MIRA INFORM REPORT

 

 

Report No. :

340899

Report Date :

16.09.2015

 

IDENTIFICATION DETAILS

 

Name :

A. SCHULMAN PLASTICS (MALAYSIA) SDN. BHD.

 

 

Formerly Known As :

ICO POLYMERS (MALAYSIA) SDN BHD

 

J.R. COURTENAY SDN BHD


COURTNAY (MALAYSIA) SDN BHD

 

 

Registered Office :

5 A, Jalan Rotan Cucur, Taman Sri Jaya, 83000 Batu Pahat, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.08.2014

 

 

Date of Incorporation :

08.03.2000

 

 

Com. Reg. No.:

507533-T

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

The subject is engaged in manufacturing compound powdered plastics.

 

 

No. of Employees :

75 [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 :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

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.

:

507533-T

COMPANY NAME

:

A. SCHULMAN PLASTICS (MALAYSIA) SDN. BHD.

FORMER NAME

:

ICO POLYMERS (MALAYSIA) SDN BHD (25/04/2012)
J.R. COURTENAY SDN BHD (05/04/2008)
COURTNAY (MALAYSIA) SDN BHD (12/02/2001)

INCORPORATION DATE

:

08/03/2000

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

5A, JALAN ROTAN CUCUR, TAMAN SRI JAYA, 83000 BATU PAHAT, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

2, JALAN WAWASAN UTAMA, KAWASAN PERINDUSTRIAN SRI GADING, 83300 BATU PAHAT, JOHOR, MALAYSIA.

TEL.NO.

:

07-4556777

FAX.NO.

:

07-4559777

CONTACT PERSON

:

LIAM BIN LAN ( DIRECTOR )

INDUSTRY CODE

:

22209

PRINCIPAL ACTIVITY

:

MANUFACTURING COMPOUND POWDERED PLASTICS

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 3,228,914.00 DIVIDED INTO
ORDINARY SHARES 3,228,914 CASH OF MYR 1.00 EACH.

SALES

:

MYR 95,327,611 [2014]

NET WORTH

:

MYR 43,094,118 [2014]

STAFF STRENGTH

:

75 [2015]

BANKER (S)

 

MALAYAN BANKING 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) manufacturing compound powdered plastics.

 

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

 

The immediate holding company of the Subject is J.R. COURTENAY (N.Z.) LIMITED, a company incorporated in NEW ZEALAND.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

27/01/2014

MYR 5,000,000.00

MYR 3,228,914.00

13/03/2000

MYR 500,000.00

MYR 2.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

J.R. COURTENAY (N.Z.) LIMITED

141, DIANA DRIVE, GLENFIELD PRIVATE BAG, 93523, TAKAPUNA AUCKLAND, NEW ZEALAND.

AK436308

3,228,914.00

100.00

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

------

3,228,914.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. TAN KIAN MING

Address

:

35, JALAN HANG TUAH 4/4, TAMAN MUHIBBAH, 86000 KLUANG, JOHOR, MALAYSIA.

IC / PP No

:

A1480891

New IC No

:

700210-01-5399

Date of Birth

:

10/02/1970

Nationality

:

MALAYSIAN

Date of Appointment

:

19/05/2011

 

DIRECTOR 2

 

Name Of Subject

:

MS. LIAM BIN LAN

Address

:

9.JALAN PUYOH, BATU PAHAT, 83000 BATU PAHAT, JOHOR, MALAYSIA.

IC / PP No

:

A3093370

New IC No

:

750712-01-5044

Date of Birth

:

12/07/1975

Nationality

:

MALAYSIAN

Date of Appointment

:

20/12/2001

 

DIRECTOR 3

 

Name Of Subject

:

DEREK BRISTOW

Address

:

STARBOARD LOFT, UNIT 1, 4 EDGAR BENNETT AVENUE, NOOSA HEADS, QUEENSLAND, AUSTRALIA.

IC / PP No

:

LA539103

Nationality

:

NEW ZEALANDER

Date of Appointment

:

07/06/2010

 

DIRECTOR 4

 

Name Of Subject

:

MARK STEPHEN JOHN LEWIS

Address

:

40, CORONATION ROAD WEST, 03/03, 269258, SINGAPORE.

IC / PP No

:

511368576

Nationality

:

BRITISH

Date of Appointment

:

11/09/2014

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

LIAM BIN LAN

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN RAKYAT, KUALA LUMPUR SENTRAL, LEVEL 15, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. PHAN LI CHING

IC / PP No

:

A1576514

New IC No

:

700517-01-5246

Address

:

66, JALAN MAJU SATU, TAMAN MAJU, 83000 BATU PAHAT, JOHOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

28/06/2002

N/A

MALAYAN BANKING BERHAD

MYR 800,000.00

Satisfied

2

22/11/2003

N/A

MALAYAN BANKING BERHAD

MYR 2,482,000.00

Satisfied

3

24/02/2005

N/A

MALAYAN BANKING BERHAD

MYR 2,500,000.00

Satisfied

4

24/02/2005

N/A

MALAYAN BANKING BERHAD

MYR 2,500,000.00

Satisfied

5

04/06/2007

N/A

MALAYAN BANKING BHD

MYR 7,534,091.59

Satisfied

6

04/06/2007

N/A

MALAYAN BANKING BHD

MYR 5,253,100.23

Satisfied

7

04/06/2007

N/A

MALAYAN BANKING BHD

MYR 2,300,000.00

Satisfied

8

04/06/2007

N/A

MALAYAN BANKING BHD

MYR 7,534,091.59

Satisfied

 

 

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

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

:

ASIA

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

MANUFACTURING INDUSTRIES,DISTRIBUTORS

 

 

OPERATIONS

 

Products manufactured

:

COMPOUND POWDERED PLASTICS

Competitor(s)

:

GREEN POINT PRECISION (M) SDN BHD

Member(s) / Affiliate(s)

:

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)

Ownership of premises

:

OWNED

Shifts

:

3 SHIFTS (24 HOURS OPERATING)

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

75

75

70

70

75

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing compound powdered plastics.

The Subject's products ranges are includes as follows:

* Extensive range of rotational moulding powder
* Colors and foamable polymers
* Specialist polymers and alloy powder
* Fluidised bed powder for surface coatings

Besides that the Subject also produces a range of marble colours and other uniquefinishes.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that:

Telephone Number Provided By Client

:

074556777

Current Telephone Number

:

07-4556777

Match

:

YES

Address Provided by Client

:

2, JALAN WAWASAN UTAMA, KAWASAN PERINDUSTRIAN SRI GADING,83300,BATU PAHAT,JOHOR.

Current Address

:

2, JALAN WAWASAN UTAMA, KAWASAN PERINDUSTRIAN SRI GADING, 83300 BATU PAHAT, JOHOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


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

 

 

FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2014

]

Return on Shareholder Funds

:

Unfavourable

[

9.79%

]

Return on Net Assets

:

Acceptable

[

12.18%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Liquidity

Current Ratio

:

Favourable

[

2.77 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

[

0.39 Times

]

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

Overall Assessment :

Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. 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



INDUSTRY ANALYSIS

 

MSIC CODE

22209 : Manufacture of diverse plastic products n.e.c.

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 2000, the Subject is a Private Limited company, focusing on manufacturing compound powdered plastics. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. A paid up capital of MYR 3,228,914 allows the Subject to expand its business more comfortably. 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. Being a moderate size company, the Subject has a total workforce of 75 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.


Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. 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 43,094,118, 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 promptly.

 



PROFIT AND LOSS ACCOUNT

 

 

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

A. SCHULMAN PLASTICS (MALAYSIA) SDN. BHD.

 

Financial Year End

2014-08-31

2013-08-31

2012-08-31

2011-08-31

2010-08-31

Months

12

12

12

12

11

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

95,327,611

91,716,895

89,160,218

85,711,535

68,703,779

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

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

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

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

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

Total Turnover

95,327,611

91,716,895

89,160,218

85,711,535

68,703,779

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

5,457,498

7,524,447

4,603,300

7,458,506

6,356,359

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

5,457,498

7,524,447

4,603,300

7,458,506

6,356,359

Taxation

(1,238,193)

(1,986,826)

(1,377,703)

(2,072,969)

(1,085,048)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

4,219,305

5,537,621

3,225,597

5,385,537

5,271,311

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

35,645,899

30,108,278

26,882,681

21,497,144

16,225,833

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

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

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

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

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

As restated

35,645,899

30,108,278

26,882,681

21,497,144

16,225,833

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

39,865,204

35,645,899

30,108,278

26,882,681

21,497,144

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

39,865,204

35,645,899

30,108,278

26,882,681

21,497,144

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Hire purchase

-

-

-

-

46,345

Loan from holding company

-

9,090

275,786

310,357

-

Term loan / Borrowing

-

22,550

59,037

49,043

402,880

Others

-

-

-

-

218,802

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

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

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

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

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

-

31,640

334,823

359,400

668,027

-

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

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

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

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

DEPRECIATION (as per notes to P&L)

-

2,296,782

2,254,446

2,251,965

2,042,532

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

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

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

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

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

-

2,296,782

2,254,446

2,251,965

2,042,532

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

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

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

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

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

 

 

BALANCE SHEET

 

 

 

A. SCHULMAN PLASTICS (MALAYSIA) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

17,430,081

15,009,243

17,173,536

17,918,559

19,491,305

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

343,119

-

-

-

-

Goodwill on consolidation

-

-

-

-

332,488

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

-

-

-

-

332,488

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

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

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

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

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

TOTAL LONG TERM ASSETS

17,773,200

15,009,243

17,173,536

17,918,559

19,823,793

Stocks

-

12,827,079

8,749,786

19,888,085

9,465,580

Trade debtors

-

14,988,236

13,581,990

17,886,890

13,263,866

Other debtors, deposits & prepayments

-

720,216

210,874

559,963

453,631

Amount due from holding company

-

-

-

-

441,047

Amount due from subsidiary companies

-

5,753,468

9,222,182

6,429,716

339,448

Cash & bank balances

-

9,493,467

7,444,974

1,516,463

2,419,359

Others

-

-

138,201

-

424,709

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

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

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

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

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

TOTAL CURRENT ASSETS

42,334,498

43,782,466

39,348,007

46,281,117

26,807,640

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

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

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

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

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

TOTAL ASSET

60,107,698

58,791,709

56,521,543

64,199,676

46,631,433

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

-

15,325,239

14,670,854

13,655,951

8,100,323

Other creditors & accruals

-

1,384,161

966,612

-

1,084,477

Short term borrowings/Term loans

-

-

-

7,056,146

-

Other liabilities & accruals

-

-

-

1,156,940

-

Amounts owing to holding company

-

-

3,397,947

9,653,806

9,548,041

Amounts owing to subsidiary companies

-

928,579

2,367,938

1,056,799

1,441,534

Provision for taxation

-

720,917

-

439

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

15,302,580

18,358,896

21,403,351

32,580,081

20,174,375

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

27,031,918

25,423,570

17,944,656

13,701,036

6,633,265

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

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

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

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

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

TOTAL NET ASSETS

44,805,118

40,432,813

35,118,192

31,619,595

26,457,058

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

3,228,914

3,228,914

3,228,914

3,228,914

3,228,914

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

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

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

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

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

TOTAL SHARE CAPITAL

3,228,914

3,228,914

3,228,914

3,228,914

3,228,914

Retained profit/(loss) carried forward

39,865,204

35,645,899

30,108,278

26,882,681

21,497,144

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

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

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

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

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

TOTAL RESERVES

39,865,204

35,645,899

30,108,278

26,882,681

21,497,144

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

43,094,118

38,874,813

33,337,192

30,111,595

24,726,058

Deferred taxation

-

1,558,000

1,781,000

1,508,000

1,731,000

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,711,000

1,558,000

1,781,000

1,508,000

1,731,000

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

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

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

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

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

44,805,118

40,432,813

35,118,192

31,619,595

26,457,058

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

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

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

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

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

 

 

FINANCIAL RATIO

 

 

A. SCHULMAN PLASTICS (MALAYSIA) SDN. BHD.

 

TYPES OF FUNDS

Cash

-

9,493,467

7,444,974

1,516,463

2,419,359

Net Liquid Funds

-

9,493,467

7,444,974

1,516,463

2,419,359

Net Liquid Assets

27,031,918

12,596,491

9,194,870

(6,187,049)

(2,832,315)

Net Current Assets/(Liabilities)

27,031,918

25,423,570

17,944,656

13,701,036

6,633,265

Net Tangible Assets

44,805,118

40,432,813

35,118,192

31,619,595

26,124,570

Net Monetary Assets

25,320,918

11,038,491

7,413,870

(7,695,049)

(4,563,315)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

-

7,556,087

4,938,123

7,817,906

7,024,386

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

-

9,852,869

7,192,569

10,069,871

9,066,918

BALANCE SHEET ITEMS

Total Borrowings

-

0

0

7,056,146

0

Total Liabilities

17,013,580

19,916,896

23,184,351

34,088,081

21,905,375

Total Assets

60,107,698

58,791,709

56,521,543

64,199,676

46,631,433

Net Assets

44,805,118

40,432,813

35,118,192

31,619,595

26,457,058

Net Assets Backing

43,094,118

38,874,813

33,337,192

30,111,595

24,726,058

Shareholders' Funds

43,094,118

38,874,813

33,337,192

30,111,595

24,726,058

Total Share Capital

3,228,914

3,228,914

3,228,914

3,228,914

3,228,914

Total Reserves

39,865,204

35,645,899

30,108,278

26,882,681

21,497,144

LIQUIDITY (Times)

Cash Ratio

-

0.52

0.35

0.05

0.12

Liquid Ratio

-

1.69

1.43

0.81

0.86

Current Ratio

2.77

2.38

1.84

1.42

1.33

WORKING CAPITAL CONTROL (Days)

Stock Ratio

-

51

36

85

50

Debtors Ratio

-

60

56

76

70

Creditors Ratio

-

61

60

58

43

SOLVENCY RATIOS (Times)

Gearing Ratio

-

0

0

0.23

0

Liabilities Ratio

0.39

0.51

0.70

1.13

0.89

Times Interest Earned Ratio

-

238.81

14.75

21.75

10.52

Assets Backing Ratio

13.88

12.52

10.88

9.79

8.09

PERFORMANCE RATIO (%)

Operating Profit Margin

5.72

8.20

5.16

8.70

9.25

Net Profit Margin

4.43

6.04

3.62

6.28

7.67

Return On Net Assets

12.18

18.69

14.06

24.72

26.55

Return On Capital Employed

12.18

18.69

14.06

24.72

26.22

Return On Shareholders' Funds/Equity

9.79

14.24

9.68

17.89

21.32

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.66.44

UK Pound

1

Rs.102.41

Euro

1

Rs.75.05

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

VNT

 

               

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.