MIRA INFORM REPORT

 

 

Report No. :

305737

Report Date :

31.01.2015

 

IDENTIFICATION DETAILS

 

Name :

DNP IMAGINGCOMM ASIA SDN. BHD.

 

 

Registered Office :

Plo 676, Jalan Nikel, Kawasan Perindustrian Pasir Gudang, Pasir Gudang, 81707 Pasir Gudang, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

29.02.2012

 

 

Com. Reg. No.:

980094-U

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Subject is engaged in the manufacturing thermal transfer ribbon.

 

 

No. of Employee :

130 [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.

:

980094-U

COMPANY NAME

:

DNP IMAGINGCOMM ASIA SDN. BHD.

FORMER NAME

:

DNP IMS MALAYSIA SDN. BHD. (11/06/2014)

INCORPORATION DATE

:

29/02/2012

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

PLO 676, JALAN NIKEL, KAWASAN PERINDUSTRIAN PASIR GUDANG, PASIR GUDANG, 81707 PASIR GUDANG, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

676, JALAN NIKEL 4, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2578400

FAX.NO.

:

07-2578590

WEB SITE

:

WWW.DNPIMAGINGCOMM.ASIA

CONTACT PERSON

:

KOICHI SHIRAI ( MANAGING DIRECTOR )

INDUSTRY CODE

:

329

PRINCIPAL ACTIVITY

:

MANUFACTURING THERMAL TRANSFER RIBBON

AUTHORISED CAPITAL

:

MYR 200,000,000.00 DIVIDED INTO 
ORDINARY SHARE 200,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 190,000,000.00 DIVIDED INTO 
ORDINARY SHARES 190,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 3,323,770 [2013]

NET WORTH

:

MYR 155,738,410 [2013]

STAFF STRENGTH

:

130 [2015]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

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 thermal transfer ribbon.

 

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

 

The immediate holding company of the Subject is DAI NIPPON PRINTING CO. LTD, a company incorporated in JAPAN.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

21/05/2014

MYR 200,000,000.00

MYR 190,000,000.00

11/10/2013

MYR 200,000,000.00

MYR 159,000,000.00

01/04/2013

MYR 200,000,000.00

MYR 119,000,000.00

15/02/2013

MYR 200,000,000.00

MYR 40,000,000.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

DAI NIPPON PRINTING CO. LTD

1-1-1, ICHIGAYA-KAGACHO, SHINJUKU-KU, TOKYO, 162-8001 JAPAN, JAPAN.

XLZ00218962

190,000,000.00

100.00

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

------

190,000,000.00

100.00

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

=====

 

+ Also Director

 





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

KOZO ODAMURA

Address

:

BLOCK F-7-E3, THE STRAITS VIEW CONDOMINIUM, 8, JALAN PERMAS SELATAN, BANDAR BARU PERMAS JAYA, 81750 MASAI, JOHOR, MALAYSIA.

IC / PP No

:

TZ0433398

Nationality

:

JAPANESE

Date of Appointment

:

21/01/2014

 

DIRECTOR 2

 

Name Of Subject

:

MASATO KOIKE

Address

:

3-4-18, OZENJINISHI, ASAO-KU, KAWASAKI-SHI, KANAGAWA 215-0017 JAPAN, JAPAN.

IC / PP No

:

TZ0404276

Nationality

:

JAPANESE

Date of Appointment

:

01/08/2012

 

DIRECTOR 3

 

Name Of Subject

:

MINEO YAMAUCHI

Address

:

1-28-2-102 HANAKOGANEI MINAMICHO, KODAIRASHI, TOKYO, 187-0003 JAPAN, JAPAN.

IC / PP No

:

TK0366689

Nationality

:

JAPANESE

Date of Appointment

:

05/03/2014

 

DIRECTOR 4

 

Name Of Subject

:

MR. KOICHI SHIRAI

Address

:

BLOCK A-13-W3, STRAITS VIEW CONDO, 8, JALAN PERMAS SELATAN, BANDAR BARU PERMAS JAYA, 81750 MASAI, JOHOR, MALAYSIA.

IC / PP No

:

TH2196633

Nationality

:

JAPANESE

Date of Appointment

:

01/04/2013

 

DIRECTOR 5

 

Name Of Subject

:

HIROYUKI ARAMATA

Address

:

15-8-906, TAKASU 3 CHO-ME, MIHAMAKU, CHIBA-SHI, CHIBA, 261-004, JAPAN, JAPAN.

IC / PP No

:

TH8604710

Date of Appointment

:

24/06/2014

 

MANAGEMENT

 

 

1)

Name of Subject

:

KOICHI SHIRAI

Position

:

MANAGING DIRECTOR

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

KPMG TOWER, 8 FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHONG KANG YIN

IC / PP No

:

5472950

New IC No

:

580414-08-5256

Address

:

05-03, BLK 6 DOCHESTER COURT, JALAN MASAI BARU, APARTMENT PRIMA REGENCY, PLENTONG, 81750 MASAI, JOHOR, MALAYSIA.

 

2)

Company Secretary

:

MR. KOK POH FUI

IC / PP No

:

A1553709

New IC No

:

700401-01-5631

Address

:

26, JALAN KASA 8, TAMAN SENTOSA, 80150 JOHOR BAHRU, JOHOR, 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

:

YES

Overseas

:

YES

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA

MIDDLE EAST

EUROPE

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Products manufactured

:

THERMAL TRANSFER RIBBON

 

Total Number of Employees:

YEAR

2015

2014

GROUP

N/A

N/A

COMPANY

130

130

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing thermal transfer ribbon. 

The Subject is engaged in the manufacturing of imaging products.

The Subject however refused to disclose further information on its operation. 


RECENT DEVELOPMENT


April 17, 2013 

Dai Nippon Printing Co Ltd (DNP) of Japan will invest five billion yen (RM170.5mil) to establish a new plant in Pasir Gudang, Johor, for the production of dye sublimation thermal transfer media used for photo printing.

The new plant is scheduled for completion in September and DNP IMS Malaysia Sdn Bhd was established as the operating subsidiary for the new manufacturing plant.By 2016, the new company aims for sales of 4 billion yen (RM136.40mil). DNP operates its photo print business on a global scale using facilities in Japan, Europe and the United States.

“The demand for dry digital photo prints is expanding worldwide in line with the growth of digital cameras and smart phones. The emerging nations of South-East Asia are seeing increased demand for digital photo print, with ID photo needs also experiencing a marked increase.

“In order to capitalise on these developments, DNP has decided to build a new dye sublimation media manufacturing plant in Malaysia, and will actively expand operations in South-East Asia,” it said in statement posted on its website.

In June 2012, DNP established DNP Asia Pacific Pte Ltd in Singapore to oversee the Asian region, and this new company has pushed ahead with research activities, including market research targeting business expansion in the region. The new dye sublimation media supplies plant has been established as part of these activities, and will work to expand the photo print business. Dye sublimation thermal transfer media is used when printing digital images in a thermal transfer print technology.

The media set is composed of an ink ribbon and a dedicated receiver paper. The dye from the ink ribbon is transferred to the receiver paper to match the intensity of the image making it possible to create high-quality photos prints, with smooth gradations, similar to silver halide photography.

Dye sublimation prints are highly durable, economical and can be quickly produced. Expanded use is foreseen mainly in the areas of commercial photo printing such as photo print kiosk terminals, dry minilabs and ID photos.

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

07-2578400

Match

:

N/A

Address Provided by Client

:

676, JALAN NIKEL 4, KAWASAN PERINDUSTRIAN PASIR GUDANG,81700,PASIR GUDANG,JOHOR.

Current Address

:

676, JALAN NIKEL 4, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


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

The Subject only commenced its business operation in 2013.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

(0.00%)

]

Profit/(Loss) Before Tax

:

Increased

[

(912.00%)

]

Return on Shareholder Funds

:

Unfavourable

[

(1.90%)

]

Return on Net Assets

:

Unfavourable

[

(1.90%)

]

The higher turnover could be attributed to the favourable market condition.Higher losses before tax during the year could be due to the higher operating costs incurred. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

Liquidity

Current Ratio

:

Favourable

[

2.18 Times

]

The Subject was in good liquidity position with its current  liabilities  well covered by its current assets. With its net current assets, the Subject should be able to repay its short term obligations.

Solvency

Liability Ratio

:

Favourable

[

0.29 Times

]

A low liabilities ratio has minimised the Subject's financial risk.

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. 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 has a low liabilities ratio. It's liabilities were low and was not vulnerable to the financial risk.

Overall financial condition of the Subject : FAIR

 

 

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

329 : Other manufacturing n.e.c.

INDUSTRY :

MANUFACTURING

The manufacturing sector is expected to grow by 5.5% in 2015. It will be bolstered by strong domestic and export-oriented industries in line with growing investment activities and favorable external demand. Moreover, in 2014, the manufacturing sectors have spearheading growth. The manufacturing sector is estimated to grow at a faster pace in 2014 on higher exports of electronics and electrical (E&E) products as external demand improves.

The manufacturing sector expanded strongly during the first half of 2014, the highest growth in three years, spurred by higher global semiconductor sales. Value-added of the manufacturing sector expanded 7.1% during the first half of 2014. Production of the sector rose 6.6% in the first seven months of 2014 supported by resilient domestic demand and recovery in the external sector during the first seven months of the years. The sales value of manufactured products rebounded by 7.7% in the first seven months of 2014. The strong performance of the sector was on account of higher output at 9.4% from the domestic-oriented industries, particularly transport equipment, food and beverage.

The manufacturing sector continued to attract domestic and foreign investment with investment approved by Malaysian Investment Development Authority (MIDA) totaling RM47.4 billion during the first six months of 2014, mainly from Japan, China and Germany. Meanwhile, the capacity utilization rate remained steady at 80.4% during the second quarter of 2014 while average wage per employee and productivity improved to RM2,772 per month and 5.9%, respectively during the first seven months of 2014. Boosted by favorable domestic economic activity and recovery in the external sector, the manufacturing sector is expected to record a better performance with growth of 6.4% in 2014.

In the meantime, production of wood products rebounded by 5.1% largely supported by higher output in the saw-milling and planning of wood segment at 25.9% during the first seven months of 2014. The positive performance was attributed to vibrant residential and commercial construction activities which contributed to increased use of timber frame and glued laminated timber for cost savings compared to the use of concrete and steel. Increased demand from major export destination such as the US, Japan and Australia for Malaysian made furniture contributed to the higher output, particularly wooden and cane furniture which rebounded by 2.2%.

Production of rubber products contracted 0.3% in the first seven months of 2014 on account of slower demand for rubber gloves and rubber tyres. The decline in rubber tyres for vehicles was due to the weaker external demand from the automotive industry, particularly from China. Output of other rubber products contracted 3.8% following the product shift from rubber-based to plastics, silicones and metal alloys in the manufacture of medical devices.

Besides, exports of manufactured products are expected to grow 6.1% in 2014 boosted by the growing demand from advanced economies. However, during the first seven months of 2014, manufactured exports surged 11.4%. The robust growth was buoyed by strengthening demand in the US and EU, reflecting significant exposure of Malaysian exports to the economic performance in the advance economies. The strength in export was broad-based with robust growth in both E&E and non- E&E subsectors.

Under budget 2015, the Government will provide incentive in the form of capital allowance on automation expenditure to encourage automation in the manufacturing sector, which may help in the manufacturing sector.

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2012, the Subject is a Private Limited company, focusing on manufacturing thermal transfer ribbon. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. The Subject is a large entity with strong capital position of MYR 190,000,000. 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 penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 130 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. 

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. 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. A low liabilities ratio has minimised the Subject's financial risk. Given a positive net worth standing at MYR 155,738,410, 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 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)

DNP IMAGINGCOMM ASIA SDN. BHD.

 

Financial Year End

2013-12-31

2012-12-31

Months

12

10

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

SUMMARY

FULL

Currency

MYR

MYR

TURNOVER

3,323,770

-

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

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

Total Turnover

3,323,770

-

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

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

PROFIT/(LOSS) FROM OPERATIONS

(2,958,123)

(292,304)

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

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

PROFIT/(LOSS) BEFORE TAXATION

(2,958,123)

(292,304)

Taxation

-

(11,163)

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

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

PROFIT/(LOSS) AFTER TAXATION

(2,958,123)

(303,467)

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(303,467)

-

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

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

As restated

(303,467)

-

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(3,261,590)

(303,467)

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(3,261,590)

(303,467)

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

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

 

 

 

 

BALANCE SHEET

 

DNP IMAGINGCOMM ASIA SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

101,851,327

2,939,333

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

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

TOTAL LONG TERM ASSETS

101,851,327

2,939,333

Other debtors, deposits & prepayments

-

2,991,106

Cash & bank balances

-

37,087,114

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

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

TOTAL CURRENT ASSETS

99,741,591

40,078,220

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

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

TOTAL ASSET

201,592,918

43,017,553

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

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

Other creditors & accruals

-

2,984,790

Amounts owing to related companies

-

325,067

Provision for taxation

-

11,163

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

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

TOTAL CURRENT LIABILITIES

45,854,508

3,321,020

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

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

NET CURRENT ASSETS/(LIABILITIES)

53,887,083

36,757,200

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

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

TOTAL NET ASSETS

155,738,410

39,696,533

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

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

SHARE CAPITAL

Ordinary share capital

159,000,000

40,000,000

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

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

TOTAL SHARE CAPITAL

159,000,000

40,000,000

Retained profit/(loss) carried forward

(3,261,590)

(303,467)

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

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

TOTAL RESERVES

(3,261,590)

(303,467)

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

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

SHAREHOLDERS' FUNDS/EQUITY

155,738,410

39,696,533

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

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

155,738,410

39,696,533

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

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

 

 

 

 

FINANCIAL RATIO

 

DNP IMAGINGCOMM ASIA SDN. BHD.

 

TYPES OF FUNDS

Cash

-

37,087,114

Net Liquid Funds

-

37,087,114

Net Liquid Assets

53,887,083

36,757,200

Net Current Assets/(Liabilities)

53,887,083

36,757,200

Net Tangible Assets

155,738,410

39,696,533

Net Monetary Assets

53,887,083

36,757,200

BALANCE SHEET ITEMS

Total Borrowings

-

0

Total Liabilities

45,854,508

3,321,020

Total Assets

201,592,918

43,017,553

Net Assets

155,738,410

39,696,533

Net Assets Backing

155,738,410

39,696,533

Shareholders' Funds

155,738,410

39,696,533

Total Share Capital

159,000,000

40,000,000

Total Reserves

(3,261,590)

(303,467)

LIQUIDITY (Times)

Cash Ratio

-

11.17

Liquid Ratio

-

12.07

Current Ratio

2.18

12.07

WORKING CAPITAL CONTROL (Days)

Stock Ratio

-

0

Debtors Ratio

-

0

Creditors Ratio

-

0

SOLVENCY RATIOS (Times)

Gearing Ratio

-

0.00

Liabilities Ratio

0.29

0.08

Times Interest Earned Ratio

-

0.00

Assets Backing Ratio

0.98

0.99

PERFORMANCE RATIO (%)

Operating Profit Margin

(89.00)

0.00

Net Profit Margin

(89.00)

0.00

Return On Net Assets

(1.90)

(0.74)

Return On Capital Employed

(1.90)

(0.74)

Return On Shareholders' Funds/Equity

(1.90)

(0.76)

Dividend Pay Out Ratio (Times)

-

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

-

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.93.13

Euro

1

Rs.70.03

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.