MIRA INFORM REPORT
|
Report No. : |
319629 |
|
Report Date : |
29.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
MALAYSIAN NEWSPRINT INDUSTRIES SDN.BHD. |
|
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|
|
Formerly Known As : |
BRUAS SDN. BHD. |
|
|
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Registered Office : |
Wisma Hong Leong, 18, Jalan Perak, Level 9, 50450 Kuala Lumpur,
Wilayah Persekutuan |
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|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
30.06.2014 |
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|
|
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Date of Incorporation : |
04.08.1976 |
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Com. Reg. No.: |
28382-H |
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|
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Legal Form : |
Private Limited |
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|
|
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Line of Business : |
Manufacturing of newsprint and related paper products |
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|
|
|
No. of Employee : |
400 [2015] |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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Payment Behaviour : |
No complaints |
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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 |
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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
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 newsprint and related paper products. The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).
Share Capital
History
The major shareholder(s) of the Subject are shown as follows :
+ Also Director DIRECTORS
DIRECTOR 1
DIRECTOR 2
DIRECTOR 3
DIRECTOR 4
DIRECTOR 5
DIRECTOR 6
DIRECTOR 7
DIRECTOR 8
DIRECTOR 9
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|
1) |
Name of Subject |
: |
GEORGE MICHEAL MILOSEVICH |
|
Position |
: |
GENERAL MANAGER |
|
|
2) |
Name of Subject |
: |
MOHAMMAD AZLAN BIN ABDULLAH |
|
Position |
: |
DIRECTOR |
|
|
3) |
Name of Subject |
: |
YAP HON PHIN @ RICHARD |
|
Position |
: |
IT MANAGER |
|
|
4) |
Name of Subject |
: |
JOANNE |
|
Position |
: |
SECRETARY |
|
AUDITOR
|
Auditor |
: |
KPMG |
|
Auditor' Address |
: |
KPMG TOWER, 8 FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING JAYA, SELANGOR, MALAYSIA. |
COMPANY SECRETARIES
|
1) |
Company Secretary |
: |
MS. MAK MEW CHAN |
|
IC / PP No |
: |
A0208142 |
|
|
New IC No |
: |
650816-05-5122 |
|
|
Address |
: |
1244, LORONG S2 A35//2, CENTRAL PARK, SEREMBAN TWO, 70300 SEREMBAN, NEGERI SEMBILAN, MALAYSIA. |
|
|
2) |
Company Secretary |
: |
MS. JOANNE LEONG WEI YIN |
|
New IC No |
: |
610326-10-5688 |
|
|
Address |
: |
44, JALAN BU11/2, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA. |
|
BANKING
Banking relations are maintained principally with :
|
1) |
Name |
: |
MALAYAN BANKING BHD |
|
2) |
Name |
: |
OCBC BANK (MALAYSIA) BHD |
|
3) |
Name |
: |
STANDARD CHARTERED BANK MALAYSIA BHD |
ENCUMBRANCE (S)
|
Charge No |
Creation Date |
Charge Description |
Chargee Name |
Total Charge |
Status |
|
1 |
14/10/1996 |
N/A |
DCB BANK L LTD |
MYR 2.00 |
Satisfied |
|
2 |
29/12/1998 |
N/A |
STANDARD CHARTERED BANK MALAYSIA BERHAD |
MYR 170,000,000.00 |
Satisfied |
|
3 |
24/09/1999 |
N/A |
ASEAMBANKERS MALAYSIA BERHAD |
MYR 1.00 |
Satisfied |
|
4 |
24/09/1999 |
N/A |
ASEAMBANKERS MALAYSIA BERHAD |
MYR 1.00 |
Satisfied |
|
5 |
24/09/1999 |
N/A |
ASEAMBANKERS MALAYSIA BERHAD |
MYR 1.00 |
Satisfied |
|
6 |
24/09/1999 |
N/A |
ASEAMBANKERS MALAYSIA BERHAD |
MYR 1.00 |
Satisfied |
|
8 |
13/12/2000 |
N/A |
UNIVERSAL TRUSTEE MALAYSIA BERHAD |
MYR 1,474,927,189.00 |
Satisfied |
|
7 |
29/12/2000 |
N/A |
UNIVERSAL TRUSTEE MALAYSIA BERHAD |
MYR 1.00 |
Satisfied |
|
9 |
10/06/2004 |
N/A |
UNIVERSAL TRUSTEE MALAYSIA BERHAD AS SECURITY TRUS |
MYR 1,088,000,000.00 |
Satisfied |
|
10 |
22/12/2005 |
CHARGE |
MALAYAN BANKING BHD |
MYR 50,000,000.00 |
Unsatisfied |
|
11 |
02/03/2007 |
DEBENTURE |
OCBC BANK (MALAYSIA) BHD |
MYR 700,000,000.00 |
Unsatisfied |
|
12 |
02/03/2007 |
ASSIGNMENT |
OCBC BANK (MALAYSIA) BHD |
MYR 700,000,000.00 |
Unsatisfied |
|
13 |
20/11/2008 |
1ST LEGAL CHARGE |
OCBC BANK (MALAYSIA) BHD |
MYR 650,000,000.00 |
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 |
: |
SINGAPORE |
|||
|
Credit Term |
: |
AS AGREED |
|||
|
Payment Mode |
: |
CHEQUES |
|||
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Type of Customer |
: |
AGENTS,DISTRIBUTORS,END USERS |
|||
OPERATIONS
|
Products manufactured |
: |
|
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|
Product Brand Name |
: |
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Award |
: |
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Competitor(s) |
: |
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|||||
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Member(s) / Affiliate(s) |
: |
FEDERATION OF MALAYSIAN MANUFACTURERS (FMM) SMALL & MEDIUM ENTERPRISE MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI) |
|||||
|
Ownership of premises |
: |
|
|||||
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Factory / Premises |
: |
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Factory Size |
: |
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Production Line |
: |
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|||||
|
Production Capacity |
: |
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Total Number of Employees: |
|
||||||||
|
YEAR |
2015 |
2014 |
2013 |
2012 |
2011 |
||||
|
GROUP |
N/A |
N/A |
N/A |
N/A |
N/A |
||||
|
COMPANY |
400 |
350 |
350 |
350 |
350 |
||||
|
Branch |
: |
|
Other Information:
The Subject is principally engaged in the (as a / as an) manufacturing of
newsprint and related paper products.
The Subject is a pioneer in Malaysia's newest industry that is manufacturing
of newsprint using recycled newspapers and magazines.
The Subject is 100% recycling Newsprint Mill and leading Newsprint provider
in Malaysia.
The Subject's mill based in Pahang produces premium-grade recycled newsprint
and uses 70 per cent old newspapers and 30 per cent magazines to be recycled
as its raw materials.
The Subject employs the latest technology in paper-making . It operates a
combined heat and power plant which is the dedicated supplier of power and
processes steam to the newsprint mill.
The Subject's operations involve recycling old newspapers and old magazines
into premium paper quality for today's modern presses with reliable
runnability and consistent printability.
The Subject also had invested RM7 million in high-technology trucks to
transport the newsprint to end customers to ensure the quality of its
products.
The plant is the third largest in Asia and eighth largest in the world in
terms of the production capacity of its "Voith Sulzer" paper
machine.
The mill is equipped with world class technology and state-of-the-art
processes that employ the latest recycled fibre-pulping techniques with
minimum and negligible environment impact.
The Subject is a 100% recycling Newsprint Mill and leading Newsprint provider
in Malaysia.
The Subject believe in caring for the environment. Its commitment is to
ensure all the policies and practices are consistent with our Vision and
community expectations and requirements.
The Subject operate its business processes by continuously improving their
environmental performance; reducing the environmental impacts (water, air,
land) to a minimum with appropriate pollution prevention technology,
recycling opportunities or control measures.
The Subject ensure compliance with laws and regulations as a basic
requirement, and strive to exceed all applicable government requirements and
other requirements to which MNI subscribes.
The Subject actively apply an environmental management system to review its
environmental performance in all its business units.
The Subject ensure that environmental responsibilities and tasks shall be
clearly defined and adhered to throughout the organization. All business
units shall educate and train their employees to know and understand the
policy, its requirements and their work performance expectations.
CURRENT INVESTIGATION
Latest fresh investigations carried out on the Subject indicated that :
|
Telephone Number Provided By Client |
: |
N/A |
|
Current Telephone Number |
: |
03-77859988 |
|
Match |
: |
N/A |
|
Address Provided by Client |
: |
LEVEL 3, BLOCK A, BANGUNAN PANGLOBAL, 1A JALAN TANDANG, 46050 PETALING JAYA, SELANGOR DARUL EHSAN |
|
Current Address |
: |
BLOCK A, BANGUNAN PANGLOBAL, 1A JALAN TANDANG, LEVEL 3, 46050 PETALING JAYA, SELANGOR, MALAYSIA. |
|
Match |
: |
YES |
|
Latest Financial Accounts |
: |
YES |
Other Investigations
On 27th April 2015, we contacted one of the staff from the Subject and she
provided some information.
FINANCIAL ANALYSIS
|
Profitability |
||||||
|
Turnover |
: |
Decreased |
[ |
2010 - 2014 |
] |
|
|
Profit/(Loss) Before Tax |
: |
Increased |
[ |
2010 - 2014 |
] |
|
|
Return on Shareholder Funds |
: |
Acceptable |
[ |
10.75% |
] |
|
|
Return on Net Assets |
: |
Acceptable |
[ |
10.13% |
] |
|
|
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 Subject's management had generated acceptable return for its shareholders using its assets. |
||||||
|
Liquidity |
||||||
|
Current Ratio |
: |
Acceptable |
[ |
1.18 Times |
] |
|
|
The Subject has an adequate 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 |
[ |
0.38 Times |
] |
|
|
A low liabilities ratio has minimised the Subject's financial risk. |
||||||
|
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. 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 : 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 |
|
|
17 : MANUFACTURE OF PAPER AND PAPER PRODUCTS |
|
|
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
|
|
|
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING
STANDARDS(FRS) |
|
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 |
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 |
SUMMARY |
FULL |
FULL |
FULL |
FULL |
|
Currency |
MYR |
MYR |
MYR |
MYR |
MYR |
|
TURNOVER |
498,609,000 |
505,828,000 |
539,415,000 |
540,863,000 |
484,079,000 |
|
Other Income |
- |
2,771,000 |
(548,000) |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Total Turnover |
498,609,000 |
508,599,000 |
538,867,000 |
540,863,000 |
484,079,000 |
|
Costs of Goods Sold |
- |
(444,713,000) |
(483,754,000) |
(498,891,000) |
(448,622,000) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Gross Profit |
- |
63,886,000 |
55,113,000 |
41,972,000 |
35,457,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) FROM OPERATIONS |
75,932,000 |
43,003,000 |
31,380,000 |
17,007,000 |
8,501,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) BEFORE TAXATION |
75,932,000 |
43,003,000 |
31,380,000 |
17,007,000 |
8,501,000 |
|
Taxation |
(14,895,000) |
(10,751,000) |
(6,271,000) |
(4,252,000) |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) AFTER TAXATION |
61,037,000 |
32,252,000 |
25,109,000 |
12,755,000 |
8,501,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED
PROFIT/(LOSS) BROUGHT FORWARD |
|||||
|
As previously reported |
(352,640,000) |
(384,892,000) |
(410,001,000) |
(158,439,000) |
(166,940,000) |
|
Prior year adjustment |
- |
- |
- |
(264,317,000) |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
As restated |
(352,640,000) |
(384,892,000) |
(410,001,000) |
(422,756,000) |
(166,940,000) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
(291,603,000) |
(352,640,000) |
(384,892,000) |
(410,001,000) |
(158,439,000) |
|
DIVIDENDS - Ordinary (paid & proposed) |
(2,970,000) |
- |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
(294,573,000) |
(352,640,000) |
(384,892,000) |
(410,001,000) |
(158,439,000) |
|
============= |
============= |
============= |
============= |
============= |
|
|
INTEREST EXPENSE
(as per notes to P&L) |
|||||
|
Bankers' acceptance |
- |
1,048,000 |
787,000 |
136,000 |
- |
|
Term loan / Borrowing |
- |
11,375,000 |
14,883,000 |
17,830,000 |
18,069,000 |
|
Others |
- |
65,000 |
183,000 |
338,000 |
979,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
- |
12,488,000 |
15,853,000 |
18,304,000 |
19,048,000 |
|
|
- |
============= |
============= |
============= |
============= |
|
|
DEPRECIATION (as per notes to P&L) |
- |
32,582,000 |
37,422,000 |
56,421,000 |
57,812,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
- |
32,582,000 |
37,422,000 |
56,421,000 |
57,812,000 |
|
|
============= |
============= |
============= |
============= |
============= |
BALANCE
SHEET
|
ASSETS EMPLOYED: |
|||||
|
FIXED ASSETS |
730,928,000 |
758,451,000 |
787,626,000 |
818,547,000 |
1,171,900,000 |
|
Deferred assets |
- |
28,286,000 |
38,983,000 |
45,254,000 |
12,531,000 |
|
Others |
- |
- |
- |
- |
6,868,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS |
- |
28,286,000 |
38,983,000 |
45,254,000 |
19,399,000 |
|
Others |
- |
1,024,000 |
- |
4,292,000 |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL INTANGIBLE ASSETS |
- |
1,024,000 |
- |
4,292,000 |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM ASSETS |
730,928,000 |
787,761,000 |
826,609,000 |
868,093,000 |
1,191,299,000 |
|
Stocks |
- |
31,445,000 |
43,169,000 |
38,081,000 |
42,284,000 |
|
Trade debtors |
- |
31,895,000 |
27,228,000 |
35,927,000 |
25,851,000 |
|
Other debtors, deposits & prepayments |
- |
4,893,000 |
5,862,000 |
4,504,000 |
4,447,000 |
|
Short term deposits |
- |
- |
6,626,000 |
26,848,000 |
29,250,000 |
|
Cash & bank balances |
- |
5,348,000 |
4,760,000 |
2,506,000 |
5,316,000 |
|
Others |
- |
- |
1,716,000 |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT ASSETS |
122,944,000 |
73,581,000 |
89,361,000 |
107,866,000 |
107,148,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL ASSET |
853,872,000 |
861,342,000 |
915,970,000 |
975,959,000 |
1,298,447,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
CURRENT
LIABILITIES |
|||||
|
Trade creditors |
- |
27,114,000 |
49,096,000 |
49,780,000 |
55,403,000 |
|
Other creditors & accruals |
- |
28,284,000 |
27,302,000 |
32,446,000 |
25,159,000 |
|
Short term borrowings/Term loans |
- |
43,888,000 |
60,000,000 |
80,000,000 |
102,000,000 |
|
Bill & acceptances payable |
- |
26,320,000 |
32,200,000 |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT LIABILITIES |
103,957,000 |
125,606,000 |
168,598,000 |
162,226,000 |
182,562,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
NET CURRENT ASSETS/(LIABILITIES) |
18,987,000 |
(52,025,000) |
(79,237,000) |
(54,360,000) |
(75,414,000) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL NET ASSETS |
749,915,000 |
735,736,000 |
747,372,000 |
813,733,000 |
1,115,885,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
SHARE CAPITAL |
|||||
|
Ordinary share capital |
862,453,000 |
712,692,000 |
712,692,000 |
712,692,000 |
712,692,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL SHARE CAPITAL |
862,453,000 |
712,692,000 |
712,692,000 |
712,692,000 |
712,692,000 |
|
Retained profit/(loss) carried forward |
(294,573,000) |
(352,640,000) |
(384,892,000) |
(410,001,000) |
(158,439,000) |
|
Capital redemption reserve |
50,371,000 |
50,371,000 |
50,371,000 |
50,371,000 |
50,371,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL RESERVES |
(244,202,000) |
(302,269,000) |
(334,521,000) |
(359,630,000) |
(108,068,000) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
SHAREHOLDERS' FUNDS/EQUITY |
567,880,000 |
410,423,000 |
378,171,000 |
353,062,000 |
604,624,000 |
|
Long term loans |
- |
175,552,000 |
219,440,000 |
310,910,000 |
361,500,000 |
|
Others |
- |
149,761,000 |
149,761,000 |
149,761,000 |
149,761,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM LIABILITIES |
131,664,000 |
325,313,000 |
369,201,000 |
460,671,000 |
511,261,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
749,915,000 |
735,736,000 |
747,372,000 |
813,733,000 |
1,115,885,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
FINANCIAL
RATIO
|
TYPES OF FUNDS |
|||||
|
Cash |
- |
5,348,000 |
11,386,000 |
29,354,000 |
34,566,000 |
|
Net Liquid Funds |
- |
(20,972,000) |
(20,814,000) |
29,354,000 |
34,566,000 |
|
Net Liquid Assets |
18,987,000 |
(83,470,000) |
(122,406,000) |
(92,441,000) |
(117,698,000) |
|
Net Current Assets/(Liabilities) |
18,987,000 |
(52,025,000) |
(79,237,000) |
(54,360,000) |
(75,414,000) |
|
Net Tangible Assets |
749,915,000 |
734,712,000 |
747,372,000 |
809,441,000 |
1,115,885,000 |
|
Net Monetary Assets |
(112,677,000) |
(408,783,000) |
(491,607,000) |
(553,112,000) |
(628,959,000) |
|
PROFIT & LOSS
ITEMS |
|||||
|
Earnings Before Interest & Tax (EBIT) |
- |
55,491,000 |
47,233,000 |
35,311,000 |
27,549,000 |
|
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA) |
- |
88,073,000 |
84,655,000 |
91,732,000 |
85,361,000 |
|
BALANCE SHEET
ITEMS |
|||||
|
Total Borrowings |
- |
245,760,000 |
311,640,000 |
390,910,000 |
463,500,000 |
|
Total Liabilities |
235,621,000 |
450,919,000 |
537,799,000 |
622,897,000 |
693,823,000 |
|
Total Assets |
853,872,000 |
861,342,000 |
915,970,000 |
975,959,000 |
1,298,447,000 |
|
Net Assets |
749,915,000 |
735,736,000 |
747,372,000 |
813,733,000 |
1,115,885,000 |
|
Net Assets Backing |
618,251,000 |
410,423,000 |
378,171,000 |
353,062,000 |
604,624,000 |
|
Shareholders' Funds |
618,251,000 |
410,423,000 |
378,171,000 |
353,062,000 |
604,624,000 |
|
Total Share Capital |
862,453,000 |
712,692,000 |
712,692,000 |
712,692,000 |
712,692,000 |
|
Total Reserves |
(244,202,000) |
(302,269,000) |
(334,521,000) |
(359,630,000) |
(108,068,000) |
|
LIQUIDITY (Times) |
|||||
|
Cash Ratio |
- |
0.04 |
0.07 |
0.18 |
0.19 |
|
Liquid Ratio |
- |
0.34 |
0.27 |
0.43 |
0.36 |
|
Current Ratio |
1.18 |
0.59 |
0.53 |
0.66 |
0.59 |
|
WORKING CAPITAL
CONTROL (Days) |
|||||
|
Stock Ratio |
- |
23 |
29 |
26 |
32 |
|
Debtors Ratio |
- |
23 |
18 |
24 |
19 |
|
Creditors Ratio |
- |
22 |
37 |
36 |
45 |
|
SOLVENCY RATIOS
(Times) |
|||||
|
Gearing Ratio |
- |
0.60 |
0.82 |
1.11 |
0.77 |
|
Liabilities Ratio |
0.38 |
1.10 |
1.42 |
1.76 |
1.15 |
|
Times Interest Earned Ratio |
- |
4.44 |
2.98 |
1.93 |
1.45 |
|
Assets Backing Ratio |
0.87 |
1.03 |
1.05 |
1.14 |
1.57 |
|
PERFORMANCE RATIO
(%) |
|||||
|
Operating Profit Margin |
15.23 |
8.50 |
5.82 |
3.14 |
1.76 |
|
Net Profit Margin |
12.24 |
6.38 |
4.65 |
2.36 |
1.76 |
|
Return On Net Assets |
10.13 |
7.54 |
6.32 |
4.34 |
2.47 |
|
Return On Capital Employed |
10.85 |
7.53 |
6.32 |
4.32 |
2.47 |
|
Return On Shareholders' Funds/Equity |
10.75 |
7.86 |
6.64 |
3.61 |
1.41 |
|
Dividend Pay Out Ratio (Times) |
0.05 |
0.00 |
0.00 |
0.00 |
0.00 |
|
NOTES TO ACCOUNTS |
|||||
|
Contingent Liabilities |
- |
0 |
0 |
0 |
0 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.33 |
|
|
1 |
Rs.96.52 |
|
Euro |
1 |
Rs.68.93 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.