MIRA INFORM REPORT

 

 

Report No. :

348006

Report Date :

07.11.2015

 

IDENTIFICATION DETAILS

 

Name :

INTERPRINT DECOR (MALAYSIA) SDN. BHD.

 

 

Registered Office :

Symphony House, Pusat Dagangan Dana 1, Jalan Pju 1a/46, Level 8, 47301 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

08.02.1995

 

 

Com. Reg. No.:

333049-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in designing & printing of decorative surface for commercial application.

 

 

No. of Employees :

60

 

 

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 – 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

 

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. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration 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. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. 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 trying to lessen its dependence on state oil producer Petronas.

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB 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.

:

333049-D

COMPANY NAME

:

INTERPRINT DECOR (MALAYSIA) SDN. BHD.

FORMER NAME

:

IP-DECOR (MALAYSIA) SDN BHD (05/07/2000)

INCORPORATION DATE

:

08/02/1995

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SYMPHONY HOUSE, PUSAT DAGANGAN DANA 1, JALAN PJU 1A/46, LEVEL 8, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 121, JALAN PERMATA 2, ARAB MALAYSIAN INDUSTRIAL PARK, 71800 NILAI, NEGERI SEMBILAN, MALAYSIA.

TEL.NO.

:

06-7994005

FAX.NO.

:

06-7995986

EMAIL

:

INFO@INTERPRINT.COM.MY

WEB SITE

:

WWW.INTERPRINT.COM

CONTACT PERSON

:

TAN CHONG ENG ( MANAGING DIRECTOR )

INDUSTRY CODE

:

17093

PRINCIPAL ACTIVITY

:

DESIGNING & PRINTING OF DECORATIVE SURFACE FOR COMMERCIAL APPLICATION

AUTHORISED CAPITAL

:

MYR 25,000,000.00 DIVIDED INTO 
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 19,033,411.00 DIVIDED INTO 
ORDINARY SHARES 19,033,411 CASH OF MYR 1.00 EACH.

SALES

:

MYR 60,569,507 [2014]

NET WORTH

:

MYR 39,170,313 [2014]

STAFF STRENGTH

:

60 [2015]

BANKER (S)

:

DRESDNER BANK AG
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

NO COMPLAINTS

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

 

 

 

HISTORY / BACKGROUND

 

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

 

The Subject is principally engaged in the (as a / as an) designing & printing of decorative surface for commercial application.

 

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

 

The ultimate holding company of the Subject is WREDE INDUSTRIEHOLDING GMBH & CO KG, a company incorporated in GERMANY.

 

The intermediate holding company of the Subject is INTERPRINT GMBH, a company incorporated in GERMANY.

 

Former Address(es)

Address

As At Date

LOT 403, LORONG BAYUR NYAMAN, COUNTRY HEIGHTS, 43000, SELANGOR, MALAYSIA

N/A

LOT 121,JLN.AM3, ARAB MALAYSIAN IND.PARK, 71800, NEGERI SEMBILAN, MALAYSIA

N/A

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

17/04/2015

MYR 25,000,000.00

MYR 19,033,411.00

05/08/1998

MYR 25,000,000.00

MYR 17,445,042.00

15/06/1998

MYR 25,000,000.00

MYR 15,700,000.00

03/04/1998

MYR 25,000,000.00

MYR 14,900,000.00

27/09/1995

MYR 5,000,000.00

MYR 5,000,000.00

17/02/1995

MYR 5,000,000.00

MYR 2.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

PROJEKTGESELLSCHAFT INTERPRINT ROTATIONSDRUCK MBH & CO KOMMANDITGESELLSCHAFT

WESTRING 22, ARNSBERG, 59759, GERMANY.

HR-A 2612

19,033,411.00

100.00

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

------

19,033,411.00

100.00

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

=====

+ Also Director

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


Local No

Country

Company

Status

(%)

As At

442215T

MALAYSIA

ASIA-PACIFIC ENGRAVERS (MALAYSIA) SDN. BHD.

-

50.00

26/11/2014

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. TAN CHONG ENG

Address

:

142A, JALAN BU 6/2, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

5536787

New IC No

:

590410-07-5607

Date of Birth

:

10/04/1959

Nationality

:

MALAYSIAN

Date of Appointment

:

07/03/2003

 

DIRECTOR 2

 

Name Of Subject

:

THOMAS WREDE

Address

:

ZUM HERDRINGER, SCHLOSS 15, ARNSBERG, 59757, GERMANY.

IC / PP No

:

583211313

Nationality

:

GERMAN

Date of Appointment

:

23/10/2000

 

DIRECTOR 3

 

Name Of Subject

:

SIEGMUND MAIERBRUGGER

Address

:

OBD GARDEN TOWER, 12-20, JALAN DESA UTAMA, TAMAN DESA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

P6582801

Date of Appointment

:

05/11/2003

 

DIRECTOR 4

 

Name Of Subject

:

HELMUT SCHMIDT

Address

:

SCHWIEDINGHAUSERSTR 4, ARNSBERG, 59755, GERMANY.

IC / PP No

:

C8005VN2F

Nationality

:

GERMAN

Date of Appointment

:

04/09/1996

 

DIRECTOR 5

 

Name Of Subject

:

FRANK SCHUMACHER

Address

:

WOLFSKAMP 25, SUNDEN, 59846, GERMANY.

IC / PP No

:

C7T5NW08T

Nationality

:

GERMAN

Date of Appointment

:

01/11/2004



MANAGEMENT

 

 

1)

Name of Subject

:

TAN CHONG ENG

Position

:

MANAGING DIRECTOR

 

 

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, P.O. BOX 10192, LEVEL 10, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHAN SAU LENG

IC / PP No

:

A1278792

New IC No

:

690409-08-5646

Address

:

14, JALAN HELANG 3, BANDAR PUCHONG JAYA, 47170 PUCHONG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

DRESDNER BANK AG

 

2)

Name

:

MALAYAN BANKING BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

22/11/1996

NEGATIVE PLEDGE

MALAYAN BANKING BERHAD

MYR 2,700,000.00

Unsatisfied

2

28/08/1999

DEBENTURE

MALAYAN BANKING BERHAD

MYR 1,200,000.00

Unsatisfied

3

18/02/2003

DEBENTURE

DRESDNER BANK AG

-

Satisfied

4

17/04/2009

LETTER OF NEGATIVE PLEDGE

MALAYAN BANKING BERHAD

MYR 6,200,000.00

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

Overseas

:

YES



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

[

X

]

Good 31-60 Days

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA PACIFIC

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

DECORATIVE PAPERS

Ownership of premises

:

OWNED

Production Line

:

2 PRINTING MACHINES

Shifts

:

24 HOURS

 

Total Number of Employees:

 

YEAR

2015

2013

2012

2010


GROUP

N/A

N/A

N/A

N/A

COMPANY

60

55

53

100

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) designing & printing of decorative surface for commercial application. 

The Subject is principally engaged in the manufacturing of decorative paper and one of the leading decor printers decorate surface for numerous material.

The Subject is also involved in the designing and printing of decorative surfaces for:
1) Woodgrains
2) Flooring
3) Stone
4) Abstracts

The Subject produces its decorative paper in differents sizes, colours, patterns and designs all based on the customers requirements.

The products are used for residential and commercial use. 


RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA)database, but no latest development was noted in our investigation.

 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

60 799 4037/6115/4085

Current Telephone Number

:

06-7994005

Match

:

NO

Address Provided by Client

:

LOT 121, JALAN PERMATA 2, ARAB MALAYSIAN INDUSTRIAL PARK,71800,NILAI,NEGERI SEMBILAN.

Current Address

:

LOT 121, JALAN PERMATA 2, ARAB MALAYSIAN INDUSTRIAL PARK, 71800 NILAI, NEGERI SEMBILAN, 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

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

Return on Shareholder Funds

:

Acceptable

[

23.08%

]

Return on Net Assets

:

Acceptable

[

29.16%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.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

:

Unfavourable

[

72 Days

]

Debtor Ratio

:

Unfavourable

[

96 Days

]

Creditors Ratio

:

Favourable

[

29 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

[

1.81 Times

]

Current Ratio

:

Favourable

[

2.90 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

[

53.29 Times

]

Gearing Ratio

:

Favourable

[

0.07 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 :

Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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

3.2

4.0

Unemployment Rate

3.3

3.2

3.0

2.9

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

4.00

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

6.85

-

Business Loans Disbursed( % )

15.3

32.2

-

56.0

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

43,486.6

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

49,144

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

6.1

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

21,753

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

(17.7)

-

Registration of New Business ( No. )

284,598

324,761

329,895

332,723

-

Registration of New Business ( % )

5.0

14.0

2.0

1.0

-

Business Dissolved ( No. )

20,121

20,380

18,161

21,436

-

Business Dissolved ( % )

1.9

1.3

(10.9)

18.0

-

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

63.2

-

Credit Cards Spending ( % )

15.6

12.6

-

13.5

-

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)

-

-

3.0

-

Other Mining

-

-

-

46.6

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.4

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

1.4

-

Plastic Products

3.8

-

-

2.7

-

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

-

-

13.0

-

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

 

17093 : Manufacture of gummed or adhesive paper in strips or rolls and labels and wall paper

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 1995, the Subject is a Private Limited company, focusing on designing & printing of decorative surface for commercial application. 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 19,033,411 allows the Subject to expand its business more comfortably. With a strong backing from its shareholder, the Subject enjoys timely financial assistance should the needs arise. 

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 moderate size company, the Subject has a total workforce of 60 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

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. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds 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 39,170,313, the Subject should be able to maintain its business in the near terms. 

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. 

We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days. 

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)

INTERPRINT DECOR (MALAYSIA) SDN. BHD.

 

Financial Year End

2014-12-31

2013-12-31

2012-12-31

2011-12-31

2010-12-31

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

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

60,569,507

54,845,878

61,114,187

60,982,751

67,602,311

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

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

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

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

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

Total Turnover

60,569,507

54,845,878

61,114,187

60,982,751

67,602,311

Costs of Goods Sold

(43,886,806)

(39,940,248)

-

(44,913,398)

(45,811,178)

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

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

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

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

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

Gross Profit

16,682,701

14,905,630

-

16,069,353

21,791,133

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

11,209,458

10,732,255

8,074,296

10,324,768

14,143,053

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

11,209,458

10,732,255

8,074,296

10,324,768

14,143,053

Taxation

(2,168,274)

(1,834,436)

(1,458,778)

(856,072)

(3,139,682)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

9,041,184

8,897,819

6,615,518

9,468,696

11,003,371

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

20,095,718

19,197,899

22,582,381

25,113,685

23,610,314

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

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

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

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

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

As restated

20,095,718

19,197,899

22,582,381

25,113,685

23,610,314

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

29,136,902

28,095,718

29,197,899

34,582,381

34,613,685

DIVIDENDS - Ordinary (paid & proposed)

(9,000,000)

(8,000,000)

(10,000,000)

(12,000,000)

(9,500,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

20,136,902

20,095,718

19,197,899

22,582,381

25,113,685

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Others

214,352

143,577

-

171,038

136,788

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

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

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

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

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

214,352

143,577

-

171,038

136,788

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

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

-

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

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

DEPRECIATION (as per notes to P&L)

2,124,993

2,424,722

-

2,626,345

2,643,576

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

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

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

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

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

2,124,993

2,424,722

-

2,626,345

2,643,576

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

INTERPRINT DECOR (MALAYSIA) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

15,095,653

16,273,578

17,200,469

18,601,211

19,380,785

Investments

3,405,951

3,405,951

-

-

-

Loans & advances - non-current

-

542,652

-

-

-

Others

-

-

-

4,883,931

5,371,551

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

3,405,951

3,948,603

3,405,951

4,883,931

5,371,551

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

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

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

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

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

TOTAL LONG TERM ASSETS

18,501,604

20,222,181

20,606,420

23,485,142

24,752,336

Stocks

11,896,927

13,995,925

-

14,025,500

13,324,580

Trade debtors

15,952,860

14,911,819

-

13,054,939

13,119,357

Other debtors, deposits & prepayments

311,738

323,433

-

199,222

177,640

Amount due from subsidiary companies

42,365

56,238

-

6,743

97,153

Amount due from related companies

86,951

32,197

-

-

-

Cash & bank balances

2,731,763

1,379,490

-

4,687,252

2,887,644

Amount owing by customer

509,676

542,652

-

-

-

Others

-

-

-

492,660

607,122

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

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

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

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

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

TOTAL CURRENT ASSETS

31,532,280

31,241,754

30,699,419

32,466,316

30,213,496

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

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

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

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

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

TOTAL ASSET

50,033,884

51,463,935

51,305,839

55,951,458

54,965,832

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

3,471,434

4,372,237

-

6,159,951

6,678,089

Other creditors & accruals

2,300,554

2,071,671

-

22,252

29,300

Hire purchase & lease creditors

73,324

73,334

-

-

-

Short term borrowings/Term loans

2,800,000

2,800,000

-

4,000,000

-

Bill & acceptances payable

-

1,939,858

-

-

-

Amounts owing to holding company

104,979

4,748

-

-

-

Amounts owing to subsidiary companies

899,991

-

-

2,769,697

1,373,528

Provision for taxation

1,207,189

928,524

-

853,857

2,675,189

Other liabilities

-

-

-

529,909

32,630

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

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

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

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

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

TOTAL CURRENT LIABILITIES

10,857,471

12,190,372

13,043,529

14,335,666

10,788,736

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

20,674,809

19,051,382

17,655,890

18,130,650

19,424,760

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

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

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

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

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

TOTAL NET ASSETS

39,176,413

39,273,563

38,262,310

41,615,792

44,177,096

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

19,033,411

19,033,411

19,033,411

19,033,411

19,033,411

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

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

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

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

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

TOTAL SHARE CAPITAL

19,033,411

19,033,411

19,033,411

19,033,411

19,033,411

Retained profit/(loss) carried forward

20,136,902

20,095,718

19,197,899

22,582,381

25,113,685

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

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

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

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

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

TOTAL RESERVES

20,136,902

20,095,718

19,197,899

22,582,381

25,113,685

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

39,170,313

39,129,129

38,231,310

41,615,792

44,147,096

Hire purchase creditors

6,100

79,434

-

-

-

Deferred taxation

-

65,000

-

-

30,000

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

6,100

144,434

31,000

-

30,000

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

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

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

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

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

39,176,413

39,273,563

38,262,310

41,615,792

44,177,096

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

INTERPRINT DECOR (MALAYSIA) SDN. BHD.

 

TYPES OF FUNDS

Cash

2,731,763

1,379,490

-

4,687,252

2,887,644

Net Liquid Funds

2,731,763

(560,368)

-

4,687,252

2,887,644

Net Liquid Assets

8,777,882

5,055,457

17,655,890

4,105,150

6,100,180

Net Current Assets/(Liabilities)

20,674,809

19,051,382

17,655,890

18,130,650

19,424,760

Net Tangible Assets

39,176,413

39,273,563

38,262,310

41,615,792

44,177,096

Net Monetary Assets

8,771,782

4,911,023

17,624,890

4,105,150

6,070,180

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

11,423,810

10,875,832

-

10,495,806

14,279,841

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

13,548,803

13,300,554

-

13,122,151

16,923,417

BALANCE SHEET ITEMS

Total Borrowings

2,879,424

4,892,626

-

4,000,000

0

Total Liabilities

10,863,571

12,334,806

13,074,529

14,335,666

10,818,736

Total Assets

50,033,884

51,463,935

51,305,839

55,951,458

54,965,832

Net Assets

39,176,413

39,273,563

38,262,310

41,615,792

44,177,096

Net Assets Backing

39,170,313

39,129,129

38,231,310

41,615,792

44,147,096

Shareholders' Funds

39,170,313

39,129,129

38,231,310

41,615,792

44,147,096

Total Share Capital

19,033,411

19,033,411

19,033,411

19,033,411

19,033,411

Total Reserves

20,136,902

20,095,718

19,197,899

22,582,381

25,113,685

LIQUIDITY (Times)

Cash Ratio

0.25

0.11

-

0.33

0.27

Liquid Ratio

1.81

1.41

-

1.29

1.57

Current Ratio

2.90

2.56

2.35

2.26

2.80

WORKING CAPITAL CONTROL (Days)

Stock Ratio

72

93

-

84

72

Debtors Ratio

96

99

-

78

71

Creditors Ratio

29

40

-

50

53

SOLVENCY RATIOS (Times)

Gearing Ratio

0.07

0.13

-

0.10

0

Liabilities Ratio

0.28

0.32

0.34

0.34

0.25

Times Interest Earned Ratio

53.29

75.75

-

61.37

104.39

Assets Backing Ratio

2.06

2.06

2.01

2.19

2.32

PERFORMANCE RATIO (%)

Operating Profit Margin

18.51

19.57

13.21

16.93

20.92

Net Profit Margin

14.93

16.22

10.82

15.53

16.28

Return On Net Assets

29.16

27.69

21.10

25.22

32.32

Return On Capital Employed

29.11

27.64

21.10

25.22

32.32

Return On Shareholders' Funds/Equity

23.08

22.74

17.30

22.75

24.92

Dividend Pay Out Ratio (Times)

1.00

0.90

1.51

1.27

0.86

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

-

0

0



FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.79

UK Pound

1

Rs.99.95

Euro

1

Rs.71.55

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TRU

 

               

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.