MIRA INFORM REPORT

 

 

Report No. :

306600

Report Date :

10.02.2015

 

IDENTIFICATION DETAILS

 

Name :

BEMIS ASIA PACIFIC SDN. BHD.

 

 

Formerly Known As :

PERFECSEAL (ASIA PACIFIC) SDN. BHD.

 

 

Registered Office :

Symphony House, Block D13, Pusat Dagangan Dana 1, Jalan PJU 1A/46, Level 8, 47301 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

13.11.1997

 

 

Com. Reg. No.:

452772-P

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Medical and Flexible Packaging Materials.

 

 

No. of Employees :

160 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 


 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

 

Source : CIA


EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

452772-P

COMPANY NAME

:

BEMIS ASIA PACIFIC SDN. BHD.

FORMER NAME

:

PERFECSEAL (ASIA PACIFIC) SDN. BHD. (10/05/2003)

INCORPORATION DATE

:

13/11/1997

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SYMPHONY HOUSE, BLOCK D13, PUSAT DAGANGAN DANA 1, JALAN PJU 1A/46, LEVEL 8, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

8 & 10, JALAN TP 5, TAMAN PERINDUSTRIAN UEP, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-80266488

FAX.NO.

:

03-80244215

WEB SITE

:

WWW.BEMIS.COM

CONTACT PERSON

:

LIM BEE LEONG ( PRESIDENT )

INDUSTRY CODE

:

26600

PRINCIPAL ACTIVITY

:

MANUFACTURING OF MEDICAL AND FLEXIBLE PACKAGING MATERIALS

AUTHORISED CAPITAL

:

MYR 25,000,000.00 DIVIDED INTO
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 14,682,432.00 DIVIDED INTO
ORDINARY SHARES 6,753,750 CASH AND 7,928,682 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 91,610,330 [2013]

NET WORTH

:

MYR 58,224,581 [2013]

STAFF STRENGTH

:

160 [2015]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

GOOD

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 medical and flexible packaging materials.

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

 

The immediate holding company of the Subject is PERFECSEAL LIMITED, a company incorporated in IRELAND.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/06/2014

MYR 25,000,000.00

MYR 14,682,432.00

31/12/1999

MYR 10,000,000.00

MYR 10,000,000.00

13/11/1997

MYR 1,000,000.00

MYR 2.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

PERFECSEAL LIMITED

ACORN ROAD, CAMPSIE, INDUSTRIAL ESTATE, LONDONDERRY, BT47 3GQ, IRELAND.

NI 17929

14,682,432.00

100.00

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

------

14,682,432.00

100.00

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. NURULUYUN BINTI ABDUL JABAR

Address

:

121, JALAN LIMAU PURUT, BANGSAR PARK, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A0160499

New IC No

:

650606-02-5662

Date of Birth

:

06/06/1965

Nationality

:

MALAYSIAN

Date of Appointment

:

31/07/2014

 

DIRECTOR 2

 

Name Of Subject

:

MR. LIM BEE LEONG

Address

:

1, JALAN ANGGERIK ERIA, 31/109C, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

7466087

New IC No

:

641002-10-7451

Date of Birth

:

02/10/1964

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

13/11/1997


MANAGEMENT

 

 

 

1)

Name of Subject

:

LIM BEE LEONG

Position

:

PRESIDENT

 

2)

Name of Subject

:

YAP PECK GEOK

Position

:

ACCOUNTANT

 

3)

Name of Subject

:

NGUI MEO ONG

Position

:

MARKETING MANAGER

 

4)

Name of Subject

:

MELLISSA WONG

Position

:

HUMAN RESOURCE MANAGER

 

5)

Name of Subject

:

GOH MENG ENG

Position

:

QUALITY CONTROL MANAGER

 

 

AUDITOR

 

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1, SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, P. O. BOX 10192, LEVEL 10, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. NURULUYUN BINTI ABDUL JABAR

IC / PP No

:

A0160499

New IC No

:

650606-02-5662

Address

:

121, JALAN LIMAU PURUT, BANGSAR PARK, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

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

:

N/A

Overseas

:

N/A


The Subject refused to disclose its suppliers.


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

[

X

]

Good 31-60 Days

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

40%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

60%

Export Market

:

ASIA PACIFIC

Credit Term

:

30 DAYS

Payment Mode

:

CHEQUES
LETTER OF CREDIT (LC)
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

COATED PAPER/FILM ROLLSTOCK, TYVEK POUCHES/ROLLSTOCK, THERMOFORM TRAY

Award

:

1 ) SPECIAL AWARD FOR DESIGN EXCELLENCE BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2002

Competitor(s)

:

SCIENTILLENCE SDN BHD

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

Ownership of premises

:

LEASED/RENTED

Factory Size

:

ABOUT 22,000 SQ FT

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011


GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

160

160

160

165

140

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of medical and flexible packaging materials.

The Subject produces medical packaging materials especially the peel pouches for medical industries.

The Subject offers total integrated production including the printing, pounch making, slitting, custom tray thermoforming and rewinding.

Besides that the Subject is also supplying surgical medical gloves for hospitals and pharmaceuticals.

The Subject designs and manufactures pouches according to its customers' requirements.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-80266488

Match

:

N/A

Address Provided by Client

:

NO 8 JALAN TP5 TAMAN PERINDUSTRIAN UEP 47600 SUBHANG JAYA SELANGOR

Current Address

:

8 & 10, JALAN TP 5, TAMAN PERINDUSTRIAN UEP, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided is incomplete.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Decreased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

Return on Shareholder Funds

:

Acceptable

[

12.50%

]

Return on Net Assets

:

Acceptable

[

17.08%

]

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Unfavourable

[

83 Days

]

Debtor Ratio

:

Acceptable

[

63 Days

]

Creditors Ratio

:

Favourable

[

14 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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

[

2.86 Times

]

Current Ratio

:

Favourable

[

4.62 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

:

Nil

[

0.00 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject's interest cover was nil as it did not pay any interest during the year. 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 :

Due to the efficient control of its operating costs, the Subject was able to remain profitable despite lower turnover achieved during the year. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. 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 : STRONG

 

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

 

26600 : Manufacture of irradiation, electro medical and electrotherapeutic equipment

INDUSTRY :

MACHINERY

Malaysia is presently the leading manufacturer of automation machinery and equipment (M&E) in the ASEAN region with a total of 22 companies in production. The machinery and equipment industry has expanded and produce a diverse range of machinery which give importance to the overall industrial development of the country, due to its cross cutting linkages with all industrial sectors.

Growth of the domestic-oriented industries such as machinery and transportation equipment is expected to remain favourable in 2014, in line with resilient domestic consumption and robust private investment. However, the output of general-purpose machinery decreased 8.8% in the first seven moths of 2014 (January - July 2013: -1.8%) due to the decline in manufacture of air-conditioning machine (-17.9%) as well as lifting and handling equipment (-8.2%).

Besides, shipments of machinery, appliances and parts continued to expand rapidly by 12.5% in the first seven months of 2014 (January - July 2013: 1.4%) with stronger demand from Singapore, the US, China and Australia. Growth was mainly contributed by specialized machinery for specific industries (16.3%), particularly for civil engineering and manufacture of semiconductors as well as general industrial machinery and equipment (9.2%) such as heating and cooling equipment and parts as well as mechanical handling equipment and parts.

According to the World Bank's Doing Business 2014 Report, Malaysia improved to 15th from 25th position in the 2014 Foreign Direct Investment Confidence Index, with highlighted Malaysia's efforts in building its competitive position in electronics, automotive, and machinery manufacturing to move up the value chain into high technology and skill-intensive segments.

The Government has identified the M&E industry to be one of the key areas for growth and development. The growth will focus on the manufacture of high value-added and high technology M&E. For the further development of the M&E industry, six strategic thrusts have been set during the Third Industrial Master Plan (IMP3), 2006 - 2020 period:-

- Promoting Malaysia as a regional production, trading and distribution centre for M&E

- Rising the development and promotion of selected specialized and high technology M&E

- Strengthening the engineering support industries and support services

- Developing Malaysian Standards for machinery and equipment

- Developing sufficient highly skilled workforce

- Strengthening the institutional support for the further development of the industry

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1997, the Subject is a Private Limited company, focusing on manufacturing of medical and flexible packaging materials. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. The Subject is a large entity with strong capital position of MYR 14,682,432. 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 established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. The Subject is a fairly large and rapidly growing company with over 160 staff in its 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. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to the Subject.


Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. 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 58,224,581, 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.


We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days.


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.

 

In view of the above favourable condition, we recommend credit be proceeded to the Subject with favourable term.

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

BEMIS ASIA PACIFIC SDN. BHD.

 

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

91,610,330

94,016,771

96,281,084

98,662,727

87,025,908

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

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

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

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

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

Total Turnover

91,610,330

94,016,771

96,281,084

98,662,727

87,025,908

Costs of Goods Sold

(76,467,162)

(79,238,056)

(84,112,317)

(84,080,864)

(74,967,032)

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

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

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

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

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

Gross Profit

15,143,168

14,778,715

12,168,767

14,581,863

12,058,876

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

10,072,045

8,857,871

6,186,448

8,176,937

7,572,809

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

10,072,045

8,857,871

6,186,448

8,176,937

7,572,809

Taxation

(2,793,855)

(1,291,705)

(823,387)

(556,436)

(355,577)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

7,278,190

7,566,166

5,363,061

7,620,501

7,217,232

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

52,263,959

44,697,793

39,334,732

31,714,231

24,496,999

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

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

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

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

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

As restated

52,263,959

44,697,793

39,334,732

31,714,231

24,496,999

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

59,542,149

52,263,959

44,697,793

39,334,732

31,714,231

DIVIDENDS - Ordinary (paid & proposed)

(16,000,000)

-

-

-

-

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

43,542,149

52,263,959

44,697,793

39,334,732

31,714,231

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

-

-

-

-

178

Revolving loans

-

-

-

-

14,746

Others

-

-

-

-

33,500

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

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

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

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

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

-

-

-

-

48,424

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

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

 

BALANCE SHEET

 

 

BEMIS ASIA PACIFIC SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

16,108,212

18,340,540

18,888,635

18,505,592

19,777,286

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

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

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

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

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

TOTAL LONG TERM ASSETS

16,108,212

18,340,540

18,888,635

18,505,592

19,777,286

Stocks

20,796,560

19,666,743

20,576,383

22,088,521

20,189,235

Trade debtors

15,707,233

17,690,457

17,053,470

18,151,204

14,521,619

Other debtors, deposits & prepayments

1,072,897

959,467

687,206

756,414

735,824

Short term deposits

-

-

12,800,000

7,000,000

-

Deposits with financial institutions

13,718,530

19,425,374

-

-

-

Amount due from subsidiary companies

513,876

392,371

1,276,967

1,454,147

342,309

Cash & bank balances

2,921,127

3,945,976

4,109,197

2,475,555

2,886,446

Others

-

-

-

212,811

99,574

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

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

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

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

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

TOTAL CURRENT ASSETS

54,730,223

62,080,388

56,503,223

52,138,652

38,775,007

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

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

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

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

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

TOTAL ASSET

70,838,435

80,420,928

75,391,858

70,644,244

58,552,293

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

3,001,952

2,497,968

3,642,644

5,704,520

4,843,377

Other creditors & accruals

2,260,856

5,544,733

3,942,163

4,141,261

2,734,413

Amounts owing to holding company

4,856,127

3,790,309

3,815,740

3,092,044

1,192,420

Amounts owing to subsidiary companies

1,376,469

934,485

3,050,688

2,067,215

1,885,675

Provision for taxation

357,004

319,871

675,091

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

11,852,408

13,087,366

15,126,326

15,005,040

10,655,885

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

42,877,815

48,993,022

41,376,897

37,133,612

28,119,122

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

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

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

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

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

TOTAL NET ASSETS

58,986,027

67,333,562

60,265,532

55,639,204

47,896,408

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

14,682,432

14,682,432

14,682,432

14,682,432

14,682,432

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

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

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

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

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

TOTAL SHARE CAPITAL

14,682,432

14,682,432

14,682,432

14,682,432

14,682,432

Retained profit/(loss) carried forward

43,542,149

52,263,959

44,697,793

39,334,732

31,714,231

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

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

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

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

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

TOTAL RESERVES

43,542,149

52,263,959

44,697,793

39,334,732

31,714,231

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

58,224,581

66,946,391

59,380,225

54,017,164

46,396,663

Deferred taxation

288,990

178,456

885,307

1,622,040

1,499,745

Others

472,456

208,715

-

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

761,446

387,171

885,307

1,622,040

1,499,745

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

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

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

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

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

58,986,027

67,333,562

60,265,532

55,639,204

47,896,408

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

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

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

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

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

 

FINANCIAL RATIO

 

 

BEMIS ASIA PACIFIC SDN. BHD.

 

TYPES OF FUNDS

Cash

2,921,127

3,945,976

16,909,197

9,475,555

2,886,446

Net Liquid Funds

2,921,127

3,945,976

16,909,197

9,475,555

2,886,446

Net Liquid Assets

22,081,255

29,326,279

20,800,514

15,045,091

7,929,887

Net Current Assets/(Liabilities)

42,877,815

48,993,022

41,376,897

37,133,612

28,119,122

Net Tangible Assets

58,986,027

67,333,562

60,265,532

55,639,204

47,896,408

Net Monetary Assets

21,319,809

28,939,108

19,915,207

13,423,051

6,430,142

BALANCE SHEET ITEMS

Total Borrowings

0

0

0

0

14,746

Total Liabilities

12,613,854

13,474,537

16,011,633

16,627,080

12,155,630

Total Assets

70,838,435

80,420,928

75,391,858

70,644,244

58,552,293

Net Assets

58,986,027

67,333,562

60,265,532

55,639,204

47,896,408

Net Assets Backing

58,224,581

66,946,391

59,380,225

54,017,164

46,396,663

Shareholders' Funds

58,224,581

66,946,391

59,380,225

54,017,164

46,396,663

Total Share Capital

14,682,432

14,682,432

14,682,432

14,682,432

14,682,432

Total Reserves

43,542,149

52,263,959

44,697,793

39,334,732

31,714,231

LIQUIDITY (Times)

Cash Ratio

0.25

0.30

1.12

0.63

0.27

Liquid Ratio

2.86

3.24

2.38

2.00

1.74

Current Ratio

4.62

4.74

3.74

3.47

3.64

WORKING CAPITAL CONTROL (Days)

Stock Ratio

83

76

78

82

85

Debtors Ratio

63

69

65

67

61

Creditors Ratio

14

12

16

25

24

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

0.00

0.00

0.00

Liabilities Ratio

0.22

0.20

0.27

0.31

0.26

Times Interest Earned Ratio

0.00

0.00

0.00

0.00

157.39

Assets Backing Ratio

4.02

4.59

4.10

3.79

3.26

PERFORMANCE RATIO (%)

Operating Profit Margin

10.99

9.42

6.43

8.29

8.70

Net Profit Margin

7.94

8.05

5.57

7.72

8.29

Return On Net Assets

17.08

13.16

10.27

14.70

15.91

Return On Capital Employed

17.08

13.16

10.27

14.70

15.91

Return On Shareholders' Funds/Equity

12.50

11.30

9.03

14.11

15.56

Dividend Pay Out Ratio (Times)

2.20

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.14

UK Pound

1

Rs.94.79

Euro

1

Rs.70.38

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

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.