MIRA INFORM REPORT

 

 

Report No. :

341435

Report Date :

19.09.2015

 

IDENTIFICATION DETAILS

 

Name :

CJ POLYMERS SDN. BHD.

 

 

Registered Office :

44-2, Jalan 4/18A, Taman Mastiara, Batu 5 1/2, Off Jalan Ipoh, 51200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

16.02.2001

 

 

Com. Reg. No.:

539468-V

 

 

Legal Form :

Exempt Private (Limited by Share)

 

 

Line of Business :

Procurement and Trading of Resin, Polymers, Textile, Petrochemical, and Fertilizer.

 

 

No. of Employees :

20 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

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.

:

539468-V

COMPANY NAME

:

CJ POLYMERS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

16/02/2001

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

44-2, JALAN 4/18A, TAMAN MASTIARA, BATU 5 1/2, OFF JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

B-6-16, VOX SOUTHGATE, JALAN DUA, OFF JALAN CHAN SOW LIN, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-92213000

FAX.NO.

:

03-92213006

EMAIL

:

SALES@CJPOLYMERS.COM

WEB SITE

:

WWW.CJPOLYMERS.COM

CONTACT PERSON

:

NG SOO HAN ( DIRECTOR )

INDUSTRY CODE

:

46693

PRINCIPAL ACTIVITY

:

PROCUREMENT AND TRADING OF RESIN, POLYMERS, TEXTILE, PETROCHEMICAL, AND FERTILIZER

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 4,000,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH AND 3,900,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

20 [2015]

BANKER (S)

:

HSBC BANK MALAYSIA BHD
STANDARD CHARTERED BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 


 

HISTORY / BACKGROUND

 

The Subject is an exempt private company which is allowed to have a minimum of two and a maximum of twenty shareholders and all the shareholders must be individuals. An exempt company is a type of private limited company. 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, suing or be sued by other companies. The Subject is governed by the Companies Act, 1965 and must file in its annual return. The Subject need not file in its financial statements but it has to file in a document duly signed by its director in charge of its finance, the secretary and its auditor stating that the Subject is able to meet all its obligations as and when they fall due. Although the Subject is not required to file in its financial statements, it also has to prepare its financial account which must be presented at the Annual General Meeting.

 

The Subject is principally engaged in the (as a / as an) procurement and trading of resin, polymers, textile, petrochemical, and fertilizer.

 

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

01/04/2013

MYR 5,000,000.00

MYR 4,000,000.00

31/03/2010

MYR 5,000,000.00

MYR 2,000,000.00

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MS. NG SOO HAN

5, JALAN SHB 5, SUBANG HEIGHTS, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

710603-06-5054 A1905688

2,000,000.00

50.00

MS. LOK PEY LING

87, JALAN JALIL PERKASA 19, TAMAN ESPLANAD, BUKIT JALIL, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

731129-01-5094 A2568082

2,000,000.00

50.00

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

------

4,000,000.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

Status

(%)

As At

852819T

MALAYSIA

CJ PETROCHEMICALS SDN. BHD.

-

100.00

26/11/2014



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. SIM CHIN HU

Address

:

5, JALAN SHB 5, SUBANG HEIGHTS, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A1907114

New IC No

:

711010-03-5081

Date of Birth

:

10/10/1971

Nationality

:

MALAYSIAN

Date of Appointment

:

05/03/2014

 

DIRECTOR 2

 

Name Of Subject

:

MR. KERK HAN MENG

Address

:

87, JALAN JALIL PERKASA 19, TAMAN ESPLANAD, BUKIT JALIL, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A2383713

New IC No

:

730320-01-5127

Date of Birth

:

20/03/1973

Nationality

:

MALAYSIAN

Date of Appointment

:

05/03/2014



MANAGEMENT

 

 

1)

Name of Subject

:

KERK HAN MENG

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

NG SOO HAN

Position

:

DIRECTOR

 

3)

Name of Subject

:

LIM YEE ENG

Position

:

ACCOUNT MANAGER

 

4)

Name of Subject

:

ERICA CHUO

Position

:

MARKETING MANAGER

 


 

 

AUDITOR

 

Auditor

:

YEH & CO.

Auditor' Address

:

44-2, JALAN 4/18A, TAMAN MASTIARA, BATU 5 1/2, OFF JALAN IPOH, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. WONG NGIA MING

IC / PP No

:

K0095414

New IC No

:

660202-13-5557

Address

:

42, JALAN PUTERI 8/3, BANDAR PUTERI PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

2)

Name

:

STANDARD CHARTERED BANK MALAYSIA BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

10/11/2008

OPEN CHARGE

STANDARD CHARTERED BANK MALAYSIA BERHAD

-

Satisfied

2

10/11/2008

OPEN CHARGE

STANDARD CHARTERED BANK MALAYSIA BERHAD

-

Satisfied

3

10/11/2008

OPEN CHARGE

STANDARD CHARTERED BANK MALAYSIA BERHAD

-

Satisfied

4

24/11/2008

OPEN CHARGE

STANDARD CHARTERED BANK MALAYSIA BERHAD

-

Satisfied

5

21/10/2010

DEED OF ASSIGNMENT

HSBC BANK MALAYSIA BERHAD

-

Unsatisfied

6

20/04/2011

DEED OF ASSIGNMENT

HONG LEONG ISLAMIC BANK BERHAD

MYR 1,993,685.88

Unsatisfied

7

29/11/2012

N/A

HSBC BANK MALAYSIA BERHAD

-

Unsatisfied

8

27/01/2014

N/A

HSBC BANK MALAYSIA BERHAD

-

Unsatisfied

9

19/02/2014

N/A

STANDARD CHARTERED BANK MALAYSIA BERHAD

-

Unsatisfied

10

07/01/2015

N/A

HSBC BANK MALAYSIA BERHAD

-

Unsatisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


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

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

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

50%

Overseas

:

YES

Percentage

:

50%

Import Countries

:

CHINA,VIETNAM,KOREA

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

50%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

50%

Export Market

:

ASIA

EUROPE

Credit Term

:

30 DAYS

Payment Mode

:

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

Type of Customer

:

PLASTIC MANUFACTURER,OIL & GAS INDUSTRIES,DEPARTMENTAL STORES

 

 

OPERATIONS

 

Goods Traded

:

RESIN, POLYMERS, TEXTILE, PETROCHEMICAL, AND FERTILIZER

Ownership of premises

:

LEASED/RENTED

 

Total Number of Employees:

 

YEAR

2015

2014

2012

2011

2010


GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

20

25

15

15

13

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) procurement and trading of resin, polymers, textile, petrochemical, and fertilizer.


The Subject is an international distribution and trading company that established since 2001. It is a renowned central hub for worldwide procurement and marketing of petrochemicals, polymers and textile raw materials. Our diverse range of suppliers assures continuity of supply to our customers.


The Subject assist the customers in international marketing, procurement of commodities and sales bases both internationally and domestically.


The Subject also constantly exploring new products and developments to add value for our customers’ businesses.

The role as product sourcing company is to assist the customers obtain raw material like petrochemical, fertilizer, yarns and others to source for their business product output.


The Subject provides practical and professional assistance in marketing and sales to our customers in selling their products. In terms of logistics, customers can be assured with our expertise in handling and shipping their cargoes to the destination safely and on time.


The Subject also have a team of advisers to give advice and support to customers for documentations procedures needed when running businesses internationally.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0392213000

Current Telephone Number

:

03-92213000

Match

:

YES

Address Provided by Client

:

B-6-16, VOX SOUTHGATE, JALAN DUA, OFF JALAN CHAN SOW LIN,55200,KUALA LUMPUR,WILAYAH PERSEKUTUAN.

Current Address

:

B-6-16, VOX SOUTHGATE, JALAN DUA, OFF JALAN CHAN SOW LIN, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

NO

 

Other Investigations


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


FINANCIAL ANALYSIS

 

The Subject is a private exempt company which does not need to file in its accounts with the Registrar of Companies for the information of the public. Therefore, we are not able to comment on the Subject's financial performance.

Overall financial condition of the Subject : N/A

 

 

 

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

46693 : Wholesale of plastic materials in primary forms

INDUSTRY :

TRADING

The wholesale and retail trade is expected to increase 7.1% in 2015 (2014: 7.7%) driven by strong domestic consumption and higher tourist arrivals following the Malaysia Year of Festivals 2015. Besides, in 2014, the wholesale and retail trade subsector is expected to increase 7.7% (2013: 6.4%) supported by strong domestic consumption.

According to Retail Group Malaysia (RGM), the pharmacy and personal care sub-sector had slow growth rate of 2.6% for the first quarter of 2014, while "other specialty stores" grew at a rate of 3.5%. During the first quarter of 2014, fashion and fashion accessories recorded a sustainable growth of 6.3% as compared with the same period last year (3.6%).

The retail segment increased 10.1% (January - June 2013: 7.1%) attributed to brisk sales in retail outlets such as hypermarkets and large-scale superstores. Since the launch of the Small Retailer Transformation programme (TUKAR) in January 2011 up to end-July 2014, 1,761 small retailer stores (end-July 2013: 1,381) have been modernized to improve their competitiveness. In addition, the strong growth of the retail segment was supported by 1Malaysia Unified Sales held from 29 June 2014 to 1 September 2014 to attract foreign and local tourists to shop in Malaysia. Meanwhile, the wholesale segment expanded 8.2% (January - June 2013: 4.9%) due to higher sales of non-agricultural intermediate products, such as petrol, diesel, lubricants and household goods. Furthermore, food and beverage outlets, laundry outlets, car wash centres, abd health and beauty outlets took a hit from the water rationing in the Klang Valley since February this year.

On the other hand, in 2014, Malaysia's total trade is expected to grow 5.2% to RM1.44 trillion (2013: 4.5%; RM1.37 trillion) underpinned by recovery in key advanced economies, resilient regional demand, and partly due to the base effect arising from sluggish exports in the corresponding period last year. Gross exports are anticipated to expand 6% to RM762.8 billion while import decreased 4.3% to RM677.2 billion (2013: 2.4%; RM719.8 billion; 7%; RM 649.1 billion). Consequently, the trade surplus is expected to be higher at RM85.6 billion or 7.9% of GDP in 2014 (2013: RM70.7 billion; 7.2%).

Furthermore, gross exports rebounded by 10.7% to RM441.3 billion during the first seven months of 2014 (January - July 2013: -2.8%; RM398.5 billion), with manufactured and mining exports rising at a double digit pace of 11.4% and 12.5%. Shipment of agriculture products grew at a slower pace of 2.7%, primarily due to lower receipts of crude rubber (-24.6%) while export growth of other commodities remained steady. Consequently, exports of manufactured and mining products are expected to grow 6.1% and 6.4% in 2014 (2013: 5.1%; 3.3%). Meanwhile, agriculture exports are expected to rebound sharply by 4.5% in 2014 (2013: -14.4%) despite moderating commodity prices. Malaysia's top 3 trading partners are China, Singapore, and Japan.

Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption. Therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2001, the Subject is an Exempt Private company, focusing on procurement and trading of resin, polymers, textile, petrochemical, and fertilizer. 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 4,000,000 allows the Subject to expand its business more comfortably. However, the Subject does not have strong shareholders’ backing. Without a strong shareholders' backing, the opportunity of the Subject to expand its business is limited.

Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. 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.

As the Subject is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health.

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 industry shows an upward trend and this trend is very likely to sustain in the near terms.

In view of the above, we only recommend credit be proceeded to the Subject with guarantee.

 



PROFIT AND LOSS ACCOUNT

 

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

CJ POLYMERS SDN. BHD.

 

Financial Year End

2010-03-31

Months

12

Consolidated Account

GROUP

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

FULL

Currency

MYR

TURNOVER

83,988,755

Other Income

60,502

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

Total Turnover

84,049,257

Costs of Goods Sold

(79,630,463)

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

Gross Profit

4,418,794

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

PROFIT/(LOSS) FROM OPERATIONS

1,070,438

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

PROFIT/(LOSS) BEFORE TAXATION

1,070,438

Taxation

(369,552)

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

PROFIT/(LOSS) AFTER TAXATION

700,886

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

4,707,108

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

As restated

4,707,108

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,407,994

CAPITALISATION FOR BONUS ISSUES

(1,000,000)

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

4,407,994

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

INTEREST EXPENSE (as per notes to P&L)

Others

305,095

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

305,095

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

DEPRECIATION (as per notes to P&L)

219,621

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

219,621

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

 

 

 

 

 

BALANCE SHEET

 

CJ POLYMERS SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

996,136

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

TOTAL LONG TERM ASSETS

996,136

Trade debtors

4,884,209

Other debtors, deposits & prepayments

1,632,487

Cash & bank balances

1,381,462

Others

3,513

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

TOTAL CURRENT ASSETS

7,901,671

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

TOTAL ASSET

8,897,807

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

CURRENT LIABILITIES

Trade creditors

1,315,675

Other creditors & accruals

577,932

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

TOTAL CURRENT LIABILITIES

1,893,607

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

NET CURRENT ASSETS/(LIABILITIES)

6,008,064

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

TOTAL NET ASSETS

7,004,200

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

SHARE CAPITAL

Ordinary share capital

2,000,000

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

TOTAL SHARE CAPITAL

2,000,000

Retained profit/(loss) carried forward

4,407,994

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

TOTAL RESERVES

4,407,994

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

SHAREHOLDERS' FUNDS/EQUITY

6,407,994

Long term loans

596,206

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

TOTAL LONG TERM LIABILITIES

596,206

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

7,004,200

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

 

 

 

 

 

FINANCIAL RATIO

 

CJ POLYMERS SDN. BHD.

 

TYPES OF FUNDS

Cash

1,381,462

Net Liquid Funds

1,381,462

Net Liquid Assets

6,008,064

Net Current Assets/(Liabilities)

6,008,064

Net Tangible Assets

7,004,200

Net Monetary Assets

5,411,858

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

1,375,533

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

1,595,154

BALANCE SHEET ITEMS

Total Borrowings

596,206

Total Liabilities

2,489,813

Total Assets

8,897,807

Net Assets

7,004,200

Net Assets Backing

6,407,994

Shareholders' Funds

6,407,994

Total Share Capital

2,000,000

Total Reserves

4,407,994

LIQUIDITY (Times)

Cash Ratio

0.73

Liquid Ratio

4.17

Current Ratio

4.17

WORKING CAPITAL CONTROL (Days)

Debtors Ratio

21

Creditors Ratio

6

SOLVENCY RATIOS (Times)

Gearing Ratio

0.09

Liabilities Ratio

0.39

Times Interest Earned Ratio

4.51

Assets Backing Ratio

3.50

PERFORMANCE RATIO (%)

Operating Profit Margin

1.27

Net Profit Margin

0.83

Return On Net Assets

19.64

Return On Capital Employed

19.64

Return On Shareholders' Funds/Equity

10.94

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.93

UK Pound

1

Rs.102.75

Euro

1

Rs.75.13

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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.