MIRA INFORM REPORT

 

 

Report No. :

340806

Report Date :

15.09.2015

 

IDENTIFICATION DETAILS

 

Name :

DREAM MAKERS BIOPHARMA (M) SDN. BHD.

 

 

Formerly Known As :

DREAM-MAKERS SDN BHD

 

 

Registered Office :

22, Jalan Dato Sheikh Ahmad, Ground Floor, 70000 Seremban, Negeri Sembilan,

 

 

Country :

Malaysia.

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

16.10.1982

 

 

Com. Reg. No.:

91517-X

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing of veterinary products.

 

 

No. of Employee :

20 [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.

:

91517-X

COMPANY NAME

:

DREAM MAKERS BIOPHARMA (M) SDN. BHD.

FORMER NAME

:

DREAM-MAKERS SDN BHD (29/04/2013)

INCORPORATION DATE

:

16/10/1982

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

22, JALAN DATO SHEIKH AHMAD, GROUND FLOOR, 70000 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 3, JALAN INDUSTRI 2, KAWASAN PERUSAHAAN DIOH, 72000 KUALA PILAH, NEGERI SEMBILAN, MALAYSIA.

TEL.NO.

:

03-79565723

FAX.NO.

:

03-4812387

CONTACT PERSON

:

SIOW CHUN PAU ( MANAGING DIRECTOR )

INDUSTRY CODE

:

10800

PRINCIPAL ACTIVITY

:

MANUFACTURING OF VETERINARY PRODUCTS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,744,000.00 DIVIDED INTO 
ORDINARY SHARES 642,002 CASH AND 2,101,998 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 21,674,407 [2014]

NET WORTH

:

MYR 6,673,938 [2014]

STAFF STRENGTH

:

20 [2015]

BANKER (S)

:

ALLIANCE BANK MALAYSIA BHD
CIMB BANK BHD
PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

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 veterinary products.

 

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/06/2014

MYR 5,000,000.00

MYR 2,744,000.00

18/09/1996

MYR 5,000,000.00

MYR 1,994,002.00

21/12/1993

MYR 2,000,000.00

MYR 1,562,002.00

04/07/1990

MYR 200,000.00

MYR 72,002.00

04/04/1990

MYR 200,000.00

MYR 62,002.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. SIOW KIAN KOK @ SIW KIN KOOIK +

LOT 3, KAWASAN PERUSAHAAN DIOH, 72000 KUALA PILAH, NEGERI SEMBILAN, MALAYSIA.

370420-05-5189 1641283

1,490,000.00

54.30

MR. SIOW CHUN PAU +

LOT 3,KAW.PERUSAHAAN DIOH, 72000 KUALA PILAH, NEGERI SEMBILAN, MALAYSIA.

620606-05-5581 6742318

624,500.00

22.76

MR. SIOW SENG YOONG +

LOT 3,KAWASAN PERUSAHAAN DIOH, KUALA PILAH, NEGERI SEMBILAN, MALAYSIA.

661020-06-5337 A0508650

624,499.00

22.76

MS. FOO KEE LIAN

LOT 3, KAWASAN PERUSAHAAN DIOH, 72000 KUALA PILAH, NEGERI SEMBILAN, MALAYSIA.

360320-05-5166 1642562

5,001.00

0.18

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

------

2,744,000.00

100.00

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

=====

+ Also Director

 

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


Local No

Country

Company

Status

(%)

As At

49047D

MALAYSIA

DIAMOND CHEMICAL INDUSTRIAL SDN. BHD.

-

90.67

26/11/2014


DIRECTORS

 

 

DIRECTOR 1

 

Name Of Subject

:

MR. SIOW SENG YOONG

Address

:

LOT 3,KAWASAN PERUSAHAAN DIOH, KUALA PILAH, NEGERI SEMBILAN, MALAYSIA.

IC / PP No

:

A0508650

New IC No

:

661020-06-5337

Date of Birth

:

20/10/1966

Nationality

:

MALAYSIAN

Date of Appointment

:

30/06/1988

 

DIRECTOR 2

 

Name Of Subject

:

MR. SIOW CHUN PAU

Address

:

LOT 3,KAW.PERUSAHAAN DIOH, 72000 KUALA PILAH, NEGERI SEMBILAN, MALAYSIA.

IC / PP No

:

6742318

New IC No

:

620606-05-5581

Date of Birth

:

06/06/1962

Nationality

:

MALAYSIAN

Date of Appointment

:

30/06/1988

 

DIRECTOR 3

 

Name Of Subject

:

MR. SIOW KIAN KOK @ SIW KIN KOOIK

Address

:

LOT 3, KAWASAN PERUSAHAAN DIOH, 72000 KUALA PILAH, NEGERI SEMBILAN, MALAYSIA.

IC / PP No

:

1641283

New IC No

:

370420-05-5189

Date of Birth

:

20/04/1937

Nationality

:

MALAYSIAN

Date of Appointment

:

15/05/2013




MANAGEMENT

 

 

 

1)

Name of Subject

:

SIOW CHUN PAU

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

LIM POH WAN

Position

:

HUMAN RESOURCE MANAGER

 

 

 

AUDITOR

 

Auditor

:

LEW POW ONN & CO.

Auditor' Address

:

21 & 22, JALAN DATO' SHEIKH AHMAD, 2ND FLOOR, 70000 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LEONG WAI TENG

IC / PP No

:

7208564

New IC No

:

640203-05-5032

Address

:

35, JALAN DR. KRISHNAN, 70000 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

 

2)

Company Secretary

:

MR. GAN SUN HAI

IC / PP No

:

8154214

New IC No

:

541225-01-5425

Address

:

41 JALAN UTAMA, TAMAN SAKEH, 84000 MUAR, JOHOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

ALLIANCE BANK MALAYSIA BHD

 

2)

Name

:

CIMB BANK BHD

 

3)

Name

:

PUBLIC BANK BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

11

-

FACILITY AGREEMENT, DEED OF ASSIGNMENT, POWER OF ATTORNEY, LETTER OF GUARANTEE AND CHARGE IN ESCROW

PUBLIC BANK BHD

-

Unsatisfied

1

23/01/1995

FIXED CHARGE

BANK OF COMMERCE M BERHAD

MYR 520,000.00

Unsatisfied

2

24/04/1996

3RD CHARGE

BANK OF COMMERCE M BERHAD

MYR 830,000.00

Unsatisfied

3

04/02/1997

4TH CHARGE

BANK OF COMMERCE M BERHAD

MYR 600,000.00

Unsatisfied

4

18/07/1998

LOAN AGREEMENT

HOCK HUA BANK BERHAD

MYR 270,000.00

Unsatisfied

5

04/05/1999

N/A

MALAYAN BANKING BERHAD

MYR 396,000.00

Satisfied

8

13/01/2005

5TH CHARGE

BUMIPUTRACOMMERCE BANK BERHAD

MYR 800,000.00

Unsatisfied

6

15/01/2005

2ND CHARGE

BUMIPUTRACOMMERCE BANK BERHAD

MYR 500,000.00

Unsatisfied

7

15/01/2005

2ND LEGAL CHARGE

BUMIPUTRACOMMERCE BANK BERHAD

MYR 800,000.00

Unsatisfied

9

09/11/2005

FIXED CHARGED

PUBLIC BANK BHD

MYR 150,000.00

Unsatisfied

10

05/05/2011

FIRST PARTY FIRST LEGAL CHARGE UNDER THE NATIONAL CODE.

ALLIANCE BANK MALAYSIA 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

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

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES

Type of Customer

:

PET SHOP

 

 

OPERATIONS

 

Products manufactured

:

ANIMAL FEEDS, ANIMAL SUPPLEMENTS AND RELATED PRODUCTS

Competitor(s)

:

ASIA VETERINARY SDN BHD
IPOH INTERNATIONAL ANIMAL FEED (M) SDN BHD
PERTANIAN KUALA LUMPUR SDN BHD
PREMIER GRAIN SDN BHD
QL FEED SDN BHD

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

GROUP

N/A

N/A

N/A

N/A

N/A

 

COMPANY

20

15

15

15

15

 

Branch

:

YES

Other Information:


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

The Subject has derived a special formula for all ages, types and weight of pigs.

The Subject's products are formulated according to the requirements of vitamins and micro minerals in different types and day-old pigs.

The Subject's products fully satisfy the requirements of US Research Standards. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0379565723

Current Telephone Number

:

03-79565723

Match

:

YES

Address Provided by Client

:

A 1-12, PJ INDUSTRIAL PARK, LOT 2, JALAN KEMAJUAN, SEKSYEN 13, 46200 PETALING JAYA, SELANGOR, MALAYSIA

Current Address

:

LOT 3, JALAN INDUSTRI 2, KAWASAN PERUSAHAAN DIOH, 72000 KUALA PILAH, NEGERI SEMBILAN, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


On 14th September 2015, we contacted one of the Subject from the Subject and she provided some information on the Subject.

The address provided belongs to the Subject's headquarters.



FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

Return on Shareholder Funds

:

Acceptable

[

14.26%

]

Return on Net Assets

:

Acceptable

[

18.51%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

Liquidity

Current Ratio

:

Favourable

[

1.54 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

:

Acceptable

[

0.86 Times

]

The Subject had an acceptable liabilities ratio indicating that the Subject has an acceptable level of liabilities relative to shareholders' funds.

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. The Subject's liabilities were slightly high and its financial risk was also high. If no plans are made to reduce its liabilities, the Subject's performance may deteriorate in the coming year.

Overall financial condition of the Subject : STABLE

 

 

 

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

10800 : Manufacture of prepared animal feeds

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 1982, the Subject is a Private Limited company, focusing on manufacturing of veterinary products. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. A paid up capital of MYR 2,744,000 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 should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. Being a small company, the Subject's business operation is supported by 20 employees. 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. 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. 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. The Subject had an acceptable liabilities ratio indicating that the Subject has an acceptable level of liabilities relative to shareholders' funds. Given a positive net worth standing at MYR 6,673,938, 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 normally.

 



PROFIT AND LOSS ACCOUNT

 

DREAM MAKERS BIOPHARMA (M) 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

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

21,674,407

18,364,588

19,950,743

19,475,051

18,908,794

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

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

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

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

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

Total Turnover

21,674,407

18,364,588

19,950,743

19,475,051

18,908,794

Costs of Goods Sold

-

(15,153,264)

(16,523,672)

(16,276,314)

(15,984,194)

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

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

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

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

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

Gross Profit

-

3,211,324

3,427,071

3,198,737

2,924,600

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

1,343,781

833,468

917,196

662,025

853,837

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,343,781

833,468

917,196

662,025

853,837

Taxation

(391,256)

(256,467)

(291,498)

(283,876)

(257,640)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

952,525

577,001

625,698

378,149

596,197

Minority interests

(1,151)

312

(517)

(173)

(1,095)

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

951,374

577,313

625,181

377,976

595,102

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

951,374

577,313

625,181

377,976

595,102

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

2,857,124

2,279,811

1,654,630

1,277,158

682,056

Prior year adjustment

-

-

-

(504)

-

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

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

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

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

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

As restated

2,857,124

2,279,811

1,654,630

1,276,654

682,056

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

3,808,498

2,857,124

2,279,811

1,654,630

1,277,158

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

3,808,498

2,857,124

2,279,811

1,654,630

1,277,158

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

-

-

-

-

41,011

Bankers' acceptance

-

-

-

-

218,882

Hire purchase

-

-

-

-

13,763

Term loan / Borrowing

-

-

-

-

4,168

Others

-

351,432

371,799

333,163

-

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

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

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

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

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

-

351,432

371,799

333,163

277,824

-

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

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

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

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

DEPRECIATION (as per notes to P&L)

-

195,248

228,895

198,425

198,332

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

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

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

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

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

-

195,248

228,895

198,425

198,332

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

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

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

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

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

 

 

 

 

BALANCE SHEET

 

 

ASSETS EMPLOYED:

FIXED ASSETS

4,477,037

4,395,018

4,505,572

4,547,530

4,485,746

Investments

-

-

300,000

300,000

300,000

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

300,000

300,000

300,000

Goodwill on consolidation

-

-

-

-

269,148

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

-

-

-

-

269,148

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

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

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

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

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

TOTAL LONG TERM ASSETS

4,477,037

4,395,018

4,805,572

4,847,530

5,054,894

Stocks

-

2,150,711

2,062,588

1,526,580

1,322,651

Trade debtors

-

3,774,131

3,302,922

3,611,031

3,743,227

Other debtors, deposits & prepayments

-

808,965

924,428

995,996

416,288

Short term deposits

-

1,513,203

1,351,029

1,193,602

1,044,535

Amount due from director

-

-

14,950

21,661

28,968

Cash & bank balances

-

308,926

126,713

29,583

179,382

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

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

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

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

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

TOTAL CURRENT ASSETS

7,911,063

8,555,936

7,782,630

7,378,453

6,735,051

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

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

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

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

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

TOTAL ASSET

12,388,100

12,950,954

12,588,202

12,225,983

11,789,945

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

-

925,850

703,295

1,247,052

939,171

Other creditors & accruals

-

179,956

107,458

257,154

1,441,201

Hire purchase & lease creditors

-

34,584

64,425

109,165

114,848

Bank overdraft

-

-

474,189

524,502

85,857

Short term borrowings/Term loans

-

114,768

114,768

140,844

26,076

Bill & acceptances payable

-

5,148,000

5,106,000

4,485,000

4,784,000

Amounts owing to director

-

91,059

-

-

-

Provision for taxation

-

88,663

113,970

111,504

129,741

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

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

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

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

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

TOTAL CURRENT LIABILITIES

5,130,001

6,582,880

6,684,105

6,875,221

7,520,894

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

2,781,062

1,973,056

1,098,525

503,232

(785,843)

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

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

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

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

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

TOTAL NET ASSETS

7,258,099

6,368,074

5,904,097

5,350,762

4,269,051

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

2,744,000

2,744,000

2,744,000

2,744,000

2,744,000

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

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

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

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

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

TOTAL SHARE CAPITAL

2,744,000

2,744,000

2,744,000

2,744,000

2,744,000

Retained profit/(loss) carried forward

3,808,498

2,857,124

2,279,811

1,654,630

1,277,158

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

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

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

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

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

TOTAL RESERVES

3,808,498

2,857,124

2,279,811

1,654,630

1,277,158

MINORITY INTEREST

121,440

120,288

120,600

120,083

119,909

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

6,673,938

5,721,412

5,144,411

4,518,713

4,141,067

Long term loans

-

608,876

687,626

766,605

26,533

Hire purchase creditors

-

16,795

51,379

45,956

93,897

Deferred taxation

-

20,991

20,681

19,488

7,554

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

584,161

646,662

759,686

832,049

127,984

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

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

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

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

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

7,258,099

6,368,074

5,904,097

5,350,762

4,269,051

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

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

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

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

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

 

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

-

1,822,129

1,477,742

1,223,185

1,223,917

Net Liquid Funds

-

(3,325,871)

(4,102,447)

(3,786,317)

(3,645,940)

Net Liquid Assets

2,781,062

(177,655)

(964,063)

(1,023,348)

(2,108,494)

Net Current Assets/(Liabilities)

2,781,062

1,973,056

1,098,525

503,232

(785,843)

Net Tangible Assets

7,258,099

6,368,074

5,904,097

5,350,762

3,999,903

Net Monetary Assets

2,196,901

(824,317)

(1,723,749)

(1,855,397)

(2,236,478)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

-

1,184,900

1,288,995

995,188

1,131,661

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

-

1,380,148

1,517,890

1,193,613

1,329,993

BALANCE SHEET ITEMS

Total Borrowings

-

5,923,023

6,498,387

6,072,072

5,131,211

Total Liabilities

5,714,162

7,229,542

7,443,791

7,707,270

7,648,878

Total Assets

12,388,100

12,950,954

12,588,202

12,225,983

11,789,945

Net Assets

7,258,099

6,368,074

5,904,097

5,350,762

4,269,051

Net Assets Backing

6,673,938

5,721,412

5,144,411

4,518,713

4,141,067

Shareholders' Funds

6,673,938

5,721,412

5,144,411

4,518,713

4,141,067

Total Share Capital

2,744,000

2,744,000

2,744,000

2,744,000

2,744,000

Total Reserves

3,808,498

2,857,124

2,279,811

1,654,630

1,277,158

LIQUIDITY (Times)

Cash Ratio

-

0.28

0.22

0.18

0.16

Liquid Ratio

-

0.97

0.86

0.85

0.72

Current Ratio

1.54

1.30

1.16

1.07

0.90

WORKING CAPITAL CONTROL (Days)

Stock Ratio

-

43

38

29

26

Debtors Ratio

-

75

60

68

72

Creditors Ratio

-

22

16

28

21

SOLVENCY RATIOS (Times)

Gearing Ratio

-

1.04

1.26

1.34

1.24

Liabilities Ratio

0.86

1.26

1.45

1.71

1.85

Times Interest Earned Ratio

-

3.37

3.47

2.99

4.07

Assets Backing Ratio

2.65

2.32

2.15

1.95

1.46

PERFORMANCE RATIO (%)

Operating Profit Margin

6.20

4.54

4.60

3.40

4.52

Net Profit Margin

4.39

3.14

3.13

1.94

3.15

Return On Net Assets

18.51

18.61

21.83

18.60

26.51

Return On Capital Employed

18.21

18.17

19.64

16.30

23.29

Return On Shareholders' Funds/Equity

14.26

10.09

12.15

8.36

14.37

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.66.37

UK Pound

1

Rs.102.54

Euro

1

Rs.75.32

 

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

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.