MIRA INFORM REPORT

 

 

Report No. :

326300

Report Date :

11.06.2015

 

IDENTIFICATION DETAILS

 

Name :

KPT RECYCLE SDN. BHD.

 

 

Registered Office :

1.07, Pelangi Point, Lintang Pekan Baru, Tingkat Satu, 41050 Klang, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

18.07.2008

 

 

Com. Reg. No.:

825991-H

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Recycled Scrapped Metals, Papers.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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. Falling global oil prices in the second half of 2014 have shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. 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. Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

825991-H

COMPANY NAME

:

KPT RECYCLE SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

18/07/2008

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

1.07, PELANGI POINT, LINTANG PEKAN BARU, TINGKAT SATU, 41050 KLANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 927, JALAN SELLATHEVAN, BATU 4, KAMPUNG JAWA, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-51613455

FAX.NO.

:

03-51624309

CONTACT PERSON

:

LEE TENG KEE ( DIRECTOR )

INDUSTRY CODE

:

46698

PRINCIPAL ACTIVITY

:

TRADING OF RECYCLED SCRAPPED METALS, PAPERS

AUTHORISED CAPITAL

:

MYR 100,000.00 DIVIDED INTO
ORDINARY SHARE 100,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 100,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 7,992,560 [2013]

NET WORTH

:

MYR 1,393,045 [2013]

STAFF STRENGTH

:

N/A

BANKER (S)

:

PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

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) trading of recycled scrapped metals, papers.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

31/03/2014

MYR 100,000.00

MYR 100,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. LEE TENG KEE +

7, JALAN SOLOK SULAM 1, TAMAN MAZNAH, 41000 KLANG, SELANGOR, MALAYSIA.

581107-10-6293 5494139

51,000.00

51.00

MR. LEE KUANG CHEN +

7, JALAN SOLOK SULAM 1, TAMAN MAZNAH, 41000 KLANG, SELANGOR, MALAYSIA.

820616-10-5243

16,333.00

16.33

MR. LEE CHAY CHEN +

7, JALAN SOLOK SULAM 1, TAMAN MAZNAH, 41000 KLANG, SELANGOR, MALAYSIA.

850430-10-5197

16,333.00

16.33

MR. LEE YU CHEN

7, JALAN SOLOK SULAM 1, TAMAN MAZNAH, KAMPUNG JAWA, 41000 KLANG, SELANGOR, MALAYSIA.

810131-10-5449

16,334.00

16.33

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

------

100,000.00

100.00

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. LIM ENG LEE

Address

:

50, LORONG BATU UNJUR 3A, TAMAN BAYU PERDANA, 41200 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

3991374

New IC No

:

501105-10-5593

Date of Birth

:

05/11/1950

Nationality

:

MALAYSIAN

Date of Appointment

:

21/03/2012

 

DIRECTOR 2

 

Name Of Subject

:

MR. LEE CHAY CHEN

Address

:

7, JALAN SOLOK SULAM 1, TAMAN MAZNAH, 41000 KLANG, SELANGOR, MALAYSIA.

New IC No

:

850430-10-5197

Date of Birth

:

30/04/1985

Nationality

:

MALAYSIAN

Date of Appointment

:

03/02/2010

 

DIRECTOR 3

 

Name Of Subject

:

MR. LEE KUANG CHEN

Address

:

7, JALAN SOLOK SULAM 1, TAMAN MAZNAH, 41000 KLANG, SELANGOR, MALAYSIA.

New IC No

:

820616-10-5243

Date of Birth

:

16/06/1982

Nationality

:

MALAYSIAN

Date of Appointment

:

21/03/2012

 

DIRECTOR 4

 

Name Of Subject

:

MR. LEE TENG KEE

Address

:

7, JALAN SOLOK SULAM 1, TAMAN MAZNAH, 41000 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

5494139

New IC No

:

581107-10-6293

Date of Birth

:

07/11/1958

Nationality

:

MALAYSIAN

Date of Appointment

:

18/07/2008


MANAGEMENT

 

 

 

1)

Name of Subject

:

LEE TENG KEE

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

K.H. KWONG & CO

Auditor' Address

:

15-A, JALAN SS 15/4C, 1ST FLOOR, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. SEE YEW LEE

IC / PP No

:

4380437

New IC No

:

520807-10-5479

Address

:

222, JALAN BESAR, SASARAN, 45800 JERAM, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

PUBLIC BANK BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

16/05/2012

FACILITY AGREEMENT, FIRST PARTY CHARGE AND LETTER OF GUARANTEE

PUBLIC BANK BHD

-

Unsatisfied

2

30/10/2014

FACILITY AGREEMENT, FIRST PARTY CHARGE AND JOINT AND SEVERAL GUARANTEE

PUBLIC BANK BHD

-

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

:

N/A

Overseas

:

N/A


The Subject refused to disclose its suppliers.

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

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

N/A

Payment Mode

:

CHEQUES

 

OPERATIONS

 

Goods Traded

:

RECYCLED SCRAPPED METALS, PAPERS

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading of recycled scrapped metals, papers.

The Subject refused to disclose its operation.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

603 5161 3455 / 4791

Current Telephone Number

:

03-51613455

Match

:

YES

Address Provided by Client

:

LOT 927 JLN SELLATHEVAN BATU 4 KG JAWA 40460 SHAH ALAM SELANGOR DARUL

Current Address

:

LOT 927, JALAN SELLATHEVAN, BATU 4, KAMPUNG JAWA, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


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

She refused to disclose the number of employees.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

Return on Shareholder Funds

:

Acceptable

[

19.11%

]

Return on Net Assets

:

Acceptable

[

20.67%

]

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's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Favourable

[

4 Days

]

Debtor Ratio

:

Unfavourable

[

113 Days

]

Creditors Ratio

:

Favourable

[

55 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 debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Favourable

[

1.50 Times

]

Current Ratio

:

Unfavourable

[

1.55 Times

]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Favourable

[

13.76 Times

]

Gearing Ratio

:

Favourable

[

0.40 Times

]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. 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 :

Generally, the Subject's performance has improved with higher turnover and profit. 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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 : STRONG

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.3

4.0

Unemployment Rate

3.3

3.2

3.0

3.0

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

-

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

-

-

Business Loans Disbursed( % )

15.3

32.2

-

-

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

-

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

-

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

-

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

-

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

-

-

Registration of New Business ( No. )

284,598

324,761

329,895

-

-

Registration of New Business ( % )

5.0

14.0

2.0

-

-

Business Dissolved ( No. )

20,121

20,380

18,161

-

-

Business Dissolved ( % )

1.9

1.3

(10.9)

-

-

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

-

-

Credit Cards Spending ( % )

15.6

12.6

-

-

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-



INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.6

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

-

-

Plastic Products

3.8

-

-

-

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

46698 : Wholesale of metal and non-metal waste and scrap and materials for recycling

INDUSTRY :

TRADING

The wholesale and retail trade is expected to increase 7.1% in 2015 (2014: 7.7%) driven by strong domestic consumption and higher tourist arrivals following the Malaysia Year of Festivals 2015. Besides, in 2014, the wholesale and retail trade subsector is expected to increase 7.7% (2013: 6.4%) supported by strong domestic consumption.

According to Retail Group Malaysia (RGM), the pharmacy and personal care sub-sector had slow growth rate of 2.6% for the first quarter of 2014, while "other specialty stores" grew at a rate of 3.5%. During the first quarter of 2014, fashion and fashion accessories recorded a sustainable growth of 6.3% as compared with the same period last year (3.6%).

The retail segment increased 10.1% (January - June 2013: 7.1%) attributed to brisk sales in retail outlets such as hypermarkets and large-scale superstores. Since the launch of the Small Retailer Transformation programme (TUKAR) in January 2011 up to end-July 2014, 1,761 small retailer stores (end-July 2013: 1,381) have been modernized to improve their competitiveness. In addition, the strong growth of the retail segment was supported by 1Malaysia Unified Sales held from 29 June 2014 to 1 September 2014 to attract foreign and local tourists to shop in Malaysia. Meanwhile, the wholesale segment expanded 8.2% (January - June 2013: 4.9%) due to higher sales of non-agricultural intermediate products, such as petrol, diesel, lubricants and household goods. Furthermore, food and beverage outlets, laundry outlets, car wash centres, abd health and beauty outlets took a hit from the water rationing in the Klang Valley since February this year.

On the other hand, in 2014, Malaysia's total trade is expected to grow 5.2% to RM1.44 trillion (2013: 4.5%; RM1.37 trillion) underpinned by recovery in key advanced economies, resilient regional demand, and partly due to the base effect arising from sluggish exports in the corresponding period last year. Gross exports are anticipated to expand 6% to RM762.8 billion while import decreased 4.3% to RM677.2 billion (2013: 2.4%; RM719.8 billion; 7%; RM 649.1 billion). Consequently, the trade surplus is expected to be higher at RM85.6 billion or 7.9% of GDP in 2014 (2013: RM70.7 billion; 7.2%).

Furthermore, gross exports rebounded by 10.7% to RM441.3 billion during the first seven months of 2014 (January - July 2013: -2.8%; RM398.5 billion), with manufactured and mining exports rising at a double digit pace of 11.4% and 12.5%. Shipment of agriculture products grew at a slower pace of 2.7%, primarily due to lower receipts of crude rubber (-24.6%) while export growth of other commodities remained steady. Consequently, exports of manufactured and mining products are expected to grow 6.1% and 6.4% in 2014 (2013: 5.1%; 3.3%). Meanwhile, agriculture exports are expected to rebound sharply by 4.5% in 2014 (2013: -14.4%) despite moderating commodity prices. Malaysia's top 3 trading partners are China, Singapore, and Japan.

Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption. Therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2008, the Subject is a Private Limited company, focusing on trading of recycled scrapped metals, papers. 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. We noted that the issued and paid up capital of the Subject stands at MYR 100,000. Under the control of its directors, we considered that the Subject's business position in the market is much dependent on their abilities.

Investigation revealed, the Subject should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. 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.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a 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 1,393,045, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.

The Subject's 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)

KPT RECYCLE SDN. BHD.

 

Financial Year End

2013-09-30

2012-09-30

2011-09-30

2010-09-30

2009-09-30

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

7,992,560

7,589,038

7,407,129

7,679,787

3,015,317

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

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

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

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

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

Total Turnover

7,992,560

7,589,038

7,407,129

7,679,787

3,015,317

Costs of Goods Sold

(6,656,591)

(6,228,874)

-

-

-

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

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

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

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

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

Gross Profit

1,335,969

1,360,164

-

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

343,453

334,822

283,450

501,408

241,138

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

343,453

334,822

283,450

501,408

241,138

Taxation

(77,231)

(102,204)

(75,423)

(107,836)

(48,532)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

266,222

232,618

208,027

393,572

192,606

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

1,026,823

794,205

586,178

192,606

-

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

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

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

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

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

As restated

1,026,823

794,205

586,178

192,606

-

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,293,045

1,026,823

794,205

586,178

192,606

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,293,045

1,026,823

794,205

586,178

192,606

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Hire purchase

15,701

16,450

-

-

-

Term loan / Borrowing

11,214

4,185

-

-

-

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

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

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

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

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

26,915

20,635

-

-

-

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

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

-

-

-

DEPRECIATION (as per notes to P&L)

159,067

147,496

-

-

-

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

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

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

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

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

159,067

147,496

-

-

-

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

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

 

 

 

BALANCE SHEET

 

KPT RECYCLE SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

818,721

911,271

705,440

420,636

20,476

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

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

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

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

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

TOTAL LONG TERM ASSETS

818,721

911,271

705,440

420,636

20,476

Stocks

96,779

20,817

-

-

-

Trade debtors

2,470,167

1,811,769

-

-

-

Other debtors, deposits & prepayments

163,341

154,038

-

-

-

Cash & bank balances

9,710

21,746

-

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

2,739,997

2,008,370

1,984,572

1,442,606

571,788

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

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

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

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

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

TOTAL ASSET

3,558,718

2,919,641

2,690,012

1,863,242

592,264

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

1,004,458

483,875

-

-

-

Other creditors & accruals

542,232

505,149

-

-

-

Hire purchase & lease creditors

88,094

128,264

-

-

-

Short term borrowings/Term loans

108,576

108,576

-

-

-

Amounts owing to director

12,953

15,000

-

-

-

Provision for taxation

10,625

21,288

-

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

1,766,938

1,262,152

1,313,659

1,152,405

395,480

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

973,059

746,218

670,913

290,201

176,308

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

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

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

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

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

TOTAL NET ASSETS

1,791,780

1,657,489

1,376,353

710,837

196,784

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

100,000

100,000

100,000

100

100

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

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

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

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

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

TOTAL SHARE CAPITAL

100,000

100,000

100,000

100

100

Retained profit/(loss) carried forward

1,293,045

1,026,823

794,205

586,178

192,606

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

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

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

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

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

TOTAL RESERVES

1,293,045

1,026,823

794,205

586,178

192,606

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,393,045

1,126,823

894,205

586,278

192,706

Long term loans

305,015

385,307

-

-

-

Hire purchase creditors

51,056

104,881

-

-

-

Deferred taxation

42,664

40,478

-

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

398,735

530,666

482,148

124,559

4,078

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

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

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

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

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

1,791,780

1,657,489

1,376,353

710,837

196,784

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

KPT RECYCLE SDN. BHD.

 

TYPES OF FUNDS

Cash

9,710

21,746

-

-

-

Net Liquid Funds

9,710

21,746

-

-

-

Net Liquid Assets

876,280

725,401

670,913

290,201

176,308

Net Current Assets/(Liabilities)

973,059

746,218

670,913

290,201

176,308

Net Tangible Assets

1,791,780

1,657,489

1,376,353

710,837

196,784

Net Monetary Assets

477,545

194,735

188,765

165,642

172,230

BALANCE SHEET ITEMS

Total Borrowings

552,741

727,028

-

-

-

Total Liabilities

2,165,673

1,792,818

1,795,807

1,276,964

399,558

Total Assets

3,558,718

2,919,641

2,690,012

1,863,242

592,264

Net Assets

1,791,780

1,657,489

1,376,353

710,837

196,784

Net Assets Backing

1,393,045

1,126,823

894,205

586,278

192,706

Shareholders' Funds

1,393,045

1,126,823

894,205

586,278

192,706

Total Share Capital

100,000

100,000

100,000

100

100

Total Reserves

1,293,045

1,026,823

794,205

586,178

192,606

LIQUIDITY (Times)

Cash Ratio

0.01

0.02

-

-

-

Liquid Ratio

1.50

1.57

-

-

-

Current Ratio

1.55

1.59

1.51

1.25

1.45

WORKING CAPITAL CONTROL (Days)

Stock Ratio

4

1

-

-

-

Debtors Ratio

113

87

-

-

-

Creditors Ratio

55

28

-

-

-

SOLVENCY RATIOS (Times)

Gearing Ratio

0.40

0.65

-

-

-

Liabilities Ratio

1.55

1.59

2.01

2.18

2.07

Times Interest Earned Ratio

13.76

17.23

-

-

-

Assets Backing Ratio

17.92

16.57

13.76

7,108.37

1,967.84

PERFORMANCE RATIO (%)

Operating Profit Margin

4.30

4.41

3.83

6.53

8.00

Net Profit Margin

3.33

3.07

2.81

5.12

6.39

Return On Net Assets

20.67

21.45

20.59

70.54

122.54

Return On Capital Employed

19.70

19.91

20.59

70.54

122.54

Return On Shareholders' Funds/Equity

19.11

20.64

23.26

67.13

99.95

Dividend Pay Out Ratio (Times)

0.00

0.00

-

-

-

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.88

UK Pound

1

Rs.98.47

Euro

1

Rs.72.15

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

 

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.