MIRA INFORM REPORT

 

 

Report No. :

340915

Report Date :

19.09.2015

 

IDENTIFICATION DETAILS

 

Name :

CHIN LEAN PLASTIC FACTORY SDN. BHD.

 

 

Registered Office :

105, Jalan Veerasamy, 30300 Ipoh, Perak

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

16.08.1979

 

 

Com. Reg. No.:

49922-V

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing and Trading of Plastic and Plastic Products

 

 

No. of Employee :

200

 

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.

:

49922-V

COMPANY NAME

:

CHIN LEAN PLASTIC FACTORY SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

16/08/1979

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

105, JALAN VEERASAMY, 30300 IPOH, PERAK, MALAYSIA.

BUSINESS ADDRESS

:

LOT 5005, JALAN CHUI CHAK, 36700 LANGKAP, PERAK, MALAYSIA.

TEL.NO.

:

05-6593444

FAX.NO.

:

05-6593175

CONTACT PERSON

:

ONG KOK CHENG ( CEO )

INDUSTRY CODE

:

22209

PRINCIPAL ACTIVITY

:

MANUFACTURING AND TRADING OF PLASTIC AND PLASTIC PRODUCTS.

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 7,000,000.00 DIVIDED INTO
ORDINARY SHARES 6,597,751 CASH AND 402,249 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 72,525,009 [2014]

NET WORTH

:

MYR 40,114,587 [2014]

BANKER (S)

HSBC BANK MALAYSIA BHD
OCBC BANK (MALAYSIA) BHD
SOUTHERN BANK BERHAD
THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD

STAFF STRENGTH

:

200 [2015]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

NO COMPLAINTS

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

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

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

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

25/06/2015

MYR 10,000,000.00

MYR 7,000,000.00

11/12/1998

MYR 5,000,000.00

MYR 5,000,000.00

02/12/1997

MYR 5,000,000.00

MYR 4,500,000.00

25/11/1996

MYR 5,000,000.00

MYR 3,500,000.00

27/09/1995

MYR 5,000,000.00

MYR 3,000,000.00

02/11/1993

MYR 5,000,000.00

MYR 2,000,000.00

27/08/1991

MYR 5,000,000.00

MYR 800,000.00

03/05/1990

MYR 1,000,000.00

MYR 500,000.00

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

ONG BOON TAM REALTY SDN. BHD.

PT 2675, TAMAN BARU, JALAN KAMPAR, 36700 LANGKAP, PERAK, MALAYSIA.

66825H

2,309,999.00

33.00

CHIN LEAN TRADING SDN. BHD.

LOT 5005, JALAN CHUI CHAK, 36700 LANGKAP, PERAK, MALAYSIA.

31854K

1,750,000.00

25.00

MR. CHAH CHING BOO +

PT 1247, TAMAN LANGKAP, 36700 LANGKAP, PERAK, MALAYSIA.

551122-08-5155 4923721

700,000.00

10.00

GOH AH MENG HOLDINGS SDN BHD

RAILWAY STATION, P.O. BOX 311, 30740 IPOH, PERAK, MALAYSIA.

T188607K

420,000.00

6.00

MR. ONG KOK CHOR

PT 1245, TAMAN LANGKAP, 36700 LANGKAP, PERAK, MALAYSIA.

470902-71-5117 7603987

350,000.00

5.00

ONG BOON KHIM SDN. BHD.

3394 & 3395, OFF JALAN INDUSTRI 1, TAMAN INDUSTRI MAJUPERAK, 36700 LANGKAP, PERAK, MALAYSIA.

67181M

349,999.00

5.00

MEI XI SDN. BHD.

23A, LORONG LANGKAP 5, TAMAN LANGKAP, 36700 LANGKAP, PERAK, MALAYSIA.

204842V

349,998.00

5.00

IE LEE ENTERPRISE SDN. BHD.

PT 2675, TAMAN BARU, JALAN KAMPAR, 36700 LANGKAP, PERAK, MALAYSIA.

93057W

349,998.00

5.00

MR. GOH CHONG TUAN +

9, JALAN HASSAN ADLI, 30350 IPOH, PERAK, MALAYSIA.

670302-08-5891 A0664615

280,000.00

4.00

ONG GUAN PEO

22-L, LORONG LIMA, TAMAN LANGKAP, 36700 LANGKAP, PERAK, MALAYSIA.

8156319

140,000.00

2.00

MR. ONG BOON TAM

125, JALAN KAMPAR, 36700 LANGKAP, PERAK, MALAYSIA.

250518-71-5521 3845251

1.00

0.00

MR. ONG KOK GIM +

20-F, LORONG RIA 4, TAMAN INTAN JAYA, 36700 LANGKAP, PERAK, MALAYSIA.

630717-04-5633 7086356

1.00

0.00

MR. ONG KOK CHENG +

22, PT 1516, LORONG MEGAH, TAMAN MEGAH, 36700 LANGKAP, PERAK, MALAYSIA.

571119-08-6059 5409863

1.00

0.00

MR. CHIAM SENG CHONG +

23A, LORONG LANGKAP 5, TAMAN LANGKAP, 36700 LANGKAP, PERAK, MALAYSIA.

560525-08-6579 5000546

1.00

0.00

MR. ONG AH SENG +

66, LORONG 4, TAMAN LANGKAP JAYA, 36700 LANGKAP, PERAK, MALAYSIA.

610912-08-5229 6319801

1.00

0.00

MR. CHIAM HOY LIM

23A, LORONG LANGKAP 5, TAMAN LANGKAP, 36700 LANGKAP, PERAK, MALAYSIA.

300824-08-5479 1457926

1.00

0.00

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

------

7,000,000.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

Status

(%)

As At

228075A

MALAYSIA

CHIN LEAN INDUSTRIES SDN. BHD.

-

100.00

14/09/2015

47124P

MALAYSIA

CHIN LEAN REALTY CO. SDN. BHD.

-

100.00

26/11/2014



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. ONG KOK CHENG

Address

:

22, PT 1516, LORONG MEGAH, TAMAN MEGAH, 36700 LANGKAP, PERAK, MALAYSIA.

IC / PP No

:

5409863

New IC No

:

571119-08-6059

Date of Birth

:

19/11/1957

Nationality

:

MALAYSIAN

 

DIRECTOR 2

 

Name Of Subject

:

MR. ONG KOK GIM

Address

:

20-F, LORONG RIA 4, TAMAN INTAN JAYA, 36700 LANGKAP, PERAK, MALAYSIA.

IC / PP No

:

7086356

New IC No

:

630717-04-5633

Date of Birth

:

17/07/1963

Nationality

:

MALAYSIAN

Date of Appointment

:

26/01/1991

 

DIRECTOR 3

 

Name Of Subject

:

MR. ONG AH SENG

Address

:

66, LORONG 4, TAMAN LANGKAP JAYA, 36700 LANGKAP, PERAK, MALAYSIA.

IC / PP No

:

6319801

New IC No

:

610912-08-5229

Date of Birth

:

12/09/1961

Nationality

:

MALAYSIAN

Date of Appointment

:

30/06/2003

 

DIRECTOR 4

 

Name Of Subject

:

MR. CHIAM SENG CHONG

Address

:

23A, LORONG LANGKAP 5, TAMAN LANGKAP, 36700 LANGKAP, PERAK, MALAYSIA.

IC / PP No

:

5000546

New IC No

:

560525-08-6579

Date of Birth

:

25/05/1956

Nationality

:

MALAYSIAN

Date of Appointment

:

27/06/2012

 

DIRECTOR 5

 

Name Of Subject

:

MR. GOH CHONG TUAN

Address

:

9, JALAN HASSAN ADLI, 30350 IPOH, PERAK, MALAYSIA.

IC / PP No

:

A0664615

New IC No

:

670302-08-5891

Date of Birth

:

02/03/1967

Nationality

:

MALAYSIAN

Date of Appointment

:

30/06/2010

 

DIRECTOR 6

 

Name Of Subject

:

MR. CHAH CHING BOO

Address

:

PT 1247, TAMAN LANGKAP, 36700 LANGKAP, PERAK, MALAYSIA.

IC / PP No

:

4923721

New IC No

:

551122-08-5155

Date of Birth

:

22/11/1955

Nationality

:

MALAYSIAN

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

ONG KOK CHENG

Position

:

CEO

 

 

AUDITOR

 

Auditor

:

H.C WONG & CHEW

Auditor' Address

:

107, JALAN VEERASAMY, 30300 IPOH, PERAK, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LEE PENG PENG

IC / PP No

:

4587137

New IC No

:

540502-08-5882

Address

:

3, LENGKOK WIRA JAYA TIMOR 3, TAMAN RAPAT, 31350 IPOH, PERAK, MALAYSIA.

 

2)

Company Secretary

:

MS. WONG LAI HOONG

IC / PP No

:

6733804

New IC No

:

620214-08-6266

Address

:

8, LORONG CHATEAU, TAMAN CHATEAU, 30250 IPOH, PERAK, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

2)

Name

:

OCBC BANK (MALAYSIA) BHD

 

3)

Name

:

SOUTHERN BANK BERHAD

 

4)

Name

:

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

27/12/1984

N/A

SOUTHERN BANK BHD

MYR 280,000.00

Satisfied

2

27/12/1984

N/A

SOUTHERN BANK BHD

MYR 100,000.00

Satisfied

3

15/11/1985

N/A

SOUTHERN BANK BHD

MYR 20,000.00

Satisfied

4

06/04/1987

N/A

SOUTHERN BANK BHD

MYR 50,000.00

Satisfied

5

06/04/1987

N/A

SOUTHERN BANK BHD

MYR 350,000.00

Satisfied

7

14/08/1987

N/A

SOUTHERN BANK BERHAD

MYR 200,000.00

Satisfied

6

24/08/1987

N/A

SOUTHERN BANK BERHAD

MYR 200,000.00

Satisfied

8

17/02/1989

N/A

SOUTHERN BANK BHD

MYR 60,000.00

Satisfied

9

29/11/1989

N/A

SOUTHERN BANK BERHAD

MYR 550,000.00

Satisfied

10

06/12/1989

N/A

SOUTHERN BANK BERHAD

MYR 490,000.00

Satisfied

11

24/01/1991

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD

MYR 400,000.00

Satisfied

13

11/02/1991

N/A

SOUTHERN BANK BHD

MYR 200,000.00

Satisfied

12

22/02/1991

N/A

SOUTHERN BANK BHD

MYR 200,000.00

Satisfied

14

13/06/1991

N/A

SOUTHERN BANK BERHAD

MYR 360,000.00

Satisfied

15

13/06/1991

N/A

SOUTHERN BANK BHD

MYR 360,000.00

Satisfied

16

15/02/1992

N/A

THE HONGKONG SHANGHAI BANKING CORPORATION LTD

MYR 200,000.00

Satisfied

17

02/06/1993

N/A

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD

MYR 5,000,000.00

Satisfied

18

22/03/1995

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 1,000,000.00

Satisfied

19

24/03/1995

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 1,000,000.00

Satisfied

20

14/06/1997

FACILITY AGREEMENT

OCBC BANK MALAYSIA BERHAD

MYR 7,109,034.54

Unsatisfied

21

13/02/2001

FACILITY AGREEMENT

SOUTHERN BANK BERHAD

MYR 2,257,188.00

Unsatisfied

22

09/05/2006

N/A

OCBC BANK (MALAYSIA) BHD

MYR 4,172,685.58

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

:

N/A

Overseas

:

N/A


The Subject refused to disclose its suppliers.

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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

BRUNEI DARUSSALAM

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

PVC PIPES, PVC HOSES, PVC FITTINGS, PVC GASKETS

Award

:

1 ) MS ISO 9001 : 2000 Year :2002

Certification of Products

:

1) MS 979:PT.2:1985

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

Shifts

:

24 HOURS

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

2010

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

COMPANY

200

200

200

200

150

150

 

Branch

:

YES

 

Other Information:


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

The Subject is principally engaged in the manufacturing and sale of plastic products such as PVC pipes, fittings and hose



RECENT DEVELOPMENT


No recent development was noted in our investigations.

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

05-6593444

Match

:

N/A

Address Provided by Client

:

LOT NO. 5005, JALAN CHUI CHAK, 36700 LANGKAP, PERAK, MALAYSIA

Current Address

:

LOT 5005, JALAN CHUI CHAK, 36700 LANGKAP, PERAK, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 15th September 2015 we contacted one of the staff from the Subject and she provided some information.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

Return on Shareholder Funds

:

Acceptable

[

11.22%

]

Return on Net Assets

:

Acceptable

[

16.92%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Unfavourable

[

102 Days

]

Debtor Ratio

:

Unfavourable

[

93 Days

]

Creditors Ratio

:

Favourable

[

12 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Acceptable

[

0.92 Times

]

Current Ratio

:

Unfavourable

[

1.82 Times

]

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Acceptable

[

6.64 Times

]

Gearing Ratio

:

Favourable

[

0.37 Times

]

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. 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 :

Generally, the Subject's performance has improved with higher turnover and profit. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. 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

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 1979, the Subject is a Private Limited company, focusing on manufacturing and trading of plastic and plastic 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 7,000,000 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. 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. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to 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 managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 40,114,587, the Subject should be able to maintain its business in the near terms.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

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

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

 



PROFIT AND LOSS ACCOUNT

 

 

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

CHIN LEAN PLASTIC FACTORY 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

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

72,525,009

58,851,191

52,007,770

52,204,027

46,493,721

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

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

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

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

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

Total Turnover

72,525,009

58,851,191

52,007,770

52,204,027

46,493,721

Costs of Goods Sold

(59,422,162)

(47,641,683)

(42,157,652)

(42,623,065)

(36,947,292)

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

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

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

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

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

Gross Profit

13,102,847

11,209,508

9,850,118

9,580,962

9,546,429

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

6,017,271

5,079,198

4,452,412

4,829,326

5,126,472

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

6,017,271

5,079,198

4,452,412

4,829,326

5,126,472

Taxation

(1,515,068)

(1,205,157)

(1,143,333)

(1,032,637)

(1,025,172)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

4,502,203

3,874,041

3,309,079

3,796,689

4,101,300

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

29,137,384

25,613,343

22,654,264

19,207,575

15,806,275

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

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

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

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

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

As restated

29,137,384

25,613,343

22,654,264

19,207,575

15,806,275

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

33,639,587

29,487,384

25,963,343

23,004,264

19,907,575

DIVIDENDS - Ordinary (paid & proposed)

(525,000)

(350,000)

(350,000)

(350,000)

(700,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

33,114,587

29,137,384

25,613,343

22,654,264

19,207,575

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Others

1,067,658

980,494

768,475

632,628

355,666

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

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

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

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

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

1,067,658

980,494

768,475

632,628

355,666

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

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

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

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

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

DEPRECIATION (as per notes to P&L)

1,721,736

1,730,173

1,540,893

1,399,078

1,395,424

AMORTIZATION

27,689

27,688

27,688

27,688

27,689

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

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

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

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

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

1,749,425

1,757,861

1,568,581

1,426,766

1,423,113

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

CHIN LEAN PLASTIC FACTORY SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

21,007,548

21,649,108

19,046,490

17,494,627

13,976,476

Development properties/expenditure

360,021

360,616

361,212

361,808

-

Investment properties

1,252,345

1,252,345

676,515

676,515

877,146

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,612,366

1,612,961

1,037,727

1,038,323

1,040,780

Goodwill on consolidation

1,108,021

1,108,021

1,108,021

1,108,021

1,108,021

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

1,108,021

1,108,021

1,108,021

1,108,021

1,108,021

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

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

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

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

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

TOTAL LONG TERM ASSETS

23,727,935

24,370,090

21,192,238

19,640,971

16,125,277

Stocks

19,830,129

17,959,145

16,115,148

10,962,895

9,148,359

Trade debtors

18,576,315

17,202,161

15,340,401

16,017,418

13,952,714

Other debtors, deposits & prepayments

1,594,742

277,932

1,641,309

135,585

110,505

Cash & bank balances

254,420

450,964

246,606

779,947

246,963

Others

97,337

4,404

2,435

3,115

1,470

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

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

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

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

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

TOTAL CURRENT ASSETS

40,352,943

35,894,606

33,345,899

27,898,960

23,460,011

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

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

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

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

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

TOTAL ASSET

64,080,878

60,264,696

54,538,137

47,539,931

39,585,288

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

1,952,738

1,411,828

3,346,059

2,449,237

3,150,115

Other creditors & accruals

907,209

691,915

620,374

644,810

-

Hire purchase & lease creditors

809,728

802,618

594,396

456,929

1,137,960

Bank overdraft

1,799,185

2,806,453

3,093,720

2,144,612

-

Short term borrowings/Term loans

202,849

202,849

-

-

215,330

Other borrowings

-

-

-

-

5,530,376

Bill & acceptances payable

11,043,000

10,628,000

8,188,000

6,175,000

-

Amounts owing to director

1,128,871

1,132,033

541,336

507,283

497,673

Provision for taxation

585,228

313,301

127,600

200,600

419,969

Other liabilities

3,789,053

3,873,104

3,741,523

3,507,116

1,363,537

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

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

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

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

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

TOTAL CURRENT LIABILITIES

22,217,861

21,862,101

20,253,008

16,085,587

12,314,960

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

18,135,082

14,032,505

13,092,891

11,813,373

11,145,051

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

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

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

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

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

TOTAL NET ASSETS

41,863,017

38,402,595

34,285,129

31,454,344

27,270,328

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

7,000,000

7,000,000

7,000,000

7,000,000

7,000,000

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

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

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

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

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

TOTAL SHARE CAPITAL

7,000,000

7,000,000

7,000,000

7,000,000

7,000,000

Retained profit/(loss) carried forward

33,114,587

29,137,384

25,613,343

22,654,264

19,207,575

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

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

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

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

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

TOTAL RESERVES

33,114,587

29,137,384

25,613,343

22,654,264

19,207,575

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

40,114,587

36,137,384

32,613,343

29,654,264

26,207,575

Long term loans

-

-

-

-

458,403

Hire purchase creditors

1,068,226

1,601,458

1,042,461

1,162,299

-

Deferred taxation

680,204

663,753

629,325

637,781

604,350

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,748,430

2,265,211

1,671,786

1,800,080

1,062,753

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

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

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

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

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

41,863,017

38,402,595

34,285,129

31,454,344

27,270,328

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

CHIN LEAN PLASTIC FACTORY SDN. BHD.

 

TYPES OF FUNDS

Cash

254,420

450,964

246,606

779,947

246,963

Net Liquid Funds

(12,587,765)

(12,983,489)

(11,035,114)

(7,539,665)

246,963

Net Liquid Assets

(1,695,047)

(3,926,640)

(3,022,257)

850,478

1,996,692

Net Current Assets/(Liabilities)

18,135,082

14,032,505

13,092,891

11,813,373

11,145,051

Net Tangible Assets

40,754,996

37,294,574

33,177,108

30,346,323

26,162,307

Net Monetary Assets

(3,443,477)

(6,191,851)

(4,694,043)

(949,602)

933,939

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

7,084,929

6,059,692

5,220,887

5,461,954

5,482,138

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

8,834,354

7,817,553

6,789,468

6,888,720

6,905,251

BALANCE SHEET ITEMS

Total Borrowings

14,922,988

16,041,378

12,918,577

9,938,840

7,342,069

Total Liabilities

23,966,291

24,127,312

21,924,794

17,885,667

13,377,713

Total Assets

64,080,878

60,264,696

54,538,137

47,539,931

39,585,288

Net Assets

41,863,017

38,402,595

34,285,129

31,454,344

27,270,328

Net Assets Backing

40,114,587

36,137,384

32,613,343

29,654,264

26,207,575

Shareholders' Funds

40,114,587

36,137,384

32,613,343

29,654,264

26,207,575

Total Share Capital

7,000,000

7,000,000

7,000,000

7,000,000

7,000,000

Total Reserves

33,114,587

29,137,384

25,613,343

22,654,264

19,207,575

LIQUIDITY (Times)

Cash Ratio

0.01

0.02

0.01

0.05

0.02

Liquid Ratio

0.92

0.82

0.85

1.05

1.16

Current Ratio

1.82

1.64

1.65

1.73

1.91

WORKING CAPITAL CONTROL (Days)

Stock Ratio

102

114

116

79

72

Debtors Ratio

93

107

108

112

110

Creditors Ratio

12

11

29

21

31

SOLVENCY RATIOS (Times)

Gearing Ratio

0.37

0.44

0.40

0.34

0.28

Liabilities Ratio

0.60

0.67

0.67

0.60

0.51

Times Interest Earned Ratio

6.64

6.18

6.79

8.63

15.41

Assets Backing Ratio

5.82

5.33

4.74

4.34

3.74

PERFORMANCE RATIO (%)

Operating Profit Margin

8.30

8.63

8.56

9.25

11.03

Net Profit Margin

6.21

6.58

6.36

7.27

8.82

Return On Net Assets

16.92

15.78

15.23

17.36

20.10

Return On Capital Employed

15.54

14.05

13.36

15.53

18.57

Return On Shareholders' Funds/Equity

11.22

10.72

10.15

12.80

15.65

Dividend Pay Out Ratio (Times)

0.12

0.09

0.11

0.09

0.17

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.95

UK Pound

1

Rs.102.75

Euro

1

Rs.75.13

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

SDA

 

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.