Accounting Advanced Packaging Technology (M) Bhd.,

Advanced Packaging Technology (M) Bhd., beforehand often recognized as Goyo Corporation (M) Sdn. Bhd. was incorporated in 1982 and is based in Bandar Baru Bangi, Malaysia. It manufactures and distributes high-quality versatile packaging materials to each native and overseas markets however focuses mainly in Malaysia. The present major Board of Directors consist of Datuk Ismail bin Ahmad (Chairman), Tjin Kiat at Tan Cheng Keat (Managing Director) and Yeo Tek Ling (Finance Director).

To keep up with this ever-changing world, Advanced Packaging Technologies (M) Bhd.

have been in search of methods to produce packaging with higher and better quality. It is currently creating and producing Linear Low Density Polyethylene (LLDPE) film for its internal consumption, exterior sales as well as for merchandise which makes contact with food. According to the financial assertion ratio evaluation conducted primarily based on the Annual Report of Advanced Packaging Technologies (M) Bhd. 2017, the evaluation could be segregated into three parts, particularly profitability, solvency and liquidity of the corporate. It was found that Advanced Packaging Technologies (M) Bhd. is a not as worthwhile in the 12 months 2017 as compared to 2016. This can be seen with the revenue margin of 10.61% in 2016 and solely four.73% in 2017. Looking on the company’s liquidity facet, Advanced Packaging Technologies (M) Bhd. has a four.eighty two current ratio. It means that the corporate is four.eighty two times capable of meet its brief time period obligations. Not solely that, Advanced Packaging Technologies (M) Bhd. is said to be a extra financially secured firm in short time period with the excessive acid-test ratio of three.eighty three. It is also contemplate to have a excessive effectivity based on the accounts receivable turnover of 4.

35 instances. Several comparability of current (2017) to previous (2016) performances corresponding to for accounts receivables, accounts payables,property, liabilities and shareholders’ equity had been conducted.

There was a decrease in accounts receivables by 12.3% from the year 2016 to 2017. Moreover, accounts payables have additionally decreased by 35.5%. Not only that, the assets, liabilities and shareholders’ equity in comparison with previous performance have additionally decreased by 4.54%, 7.94% and 3.71% each. After analysing Advanced Packaging Technologies (M) Bhd., it may be seen that they have a quantity of strengths and weaknesses that makes them who they are right now. Some of their strengths encompass their versatile and multilayer packaging materials, strategic location, strict quality control and so forth; whereas, some of their weaknesses are small factory measurement they usually rely closely on their main customer for revenue. Not to mention, every firm will certainly face some threats from their peer competitors, and theirs includes sluggish economy, excessive raw material costs, like crude oil in addition to forex fluctuation.

Despite dealing with threats, Advanced Packaging Technologies (M) Bhd. also have their very own opportunities in expanding, bettering and advancing their company. The opportunities involves making use of empty lands to expand their factories and offices. Advanced Packaging Technology (M) Bhd was founded and included in 1982 by Kiat Tjin, Hock Seng Eu, Sah Lim Law and Sam Fatt Chee. Advanced Packaging Technology (M) Bhd started their enterprise on 31st March 1982 in Malaysia. It relies at Lot 2, Jalan P/2A Kawasan MIEL Bangi Industrial Estate Bandar Baru Bangi, 43650, Malaysia. The warehouse, manufacturing facility and workplace is on a eight,903 square metre 99 year leasehold land.

The firm first integrated as a personal limited firm beneath the name of Goyo Corporation (M) Bhd on 31 March 1982. On ninth June 1982, the corporate modified its name to Advanced Packaging Technology (M) Bhd and became a public firm on twenty seventh May 1993. They have been then listed on the Main Market of Bursa Malaysia Securities Berhad on twenty seventh May 1994. Advanced Packaging Technology (M) Bhd produces top quality flexible packaging supplies for both native and abroad markets. Based on Flexible Packaging Association, versatile packaging materials is named any bundle or any single a half of a package whose form, dimension and color could be readily modified. It offers single and multi-layers of flexible packaging supplies in both roll or pouch/bag forms to varied industries for example, foods, drinks, spices, liquids, medical and surgical merchandise and tons of extra. The firm focuses on providing environment friendly packaging as it is a must for every.

The board of directors of Advanced Packaging Technology (M) Bhd. consists of their chairman Datuk Ismail bin Ahmad, their managing director, Tan Cheng Keat, finance Director Yeo Tek Ling, Senior Independent Non-Executive Director Mah Siew Seng and Senior Independent Non-Executive Director Ng Choo Tim, Law Mong Yong and Chee Chin Hung. Advanced Packaging Technology (M) Bhd manufactures and distributes versatile packaging materials. Flexible packaging supplies are often made with a composite of varied base films, foil or paper which are laminated. The finish product would have extra enhanced properties in comparison with its original substances. The primary materials used includes oriented polypropylene (OPP) movie, polyester movie, polypropylene resin, cellulosic movie, nylon movie, specialty movies, linear low density polyethylene (LLDPE) film, metallised movies, aluminium foil, poster paper and polyethylene.

Advanced Packaging Technology (M) Bhd. manufactures many types of packaging supplies for a wide selection of merchandise that swimsuit both native and overseas markets. The merchandise embody snack foods, sweets and confectionery, frozen food, immediate noodles, spices, liquid condiments, drinks, medical and surgical products and pharmaceuticals and so forth. Advanced Packaging Technology (M) Bhd. work with clients to customize the designs to suit every packaging. The flexible packaging material used may tackle the shape of the product, change its color and dimension easily when needed. The materials is comprised of both single and multi-layers in roll or pouch/bag varieties. To ensure one of the best is supplied to their clients, Advanced Packaging Technology (M) Bhd’s quality management system was analysed by Zurich Certification Limited, United Kingdom. ISO 9002 is an industry standard created by the International Organization for Standardization. It requires businesses to a practice of creating a system to trace and ensure documents are documented correctly and audit by an independent third celebration. The company was certified to have comply with the BS EN ISO 9002:1994, normal on December 2000. Then, they have been also licensed ISO 9001:2000 on December 2003. It was later recertified BS EN ISO 9001:2008 and ISO 9001:2008 in 2010 and 2012 respectively. The certification scope covers Design, Manufacturing and Supply of Flexible Packaging Materials and Blown Film.

To keep up with this ever-changing modern world, Advanced Packaging Technologies (M) Bhd. have been constantly using specialised information and abilities, along with particular machinery and amenities to deliver excellence in high quality and service to their purchasers. Eventually, in search of ways to effectively produce packaging with higher and better quality. It is presently creating and producing Linear Low Density Polyethylene (LLDPE) movie for its internal consumption, exterior sales in addition to for products which makes contact with meals. This is because LLDPE has greater tensile power, greater impression resistance, excessive flexibility and elongates under stress. LLDPE has a higher softening level compared to others which makes it attainable to use for pre-packaging of hot foods. It has better efficiency traits at each excessive and low temperatures.It was additionally a cloth that was approved by FDA as meals secure back in 2013. LLDPE has good chemical resistance, water and vapor barrier and resistance which makes it appropriate for packaging products. LLDPE is also essentially the most flexible of plastic sheeting films. It allows manufacturers to make thinner movies without sacrificing strength, decreasing price and saving material.Therefore, making it a better possibility for packaging merchandise. These efforts in continuous advancement to provide better materials for packaging is to ensure secure delivery of the product especially consumable goods to the end-user in good situation at an affordable and economical cost. With LLDPE, Advanced Packaging Technologies (M) Bhd. can continue to increase their packaging providers not only to their present shoppers but additionally to a wider selection.

Advanced Packaging Technology (M) Bhd is an organization with many strong options. They are famously recognized for their versatile and multilayer packaging of products. Due to that , it has a very low danger of damaging products which might be packaged by this firm. When merchandise are in good condition , customers might be happy and may have an excellent impression of both the corporate that manufactured the product and packed the product. Thus , it’ll enhance the status of each the company and should result in extra business with other market produces who need help with packaging their merchandise. Furthermore , the manufacturing unit of Advanced Packaging Technologies (M) Bhd is located in a super and strategic location the place companies who wants to package deal their product can simply discover the manufacturing unit and office of Advanced Packaging Technologies (M) Bhd. Since the office and manufacturing facility are located in an urban area , prospects may have simpler entry to their location rather than it being in the outskirts. This may even easily cut back the transportation fees whereas transporting the products to and from the manufacturing facility. Moreover , the essential materials that are used to fabricate the packages are oriented polypropylene (OPP) film , cellulosic film , polyester , nylon, aluminium foil, metallised movies , specialty movies , linear low density polyethylene film , polyethylene and polypropylene resin. These basic materials are very easily found , therefore, they will manufacture their packages continually.

Other than that , this company could be very particular on their high quality assurance and high quality control. They guarantee to produce the highest high quality packaging persistently as they particularly have high quality assurance and quality control procedures all through the manufacturing course of. Overseeing these processes are experienced personnel who’ve subtle laboratory gear at their disposal. In addition, Advanced Packaging Technologies (M) Bhd. manufactures and sells prime quality flexible packaging materials primarily to reliable and reputable firms and niche market quite than competing for enterprise on mass volume at low pricing. This reveals that they’re extremely loyal to their present clients, not attempting to take advantage in every potential means. Not solely that, Advanced Packaging Technologies (M) Bhd. has been financing its operations in the course of the yr fully via internally generated funds as it has no bank borrowings. This is among the explanation why its liquidity has been very good.Advanced Packaging Technologies (M) Bhd just isn’t an ideal firm , it does have some flaws and weaknesses. Few of the weaknesses of this firm is that the scale of their manufacturing facility and workplace is small ; to be particular , 8903 square meters only. This will trigger them to have much less area for extra machineries and equipments and factory staff , hence , their manufacturing unit can’t produce the packaging for many products without delay. Besides, since Advanced Packaging Technologies (M) Bhd. manufactures and sells prime quality flexible packaging supplies mainly to reliable and reputable companies and area of interest market, their revenue is heavily relying on their major clients.

To illustrate, within the yr 2017, there have been lower gross sales orders of RM24.91 million from their major clients compared to 2016 of RM27.15 million. There was a lower in revenue by RM2.24 million or eight.25%; however, the Advanced Packaging Technology materials packaging are principally made out of plastic. People are getting concerned concerning the setting because of air pollution from plastic waste. It is thought that plastics take centuries to decompose and breakdown in a landfill and ocean. Therefore, harming marine life since many people still don’t practice recycling, reusing and lowering. A good instance Advanced Packaging Technologies (M) Bhd can follow and copy is that in Bangkok , Thailand , suppliers have started to follow the usage of banana leaves in replacement of plastics. This may also benefit the setting and status of firm if Advanced Packaging Material (M) Bhd can reduce or stop their use of plastic to fabricate their packaging product.Sluggish economy of the euro zero as well as slowdown in certain massive creating international locations like China also turned a threat to Advanced Packaging Technologies (M) Bhd. as they do manufactures and sells to overseas too. When the worldwide economic system is slowing down, it’s most probably firms like Advanced Packaging Technologies (M) Bhd shall be negatively affected. To add on, recent high crude oil worth and currency fluctuation have also added more stress and threatening the operation of the corporate. This is as a end result of larger crude oil price will have an effect on the resin costs and imported items and companies which will then have an effect on the plastic packaging business.

Conclusion

To sum up, the financial statement analysis of Advanced Packaging Technology may be segregated into three main parts that are profitability, liquidity and solvency. It was found that Advanced Packaging Technology is a not as worthwhile in the year 2017 as in comparability with 2016. This could be seen with the profit margin of 10.61% in 2016 and only 4.73% in 2017. Looking at the company’s liquidity side, a super current ratio is normally between 1.5 to 2.zero; nevertheless, Advanced Packaging Technology has a 4.82 present ratio. It signifies that the corporate is 4.eighty two times able to meet its short time period obligations. When the present ratio is simply too high, the company might have not been utilizing its present property or its short-term financing facilities effectively. This might also indicate the presence of problems in capital administration. Advanced Packaging Technology’s liquidity has been very good and it has no financial institution borrowings. Not solely that, Advanced Packaging Technology is claimed to be a extra financially secured firm briefly term with the excessive acid-test ratio of three.eighty three. The higher the acid-test ratio, the extra financially safe an organization is within the quick term, it offers a more rigorous assessment of a company’s capability to repay its current liabilities. Advance Packaging Technology can additionally be thought-about to have a excessive efficiency primarily based on the accounts receivable turnover of 4.35 occasions. This indicated that Advance Packaging Technology just isn’t facing any difficulties in collecting from their customers

Several comparability of current (2017) to past (2016) performances such as for accounts receivables, accounts payables, whole assets, complete liabilities and shareholders’ equity have been performed. There was a lower in accounts receivables by 12.3%. This reveals that Advanced Packaging Technology is having more collections from their customers than credit gross sales. Moreover, accounts payables have additionally decreased by 35.5%. This implies that Advanced Packaging Technology has paid off extra of its credit score purchases than the purchases made all through the fiscal interval. This reduces the operating cash circulate. Not only that, the total property, complete liabilities and whole shareholders’ equity compared to past efficiency have additionally decreased by 4.54%, 7.94% and 3.71% each. Every company together with Advanced Packaging Technologies (M) Bhd. will certainly have their strengths, weaknesses, alternatives and threats. Advanced Packaging Technologies (M) Bhd. strengths includes versatile and multilayer packaging materials, strategic location, strict high quality control and so forth; whereas, a few of their weaknesses are small manufacturing facility size they usually rely heavily on their major buyer for income. Some of the opportunities they can make use of to increase, improve and advance their company are ( ). Lastly, a few of the important threats faced by Advanced Packaging Technologies (M) Bhd. consists of sluggish economy, excessive uncooked materials costs, like crude oil as nicely as currency fluctuation.

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