MIRA INFORM REPORT

 

 

Report No. :

317948

Report Date :

18.04.2015

 

IDENTIFICATION DETAILS

 

Name :

KISWIRE CORD SDN. BHD.

 

 

Registered Office :

Suite 7 E, Menara Ansar, 65, Jalan Trus, Level 7, 80000 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

21.08.2003

 

 

Com. Reg. No.:

625666-K

 

 

Legal Form :

Private Limited (Limited By Share) 

 

 

Line of Business :

Manufacturing of hose wire, bead wire and related products.

 

 

No. of Employees :

450

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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)

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. Falling global oil prices in the second half of 2014 have shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. 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. Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

625666-K

COMPANY NAME

:

KISWIRE CORD SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

21/08/2003

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 7E, MENARA ANSAR, 65, JALAN TRUS, LEVEL 7, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

PLOT 475, JALAN NIBONG, INDUSTRIAL AREA, TANJUNG LANGSAT, 81707 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2551475

FAX.NO.

:

07-2552475

WEB SITE

:

WWW.KISWIRE.COM

CONTACT PERSON

:

ZAINUDDIN BIN ABDUL HAMID ( DIRECTOR )

INDUSTRY CODE

:

27320

PRINCIPAL ACTIVITY

:

MANUFACTURING OF HOSE WIRE, BEAD WIRE AND RELATED PRODUCTS

AUTHORISED CAPITAL

:

MYR 150,000,000.00 DIVIDED INTO
ORDINARY SHARE 150,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 134,260,112.00 DIVIDED INTO
ORDINARY SHARES 125,651,833 CASH AND 8,608,279 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 508,100,995 [2013]

NET WORTH

:

MYR 446,374,878 [2013]

M1000 OVERALL RANKING

:

791[2011]

M1000 INDUSTRY RANKING

:

13[2011]

STAFF STRENGTH

:

450 [2015]

BANKER (S)

:

HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

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 hose wire, bead wire and related 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

OVERALL RANKING

791

INDUSTRY RANKING

13

 

The immediate holding company of the Subject is KISWIRE SDN. BHD., a company incorporated in MALAYSIA.

 

The ultimate holding company of the Subject is KISWIRE LTD., a company incorporated in KOREA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

20/06/2014

MYR 150,000,000.00

MYR 134,260,112.00

30/05/2013

MYR 150,000,000.00

MYR 125,651,833.00

26/12/2007

MYR 150,000,000.00

MYR 100,004,706.00

18/05/2004

MYR 100,000,000.00

MYR 60,004,706.00

31/12/2003

MYR 50,000,000.00

MYR 37,604,706.00

30/12/2003

MYR 50,000,000.00

MYR 29,404,706.00

26/08/2003

MYR 100,000.00

MYR 2.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

KISWIRE SDN. BHD.

PLO 475, JALAN KELULI 2, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

181952V

64,082,435.00

47.73

KISWE SINGAPORE LTD

135, CECIL STREET, 06-06, LKN BUILDING, 069536, SINGAPORE.

XLZ00215445

39,003,744.00

29.05

KISWIRE HOLDINGS CO. LTD

2114, JANGGYO BUILDING, JANGGYO-DONG, JUNG-GU, SEOUL, SOUTH KOREA.

XLZ00221669

13,081,947.00

9.74

KISWW ARCELOR MITTAL LTD.

134, YOONSAN-DONG, YANGSAN, KYUNGNAM, SOUTH KOREA.

XLZ00214434

12,564,694.00

9.36

HONGDUK CO. LTD

2114, JANGGYO BUILDING, JANGGYO-DONG, JUNG-GU, SEOUL, SOUTH KOREA.

XLZ00221670

3,080,987.00

2.29

HONGDUK DEVELOPMENT CO. LTD

2104, JANGGYO BUILDING, JANGGYO-DONG, JUNG-GU, SEOUL, SOUTH KOREA.

XLZ00221671

905,749.00

0.67

HONG YOUNG CHUL

-

XLZ00221672

770,278.00

0.57

HONG SUK PYO

475-9, PYEONGCHANG-DONG, JONGNO-GU, SEOUL, SOUTH KOREA.

JR2629494

770,278.00

0.57

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

------

134,260,112.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

884013K

MALAYSIA

KISWIRE SAW-TECH SDN. BHD.

100.00

26/11/2014



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. MOHAMAD GHAZALI BIN HASHIM

Address

:

24, JALAN TASEK 13, BANDAR SERI ALAM, 81750 MASAI, JOHOR, MALAYSIA.

IC / PP No

:

A0529069

New IC No

:

660810-07-5121

Date of Birth

:

10/08/1966

Nationality

:

MALAYSIAN

Date of Appointment

:

13/03/2014

 

DIRECTOR 2

 

Name Of Subject

:

JANG SE JOHN

Address

:

28, JALAN TANJONG PUTRI 3, TANJONG PUTRI HEIGHT, 80700 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

M44508260

Nationality

:

KOREAN

Date of Appointment

:

10/04/2013

 

DIRECTOR 3

 

Name Of Subject

:

LEE CHANGWOO

Address

:

BLOCK D, 18-W2, THE STRAITS VIEW CONDOMINIUM 8, JALAN PERMAS SELATAN, BANDAR BARU PERMAS JAYA, 81750 MASAI, JOHOR, MALAYSIA.

IC / PP No

:

M90044732

Nationality

:

KOREAN

Date of Appointment

:

20/04/2010

 

DIRECTOR 4

 

Name Of Subject

:

MR. ZAINUDDIN BIN ABDUL HAMID

Address

:

102, JALAN LAYANG 4, TAMAN PERLING, 81200 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

6927544

New IC No

:

621204-01-5995

Date of Birth

:

04/12/1962

Nationality

:

MALAYSIAN

Date of Appointment

:

13/03/2014

 

DIRECTOR 5

 

Name Of Subject

:

PARK CHANG HEE

Address

:

HONGEUN-DONG, PUNGLIM IWANT APARTMENT, 102-DONG, 602-HO, 149 HONGEUN JUNGGANG-RO, SEODAEMUN-GU, 120-779, SEOUL, KOREA.

IC / PP No

:

M62184218

Nationality

:

KOREAN

Date of Appointment

:

30/01/2008

 

DIRECTOR 6

 

Name Of Subject

:

MR. LEE SEE PENG

Address

:

11-03, TOWER ONE, MOLEK PINE APARTMENTS, JALAN MOLEK 1/27, TAMAN MOLEK, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

5255609

New IC No

:

571111-01-6419

Date of Birth

:

11/11/1957

Nationality

:

MALAYSIAN

Date of Appointment

:

10/04/2013

 

DIRECTOR 7

 

Name Of Subject

:

LEE JEUNG WON

Address

:

1, JALAN PINGGIRAN 2/7, HORIZON HILLS, 79100 NUSAJAYA, JOHOR, MALAYSIA.

IC / PP No

:

M27900981

Nationality

:

KOREAN

Date of Appointment

:

10/04/2013

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

ZAINUDDIN BIN ABDUL HAMID

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE

Auditor' Address

:

MENARA LGB, 1 JALAN WAN KADIR, TAMAN TUN DR. ISMAIL, LEVEL 16, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ANG MUI KIOW

IC / PP No

:

7032746

New IC No

:

630530-01-5426

Address

:

27, JALAN NIBONG 18, TAMAN DAYA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

01/07/2004

DEBENTURE

HSBC BANK MALAYSIA BHD

-

Unsatisfied

2

01/07/2004

FOREIGN CURRENCY

HSBC BANK MALAYSIA BHD

-

Unsatisfied

3

02/12/2004

FIRST LEGAL CHARGE

HSBC BANK MALAYSIA BHD

-

Unsatisfied

4

25/07/2007

2ND DEBENTURE

HSBC BANK MALAYSIA BHD

MYR 30,000,000.00

Unsatisfied

5

25/07/2007

2ND LEGAL CHARGE

HSBC BANK MALAYSIA BHD

MYR 30,000,000.00

Unsatisfied

6

03/09/2008

THIRD DEBENTURE

HSBC BANK MALAYSIA BHD

-

Unsatisfied

7

03/09/2008

THIRD LEGAL CHARGE

HSBC BANK MALAYSIA BHD

-

Unsatisfied

8

08/01/2009

DEBENTURE

HSBC BANK MALAYSIA BHD

-

Unsatisfied

9

08/01/2009

LEGAL CHARGE

HSBC BANK MALAYSIA BHD

-

Unsatisfied

10

08/01/2009

DEBENTURE

HSBC BANK MALAYSIA BHD

MYR 10,000,000.00

Unsatisfied

11

08/01/2009

LEGAL CHARGE

HSBC BANK MALAYSIA BHD

MYR 10,000,000.00

Unsatisfied

12

08/01/2009

DEBENTURE

HSBC BANK MALAYSIA BHD

-

Unsatisfied

13

08/01/2009

LEGAL CHARGE

HSBC BANK MALAYSIA BHD

-

Unsatisfied

14

08/01/2009

DEED OF ASSIGNMENT

HSBC BANK MALAYSIA BHD

-

Unsatisfied

15

08/01/2009

TRADE FINANCING GENERAL AGREEMENT

HSBC BANK MALAYSIA BHD

-

Unsatisfied

16

10/05/2010

1ST LEGAL CHARGE

HSBC BANK MALAYSIA BHD

-

Unsatisfied

 

 

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

:

ASIA

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

:

ASIA

EUROPE

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

HOSE WIRE, BEAD WIRE AND RELATED PRODUCTS

Ownership of premises

:

OWNED

Shifts

:

2 SHIFTS

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

 

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

450

450

450

450

450

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of hose wire, bead wire and related products.

The Subject is the leading Company for steel wire industry.

Its major products are steel wire rope, Galvanized Steel Wire and Strand, PC Wire and Strand, Spring Wire, Steel Cord and Bead Wire is well known in Asia Pacific region.

The Subject's products are mainly used for automation industry.

The Subject utilizes with 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

:

07-2551475

Match

:

N/A

Address Provided by Client

:

PLO 475 JALAN NIBONG KAWASAN PERINDUSTIRAN TANJUNG LANGSAT 81700 PASIR GUDANG JOHOR MALAYSIA

Current Address

:

PLOT 475, JALAN NIBONG, INDUSTRIAL AREA, TANJUNG LANGSAT, 81707 PASIR GUDANG, JOHOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


On 16th April 2015, we contacted one of the staff form the Subject and she provided some information.

The post code provided is incorrect.

FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Decreased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

Return on Shareholder Funds

:

Unfavourable

[

4.47%

]

Return on Net Assets

:

Unfavourable

[

4.18%

]

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject's management have been efficient in controlling its operating costs. 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

:

Acceptable

[

59 Days

]

Debtor Ratio

:

Unfavourable

[

74 Days

]

Creditors Ratio

:

Favourable

[

11 Days

]

The Subject kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Favourable

[

1.48 Times

]

Current Ratio

:

Favourable

[

2.22 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

[

13.65 Times

]

Gearing Ratio

:

Favourable

[

0.14 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 :

Due to the efficient control of its operating costs, the Subject was able to remain profitable despite lower turnover achieved during the year. 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:

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

 

27320 : Manufacture of other electronic and electric wires and cables

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

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

KISWIRE CORD SDN. BHD.

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

2009-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

508,100,995

516,259,653

600,535,975

564,954,753

393,221,118

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

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

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

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

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

Total Turnover

508,100,995

516,259,653

600,535,975

564,954,753

393,221,118

Costs of Goods Sold

(467,942,716)

(482,148,112)

(509,234,673)

(466,357,076)

(329,191,592)

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

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

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

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

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

Gross Profit

40,158,279

34,111,541

91,301,302

98,597,677

64,029,526

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

18,653,082

15,838,997

76,387,048

79,376,188

36,949,176

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

18,653,082

15,838,997

76,387,048

79,376,188

36,949,176

Taxation

1,294,000

(2,903,400)

3,431,800

(3,676,000)

(9,811,000)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

19,947,082

12,935,597

79,818,848

75,700,188

27,138,176

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

258,515,373

245,579,776

165,760,928

90,060,740

62,922,564

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

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

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

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

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

As restated

258,515,373

245,579,776

165,760,928

90,060,740

62,922,564

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

278,462,455

258,515,373

245,579,776

165,760,928

90,060,740

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

278,462,455

258,515,373

245,579,776

165,760,928

90,060,740

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bankers' acceptance

521,600

602,044

313,753

391,390

-

Loan from holding company

-

174,639

602,792

-

-

Term loan / Borrowing

865,339

1,601,713

1,950,820

2,539,891

-

Others

87,746

113,440

107,390

1,266,984

7,633,885

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

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

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

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

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

1,474,685

2,491,836

2,974,755

4,198,265

7,633,885

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

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

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

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

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

DEPRECIATION (as per notes to P&L)

51,187,428

48,140,702

48,038,623

46,735,619

39,111,196

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

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

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

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

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

51,187,428

48,140,702

48,038,623

46,735,619

39,111,196

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

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

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

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

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

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

337,762,032

358,736,213

314,802,848

382,983,956

362,643,056

Associated companies

9,465,823

11,123,500

11,123,500

11,123,500

11,123,500

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

9,465,823

11,123,500

11,123,500

11,123,500

11,123,500

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

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

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

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

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

TOTAL LONG TERM ASSETS

347,227,855

369,859,713

325,926,348

394,107,456

373,766,556

Stocks

82,208,797

86,575,772

110,880,416

86,773,151

74,249,657

Trade debtors

103,046,664

101,327,728

99,202,623

109,177,750

82,993,310

Other debtors, deposits & prepayments

2,491,958

3,372,700

12,496,599

2,619,380

1,788,810

Deposits with financial institutions

-

-

908,000

900,000

-

Amount due from holding company

617,070

191,997

56,983

276,247

825,261

Amount due from related companies

18,462,004

2,986,571

3,642,223

6,934,594

7,720,428

Amount due from associated companies

9,629,756

4,771,894

3,315,252

629,517

694,880

Cash & bank balances

2,132,012

3,375,558

802,677

9,458,908

5,633,167

Others

26,274,560

21,205,186

60,624,379

175,037

104,366

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

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

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

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

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

TOTAL CURRENT ASSETS

244,862,821

223,807,406

291,929,152

216,944,584

174,009,879

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

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

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

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

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

TOTAL ASSET

592,090,676

593,667,119

617,855,500

611,052,040

547,776,435

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

14,155,567

16,118,136

10,290,884

13,977,313

5,920,543

Other creditors & accruals

27,055,690

26,425,744

22,163,175

29,740,650

26,053,395

Short term borrowings/Term loans

58,284,286

59,272,601

61,948,900

54,597,530

30,057,950

Bill & acceptances payable

-

-

-

-

8,737,589

Amounts owing to holding company

351,657

3,208,390

28,120,028

65,817,932

77,430,287

Amounts owing to related companies

2,239,777

4,549,798

277,676

2,181,891

313,940

Amounts owing to associated companies

290,379

163,937

-

-

-

Provision for taxation

52,525

9,277

34,145

-

-

Other liabilities

7,653,917

1,903,690

1,081,996

2,487,625

8,249,966

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

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

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

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

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

TOTAL CURRENT LIABILITIES

110,083,798

111,651,573

123,916,804

168,802,941

156,763,670

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

134,779,023

112,155,833

168,012,348

48,141,643

17,246,209

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

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

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

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

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

TOTAL NET ASSETS

482,006,878

482,015,546

493,938,696

442,249,099

391,012,765

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

125,651,833

125,651,833

125,651,833

125,651,833

125,651,833

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

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

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

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

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

TOTAL SHARE CAPITAL

125,651,833

125,651,833

125,651,833

125,651,833

125,651,833

RESERVES

Share premium

42,260,590

42,260,590

42,260,590

42,260,590

42,260,590

Retained profit/(loss) carried forward

278,462,455

258,515,373

245,579,776

165,760,928

90,060,740

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

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

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

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

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

TOTAL RESERVES

320,723,045

300,775,963

287,840,366

208,021,518

132,321,330

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

446,374,878

426,427,796

413,492,199

333,673,351

257,973,163

Long term loans

2,045,000

20,553,750

48,159,497

72,698,748

100,808,602

Deferred taxation

33,587,000

35,034,000

32,287,000

35,877,000

32,231,000

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

35,632,000

55,587,750

80,446,497

108,575,748

133,039,602

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

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

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

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

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

482,006,878

482,015,546

493,938,696

442,249,099

391,012,765

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

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

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

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

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

 

 

FINANCIAL RATIO

 

 

 

 

TYPES OF FUNDS

Cash

2,132,012

3,375,558

802,677

9,458,908

5,633,167

Net Liquid Funds

2,132,012

3,375,558

802,677

9,458,908

(3,104,422)

Net Liquid Assets

52,570,226

25,580,061

57,131,932

(38,631,508)

(57,003,448)

Net Current Assets/(Liabilities)

134,779,023

112,155,833

168,012,348

48,141,643

17,246,209

Net Tangible Assets

482,006,878

482,015,546

493,938,696

442,249,099

391,012,765

Net Monetary Assets

16,938,226

(30,007,689)

(23,314,565)

(147,207,256)

(190,043,050)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

20,127,767

18,330,833

79,361,803

83,574,453

44,583,061

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

71,315,195

66,471,535

127,400,426

130,310,072

83,694,257

BALANCE SHEET ITEMS

Total Borrowings

60,329,286

79,826,351

110,108,397

127,296,278

139,604,141

Total Liabilities

145,715,798

167,239,323

204,363,301

277,378,689

289,803,272

Total Assets

592,090,676

593,667,119

617,855,500

611,052,040

547,776,435

Net Assets

482,006,878

482,015,546

493,938,696

442,249,099

391,012,765

Net Assets Backing

446,374,878

426,427,796

413,492,199

333,673,351

257,973,163

Shareholders' Funds

446,374,878

426,427,796

413,492,199

333,673,351

257,973,163

Total Share Capital

125,651,833

125,651,833

125,651,833

125,651,833

125,651,833

Total Reserves

320,723,045

300,775,963

287,840,366

208,021,518

132,321,330

LIQUIDITY (Times)

Cash Ratio

0.02

0.03

0.01

0.06

0.04

Liquid Ratio

1.48

1.23

1.46

0.77

0.64

Current Ratio

2.22

2.00

2.36

1.29

1.11

WORKING CAPITAL CONTROL (Days)

Stock Ratio

59

61

67

56

69

Debtors Ratio

74

72

60

71

77

Creditors Ratio

11

12

7

11

7

SOLVENCY RATIOS (Times)

Gearing Ratio

0.14

0.19

0.27

0.38

0.54

Liabilities Ratio

0.33

0.39

0.49

0.83

1.12

Times Interest Earned Ratio

13.65

7.36

26.68

19.91

5.84

Assets Backing Ratio

3.84

3.84

3.93

3.52

3.11

PERFORMANCE RATIO (%)

Operating Profit Margin

3.67

3.07

12.72

14.05

9.40

Net Profit Margin

3.93

2.51

13.29

13.40

6.90

Return On Net Assets

4.18

3.80

16.07

18.90

11.40

Return On Capital Employed

4.18

3.80

16.07

18.90

11.40

Return On Shareholders' Funds/Equity

4.47

3.03

19.30

22.69

10.52

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.37

UK Pound

1

Rs.93.10

Euro

1

Rs.67.13

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

VNT

 

               

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.