MIRA INFORM REPORT

 

 

Report No. :

327224

Report Date :

16.06.2015

 

IDENTIFICATION DETAILS

 

Name :

GUPPY PLASTIC INDUSTRIES SDN. BHD.

 

 

Registered Office :

The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Level 18, 59200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Date of Incorporation :

16.10.1981

 

 

Com. Reg. No.:

76939-U

 

 

Legal Form :

Exempt Private (Limited by Share)

 

 

Line of Business :

Manufacturing and Trading of Plastic Injection Moulded Products.

 

 

No. of Employees :

500 [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 :

Unknown

 

 

Litigation :

Clear

 

 

NOTES:

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

 

 

ECGC Country Risk Classification List – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. 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.

:

76939-U

COMPANY NAME

:

GUPPY PLASTIC INDUSTRIES SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

16/10/1981

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 15-19, LORONG 3A, KAWASAN PERUSAHAAN CHERAS JAYA, 43200 BALAKONG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-90753888

FAX.NO.

:

03-90751688

EMAIL

:

SALES@GUPPYPLASTIC.COM.MY

WEB SITE

:

WWW.GUPPYPLASTIC.COM

CONTACT PERSON

:

GOH CHOON PIOW ( MANAGING DIRECTOR )

INDUSTRY CODE

:

22205

PRINCIPAL ACTIVITY

:

MANUFACTURING AND TRADING OF PLASTIC INJECTION MOULDED PRODUCTS

AUTHORISED CAPITAL

:

MYR 2,000,000.00 DIVIDED INTO
ORDINARY SHARE 2,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,000,000.00 DIVIDED INTO
ORDINARY SHARES 2 CASH AND 1,999,998 OTHERWISE OF MYR 1.00 EACH.

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

500 [2015]

BANKER (S)

:

CIMB BANK BHD
OCBC BANK (MALAYSIA) BHD
PUBLIC BANK BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY/ BACKGROUND

 

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

 

The Subject is principally engaged in the (as a / as an) manufacturing and trading of plastic injection moulded products.

 

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 2,000,000.00

MYR 2,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. GOH CHOON PIOW +

13, LORONG CP 8/27, TAMAN CHERAS PERDANA, 43200 BALAKONG, SELANGOR, MALAYSIA.

400126-71-5259 7968899

1,000,000.00

50.00

MR. NG AH HENG @ NG KIAT GUAN

1, CHANGKAT DESA, TAMAN DESA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

460810-71-5049

1,000,000.00

50.00

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

------

2,000,000.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

17804H

MALAYSIA

YU EE INDUSTRY SDN. BHD.

100.00

26/11/2014



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. NG AH HENG @ NG KIAT GUAN

Address

:

1, CHANGKAT DESA, TAMAN DESA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

460810-71-5049

Date of Birth

:

10/08/1946

Nationality

:

MALAYSIAN

Date of Appointment

:

16/10/1981

 

DIRECTOR 2

 

Name Of Subject

:

MR. GOH CHOON PIOW

Address

:

13, LORONG CP 8/27, TAMAN CHERAS PERDANA, 43200 BALAKONG, SELANGOR, MALAYSIA.

IC / PP No

:

7968899

New IC No

:

400126-71-5259

Date of Birth

:

26/01/1940

Nationality

:

MALAYSIAN

Date of Appointment

:

16/10/1981

 

 

MANAGEMENT

 

 

1)

Name of Subject

:

GOH CHOON PIOW

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

MOO CHOONG FATT

Position

:

FINANCE & ADMIN MANAGER

 

 

 

AUDITOR

 

Auditor

:

HO & ASSOCIATES

Auditor' Address

:

98-2B, JALAN PJU 1/3 B, SUNWAYMAS COMMERCIAL CENTRE, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. THAM WAI YING

IC / PP No

:

A1008639

New IC No

:

680810-10-6360

Address

:

46, JALAN MIDAH 19-A, TAMAN MIDAH, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

2)

Company Secretary

:

MS. KUAN HUI FANG

IC / PP No

:

A1845678

New IC No

:

710224-10-5204

Address

:

23, JALAN BU 3/2, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

2)

Name

:

OCBC BANK (MALAYSIA) BHD

 

3)

Name

:

PUBLIC BANK BHD

 

4)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

8

23/12/1985

N/A

OCBC BANK MALAYSIA BERHAD

MYR 5,000,000.00

Current

9

09/07/1990

N/A

UNITED OVERSEAS BANK MALAYSIA BERHAD

MYR 1,500,000.00

Satisfied

10

09/07/1990

N/A

UNITED OVERSEAS BANK MALAYSIA BERHAD

MYR 3,500,000.00

Satisfied

11

05/11/1990

N/A

ORIENTAL BANK BERHAD

MYR 1,400,000.00

Satisfied

12

11/12/1992

N/A

OCBC BANK MALAYSIA BERHAD

MYR 5,700,000.00

Unsatisfied

13

11/12/1992

N/A

OCBC BANK MALAYSIA BERHAD

MYR 5,700,000.00

Satisfied

14

11/12/1992

OPEN CHARGE

OCBC BANK MALAYSIA BERHAD

MYR 10,700,000.00

Unsatisfied

15

15/11/1993

N/A

EON BANK BHD

MYR 700,000.00

Satisfied

16

29/04/1994

OPEN CHARGE

BAN HIN LEE BANK BERHAD

MYR 2,800,000.00

Unsatisfied

17

03/10/1994

OPEN CHARGE

BAN HIN LEE BANK BERHAD

MYR 2,800,000.00

Unsatisfied

18

13/07/1995

N/A

AFFIN BANK BERHAD

MYR 9,000,000.00

Satisfied

19

04/01/1996

N/A

AFFIN BANK BERHAD

MYR 16,000,000.00

Satisfied

20

04/01/1996

N/A

AFFIN BANK BERHAD

MYR 7,000,000.00

Satisfied

21

12/01/1996

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 2,000,000.00

Satisfied

22

17/01/1996

N/A

OCBC BANK MALAYSIA BERHAD

MYR 3,000,000.00

Satisfied

23

17/01/1996

OPEN CHARGE

OCBC BANK MALAYSIA BERHAD

MYR 3,000,000.00

Unsatisfied

24

18/03/1996

OPEN CHARGE

OCBC BANK MALAYSIA BERHAD

MYR 3,000,000.00

Unsatisfied

25

28/03/1998

N/A

SOUTHERN BANK BERHAD

MYR 10,000,000.00

Satisfied

27

25/04/2001

OPEN CHARGE

BUMIPUTRACOMMERCE BANK BERHAD

MYR 7,500,000.00

Unsatisfied

26

02/05/2001

OPEN CHARGE

OCBC BANK MALAYSIA BERHAD

MYR 5,000,000.00

Unsatisfied

28

14/02/2002

OPEN CHARGE

PUBLIC BANK BERHAD

MYR 900,000.00

Unsatisfied

29

14/02/2002

OPEN CHARGE

PUBLIC BANK BERHAD

MYR 900,000.00

Unsatisfied

30

05/11/2002

OPEN CHARGE

UNITED OVERSEAS BANK MALAYSIA BHD

-

Unsatisfied

31

05/11/2002

OPEN CHARGE

UNITED OVERSEAS BANK MALAYSIA BHD

-

Unsatisfied

32

05/11/2002

OPEN CHARGE

UNITED OVERSEAS BANK MALAYSIA BHD

-

Unsatisfied

33

15/12/2005

OPEN CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD

-

Unsatisfied

34

15/12/2005

OPEN CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD

-

Unsatisfied

35

15/12/2005

OPEN CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD

-

Unsatisfied

36

24/05/2007

OPEN CHARGE

OCBC BANK (MALAYSIA) BHD

-

Unsatisfied

37

24/05/2007

OPEN CHARGE

OCBC BANK (MALAYSIA) BHD

-

Unsatisfied

38

16/01/2009

OPEN CHARGE

CIMB BANK BERHAD

-

Unsatisfied

39

19/11/2010

OPEN CHARGE

PUBLIC BANK BHD

-

Unsatisfied

40

21/12/2010

OPEN CHARGE

CIMB BANK BERHAD

MYR 4,500,000.00

Unsatisfied

41

06/01/2011

OPEN CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 2,200,000.00

Unsatisfied

42

06/01/2011

OPEN CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 3,600,000.00

Unsatisfied

43

06/01/2011

OPEN CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 2,000,000.00

Unsatisfied

44

06/01/2011

OPEN CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 4,000,000.00

Unsatisfied

45

06/01/2011

OPEN CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 13,000,000.00

Unsatisfied

46

06/01/2011

OPEN CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 5,000,000.00

Unsatisfied

47

24/01/2011

OPEN CHARGE

PUBLIC BANK BHD

-

Unsatisfied

48

24/01/2011

OPEN CHARGE

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

:

YES

Percentage

:

70%

Overseas

:

YES

Percentage

:

30%

Import Countries

:

AUSTRALIA,JAPAN,EUROPE

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

15%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

85%

Export Market

:

EUROPE

ASIA PACIFIC

Credit Term

:

30 - 60 DAYS

Payment Mode

:

TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

PLASTIC INJECTION MOULDED PRODUCTS (SPOON, FORK, PLATE AND ALL RELATED PRODUCTS)

Award

:

1 ) HACCP Year :2002
2 ) QS 9000 Year :2002
3 ) MS ISO 9001 : 2000 Year :1998

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

Factory Size

:

28,328 SQ METRES

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

500

550

430

430

400

 

Branch

:

YES

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing and trading of plastic injection moulded products.

The Subject undertakes the contract manufacturing of plastic injection products from precision plastics to consumer engineering, office equipment, automotive, components, and electronic components packaging.

The plants also performs secondary processes such as printing, spraying, welding, insertion and sub-assembly.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0390753888

Current Telephone Number

:

03-90753888

Match

:

YES

Address Provided by Client

:

LOT 15-19, LORONG 3A, KAWASAN PERUSAHAAN CHERAS JAYA,43200,CHERAS,SELANGOR.

Current Address

:

LOT 15-19, LORONG 3A, KAWASAN PERUSAHAAN CHERAS JAYA, 43200 BALAKONG, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

NO


We have contacted the Subject's Accountant and its Company Secretary for the latest financial accounts. However they have rejected our request in view of the confidentiality of the documents.

 

Other Investigations


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



FINANCIAL ANALYSIS

 

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

Overall financial condition of the Subject : N/A

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.3

4.0

Unemployment Rate

3.3

3.2

3.0

3.0

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

-

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

-

-

Business Loans Disbursed( % )

15.3

32.2

-

-

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

-

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

-

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

-

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

-

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

-

-

Registration of New Business ( No. )

284,598

324,761

329,895

-

-

Registration of New Business ( % )

5.0

14.0

2.0

-

-

Business Dissolved ( No. )

20,121

20,380

18,161

-

-

Business Dissolved ( % )

1.9

1.3

(10.9)

-

-

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

-

-

Credit Cards Spending ( % )

15.6

12.6

-

-

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-



INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.6

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

-

-

Plastic Products

3.8

-

-

-

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

22205 : Manufacture of plastic tableware, kitchenware and toilet articles

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 1981, the Subject is an Exempt Private company, focusing on manufacturing and trading of plastic injection moulded products. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. A paid up capital of MYR 2,000,000 allows the Subject to expand its business more comfortably. However, the Subject does not have strong shareholders’ backing. Without a strong shareholders' backing, the opportunity of the Subject to expand its business is limited.

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 large entity, the Subject has a steady workforce of 500 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to the Subject.


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


The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.


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


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

 

 

 

FINANCIAL ACCOUNT


No latest financial accounts are available at the Registry Office.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.09

UK Pound

1

Rs.99.57

Euro

1

Rs.71.84

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

 

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

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

 

Unlimited

 

71-85

Aa

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

 

Large

 

56-70

A

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

 

Fairly Large

 

41-55

Ba

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

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

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

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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

 

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

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

 

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

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