MIRA INFORM REPORT

 

 

Report No. :

301804

Report Date :

06.01.2015

 

IDENTIFICATION DETAILS

 

Name :

SM BIOMED SDN. BHD.

 

 

Registered Office :

Lot 90, Sungai Petani, Industrial Estate, 08000 Sungai Petani, Kedah

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

18.05.1991

 

 

Com. Reg. No.:

217323-M

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Subject is engaged in the manufacturing and trading of pharmaceutical raw materials, fine chemicals and industrial laboratory chemicals.

 

 

No. of Employee :

100 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

Litigation :

Clear

 

NOTES :

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

 

 

ECGC Country Risk Classification List – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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.

:

217323-M

COMPANY NAME

:

SM BIOMED SDN. BHD.

FORMER NAME

:

SM CHEMICALS SDN BHD (06/02/2004)

INCORPORATION DATE

:

18/05/1991

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LOT 90, SUNGAI PETANI, INDUSTRIAL ESTATE, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

BUSINESS ADDRESS

:

LOT 90, SUNGAI PETANI INDUSTRIAL ESTATE, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

TEL.NO.

:

04-4411801

FAX.NO.

:

04-4411341

WEB SITE

:

WWW.SMBIOMED.COM

CONTACT PERSON

:

SHARAT KUMAR KRISHNA NAIK ( MANAGING DIRECTOR )

INDUSTRY CODE

:

21001

PRINCIPAL ACTIVITY

:

MANUFACTURING AND TRADING OF PHARMACEUTICAL RAW MATERIALS, FINE CHEMICALS AND INDUSTRIAL LABORATORY CHEMICALS

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 30,400,000.00 DIVIDED INTO 
ORDINARY SHARES 28,949,688 CASH AND 1,450,312 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 91,563,356 [2013]

NET WORTH

:

MYR 43,918,680 [2013]

STAFF STRENGTH

:

100 [2015]

BANKER (S)

:

CIMB BANK BHD
EON BANK BHD
EXPORT-IMPORT BANK OF MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

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 and trading of pharmaceutical raw materials, fine chemicals and industrial laboratory chemicals.

 

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 50,000,000.00

MYR 30,400,000.00

17/02/2009

MYR 25,000,000.00

MYR 25,000,000.00

23/01/2009

MYR 25,000,000.00

MYR 24,000,000.00

31/01/2005

MYR 25,000,000.00

MYR 11,936,165.00

13/08/2004

MYR 25,000,000.00

MYR 11,691,470.00

15/12/1998

MYR 10,000,000.00

MYR 8,528,233.00

02/04/1996

MYR 5,000,000.00

MYR 3,500,000.00

05/03/1994

MYR 5,000,000.00

MYR 2,750,000.00

23/08/1992

MYR 5,000,000.00

MYR 2,500,000.00

21/06/1992

MYR 5,000,000.00

MYR 1,750,002.00

25/11/1991

MYR 5,000,000.00

MYR 750,002.00

18/05/1991

MYR 5,000,000.00

MYR 2.00

 

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

 


Name

Address

IC/PP/Loc No

Shareholding

(%)

SCOCROFT LTD

NO. 34, NORTH QUAY,, DOUGLAS,, ISLE OF MAN IMI 4LB

XLZ000008800

18,345,702.00

60.35

SAI GANESH PROPERTIES PVT. LTD

561, SRINIDHI WATER TANK ROAD, BSK III STAGE, KATRIGUPPE, BANGALORE 560 065, INDIA.

XLZ00213346

5,624,000.00

18.50

GEETHA MOHAN SHEETY

12, HATKESH CO-OPERATIVE HOUSING SOC ROAD, 5, JUHU, MUMBAI 400 056, INDIA.

G2629799

2,435,401.00

8.01

VAISHALI SHETTY

GEETHA, 12 HATKESH CO-OPERATIVE HOUSING SOC ROAD, 5, JUHU, MUMBAI 400 056, INDIA.

E0128700

1,047,440.00

3.45

NEUTRAL MASTER (M) SDN. BHD.

WISMA PRIMA, 17 JALAN SRI SEMANTAN SATU, DAMANSARA HEIGHTS, 3RD FLOOR, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

219018D

813,479.00

2.68

MR. DIONG SING PENG

49, JALAN TR8/2, TROPICANA GOLF & COUNTRY RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

691228-10-5569 A1448355

759,748.00

2.50

BAVAGUTHU RAGHURAM SHETTY +

BAVAGUTHU KAUP, UDUPI, KARNATAKA, INDIA, INDIA.

T526456

495,932.00

1.63

DR SHARAT KUMAR KRISHNA NAIK +

49, LORONG 5, TAMAN PETANI JAYA, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

H9530671

348,810.00

1.15

MR. TAMIL MANI A/L M.KATHIRESAN CHETTIAR

90C, JALAN PERGAM, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

550220-02-6189 4842124

230,596.00

0.76

MS. HASIAH BINTI ABDULLAH

65, JALAN SS 3/53, TAMAN SUBANG, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

490418-03-5214 2828171

92,974.00

0.31

ZULHISHAM BIN AHMAD

43, JALAN KEMANG, TAMAN MELODIES, 80250 JOHOR BAHRU, JOHOR, MALAYSIA.

5564309

86,156.00

0.28

SUNIL KUMAR SHETTY +

25, LORONG 23, TAMAN SUNGAI PETANI, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

9866037

52,381.00

0.17

RAMESHA SHEENA SUVARNA +

7, LORONG 11, TAMAN PETANI JAYA, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

A9007674

47,381.00

0.16

MR. KRISHNAMOORTHY A/L APPALANAIDU.

76, JALAN ZAABA, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

461129-08-5749 4014680

20,000.00

0.07

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

------

30,400,000.00

100.00

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

=====

 

+ Also Director

 

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



Local No

Country

Company

(%)

As At

218620M

MALAYSIA

SM PHARMACEUTICALS SDN. BHD.

100.00

26/11/2014

 

                                                                                                                                                

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. KRISHNAMOORTHY A/L APPALANAIDU

Address

:

76, JALAN ZAABA, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

4014680

New IC No

:

461129-08-5749

Date of Birth

:

29/11/1946

Nationality

:

MALAYSIAN

Date of Appointment

:

18/05/1991

Qualification

:

MBBS(SRI V'TESWARA)1974

 

DIRECTOR 2

 

Name Of Subject

:

VYNA SHETTY

Address

:

GEETHA HOUSE 12, HATKESH CHS 5TH RD, JUHU, MUMBAI 56, MS, INDIA, INDIA.

IC / PP No

:

E7852374

Nationality

:

INDIAN

Date of Appointment

:

09/08/2004

 

DIRECTOR 3

 

Name Of Subject

:

RAMESHA SHEENA SUVARNA

Address

:

7, LORONG 11, TAMAN PETANI JAYA, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

A9007674

Nationality

:

INDIAN

Date of Appointment

:

09/08/2004

 

DIRECTOR 4

 

Name Of Subject

:

SUNIL KUMAR SHETTY

Address

:

25, LORONG 23, TAMAN SUNGAI PETANI, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

9866037

Nationality

:

MALAYSIAN

Date of Appointment

:

08/08/1996

 

DIRECTOR 5

 

Name Of Subject

:

DR SHARAT KUMAR KRISHNA NAIK

Address

:

49, LORONG 5, TAMAN PETANI JAYA, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

H9530671

Nationality

:

GREENLANDER

Date of Appointment

:

12/11/1991

 

DIRECTOR 6

 

Name Of Subject

:

BAVAGUTHU RAGHURAM SHETTY

Address

:

BAVAGUTHU KAUP, UDUPI, KARNATAKA, INDIA, INDIA.

IC / PP No

:

T526456

Nationality

:

INDIAN

Date of Appointment

:

09/07/1995




MANAGEMENT

 

 

1)

Name of Subject

:

SHARAT KUMAR KRISHNA NAIK

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

RAMESHA SHEENA SUVARNA

Position

:

FINANCE MANAGER

 

3)

Name of Subject

:

LOQMAN

Position

:

HUMAN RESOURCE MANAGER

 

4)

Name of Subject

:

BIRADAR CHANDARASEGAR

Position

:

PRODUCTION MANAGER

 

AUDITOR

 

Auditor

:

GRANT THORNTON

Auditor' Address

:

51-8-A, MENARA BHL BANK, JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. P'NG CHIEW KEEM

IC / PP No

:

A2095490

New IC No

:

720225-07-5130

Address

:

BUKIT KECIL 2, TAMAN SRI NIBONG, 19TH TINGKAT, 11900 BAYAN LEPAS, PULAU PINANG, MALAYSIA.

 

2)

Company Secretary

:

MR. LEE PENG LOON

IC / PP No

:

4092111

New IC No

:

501110-07-5149

Address

:

53, JALAN DEVA PADA, 10400 GEORGETOWN, PULAU PINANG, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

2)

Name

:

EON BANK BHD

 

3)

Name

:

EXPORT-IMPORT BANK OF MALAYSIA BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

18/05/1992

DEBENTURE

BANK OF COMMERCE M BHD

MYR 4,700,000.00

Unsatisfied

2

05/03/1994

DEBENTURE

BANK OF COMMERCE M BERHAD

MYR 300,000.00

Unsatisfied

3

19/03/1995

FIRST LEGAL CHARGE

BANK OF COMMERCE M BERHAD

MYR 5,000,000.00

Unsatisfied

4

19/03/1995

SECOND LEGAL CHARGE

BANK OF COMMERCE M BERHAD

MYR 1,258,000.00

Unsatisfied

5

19/03/1995

SECOND LEGAL CHARGE

BANK OF COMMERCE M BERHAD

MYR 1,258,000.00

Unsatisfied

6

06/10/1996

N/A

BANK OF COMMERCE M BERHAD

MYR 2,032,000.00

Satisfied

7

06/10/1996

N/A

BANK OF COMMERCE M BERHAD

MYR 2,032,000.00

Satisfied

8

06/10/1996

N/A

BANK OF COMMERCE M BERHAD

MYR 2,032,000.00

Satisfied

9

28/05/1997

DEED OF ASSIGNMENT

EXPORTIMPORT BANK OF MALAYSIA BERHAD

MYR 2,600,000.00

Unsatisfied

10

18/09/1997

N/A

BANK OF COMMERCE M BERHAD

MYR 4,000,000.00

Unsatisfied

11

18/09/1997

N/A

BANK OF COMMERCE M BERHAD

MYR 4,000,000.00

Unsatisfied

12

27/01/1999

DEBENTURE

BANK OF COMMERCE M BERHAD

MYR 4,600,000.00

Unsatisfied

13

08/05/2008

N/A

EON BANK BHD

MYR 4,000,000.00

Satisfied

14

08/05/2008

N/A

EON BANK BHD

MYR 4,000,000.00

Satisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SUBJECT


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

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

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

CHINA,INDIA,JAPAN,UNITED STATES



The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

CLIENTELE

 

Local

:

YES

Percentage

:

2%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

98%

Export Market

:

ASIA

MIDDLE EAST

EUROPE

Credit Term

:

30 DAYS

Payment Mode

:

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

Type of Customer

:

MANUFACTURING INDUSTRIES,MINISTRIES

No of Customer

:

30

CUSTOMER(S)

:

1) HOVID BHD

 

OPERATIONS

 

Products manufactured

:

PHARMACEUTICAL RAW MATERIALS, FINE CHEMICALS, INDUSTRIAL AND LABORATORY CHEMICALS

Competitor(s)

:

AIN MEDICARE SDN BHD
ALPHA BIOLOGICS SDN BHD
KOTRA PHARMA (M) SDN BHD
SM PHARMACEUTICALS SDN BHD
Y.S.P. INDUSTRIES (M) SDN BHD

Ownership of premises

:

OWNED

Production Capacity

:

BASED ON ITS CUSTOMERS' ORDERS AND REQUIREMENTS

 

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

100

100

85

85

85

180

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing and trading of pharmaceutical raw materials, fine chemicals and industrial laboratory chemicals. 

The Subject's product portfolio is as follows:- 

* MACROLIDES - Erythromycin - COS Available, Erythromycin Propionate, Erythromycin Estolate - COS Filed , Azithromycin 
* Steroidal Products - Beclomethasone Dipropionate, Triamcinolone Acetonide, Clobetasol Propionate 
* Cardiovascular - Atenolol, Metoprolol Tartrate, Furosemide 
* Anti - Viral, Bacterial, Fungal - Acyclovir, Fluconazole, Stavudine

According to the Subject, it produces about 40 to 50 types of raw materials for the formulation of pharmaceuticals.

Besides that the Subject provides high quality customized products and services with shorter delivery time to its customers, particularly in Macroliderange of antibiotics. 

The Subject is also packs its products in steel or plastic drums and containers. 

We were informed that the Subject is equipped with the state-of-the-art technology coupled with highly automated production facilities, backed by an excellent team of well-trained technical staff ensures the smooth production process and the consistently high quality of the finished products. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

044411801

Current Telephone Number

:

04-4411801

Match

:

YES

Address Provided by Client

:

LOT 90, SUNGAI PETANI INDUSTRIAL ESTATE,08000,SUNGAI PETANI,KEDAH.

Current Address

:

LOT 90, SUNGAI PETANI INDUSTRIAL ESTATE, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


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


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2013

]

Return on Shareholder Funds

:

Unfavourable

[

(5.81%)

]

Return on Net Assets

:

Unfavourable

[

(1.66%)

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject incurred losses during the year due to the inefficient control of its operating costs. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

51 Days

]

Debtor Ratio

:

Acceptable

[

59 Days

]

Creditors Ratio

:

Favourable

[

38 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. 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

:

Unfavourable

[

0.54 Times

]

Current Ratio

:

Unfavourable

[

1.00 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

[

(0.42 Times)

]

Gearing Ratio

:

Favourable

[

0.35 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 was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

Overall Assessment :

Although the Subject's turnover increased its profits however showed a reverse trend. The losses could be due to the management's failure to maintain its competitiveness in the market. 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 as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

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

21001 : Manufacture of medicinal active substances to be used for their pharmacological properties in the manufacture of medicaments 

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 1991, the Subject is a Private Limited company, focusing on manufacturing and trading of pharmaceutical raw materials, fine chemicals and industrial laboratory chemicals. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. The Subject is a large entity with strong capital position of MYR 30,400,000. We are confident with the Subject's business and its future growth prospect. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. 

Over the years, the Subject has 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. Being a moderate size company, the Subject has a total workforce of 100 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

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. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 43,918,680, the Subject should be able to maintain its business in the near terms. 

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth . The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources. 

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

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

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

 



PROFIT AND LOSS ACCOUNT

 

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

SM BIOMED SDN. BHD.

 

Financial Year End

2013-12-31

2012-06-30

2011-06-30

2010-06-30

2009-06-30

Months

18

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

91,563,356

70,820,374

65,611,076

57,313,323

65,749,214

Other Income

203,934

245,619

172,047

38,342

472,322

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

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

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

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

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

Total Turnover

91,767,290

71,065,993

65,783,123

57,351,665

66,221,536

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

(2,586,674)

1,230,151

588,246

315,961

2,194,211

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

(2,586,674)

1,230,151

588,246

315,961

2,194,211

Taxation

35,000

(494,000)

(433,000)

(140,119)

(452,000)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(2,551,674)

736,151

155,246

175,842

1,742,211

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

16,070,354

15,334,203

15,178,957

15,003,115

13,260,904

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

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

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

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

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

As restated

16,070,354

15,334,203

15,178,957

15,003,115

13,260,904

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

13,518,680

16,070,354

15,334,203

15,178,957

15,003,115

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

13,518,680

16,070,354

15,334,203

15,178,957

15,003,115

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

391,711

122,568

117,195

-

-

Bankers' acceptance

162,234

185,766

397,480

-

-

Hire purchase

66,956

30,680

49,654

-

-

Term loan / Borrowing

162,565

291,821

291,330

-

-

Trust receipts

812,808

635,262

333,886

-

-

Others

231,608

230,064

-

1,350,094

1,514,426

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

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

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

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

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

1,827,882

1,496,161

1,189,545

1,350,094

1,514,426

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

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

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

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

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

 

 

 

 

 

 

 

BALANCE SHEET

 

SM BIOMED SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

39,485,941

33,477,091

36,030,713

33,642,462

33,326,232

INTANGIBLE ASSETS

Deferred/Expenditure carried forward

3,658,887

6,429,921

8,960,587

11,301,667

13,619,511

Goodwill on consolidation

2,441,972

2,686,170

2,930,368

3,174,566

3,418,764

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

6,100,859

9,116,091

11,890,955

14,476,233

17,038,275

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

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

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

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

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

TOTAL LONG TERM ASSETS

45,586,800

42,593,182

47,921,668

48,118,695

50,364,507

Stocks

12,880,734

8,512,334

7,093,326

7,354,836

6,253,305

Trade debtors

14,847,167

20,066,146

17,377,991

13,915,307

13,285,174

Other debtors, deposits & prepayments

239,838

608,519

555,202

196,792

539,183

Short term deposits

-

-

-

-

30,000

Cash & bank balances

116,965

1,837,563

306,171

377,709

1,312,597

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

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

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

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

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

TOTAL CURRENT ASSETS

28,084,704

31,024,562

25,332,690

21,844,644

21,420,259

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

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

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

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

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

TOTAL ASSET

73,671,504

73,617,744

73,254,358

69,963,339

71,784,766

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

9,590,592

5,404,128

4,164,821

4,280,445

6,216,406

Other creditors & accruals

2,927,918

1,681,876

8,027,498

5,070,812

2,556,940

Hire purchase & lease creditors

291,748

234,098

308,257

288,698

483,855

Bank overdraft

3,800,765

2,979,977

1,476,710

1,291,353

1,685,277

Short term borrowings/Term loans

383,835

1,161,984

1,058,976

1,058,511

1,682,073

Other borrowings

10,776,866

9,749,000

7,105,840

782,943

2,454,905

Bill & acceptances payable

-

2,613,000

6,556,000

10,380,000

5,759,000

Amounts owing to holding company

13,266

13,266

13,266

13,266

13,266

Amounts owing to director

247,216

122,196

151,235

164,669

221,118

Provision for taxation

2,969

2,969

2,969

2,969

8,996

Other liabilities

-

-

-

2,394,421

4,420,872

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

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

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

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

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

TOTAL CURRENT LIABILITIES

28,035,175

23,962,494

28,865,572

25,728,087

25,502,708

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

49,529

7,062,068

(3,532,882)

(3,883,443)

(4,082,449)

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

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

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

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

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

TOTAL NET ASSETS

45,636,329

49,655,250

44,388,786

44,235,252

46,282,058

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

30,400,000

30,400,000

25,000,000

25,000,000

25,000,000

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

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

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

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

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

TOTAL SHARE CAPITAL

30,400,000

30,400,000

25,000,000

25,000,000

25,000,000

Retained profit/(loss) carried forward

13,518,680

16,070,354

15,334,203

15,178,957

15,003,115

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

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

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

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

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

TOTAL RESERVES

13,518,680

16,070,354

15,334,203

15,178,957

15,003,115

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

43,918,680

46,470,354

40,334,203

40,178,957

40,003,115

Long term loans

-

1,466,560

2,713,313

2,943,201

5,237,003

Hire purchase creditors

233,649

199,336

316,270

521,094

589,940

Deferred taxation

1,484,000

1,519,000

1,025,000

592,000

452,000

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,717,649

3,184,896

4,054,583

4,056,295

6,278,943

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

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

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

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

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

45,636,329

49,655,250

44,388,786

44,235,252

46,282,058

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

SM BIOMED SDN. BHD.

 

TYPES OF FUNDS

Cash

116,965

1,837,563

306,171

377,709

1,342,597

Net Liquid Funds

(3,683,800)

(3,755,414)

(7,726,539)

(11,293,644)

(6,101,680)

Net Liquid Assets

(12,831,205)

(1,450,266)

(10,626,208)

(11,238,279)

(10,335,754)

Net Current Assets/(Liabilities)

49,529

7,062,068

(3,532,882)

(3,883,443)

(4,082,449)

Net Tangible Assets

39,535,470

40,539,159

32,497,831

29,759,019

29,243,783

Net Monetary Assets

(14,548,854)

(4,635,162)

(14,680,791)

(15,294,574)

(16,614,697)

BALANCE SHEET ITEMS

Total Borrowings

15,486,863

18,403,955

19,535,366

17,265,800

17,892,053

Total Liabilities

29,752,824

27,147,390

32,920,155

29,784,382

31,781,651

Total Assets

73,671,504

73,617,744

73,254,358

69,963,339

71,784,766

Net Assets

45,636,329

49,655,250

44,388,786

44,235,252

46,282,058

Net Assets Backing

43,918,680

46,470,354

40,334,203

40,178,957

40,003,115

Shareholders' Funds

43,918,680

46,470,354

40,334,203

40,178,957

40,003,115

Total Share Capital

30,400,000

30,400,000

25,000,000

25,000,000

25,000,000

Total Reserves

13,518,680

16,070,354

15,334,203

15,178,957

15,003,115

LIQUIDITY (Times)

Cash Ratio

0.00

0.08

0.01

0.01

0.05

Liquid Ratio

0.54

0.94

0.63

0.56

0.59

Current Ratio

1.00

1.29

0.88

0.85

0.84

WORKING CAPITAL CONTROL (Days)

Stock Ratio

51

44

39

47

35

Debtors Ratio

59

103

97

89

74

Creditors Ratio

38

28

23

27

35

SOLVENCY RATIOS (Times)

Gearing Ratio

0.35

0.40

0.48

0.43

0.45

Liabilities Ratio

0.68

0.58

0.82

0.74

0.79

Times Interest Earned Ratio

(0.42)

1.82

1.49

1.23

2.45

Assets Backing Ratio

1.30

1.33

1.30

1.19

1.17

PERFORMANCE RATIO (%)

Operating Profit Margin

(2.83)

1.74

0.90

0.55

3.34

Net Profit Margin

(2.79)

1.04

0.24

0.31

2.65

Return On Net Assets

(1.66)

5.49

4.01

3.77

8.01

Return On Capital Employed

(1.36)

4.40

3.06

2.76

5.66

Return On Shareholders' Funds/Equity

(5.81)

1.58

0.38

0.44

4.36

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





 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.39

UK Pound

1

Rs.96.85

Euro

1

Rs.75.67

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 


 

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.