EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
781769-K
|
|
COMPANY NAME
|
:
|
RECRON (MALAYSIA) SDN. BHD.
|
|
FORMER NAME
|
:
|
REAL AIM DEVELOPMENT SDN BHD (20/08/2007)
|
|
INCORPORATION DATE
|
:
|
20/07/2007
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED (LIMITED BY SHARE)
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
SUITE 7.01 - 7.03, WISMA GOLDHILL, 67 JALAN RAJA CHULAN, LEVEL 7, 50200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
WISMA GOLDHILL, 67, JALAN RAJA CHULAN, LEVEL 7, LEVEL 8 & LEVEL
9, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-20316000
|
|
FAX.NO.
|
:
|
03-20315000
|
|
WEB SITE
|
:
|
WWW.RECRONMALAYSIA.COM
|
|
CONTACT PERSON
|
:
|
KULKARNI VINAY RAMCHANDRA ( CEO )
|
|
|
|
|
INDUSTRY CODE
|
:
|
13990
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURING OF TEXTILES AND FIBRE PRODUCTS
|
|
AUTHORISED CAPITAL
|
:
|
MYR 350,000,000.00 DIVIDED INTO
ORDINARY SHARE 350,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 113,187,500.00 DIVIDED INTO
ORDINARY SHARES 113,187,500 CASH OF MYR 1.00 EACH.
|
|
|
|
|
SALES
|
:
|
MYR 3,561,050,000 [2013]
|
|
NET WORTH
|
:
|
MYR 816,860,000 [2013]
|
|
M1000 OVERALL RANKING
|
:
|
135[2011]
|
|
M1000 INDUSTRY RANKING
|
:
|
1[2011]
|
|
|
|
|
STAFF STRENGTH
|
:
|
7500 [2015]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
MYR 243,000 (USD 81,000)
|
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 textiles and fibre products.
The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).
|
According to the Malaysia 1000 publication, the Subject's ranking
are as follows:
|
|
|
|
|
|
YEAR
|
2011
|
|
|
|
OVERALL RANKING
|
135
|
|
|
|
INDUSTRY RANKING
|
1
|
|
|
Share Capital History
|
Date
|
Authorised Shared Capital
|
Issue & Paid Up Capital
|
|
15/11/2013
|
MYR 350,000,000.00
|
MYR 113,187,500.00
|
|
24/09/2013
|
MYR 200,000,000.00
|
MYR 113,187,500.00
|
|
20/09/2013
|
MYR 200,000,000.00
|
MYR 2,500,000.00
|
|
22/03/2008
|
MYR 50,000,000.00
|
MYR 2,500,000.00
|
|
28/08/2007
|
MYR 100,000.00
|
MYR 100,000.00
|
|
20/07/2007
|
MYR 100,000.00
|
MYR 2.00
|
The major shareholder(s) of the Subject are shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
RELIANCE GLOBAL BUSINESS B.V.
|
CLAUDE DEBUSSYLAAN 18, 1082 MD AMSTERDAM, NETHERLANDS
|
XLZ00213422
|
113,187,500.00
|
100.00
|
|
|
|
---------------
|
------
|
|
|
|
113,187,500.00
|
100.00
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
UDESHI RAJEN DWARKADAS
|
|
Address
|
:
|
502 SHANTI APARTMENTS, 98 WALKESHWAR ROAD, BOMBAY - 400 006, INDIA,
INDIA.
|
|
IC / PP No
|
:
|
Z21705096
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
22/08/2007
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
PATIL VASANT KRISHNAJI
|
|
Address
|
:
|
PT 4309, JALAN TS 1/16, TAMAN SEMARAK, 71800 NILAI, NEGERI SEMBILAN,
MALAYSIA.
|
|
IC / PP No
|
:
|
H6748797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of Appointment
|
:
|
10/04/2014
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
KULKARNI VINAY RAMCHANDRA
|
|
Address
|
:
|
N-8-1, SURIA STONOR CONDOMINIUM, 2, LORONG STONOR, 50450 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
501336910
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
BRITISH
|
|
Date of Appointment
|
:
|
26/04/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
ANIL KUMAR RAJBANSHI
|
|
Address
|
:
|
A-402, CHAITANYA TOWERS, APPASAHAB MARATHE, MARG, PRABHADEVI,
MUMBAI-40002, INDIA, INDIA.
|
|
IC / PP No
|
:
|
Z1877333
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
05/02/2008
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 5
|
Name Of Subject
|
:
|
PENDSE SHREE MUKUND
|
|
Address
|
:
|
A-13-08, SUASANA SENTRAL CONDOMINIUM, JALAN STESEN SENTRAL 5, KL SENTRAL,
50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
G9958726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of Appointment
|
:
|
10/04/2014
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
KULKARNI VINAY RAMCHANDRA
|
|
Position
|
:
|
CEO
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
PRICEWATERHOUSECOOPERS
|
|
Auditor' Address
|
:
|
1 SENTRAL, JALAN TRAVERS, K.L. CENTRAL, P.O.BOX 10192, LEVEL 15,
50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. SHAHNIZA ANOM BINTI ELIAS
|
|
IC / PP No
|
:
|
A1172646
|
|
New IC No
|
:
|
680929-01-5802
|
|
Address
|
:
|
26 JALAN UNGU U9/35, SUNWAY KAYANGAN, SEKSYEN U9, 40150 SHAH ALAM, SELANGOR,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. TIA HWEI PING
|
|
|
|
|
|
New IC No
|
:
|
820813-10-5728
|
|
Address
|
:
|
118, JALAN SENTOSA 63, KAW 19, 41050 KLANG, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
ENCUMBRANCE (S)
|
Charge No
|
Creation Date
|
Charge Description
|
Chargee Name
|
Total Charge
|
Status
|
|
1
|
25/10/2010
|
DEBENTURE
|
ICICI BANK LIMITED, SINGAPORE BRANCH
|
USD 25,000,000.00
|
Unsatisfied
|
|
2
|
25/10/2010
|
MEMORANDUM OF CHARGE OVER DEPOSITS
|
ICICI BANK LIMITED, SINGAPORE BRANCH
|
-
|
Unsatisfied
|
|
3
|
11/10/2011
|
THE CHARGE MADE BETWEEN THE COMPANY AND MALAYAN BANKING BERHAD
|
MALAYAN BANKING BHD
|
USD 30,000,000.00
|
Unsatisfied
|
|
4
|
07/12/2012
|
THE CHARGE MADE BETWEEN THE COMPANY AND MALAYAN BANKING BERHAD
|
MALAYAN BANKING BHD
|
USD 10,625,000.00
|
Unsatisfied
|
LITIGATION CHECK AGAINST SUBJECT
* A check has been conducted in our databank againt the Subject whether the
Subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER CHECK AGAINST SUBJECT
|
* We have checked through the Subject in our defaulters' database which
comprised of debtors that have been blacklisted by our customers and
debtors that have been placed or assigned to us for collection.
No blacklisted record & debt collection case was found in our
defaulters' databank.
PAYMENT RECORD
SOURCES OF RAW MATERIALS:
|
|
Local
|
:
|
YES
|
|
Overseas
|
:
|
YES
|
|
Import Countries
|
:
|
ASIA
|
The Subject refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data
we conclude that :
|
OVERALL PAYMENT HABIT
|
|
Prompt 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
X
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
SOUTHEAST ASIA
AFRICA
MIDDLE EAST
UNITED STATES
EUROPE
|
|
Credit Term
|
:
|
30 - 90 DAYS
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
TELEGRAPHIC TRANSFER (TT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
TEXTILES AND FIBRE PRODUCTS
|
|
|
|
|
|
Ownership of premises
|
:
|
OWNED
|
|
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
|
7500
|
7,500
|
7,500
|
7,500
|
7,500
|
7,350
|
|
|
|
|
Branch
|
:
|
YES
|
|
No of Branches
|
:
|
2
|
|
|
|
|
Branch(es)
|
:
|
LOT 2322, TANGGA BATU INDUSTRIAL ESTATE, 76400 TANJONG KLING,
MELAKA, MALAYSIA.
Tel No: 06-3511190
Fax No: 06-3511176
PT 1886, 1891, 1892, 7927, 7928, KAWASAN PERINDUSTRIAN NILAI, 71800
NILAI, NEGERI SEMBILAN, MALAYSIA.
Tel No: 06-7992855
Fax No: 06-7992872
|
|
|
|
Other
Information:
The Subject is principally engaged in the (as a / as an) manufacturing of textiles
and fibre products.
The Subject is one of largest intergrated polyester and Textile Company with
world class manufacturing facilities at Nilai and Melaka in Malaysia.
The Subject's products ranges are as follows:
1) Polyester Polymer Production
2) Nylon Polymer Production
3) Polyester Staple Fibre
4) Spun Yarns
5) Polyester Filament Yarns
6) PET bottle grade Resins
7) Fabrics
The Subject produces annually over 500,000 tons of Polyester Products, 36,000
tons of Nylon Products and 500 million meters of Fabrics.
The products are used for making ready made garments, home furnishings,
curtain materials and others.
The Subject's vertically integrated production units have state of art
machines and equipment. Its biggest asset is its highly skilled and dedicated
work force.
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh investigations carried out on the Subject indicated that
:
|
Telephone Number Provided By Client
|
:
|
0320316000
|
|
Current Telephone Number
|
:
|
03-20316000
|
|
Match
|
:
|
YES
|
|
|
|
|
Address Provided by Client
|
:
|
WISMA GOLDHILL, 67, JALAN RAJA CHULAN, LEVEL 7, LEVEL 8 & LEVEL 9,50200,KUALA
LUMPUR,WILAYAH PERSEKUTUAN.
|
|
Current Address
|
:
|
WISMA GOLDHILL, 67, JALAN RAJA CHULAN, LEVEL 7, LEVEL 8 & LEVEL
9, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
On 5th February 2015 we contacted we contacted one of the staff from the
Subject and she provided some information.
FINANCIAL ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Erratic
|
[
|
2009 - 2013
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2009 - 2013
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
(10.42%)
|
]
|
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
(10.26%)
|
]
|
|
|
|
|
|
|
|
|
|
The fluctuating turnover reflects the fierce competition among the
existing and new market players.Higher losses before tax during the year
could be due to the higher operating costs incurred. 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
|
:
|
Acceptable
|
[
|
56 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Favourable
|
[
|
12 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
11 Days
|
]
|
|
|
|
|
|
|
|
|
|
The Subject kept adequate stocks to meet its normal business
transactions without incurring excessive storage costs. 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
|
:
|
Unfavourable
|
[
|
0.19 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.72 Times
|
]
|
|
|
|
|
|
|
|
|
|
A low liquid ratio means that the Subject may be facing working capital
deficiency. If the Subject cannot obtain additional financing or injection
of fresh capital, it may face difficulties in meeting its short term
obligations.
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Unfavourable
|
[
|
(6.38 Times)
|
]
|
|
|
Gearing Ratio
|
:
|
Acceptable
|
[
|
0.89 Times
|
]
|
|
|
|
|
|
|
|
|
|
The Subject incurred losses in the year. It did not generate
sufficient income to service its interest. If the situation does not improve,
the Subject may be vulnerable to default in servicing the interest. 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 :
|
|
|
|
|
|
|
|
The Subject's losses increased but its turnover showed a
fluctuating trend. This indicate the Subject was slowly losing its market
share due to its competitors. Due to its weak liquidity position, the
Subject will be faced with problems in meeting all its short term
obligations if no short term loan is obtained or additional capital
injected into the Subject. The Subject's interest cover was negative,
indicating that it did not generate sufficient income to service its
interest. If its result does not show impressive improvements or succeed
obtaining short term financing or capital injection, it may not be able to
service its interest and repay the loans. 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 : POOR
|
MALAYSIA ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2011
|
2012
|
2013
|
2014*
|
2015**
|
|
|
|
|
|
|
|
Population ( Million)
|
28.7
|
29.3
|
29.8
|
30.3
|
30.5
|
|
Gross Domestic Products ( % )
|
5.1
|
5.6
|
5.3
|
6.0
|
6.0
|
|
Domestic Demand ( % )
|
8.2
|
9.4
|
5.6
|
6.4
|
6.2
|
|
Private Expenditure ( % )
|
8.2
|
8.0
|
8.6
|
7.9
|
6.9
|
|
Consumption ( % )
|
7.1
|
1.0
|
5.7
|
6.5
|
5.6
|
|
Investment ( % )
|
12.2
|
11.7
|
13.3
|
12.0
|
10.7
|
|
Public Expenditure ( % )
|
8.4
|
13.3
|
4.4
|
2.3
|
4.2
|
|
Consumption ( % )
|
16.1
|
11.3
|
(1.2)
|
2.1
|
3.8
|
|
Investment ( % )
|
(0.3)
|
15.9
|
4.2
|
2.6
|
4.7
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
116,058
|
106,300
|
71,298
|
52,314
|
-
|
|
Government Finance ( MYR Million )
|
(45,511)
|
(42,297)
|
(39,993)
|
(37,291)
|
-
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
(5.4)
|
(4.5)
|
(4.0)
|
(3.5)
|
(3.0)
|
|
Inflation ( % Change in Composite CPI)
|
3.1
|
1.6
|
2.5
|
3.3
|
4.0
|
|
Unemployment Rate
|
3.3
|
3.2
|
3.0
|
3.0
|
3.0
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
415
|
427
|
-
|
417
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
3.50
|
2.20
|
-
|
-
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
14.80
|
14.70
|
-
|
-
|
-
|
|
Average Base Lending Rate ( % )
|
6.60
|
6.53
|
6.53
|
-
|
-
|
|
Business Loans Disbursed( % )
|
15.3
|
32.2
|
-
|
-
|
-
|
|
Foreign Investment ( MYR Million )
|
23,546.1
|
26,230.4
|
38,238.0
|
-
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
45,455
|
45,441
|
46,321
|
-
|
-
|
|
Registration of New Companies ( % )
|
3.0
|
(0.0)
|
1.9
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
132,485
|
17,092
|
26,430
|
-
|
-
|
|
Liquidation of Companies ( % )
|
417.8
|
(87.1)
|
54.6
|
-
|
-
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
284,598
|
324,761
|
329,895
|
-
|
-
|
|
Registration of New Business ( % )
|
5.0
|
14.0
|
2.0
|
-
|
-
|
|
Business Dissolved ( No. )
|
20,121
|
20,380
|
18,161
|
-
|
-
|
|
Business Dissolved ( % )
|
1.9
|
1.3
|
(10.9)
|
-
|
-
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
535.1
|
552.2
|
576.7
|
598.4
|
610.3
|
|
Cellular Phone Subscribers ( Million )
|
35.3
|
38.5
|
43.0
|
43.8
|
-
|
|
Tourist Arrival ( Million Persons )
|
24.7
|
25.0
|
25.7
|
28.0
|
-
|
|
Hotel Occupancy Rate ( % )
|
60.6
|
62.4
|
62.6
|
-
|
-
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
15.6
|
12.6
|
-
|
-
|
-
|
|
Bad Cheque Offenders (No.)
|
32,627
|
26,982
|
28,876
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
19,167
|
19,575
|
21,984
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
5.8
|
2.1
|
12.3
|
-
|
-
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2011
|
2012
|
2013
|
2014*
|
2015**
|
|
|
|
|
|
|
|
Agriculture
|
5.8
|
1.0
|
2.1
|
3.8
|
3.1
|
|
Palm Oil
|
10.8
|
(0.3)
|
2.6
|
6.7
|
-
|
|
Rubber
|
6.1
|
(7.9)
|
(10.1)
|
(10.4)
|
-
|
|
Forestry & Logging
|
(7.6)
|
(4.5)
|
(7.8)
|
(4.2)
|
-
|
|
Fishing
|
2.1
|
4.3
|
1.6
|
2.7
|
-
|
|
Other Agriculture
|
7.1
|
6.4
|
8.2
|
6.2
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
634.1
|
-
|
-
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
3.2
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Mining
|
(5.4)
|
1.4
|
0.9
|
(0.8)
|
2.8
|
|
Oil & Gas
|
(1.7)
|
-
|
-
|
-
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
46.5
|
-
|
-
|
-
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Manufacturing #
|
4.7
|
4.8
|
3.4
|
6.6
|
5.5
|
|
Exported-oriented Industries
|
4.1
|
6.5
|
3.3
|
5.6
|
-
|
|
Electrical & Electronics
|
(4.0)
|
12.7
|
6.9
|
13.3
|
-
|
|
Rubber Products
|
20.7
|
3.0
|
11.7
|
(0.3)
|
-
|
|
Wood Products
|
(5.1)
|
8.7
|
(2.7)
|
5.1
|
-
|
|
Textiles & Apparel
|
13.2
|
(7.1)
|
(2.6)
|
11.5
|
-
|
|
Domestic-oriented Industries
|
10.7
|
1.7
|
6.8
|
9.4
|
-
|
|
Food, Beverages & Tobacco
|
4.80
|
2.70
|
3.60
|
6.13
|
6.13
|
|
Chemical & Chemical Products
|
10.0
|
10.8
|
5.6
|
-
|
-
|
|
Plastic Products
|
3.8
|
-
|
-
|
-
|
-
|
|
Iron & Steel
|
2.2
|
(6.6)
|
5.0
|
0.1
|
-
|
|
Fabricated Metal Products
|
21.8
|
13.8
|
9.9
|
2.9
|
-
|
|
Non-metallic Mineral
|
12.1
|
2.9
|
(2.0)
|
5.4
|
-
|
|
Transport Equipment
|
12.0
|
3.4
|
13.8
|
22.9
|
-
|
|
Paper & Paper Products
|
9.5
|
3.1
|
1.8
|
4.7
|
-
|
|
Crude Oil Refineries
|
9.3
|
-
|
-
|
-
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,537.2
|
-
|
-
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
25.7
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Construction
|
4.7
|
18.6
|
10.9
|
12.7
|
10.7
|
|
Industry Non-Performing Loans ( MYR Million )
|
3,856.9
|
-
|
-
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
10.2
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Services
|
7.1
|
6.4
|
5.9
|
5.9
|
5.6
|
|
Electric, Gas & Water
|
3.5
|
4.4
|
4.2
|
3.6
|
3.9
|
|
Transport, Storage & Communication
|
6.50
|
7.10
|
7.30
|
7.50
|
7.15
|
|
Wholesale, Retail, Hotel & Restaurant
|
5.2
|
4.7
|
5.9
|
6.9
|
6.5
|
|
Finance, Insurance & Real Estate
|
6.90
|
9.70
|
3.70
|
4.65
|
4.25
|
|
Government Services
|
12.4
|
9.4
|
8.3
|
6.1
|
5.6
|
|
Other Services
|
5.1
|
3.9
|
5.1
|
4.8
|
4.5
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,825.2
|
-
|
-
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
23.4
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On Manufacturing Production Index
|
|
|
|
|
|
|
INDUSTRY
ANALYSIS
|
MSIC CODE
|
|
13990 : Manufacture of other textiles n.e.c.
|
|
|
|
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 2007, the Subject is a Private Limited company, focusing on
manufacturing of textiles and fibre products. Having been in business for
more than 5 years, the Subject has established a remarkable clientele base
for itself which has contributed to its business growth. The Subject is a
large entity with strong capital position of MYR 113,187,500. 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 large
entity, the Subject has a steady workforce of 7500 personnel to support its
business operations. Its future prospects seem to be fairly good as its
business operations are running relatively stable. 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.
Despite the higher turnover, the Subject suffered pre-tax losses which
reflected a highly competitive business environment. The Subject has
generated an unfavourable return on shareholders' funds indicating that the
management was inefficient in utilising its funds to generate return. Due
to its weak liquidity position, the Subject may face working capital
deficiency in meeting its short term financial obligations if no fresh
capital are injected into the Subject. The gearing level of the Subject is
slightly high, therefore it faces moderate financial risk. Given a positive
net worth standing at MYR 816,860,000, the Subject should be able to
maintain its business in the near terms.
Having a strong assets backing, the Subject possesses latent assets as
collateral for further financial extension. Hence, it has good chance of
getting loans if the needs arises. 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.
Overall, the Subject's payment habit is good as the Subject has a good
credit control and it could be taking advantage of the cash discounts while
maintaining a good reputation with its creditors.
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)
|
|
|
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
|
3,561,050,000
|
3,106,020,000
|
3,807,050,000
|
3,192,020,000
|
2,888,960,000
|
|
Other Income
|
56,170,000
|
1,260,000
|
5,430,000
|
88,430,000
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
3,617,220,000
|
3,107,280,000
|
3,812,480,000
|
3,280,450,000
|
2,888,960,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
(130,320,000)
|
(115,700,000)
|
44,290,000
|
144,620,000
|
11,710,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
(130,320,000)
|
(115,700,000)
|
44,290,000
|
144,620,000
|
11,710,000
|
|
Taxation
|
45,210,000
|
47,940,000
|
(8,250,000)
|
(21,810,000)
|
4,700,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
(85,110,000)
|
(67,760,000)
|
36,040,000
|
122,810,000
|
16,410,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As previously reported
|
153,200,000
|
220,960,000
|
184,920,000
|
62,110,000
|
45,700,000
|
|
Prior year adjustment
|
230,000
|
-
|
-
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
153,430,000
|
220,960,000
|
184,920,000
|
62,110,000
|
45,700,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
68,320,000
|
153,200,000
|
220,960,000
|
184,920,000
|
62,110,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
68,320,000
|
153,200,000
|
220,960,000
|
184,920,000
|
62,110,000
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L)
|
|
|
|
|
|
|
Bank overdraft
|
10,920,000
|
10,570,000
|
8,260,000
|
11,160,000
|
11,410,000
|
|
Term loan / Borrowing
|
6,750,000
|
8,270,000
|
8,130,000
|
9,020,000
|
19,910,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
17,670,000
|
18,840,000
|
16,390,000
|
20,180,000
|
31,320,000
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
BALANCE
SHEET
|
ASSETS EMPLOYED:
|
|
|
|
|
|
|
FIXED ASSETS
|
1,389,860,000
|
1,478,190,000
|
1,547,530,000
|
1,481,940,000
|
1,579,120,000
|
|
|
|
|
|
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
Subsidiary companies
|
330,000
|
-
|
-
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
330,000
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
1,390,190,000
|
1,478,190,000
|
1,547,530,000
|
1,481,940,000
|
1,579,120,000
|
|
|
|
|
|
|
|
Stocks
|
546,950,000
|
381,210,000
|
465,570,000
|
452,260,000
|
449,240,000
|
|
Trade debtors
|
116,790,000
|
78,470,000
|
136,750,000
|
136,800,000
|
142,430,000
|
|
Other debtors, deposits & prepayments
|
77,250,000
|
15,870,000
|
15,560,000
|
48,500,000
|
7,480,000
|
|
Short term deposits
|
-
|
3,820,000
|
3,970,000
|
3,870,000
|
-
|
|
Cash & bank balances
|
490,000
|
400,000
|
120,000
|
1,400,000
|
70,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
741,480,000
|
479,770,000
|
621,970,000
|
642,830,000
|
599,220,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
2,131,670,000
|
1,957,960,000
|
2,169,500,000
|
2,124,770,000
|
2,178,340,000
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Trade creditors
|
103,060,000
|
140,930,000
|
117,000,000
|
132,460,000
|
111,700,000
|
|
Other creditors & accruals
|
64,410,000
|
55,920,000
|
45,840,000
|
48,130,000
|
48,370,000
|
|
Bank overdraft
|
222,550,000
|
204,910,000
|
183,460,000
|
128,540,000
|
235,080,000
|
|
Short term borrowings/Term loans
|
98,440,000
|
91,750,000
|
95,310,000
|
661,610,000
|
654,000,000
|
|
Other borrowings
|
123,230,000
|
121,090,000
|
103,950,000
|
100,000,000
|
165,000,000
|
|
Amounts owing to holding company
|
171,100,000
|
7,830,000
|
-
|
-
|
-
|
|
Amounts owing to related companies
|
129,620,000
|
2,270,000
|
-
|
-
|
-
|
|
Other liabilities
|
121,320,000
|
97,220,000
|
117,320,000
|
6,450,000
|
15,300,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
1,033,730,000
|
721,920,000
|
662,880,000
|
1,077,190,000
|
1,229,450,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
(292,250,000)
|
(242,150,000)
|
(40,910,000)
|
(434,360,000)
|
(630,230,000)
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
1,097,940,000
|
1,236,040,000
|
1,506,620,000
|
1,047,580,000
|
948,890,000
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
|
Ordinary share capital
|
113,190,000
|
2,500,000
|
2,500,000
|
2,500,000
|
2,500,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
113,190,000
|
2,500,000
|
2,500,000
|
2,500,000
|
2,500,000
|
|
|
|
|
|
|
|
Capital reserve
|
635,350,000
|
681,270,000
|
727,190,000
|
773,110,000
|
819,040,000
|
|
Retained profit/(loss) carried forward
|
68,320,000
|
153,200,000
|
220,960,000
|
184,920,000
|
62,110,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
703,670,000
|
834,470,000
|
948,150,000
|
958,030,000
|
881,150,000
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
816,860,000
|
836,970,000
|
950,650,000
|
960,530,000
|
883,650,000
|
|
|
|
|
|
|
|
Long term loans
|
278,930,000
|
351,710,000
|
460,670,000
|
-
|
-
|
|
Deferred taxation
|
2,150,000
|
47,360,000
|
95,300,000
|
87,050,000
|
65,240,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
281,080,000
|
399,070,000
|
555,970,000
|
87,050,000
|
65,240,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
1,097,940,000
|
1,236,040,000
|
1,506,620,000
|
1,047,580,000
|
948,890,000
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
FINANCIAL
RATIO
|
TYPES OF FUNDS
|
|
|
|
|
|
|
Cash
|
490,000
|
4,220,000
|
4,090,000
|
5,270,000
|
70,000
|
|
Net Liquid Funds
|
(222,060,000)
|
(200,690,000)
|
(179,370,000)
|
(123,270,000)
|
(235,010,000)
|
|
Net Liquid Assets
|
(839,200,000)
|
(623,360,000)
|
(506,480,000)
|
(886,620,000)
|
(1,079,470,000)
|
|
Net Current Assets/(Liabilities)
|
(292,250,000)
|
(242,150,000)
|
(40,910,000)
|
(434,360,000)
|
(630,230,000)
|
|
Net Tangible Assets
|
1,097,940,000
|
1,236,040,000
|
1,506,620,000
|
1,047,580,000
|
948,890,000
|
|
Net Monetary Assets
|
(1,120,280,000)
|
(1,022,430,000)
|
(1,062,450,000)
|
(973,670,000)
|
(1,144,710,000)
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
|
Total Borrowings
|
723,150,000
|
769,460,000
|
843,390,000
|
890,150,000
|
1,054,080,000
|
|
Total Liabilities
|
1,314,810,000
|
1,120,990,000
|
1,218,850,000
|
1,164,240,000
|
1,294,690,000
|
|
Total Assets
|
2,131,670,000
|
1,957,960,000
|
2,169,500,000
|
2,124,770,000
|
2,178,340,000
|
|
Net Assets
|
1,097,940,000
|
1,236,040,000
|
1,506,620,000
|
1,047,580,000
|
948,890,000
|
|
Net Assets Backing
|
816,860,000
|
836,970,000
|
950,650,000
|
960,530,000
|
883,650,000
|
|
Shareholders' Funds
|
816,860,000
|
836,970,000
|
950,650,000
|
960,530,000
|
883,650,000
|
|
Total Share Capital
|
113,190,000
|
2,500,000
|
2,500,000
|
2,500,000
|
2,500,000
|
|
Total Reserves
|
703,670,000
|
834,470,000
|
948,150,000
|
958,030,000
|
881,150,000
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
|
Cash Ratio
|
0.00
|
0.01
|
0.01
|
0.00
|
0.00
|
|
Liquid Ratio
|
0.19
|
0.14
|
0.24
|
0.18
|
0.12
|
|
Current Ratio
|
0.72
|
0.66
|
0.94
|
0.60
|
0.49
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Stock Ratio
|
56
|
45
|
45
|
52
|
57
|
|
Debtors Ratio
|
12
|
9
|
13
|
16
|
18
|
|
Creditors Ratio
|
11
|
17
|
11
|
15
|
14
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
|
Gearing Ratio
|
0.89
|
0.92
|
0.89
|
0.93
|
1.19
|
|
Liabilities Ratio
|
1.61
|
1.34
|
1.28
|
1.21
|
1.47
|
|
Times Interest Earned Ratio
|
(6.38)
|
(5.14)
|
3.70
|
8.17
|
1.37
|
|
Assets Backing Ratio
|
9.70
|
494.42
|
602.65
|
419.03
|
379.56
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
|
Operating Profit Margin
|
(3.66)
|
(3.73)
|
1.16
|
4.53
|
0.41
|
|
Net Profit Margin
|
(2.39)
|
(2.18)
|
0.95
|
3.85
|
0.57
|
|
Return On Net Assets
|
(10.26)
|
(7.84)
|
4.03
|
15.73
|
4.53
|
|
Return On Capital Employed
|
(8.53)
|
(6.72)
|
3.59
|
14.01
|
3.63
|
|
Return On Shareholders' Funds/Equity
|
(10.42)
|
(8.10)
|
3.79
|
12.79
|
1.86
|
|
Dividend Pay Out Ratio (Times)
|
0.00
|
0.00
|
0.00
|
0.00
|
0.00
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
0
|
0
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|