MIRA INFORM REPORT

 

 

Report No. :

345671

Report Date :

21.10.2015

 

IDENTIFICATION DETAILS

 

Name :

MEGAFOAM CONTAINERS ENTERPRISE SDN. BHD.

 

 

Registered Office :

271, Room A, Jalan Maarof, Bangsar, 59000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

14.11.1994

 

 

Com. Reg. No.:

323349-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the manufacture of plastic foam products.

 

 

No. of Employees :

300 [2015]

 

 

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.

:

323349-M

COMPANY NAME

:

MEGAFOAM CONTAINERS ENTERPRISE SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

14/11/1994

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

271, ROOM A, JALAN MAAROF, BANGSAR, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 6105, JALAN HAJI SALLEH, OFF JALAN MERU, 41050 KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-33928018

FAX.NO.

:

03-33928200

EMAIL

:

ENQUIRY@MEGAFOAM.COM

WEB SITE

:

WWW.MEGAFOAM.COM

CONTACT PERSON

:

IRENE WONG FOONG HOW ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

22203

PRINCIPAL ACTIVITY

:

MANUFACTURE OF PLASTIC FOAM PRODUCTS

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 300,000.00 DIVIDED INTO 
ORDINARY SHARES 300,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 33,626,394 [2014]

NET WORTH

:

MYR 22,748,228 [2014]

 

 

 

STAFF STRENGTH

:

300 [2015]

BANKER (S)

:

RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

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) manufacture of plastic foam products.

 

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

 

The immediate holding company of the Subject is FOAM POLYSTYRENE ENTERPRISE SDN. BHD., a company incorporated in MALAYSIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/06/2014

MYR 500,000.00

MYR 300,000.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

FOAM POLYSTYRENE ENTERPRISE SDN. BHD.

LOT 6105, JALAN HAJI SALLEH, OFF JALAN MERU, 41050 KLANG, SELANGOR, MALAYSIA.

106637D

300,000.00

100.00

 

 

 

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

------

 

 

 

300,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 





DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

YAP MAU PHAY

Address

:

1885, PADANG STREET, JINJANG NORTH, 52000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5485249

New IC No

:

581106-10-6005

Date of Birth

:

06/11/1958

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

14/11/1994

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. YAP BEO SING

Address

:

LOT 3, JALAN LADA HITAM 1, LORONG 16/12A, SEKSYEN 16, 40200 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

4876841

New IC No

:

550103-10-5785

Date of Birth

:

03/01/1955

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

14/11/1994

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MS. WONG FOONG HOW

Address

:

1885, PADANG STREET, JINJANG NORTH, 52000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5990418

New IC No

:

601102-08-5206

Date of Birth

:

02/11/1960

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

14/11/1994

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

YAP SEONG ONN

Address

:

1885, PADANG STREET, JINJANG NORTH, 52000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

4417372

New IC No

:

530203-10-5813

Date of Birth

:

03/02/1953

 

 

 

 

 

 

Date of Appointment

:

14/11/1994

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

IRENE WONG FOONG HOW

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

YAP YEN TING

 

Position

:

FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

YAP YEN YEE

 

Position

:

EXPORT MANAGER

 

 

 

 

 

AUDITOR

 

Auditor

:

GUAN & ASSOCIATES

Auditor' Address

:

271, ROOM B, JALAN MAAROF, BANGSAR, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. TAN KIM HUI

 

IC / PP No

:

A3438796

 

New IC No

:

760613-01-6729

 

Address

:

271, JALAN MAAROF, BANGSAR, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. ALICE NG LEE FONG

 

IC / PP No

:

A0671072

 

New IC No

:

670409-01-6036

 

Address

:

271, JALAN MAAROF, BANGSAR, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

RHB BANK BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

27/02/1995

N/A

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD

MYR 422,000.00

Satisfied

2

09/03/1999

DEBENTURE

RHB BANK BERHAD

MYR 615,000.00

Unsatisfied

3

29/11/2000

SECOND DEBENTURE

RHB BANK BERHAD

MYR 600,000.00

Unsatisfied

4

17/01/2001

N/A

BANK INDUSTRI MALAYSIA TEKNOLOGI BERHAD

MYR 500,000.00

Satisfied

5

05/02/2001

SPECIFIC DEBENTURE

RHB BANK BERHAD

MYR 600,000.00

Unsatisfied

6

13/12/2001

N/A

BANK INDUSTRI TEKNOLOGI MALAYSIA BERHAD

MYR 460,000.00

Satisfied

7

05/09/2002

N/A

BANK INDUSTRI TEKNOLOGI MALAYSIA BERHAD

MYR 750,000.00

Satisfied

8

03/01/2003

SPECIFIC DEBENTURE

RHB BANK BERHAD

MYR 520,000.00

Unsatisfied

9

04/06/2003

DEBENTURE

RHB BANK BERHAD

MYR 1,290,000.00

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

[

 

]

 

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

:

ASIA

AUSTRALIA

MIDDLE EAST

Credit Term

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
LETTER OF CREDIT (LC)
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

BOWLS, CONTAINERS, CUPS (FOAM & PLASTIC), LIDS (FOAM & PLASTIC)

 

 

 

Product Brand Name

:

MEGAFOAM

 

 

 

Competitor(s)

:

FOAM-PACKAGING INDUSTRIES SDN BHD

 

 

 

 

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

:

LEASED/RENTED

 

Shifts

:

2 SHIFTS

 

 

 

 

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

300

250

250

300

200

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacture of plastic foam products. 

The Subject is manufacturer of single-use food service products for serving food and beverages made from plastic and foam.

The Subject's products and services are includes as follows:

* Thermal Cup range include a selection of matching lids and offer good thermal insulation properties that keep hot food warm and cold beverages chilled.

* Juice Cup range with fill capacity from 6oz (170ml) to 22oz (620ml) offers good choice for ice and cold drinks.

* Portion Cup with fill capacity 0.5oz (15ml) / 1oz (30ml) / 1.5oz (45ml) / 2oz (55ml) / 4oz (120ml) / 5oz (140ml).

* Customised Printing with fancy and colourful patterns that can be printed onto cups, containers and bowls for brand promotions.

* Customised Design Products with competitive tooling charge and unit cost.

* Ice-Cream Boxes with Internal Lining/ Cool Boxes, paper cup lids 

* Custom Pack Private Branding.

The Subject utilizes advanced automated and semi-automated machines to ensure production of high quality products. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-33928018

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 6105, JALAN HAJI SALLEH, OFF JALAN MERU,41050,KLANG,SELANGOR.

Current Address

:

LOT 6105, JALAN HAJI SALLEH, OFF JALAN MERU, 41050 KLANG, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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


FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2010 - 2014

]

 

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

 

Return on Shareholder Funds

:

Unfavourable

[

6.69%

]

 

Return on Net Assets

:

Unfavourable

[

8.73%

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject's management have been efficient in controlling its operating costs. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Favourable

[

5.04 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Favourable

[

0.23 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject has a low liabilities ratio. It's liabilities were low and was not vulnerable to the financial risk.

 

 

 

 

 

 

 

Overall financial condition of the Subject : 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 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

 

 

 

 



INDUSTRY ANALYSIS

 

MSIC CODE

22203 : Manufacture of plastic articles for the packing of goods

 

 

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 1994, the Subject is a Private Limited company, focusing on manufacture of plastic foam 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. We noted that the issued and paid up capital of the Subject stands at MYR 300,000. However, with a strong backing from its holding company, 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. The Subject is a fairly large and rapidly growing company with over 300 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

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. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. A low liabilities ratio has minimised the Subject's financial risk. Given a positive net worth standing at MYR 22,748,228, 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. 

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)

MEGAFOAM CONTAINERS ENTERPRISE 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

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

33,626,394

33,622,557

29,739,462

27,494,449

25,987,304

 

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

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

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

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

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

Total Turnover

33,626,394

33,622,557

29,739,462

27,494,449

25,987,304

Costs of Goods Sold

-

(28,643,952)

(26,668,857)

(24,858,392)

(21,643,213)

 

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

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

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

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

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

Gross Profit

-

4,978,605

3,070,605

2,636,057

4,344,091

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

1,994,992

1,932,876

(360,383)

(442,390)

830,871

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,994,992

1,932,876

(360,383)

(442,390)

830,871

Taxation

(474,143)

(80,109)

(330,830)

(17,984)

(86,500)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,520,849

1,852,767

(691,213)

(460,374)

744,371

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

20,927,379

19,074,612

19,765,825

20,226,199

19,481,828

 

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

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

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

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

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

As restated

20,927,379

19,074,612

19,765,825

20,226,199

19,481,828

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

22,448,228

20,927,379

19,074,612

19,765,825

20,226,199

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

22,448,228

20,927,379

19,074,612

19,765,825

20,226,199

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

-

27,065

27,058

41,872

91,029

 

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

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

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

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

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

 

-

27,065

27,058

41,872

91,029

 

-

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

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

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

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

 

 

 

 

 

 

DEPRECIATION (as per notes to P&L)

-

1,106,564

1,832,715

2,137,314

2,269,516

AMORTIZATION

-

100

100

100

100

 

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

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

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

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

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

 

-

1,106,664

1,832,815

2,137,414

2,269,616

 

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

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

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

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

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

 

 

 

 

 

 

 

BALANCE SHEET

 

MEGAFOAM CONTAINERS ENTERPRISE SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

1,763,022

2,546,777

3,338,403

3,897,375

5,175,239

 

 

 

 

 

 

Trademarks

-

400

500

600

700

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

-

400

500

600

700

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

1,763,022

2,547,177

3,338,903

3,897,975

5,175,939

 

 

 

 

 

 

Stocks

-

3,499,350

4,046,786

2,653,061

3,772,928

Contract work-in-progress

-

25,589

37,588

-

-

Trade debtors

-

2,424,202

2,486,394

2,651,668

1,769,114

Other debtors, deposits & prepayments

-

268,914

272,674

368,110

347,658

Short term deposits

-

1,771,358

1,235,198

1,198,428

1,145,227

Amount due from holding company

-

6,948,982

7,571,739

6,360,724

5,803,276

Cash & bank balances

-

7,451,449

3,277,478

4,949,507

6,115,611

Others

-

1,498

306,795

517,125

266,231

 

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

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

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

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

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

TOTAL CURRENT ASSETS

26,301,485

22,391,342

19,234,652

18,698,623

19,220,045

 

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

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

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

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

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

TOTAL ASSET

28,064,507

24,938,519

22,573,555

22,596,598

24,395,984

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

2,493,937

1,735,847

1,259,608

2,352,673

Other creditors & accruals

-

583,592

547,502

533,676

294,447

Hire purchase & lease creditors

-

170,387

282,019

314,249

603,344

Amounts owing to director

-

226,221

226,221

226,221

453,415

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

5,216,163

3,474,137

2,791,589

2,333,754

3,703,879

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

21,085,322

18,917,205

16,443,063

16,364,869

15,516,166

 

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

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

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

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

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

TOTAL NET ASSETS

22,848,344

21,464,382

19,781,966

20,262,844

20,692,105

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

300,000

300,000

300,000

300,000

300,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

300,000

300,000

300,000

300,000

300,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

22,448,228

20,927,379

19,074,612

19,765,825

20,226,199

 

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

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

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

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

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

TOTAL RESERVES

22,448,228

20,927,379

19,074,612

19,765,825

20,226,199

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

22,748,228

21,227,379

19,374,612

20,065,825

20,526,199

 

 

 

 

 

 

Hire purchase creditors

-

237,003

407,354

197,019

165,906

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

100,116

237,003

407,354

197,019

165,906

 

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

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

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

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

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

 

22,848,344

21,464,382

19,781,966

20,262,844

20,692,105

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

MEGAFOAM CONTAINERS ENTERPRISE SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

-

9,222,807

4,512,676

6,147,935

7,260,838

Net Liquid Funds

-

9,222,807

4,512,676

6,147,935

7,260,838

Net Liquid Assets

21,085,322

15,417,855

12,396,277

13,711,808

11,743,238

Net Current Assets/(Liabilities)

21,085,322

18,917,205

16,443,063

16,364,869

15,516,166

Net Tangible Assets

22,848,344

21,463,982

19,781,466

20,262,244

20,691,405

Net Monetary Assets

20,985,206

15,180,852

11,988,923

13,514,789

11,577,332

PROFIT & LOSS ITEMS

 

 

 

 

 

Earnings Before Interest & Tax (EBIT)

-

1,959,941

(333,325)

(400,518)

921,900

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

-

3,066,605

1,499,490

1,736,896

3,191,516

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

-

407,390

689,373

511,268

769,250

Total Liabilities

5,316,279

3,711,140

3,198,943

2,530,773

3,869,785

Total Assets

28,064,507

24,938,519

22,573,555

22,596,598

24,395,984

Net Assets

22,848,344

21,464,382

19,781,966

20,262,844

20,692,105

Net Assets Backing

22,748,228

21,227,379

19,374,612

20,065,825

20,526,199

Shareholders' Funds

22,748,228

21,227,379

19,374,612

20,065,825

20,526,199

Total Share Capital

300,000

300,000

300,000

300,000

300,000

Total Reserves

22,448,228

20,927,379

19,074,612

19,765,825

20,226,199

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

-

2.65

1.62

2.63

1.96

Liquid Ratio

-

5.44

5.44

6.88

4.17

Current Ratio

5.04

6.45

6.89

8.01

5.19

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

-

38

50

35

53

Debtors Ratio

-

26

31

35

25

Creditors Ratio

-

32

24

18

40

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

-

0.02

0.04

0.03

0.04

Liabilities Ratio

0.23

0.17

0.17

0.13

0.19

Times Interest Earned Ratio

-

72.42

(12.32)

(9.57)

10.13

Assets Backing Ratio

76.16

71.55

65.94

67.54

68.97

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

5.93

5.75

(1.21)

(1.61)

3.20

Net Profit Margin

4.52

5.51

(2.32)

(1.67)

2.86

Return On Net Assets

8.73

9.13

(1.68)

(1.98)

4.46

Return On Capital Employed

8.73

9.06

(1.66)

(1.95)

4.33

Return On Shareholders' Funds/Equity

6.69

8.73

(3.57)

(2.29)

3.63

Dividend Pay Out Ratio (Times)

-

0

0

0

0

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

-

0

0

0

0



 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.89

UK Pound

1

Rs.100.39

Euro

1

Rs.73.52

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TPT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

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

 

Unlimited

 

71-85

Aa

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

 

Large

 

56-70

A

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

 

Fairly Large

 

41-55

Ba

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

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

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

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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

 

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

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

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

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