MIRA INFORM REPORT

 

 

Report No. :

342837

Report Date :

30.09.2015

 

IDENTIFICATION DETAILS

 

Name :

SHIELDTEX SDN. BHD.

 

 

Registered Office :

41B, Damai Complex, Jalan Dato Haji Eusoff, 50400 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

15.07.1988

 

 

Com. Reg. No.:

172069-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in manufacturing, packing and distribution of sterile and non-sterile disposable latex examination gloves

 

 

No. of Employee :

10 [2015]

 

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

NOTES :

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

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. As an oil and gas exporter, Malaysia has previously profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is trying to lessen its dependence on state oil producer Petronas.

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

172069-D

COMPANY NAME

:

SHIELDTEX SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

15/07/1988

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

41B, DAMAI COMPLEX, JALAN DATO HAJI EUSOFF, 50400 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 7, JALAN LADA SULAH 16/11, SEKSYEN 16, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-55101228

FAX.NO.

:

03-55108333

EMAIL

:

ENQUIRIES@SHIELDTEX.COM.MY

WEB SITE

:

WWW.SHIELDTEX.COM.MY

CONTACT PERSON

:

ALAN TAY SWEI LOONG ( MANAGING DIRECTOR )

INDUSTRY CODE

:

22192

PRINCIPAL ACTIVITY

:

MANUFACTURING, PACKING AND DISTRIBUTION OF STERILE AND NON-STERILE DISPOSABLE LATEX EXAMINATION GLOVES

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 2,500,000.00 DIVIDED INTO
ORDINARY SHARES 1,500,000 CASH AND 1,000,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 19,226,235 [2013]

NET WORTH

:

MYR 1,222,896 [2013]

STAFF STRENGTH

:

10 [2015]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

SLOW BUT CORRECT

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, packing and distribution of sterile and non-sterile disposable latex examination gloves.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/06/2014

MYR 5,000,000.00

MYR 2,500,000.00

21/10/2003

MYR 5,000,000.00

MYR 1,500,000.00

10/04/2002

MYR 500,000.00

MYR 200,000.00

03/09/1992

MYR 100,000.00

MYR 100,000.00

02/08/1988

MYR 25,000.00

MYR 3.00

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

THE TOWER HOTEL SDN. BHD.

12, JALAN 241, 46100 PETALING JAYA, SELANGOR, MALAYSIA.

31207K

2,500,000.00

100.00

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

------

2,500,000.00

100.00

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

=====

+ Also Director



DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MS. KATHLEEN TAY HOOI HWA @ KATHLEEN

Address

:

27, LENGKOK SETIABISTARI, BUKIT DAMANSARA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

6357955

New IC No

:

610808-07-5602

Date of Birth

:

08/08/1961

Nationality

:

MALAYSIAN

Date of Appointment

:

15/07/1988

 

DIRECTOR 2

 

Name Of Subject

:

MR. ALAN TAY SWEI LOONG

Address

:

38, JALAN MAMBU, BUKIT BANDARAYA, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A3372712

New IC No

:

760608-14-5059

Date of Birth

:

08/06/1976

Nationality

:

MALAYSIAN

Date of Appointment

:

04/10/1999

 

DIRECTOR 3

 

Name Of Subject

:

MR. ALDWIN TAY SWEI LEENG

Address

:

157, JALAN TERASEK 2, BANGSAR BARU, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

790417-14-6371

Date of Birth

:

17/04/1979

Nationality

:

MALAYSIAN

Date of Appointment

:

26/05/2009

 

DIRECTOR 4

 

Name Of Subject

:

WONG GEOK YING @ NG GIOK TJIN

Address

:

15, JALAN PERSIARAN BATAI BARAT, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

2195573

New IC No

:

260410-05-5006

Date of Birth

:

10/04/1926

Nationality

:

MALAYSIAN

Date of Appointment

:

15/07/1988



MANAGEMENT

 

 

1)

Name of Subject

:

ALAN TAY SWEI LOONG

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

ALDWIN TAY SWEI LEENG

Position

:

GENERAL MANAGER

 

3)

Name of Subject

:

BEE S TAN

Position

:

EXPORT MANAGER

 

 

AUDITOR

 

Auditor

:

WONG WENG FOO & CO.

Auditor' Address

:

41, DAMAI COMPLEX, JALAN DATO HAJI EUSOFF, 50400 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. YAP YOKE IMM

IC / PP No

:

7442859

New IC No

:

641102-04-5358

Address

:

44, JALAN USJ 3/2D, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

 

2)

Company Secretary

:

MS. CHIA LEE SEN

IC / PP No

:

A0956623

New IC No

:

680517-10-6564

Address

:

21, JALAN SJ 16A, TAMAN SELAYANG BAHAGIA, 68100 BATU CAVES, SELANGOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

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

:

100%

Overseas

:

NO

Percentage

:

0%



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

:

AUSTRALIA

CANADA

DENMARK

EUROPE

JAPAN

NEW ZEALAND

NORWAY

SWEDEN

Credit Term

:

AS AGREED

Payment Mode

:

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

Type of Customer

:

HOSPITALS,PHARMACIES

 

 

OPERATIONS

 

Products manufactured

:

STERILE AND NON-STERILE DISPOSABLE LATEX EXAMINATION GLOVES

Goods Traded

:

STERILE AND NON-STERILE DISPOSABLE LATEX EXAMINATION GLOVES

Product Brand Name

:

SHIELDTEX, BIO, SHIELD, MULTITEX

Member(s) / Affiliate(s)

:

SMALL & MEDIUM ENTERPRISE

 

Total Number of Employees:

YEAR

2015

2014

GROUP

N/A

N/A

COMPANY

10

20

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing, packing and distribution of sterile and non-sterile disposable latex examination gloves.

The Subject mainly involved in manufacturing and export of latex gloves.

The Subject has factory size 26,071 square meter.

Furthermore, the Subject products are made of 100% latex that is a natural and renewable resource. Latex is produced from the milky sap of the rubber tree which is then collected using the most environmentally safe, age-old process: drips in buckets, very much like that used for collecting maple syrup.

Beside that the Subject gloves are of the highest and greenest quality, all conforming to the Good Manufacturing Practices (GMP) and ASTM D3578-01 specifications. Their products are made of 100% latex that is highly resistant and durable. They are strong, elastic, slip resistant and easy to wear, fitting comfortably like a second skin.

The Subject provide gloves to meet every requirement:

* Extra Small to Extra Large Size
* Powdered & Powder-Free
* Low Protein contents
* Colored & Natural Color


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0355101228

Current Telephone Number

:

03-55101228

Match

:

YES

Address Provided by Client

:

LOT 7, JALAN LADA SULAH 16/11, SEKSYEN 16,40000,SHAH ALAM,SELANGOR.

Current Address

:

LOT 7, JALAN LADA SULAH 16/11, SEKSYEN 16, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


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

 

FINANCIAL ANALYSIS

 

 

 

Profitability

Turnover

:

Increased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

Return on Shareholder Funds

:

Favourable

[

61.32%

]

Return on Net Assets

:

Favourable

[

62.71%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

29 Days

]

Debtor Ratio

:

Favourable

[

28 Days

]

Creditors Ratio

:

Favourable

[

14 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Acceptable

[

0.85 Times

]

Current Ratio

:

Unfavourable

[

1.39 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

:

Favourable

[

12.14 Times

]

Gearing Ratio

:

Favourable

[

0.67 Times

]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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 : STABLE

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.2

4.0

Unemployment Rate

3.3

3.2

3.0

2.9

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

4.00

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

6.85

-

Business Loans Disbursed( % )

15.3

32.2

-

56.0

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

43,486.6

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

49,144

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

6.1

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

21,753

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

(17.7)

-

Registration of New Business ( No. )

284,598

324,761

329,895

332,723

-

Registration of New Business ( % )

5.0

14.0

2.0

1.0

-

Business Dissolved ( No. )

20,121

20,380

18,161

21,436

-

Business Dissolved ( % )

1.9

1.3

(10.9)

18.0

-

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

63.2

-

Credit Cards Spending ( % )

15.6

12.6

-

13.5

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-



INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

3.0

-

Other Mining

-

-

-

46.6

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.4

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

1.4

-

Plastic Products

3.8

-

-

2.7

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

13.0

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

22192 : Manufacture of rubber gloves

INDUSTRY :

MANUFACTURING

The manufacturing sector is expected to grow by 5.5% in 2015. It will be bolstered by strong domestic and export-oriented industries in line with growing investment activities and favorable external demand. Moreover, in 2014, the manufacturing sectors have spearheading growth. The manufacturing sector is estimated to grow at a faster pace in 2014 on higher exports of electronics and electrical (E&E) products as external demand improves.

The manufacturing sector expanded strongly during the first half of 2014, the highest growth in three years, spurred by higher global semiconductor sales. Value-added of the manufacturing sector expanded 7.1% during the first half of 2014. Production of the sector rose 6.6% in the first seven months of 2014 supported by resilient domestic demand and recovery in the external sector during the first seven months of the years. The sales value of manufactured products rebounded by 7.7% in the first seven months of 2014. The strong performance of the sector was on account of higher output at 9.4% from the domestic-oriented industries, particularly transport equipment, food and beverage.

The manufacturing sector continued to attract domestic and foreign investment with investment approved by Malaysian Investment Development Authority (MIDA) totaling RM47.4 billion during the first six months of 2014, mainly from Japan, China and Germany. Meanwhile, the capacity utilization rate remained steady at 80.4% during the second quarter of 2014 while average wage per employee and productivity improved to RM2,772 per month and 5.9%, respectively during the first seven months of 2014. Boosted by favorable domestic economic activity and recovery in the external sector, the manufacturing sector is expected to record a better performance with growth of 6.4% in 2014.

In the meantime, production of wood products rebounded by 5.1% largely supported by higher output in the saw-milling and planning of wood segment at 25.9% during the first seven months of 2014. The positive performance was attributed to vibrant residential and commercial construction activities which contributed to increased use of timber frame and glued laminated timber for cost savings compared to the use of concrete and steel. Increased demand from major export destination such as the US, Japan and Australia for Malaysian made furniture contributed to the higher output, particularly wooden and cane furniture which rebounded by 2.2%.

Production of rubber products contracted 0.3% in the first seven months of 2014 on account of slower demand for rubber gloves and rubber tyres. The decline in rubber tyres for vehicles was due to the weaker external demand from the automotive industry, particularly from China. Output of other rubber products contracted 3.8% following the product shift from rubber-based to plastics, silicones and metal alloys in the manufacture of medical devices.

Besides, exports of manufactured products are expected to grow 6.1% in 2014 boosted by the growing demand from advanced economies. However, during the first seven months of 2014, manufactured exports surged 11.4%. The robust growth was buoyed by strengthening demand in the US and EU, reflecting significant exposure of Malaysian exports to the economic performance in the advance economies. The strength in export was broad-based with robust growth in both E&E and non- E&E subsectors.

Under budget 2015, the Government will provide incentive in the form of capital allowance on automation expenditure to encourage automation in the manufacturing sector, which may help in the manufacturing sector.

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1988, the Subject is a Private Limited company, focusing on manufacturing, packing and distribution of sterile and non-sterile disposable latex examination gloves. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. A paid up capital of MYR 2,500,000 allows the Subject to expand its business more comfortably. With a strong backing from its shareholder, 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 small company, the Subject's business operation is supported by 10 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds 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 1,222,896, the Subject should be able to maintain its business in the near terms.

 

We noted that the Subject's supplies are solely sourced from local market. Being highly dependent on a limited number of suppliers could lead to delays, lost of revenue and increased costs if such resources become unavailable or shortage.

 

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

 

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


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

 



 

PROFIT AND LOSS ACCOUNT

 

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

SHIELDTEX SDN. BHD.

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

2009-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

19,226,235

17,889,749

9,386,395

6,046,293

6,436,241

Other Income

38,949

41,057

-

-

-

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

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

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

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

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

Total Turnover

19,265,184

17,930,806

9,386,395

6,046,293

6,436,241

Costs of Goods Sold

(16,913,812)

(16,030,401)

-

-

-

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

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

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

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

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

Gross Profit

2,351,372

1,900,405

-

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

749,924

45,478

92,978

(23,827)

110,500

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

749,924

45,478

92,978

(23,827)

110,500

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

749,924

45,478

92,978

(23,827)

110,500

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(2,027,028)

(2,072,506)

(2,165,484)

(2,141,657)

(2,252,157)

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

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

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

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

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

As restated

(2,027,028)

(2,072,506)

(2,165,484)

(2,141,657)

(2,252,157)

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(1,277,104)

(2,027,028)

(2,072,506)

(2,165,484)

(2,141,657)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(1,277,104)

(2,027,028)

(2,072,506)

(2,165,484)

(2,141,657)

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

37,440

27,271

-

-

-

Hire purchase

3,880

-

-

-

-

Others

25,973

40,993

-

-

-

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

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

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

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

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

67,293

68,264

-

-

-

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

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

-

-

-

DEPRECIATION (as per notes to P&L)

37,129

17,169

-

-

-

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

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

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

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

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

37,129

17,169

-

-

-

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

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

 


 

 

 

BALANCE SHEET

 

SHIELDTEX SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

179,037

36,049

36,777

43,246

57,179

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

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

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

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

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

TOTAL LONG TERM ASSETS

179,037

36,049

36,777

43,246

57,179

Stocks

1,552,775

560,970

-

-

-

Trade debtors

1,497,531

959,215

-

-

-

Other debtors, deposits & prepayments

948,796

1,092,867

-

-

-

Cash & bank balances

600

1,218

-

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

3,999,702

2,614,270

2,492,195

2,464,133

1,850,183

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

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

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

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

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

TOTAL ASSET

4,178,739

2,650,319

2,528,972

2,507,379

1,907,362

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

646,967

174,371

-

-

-

Other creditors & accruals

166,432

114,002

-

-

-

Hire purchase & lease creditors

38,098

-

-

-

-

Bank overdraft

529,941

474,604

-

-

-

Bill & acceptances payable

170,000

120,000

-

-

-

Other liabilities & accruals

114,250

92,081

-

-

-

Amounts owing to holding company

642,789

635,289

-

-

-

Amounts owing to related companies

567,000

567,000

-

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

2,875,477

2,177,347

2,101,478

3,172,863

2,547,095

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,124,225

436,923

390,717

(708,730)

(696,912)

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

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

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

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

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

TOTAL NET ASSETS

1,303,262

472,972

427,494

(665,484)

(639,733)

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

2,500,000

2,500,000

2,500,000

1,500,000

1,500,000

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

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

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

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

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

TOTAL SHARE CAPITAL

2,500,000

2,500,000

2,500,000

1,500,000

1,500,000

Retained profit/(loss) carried forward

(1,277,104)

(2,027,028)

(2,072,506)

(2,165,484)

(2,141,657)

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

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

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

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

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

TOTAL RESERVES

(1,277,104)

(2,027,028)

(2,072,506)

(2,165,484)

(2,141,657)

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,222,896

472,972

427,494

(665,484)

(641,657)

Hire purchase creditors

80,366

-

-

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

80,366

-

-

-

1,924

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

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

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

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

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

1,303,262

472,972

427,494

(665,484)

(639,733)

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

SHIELDTEX SDN. BHD.

 

TYPES OF FUNDS

Cash

600

1,218

-

-

-

Net Liquid Funds

(699,341)

(593,386)

-

-

-

Net Liquid Assets

(428,550)

(124,047)

390,717

(708,730)

(696,912)

Net Current Assets/(Liabilities)

1,124,225

436,923

390,717

(708,730)

(696,912)

Net Tangible Assets

1,303,262

472,972

427,494

(665,484)

(639,733)

Net Monetary Assets

(508,916)

(124,047)

390,717

(708,730)

(698,836)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

817,217

113,742

-

-

-

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

854,346

130,911

-

-

-

BALANCE SHEET ITEMS

Total Borrowings

818,405

594,604

-

-

-

Total Liabilities

2,955,843

2,177,347

2,101,478

3,172,863

2,549,019

Total Assets

4,178,739

2,650,319

2,528,972

2,507,379

1,907,362

Net Assets

1,303,262

472,972

427,494

(665,484)

(639,733)

Net Assets Backing

1,222,896

472,972

427,494

(665,484)

(641,657)

Shareholders' Funds

1,222,896

472,972

427,494

(665,484)

(641,657)

Total Share Capital

2,500,000

2,500,000

2,500,000

1,500,000

1,500,000

Total Reserves

(1,277,104)

(2,027,028)

(2,072,506)

(2,165,484)

(2,141,657)

LIQUIDITY (Times)

Cash Ratio

0

0

-

-

-

Liquid Ratio

0.85

0.94

-

-

-

Current Ratio

1.39

1.20

1.19

0.78

0.73

WORKING CAPITAL CONTROL (Days)

Stock Ratio

29

11

-

-

-

Debtors Ratio

28

20

-

-

-

Creditors Ratio

14

4

-

-

-

SOLVENCY RATIOS (Times)

Gearing Ratio

0.67

1.26

-

-

-

Liabilities Ratio

2.42

4.60

4.92

(4.77)

(3.97)

Times Interest Earned Ratio

12.14

1.67

-

-

-

Assets Backing Ratio

0.52

0.19

0.17

(0.44)

(0.43)

PERFORMANCE RATIO (%)

Operating Profit Margin

3.90

0.25

0.99

(0.39)

1.72

Net Profit Margin

3.90

0.25

0.99

(0.39)

1.72

Return On Net Assets

62.71

24.05

21.75

3.58

(17.27)

Return On Capital Employed

43.67

12.00

21.75

3.58

(17.27)

Return On Shareholders' Funds/Equity

61.32

9.62

21.75

3.58

(17.22)

Dividend Pay Out Ratio (Times)

0

0

-

-

-

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.18

UK Pound

1

Rs.100.46

Euro

1

Rs.74.61

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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.