferred taxation

-

975,000

2,144,000

2,541,000

5,992,000

Others

-

2,712,967

2,550,255

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

4,219,139

3,687,967

4,694,255

2,541,000

5,992,000

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

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

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

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

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

140,196,539

131,291,719

144,878,036

154,655,640

164,233,180

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

ROBIN RESOURCES (MALAYSIA) SDN. BHD.

 

TYPES OF FUNDS

Cash

-

28,766,759

27,354,547

31,483,525

28,858,762

Net Liquid Funds

-

28,766,759

27,354,547

31,483,525

28,858,762

Net Liquid Assets

93,679,186

19,584,667

28,696,748

47,407,250

46,145,582

Net Current Assets/(Liabilities)

93,679,186

64,568,179

74,215,033

82,560,878

85,083,754

Net Tangible Assets

140,196,539

131,291,719

144,878,036

154,655,640

164,233,180

Net Monetary Assets

89,460,047

15,896,700

24,002,493

44,866,250

40,153,582

BALANCE SHEET ITEMS

Total Borrowings

-

0

0

0

0

Total Liabilities

36,897,485

35,891,075

39,632,668

29,887,937

34,987,009

Total Assets

172,874,885

163,494,827

179,816,449

182,002,577

193,228,189

Net Assets

140,196,539

131,291,719

144,878,036

154,655,640

164,233,180

Net Assets Backing

135,977,400

127,603,752

140,183,781

152,114,640

158,241,180

Shareholders' Funds

135,977,400

127,603,752

140,183,781

152,114,640

158,241,180

Total Share Capital

61,000,000

61,000,000

61,000,000

61,000,000

61,000,000

Total Reserves

74,977,400

66,603,752

79,183,781

91,114,640

97,241,180

LIQUIDITY (Times)

Cash Ratio

-

0.89

0.78

1.15

1.00

Liquid Ratio

-

1.61

1.82

2.73

2.59

Current Ratio

3.87

3.01

3.12

4.02

3.93

WORKING CAPITAL CONTROL (Days)

Stock Ratio

-

81

81

69

64

Debtors Ratio

-

38

41

40

40

Creditors Ratio

-

46

50

45

36

SOLVENCY RATIOS (Times)

Gearing Ratio

-

0.00

0.00

0.00

0.00

Liabilities Ratio

0.27

0.28

0.28

0.20

0.22

Times Interest Earned Ratio

-

0.00

0.00

0.00

26.92

Assets Backing Ratio

2.30

2.15

2.38

2.54

2.69

PERFORMANCE RATIO (%)

Operating Profit Margin

8.65

1.94

7.34

5.83

25.48

Net Profit Margin

7.09

1.32

3.92

5.55

27.93

Return On Net Assets

12.61

2.98

10.44

7.02

35.76

Return On Capital Employed

12.61

2.98

10.44

7.02

35.76

Return On Shareholders' Funds/Equity

10.64

2.09

5.76

6.80

39.16

Dividend Pay Out Ratio (Times)

0.42

5.71

2.27

1.59

0.16

NOTES TO ACCOUNTS

Contingent Liabilities

-

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.33

UK Pound

1

Rs.92.53

Euro

1

Rs.67.60

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

               


 

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.