MIRA INFORM REPORT

 

 

Report No. :

355865

Report Date :

23.12.2015

 

IDENTIFICATION DETAILS

 

Name :

TREFFERT COATINGS (S.E.A.) SDN. BHD.

 

 

Formerly Known As :

TREFFERT-INCHEM (S.E.A.) SDN BHD

 

 

Registered Office :

Suite 3.6, Menara Pelangi, 2, Jalan Kuning, Taman Pelangi, Level 3, 80400 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

10.03.1997

 

 

Com. Reg. No.:

422302-P

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing of coatings

 

 

No. of Employee :

40 [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 :

Unknown

 

 

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

 

Company name

 

TREFFERT COATINGS (S.E.A.) SDN. BHD.

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

422302-P

COMPANY NAME

:

TREFFERT COATINGS (S.E.A.) SDN. BHD.

FORMER NAME

:

TREFFERT-INCHEM (S.E.A.) SDN BHD (21/12/2004)

INCORPORATION DATE

:

10/03/1997

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 3.6, MENARA PELANGI, 2, JALAN KUNING, TAMAN PELANGI, LEVEL 3, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

PLO 577, JALAN KELULI 8, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2515115

FAX.NO.

:

07-2514115

CONTACT PERSON

:

LAI KEUNG FATT ( MANAGING DIRECTOR )

INDUSTRY CODE

:

20221

PRINCIPAL ACTIVITY

:

MANUFACTURING OF COATINGS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 4,600,000.00 DIVIDED INTO 
ORDINARY SHARES 4,600,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 22,028,911 [2012]

NET WORTH

:

MYR 9,913,013 [2012]

STAFF STRENGTH

:

40 [2015]

BANKER (S)

:

CIMB BANK BHD
PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL 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 coatings.

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

The immediate holding company of the Subject is TREFFERT ASIA PACIFIC PTE. LTD., a company incorporated in SINGAPORE.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 5,000,000.00

MYR 4,600,000.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

TREFFERT ASIA PACIFIC PTE. LTD.

20, PECK SEAH STREET, #05-00 079312 ,SINGAPORE

XLZ00213731

4,600,000.00

100.00

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

------

4,600,000.00

100.00

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

=====

+ Also Director

 

Former Shareholder(s) :

Name

Country

IC/PP/Loc No

Shareholding

Last Updated

TREFFERT HOLDINGS INTERNATIONAL PTE. LTD.

N/A

XLZ00002195

4,600,000.00

15/06/2009

 

 

 

DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MARCEL CHRISTIAN DISSEL

Address

:

VOGELSANGSTRASSE 18, CH-8006, ZURICH, SWITZERLAND.

IC / PP No

:

NM7LCR635

Nationality

:

SAINT HELENIAN

Date of Appointment

:

06/04/2011

 

DIRECTOR 2

 

Name Of Subject

:

TAMER NASR TALAAT

Address

:

FELSENEGGSTRASSE 14, CH-8707 UETIKON, SWITZERLAND.

IC / PP No

:

F1320395

Nationality

:

SWISS

Date of Appointment

:

06/04/2011

 

DIRECTOR 3

 

Name Of Subject

:

MS. LIAU YEONG YEONG

Address

:

BLK A, 08-10, PAN VISTA APARTMENT, 15, JALAN PERMAS 7, PERMAS JAYA, 81750 MASAI, JOHOR, MALAYSIA.

Other Address(es)

:

JLN MOLEK 2 - 2/42 TMN MOLEK, TAMAN MOLEK, JOHOR JAYA, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

IC / PP No

:

A0574792

New IC No

:

670210-01-5052

Date of Birth

:

10/02/1967

Nationality

:

MALAYSIAN

Date of Appointment

:

06/04/2011

 

DIRECTOR 4

 

Name Of Subject

:

MR. LAI KEUNG FATT

Address

:

63, JALAN PULAI PERDANA 3/9, TAMAN SRI PULAI PERDANA, 81110 PULAI, JOHOR, MALAYSIA.

IC / PP No

:

A1547356

New IC No

:

700723-04-5171

Date of Birth

:

23/07/1970

Nationality

:

MALAYSIAN

Date of Appointment

:

16/04/2013

 

DIRECTOR 5

 

Name Of Subject

:

ANDREAS DAVID HARTMANN

Address

:

SPEICHERSTRASSE 27, CH-9000 ST., GALLEN, SWITZERLAND.

IC / PP No

:

F2109659

Date of Appointment

:

31/07/2012





MANAGEMENT

 

 

1)

Name of Subject

:

LAI KEUNG FATT

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

LIAU YEONG YEONG

Position

:

FINANCE MANAGER

 

 

 

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. SUJATA MENON A/P K.R.D.S. CHANDRAN

IC / PP No

:

A1515978

New IC No

:

700202-01-5954

Address

:

3, JALAN PUTEH 5, TAMAN PELANGI, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

2)

Name

:

PUBLIC BANK BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

04/07/1997

N/A

PUBLIC BANK BERHAD

MYR 30,000.00

Satisfied

2

27/12/1997

FDR

PUBLIC BANK BERHAD

MYR 25,000.00

Satisfied

3

20/12/1999

N/A

PUBLIC BANK BERHAD

MYR 44,120.00

Satisfied

4

26/01/2000

N/A

PUBLIC BANK BERHAD

MYR 1,750.00

Satisfied

5

12/06/2000

N/A

PUBLIC BANK BERHAD

MYR 7,800.00

Satisfied

6

27/06/2000

N/A

PUBLIC BANK BERHAD

MYR 10,100.00

Satisfied

7

04/07/2000

N/A

PUBLIC BANK BERHAD

MYR 7,800.00

Satisfied

8

15/07/2000

N/A

PUBLIC BANK BERHAD

MYR 10,000.00

Satisfied

9

28/07/2000

N/A

PUBLIC BANK BERHAD

MYR 8,100.00

Satisfied

11

12/10/2001

N/A

PUBLIC BANK BERHAD

MYR 100,000.00

Unsatisfied

10

16/10/2001

N/A

BUMIPUTRA COMMERCE BANK BERHAD

MYR 5,800,000.00

Satisfied

12

01/11/2002

N/A

BUMIPUTRACOMMERCE BANK BERHAD

MYR 2,450,000.00

Unsatisfied

13

07/08/2003

FDR

BUMIPUTRACOMMERCE BANK BERHAD

MYR 5,800,000.00

Unsatisfied

14

22/11/2006

INWARD LETTER OF CREDIT

CIMB BANK BERHAD

-

Satisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

No blacklisted record & debt collection case was found in our defaulters' databank.

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

INDONESIA

THAILAND

PHILIPPINES

CHINA

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

MANUFACTURING INDUSTRIES,FURNITURE INDUSTRY

CUSTOMER(S)

:

1) GUTHRIE WOOD PRODUCTS SDN BHD

 

 

OPERATIONS

 

Products manufactured

:

WATER BORNE AND ULTRA VIOLET CURING SURFACE COATING MATERIALS

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2015

2013

2012

2010

GROUP

N/A

N/A

N/A

N/A

COMPANY

40

38

41

44

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of coatings. 

The Subject produces waterbase wood-coating products mainly for wood preservations.

We were informed that the Subject also specializes in waterborne and acrylic UV-curable finishing systems.

The coatings are used for particle boards, fibreboards, parquet, veneered flooring panels, foils, profile wood, veneered raw flushed doors and etc. 



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

072515115

Current Telephone Number

:

07-2515115

Match

:

YES

Address Provided by Client

:

PLO 577, JALAN KELULI 8, KAWASAN PERINDUSTRIAN PASIR GUDANG,81700,PASIR GUDANG,JOHOR.

Current Address

:

PLO 577, JALAN KELULI 8, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

NO

 

Other Investigations


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


FINANCIAL ANALYSIS

 

 

The Subject's latest financial accounts are up to 2012 which is out dated in our opinion. Therefore, our comment on the Subject financial performance is restricted thereto.

Overall financial condition of the Subject : N/A

 

 

 

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

20221 : Manufacture of paints, varnishes and similar coatings ink and mastics

INDUSTRY :

MANUFACTURING

The manufacturing sector is expected to grow by 4.3% in 2015. Export-oriented industries are expected to benefit from higher demand as a result of improving growth in advanced economies, while domestic-oriented industries will be boosted by resilient domestic economic activities. The resource-based industry is envisaged to grow steadily attributed to improved demand for chemical, petroleum, rubber, wood and plastic products. In addition, strong construction activities following the implementation of infrastructure projects under the 11MP will augur well for growth in iron and steel as well as cement segments.

In first six months of 2015, the sector expanded at a slower pace of 4.9%. Output of the sector moderated to 4.8% while the sales value of manufactured products grew marginally by 0.1% to RM379.9 billion during the first seven months of 2015. Output from export-oriented industries also increased at a slower pace of 5.3% due to weaker global demand. The manufacturing sector continued to attract domestic and foreign investments, with projects approved by the Malaysian Investment Development Authority (MIDA) valued at RM49.5 billion for the first six months of 2015. 

Besides that, production of wood and wood products rose by 7.1% largely supported by higher demand for wooden and cane furniture as well as particleboard and fibreboard with output up by 6.5% and 35.4%, respectively. The overall positive performance of the wood products sub-sector was attributed to higher demand from the US, Singapore and Australia. Output of rubber products rebounded to 3.4%, mainly due to higher output of rubber gloves and rubber tires for vehicles. The rubber-based industry stands to benefit from the strengthening US dollar, as most of the input costs are in ringgit while sales are in US dollar. 

Exports of manufactured goods decreased by 3% due to the high base effect during the corresponding period in year 2014. Although, a weak ringgit should have bolstered exports, however, softened by weak external demand coupled with the depreciation in regional currencies during the period. During the first eight months of 2015, the slower expansion in E&E exports and weaker earnings from the non-E&E segment weighed down the overall exports of manufactured goods. Receipts from chemicals and chemical products continued to grow, albeit at a slower pace of 5.7%, mainly due to a slack in the demand for organic chemical products (-3.5%) as major markets. However, the overall growth in the sub-sector was supported by higher exports of plastics in primary form. 

In addition, export earnings of wood products remained high at RM9.8 billion during the first eight months of 2015, it supported by strong demand for wooden furniture. demand for veneer and plywood, contracted by 7.4% following lower demand mainly from Japan. Exports of textile, clothing and footwear grew at a slower pace of 6.8% mainly due to a contraction in the exports of the textile segment, particularly textile yarns and woven fabrics. During the first eight months of 2015, the total registered foreign workers in the country increased to 2.2 million. The employment of foreign workers was largely concentrated in the manufacturing sectors. Under the 11MP, the Government will improve the management of foreign workers through the establishment of an improved framework to take into consideration the relevant laws, rules, regulations, national policies and directives relating to recruitment, employment and repatriation of workers.

Under budget 2015, the Government will provide a new incentive that is, Special Reinvestment Allowance to promote reinvestment among existing companies in the manufacturing sectors. The rate of claim is at 60% of the qualifying capital expenditure and is allowed to be set off against 70% of statutory income from year of assessment 2016 to 2018. 

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1997, the Subject is a Private Limited company, focusing on manufacturing of coatings. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Presently, the issued and paid up capital of the Subject stands at MYR 4,600,000. The Subject have a strong support from its holding company. 


Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is operating on a medium scale and it has approximately 40 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. 


No latest financial accounts were filed with the Registry office during our inspection. Therefore, our comment on the Subject's overall financial performance are restricted thereto. 


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 industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market. 


In view of the above, we recommend credit be granted to the Subject with close monitoring.

 



PROFIT AND LOSS ACCOUNT

 

 

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

TREFFERT COATINGS (S.E.A.) SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

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

SUMMARY

SUMMARY

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

22,028,911

27,706,566

29,180,902

31,333,565

37,632,909

Other Income

-

-

75,069

43,621

-

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

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

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

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

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

Total Turnover

22,028,911

27,706,566

29,255,971

31,377,186

37,632,909

Costs of Goods Sold

-

-

(22,874,432)

(24,351,278)

-

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

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

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

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

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

Gross Profit

-

-

6,381,539

7,025,908

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

205,634

(2,423,814)

(443,631)

(110,146)

(43,588)

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

205,634

(2,423,814)

(443,631)

(110,146)

(43,588)

Taxation

-

342,000

14,611

15,281

(86,226)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

205,634

(2,081,814)

(429,020)

(94,865)

(129,814)

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

5,107,379

7,189,193

7,618,213

7,713,078

7,842,892

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

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

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

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

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

As restated

5,107,379

7,189,193

7,618,213

7,713,078

7,842,892

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,313,013

5,107,379

7,189,193

7,618,213

7,713,078

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

5,313,013

5,107,379

7,189,193

7,618,213

7,713,078

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Others

-

-

130,901

148,555

239,998

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

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

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

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

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

-

-

130,901

148,555

239,998

-

-

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

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

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

 

 

 

BALANCE SHEET

 

 

TREFFERT COATINGS (S.E.A.) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

6,216,497

6,682,719

7,293,289

7,759,769

6,779,753

Others

-

-

-

-

1,685,161

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

-

-

1,685,161

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

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

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

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

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

TOTAL LONG TERM ASSETS

6,216,497

6,682,719

7,293,289

7,759,769

8,464,914

Stocks

-

-

4,251,423

3,548,651

6,053,577

Trade debtors

-

-

4,703,264

5,240,468

6,801,279

Other debtors, deposits & prepayments

-

-

63,758

87,902

184,482

Short term deposits

-

-

-

-

167,112

Amount due from holding company

-

-

16,674

33,844

-

Amount due from related companies

-

-

1,149,221

887,952

1,904

Cash & bank balances

-

-

1,693,750

2,817,209

1,365,488

Others

-

-

643,891

541,530

377,816

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

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

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

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

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

TOTAL CURRENT ASSETS

9,406,659

11,352,034

12,521,981

13,157,556

14,951,658

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

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

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

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

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

TOTAL ASSET

15,623,156

18,034,753

19,815,270

20,917,325

23,416,572

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

-

-

-

-

5,181,207

Other creditors & accruals

-

-

-

-

1,063,975

Hire purchase & lease creditors

-

-

-

-

134,304

Bank overdraft

-

-

-

-

857,273

Short term borrowings/Term loans

-

-

349,603

670,856

279,784

Bill & acceptances payable

-

-

-

-

208,000

Amounts owing to related companies

-

-

-

-

1,823,356

Provision for taxation

-

-

342,000

433,000

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

-

8,298,188

691,603

1,103,856

9,547,899

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

9,406,659

3,053,846

11,830,378

12,053,700

5,403,759

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

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

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

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

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

TOTAL NET ASSETS

15,623,156

9,736,565

19,123,667

19,813,469

13,868,673

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

4,600,000

4,600,000

4,600,000

4,600,000

4,600,000

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

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

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

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

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

TOTAL SHARE CAPITAL

4,600,000

4,600,000

4,600,000

4,600,000

4,600,000

Retained profit/(loss) carried forward

5,313,013

5,107,379

7,189,193

7,618,213

7,713,078

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

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

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

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

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

TOTAL RESERVES

5,313,013

5,107,379

7,189,193

7,618,213

7,713,078

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

9,913,013

9,707,379

11,789,193

12,218,213

12,313,078

Long term loans

-

-

1,500,387

1,645,605

856,353

Hire purchase creditors

-

-

-

-

195,242

Deferred taxation

-

-

-

-

504,000

Others

-

-

5,834,087

5,949,651

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

5,710,143

29,186

7,334,474

7,595,256

1,555,595

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

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

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

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

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

15,623,156

9,736,565

19,123,667

19,813,469

13,868,673

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

TREFFERT COATINGS (S.E.A.) SDN. BHD.

 

TYPES OF FUNDS

Cash

-

-

1,693,750

2,817,209

1,532,600

Net Liquid Funds

-

-

1,693,750

2,817,209

675,327

Net Liquid Assets

9,406,659

3,053,846

7,578,955

8,505,049

(649,818)

Net Current Assets/(Liabilities)

9,406,659

3,053,846

11,830,378

12,053,700

5,403,759

Net Tangible Assets

15,623,156

9,736,565

19,123,667

19,813,469

13,868,673

Net Monetary Assets

3,696,516

3,024,660

244,481

909,793

(2,205,413)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

-

-

0

0

0

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

-

-

0

0

0

BALANCE SHEET ITEMS

Total Borrowings

-

-

1,849,990

2,316,461

2,322,956

Total Liabilities

5,710,143

8,327,374

8,026,077

8,699,112

11,103,494

Total Assets

15,623,156

18,034,753

19,815,270

20,917,325

23,416,572

Net Assets

15,623,156

9,736,565

19,123,667

19,813,469

13,868,673

Net Assets Backing

9,913,013

9,707,379

11,789,193

12,218,213

12,313,078

Shareholders' Funds

9,913,013

9,707,379

11,789,193

12,218,213

12,313,078

Total Share Capital

4,600,000

4,600,000

4,600,000

4,600,000

4,600,000

Total Reserves

5,313,013

5,107,379

7,189,193

7,618,213

7,713,078

LIQUIDITY (Times)

Cash Ratio

-

-

2.45

2.55

0.16

Liquid Ratio

-

-

11.96

8.70

0.93

Current Ratio

-

1.37

18.11

11.92

1.57

WORKING CAPITAL CONTROL (Days)

Stock Ratio

-

-

53

41

59

Debtors Ratio

-

-

59

61

66

Creditors Ratio

-

-

0

0

50

SOLVENCY RATIOS (Times)

Gearing Ratio

-

-

0.16

0.19

0.19

Liabilities Ratio

0.58

0.86

0.68

0.71

0.90

Times Interest Earned Ratio

-

-

(2.39)

0.26

0.82

Assets Backing Ratio

3.40

2.12

4.16

4.31

3.01

PERFORMANCE RATIO (%)

Operating Profit Margin

0.93

(8.75)

(1.52)

(0.35)

(0.12)

Net Profit Margin

0.93

(7.51)

(1.47)

(0.30)

(0.34)

Return On Net Assets

1.32

(24.89)

(1.64)

0.19

1.42

Return On Capital Employed

1.32

(24.89)

(1.64)

0.19

1.32

Return On Shareholders' Funds/Equity

2.07

(21.45)

(3.64)

(0.78)

(1.05)

Dividend Pay Out Ratio (Times)

-

-

0

0

0

NOTES TO ACCOUNTS

Contingent Liabilities

-

0

0

0



 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.30

UK Pound

1

Rs.98.71

Euro

1

Rs.72.33

MYR

1

Rs. 15.39

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.