MIRA INFORM REPORT

 

 

Report No. :

308026

Report Date :

13.02.2015

 

IDENTIFICATION DETAILS

 

Name :

WELLEY TIMBER INDUSTRIES SDN. BHD.

 

 

Registered Office :

11a, Jalan Sungai Bakap, Pusat Perniagaan Seri Aman, 1st Floor, 14200 Sungai Bakap, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

10.03.2006

 

 

Com. Reg. No.:

726389-M

 

 

Legal Form :

Exempt Private (Limited By Share)

 

 

Line of Business :

Manufacturer of Plywood.

 

 

No. of Employee :

510 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 – 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.

:

726389-M

COMPANY NAME

:

WELLEY TIMBER INDUSTRIES SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

10/03/2006

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

11A, JALAN SUNGAI BAKAP, PUSAT PERNIAGAAN SERI AMAN, 1ST FLOOR, 14200 SUNGAI BAKAP, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

PLOT A26 LORONG BAKAU KAWASAN PERUSAHAAN PERABUT SUNGAI BAONG, SEBERANG PRAI SELATAN, 14200 SUNGAI BAKAP, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-5833220

FAX.NO.

:

04-5833223

WEB SITE

:

WWW.WELLEYTIMBER.COM

CONTACT PERSON

:

TANG BOON TONG ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

16211

PRINCIPAL ACTIVITY

:

MANUFACTURER OF PLYWOOD

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 8,000,000.00 DIVIDED INTO
ORDINARY SHARES 8,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

N/A

NET WORTH

:

N/A

 

 

 

STAFF STRENGTH

:

510 [2015]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

MYR 2,112,000 (USD 704,000)

 

 

 

HISTORY / BACKGROUND

 


The Subject is an exempt private company which is allowed to have a minimum of two and a maximum of twenty shareholders and all the shareholders must be individuals. An exempt company is a type of private limited company. 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, suing or be sued by other companies. The Subject is governed by the Companies Act, 1965 and must file in its annual return. The Subject need not file in its financial statements but it has to file in a document duly signed by its director in charge of its finance, the secretary and its auditor stating that the Subject is able to meet all its obligations as and when they fall due. Although the Subject is not required to file in its financial statements, it also has to prepare its financial account which must be presented at the Annual General Meeting.

 

The Subject is principally engaged in the (as a / as an) manufacturer of plywood.

 

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


 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 10,000,000.00

MYR 8,000,000.00

 


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


Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. TANG BOON TONG +

1, JALAN REMIA 7/1, TAMAN SERI REMIA, MACHANG BUBOK, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

710503-07-5791

1,440,000.00

18.00

MR. BEH HOCK SENG +

39, JALAN IMPIAN 1, TAMAN IMPIAN, ALMA, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

760719-07-5321

1,440,000.00

18.00

MR. TAN CHIANG HWA

29, LORONG IMPIAN 6, TAMAN IMPIAN, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

681102-07-5465 A1177596

1,040,000.00

13.00

MR. KOH WEI LEONG

31, JALAN IMPIAN 1, TAMAN IMPIAN, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

731024-08-6339 A2636263

880,000.00

11.00

MR. CHAN KAR LEONG +

35, JALAN IMPIAN 1, TAMAN IMPIAN, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

771020-08-5351 A3833565

880,000.00

11.00

MR. TAN CHIANG HAK

37, JALAN IMPIAN 1, TAMAN IMPIAN , ALMA, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

711119-07-5335 A2052403

880,000.00

11.00

MR. CHAN CHIANG FAH

2370, KG SETOL, PINANG TUNGGAL, 13210 KEPALA BATAS, PULAU PINANG, MALAYSIA.

590313-01-5717 5563525

800,000.00

10.00

MR. TANG BOON KUENG

4, LORONG DAMAI 2, TAMAN PERMATA, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

670906-07-5141 A0845249

640,000.00

8.00

 

 

 

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

------

 

 

 

8,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. CHAN KAR LEONG

Address

:

35, JALAN IMPIAN 1, TAMAN IMPIAN, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

IC / PP No

:

A3833565

New IC No

:

771020-08-5351

Date of Birth

:

20/10/1977

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

10/03/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. TANG BOON TONG

Address

:

1, JALAN REMIA 7/1, TAMAN SERI REMIA, MACHANG BUBOK, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

710503-07-5791

Date of Birth

:

03/05/1971

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

10/03/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. BEH HOCK SENG

Address

:

39, JALAN IMPIAN 1, TAMAN IMPIAN, ALMA, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

760719-07-5321

Date of Birth

:

19/07/1976

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

10/05/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

1)

 

Name of Subject

:

 

TANG BOON TONG

 

Position

:

DIRECTOR

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

PETER OOI & CO.

Auditor' Address

:

12A, JALAN MEDAN IPOH 1B, MEDAN IPOH BESTARI, 31400 IPOH, PERAK, MALAYSIA.

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. KHONG SIONG WEI

 

IC / PP No

:

A3764386

 

New IC No

:

770813-14-5049

 

Address

:

32, LINGKARAN MERU VALLEY 1A, TAMAN PERANGINAN LEMBAH MERU, 30020 IPOH, PERAK, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. CHUAH LAY NAH

 

IC / PP No

:

A3200215

 

New IC No

:

750420-07-5600

 

Address

:

20, LORONG GAMELAN 2, TAMAN GAMELAN, 14200 SUNGAI BAKAP, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

21/09/2006

N/A

CIMB BANK BERHAD

-

Satisfied

2

31/07/2007

N/A

CIMB BANK BERHAD

-

Satisfied

3

31/07/2007

N/A

CIMB BANK BERHAD

-

Satisfied

4

31/07/2007

N/A

CIMB BANK BERHAD

-

Satisfied

5

31/07/2007

N/A

CIMB BANK BERHAD

-

Satisfied

6

31/07/2007

N/A

CIMB BANK BERHAD

-

Satisfied

7

19/08/2010

N/A

CIMB BANK BERHAD

-

Satisfied

8

13/09/2010

N/A

MALAYAN BANKING BHD

-

Unsatisfied

9

27/09/2011

N/A

MALAYAN BANKING BHD

-

Unsatisfied

10

01/02/2012

N/A

AMISLAMIC BANK BERHAD

-

Unsatisfied

11

01/02/2012

N/A

AMISLAMIC BANK BERHAD

-

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

 

 

 

 

 

CLIENTELE

 

Local

:

N/A

 

 

 

Overseas

:

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Subject refused to disclose its suppliers.

 

 

OPERATIONS

 

Products manufactured

:

PLYWOOD

 

 

 

 

Total Number of Employees:

YEAR

2015

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

510

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturer of plywood.

The Subject is a growing manufacturer of hardwood plywood.

The Subject is able to produce at least 60,000 m2 of high quality hardwood plywood annually on top of 3million m2 of flooring boards.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

04-5833220

Match

:

N/A

 

 

 

Address Provided by Client

:

PLOT A26 LORONG BAKAU KAWASAN PERUSAHAAN PERABUT SUNGAI BAONG 14200 SUNGAI BAKAP, SEBERANG PRAI SELATAN PENANG, MALAYSIA

Current Address

:

PLOT A26 LORONG BAKAU KAWASAN PERUSAHAAN PERABUT SUNGAI BAONG, SEBERANG PRAI SELATAN, 14200 SUNGAI BAKAP, PULAU PINANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

NO

 

Other Investigations


On 13th February 2015 we contacted one of the staff from the Subject and he provided some information.



FINANCIAL ANALYSIS

 

 

The Subject is a private exempt company which does not need to file in its accounts with the Registrar of Companies for the information of the public. Therefore, we are not able to comment on the Subject's financial performance.

 

 

 

 

 

 

 

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

30.3

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

16211 : Manufacture of veneer sheets and plywood

 

 

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 2006, the Subject is an Exempt Private company, focusing on manufacturer of plywood. 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. A paid up capital of MYR 8,000,000 allows the Subject to expand its business more comfortably. However, the Subject does not have strong shareholders’ backing. Without a strong shareholders' backing, the opportunity of the Subject to expand its business is limited.

Being a large entity, the Subject has a steady workforce of 510 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.

As the Subject is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health.

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 shows an upward trend and this trend is very likely to sustain in the near terms.

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

 

 

 

 

PROIT AND LOSS ACCOUNT

 

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

 

Financial Year End

2010-12-31

2009-12-31

2008-12-31

2007-12-31

2006-12-31

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

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

33,253,757

29,769,123

19,027,663

6,519,208

2,149,196

 

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

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

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

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

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

Total Turnover

33,253,757

29,769,123

19,027,663

6,519,208

2,149,196

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

2,199,181

1,976,721

(4,618,913)

(1,883,873)

(774,919)

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

2,199,181

1,976,721

(4,618,913)

(1,883,873)

(774,919)

Taxation

431,000

(1,800)

-

-

-

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

2,630,181

1,974,921

(4,618,913)

(1,883,873)

(774,919)

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

2,630,181

1,974,921

(4,618,913)

(1,883,873)

(774,919)

 

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

2,630,181

1,974,921

(4,618,913)

(1,883,873)

(774,919)

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

(5,302,784)

(7,277,705)

(2,658,792)

(774,919)

-

 

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

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

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

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

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

As restated

(5,302,784)

(7,277,705)

(2,658,792)

(774,919)

-

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(2,672,603)

(5,302,784)

(7,277,705)

(2,658,792)

(774,919)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(2,672,603)

(5,302,784)

(7,277,705)

(2,658,792)

(774,919)

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

18,923,752

17,470,972

17,698,621

14,643,108

5,195,956

 

 

 

 

 

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

-

0

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

18,923,752

17,470,972

17,698,621

14,643,108

5,195,956

 

 

 

 

 

 

TOTAL CURRENT ASSETS

10,284,378

4,619,894

5,278,202

3,473,633

2,238,474

 

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

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

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

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

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

TOTAL ASSET

29,208,130

22,090,866

22,976,823

18,116,741

7,434,430

 

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

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

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

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

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

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

9,793,550

4,349,721

23,714,669

3,369,010

6,015,605

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

490,828

270,173

(18,436,467)

104,623

(3,777,131)

 

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

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

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

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

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

TOTAL NET ASSETS

19,414,580

17,741,145

(737,846)

14,747,731

1,418,825

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

8,000,000

8,000,000

1,500,000

1,500,000

500,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

8,000,000

8,000,000

1,500,000

1,500,000

500,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

(2,672,603)

(5,302,784)

(7,277,705)

(2,658,792)

(774,919)

 

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

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

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

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

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

TOTAL RESERVES

(2,672,603)

(5,302,784)

(7,277,705)

(2,658,792)

(774,919)

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

5,327,397

2,697,216

(5,777,705)

(1,158,792)

(274,919)

 

 

 

 

 

 

LONG TERM LIABILITIES

-

-

-

15,906,523

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

14,087,183

15,043,929

5,039,859

15,906,523

1,693,744

 

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

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

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

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

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

 

19,414,580

17,741,145

(737,846)

14,747,731

1,418,825

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

 

 

 

Net Liquid Assets

490,828

270,173

(18,436,467)

104,623

(3,777,131)

Net Current Assets/(Liabilities)

490,828

270,173

(18,436,467)

104,623

(3,777,131)

Net Tangible Assets

19,414,580

17,741,145

(737,846)

14,747,731

1,418,825

Net Monetary Assets

(13,596,355)

(14,773,756)

(23,476,326)

(15,801,900)

(5,470,875)

 

 

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

 

 

Total Liabilities

23,880,733

19,393,650

28,754,528

19,275,533

7,709,349

Total Assets

29,208,130

22,090,866

22,976,823

18,116,741

7,434,430

Net Assets

19,414,580

17,741,145

(737,846)

14,747,731

1,418,825

Net Assets Backing

5,327,397

2,697,216

(5,777,705)

(1,158,792)

(274,919)

Shareholders' Funds

5,327,397

2,697,216

(5,777,705)

(1,158,792)

(274,919)

Total Share Capital

8,000,000

8,000,000

1,500,000

1,500,000

500,000

Total Reserves

(2,672,603)

(5,302,784)

(7,277,705)

(2,658,792)

(774,919)

 

 

 

 

 

 

LIQUIDITY (Times)

 

 

 

 

 

Current Ratio

1.05

1.06

0.22

1.03

0.37

 

 

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

 

 

Liabilities Ratio

4.48

7.19

(4.98)

(16.63)

(28.04)

Assets Backing Ratio

2.43

2.22

(0.49)

9.83

2.84

 

 

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

6.61

6.64

(24.27)

(28.90)

(36.06)

Net Profit Margin

7.91

6.63

(24.27)

(28.90)

(36.06)

Return On Net Assets

11.33

11.14

626.00

(12.77)

(54.62)

Return On Capital Employed

11.33

11.14

626.00

(12.77)

(54.62)

Return On Shareholders' Funds/Equity

49.37

73.22

79.94

162.57

281.87

 

 

 

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.43

UK Pound

1

Rs.95.02

Euro

1

Rs.70.63

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 


 

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.