MIRA INFORM REPORT

 

 

Report No. :

353910

Report Date :

16.12.2015

 

IDENTIFICATION DETAILS

 

Name :

OMYA MALAYSIA SDN. BHD.

 

 

Formerly Known As :

MALAYSIAN CALCIUM CORPORATION SDN BHD

 

 

Registered Office :

Lot 5026, Jalan Teluk Pulai 27/88, Section 27, 40000 Shah Alam, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

01.12.1989

 

 

Com. Reg. No.:

190278-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of ultra fine calcium carbonate powders

 

 

No. of Employee :

100 [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

 

 

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. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration 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. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. As an oil and gas exporter, Malaysia has previously 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 strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is trying to lessen its dependence on state oil producer Petronas.

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB 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.

:

190278-D

COMPANY NAME

:

OMYA MALAYSIA SDN. BHD.

FORMER NAME

:

MALAYSIAN CALCIUM CORPORATION SDN BHD (31/05/2000)

INCORPORATION DATE

:

01/12/1989

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LOT 5026, JALAN TELUK PULAI 27/88, SECTION 27, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 6, JALAN TELUK PULAI 27/88, SECTION 27, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-55147111

FAX.NO.

:

03-55147100

HP.NO.

:

0122659746

WEB SITE

:

WWW.OMYA.COM

CONTACT PERSON

:

VIJAYABALAN A/L VELU @ ANDREW ( DIRECTOR )

INDUSTRY CODE

:

202

PRINCIPAL ACTIVITY

:

MANUFACTURING OF ULTRA FINE CALCIUM CARBONATE POWDERS

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO 
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 37,000,000.00 DIVIDED INTO 
ORDINARY SHARES 37,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 275,398,828 [2014]

NET WORTH

:

MYR 27,441,286 [2014]

STAFF STRENGTH

:

100 [2015]

BANKER (S)

:

PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

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 ultra fine calcium carbonate powders.

The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).

 

The immediate holding company of the Subject is OMYA AG, a company incorporated in SWITZERLAND.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

08/06/2015

MYR 50,000,000.00

MYR 37,000,000.00

08/07/1991

MYR 10,000,000.00

MYR 7,000,000.00

04/05/1991

MYR 10,000,000.00

MYR 5,058,366.00

01/12/1990

MYR 10,000,000.00

MYR 2,422,891.00

19/12/1989

MYR 25,000.00

MYR 3.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

OMYA AG

H, 4000665, OFTRINGEN

3.017.000.2/2

37,000,000.00

100.00

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

------

37,000,000.00

100.00

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

=====

+ Also Director

 

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


Local No

Country

Company

Status

(%)

As At

212604D

MALAYSIA

OMYA KALSIUM SDN. BHD.

-

100.00

24/02/2015

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. VIJAYABALAN A/L VELU @ ANDREW

Address

:

17-A, LALUAN KLEDANG 6, BUKIT KLEDANG INDAH, 30200 IPOH, PERAK, MALAYSIA.

IC / PP No

:

A2974669

New IC No

:

741230-08-5635

Date of Birth

:

30/12/1974

Nationality

:

MALAYSIAN

Date of Appointment

:

10/01/2014

 

DIRECTOR 2

 

Name Of Subject

:

JAMES GARETH BURNETT

Address

:

66, JALAN SCI 5/5, LAKESIDE VILLA, SUNWAY CITY, 31150 ULU KINTA, PERAK, MALAYSIA.

IC / PP No

:

LH207061

Nationality

:

NEW ZEALANDER

Date of Appointment

:

19/12/2014



MANAGEMENT

 

 

1)

Name of Subject

:

VIJAYABALAN A/L VELU @ ANDREW

Position

:

DIRECTOR

 

2)

Name of Subject

:

SAN LIN ENG

Position

:

HEAD OF FINANCE

 

3)

Name of Subject

:

ANDY LIM

Position

:

SALES MANAGER

 

4)

Name of Subject

:

LEE DERKSERN

Position

:

MARKETING MANAGER

 

5)

Name of Subject

:

PHILIP HENG

Position

:

SALES ENGINEER

 

 

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. YAP SIT LEE

IC / PP No

:

A2628835

New IC No

:

731220-10-5170

Address

:

72, JALAN LE2, LAKE EDGE, BANDAR METRO PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

2)

Company Secretary

:

MS. JOANNE TOH JOO ANN

IC / PP No

:

A3346341

New IC No

:

760331-14-5610

Address

:

19, JALAN PANDAN INDAH 5/5, PANDAN INDAH, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

PUBLIC BANK BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

25/04/1996

N/A

PUBLIC BANK BERHAD

MYR 10,000.00

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



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

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

AUSTRALIA

BANGLADESH

BRUNEI

HONG KONG

INDIA

INDONESIA

MAURITIUS

PAKISTAN

PHILIPPINES

SINGAPORE

SOUTH AFRICA

SOUTH KOREA

SRI LANKA

THAILAND

VIETNAM

TAIWAN

Credit Term

:

N/A

Payment Mode

:

TELEGRAPHIC TRANSFER (TT)
BANK TRANSFER
CASH

Type of Customer

:

PHARMACEUTICAL INDUSTRIES,AGRICULTURE INDUSTRIES,PACKAGING INDUSTRIES,PAPER MANUFACTURERS,CONSTRUCTION INDUSTRY

 

 

OPERATIONS

 

Products manufactured

:

ULTRA FINE CALCIUM CARBONATE POWDERS

Product Brand Name

:

CALCIGLOSS, HYDROCARB, MIMCO, OMYA, OMYACARB, OMYALENE, OMYALITE

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN RUBBER GLOVE MANUFACTURERS ASSOCIATION (MRGMA)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

Total Number of Employees:

 

YEAR

2015

2014

2011

2010

GROUP

N/A

N/A

N/A

N/A

COMPANY

100

65

60

60

 

Branch

:

YES

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of ultra fine calcium carbonate powders. 

The Subject is the producer of industrial minerals.

The Subject mainly products are calcium carbonate & distributor of chemical products for plastics, papers, coatings, construction, environment, agriculture, food and pharmaceutical. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-55147111

Match

:

N/A

Address Provided by Client

:

LOT 6, JALAN TELUK PULAI 27/88, SECTION 27,40000,SHAH ALAM,SELANGOR.

Current Address

:

LOT 6, JALAN TELUK PULAI 27/88, SECTION 27, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


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


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

Return on Shareholder Funds

:

Unfavourable

[

(5.44%)

]

Return on Net Assets

:

Unfavourable

[

2.51%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

16 Days

]

Debtor Ratio

:

Favourable

[

55 Days

]

Creditors Ratio

:

Favourable

[

47 Days

]

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

Liquidity

Liquid Ratio

:

Favourable

[

1.75 Times

]

Current Ratio

:

Favourable

[

2.08 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

:

Unfavourable

[

1.25 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

Overall Assessment :

Generally, the Subject's performance has improved with higher turnover and profit. 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. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

Overall financial condition of the Subject : LIMITED

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.0

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

4.7

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

82,480

85,258

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

3.2

4.0

Unemployment Rate

3.3

3.2

3.0

2.9

3.2

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

4.00

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

6.85

-

Business Loans Disbursed( % )

15.3

32.2

-

56.0

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

43,486.6

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

49,203

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

6.1

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

21,753

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

(17.7)

-

Registration of New Business ( No. )

284,598

324,761

329,895

332,723

-

Registration of New Business ( % )

5.0

14.0

2.0

1.0

-

Business Dissolved ( No. )

20,121

20,380

18,161

21,436

-

Business Dissolved ( % )

1.9

1.3

(10.9)

18.0

-

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

44.0

44.2

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

27.4

29.4

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

63.6

58.8

Credit Cards Spending ( % )

15.6

12.6

-

13.5

-

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)

1.0

0.7

0.7

2.8

Oil & Gas

(1.7)

-

-

3.0

-

Other Mining

-

-

-

46.6

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.4

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

5.3

Electrical & Electronics

(4.0)

12.7

6.9

13.3

7.9

Rubber Products

20.7

3.0

11.7

(0.3)

3.4

Wood Products

(5.1)

8.7

(2.7)

5.1

7.1

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

7.2

Domestic-oriented Industries

10.7

1.7

6.8

9.4

3.3

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

8.90

Chemical & Chemical Products

10.0

10.8

5.6

1.4

-

Plastic Products

3.8

-

-

2.7

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

3.6

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

7.2

Transport Equipment

12.0

3.4

13.8

22.9

7.6

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

13.0

-

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

 

202 : Manufacture of other chemical 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

 

 

Incorporated in 1989, the Subject is a Private Limited company, focusing on manufacturing of ultra fine calcium carbonate powders. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. The Subject is a large entity with strong capital position of MYR 37,000,000. We are confident with the Subject's business and its future growth prospect. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment.


Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a moderate size company, the Subject has a total workforce of 100 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 27,441,286, the Subject should be able to maintain its business in the near terms. 


The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources. 


The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts. 


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry. 


Based on the above condition, we recommend credit be granted to the Subject normally.

 



PROFIT AND LOSS ACCOUNT

 

 

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

OMYA MALAYSIA SDN. BHD.

 

Financial Year End

2014-12-31

2013-12-31

2012-12-31

2011-12-31

2010-12-31

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

275,398,828

234,245,042

193,784,516

162,925,316

96,269,773

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

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

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

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

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

Total Turnover

275,398,828

234,245,042

193,784,516

162,925,316

96,269,773

Costs of Goods Sold

(190,722,892)

(152,088,959)

(110,101,378)

(96,912,763)

-

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

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

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

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

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

Gross Profit

84,675,936

82,156,083

83,683,138

66,012,553

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

1,589,605

115,933

23,358,174

3,485,807

30,565,092

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,589,605

115,933

23,358,174

3,485,807

30,565,092

Taxation

(3,081,189)

(4,081,815)

(1,562,068)

(136,000)

(838,539)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(1,491,584)

(3,965,882)

21,796,106

3,349,807

29,726,553

Minority interests

-

-

-

-

(408,575)

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

(1,491,584)

(3,965,882)

21,796,106

3,349,807

29,317,978

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

(1,491,584)

(3,965,882)

21,796,106

3,349,807

29,317,978

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(6,067,130)

19,898,752

3,802,646

26,452,839

12,797,311

Prior year adjustment

-

-

-

-

2,853,711

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

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

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

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

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

As restated

(6,067,130)

19,898,752

3,802,646

26,452,839

15,651,022

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(7,558,714)

15,932,870

25,598,752

29,802,646

44,969,000

TRANSFER TO RESERVES - General

-

-

-

-

(4,116,161)

DIVIDENDS - Ordinary (paid & proposed)

(2,000,000)

(22,000,000)

(5,700,000)

(26,000,000)

(14,400,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(9,558,714)

(6,067,130)

19,898,752

3,802,646

26,452,839

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Others

6,265,453

6,923,064

6,421,833

4,317,462

-

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

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

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

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

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

6,265,453

6,923,064

6,421,833

4,317,462

-

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

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

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

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

-

DEPRECIATION (as per notes to P&L)

17,379,639

15,084,005

13,609,847

11,358,451

-

AMORTIZATION

4,401,952

4,401,953

4,401,952

4,401,952

-

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

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

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

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

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

21,781,591

19,485,958

18,011,799

15,760,403

-

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

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

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

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

 

 

 

BALANCE SHEET

 

 

OMYA MALAYSIA SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

243,078,460

253,041,666

243,091,199

224,700,898

122,124,723

Investments

1,478,734

1,676,083

-

-

-

Deferred assets

9,953

9,953

-

-

-

Others

10,688

10,688

10,688

10,688

-

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,499,375

1,696,724

10,688

10,688

10,688

Own goodwill

2,296,486

2,296,486

-

-

-

Goodwill on consolidation

838,632

838,632

-

2,296,486

-

Others

26,411,716

30,813,668

38,350,739

40,456,205

-

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

29,546,834

33,948,786

38,350,739

42,752,691

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

274,124,669

288,687,176

281,452,626

267,464,277

122,135,411

Stocks

11,773,853

11,276,644

12,141,565

10,213,030

-

Trade debtors

41,395,681

36,425,904

30,365,909

21,066,793

-

Other debtors, deposits & prepayments

1,795,746

2,277,002

2,645,471

3,549,589

-

Amount due from related companies

15,386,884

11,148,411

1,443,689

1,386,037

-

Cash & bank balances

2,182,057

199,656

1,297,102

1,719,386

-

Others

1,108,841

145,000

1,499,431

946,596

-

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

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

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

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

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

TOTAL CURRENT ASSETS

73,643,062

61,472,617

49,393,167

38,881,431

29,682,156

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

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

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

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

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

TOTAL ASSET

347,767,731

350,159,793

330,845,793

306,345,708

151,817,567

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

24,318,047

15,437,314

16,732,467

16,418,954

-

Other creditors & accruals

6,060,980

6,652,241

4,654,973

6,181,517

-

Amounts owing to related companies

4,981,649

2,356,593

281,945,780

272,376,088

-

Provision for taxation

-

65,990

57,578

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

35,360,676

24,512,138

303,390,798

294,976,559

118,100,728

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

38,282,386

36,960,479

(253,997,631)

(256,095,128)

(88,418,572)

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

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

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

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

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

TOTAL NET ASSETS

312,407,055

325,647,655

27,454,995

11,369,149

33,716,839

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

37,000,000

37,000,000

7,000,000

7,000,000

7,000,000

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

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

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

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

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

TOTAL SHARE CAPITAL

37,000,000

37,000,000

7,000,000

7,000,000

7,000,000

Retained profit/(loss) carried forward

(9,558,714)

(6,067,130)

19,898,752

3,802,646

26,452,839

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

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

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

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

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

TOTAL RESERVES

(9,558,714)

(6,067,130)

19,898,752

3,802,646

26,452,839

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

27,441,286

30,932,870

26,898,752

10,802,646

33,452,839

Deferred taxation

5,091,714

2,716,401

264,000

264,000

-

Others

279,874,055

291,998,384

292,243

302,503

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

284,965,769

294,714,785

556,243

566,503

264,000

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

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

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

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

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

312,407,055

325,647,655

27,454,995

11,369,149

33,716,839

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

OMYA MALAYSIA SDN. BHD.

 

TYPES OF FUNDS

Cash

2,182,057

199,656

1,297,102

1,719,386

-

Net Liquid Funds

2,182,057

199,656

1,297,102

1,719,386

-

Net Liquid Assets

26,508,533

25,683,835

(266,139,196)

(266,308,158)

(88,418,572)

Net Current Assets/(Liabilities)

38,282,386

36,960,479

(253,997,631)

(256,095,128)

(88,418,572)

Net Tangible Assets

282,860,221

291,698,869

(10,895,744)

(31,383,542)

33,716,839

Net Monetary Assets

(258,457,236)

(269,030,950)

(266,695,439)

(266,874,661)

(88,682,572)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

7,855,058

7,038,997

29,780,007

7,803,269

-

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

29,636,649

26,524,955

47,791,806

23,563,672

-

BALANCE SHEET ITEMS

Total Borrowings

0

0

0

0

-

Total Liabilities

320,326,445

319,226,923

303,947,041

295,543,062

118,364,728

Total Assets

347,767,731

350,159,793

330,845,793

306,345,708

151,817,567

Net Assets

312,407,055

325,647,655

27,454,995

11,369,149

33,716,839

Net Assets Backing

27,441,286

30,932,870

26,898,752

10,802,646

33,452,839

Shareholders' Funds

27,441,286

30,932,870

26,898,752

10,802,646

33,452,839

Total Share Capital

37,000,000

37,000,000

7,000,000

7,000,000

7,000,000

Total Reserves

(9,558,714)

(6,067,130)

19,898,752

3,802,646

26,452,839

LIQUIDITY (Times)

Cash Ratio

0.06

0.01

0

0.01

-

Liquid Ratio

1.75

2.05

0.12

0.10

-

Current Ratio

2.08

2.51

0.16

0.13

0.25

WORKING CAPITAL CONTROL (Days)

Stock Ratio

16

18

23

23

-

Debtors Ratio

55

57

57

47

-

Creditors Ratio

47

37

55

62

-

SOLVENCY RATIOS (Times)

Gearing Ratio

0

0

0

0

-

Liabilities Ratio

11.67

10.32

11.30

27.36

3.54

Times Interest Earned Ratio

1.25

1.02

4.64

1.81

-

Assets Backing Ratio

7.64

7.88

(1.56)

(4.48)

4.82

PERFORMANCE RATIO (%)

Operating Profit Margin

0.58

0.05

12.05

2.14

31.75

Net Profit Margin

(0.54)

(1.69)

11.25

2.06

30.45

Return On Net Assets

2.51

2.16

108.47

68.64

90.65

Return On Capital Employed

2.30

1.96

45.25

14.42

90.65

Return On Shareholders' Funds/Equity

(5.44)

(12.82)

81.03

31.01

87.64

Dividend Pay Out Ratio (Times)

1.34

5.55

0.26

7.76

0.49

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.67.04

UK Pound

1

Rs.101.67

Euro

1

Rs.73.93

MYR

1

Rs. 15.43

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.