MIRA INFORM REPORT

 

 

Report No. :

328304

Report Date :

25.06.2015

 

IDENTIFICATION DETAILS

 

Name :

RUBBERFLEX SDN.BHD.

 

 

Formerly Known As :

HEVEAFLEX SDN. BHD. (18/10/1986)

HEVEA INDUSTRIES SDN BHD (12/08/1985)

 

 

Registered Office :

Ubn Tower, P.O.Box 48, 10 Jalan P Ramlee, 21st Floor, 50470 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

26.01.1985

 

 

Com. Reg. No.:

134208-U

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing Of Rubber Thread

 

 

No of Employees :

800 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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 previously 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 strained government finances, 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 supplied about 29% of government revenue in 2014. 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.

:

134208-U

COMPANY NAME

:

RUBBERFLEX SDN.BHD.

FORMER NAME

:

HEVEAFLEX SDN. BHD. (18/10/1986)
HEVEA INDUSTRIES SDN BHD (12/08/1985)

INCORPORATION DATE

:

26/01/1985

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

UBN TOWER, P.O.BOX 48, 10 JALAN P RAMLEE, 21ST FLOOR, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

UBN TOWER, BOX 48, 10, JALAN P RAMLEE, 21ST FLOOR, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-20720011

FAX.NO.

:

03-20785103

EMAIL

:

INFO@RUBBERFLEX.COM.MY

WEB SITE

:

WWW.RUBBERFLEX.COM.MY

CONTACT PERSON

:

EUGENE KANG HONG NGEE ( DIRECTOR )

INDUSTRY CODE

:

221

PRINCIPAL ACTIVITY

:

MANUFACTURING OF RUBBER THREAD

AUTHORISED CAPITAL

:

MYR 30,000,000.00 DIVIDED INTO
ORDINARY SHARE 30,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 22,100,000.00 DIVIDED INTO
ORDINARY SHARES 22,100,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 573,413,579 [2013]

NET WORTH

:

MYR 257,437,096 [2013]

M1000 OVERALL RANKING

:

528[2011]

M1000 INDUSTRY RANKING

:

12[2011]

STAFF STRENGTH

:

800 [2015]

BANKER (S)

:

HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The Subject is principally engaged in the (as a / as an) manufacturing of rubber thread.

 

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

 

According to the Malaysia 1000 publication, the Subject's ranking are as follows:

YEAR

2011

2005

2004

OVERALL RANKING

528

822

907

INDUSTRY RANKING

12

17

14

 

The ultimate holding company of the Subject is RUBBER INTERNATIONAL A.G., a company incorporated in EUROPE.

 

Share Capital History

 

Date

Authorised Shared Capital

Issue & Paid Up Capital

23/04/2012

MYR 30,000,000.00

MYR 22,100,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

RUBBER INTERNATIONAL A.G.

ALTENBACH 8, SL 9490 VADUZ, FURSTENTUM LIECHTENSTIEN, LIECHTENSTEIN.

XLZ000002394

11,050,000.00

50.00

TOPONE ESTABLISHMENT

-

XLZ00210884

10,166,000.00

46.00

MALAYSIA NOMINEES (TEMPATAN) SENDIRIAN BERHAD

MALAYSIA

6193K

884,000.00

4.00

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

------

22,100,000.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

909715T

MALAYSIA

RUBBERFLEX REENERGY SDN. BHD.

100.00

26/11/2014



DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MR. KRISTOPA ANAK WATT

Address

:

82, KAMPUNG SELAMPIT, 94500 LUNDU, SARAWAK, MALAYSIA.

IC / PP No

:

680115-13-5557

New IC No

:

680115-13-5557

Date of Birth

:

15/01/1968

Nationality

:

MALAYSIAN

Date of Appointment

:

09/06/2006

 

DIRECTOR 2

 

Name Of Subject

:

EDGAR BAYSA VENTURA

Address

:

390, LORONG BENTONG MAKMUR 14, 28700 BENTONG, PAHANG, MALAYSIA.

IC / PP No

:

EB3797935

Nationality

:

FILIPINO

Date of Appointment

:

08/04/2003

 

DIRECTOR 3

 

Name Of Subject

:

MR. EUGENE KANG HONG NGEE

Address

:

B5-3, LOJING HEIGHTS 1, SECTION 5, WANGSA MAJU, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A2180211

New IC No

:

720323-01-5465

Date of Birth

:

23/03/1972

Nationality

:

MALAYSIAN

Date of Appointment

:

10/06/2008

 

DIRECTOR 4

 

Name Of Subject

:

ALDO CERINA

Address

:

12, JALAN U-THANT, 55000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

YA2464160

Nationality

:

ITALIAN

Date of Appointment

:

03/04/1989

 

 

MANAGEMENT

 

1)

Name of Subject

:

EUGENE KANG HONG NGEE

Position

:

DIRECTOR

 

2)

Name of Subject

:

FAUZIAH

Position

:

ADMINISTRATOR

 

3)

Name of Subject

:

MAZLAN

Position

:

HUMAN RESOURCE MANAGER

 

AUDITOR

 

Auditor

:

BAKER TILLY AC

Auditor' Address

:

TOWER 1, AVENUE 5, BANGSAR SOUTH CITY, LEVEL 10, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. WONG YOUN KIM

IC / PP No

:

A1617285

New IC No

:

700823-10-5530

Address

:

1041, JALAN KUANG GUNUNG 4, TAMAN KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

2)

Company Secretary

:

MR. WONG MAW CHUAN

New IC No

:

640419-10-6345

Address

:

17, JALAN BK 8/1F, BANDAR KINRARA, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

3)

Company Secretary

:

MR. EUGENE KANG HONG NGEE

IC / PP No

:

A2180211

New IC No

:

720323-01-5465

Address

:

B5-3, LOJING HEIGHTS 1, SECTION 5, WANGSA MAJU, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

23/06/1986

N/A

OVERSEACHINESE BANKING CORPORATION LTD

MYR 9,500,000.00

Satisfied

2

21/06/1988

N/A

BAN HIN LEE BANK BHD

MYR 4,750,000.00

Satisfied

3

21/06/1988

N/A

BAN HIN LEE BANK BHD

MYR 4,000,000.00

Satisfied

5

21/06/1988

N/A

BAN HIN LEE BANK BHD

MYR 8,750,000.00

Satisfied

4

12/07/1988

N/A

OVERSEA CHINESE BANKING CORP LTD

MYR 600,000.00

Satisfied

6

28/11/1988

N/A

OVERSEACHINESE BANKING CORP LTD

MYR 20,000,000.00

Satisfied

7

28/12/1988

N/A

BAN HIN LEE BANK BERHAD

MYR 350,000.00

Satisfied

8

07/11/1991

N/A

BANK BUMIPUTRA MALAYSIA BHD

MYR 20,300,000.00

Satisfied

9

07/06/1995

N/A

BANK BUMIPUTRA MALAYSIA BERHAD

MYR 20,300,000.00

Satisfied

10

12/12/1996

N/A

BANK BUMIPUTRA MALAYSIA BERHAD

MYR 20,300,000.00

Satisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank against 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

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

AUSTRALIA

CANADA

FINLAND

GERMANY

UNITED STATES

UNITED KINGDOM

ASIA

Credit Term

:

60 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

DEALERS

 

OPERATIONS

 

Products manufactured

:

RUBBER THREAD

Product Brand Name

:

RUBBERFLEX

Award

:

1 ) MS ISO 9001 : 2000 Year :2003

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

Ownership of premises

:

OWNED

Factory / Premises

:

LOT 2, BENTONG INDUSTRIAL AREA, 28700 BENTONG, PAHANG, MALAYSIA.
Tel No: 09-2224611
Fax No: 09-2225300

Factory Size

:

24.5 ACRES

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011


GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

800

800

800

800

750

 

Branch

:

YES

No of Branches

:

2

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of rubber thread.

The Subject offers a full range of elastic yarns based on extruded natural latex.

The Subject's products portfolio is includes as follows:

* Talc-coated (RX) thread

* Powderless (EX) silicone coated thread

* Food grade (MP) thread in RX for the manufacture of meat nettings

* High Modulus (HM) thread in RX & EX for the furniture industry

* Super soft thread for elasticated medical bandages

* Brightly coloured EX threads for the toy industry

* Baby Diaper grade thread\

* Super Heat Resistant (SHR) threads in both RX & EX form

* Weather resistant thread (LQ) for the sock trade.

The Subject utilizes state-of-the-art Italian technology machineries at its factory to ensure production of high quality products.

The Subject produces quality rubber threads for various applications in various industries.

The Subject strive for consistency in quality and to meet the customer’s stringent quality and delivery requirements.

With the Subject's worldwide distribution network and established manufacturing facility, it deliver products in a myriad of specifications according to each client's requirements.

The Subject has wide range of products that meet various industry requirements and different budgets.

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

0320720011

Current Telephone Number

:

03-20720011

Match

:

YES

Address Provided by Client

:

UBN TOWER, BOX 48, 10, JALAN P RAMLEE, 21ST FLOOR,50250,KUALA LUMPUR,WILAYAH PERSEKUTUAN.

Current Address

:

UBN TOWER, BOX 48, 10, JALAN P RAMLEE, 21ST FLOOR, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


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

 

FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Decreased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

Return on Shareholder Funds

:

Unfavourable

[

6.95%

]

Return on Net Assets

:

Unfavourable

[

6.68%

]

The continuous fall in turnover could be due to the lower demand for the Subject's products / services. The Subject's management have been efficient in controlling its operating costs. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Unfavourable

[

83 Days

]

Debtor Ratio

:

Unfavourable

[

81 Days

]

Creditors Ratio

:

Favourable

[

14 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. 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

[

1.09 Times

]

Current Ratio

:

Unfavourable

[

1.98 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

[

12.66 Times

]

Gearing Ratio

:

Favourable

[

0.44 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 :

Due to the efficient control of its operating costs, the Subject was able to remain profitable despite lower turnover achieved during the year. 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 : 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

221 : Manufacture of rubber products

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 1985, the Subject is a Private Limited company, focusing on manufacturing of rubber thread. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. The Subject is a large entity with strong capital position of MYR 22,100,000. 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. Being a large entity, the Subject has a steady workforce of 800 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.

Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. 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. 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 257,437,096, 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.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

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 promptly.

 



PROFIT AND LOSS ACCOUNT

 

 

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

RUBBERFLEX SDN.BHD.

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

2009-12-31

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

573,413,579

658,767,029

852,549,401

745,214,544

664,663,887

Other Income

4,164,897

5,876,753

10,463,195

12,266,711

6,070,217

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

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

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

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

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

Total Turnover

577,578,476

664,643,782

863,012,596

757,481,255

670,734,104

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

17,009,193

10,574,168

21,401,086

44,281,189

64,695,874

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

17,009,193

10,574,168

21,401,086

44,281,189

64,695,874

Taxation

874,100

(848,812)

(2,822,381)

(1,214,615)

(7,114,821)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

17,883,293

9,725,356

18,578,705

43,066,574

57,581,053

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

224,204,224

220,003,868

225,735,163

194,823,589

149,397,536

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

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

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

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

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

As restated

224,204,224

220,003,868

225,735,163

194,823,589

149,397,536

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

242,087,517

229,729,224

244,313,868

237,890,163

206,978,589

DIVIDENDS - Ordinary (paid & proposed)

(7,072,000)

(5,525,000)

(24,310,000)

(12,155,000)

(12,155,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

235,015,517

224,204,224

220,003,868

225,735,163

194,823,589

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

5,529

5,010

-

-

-

Term loan / Borrowing

1,270,039

2,592,046

-

-

-

Others

183,151

-

2,381,247

4,386,514

6,109,228

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

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

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

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

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

1,458,719

2,597,056

2,381,247

4,386,514

6,109,228

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

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

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

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

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

DEPRECIATION (as per notes to P&L)

18,054,266

17,530,889

17,420,093

19,849,585

19,635,931

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

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

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

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

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

18,054,266

17,530,889

17,420,093

19,849,585

19,635,931

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

RUBBERFLEX SDN.BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

130,252,239

141,683,725

153,346,431

156,855,571

157,358,193

Others

2,306,897

5,088

552,525

3,280,459

2,593,062

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

2,306,897

5,088

552,525

3,280,459

2,593,062

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

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

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

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

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

TOTAL LONG TERM ASSETS

132,559,136

141,688,813

153,898,956

160,136,030

159,951,255

Stocks

130,654,691

120,568,667

153,644,317

113,956,023

78,280,806

Trade debtors

127,710,496

134,195,109

134,467,716

185,956,301

135,499,798

Other debtors, deposits & prepayments

3,166,556

1,392,363

3,299,865

2,796,307

2,084,673

Short term deposits

-

79,942

1,634,190

-

-

Cash & bank balances

25,979,766

21,010,941

22,915,971

43,653,383

28,388,498

Others

3,558,436

4,526,369

1,027,138

2,817,171

-

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

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

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

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

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

TOTAL CURRENT ASSETS

291,069,945

281,773,391

316,989,197

349,179,185

244,253,775

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

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

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

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

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

TOTAL ASSET

423,629,081

423,462,204

470,888,153

509,315,215

404,205,030

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

21,646,524

17,571,759

26,168,953

40,027,614

27,179,604

Other creditors & accruals

12,110,913

9,172,358

9,171,490

21,187,908

14,117,966

Short term borrowings/Term loans

112,082,889

125,526,627

-

-

-

Other borrowings

-

-

167,996,694

113,000

8,326,000

Deposits from customers

10,822

1,119,164

-

-

-

Bill & acceptances payable

-

-

-

14,257,000

31,148,790

Amounts owing to director

-

233,019

190,897

-

7,650

Provision for taxation

35,100

345,181

-

-

934,420

Dividends payable/proposed

1,105,000

1,105,000

1,105,000

1,105,000

17,260,000

Other liabilities

149,337

-

2,035,250

163,415,079

66,741,538

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

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

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

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

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

TOTAL CURRENT LIABILITIES

147,140,585

155,073,108

206,668,284

240,105,601

165,715,968

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

143,929,360

126,700,283

110,320,913

109,073,584

78,537,807

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

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

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

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

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

TOTAL NET ASSETS

276,488,496

268,389,096

264,219,869

269,209,614

238,489,062

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

22,100,000

22,100,000

22,100,000

22,100,000

22,100,000

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

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

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

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

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

TOTAL SHARE CAPITAL

22,100,000

22,100,000

22,100,000

22,100,000

22,100,000

Exchange equalisation/fluctuation reserve

321,579

479,972

977,401

569,851

143,373

Retained profit/(loss) carried forward

235,015,517

224,204,224

220,003,868

225,735,163

194,823,589

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

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

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

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

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

TOTAL RESERVES

235,337,096

224,684,196

220,981,269

226,305,014

194,966,962

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

257,437,096

246,784,196

243,081,269

248,405,014

217,066,962

Deferred taxation

19,051,400

21,604,900

21,138,600

20,804,600

21,422,100

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

19,051,400

21,604,900

21,138,600

20,804,600

21,422,100

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

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

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

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

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

276,488,496

268,389,096

264,219,869

269,209,614

238,489,062

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

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

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

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

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

 

 

 

 

FINANCIAL RATIO

 

 

RUBBERFLEX SDN.BHD.

 

TYPES OF FUNDS

Cash

25,979,766

21,090,883

24,550,161

43,653,383

28,388,498

Net Liquid Funds

25,979,766

21,090,883

24,550,161

29,396,383

(2,760,292)

Net Liquid Assets

13,274,669

6,131,616

(43,323,404)

(4,882,439)

257,001

Net Current Assets/(Liabilities)

143,929,360

126,700,283

110,320,913

109,073,584

78,537,807

Net Tangible Assets

276,488,496

268,389,096

264,219,869

269,209,614

238,489,062

Net Monetary Assets

(5,776,731)

(15,473,284)

(64,462,004)

(25,687,039)

(21,165,099)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

18,467,912

13,171,224

23,782,333

48,667,703

70,805,102

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

36,522,178

30,702,113

41,202,426

68,517,288

90,441,033

BALANCE SHEET ITEMS

Total Borrowings

112,082,889

125,526,627

167,996,694

14,370,000

39,474,790

Total Liabilities

166,191,985

176,678,008

227,806,884

260,910,201

187,138,068

Total Assets

423,629,081

423,462,204

470,888,153

509,315,215

404,205,030

Net Assets

276,488,496

268,389,096

264,219,869

269,209,614

238,489,062

Net Assets Backing

257,437,096

246,784,196

243,081,269

248,405,014

217,066,962

Shareholders' Funds

257,437,096

246,784,196

243,081,269

248,405,014

217,066,962

Total Share Capital

22,100,000

22,100,000

22,100,000

22,100,000

22,100,000

Total Reserves

235,337,096

224,684,196

220,981,269

226,305,014

194,966,962

LIQUIDITY (Times)

Cash Ratio

0.18

0.14

0.12

0.18

0.17

Liquid Ratio

1.09

1.04

0.79

0.98

1.00

Current Ratio

1.98

1.82

1.53

1.45

1.47

WORKING CAPITAL CONTROL (Days)

Stock Ratio

83

67

66

56

43

Debtors Ratio

81

74

58

91

74

Creditors Ratio

14

10

11

20

15

SOLVENCY RATIOS (Times)

Gearing Ratio

0.44

0.51

0.69

0.06

0.18

Liabilities Ratio

0.65

0.72

0.94

1.05

0.86

Times Interest Earned Ratio

12.66

5.07

9.99

11.09

11.59

Assets Backing Ratio

12.51

12.14

11.96

12.18

10.79

PERFORMANCE RATIO (%)

Operating Profit Margin

2.97

1.61

2.51

5.94

9.73

Net Profit Margin

3.12

1.48

2.18

5.78

8.66

Return On Net Assets

6.68

4.91

9.00

18.08

29.69

Return On Capital Employed

6.68

4.91

9.00

18.08

29.69

Return On Shareholders' Funds/Equity

6.95

3.94

7.64

17.34

26.53

Dividend Pay Out Ratio (Times)

0.40

0.57

1.31

0.28

0.21

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 63.66

UK Pound

1

Rs. 100.50

Euro

1

Rs. 71.31

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.