MIRA
INFORM REPORT
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Report Date : |
27.06.2007 |
IDENTIFICATION DETAILS
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Name : |
METTUBE SDN BHD |
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Registered Office : |
East Wing, Igb Plaza, Jalan Kampar, Off Jalan Tun Razak,
20th Floor, 50400 Kuala Lumpur |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
15/05/1989 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacture, |
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 |
* Adopted abbreviations : SC - Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 181893-H
COMPANY NAME : METTUBE SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 15/05/1989
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : EAST WING,
RAZAK,
20TH FLOOR, 50400
BUSINESS ADDRESS : NO 2, PERSIARAN KUALA LANGAT, HICOM INDUSTRIAL
ESTATE, SECTION 27, 40400 SHAH ALAM, SELANGOR,
TEL NO : 03 - 51915444/51023288
FAX NO : 03 - 51915405
EMAIL : marketing@mettube.com
WEB SITE : www.mettube.com
CONTACT PERSON : PRATIK BASU (MANAGING DIRECTOR)
INDUSTRY CODE : 28910
PRINCIPAL ACTIVITY : MANUFACTURE,
GROOVE TUBES
AUTHORISED CAPITAL : MYR500,000,000.00 DIVIDED INTO ORDINARY SHARE
500,000,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR37,000,000.00 DIVIDED INTO ORDINARY SHARE
37,000,000 CASH OF MYR1.00 EACH.
SALES : MYR526,489,259 [2005]
NET WORTH : MYR170,551,714 [2005]
M1000 OVERALL RANKING : 672 [2005]
M1000 INDUSTRY RANKING : 15 [2005]
STAFF STRENGTH : 400 [2007]
BANKER (S) : RHB BANK BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : FAIR
PAYMENT : N/A
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : HIGH
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) manufacture, sale of plain & inner copper groove tubes.
The SC is not listed on
The SC is one of the Top Corporate Performers in the
According to the
YEAR 2005 2004
OVERALL RANKING 672 553
INDUSTRY RANKING 15 11
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
METTUBE
HOLDINGS S A RHONE,
PO
--------------------
37,000,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. YAP KIM SWEE
Address : 12-7-5, ROBSON CONDOMINIUM, PERSIARAN SYED PUTRA 2,
50460
IC / PP No. : 7876595
New IC No : 470920-10-5881
Date of Birth : 20/09/1947
Nationality : MALAYSIAN CHINESE
Date of Appointment : 29/11/2004
DIRECTOR 2
Name of Subject : DATUK ABU HASSAN BIN KENDUT
Address : 23, JALAN BURHANUDDIN HELMI,
IC / PP No. : 3574587
New IC No : 420909-04-5093
Date of Birth : 09/09/1942
Nationality : MALAYSIAN MALAY
Date of Appointment : 29/11/2004
Working Experience : HE HAS
BEEN THE CHAIRMAN OF "CIMA" SINCE 16 OCTOBER 2001. HE
STARTED
HIS CAREER AS AN AUDITOR IN TURQUAND YOUNGS & CO
IN
1961 AND LEFT THE COMPANY IN 1971 TO JOIN MALAYSIAN
AIRLINES
SYSTEM BHD AS ACCOUNTS MANAGER. HE THEN JOINED
COOPERS
AND LYBRAND IN 1974 AND RETIRED AS A SENIOR
PARTNER
OF THE FIRM 1997. HE WAS ALSO THE PRESIDENT OF
MACPA
AND ASEAN FEDERATION OF ACCOUNTANTS.
Other Info : HE IS A MEMBER OF THE MALAYSIAN ASSOCIATION OF CERTIFIED
PUBLIC
ACCOUNTANTS (MACPA) AND THE MALAYSIAN INSTITUTE OF
ACCOUNTANTS
(MIA). HE WAS A MEMBER OF THE CORPORATE DEBT
RESTRUCTURIBNG
COMMITTEE OF BANK NEGARA
EMPLOYEES
PROVIDENT FUND BOARD AS WELL AS A MEMBER OF
CAPITAL
ISSUES COMMITTEE AND AUDIT LICENSE COMMITTEE OF
THE
MINISTRY FINANCE.
DIRECTOR 3
Name of Subject : DATO'
HJ AZLAN BIN HASHIM
Address : 35, PERSIARAN DUTA, TAMAN DUTA, 50480
WILAYAH
IC / PP No. : 4475109
New IC No : 410906-10-5119
Date of Birth : 06/09/1941
Nationality : MALAYSIAN MALAY
Date of Appointment : 31/12/1996
Qualification : ACCOUNTANCY FROM
Working Experience : RETURNED
TO
ASSISTANT
CHIEF ACCOUNTANT OF MALAYAN RAILWAYS. HE WAS
PROMOTED
TO CHIEF ACCOUNTANT IN 1970, A POST HE HELD FOR 2
YEARS,
BEFORE LEAVING IN 1972 TO BECOME A PARTNER IN HIS OWN
ACCOUNTANCY
FIRM. HE HAS BEEN THE EXECUTIVE VICE CHAIRMAN
OF
ARAB-MALAYSIAN CORPORATION BHD SINCE OCTOBER 1991.
Other Info : FELLOW OF THE INSTITUTE OF CHARTERED ACCOUTANTS (
MEMBER
OF THE MACPA, FELLOW OF THE ECONOMIC DEVELOPMENT
INSTITUTE,
FELLOW OF THE
DIRECTOR 4
Name of Subject : PRATIK
BASU
Address : 27, JALAN MAMBU, BUKIT BANDARAYA, BANGSAR, 59100 KUALA
LUMPUR,
WILAYAH
IC / PP No. : Z1714106
Nationality : SWISS
Date of Appointment : 31/03/1997
Remark : OLD P/P:A8914461 & Z1621059
MANAGEMENT
1) Name of Subject : PRATIK
BASU
Position : MANAGING
DIRECTOR
2) Name of Subject : SUKHVINDER
SINGH
Position : ACCOUNT
MANAGER
3) Name of Subject : RAGHAV
MITTAL
Position : FINANCE
DIRECTOR
4) Name of Subject : MANICKAM
KRISHNAN
Position : OPERATIONS
DIRECTOR
5) Name of Subject : ASHOK
Position : PRODUCTION
CONTROL MANAGER
AUDITOR
Auditor : PRICEWATERHOUSECOOPERS
Auditors' Address : STANDARD
CHATERED BANK CHAMBERS, 21-27 JALAN DATO
MAHARAJALELA,
1ST FLOOR
COMPANY SECRETARY
1) Company Secretary : MS.
WONG WAI FOONG
IC / PP No. : A0379022
New IC No. : 660510-10-6838
Address : 1164,
JALAN 17/46, HAPPY GARDEN, 46400 PETALING JAYA,
Date of Appointment : 01/03/2005
2) Company Secretary : MR.
YEAP KOK LEONG
IC / PP No. : 6081387
New IC No. : 601107-10-5771
Address : 11,
JALAN 2/149G, TAMAN SRI ENDAH, 57000
WILAYAH
Date of Appointment : 28/11/1995
BANKING
Banking relations
are maintained principally with :
1) Banker Name : RHB BANK 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 : NO Percentage : 0
%
Overseas : YES Percentage : 100%
Import Countries :
The SC refused to
furnish us with the suppliers' names. Without the financial accounts, we are
not able to comment on the SC's payment habit.
CLIENTELE
Local : YES Percentage : 10%
Domestic Markets :
Overseas : YES Percentage : 90%
Export Market : UNITED
Credit Term : 30 DAYS.
Payment Mode : CHEQUES
, TELEGRAPHIC TRANSFER (TT).
Type of Customer : MANUFACTURING
INDUSTRIES .
CUSTOMER (S) : 1)
CARRIER INTERNATIONAL SDN BHD
: 2) OYL GROUP
OPERATIONS
Products
Manufactured : PLAIN & INNER COPPER GROOVE TUBES
Brand Name : METTUBE
Shifts : 3 (24 HOURS)
Total Number of
Employees :
YEAR 2007 2006
GROUP N/A N/A
COMPANY 400 420
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 : 51023248
Current Telephone
Number : 03-51915444/51023288
Match : YES
Address Provided By
Client : NO 2, PERSIARAN KUALA LANGAT, SECTION
27,
HICOM
INDUSTRIAL ESTATE 40400 SHAH ALAM,
SELANGOR
Current Address : NO 2, PERSIARAN KUALA LANGAT, HICOM
INDUSTRIAL
ESTATE, SECTION 27, 40400 SHAH
ALAM,
Match : YES
Latest Financial
Accounts : YES
Other
Investigations
On 19th June 2007,
we conducted an interview with the SC's staff, Ms Liana. She furnished us some
information.
FINANCIAL COMMENTS
The financial
summary of the SC in Year 2005 showed that it was financially FAIR. The SC has
generated an acceptable return on its shareholders' funds, indicating that the
SC was efficient in utilizing its shareholders' funds to generate favourable
returns. Besides this, it also has an adequate liquidity position with its
current liabilities well covered by its current assets. With its net current
assets, the SC should be able to repay its short term obligations. However, the
SC has high liabilities ratio and it may face financial difficulties if no
additional capital is injected.
Overall financial
condition of the SC: FAIR
COMMENTS
Incorporated in
1989, the SC is principally engaged in the manufacture, sale of plain and inner
copper groove tubes. The SC has been in the business for 18 years. Over its
years of establishment, the SC should have built up goodwill and extensive
clientele base which has contributed to the SC's business growth. With RM37
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 market as 90% income are
generated from the overseas market. With the concentration on the overseas
market, the SC is unlikely to be affected by the uncertainties in the local
economy and this has benefited the SC in terms of higher earnings. However,
being an international player, the SC is subjected to certain inherent risks of
foreign currencies fluctuation and stiff competition from the international
market. As a whole, the commercial risk of the SC is moderate. At present the
workforce of the SC is 400 and the management of the SC is overseen by Managing
Director Pratik Basu. Overall the management capability of the SC is average.
Based on its latest
financial statements as at 31 Dec, 2005 the SC registered higher pre-tax profit
of RM26.8 million on the back of a RM526.48 million in turnover. The SC
generated an acceptable return on shareholder's fund indicating that the
management was efficient in utilising the company's assets to generate income.
Besides that, the SC possesses an adequate liquidity position with its current
liabilities well covered by its current assets. With its net current assets,
the SC should be able to repay its short term obligations. However, the SC has
high liabilities ratio and it has placed the SC in high financial risk.
Nonetheless, the SC should be able to maintain its business in the near term,
given a positive networth standing at RM170.55 million.
The SC is exposed to
forex risk as 100% of its supplies are sourced from overseas countries. Thus, a
small movement in currency exchange rates would result in a change in operating
profit or costs.
The SC is clear of
litigation.
The potential growth
for the industry is marginal and it is quite competitive. It is much dependent on
the SC's capacity in sustaining its performance in the market. As the SC is
long presence in the market, it should have acquired competitive edge against
other players in the same fields.
In view of the above
we recommend credit be granted to the SC normally.
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH
PROFIT
AND LOSS ACCOUNT
METTUBE
SDN BHD
31-December-2005
Consolidated
Accounts : No
UnQualified
Reports : Yes
RM
Turnover 526,489,259.00
Operating
Revenue 0.00
----------------------------
Profit
/ (Loss) Before Tax 26,861,192.00
----------------------------
Profit
/ (Loss) After Tax 22,760,859.00
Extraordinary
Item 0.00
Minority
Interest 0.00
----------------------------
Profit/(Loss)
Attributable to Shareholders 22,760,859.00
----------------------------
Prior
Period Adjustment 0.00
Net
Dividend 3,700,000.00
Transferred
To/From Reserved 0.00
Others 0.00
----------------------------
Unappropriated
Profit/(Loss) Brought Forward 114,490,855.00
----------------------------
Unappropriated
Profit/(Loss) Carried Forward 133,551,714.00
================
BALANCE SHEET
METTUBE
SDN BHD
31-December-2005
Consolidated
Accounts : No
UnQualified
Reports : Yes
RM
Fixed
Assets 110,865,907.00
Total
Investment 0.00
Amount
Owing By 0.00
Current
Assets 245,533,655.00
Intangible
Assets 0.00
Other
Assets 28,500,000.00
----------------------------
Total
Assets 384,899,562.00
================
Working
Capital 35,857,977.00
Issued
Capital 37,000,000.00
Paid
Up Capital 37,000,000.00
Share
Premium & Reserved 0.00
Unappropriated
Profit/(Loss) 133,551,714.00
----------------------------
Shareholder's
Fund/Equity 170,551,714.00
----------------------------
Current
Liabilities 209,675,678.00
Amount
Owing To 0.00
Long-term
and Deferred Liabilities 4,672,170.00
Share
Application Account 0.00
Minority
Interest 0.00
----------------------------
Total
Equity Liability 384,899,562.00
================
Contingent
Liabilities 0.00
THE FINANCIAL
STATEMENTS WERE PREPARED
IN ACCORDANCE WITH
PROFIT AND LOSS
ACCOUNT
For
The Year Ended 31-December-2004
METTUBE
SDN BHD
2004 2003
MYR MYR
TURNOVER 414,357,079 288,715,106
=========== ===========
PROFIT/(LOSS)
FROM OPERATIONS 21,830,804 21,180,411
SHARE OF PROFITS/(LOSSES) OF
ASSOCIATED
------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 21,830,804 21,180,411
Taxation <5,276,739> <3,293,867>
------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 16,554,065 17,886,544
------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 16,554,065 17,886,544
------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 16,554,065 17,886,544
RETAINED PROFIT/(ACCUMULATED LOSS)
BROUGHT
FORWARD
As previously reported 103,486,790 85,600,246
------------------- -------------------
As restated 103,486,790 85,600,246
------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 120,040,855 103,486,790
DIVIDENDS
- Ordinary (paid & proposed) <5,550,000> -
------------------- -------------------
RETAINED PROFIT/(ACCUMULATED LOSS)
CARRIED
FORWARD 114,490,855 103,486,790
=========== ===========
RETAINED
BY: The Company 114,490,855 103,486,790
------------------- -------------------
114,490,855 103,486,790
=========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Other interest expenses 2,599,644 3,088,700
------------------- -------------------
2,599,644 3,088,700
=========== ===========
BALANCE SHEET
As
At 31-December-2004
METTUBE
SDN BHD
2004 2003
MYR MYR
ASSETS EMPLOYED:
FIXED
ASSETS 121,159,179 135,574,052
LONG
TERM INVESTMENTS/OTHER ASSETS
Deferred assets 32,599,953 37,853,983
------------------- -------------------
TOTAL
LONG TERM INVESTMENTS/OTHER ASSETS 32,599,953 37,853,983
INTANGIBLE
ASSETS
------------------- -------------------
------------------- -------------------
TOTAL
LONG TERM ASSETS 153,759,132 173,428,035
CURRENT
ASSETS
Stocks 47,267,016 27,954,338
Trade debtors 90,572,666 65,898,922
Other debtors, deposits & prepayments 744,314 690,804
Short term loans & advances 452,954 384,555
Items in transit between head office & branches
Cash & bank balances 1,682,584 15,497,722
------------------- -------------------
TOTAL
CURRENT ASSETS 140,719,534 110,426,341
CURRENT
LIABILITIES
Trade creditors 44,220,489 41,107,367
Other creditors & accruals 684,452 1,267,465
Bank overdraft 865,877 813,722
Short term borrowings/Term loans 88,121,437 92,955,565
Other borrowings 3,543,467 3,680,000
Provision for taxation 2,089 -
Dividends payable/proposed 5,550,000 -
------------------- -------------------
TOTAL
CURRENT LIABILITIES 142,987,811 139,824,119
------------------- -------------------
NET
CURRENT ASSETS/(LIABILITIES) <2,268,277> <29,397,778>
------------------- -------------------
TOTAL
NET ASSETS 151,490,855 144,030,257
=========== ===========
FINANCED
BY:
SHARE
CAPITAL
Ordinary share capital 37,000,000 37,000,000
------------------- -------------------
TOTAL
SHARE CAPITAL 37,000,000 37,000,000
RESERVES
Retained profit/(Accumulated loss) carried
forward 114,490,855 103,486,790
------------------- -------------------
TOTAL
RESERVES 114,490,855 103,486,790
------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 151,490,855 140,486,790
LONG
TERM & DEFERRED LIABILITIES & PROVISIONS
Other long term borrowings - 3,543,467
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS - 3,543,467
------------------- -------------------
151,490,855 144,030,257
=========== ===========
FINANCIAL RATIOS
As
At 31-December-2004
METTUBE
SDN BHD
2004 2003
MYR MYR
TYPES OF FUNDS
Cash 1,682,584 15,497,722
Net Liquid Funds <87,304,730> <78,271,565>
Net Liquid Assets <49,535,293> <57,352,116>
Net Current Assets/(Liabilities) <2,268,277> <29,397,778>
Net Tangible Assets 151,490,855 144,030,257
Net Monetary Assets <49,535,293> <60,895,583>
BALANCE
SHEET ITEMS
Total Borrowings 92,530,781 100,992,754
Total Liabilities 142,987,811 143,367,586
Total Assets 294,478,666 283,854,376
Net Assets 151,490,855 144,030,257
Net Assets Backing 151,490,855 140,486,790
Shareholders'' Funds 151,490,855 140,486,790
Total Share Capital 37,000,000 37,000,000
Total Reserves 114,490,855 103,486,790
LIQUIDITY
(Times)
Cash Ratio 0.01 0.11
Liquid Ratio 0.65 0.59
Current Ratio 0.98 0.79
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 42 35
Debtors Ratio 80 83
Creditors Ratio 39 52
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.61 0.72
Liabilities Ratio 0.94 1.02
Times Interest Earned Ratio 9.40 7.86
PERFORMANCE
RATIO (%)
Operating Profit Margin 5.27 7.34
Net Profit Margin 4.00 6.20
Return On Net Assets 16.13 16.85
Return On Capital Employed 10.16 10.21
Return On Shareholders'' Funds/Equity 10.93 12.73
Dividend Pay Out Ratio (Times) 0.34 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/normal. |
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%)