MIRA
INFORM REPORT
|
Report Date : |
01.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
NRS-ASIA (M) SDN BHD |
|
|
|
|
Registered Office : |
24-5-2, Jalan 2/101c, Cheras Business Centre, Batu 5,
Jalan Cheras, 56100 Kuala Lumpur, Wilayah Persekutuan |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
24/04/1997 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Design and Supply of Construction Equipments for Concrete Bridges and Management of Engineering Services |
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 : 428738-K
COMPANY NAME : NRS-ASIA (M) SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 24/04/1997
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : 24-5-2, JALAN 2/101C, CHERAS BUSINESS CENTRE, BATU
5, JALAN CHERAS, 56100 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
BUSINESS ADDRESS : 23A-1, JALAN CEMPAKA SD 12/2, BANDAR SRI
DAMANSARA, 52200 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
TEL NO : 03 - 62776378
FAX NO : 03 - 62778066
CONTACT PERSON : LOW CHIN WAH (EXECUTIVE DIRECTOR)
INDUSTRY CODE : 51432
PRINCIPAL ACTIVITY : DESIGN AND SUPPLY OF CONSTRUCTION EQUIPMENTS
FOR CONCRETE BRIDGES AND MANAGEMENT OF
ENGINEERING SERVICES
AUTHORISED CAPITAL : MYR500,000.00 DIVIDED INTO ORDINARY SHARE 300,000
OF MYR1.00 EACH.
PREFERENCE SHARE 200,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR225,000.00 DIVIDED INTO ORDINARY SHARE 225,000
CASH OF MYR1.00 EACH.
SALES : MYR18,008,763 [2006]
NET WORTH : MYR1,140,604 [2006]
STAFF STRENGTH : 25 [2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : FAIR
PAYMENT : AVERAGE
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : MODERATE
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) design and supply of construction equipments for concrete bridges and management of engineering services.
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 major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
MS. SARENA TEO YUAN ENG +28, JALAN TR 2/1,
TROPICANA GOLF & 10649242 135,000
COUNTRY
RESORT, 47410 PETALING JAYA,
SELANGOR,
MALAYSIA.
SPECO LTD 544-5,
DOKKOK DONG, KANGNAM KU, SEOUL, 67,500
KOREA.
JAHN NITSCHKE + 10649244 22,499
MR. LOW CHIN WAH + 4, JALAN MARGOSA 10/6A, BANDAR SRI 10649240 1
DAMANSARA,
52200 KUALA LUMPUR, A0489619
WILAYAH
PERSEKUTUAN, MALAYSIA.
--------------------
225,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MS. SARENA TEO YUAN ENG
Address : 28, JALAN TR 2/1, TROPICANA GOLF & COUNTRY RESORT,
47410 PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No. : N/A
New IC No : 740222-03-5174
Date of Birth : 22/02/1974
Nationality : MALAYSIAN CHINESE
DIRECTOR 2
Name of Subject : JAHN NITSCHKE
IC / PP No. : N/A
New IC No : 03-N0059161/13
Date of Birth : 00/-N/1903
Nationality : MALAYSIAN CHINESE
DIRECTOR 3
Name of Subject : MR. LOW CHIN WAH
Address : 4, JALAN MARGOSA 10/6A, BANDAR SRI DAMANSARA, 52200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No. : A0489619
New IC No : 660807-10-6871
Date of Birth : 07/08/1966
Nationality : MALAYSIAN CHINESE
DIRECTOR 4
Name of Subject : HANS FAGERHAUG
Address : HOLGERSLYSTVN 23A, 0280 OSLO, NORWAY.
IC / PP No. : P01169919
Date of Birth : 02/01/1962
Nationality : NORWEGIAN
MANAGEMENT
1) Name of Subject : LOW CHIN WAH
Position : EXECUTIVE DIRECTOR
AUDITOR
Auditor : ONG BOON BAH & CO
Auditors' Address : B-10-1, MEGAN PHILEO PROMENADE, 189 JALAN TUN RAZAK, 50400
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MR. NG SHO SEE
IC / PP No. : 7950239
New IC No. : 471208-01-5107
Address : 63, JALAN 5/98, TAMAN SUPREME, 56100 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
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 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
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 [ ] Average [ X ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES
Domestic Markets : MALAYSIA.
Overseas : YES
Export Market : ASIA, EUROPE.
Credit Term : AS AGREED.
Payment Mode : CHEQUES, TELEGRAPHIC TRANSFER (TT).
Type of Customer : END USERS.
OPERATIONS
Goods Traded : CONSTRUCTION EQUIPMENTS FOR CONCRETE BRIDGES
Services : DESIGNING WORKS
Competitor(s) : ASTINO BHD
IPMUDA BHD
SOON HIN HARDWARE SDN BHD
ACERINOX MALAYSIA SDN BHD
TATT GIAP HARDWARE SDN BHD
Ownership of premises : OWNED
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 25 24 15
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 : 62776378
Current Telephone Number : 03-62776378
Match : YES
Address Provided By Client : 23A-1, JLN CEMPAKA SD12/2, BDR SRI
DAMANSARA, 52200 KL
Current Address : 23A-1, JALAN CEMPAKA SD 12/2, BANDAR SRI
DAMANSARA, 52200 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
Match : YES
Latest Financial Accounts : YES
Other Investigations
We contacted one of the Senior staff from the SC and she provided some information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 42.07% ]
Profit / ( Loss ) before tax : Increased [ 220.11% ]
Return on Shareholder Funds : Favourable [ 52.41% ]
Return on Net Assets : Favourable [ 30.21% ]
The increase in turnover could be due to the SC adopting an aggressive marketing strategy. The higher profit could be attributed to the increase in turnover. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.
Working Capital Control :
Stocks Ratio : Nil [ 0 Days ]
Debtors Ratio : Unfavourable [ 105 Days ]
Creditors Ratio : Unfavourable [ 68 Days ]
As the SC is a service oriented company, the SC does not need to keep stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.
Liquidity :
Liquid Ratio : Favourable [ 1.00 Times ]
Current Ratio : Unfavourable [ 1.00 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 : Acceptable [ 4.80 Times ]
Gearing Ratio : Favourable [ 0.54 Times ]
The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. 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 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 had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. 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: FAIR
COMMENTS
Established in 1997, the SC is principally engaged in the design and supply of construction equipment for concrete bridges and management of engineering services. With its long presence in the industry coupled with its vast experiences in the business, the SC should have built up a certain goodwill with its clients over times.
In order to further grow the business, the SC has broaden its reach and penetrated into the global market. At present, the SC's revenue is derived from overseas markets such as ASIA and Europe. The wider range of its market segments has benefited the SC in terms of higher earnings and minimised its business risk. The management of the SC is headed by Executive Director Low Chin Wah and assisted by 25 staffs. Overall the management capability of the SC is average.
During the financial year 2006 turnover of the SC grew by 42.06% to RM18 million in 2006. The SC recorded a pre-tax profit of RM597,825 for the year. Return on shareholders' funds of the SC was high 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. Beside this the SC also posted a low gearing ratio indicating that the SC faces low financial risk. The SC should be able to maintain its business in the near term, given a positive net worth standing at RM1.14 million.
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 our historical financial data, the SC's payment habit is average. The SC should be able to meet its small and medium commitments.
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 has a 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 promptly.
THE FINANCIAL STATEMENTS WERE
PREPARED
IN ACCORDANCE WITH MALAYSIA
ACCOUNTING
STANDARD.
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-December-2006
NRS-ASIA
(M) SDN BHD
2006 2005
MYR MYR
TURNOVER 18,008,763 12,676,364
=========== ===========
PROFIT/(LOSS)
FROM OPERATIONS 597,825 186,757
SHARE OF PROFITS/(LOSSES) OF
ASSOCIATED
------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 597,825 186,757
------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 597,825 186,757
------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 597,825 186,757
------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 597,825 186,757
RETAINED PROFIT/(ACCUMULATED LOSS)
BROUGHT
FORWARD
As previously
reported 317,779 131,022
------------------- -------------------
As restated 317,779 131,022
------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 915,604 317,779
------------------- -------------------
RETAINED PROFIT/(ACCUMULATED LOSS)
CARRIED
FORWARD 915,604 317,779
=========== ===========
RETAINED
BY: The Company 915,604 317,779
------------------- -------------------
915,604 317,779
=========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Term loan 7,995 10,135
Bank
overdraft 43,727 31,878
Hire purchase 8,307 10,268
Other interest
expenses 97,305 12,730
------------------- -------------------
157,334 65,011
=========== ===========
BALANCE SHEET
As
At 31-December-2006
NRS-ASIA
(M) SDN BHD
2006 2005
MYR MYR
ASSETS EMPLOYED:
FIXED ASSETS 997,280 979,602
LONG TERM INVESTMENTS/OTHER
ASSETS
Investments - 18,546
------------------- -------------------
TOTAL LONG
TERM INVESTMENTS/OTHER ASSETS - 18,546
INTANGIBLE
ASSETS
Own goodwill 1,476,951 -
------------------- -------------------
TOTAL
INTANGIBLE ASSETS 1,476,951 -
------------------- -------------------
TOTAL LONG
TERM ASSETS 2,474,231 998,148
CURRENT
ASSETS
Trade debtors 5,169,384 4,235,013
Other
debtors, deposits & prepayments 47,070 182,504
Items in transit between head
office & branches
Cash &
bank balances 2,143,210 36,531
amount due
from contract customers 1,327,280 3,168,010
tax
recoverable 7,776 4,444
------------------- -------------------
TOTAL CURRENT
ASSETS 8,694,720 7,626,502
CURRENT
LIABILITIES
Trade
creditors 3,353,945 7,143,005
Other
creditors & accruals 4,675,886 212,168
Hire purchase
& lease creditors 23,265 47,801
Bank
overdraft 504,145 452,595
Short term
borrowings/Term loans 43,213 40,531
Amounts owing
to director 68,943 76,511
------------------- -------------------
TOTAL CURRENT
LIABILITIES 8,669,397 7,972,611
------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) 25,323 <346,109>
------------------- -------------------
TOTAL NET
ASSETS 2,499,554 652,039
=========== ===========
FINANCED BY:
SHARE CAPITAL
Ordinary
share capital 225,000 225,000
TOTAL SHARE
CAPITAL 225,000 225,000
RESERVES
Retained profit/(Accumulated loss)
carried
forward 915,604 317,779
------------------- -------------------
TOTAL
RESERVES 915,604 317,779
------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 1,140,604 542,779
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Long term
loans 38,650 77,489
Hire purchase
creditors 7,454 31,771
Deferred
taxation 1,312,846 -
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 1,358,950 109,260
------------------- -------------------
2,499,554 652,039
=========== ===========
FINANCIAL RATIOS
As
At 31-December-2006
NRS-ASIA
(M) SDN BHD
2006 2005
MYR MYR
TYPES OF FUNDS
Cash 2,143,210 36,531
Net Liquid
Funds 1,595,852 <456,595>
Net Liquid
Assets 25,323 <346,109>
Net Current
Assets/(Liabilities) 25,323 <346,109>
Net Tangible
Assets 1,022,603 652,039
Net Monetary
Assets <1,333,627> <455,369>
BALANCE SHEET
ITEMS
Total
Borrowings 616,727 650,187
Total
Liabilities 10,028,347 8,081,871
Total Assets 11,168,951 8,624,650
Net Assets 2,499,554 652,039
Net Assets
Backing 1,140,604 542,779
Shareholders''
Funds 1,140,604 542,779
Total Share
Capital 225,000 225,000
Total
Reserves 915,604 317,779
LIQUIDITY
(Times)
Cash Ratio 0.25 0.00
Liquid Ratio 1.00 0.96
Current Ratio 1.00 0.96
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 0 0
Debtors Ratio 105 122
Creditors
Ratio 68 206
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.54 1.20
Liabilities
Ratio 8.79 14.89
Times
Interest Earned Ratio 4.80 3.87
PERFORMANCE
RATIO (%)
Operating
Profit Margin 3.32 1.47
Net Profit
Margin 3.32 1.47
Return On Net
Assets 30.21 38.61
Return On
Capital Employed 47.40 21.10
Return On
Shareholders'' Funds/Equity 52.41 34.41
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 |
|
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%)