|
Report No. : |
339274 |
|
Report Date : |
28.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
MFE FORMWORK TECHNOLOGY SDN. BHD. |
|
|
|
|
Formerly Known As : |
MIVAN FAR EAST SDN BHD
|
|
|
|
|
Registered Office : |
Lot 824, Komplek Sun, Jalan Bukit Bintang, Tingkat 8, 55100 Kuala
Lumpur, Wilayah Persekutuan |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
05.09.1900 |
|
|
|
|
Com. Reg. No.: |
203754-U |
|
|
|
|
Legal Form : |
Private Limited |
|
|
|
|
Line of Business : |
Manufacturing of formwork system for civil engineering construction |
|
|
|
|
No. of Employee : |
600 [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 : |
Satisfactory |
|
Payment Behaviour : |
Slow but correct |
|
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Malaysia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
MALAYSIA ECONOMIC OVERVIEW
Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.
|
Source
: CIA |
EXECUTIVE
SUMMARY
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 formwork system
for civil engineering construction. The Subject is
not listed on Bursa Malaysia (Malaysia Stock Exchange). The immediate holding
company of the Subject is MFE HOLDING LIMITED, a company incorporated in
VIRGIN ISLANDS, BRITISH. Share Capital
History
The major
shareholder(s) of the Subject are shown as follows :
+ Also Director DIRECTORS
DIRECTOR 1
DIRECTOR 2
DIRECTOR 3
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1) |
Name of Subject |
: |
JAMES ROBINSON |
|
Position |
: |
DIRECTOR, MANAGING DIRECTOR |
|
|
2) |
Name of Subject |
: |
ELAINE LAI |
|
Position |
: |
HUMAN RESOURCE MANAGER |
|
|
3) |
Name of Subject |
: |
JAMES TEO |
|
Position |
: |
OPERATIONS MANAGER |
|
|
Auditor |
: |
KPMG |
|
Auditor' Address |
: |
KPMG TOWER, 8, FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING
JAYA, SELANGOR, MALAYSIA. |
|
1) |
Company Secretary |
: |
MR. TAN BENG HOCK |
|
IC / PP No |
: |
4086144 |
|
|
New IC No |
: |
361028-07-5295 |
|
|
Address |
: |
80, JALAN USJ 6/2B, 46100 PETALING JAYA, SELANGOR, MALAYSIA. |
|
|
2) |
Company Secretary |
: |
MS. LAI SOOK HEAN |
|
IC / PP No |
: |
A1854741 |
|
|
New IC No |
: |
710503-08-6122 |
|
|
Address |
: |
164, JELAPANG N/V, 30020 IPOH, PERAK, MALAYSIA. |
|
Banking relations are maintained principally with :
|
1) |
Name |
: |
MALAYAN BANKING BHD |
|
Charge No |
Creation Date |
Charge Description |
Chargee Name |
Total Charge |
Status |
|
1 |
29/10/1992 |
N/A |
PUBLIC INVESTMENT BANK BERHAD |
- |
Satisfied |
|
2 |
04/11/1992 |
N/A |
THE PACIFIC BANK BHD |
- |
Satisfied |
|
3 |
26/12/1992 |
N/A |
THE PACIFIC BANK BHD |
MYR 1,000,000.00 |
Satisfied |
|
4 |
16/06/1993 |
N/A |
THE PACIFIC BANK BERHAD |
MYR 1,000,000.00 |
Satisfied |
|
5 |
07/07/1995 |
N/A |
NATIONAL AUSTRALIA MERCHANT BANK SINGAPORELTD |
- |
Satisfied |
|
6 |
06/07/1999 |
N/A |
MALAYAN BANKING BERHAD |
MYR 1,200,000.00 |
Satisfied |
|
7 |
01/11/2007 |
DEBENTURE |
ABN AMRO BANK N.V. LABUAN BRANCH |
MYR 5,000,000.00 |
Satisfied |
|
8 |
08/06/2012 |
DEBENTURE |
THE ROYAL BANK OF SCOTLAND BERHAD |
MYR 8,300,000.00 |
Unsatisfied |
|
9 |
08/06/2012 |
DEBENTURE |
THE ROYAL BANK OF SCOTLAND, PLC, LABUAN BRANCH |
USD 5,000,000.00 |
Unsatisfied |
|
10 |
08/06/2012 |
DEBENTURE |
PATRICK GERARD GORHAM JAMES ROBINSON |
USD 300,000.00 |
Unsatisfied |
|
11 |
25/11/2014 |
DEBENTURE |
VENTURE OPPORTUNITY (LABUAN) LIMITED |
- |
Unsatisfied |
* 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.
* 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.
|
SOURCES OF RAW
MATERIALS: |
|
||||
|
Local |
: |
YES |
Percentage |
: |
20% |
|
Overseas |
: |
YES |
Percentage |
: |
80% |
|
Import
Countries |
: |
EUROPE,ASIA
PACIFIC |
|||
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 |
[ |
] |
Average 61-90
Days |
[ |
] |
||||||
|
Fair 91-120
Days |
[ |
] |
Poor >120
Days |
[ |
X |
] |
||||||||
|
Local |
: |
YES |
Percentage |
: |
30% |
|
Domestic
Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
YES |
Percentage |
: |
70% |
|
Export Market |
: |
HONG KONG |
|||
|
Credit Term |
: |
AS AGREED |
|||
|
Payment Mode |
: |
TELEGRAPHIC
TRANSFER (TT) |
|||
|
Type of
Customer |
: |
CONSTRUCTION
INDUSTRY |
|||
|
Products
manufactured |
: |
|
||||
|
Ownership of
premises |
: |
|
||||
|
Factory /
Premises |
: |
|
|
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 |
600 |
600 |
600 |
650 |
650 |
625 |
|||
|
Branch |
: |
|
Other
Information:
The Subject is principally engaged in the (as a / as an) manufacturing of
formwork system for civil engineering construction.
The Subject is a revolutionary aluminium formwork construction system.
The Subject has many experiences for forming cast in place reinforced
concrete building structures. Using this unique system, all walls, floor
slabs, columns, beams, stairs, balconies, together with door and window
openings are cast in place in a single site based operation.
There are four main elements in the Subject's business, which are design,
manufacturing, technical support and safety and environment.
The combination of bespoke software and the experience of the designers, the
Subject guarantees the most efficient construction process, incorporating the
optimum assembly procedures, economical panel selection and ultimately
minimizing capital and operational costs.
Latest fresh
investigations carried out on the Subject indicated that :
|
Telephone
Number Provided By Client |
: |
N/A |
|
Current
Telephone Number |
: |
03-78032806 |
|
Match |
: |
N/A |
|
Address
Provided by Client |
: |
501 4TH FLOOR BLOCK
B GLOMAC BUSINESS CENTRE NO 10 JALAN 556/1 KELANA JAYA 47301 PEALING JAYA
SELANGOR DARUL EHSAN |
|
Current
Address |
: |
501, BLOCK B,
GLOMAC BUSINESS CENTRE, 10 JALAN SS 6/1, KELANA JAYA, 4TH FLOOR, 47301
PETALING JAYA, SELANGOR, MALAYSIA. |
|
Match |
: |
NO |
|
Latest
Financial Accounts |
: |
YES |
Other
Investigations
On 12th March 2015, we contacted one of the staff from the Subject and he
provided some information.
The address provided is stated as per report.
|
Profitability |
||||||
|
Turnover |
: |
Erratic |
[ |
2009 - 2013 |
] |
|
|
Profit/(Loss)
Before Tax |
: |
Increased |
[ |
2009 - 2013 |
] |
|
|
Return on
Shareholder Funds |
: |
Favourable |
[ |
59.70% |
] |
|
|
Return on Net
Assets |
: |
Favourable |
[ |
84.39% |
] |
|
|
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. Generally the Subject was profitable. The favourable return on
shareholders' funds and return on net assets indicate that the Subject's
management was efficient in utilising the assets to generate returns. |
||||||
|
Working Capital
Control |
||||||
|
Stock Ratio |
: |
Favourable |
[ |
42 Days |
] |
|
|
Debtor Ratio |
: |
Unfavourable |
[ |
103 Days |
] |
|
|
Creditors
Ratio |
: |
Unfavourable |
[ |
95 Days |
] |
|
|
The Subject's stocks
were moving fast thus reducing its holding cost. This had reduced funds
being tied up in stocks. The Subject's debtors ratio was high. The Subject
should tighten its credit control and improve its collection period. The
unfavourable creditors' ratio could be due to the Subject taking advantage
of the credit granted by its suppliers. However this may affect the
goodwill between the Subject and its suppliers and the Subject may
inadvertently have to pay more for its future supplies. |
||||||
|
Liquidity |
||||||
|
Liquid Ratio |
: |
Acceptable |
[ |
0.93 Times |
] |
|
|
Current Ratio |
: |
Unfavourable |
[ |
1.19 Times |
] |
|
|
The Subject's
liquid ratio was slightly low. This could indicate that the Subject's working
capital was slightly deficient. The Subject will have to improve its
liquidity position either by obtaining short term financing or increase its
paid up capital so that it can meet all its short term obligations as and
when they fall due. |
||||||
|
Solvency |
||||||
|
Interest Cover |
: |
Favourable |
[ |
19.23 Times |
] |
|
|
Gearing Ratio |
: |
Acceptable |
[ |
0.87 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's gearing was slightly high. The
Subject is utilising the leverage concept to fund its expansion. However,
the high gearing has added financial risks to the Subject. It will be more
vulnerable in times of economy downturn. |
||||||
|
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's liquidity was at an acceptable range. If the
Subject is able to obtain further short term financing, it should be able
to meet all 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's gearing was slightly high and its
financial risk was also high. If no plans are made to reduce its gearing,
the Subject's performance may deteriorate in the coming year. |
||||||
|
Overall
financial condition of the Subject : STABLE |
||||||
|
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 |
|||||
|
MSIC CODE |
|
|
25111 : Manufacture
of industrial frameworks in metal |
|
|
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 |
|
|
|
|
|
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING
STANDARDS(FRS) |
|
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 |
216,515,208 |
144,850,455 |
203,474,081 |
166,066,246 |
135,344,172 |
|
Other Income |
- |
- |
- |
4,009,906 |
1,275,284 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Total Turnover |
216,515,208 |
144,850,455 |
203,474,081 |
170,076,152 |
136,619,456 |
|
Costs of Goods
Sold |
(162,137,717) |
(116,465,122) |
(174,690,585) |
(138,688,192) |
(105,161,819) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Gross Profit |
54,377,491 |
28,385,333 |
28,783,496 |
31,387,960 |
31,457,637 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS)
FROM OPERATIONS |
26,832,049 |
9,574,339 |
13,685,200 |
8,336,760 |
(28,977,393) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS)
BEFORE TAXATION |
26,832,049 |
9,574,339 |
13,685,200 |
8,336,760 |
(28,977,393) |
|
Taxation |
(6,871,616) |
(2,037,389) |
(1,467,786) |
(2,969,747) |
(937,807) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS)
AFTER TAXATION |
19,960,433 |
7,536,950 |
12,217,414 |
5,367,013 |
(29,915,200) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED
PROFIT/(LOSS) BROUGHT FORWARD |
|||||
|
As previously
reported |
17,992,974 |
27,552,037 |
16,659,436 |
14,493,811 |
60,440,938 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
As restated |
17,992,974 |
27,552,037 |
16,659,436 |
14,493,811 |
60,440,938 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT
AVAILABLE FOR APPROPRIATIONS |
37,953,407 |
35,088,987 |
28,876,850 |
19,860,824 |
30,525,738 |
|
DIVIDENDS -
Ordinary (paid & proposed) |
(6,521,300) |
(17,096,013) |
(1,324,813) |
(3,201,388) |
(16,031,927) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED
PROFIT/(LOSS) CARRIED FORWARD |
31,432,107 |
17,992,974 |
27,552,037 |
16,659,436 |
14,493,811 |
|
============= |
============= |
============= |
============= |
============= |
|
|
INTEREST EXPENSE
(as per notes to P&L) |
|||||
|
Bank overdraft |
- |
171,705 |
299,049 |
686,865 |
232,601 |
|
Hire purchase |
61,449 |
9,104 |
4,238 |
8,786 |
14,408 |
|
Revolving
loans |
433,134 |
141,103 |
- |
- |
- |
|
Term loan /
Borrowing |
918,252 |
375,132 |
- |
- |
- |
|
Others |
58,685 |
170,535 |
74,790 |
205,775 |
84,765 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
1,471,520 |
867,579 |
378,077 |
901,426 |
331,774 |
|
|
============= |
============= |
============= |
============= |
============= |
|
ASSETS
EMPLOYED: |
|||||
|
FIXED ASSETS |
13,999,103 |
12,040,004 |
8,053,641 |
9,180,149 |
4,183,750 |
|
Investments |
7,670 |
7,670 |
7,670 |
7,670 |
7,670 |
|
Deferred
assets |
1,801,207 |
- |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG
TERM INVESTMENTS/OTHER ASSETS |
1,808,877 |
7,670 |
7,670 |
7,670 |
7,670 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG
TERM ASSETS |
15,807,980 |
12,047,674 |
8,061,311 |
9,187,819 |
4,191,420 |
|
Stocks |
24,824,897 |
19,403,505 |
21,087,528 |
18,562,350 |
19,432,113 |
|
Trade debtors |
61,367,283 |
45,396,111 |
42,616,219 |
34,591,513 |
25,514,198 |
|
Other debtors,
deposits & prepayments |
7,956,489 |
2,565,395 |
3,418,518 |
2,401,481 |
1,444,876 |
|
Amount due
from holding company |
8,183,192 |
2,940,686 |
- |
- |
- |
|
Amount due
from related companies |
- |
- |
- |
120,299 |
25,665 |
|
Cash &
bank balances |
10,018,045 |
785,535 |
426,924 |
6,596,188 |
13,013,323 |
|
Others |
- |
4,448,509 |
5,185,981 |
4,458,304 |
2,792,223 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT
ASSETS |
112,349,906 |
75,539,741 |
72,735,170 |
66,730,135 |
62,222,398 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL ASSET |
128,157,886 |
87,587,415 |
80,796,481 |
75,917,954 |
66,413,818 |
|
============= |
============= |
============= |
============= |
============= |
|
|
CURRENT
LIABILITIES |
|||||
|
Trade
creditors |
42,054,143 |
24,904,139 |
29,460,910 |
33,990,168 |
32,189,311 |
|
Other
creditors & accruals |
14,858,070 |
14,965,560 |
11,466,706 |
8,532,873 |
7,727,650 |
|
Hire purchase
& lease creditors |
953,198 |
563,507 |
27,010 |
34,198 |
69,452 |
|
Bank overdraft |
- |
- |
4,456,059 |
4,265,600 |
9,491,832 |
|
Short term
borrowings/Term loans |
14,450,040 |
- |
- |
- |
- |
|
Other
borrowings |
12,982,059 |
11,326,938 |
5,204,014 |
9,025,393 |
- |
|
Amounts owing
to holding company |
3,264,900 |
- |
86,158 |
69,725 |
61,541 |
|
Amounts owing
to related companies |
1,027,986 |
531,636 |
238,948 |
198,943 |
- |
|
Amounts owing
to director |
985,230 |
897,210 |
- |
- |
- |
|
Provision for
taxation |
4,043,910 |
- |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT
LIABILITIES |
94,619,536 |
53,188,990 |
50,939,805 |
56,116,900 |
49,539,786 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
NET CURRENT ASSETS/(LIABILITIES) |
17,730,370 |
22,350,751 |
21,795,365 |
10,613,235 |
12,682,612 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL NET
ASSETS |
33,538,350 |
34,398,425 |
29,856,676 |
19,801,054 |
16,874,032 |
|
============= |
============= |
============= |
============= |
============= |
|
|
SHARE CAPITAL |
|||||
|
Ordinary share
capital |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL SHARE
CAPITAL |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
|
Retained
profit/(loss) carried forward |
31,432,107 |
17,992,974 |
27,552,037 |
16,659,436 |
14,493,811 |
|
Capital
redemption reserve |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL RESERVES |
32,432,107 |
18,992,974 |
28,552,037 |
17,659,436 |
15,493,811 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
SHAREHOLDERS'
FUNDS/EQUITY |
33,432,107 |
19,992,974 |
29,552,037 |
18,659,436 |
16,493,811 |
|
Long term
loans |
- |
13,159,080 |
- |
- |
- |
|
Hire purchase
creditors |
106,243 |
574,870 |
60,734 |
87,737 |
7,192 |
|
Deferred
taxation |
- |
671,501 |
243,905 |
1,053,881 |
373,029 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG
TERM LIABILITIES |
106,243 |
14,405,451 |
304,639 |
1,141,618 |
380,221 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
33,538,350 |
34,398,425 |
29,856,676 |
19,801,054 |
16,874,032 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
TYPES OF FUNDS |
|||||
|
Cash |
10,018,045 |
785,535 |
426,924 |
6,596,188 |
13,013,323 |
|
Net Liquid
Funds |
10,018,045 |
785,535 |
(4,029,135) |
2,330,588 |
3,521,491 |
|
Net Liquid
Assets |
(7,094,527) |
2,947,246 |
707,837 |
(7,949,115) |
(6,749,501) |
|
Net Current
Assets/(Liabilities) |
17,730,370 |
22,350,751 |
21,795,365 |
10,613,235 |
12,682,612 |
|
Net Tangible
Assets |
33,538,350 |
34,398,425 |
29,856,676 |
19,801,054 |
16,874,032 |
|
Net Monetary
Assets |
(7,200,770) |
(11,458,205) |
403,198 |
(9,090,733) |
(7,129,722) |
|
BALANCE SHEET
ITEMS |
|||||
|
Total Borrowings |
28,924,674 |
25,765,498 |
9,747,817 |
13,412,928 |
9,568,476 |
|
Total
Liabilities |
94,725,779 |
67,594,441 |
51,244,444 |
57,258,518 |
49,920,007 |
|
Total Assets |
128,157,886 |
87,587,415 |
80,796,481 |
75,917,954 |
66,413,818 |
|
Net Assets |
33,538,350 |
34,398,425 |
29,856,676 |
19,801,054 |
16,874,032 |
|
Net Assets
Backing |
33,432,107 |
19,992,974 |
29,552,037 |
18,659,436 |
16,493,811 |
|
Shareholders'
Funds |
33,432,107 |
19,992,974 |
29,552,037 |
18,659,436 |
16,493,811 |
|
Total Share Capital |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
|
Total Reserves |
32,432,107 |
18,992,974 |
28,552,037 |
17,659,436 |
15,493,811 |
|
LIQUIDITY
(Times) |
|||||
|
Cash Ratio |
0.11 |
0.01 |
0.01 |
0.12 |
0.26 |
|
Liquid Ratio |
0.93 |
1.06 |
1.01 |
0.86 |
0.86 |
|
Current Ratio |
1.19 |
1.42 |
1.43 |
1.19 |
1.26 |
|
WORKING
CAPITAL CONTROL (Days) |
|||||
|
Stock Ratio |
42 |
49 |
38 |
41 |
52 |
|
Debtors Ratio |
103 |
114 |
76 |
76 |
69 |
|
Creditors
Ratio |
95 |
78 |
62 |
89 |
112 |
|
SOLVENCY
RATIOS (Times) |
|||||
|
Gearing Ratio |
0.87 |
1.29 |
0.33 |
0.72 |
0.58 |
|
Liabilities
Ratio |
2.83 |
3.38 |
1.73 |
3.07 |
3.03 |
|
Times Interest
Earned Ratio |
19.23 |
12.04 |
37.20 |
10.25 |
(86.34) |
|
Assets Backing
Ratio |
33.54 |
34.40 |
29.86 |
19.80 |
16.87 |
|
PERFORMANCE
RATIO (%) |
|||||
|
Operating
Profit Margin |
12.39 |
6.61 |
6.73 |
5.02 |
(21.41) |
|
Net Profit
Margin |
9.22 |
5.20 |
6.00 |
3.23 |
(22.10) |
|
Return On Net
Assets |
84.39 |
30.36 |
47.10 |
46.66 |
(169.76) |
|
Return On
Capital Employed |
81.04 |
29.75 |
40.95 |
38.33 |
(108.36) |
|
Return On
Shareholders' Funds/Equity |
59.70 |
37.70 |
41.34 |
28.76 |
(181.37) |
|
Dividend Pay
Out Ratio (Times) |
0.33 |
2.27 |
0.11 |
0.60 |
0.54 |
|
NOTES TO
ACCOUNTS |
|||||
|
Contingent
Liabilities |
0 |
0 |
0 |
0 |
0 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.06 |
|
|
1 |
Rs.102.35 |
|
Euro |
1 |
Rs.74.97 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
TPT |
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.