MIRA INFORM REPORT

 

 

Report No. :

340279

Report Date :

11.09.2015

 

IDENTIFICATION DETAILS

 

Name :

SSN MEDICAL PRODUCTS SDN. BHD.

 

 

Formerly Known As :

SSN POLYMERS (M) SDN BHD

 

 

Registered Office :

74a, Jalan Burhanuddin Helmi, Taman Tun Dr. Ismail, 60000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

07.08.1997

 

 

Com. Reg. No.:

441893-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of condoms and gloves.

 

 

No. of Employee :

200 [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 :

Slow but correct

 

 

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.

:

441893-K

COMPANY NAME

:

SSN MEDICAL PRODUCTS SDN. BHD.

FORMER NAME

:

SSN POLYMERS (M) SDN BHD (17/08/1999)

INCORPORATION DATE

:

07/08/1997

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

74A, JALAN BURHANUDDIN HELMI, TAMAN TUN DR. ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

1, JALAN 51/203, OFF JALAN TANDANG, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-77812829

FAX.NO.

:

03-77812830

EMAIL

:

INFORMATION@SSNMEDICAL.COM

WEB SITE

:

WWW.SSNMEDICAL.COM

CONTACT PERSON

:

CLINTON ANG TECK LEONG ( CEO )

INDUSTRY CODE

:

22192

PRINCIPAL ACTIVITY

:

MANUFACTURING OF CONDOMS AND GLOVES

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO 
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 4,525,007.00 DIVIDED INTO 
ORDINARY SHARES 4,525,007 CASH OF MYR 1.00 EACH.

SALES

:

MYR 24,146,389 [2013]

NET WORTH

:

MYR 7,267,764 [2013]

STAFF STRENGTH

:

200 [2015]

BANKER (S)

:

UNITED OVERSEAS BANK (MALAYSIA) BHD
RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

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) manufacturing of condoms and gloves.

 

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

29/11/2014

MYR 10,000,000.00

MYR 4,525,007.00

28/03/2012

MYR 5,000,000.00

MYR 3,315,007.00

24/10/2011

MYR 5,000,000.00

MYR 2,465,007.00

18/05/2007

MYR 5,000,000.00

MYR 1,700,002.00

08/10/2004

MYR 5,000,000.00

MYR 1,150,002.00

24/03/2000

MYR 5,000,000.00

MYR 800,002.00

07/08/1997

MYR 100,000.00

MYR 2.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. ANG TECK LEONG +

18A, BUKIT LEDANG, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

740605-14-6031 A2677309

2,320,507.00

51.28

MR. RAVENDRAN A/L UTHRAPATHY +

3, JALAN SS 1/18, KAMPUNG TUNKU, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

620415-10-6737

144,500.00

3.19

MR. LIM KIAT YEE

144, JALAN SS 2/4, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

581110-10-5443 5571817

2,060,000.00

45.52

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

------

4,525,007.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. RAVENDRAN A/L UTHRAPATHY

Address

:

3, JALAN SS 1/18, KAMPUNG TUNKU, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

New IC No

:

620415-10-6737

Date of Birth

:

15/04/1962

Nationality

:

MALAYSIAN

Date of Appointment

:

05/12/2011

 

DIRECTOR 2

 

Name Of Subject

:

MR. ANG TECK LEONG

Address

:

18A, BUKIT LEDANG, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A2677309

New IC No

:

740605-14-6031

Date of Birth

:

05/06/1974

Nationality

:

MALAYSIAN

Date of Appointment

:

07/07/2008




MANAGEMENT

 

 

 

1)

Name of Subject

:

CLINTON ANG TECK LEONG

Position

:

CEO

 

2)

Name of Subject

:

SURESH

Position

:

HUMAN RESOURCE MANAGER

 

 

 

AUDITOR

 

Auditor

:

CHANTHIRAN & CO

Auditor' Address

:

C-1-6, BLOK C, MEGAN AVENUE 1, JALAN TUN RAZAK, 50400 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. GOH HUI CHIA

IC / PP No

:

5625392

New IC No

:

590602-04-5410

Address

:

9, JALAN SS21/13, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

2)

Name

:

RHB BANK BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

18/11/2003

N/A

CIMB BANK BERHAD

MYR 76,000.00

Satisfied

2

03/07/2007

1ST LEGAL CHARGE UNDER NATIONAL CODE

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 1,277,367.00

Unsatisfied

3

03/07/2007

2ND LEGAL CHARGE UNDER NATIONAL LAND CODE

UNITED OVERSEAS BANK (MALAYSIA) BHD

-

Unsatisfied

4

03/07/2007

DEED OF ASSIGNMENT OF RENTAL PROCEEDS

UNITED OVERSEAS BANK (MALAYSIA) BHD

-

Unsatisfied

5

07/01/2015

LETTER OF SET-OFF

RHB BANK BHD

-

Unsatisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

No blacklisted record & debt collection case was found in our defaulters' databank.

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

95%

Overseas

:

YES

Percentage

:

5%

Import Countries

:

ASIA



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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

AUSTRALIA

SINGAPORE

ASIA

EUROPE

UNITED STATES

Credit Term

:

30 - 60 DAYS

Payment Mode

:

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

Type of Customer

:

DEALERS,DISTRIBUTORS

 

OPERATIONS

 

Products manufactured

:

CONDOMS AND GLOVES

Product Brand Name

:

CORAL, SURGIGLOVE

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

Total Number of Employees:

 

YEAR

2015

2014

2012

2011

2010

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

200

200

180

180

180

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of condoms and gloves. 

The Subject is engaged in the manufacturing of natural male latex condoms.

Besides this, the Subjct also manufactures rubber gloves.

The Subject aims to be an important global player that not only markets condoms through the commercial avenue but also one that supports NGOs and Social Marketing Organizations.

The Subject employs the latest innovations in production technology, based on German and Korean designs.

The condoms are individually tested on the electronic testing machines, which incorporate Programmable Logic Control (PLC) automation to accurately reject those with holes, up to micron size levels. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-77812829

Match

:

N/A

Address Provided by Client

:

1, JALAN 51/203, OFF JALAN TANDANG,46050,PETALING JAYA,SELANGOR.

Current Address

:

1, JALAN 51/203, OFF JALAN TANDANG, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 8th September 2015 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

:

Decreased

[

2009 - 2013

]

Return on Shareholder Funds

:

Acceptable

[

14.14%

]

Return on Net Assets

:

Acceptable

[

14.65%

]

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject's profit fell sharply because of the high operating costs incurred. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Unfavourable

[

104 Days

]

Debtor Ratio

:

Favourable

[

51 Days

]

Creditors Ratio

:

Favourable

[

43 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. 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

:

Unfavourable

[

0.79 Times

]

Current Ratio

:

Unfavourable

[

1.49 Times

]

A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

Interest Cover

:

Unfavourable

[

2.09 Times

]

Gearing Ratio

:

Favourable

[

0.65 Times

]

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. 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 :

The Subject's performance deteriorated over the years with lower turnover and profit. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. 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

3.2

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

22192 : Manufacture of rubber gloves

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 1997, the Subject is a Private Limited company, focusing on manufacturing of condoms and gloves. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. A paid up capital of MYR 4,525,007 allows the Subject to expand its business more comfortably. We considered that the Subject's business position in the market is much dependent on the efforts of its directors. 

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 200 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. 

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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 7,267,764, 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. 

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry. 

Based on the above condition, we recommend credit be granted to the Subject normally.

 



PROFIT AND LOSS ACCOUNT

 

 

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

 

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

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

24,146,389

25,475,590

26,358,566

27,249,648

14,223,666

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

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

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

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

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

Total Turnover

24,146,389

25,475,590

26,358,566

27,249,648

14,223,666

Costs of Goods Sold

(20,227,498)

(21,301,074)

-

(23,133,292)

(12,414,542)

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

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

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

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

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

Gross Profit

3,918,891

4,174,516

-

4,116,356

1,809,124

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

719,689

1,252,923

1,528,562

2,238,355

651,346

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

719,689

1,252,923

1,528,562

2,238,355

651,346

Taxation

308,200

(856,000)

(342,000)

(459,300)

-

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,027,889

396,923

1,186,562

1,779,055

651,346

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

1,714,868

1,317,945

131,383

(1,647,672)

(2,299,018)

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

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

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

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

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

As restated

1,714,868

1,317,945

131,383

(1,647,672)

(2,299,018)

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

2,742,757

1,714,868

1,317,945

131,383

(1,647,672)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,742,757

1,714,868

1,317,945

131,383

(1,647,672)

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

125,142

121,780

-

178,545

208,768

Bankers' acceptance

-

-

-

-

5,312

Hire purchase

5,569

11,692

-

4,590

1,668

Lease interest

-

1,739

-

8,262

5,135

Term loan / Borrowing

418,485

145,657

-

473,590

97,389

Trust receipts

110,015

107,671

-

91,114

103,327

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

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

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

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

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

659,211

388,539

-

756,101

421,599

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

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

-

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

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

DEPRECIATION (as per notes to P&L)

321,635

433,074

-

437,725

311,019

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

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

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

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

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

321,635

433,074

-

437,725

311,019

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

4,597,546

4,856,867

4,587,539

4,938,868

5,226,291

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

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

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

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

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

TOTAL LONG TERM ASSETS

4,597,546

4,856,867

4,587,539

4,938,868

5,226,291

Stocks

6,855,058

7,183,453

-

4,714,162

1,612,759

Trade debtors

3,381,560

2,550,303

-

2,624,623

1,710,474

Other debtors, deposits & prepayments

4,336,634

3,422,766

-

1,928,692

1,312,917

Short term deposits

-

-

-

-

714,736

Amount due from director

-

172,812

-

-

82,096

Cash & bank balances

90,865

730,073

-

166,951

53,416

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

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

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

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

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

TOTAL CURRENT ASSETS

14,664,117

14,059,407

11,740,638

9,434,428

5,486,398

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

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

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

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

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

TOTAL ASSET

19,261,663

18,916,274

16,328,177

14,373,296

10,712,689

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

2,408,166

2,559,342

-

2,526,898

2,419,256

Other creditors & accruals

3,372,894

3,431,070

-

4,112,507

2,140,264

Hire purchase & lease creditors

47,004

40,004

-

25,722

25,722

Bank overdraft

1,379,739

1,387,694

-

2,907,350

3,545,193

Short term borrowings/Term loans

360,000

356,909

-

116,909

127,613

Other borrowings

999,900

999,900

-

1,028,745

1,009,462

Amounts owing to director

104,664

-

-

101,006

-

Provision for taxation

1,180,100

1,017,300

-

459,300

-

Lease payables

-

-

-

42,486

59,952

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

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

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

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

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

TOTAL CURRENT LIABILITIES

9,852,467

9,792,219

10,118,800

11,320,923

9,327,462

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

4,811,650

4,267,188

1,621,838

(1,886,495)

(3,841,064)

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

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

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

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

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

TOTAL NET ASSETS

9,409,196

9,124,055

6,209,377

3,052,373

1,385,227

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

4,525,007

4,525,007

2,465,007

1,700,002

1,700,002

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

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

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

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

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

TOTAL SHARE CAPITAL

4,525,007

4,525,007

2,465,007

1,700,002

1,700,002

Retained profit/(loss) carried forward

2,742,757

1,714,868

1,317,945

131,383

(1,647,672)

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

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

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

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

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

TOTAL RESERVES

2,742,757

1,714,868

1,317,945

131,383

(1,647,672)

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

7,267,764

6,239,875

3,782,952

1,831,385

52,330

Long term loans

1,839,524

2,097,519

-

1,160,458

1,210,731

Lease obligations

-

-

-

2,710

38,624

Hire purchase creditors

132,908

146,661

-

57,820

83,542

Deferred taxation

169,000

640,000

-

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

2,141,432

2,884,180

2,426,425

1,220,988

1,332,897

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

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

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

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

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

9,409,196

9,124,055

6,209,377

3,052,373

1,385,227

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

90,865

730,073

-

166,951

768,152

Net Liquid Funds

(1,288,874)

(657,621)

-

(2,740,399)

(2,777,041)

Net Liquid Assets

(2,043,408)

(2,916,265)

1,621,838

(6,600,657)

(5,453,823)

Net Current Assets/(Liabilities)

4,811,650

4,267,188

1,621,838

(1,886,495)

(3,841,064)

Net Tangible Assets

9,409,196

9,124,055

6,209,377

3,052,373

1,385,227

Net Monetary Assets

(4,184,840)

(5,800,445)

(804,587)

(7,821,645)

(6,786,720)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

1,378,900

1,641,462

-

2,994,456

1,072,945

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

1,700,535

2,074,536

-

3,432,181

1,383,964

BALANCE SHEET ITEMS

Total Borrowings

4,759,075

5,028,687

-

5,299,714

6,040,887

Total Liabilities

11,993,899

12,676,399

12,545,225

12,541,911

10,660,359

Total Assets

19,261,663

18,916,274

16,328,177

14,373,296

10,712,689

Net Assets

9,409,196

9,124,055

6,209,377

3,052,373

1,385,227

Net Assets Backing

7,267,764

6,239,875

3,782,952

1,831,385

52,330

Shareholders' Funds

7,267,764

6,239,875

3,782,952

1,831,385

52,330

Total Share Capital

4,525,007

4,525,007

2,465,007

1,700,002

1,700,002

Total Reserves

2,742,757

1,714,868

1,317,945

131,383

(1,647,672)

LIQUIDITY (Times)

Cash Ratio

0.01

0.07

-

0.01

0.08

Liquid Ratio

0.79

0.70

-

0.42

0.42

Current Ratio

1.49

1.44

1.16

0.83

0.59

WORKING CAPITAL CONTROL (Days)

Stock Ratio

104

103

-

63

41

Debtors Ratio

51

37

-

35

44

Creditors Ratio

43

44

-

40

71

SOLVENCY RATIOS (Times)

Gearing Ratio

0.65

0.81

-

2.89

115.44

Liabilities Ratio

1.65

2.03

3.32

6.85

203.71

Times Interest Earned Ratio

2.09

4.22

-

3.96

2.54

Assets Backing Ratio

2.08

2.02

2.52

1.80

0.81

PERFORMANCE RATIO (%)

Operating Profit Margin

2.98

4.92

5.80

8.21

4.58

Net Profit Margin

4.26

1.56

4.50

6.53

4.58

Return On Net Assets

14.65

17.99

24.62

98.10

77.46

Return On Capital Employed

12.73

15.56

24.62

50.03

21.65

Return On Shareholders' Funds/Equity

14.14

6.36

31.37

97.14

1,244.69

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.66.58

UK Pound

1

Rs.102.29

Euro

1

Rs.74.71

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 


 

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.