MIRA
INFORM REPORT
|
Report Date : |
10.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
B. BRAUN MEDICAL INDUSTRIES SDN BHD |
|
|
|
|
Registered Office : |
Plot 164, Phase Ii, Bayan Lepas Free Industrial Zone, 11900 Bayan
Lepas, Pulau Pinang |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
14/06/1974 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturing of Medical and Surgical Equipment |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
* Adopted abbreviations : SC - Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 19051-M
COMPANY NAME : B. BRAUN MEDICAL INDUSTRIES SDN
BHD
FORMER NAME : CROLOK INDUSTRIES (
INCORPORATION DATE : 14/06/1974
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : PLOT 164, PHASE II, BAYAN LEPAS FREE
INDUSTRIAL
ZONE,
11900 BAYAN LEPAS, PULAU
BUSINESS ADDRESS : PLOT 164, PHASE II, BAYAN LEPAS FREE
INDUSTRIAL
ZONE,
11900 BAYAN LEPAS, PULAU
TEL NO : 04 - 6323100/3177
FAX NO : 04 - 6433750/7049
CONTACT PERSON : TAN HOCK GUAN (GENERAL MANAGER)
INDUSTRY CODE : 33110
PRINCIPAL ACTIVITY : MANUFACTURING OF MEDICAL AND SURGICAL
EQUIPMENT
AUTHORISED CAPITAL : MYR110,000,000.00 DIVIDED INTO
ORDINARY SHARE
110,000,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR100,630,000.00 DIVIDED INTO
ORDINARY SHARE
100,555,000
CASH AND 75,000 OTHERWISE OF MYR1.00
EACH.
SALES : MYR1,082,290,000
[2005]
NET WORTH : MYR452,636,000 [2005]
M1000 OVERALL RANKING : 274 [2004]
M1000 INDUSTRY RANKING : 3 [2004]
STAFF STRENGTH : 5,530
[2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : STABLE
PAYMENT : GOOD
MANAGEMENT CAPABILITY : GOOD
COMMERCIAL RISK : LOW
CURRENCY EXPOSURE : HIGH
GENERAL REPUTATION : GOOD
INDUSTRY OUTLOOK : MARGINAL GROWTH
HISTORY / BACKGROUND
The SC 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 SC must have at least two
directors. A private limited company is a separate legal entity from its shareholders.
As a separate legal entity, the SC 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 SC is
insolvent. The SC 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 SC is principally engaged in the (as a / as an) manufacturing of
medical and surgical equipment.
The SC is not listed on
The SC is one of the Top Corporate Performers in the
According to the
YEAR 2004
OVERALL RANKING 274
INDUSTRY RANKING 3
The immediate and ultimate holding company of the SC is B. BRAUN
MELSUNGEN AG, a company in incorporated in
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
B BRAUN MELSUNGEN AG POSTFACH 120, D34209 MELSUNGEN, 100,630,000
--------------------
100,630,000
===========
+ Also Director
The SC interest in other companies (Subsidiaries/Associates) are shown
as follows:
Local No Name (%) As At
56425 B.
BRAUN MEDICAL SUPPLIES SDN BHD 100.00 31/12/05
636191 TRANSCARE
HEALTHSERVICES
DIRECTORS
DIRECTOR 1
Name of Subject : H C LUDWIG GEORG BRAUN
IC / PP No. : P4435102739
Date of Appointment : 01/02/2005
DIRECTOR 2
Name of Subject : KIM HAE DONG
IC / PP No. : JR2554697
Date of Appointment : 13/12/2004
DIRECTOR 3
Name of Subject : MICHAEL WOLFGANG BECKER
IC / PP No. : P332604236
Date of Appointment : 13/12/2004
Remark : OLD P/P:P2498331848
DIRECTOR 4
Name of Subject : HEINZ WALTER GROSSE
IC / PP No. : 3533205274D
MANAGEMENT
1) Name of Subject : TAN
HOCK GUAN
Position : GENERAL MANAGER
2) Name of Subject : KIM
HAE DONG
Position : PRESIDENT
3) Name of Subject : YENNY
LIM
Position : VICE PRESIDENT
4) Name of Subject : MICHAEL
WOLFGANG BECKER
Position : VICE PRESIDENT
5) Name of Subject : E
P TAN
Position : LOGISTIC MANAGER
AUDITOR
Auditor : PRICEWATERHOUSECOOPERS
Auditors' Address :
COMPANY SECRETARY
1) Company Secretary : MR.
TAN HOCK GUAN
IC / PP No. : 4887667
New IC No. : 550901-07-5365
Address : 27, PERSIARAN
Date of Appointment : 01/10/1984
BANKING
Banking relations are maintained principally with :
1) Banker Name : MALAYAN
BANKING BHD
The SC enjoys normal banking routine with above mentioned banker(s).
No adverse record was found during our investigation.
ENCUMBRANCE (S)
No encumbrance was found in our databank at the time of investigation.
LEGAL CHECK AGAINST
THE SC
* A check has been
conducted in our databank against the SC whether the subject has been
involved in any
litigation. Our databank consists of 99% of the wound up companies in
back dated since 1900.
No legal action was found in our databank.
No winding up petition was found in our data bank
PAYMENT RECORD
SOURCES OF RAW MATERIALS :
Local : YES Percentage : 30%
Overseas : YES Percentage : 70%
Import Countries :
The SC 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 [ ] Good [ X ] Average [ ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES Percentage : 20%
Domestic Markets :
Overseas : YES Percentage : 80%
Export Market :
Credit Term : 60 - 90 DAYS.
Payment Mode : CHEQUES , TELEGRAPHIC TRANSFER (TT) ,
LETTER OF CREDIT (LC).
The SC sells its products to its related companies and healthcare
providers in Asia Pacific.
The SC exports its products to its headquarters in
The SC supplies the global healthcare market with products for
anesthesia, intensive medicine, cardiology, extra corporeal blood treatment and
surgery as well as services for hospitals, general practitioners and the
homecare sector.
OPERATIONS
Products Manufactured : DISPOSABLE VEIN PUNCTURE SETS,
INFUSION
ADMINISTRATION
SETS, BLOOD TRANSFUSION SETS, SURGICAL
SUTURES
& ALLIED PRODUCTS
Brand Name : B. BRAUN
Competitor(s) : MEDICAL-LATEX (DUA) SDN BHD
ALLIANCE-CARE
DEVICE SDN BHD
DXN
PHARMACEUTICAL SDN BHD
UG
MEDICAL DISPOSABLES SDN BHD
VIGILENZ
MEDICAL DEVICES SDN BHD
Ownership of premises : OWNED
Total Number of Employees :
YEAR 2007 2006 2005 2004
GROUP 5,530 5,510 5,705 5,373
COMPANY 4,500 4,500 4,341 4,017
Branch : NO
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA) database, but no latest
development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
Telephone Number Provided By Client : 604-8203100
Current Telephone Number : 04-6323100/3177
Match : NO
Address Provided By Client : INTERNATIONAL PROCUREMENT CENTRE,
BAYAN
LEPAS
FREE INDUSTRIAL ZONE,
10810
PENANG
Current Address : PLOT 164, PHASE II, BAYAN LEPAS FREE
INDUSTRIAL
ZONE, 11900 BAYAN LEPAS, PULAU
Match : NO
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with the SC's staff from Account Dept. She
furnished us some information on the SC. SC's General Manager, Finance. He
revealed some information pertaining to the SC.
We have verified and confirmed that the address, telephone and fax
number provided is not belongs to the SC as stated in your enquiry.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 17.44% ]
Profit / ( Loss ) before tax : Increased [ 81.57% ]
Return on Shareholder Funds : Acceptable [ 17.38% ]
Return on Net Assets : Acceptable [ 20.76% ]
The higher turnover could be attributed to the favourable market
condition and the SC could be gaining the market share progressively. The higher
profit could be attributed to the increase in turnover. The SC's management had
generated acceptable return for its shareholders using its assets.
Working Capital Control :
Stocks Ratio : Unfavourable [ 65 Days ]
Debtors Ratio : Acceptable [ 58 Days ]
Creditors Ratio : Favourable [ 17 Days ]
The SC could be incurring higher holding cost. As its capital was tied
up in stocks, it could face liquidity problems. The SC's management was quite
efficient in handling its debtors. The SC's debtors days were at an acceptable
range, thus the risk of its debts turning bad was minimised. The SC had a
favourable creditors' ratio as evidenced by its favourable collection days. The
SC could be taking advantage of the cash discounts and also wanting to maintain
goodwill with its creditors.
Liquidity :
Liquid Ratio : Acceptable [ 0.89 Times ]
Current Ratio : Unfavourable [ 1.39 Times ]
The SC's liquid ratio was slightly low. This could indicate that the
SC's working capital was slightly deficient. The SC 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 [ 21.29 Times ]
Gearing Ratio : Favourable [ 0.29 Times ]
The interest cover showed that the SC was able to service the interest.
The favourable interest cover could indicate that the SC was making enough
profit to pay for the interest accrued. The SC was lowly geared thus it had a
low financial risk. The SC was mainly financed by its shareholders' funds and
internally generated funds. In times of economic slowdown / downturn, the SC
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 SC's performance has improved with higher turnover and
profit.The SC's liquidity was at an acceptable range. If the SC 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 SC could be able to
service all the accrued interest without facing any difficulties. The SC 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 SC: STABLE
COMMENTS
Incorporated in 1974, the SC is principally engaged in the manufacturing
of medical and surgical equipments such as medical devices, solutions, wound
care and disinfectants. With a history coming to 33 years, the SC has gained
higher market share and built up a good reputation and image in the market with
a brand name of 'B. Braun'. A paid up capital of RM100,630,000 has allowed the
SC to compete well in the market. Being backed by its strong established
holding company, the SC is expected to enjoy timely assistance when the needs
arise. Its business position in the market is steady.
The SC's strong performances and good reputation has resulted in a
business network that extends to worldwide. Investigation revealed that the SC
concentrates mainly on the overseas market and its products are exported to
various countries such as
For the financial year 2005, the Group's financial performance shows an
upward trend. Its turnover and pre-tax profit had increased to RM1.08 billion
and RM0.99 billion respectively. Return on shareholders' funds of the Group is
at an acceptable level, indicating that the management has generated an
acceptable amount of profit based on its shareholders' funds. As the Group has
insufficient current assets to cover its current liabilities, it faces working
capital deficiency in meeting its short term obligations if no additional funds
injected into the Group. As a lowly geared company, the Group's financial risk
is low. Overall, the financial performance of the Group is stable.
We noted that 70% of the SC's products are obtained from overseas
market. Being an import and export-oriented company, the SC is deemed to be
exposed to high foreign exchange risk. As a well-known company, the SC should
have no problems in getting its raw materials when the needs arise.
Based on our historical financial data, we concluded that the SC's
pattern of payment habit is good. This implies good credit control and the SC
could be taking advantage of the cash discounts while maintaining a good
reputation with its creditors.
The industry is enjoying marginal growth and it is quite competitive.
With the normal outlook of the industry, the SC is required to adopt more
competitive strategies to strengthen its position in the market. As an
export-oriented company, the SC is not much influenced by the changes in the
local economy.
In view of the above, we recommend credit be granted to the SC normally.
THE FINANCIAL
STATEMENTS WERE PREPARED
IN ACCORDANCE WITH
STANDARD.
CONSOLIDATED
PROFIT AND LOSS ACCOUNT
For
The Year Ended 31-December-2005
2005 2004
MYR MYR
TURNOVER 1,082,290,000 921,544,000
=========== ===========
PROFIT/(LOSS) FROM OPERATIONS 99,003,000 54,527,000
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 99,003,000 54,527,000
Taxation <20,214,000> <16,342,000>
------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 78,789,000 38,185,000
Minority
interests <104,000> <146,000>
------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 78,685,000 38,039,000
------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 78,685,000 38,039,000
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported 270,919,000 232,885,000
------------------- -------------------
As restated 270,919,000 232,885,000
------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 349,604,000 270,924,000
TRANSFER TO
RESERVES - Statutory <129,000> <5,000>
------------------- -------------------
RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 349,475,000 270,919,000
=========== ===========
RETAINED BY: The Company 349,475,000 270,919,000
------------------- -------------------
349,475,000 270,919,000
=========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Other
interest expenses 4,880,000 4,798,000
------------------- -------------------
4,880,000 4,798,000
=========== ===========
CONSOLIDATED BALANCE
SHEET
As
At 31-December-2005
2005 2004
MYR MYR
ASSETS
EMPLOYED:
FIXED ASSETS 325,083,000 285,981,000
LONG
TERM INVESTMENTS/OTHER ASSETS
Investments 80,000 76,000
Deferred
taxation 10,089,000 6,047,000
------------------- -------------------
TOTAL LONG
TERM INVESTMENTS/OTHER ASSETS 10,169,000 6,123,000
INTANGIBLE
ASSETS
Goodwill on
consolidation 14,900,000 20,605,000
------------------- -------------------
TOTAL
INTANGIBLE ASSETS 14,900,000 20,605,000
------------------- -------------------
TOTAL LONG
TERM ASSETS 350,152,000 312,709,000
CURRENT
ASSETS
Stocks 192,966,000 188,220,000
Trade debtors 171,037,000 159,065,000
Other
debtors, deposits & prepayments 16,664,000 12,068,000
Items in
transit between head office & branches
Amount due
from related companies 147,295,000 94,729,000
Cash &
bank balances 6,005,000 11,297,000
Tax
recoverable 3,186,000 559,000
------------------- -------------------
TOTAL CURRENT
ASSETS 537,153,000 465,938,000
CURRENT
LIABILITIES
Trade
creditors 50,546,000 38,461,000
Other
creditors & accruals 50,412,000 45,817,000
Bank
overdraft 8,245,000 5,647,000
Other
borrowings 91,356,000 55,333,000
Amounts owing
to related companies 170,176,000 195,756,000
Provision for
taxation 16,152,000 8,016,000
------------------- -------------------
TOTAL CURRENT
LIABILITIES 386,887,000 349,030,000
------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) 150,266,000 116,908,000
------------------- -------------------
TOTAL NET
ASSETS 500,418,000 429,617,000
=========== ===========
FINANCED
BY:
SHARE CAPITAL
Ordinary
share capital 100,630,000 100,630,000
------------------- -------------------
TOTAL SHARE
CAPITAL 100,630,000 100,630,000
RESERVES
Capital
reserve 3,446,000 3,398,000
Revaluation
reserve 23,000 23,000
Exchange equalisation/fluctuation
reserve <1,683,000> <351,000>
General
reserve 745,000 617,000
Retained profit/(Accumulated loss)
carried
forward 349,475,000 270,919,000
------------------- -------------------
TOTAL
RESERVES 352,006,000 274,606,000
------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 452,636,000 375,236,000
MINORITY
INTEREST 602,000 719,000
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Long term
loans 32,491,000 42,629,000
Deferred
taxation 13,800,000 11,033,000
Retirement
benefits provision 889,000 -
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 47,180,000 53,662,000
------------------- -------------------
500,418,000 429,617,000
=========== ===========
CONSOLIDATED FINANCIAL
RATIOS
As
At 31-December-2005
B.
BRAUN MEDICAL INDUSTRIES SDN BHD
2005 2004
MYR MYR
TYPES OF
FUNDS
Cash 6,005,000 11,297,000
Net Liquid
Funds <2,240,000> 5,650,000
Net Liquid
Assets <42,700,000> <71,312,000>
Net Current Assets/(Liabilities) 150,266,000 116,908,000
Net Tangible
Assets 485,518,000 409,012,000
Net Monetary
Assets <89,880,000> <124,974,000>
BALANCE
SHEET ITEMS
Total
Borrowings 132,092,000 103,609,000
Total
Liabilities 434,067,000 402,692,000
Total Assets 887,305,000 778,647,000
Net Assets 500,418,000 429,617,000
Net Assets
Backing 453,238,000 375,955,000
Shareholders''
Funds 452,636,000 375,236,000
Total Share
Capital 100,630,000 100,630,000
Total
Reserves 352,006,000 274,606,000
LIQUIDITY
(Times)
Cash Ratio 0.02 0.03
Liquid Ratio 0.89 0.80
Current Ratio 1.39 1.33
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 65 75
Debtors Ratio 58 63
Creditors
Ratio 17 15
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.29 0.28
Liabilities
Ratio 0.96 1.07
Times Interest
Earned Ratio 21.29 12.36
PERFORMANCE
RATIO (%)
Operating
Profit Margin 9.15 5.92
Net Profit
Margin 7.27 4.13
Return On Net
Assets 20.76 13.81
Return On
Capital Employed 21.04 14.31
Return On
Shareholders'' Funds/Equity 17.38 10.14
Dividend Pay Out
Ratio (Times) 0 0
NOTES
TO ACCOUNTS
Contingent
Liabilities 13,060,000 12,190,000
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)