MIRA
INFORM REPORT
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Report Date : |
13.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
RONDO METAL PRODUCTS SDN BHD |
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Registered Office : |
Unit 07-02, Menara Luxor, 6B Persiaran Tropicana, Level 7, 47410
Petaling Jaya, Selangor, |
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Country : |
Malaysia |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
01.06.2004 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer of Metal Building Material |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
EXECUTIVE SUMMARY
LOCAL NO :
654500-M
COMPANY NAME :
RONDO METAL PRODUCTS SDN BHD
FORMER NAME :
N/A
INCORPORATION DATE :
01/06/2004
COMPANY STATUS :
EXIST
LEGAL STATUS :
PRIVATE LIMITED COMPANY
LISTED STATUS :
NO
REGISTERED ADDRESS :
UNIT 07-02, MENARA LUXOR, 6B PERSIARAN TROPICANA,
LEVEL 7, 47410 PETALING JAYA, SELANGOR,
MALAYSIA.
BUSINESS ADDRESS :
LOT 606, OFF JLN SS 13/1K, 47500 SUBANG JAYA, SELANGOR,
MALAYSIA.
TEL NO :
03 - 56368868
FAX NO :
03 - 56367669
CONTACT PERSON :
YIM FONG MUN (OPERATIONS MANAGER)
INDUSTRY CODE :
28110
PRINCIPAL ACTIVITY :
MANUFACTURER OF METAL BUILDING MATERIAL
AUTHORISED CAPITAL :
MYR5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL :
MYR5,000,000.00 DIVIDED INTO
ORDINARY
SHARE 4,518,000 CASH AND 482,000 OTHERWISE
OF MYR1.00 EACH.
SALES :
MYR8,229,398 [2006]
NET WORTH :
MYR5,681,674 [2006]
STAFF STRENGTH :
25 [2007]
BANKER (S) :
MALAYAN BANKING BHD
LITIGATION :
CLEAR
FINANCIAL CONDITION :
STRONG
PAYMENT :
GOOD
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK :
MODERATE
CURRENCY EXPOSURE :
MODERATE
GENERAL REPUTATION :
SATISFACTORY
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) manufacturer of metal building material.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is not qualified to be one of the Top Corporate Performers in the
Malaysia 1000 (M1000) publication, a directory jointly published by Companies
Commission of Malaysia (The Registrar Office), Minister of Domestic Trade and
Consumer Affairs and our publication arm, BASIS Publications House Sdn Bhd.
The immediate and ultimate holding company of the SC is RONDO BUILDING
SERVICES PTY LIMITED, a company incorporated in AUSTRALIA.
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
RONDO BUILDING SERVICES 3-33,
GLOSSOP STREET, ST MARYS, NSW, 5,000,000
PTY LTD 2760, AUSTRALIA.
--------------------
5,000,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : DATO'
PUVANENDRAN S/O M NANNITHAMBY
Address : 33
JALAN SS 19/4E, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.
IC / PP No. :
8161844
New IC No :
540525-10-5807
Date of Birth :
25/05/1954
Nationality :
MALAYSIAN INDIAN
DIRECTOR 2
Name of Subject : MR.
WILLIAM ROSS BATSTONE
Address :
30, THE GROVE MOSMAN NSW, 2088 NSW, AUSTRALIA.
IC / PP No. :
L5424579
Nationality :
AUSTRALIAN
DIRECTOR 3
Name of Subject : DATIN
MANJIT KAUR D/O SURIAN SINGH
Address : 33
JALAN SS 19/4E, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.
IC / PP No. :
8202760
New IC No :
560508-08-6104
Nationality :
MALAYSIAN OTHER
DIRECTOR 4
Name of Subject : MR.
JOHN WILLEM WINTRAAKEN
Address :
50, BRINDABELLA PLACE COOMERA, 4209 QUEENSLAND, AUSTRALIA.
IC / PP No. :
L9275870
Nationality :
AUSTRALIAN
DIRECTOR 5
Name of Subject : MR. SOH
CHIN TECK
Address : 1,
JALAN 31/69B, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.
IC / PP No. :
5445067
New IC No :
580113-10-5225
Nationality :
MALAYSIAN CHINESE
DIRECTOR 6
Name of Subject : MR.
DAVIS ONG WEE CHOON
Address : 37,
JURONG EAST AVE 1, #12-06, 609775, SINGAPORE.
IC / PP No. :
S1239745C
Nationality :
SINGAPOREAN
MANAGEMENT
Name of Subject : YIM
FONG MUN
Position :
OPERATIONS MANAGER
Name of Subject : KHOO
LAY YON
Position :
ACCOUNTANT
AUDITOR
Auditor :
DELOITTE KASSIMCHAN
Auditors' Address :
UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA UPTOWN, LEVEL 19, 47400
PETALING JAYA, SELANGOR, MALAYSIA.
COMPANY SECRETARY
Company Secretary : MS. WONG
YOUN KIM
IC / PP No. :
A1617285
New IC No. :
700823-10-5530
Address :
1041, JALAN KUANG GUNUNG 4, TAMAN KEPONG, 52100 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
BANKING
Banking relations are maintained principally with :
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 Malaysia 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
Overseas :
YES
Import Countries :
SINGAPORE.
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
Domestic Markets :
MALAYSIA.
Overseas :
YES
Export Market :
DUBAI , INDIA , MACAU.
Credit Term : AS
AGREED.
Payment Mode : CHEQUES
, LETTER OF CREDIT (LC) , TELEGRAPHIC TRANSFER (TT).
Type of Customer :
CONSTRUCTION INDUSTRY .
OPERATIONS
Products Manufactured :
DRY WALL SYSTEM
Ownership of premises :
LEASED/RENTED
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 25 14 11
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 :
60356368868/56292000
Current Telephone Number :
03-56368868
Match :
YES
Address Provided By Client :
LOT 606, OFF JLN SS 13/1K, 47500, SUBANG JAYA, SELANGOR.
Current Address : LOT 606, OFF JLN SS
13/1K, 47500 SUBANG JAYA, SELANGOR,
MALAYSIA.
Match :
YES
Latest Financial Accounts :
YES
Other Investigations
We contacted the SC's Accountant, Ms Khoo lay Yon. She provided some information
on the SC. Later we contacted one of the Senior Sales staff for further
information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 221.82% ]
Profit / ( Loss ) before tax : Decreased [ <
2046.26% > ]
Return on Shareholder Funds : Acceptable [ 13.09% ]
Return on Net Assets : Acceptable [ 20.47% ]
The increase in turnover could be due to the SC adopting an aggressive
marketing strategy. The management had succeeded in turning the SC into a
profit making company. The profit could be due to better control of its
operating costs and efficiency in utilising its resources. The SC's management
had generated acceptable return for its shareholders using its assets.
Working Capital Control :
Stocks Ratio : Unfavourable [ 117 Days ]
Debtors Ratio : Unfavourable [ 84 Days ]
Creditors Ratio : Favourable [ 38 Days ]
The SC could be incurring higher holding cost. As its capital was tied
up in stocks, it could face liquidity problems. The high debtors' ratio could
indicate that the SC was weak in its credit control. However, the SC could also
giving longer credit periods to its customers in order to boost its sales or to
capture / retain its market share. 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 : Favourable [ 1.90 Times ]
Current Ratio : Favourable [ 3.55 Times ]
A minimum liquid ratio of 1 should be maintained by the SC in order to
assure its creditors of its ability to meet short term obligations and the SC
was in a good liquidity position. Thus, we believe the SC is able to meet all
its short term obligations as and when they fall due.
Solvency :
Interest Cover : Nil [ 0.00 Times ]
Gearing Ratio : Favourable [ 0.00 Times ]
The SC's interest cover was nil as it did not pay any interest during
the year. The SC had no gearing and hence it had virtually no financial risk.
The SC was financed by its shareholders' funds and internally generated fund.
During the economic downturn, the SC, having a zero gearing, will be able to
compete better than those which are highly geared in the same industry.
Overall Assessment :
The higher turnover had helped to reduce the SC's losses.The SC was in
good liquidity position with its total current liabilities well covered by its
total current assets. With its current net assets, the SC should be able to
repay its short term obligations.The SC did not make any interest payment
during the year. The SC was dependent on its shareholders' funds to finance its
business needs.The SC was a zero gearing company, it was solely dependant on
its shareholders to provide funds to finance its business. The SC has good
chance of getting loans, if the needs arises.
Overall financial condition of the SC: STRONG
COMMENTS
Established in 2004, the SC is principally engaged as a manufacturer of
metal building material. Throughout its year of establishment, the SC has
building up contact with its clients and competing in the industry. Being
backed by the holding company allows the SC to enjoy the benefit of timely
financial assistance if the needs arise. With these favourable conditions, the
SC has minimised its risk in the industry compared to other players. With RM5
million in issued and paid up capital, the SC has the potential of capturing a
higher market shares as it is competing aggressively in the market.
Our investigation revealed that the SC serves both local and overseas
clients. Penetrating into the overseas countries such as Dubai, India and Macau
has well diversified its business risk and at the same time added strength to
its capabilities in capturing higher market shares. At present the workforce of the SC is 25 and the SC's business
activities are headed by Yim Fong Mun. Overall the management capability of the
SC is average.
Based on the latest financial year 2006, the SC posted pre-tax profit of
RM1.2 million and its turnover stood at RM8.22 million. The SC generated an
acceptable return on shareholders' funds indicating that the SC was efficient
in utilising its shareholders' funds to generate favourable returns. Good cash
flow management has enabled the SC to meet its short term obligations.
Moreover, being a zero geared company,
the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its
business. Given a healthy net worth standing at RM5.68 million, the SC should
be able to maintain its business in the near terms.
Investigation revealed that the SC sources its raw materials from both
local and overseas countries. As a result, the SC is exposed to foreign
currency fluctuation risk.
Based on its financial historical data, the SC's payment pattern is
good.
The industry is generally stable. The potential growth for the industry
is marginal and it is quite competitive. It is very much dependent on the SC's
capacity in sustaining its performance in the market. With the SC's strong
background, it should have better competitive edge against other players.
In view of the above we recommend credit be granted to the SC normally.
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING
STANDARD.
PROFIT AND LOSS
ACCOUNT
For The Year Ended 30-June-2006
13
month
2006 2005
MYR MYR
TURNOVER 8,229,398 2,557,136
=========== ===========
PROFIT/(LOSS)
FROM OPERATIONS 1,208,823 <62,110>
SHARE OF PROFITS/(LOSSES) OF
ASSOCIATED
------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 1,208,823 <62,110>
Taxation <465,039> -
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PROFIT/(LOSS)
AFTER TAXATION 743,784 <62,110>
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 743,784 <62,110>
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PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 743,784 <62,110>
RETAINED PROFIT/(ACCUMULATED LOSS)
BROUGHT
FORWARD
As
previously reported <62,110> -
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As
restated <62,110> -
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PROFIT
AVAILABLE FOR APPROPRIATIONS 681,674 <62,110>
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RETAINED PROFIT/(ACCUMULATED LOSS)
CARRIED
FORWARD 681,674 <62,110>
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RETAINED
BY: The Company 681,674 <62,110>
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681,674 <62,110>
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INTEREST
EXPENSE (as per notes to P&L)
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BALANCE SHEET
As At 30-June-2006
13
month
2006 2005
MYR MYR
ASSETS EMPLOYED:
FIXED
ASSETS 1,825,346 1,758,963
LONG
TERM INVESTMENTS/OTHER ASSETS
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INTANGIBLE
ASSETS
------------------- -------------------
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TOTAL
LONG TERM ASSETS 1,825,346 1,758,963
CURRENT
ASSETS
Stocks 2,644,741 3,519,121
Trade
debtors 1,897,137 834,500
Other
debtors, deposits & prepayments 81,574 88,223
Short
term deposits 650,000 -
Items in transit between head
office & branches
Cash
& bank balances 407,938 498,007
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TOTAL
CURRENT ASSETS 5,681,390 4,939,851
CURRENT
LIABILITIES
Trade
creditors 848,422 1,476,138
Other
creditors & accruals 72,204 16,045
Amounts
owing to holding company - 3,809,741
Amounts
owing to director 661,449 -
Provision
for taxation 19,987 -
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TOTAL
CURRENT LIABILITIES 1,602,062 5,301,924
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NET
CURRENT ASSETS/(LIABILITIES) 4,079,328 <362,073>
------------------- -------------------
TOTAL
NET ASSETS 5,904,674 1,396,890
=========== ===========
FINANCED
BY:
SHARE
CAPITAL
Ordinary
share capital 5,000,000 1,459,000
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TOTAL
SHARE CAPITAL 5,000,000 1,459,000
RESERVES
Retained profit/(Accumulated loss)
carried
forward 681,674 <62,110>
------------------- -------------------
TOTAL
RESERVES 681,674 <62,110>
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SHAREHOLDERS'
FUNDS/EQUITY 5,681,674 1,396,890
LONG
TERM & DEFERRED LIABILITIES & PROVISIONS
Deferred
taxation 223,000 -
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 223,000 -
------------------- -------------------
5,904,674 1,396,890
=========== ===========
FINANCIAL RATIOS
As At 30-June-2006
13
month
2006 2005
MYR MYR
TYPES OF FUNDS
Cash 1,057,938 498,007
Net
Liquid Funds 1,057,938 498,007
Net
Liquid Assets 1,434,587 <3,881,194>
Net Current
Assets/(Liabilities) 4,079,328 <362,073>
Net
Tangible Assets 5,904,674 1,396,890
Net
Monetary Assets 1,211,587 <3,881,194>
BALANCE
SHEET ITEMS
Total
Borrowings 0 0
Total
Liabilities 1,825,062 5,301,924
Total
Assets 7,506,736 6,698,814
Net Assets 5,904,674 1,396,890
Net
Assets Backing 5,681,674 1,396,890
Shareholders''
Funds 5,681,674 1,396,890
Total
Share Capital 5,000,000 1,459,000
Total
Reserves 681,674 <62,110>
LIQUIDITY
(Times)
Cash
Ratio 0.66 0.09
Liquid
Ratio 1.90 0.27
Current
Ratio 3.55 0.93
WORKING
CAPITAL CONTROL (Days)
Stock
Ratio 117 502
Debtors
Ratio 84 119
Creditors
Ratio 38 211
SOLVENCY
RATIOS (Times)
Gearing
Ratio 0 0
Liabilities
Ratio 0.32 3.80
Times
Interest Earned Ratio 0 0
PERFORMANCE
RATIO (%)
Operating
Profit Margin 14.69 <2.43>
Net
Profit Margin 9.04 <2.43>
Return
On Net Assets 20.47 <4.45>
Return
On Capital Employed 20.47 <4.45>
Return
On Shareholders'' Funds/Equity 13.09 <4.45>
Dividend
Pay Out Ratio (Times) 0 0
NOTES
TO ACCOUNTS
Contingent
Liabilities 0 0
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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)