MIRA
INFORM REPORT
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Report Date : |
30.08.2007 |
IDENTIFICATION DETAILS
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Name : |
DONGWHA MDF (M) SDN BHD |
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Registered Office : |
Wisma Havela Thakardas, 1 Jalan Tiong Nam, Off Jalan Raja Laut,
10th Floor, 50350 Kuala Lumpur, Wilayah Persekutuan |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
21/09/1990 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing Of Medium Density Fibreboard |
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 : 204561-X
COMPANY NAME : DONGWHA
MDF (M) SDN BHD
FORMER NAME : GUTHRIE MDF SDN BHD (28-05-2007)
: GUTHRIE COMMODITIES SDN BHD (25-04-1994)
INCORPORATION DATE : 21/09/1990
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : WISMA HAVELA THAKARDAS, 1 JALAN TIONG
JALAN
RAJA LAUT, 10TH FLOOR, 50350
WILAYAH
BUSINESS ADDRESS : LOT 833, MUKIM
TEL NO : 04 - 4022100
FAX NO : 04 - 4022203/4022201
EMAIL : gmdfmkt@guthrie.com.my
WEB SITE : www.guthriemdf.com
CONTACT PERSON : KANG SHIN DO (CEO)
INDUSTRY CODE : 2021
PRINCIPAL ACTIVITY : MANUFACTURING OF MEDIUM DENSITY FIBREBOARD
AUTHORISED CAPITAL : MYR100,000,000.00 DIVIDED INTO ORDINARY SHARE
50,000,000 OF MYR1.00 EACH.
PREFERENCE SHARE 60,000,000 OF MYR0.50 EACH.
OTHER SHARE 200,000,000 OF MYR0.10 EACH.
ISSUED AND PAID UP CAPITAL : MYR53,000,000.00 DIVIDED INTO ORDINARY SHARE
20,000,000 CASH OF MYR1.00 EACH.
PREFERENCE SHARE 60,000,000 CASH OF MYR0.50 EACH.
OTHER SHARE 30,000,000 CASH OF MYR0.10 EACH.
SALES : MYR98,042,977 [2005]
NET WORTH : MYR104,608,846 [2005]
STAFF STRENGTH : 209 [2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : FAIR
PAYMENT : N/A
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) manufacturing of medium density fibreboard.
The SC is not listed on
The SC is not qualified to be one of the Top Corporate
Performers in the
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
KUMPULAN GUTHRIE BHD WISMA GUTHRIE, 21 JALAN GELENGGANG, 4001 99,800,000
LUMPUR,
WILAYAH PERSEKUTUAN,
GUTHRIE WOOD INDUSTRY WISMA GUTHRIE, 21 JALAN GELENGGANG, 205119 10,200,000
SDN BHD
LUMPUR,
WILAYAH PERSEKUTUAN,
--------------------
110,000,000
===========
+
Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : CHAE KWANG BYEONG
Address : B13A-3, KIARAMAS SUTERA CONDOMINIUM, 7 JALAN DESA KIARA, BUKIT
KIARA,
50480
IC / PP No. : P7071059
Nationality : N/A
Date of Appointment : 11/05/2007
DIRECTOR 2
Name of Subject : KANG SHIN DO
Address : UNIT 11.03, MENARA PSCI, 39 JALAN SULTAN AHMAD SHAH, 10050 PULAU
PINANG,
PULAU
IC / PP No. : SC1550845
Nationality : N/A
Date of Appointment : 11/05/2007
DIRECTOR 3
Name of Subject : SUH JIN-WEE
Address : C2-5-4, WEDGEWOOD RESIDENCES LA GRANDE KIARA, 11 JALAN DUTA
KIARA,
BUKIT KIARA, 50480
IC / PP No. : SC1521637
Nationality : N/A
Date of Appointment : 11/05/2007
DIRECTOR 4
Name of Subject : HJ KHAIRUDIN BIN HASHIM
Address : 52, JALAN IMPIAN GEMILANG 1/3, SAUJANA IMPIAN, 43000 KAJANG,
IC / PP No. : 5015421
New IC No : 560731-05-5183
Nationality : MALAYSIAN MALAY
Date of Appointment : 25/05/2007
DIRECTOR 5
Name of Subject : MR. RAZIDAN BIN GHAZALLI
Address :
LUMPUR,
WILAYAH
IC / PP No. : 6936799
New IC No : 621207-06-5269
Nationality : MALAYSIAN MALAY
Date of Appointment : 25/05/2007
MANAGEMENT
1) Name of Subject : KANG SHIN DO
Position : CEO
2) Name of Subject : MOHD YAZID MOHD SHARIF
Position : HUMAN RESOURCE MANAGER
AUDITOR
Auditor : ERNST & YOUNG
Auditors' Address : MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA,
LEVEL
23A, 50490
COMPANY SECRETARY
1) Company Secretary : MS. WENDY CHIN NGEOK MUI
IC / PP No. : 7311328
New IC No. : 640423-10-7826
Address : 3, JALAN IBU
Date of Appointment : 11/05/2007
2) Company Secretary : MS. CHEN BEE LING
New IC No. : 740719-06-5256
Address : B3-3A, PANGSAPURI IMPIAN, OFF JALAN PIPIT, BANDAR
PUCHONG
JAYA, 47100 PUCHONG,
Date of Appointment : 11/05/2007
BANKING
Banking relations are maintained principally with :
1) Banker Name : MALAYAN BANKING BHD
The SC enjoys normal banking routine with above mentioned banker(s).
The SC has bank charges with above mentioned banker(s).
ENCUMBRANCE (S)
ENCUMBRANCE 1
Date of Creation : 26 Jun 2007
Description of Charge : N/A
Amount Secured : O/D
Description of Property Affected : N/A
Name & Address of Chargee : MALAYAN BANKING BHD
Form 40 Dated
Registered and Numbered 1 In The Register of Charges
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
Overseas : YES
Import Countries :
CLIENTELE
Local : YES Percentage : 30%
Domestic Markets :
Overseas : YES Percentage : 70%
Export Market :
KINGDOM
,
Credit Term : AS AGREED.
Payment Mode : CHEQUES , LETTER OF CREDIT (LC) , TELEGRAPHIC TRANSFER (TT).
Type of Customer : AGENTS .
CUSTOMER (S) : 1) SEON LIM (M) SDN BHD
OPERATIONS
Products Manufactured : MEDIUM DENSITY FIBREBOARDS (MDF)
Brand Name : GUTHRIE
Award : MS ISO 9001 : 2000 Year : 1999
Competitor(s) :
DONGWHA FIBREBOARD SDN BHD
MAGNA-FOREMOST SDN BHD
ROBIN
RESOURCES (
PAHANCO CORPORATION BHD
Production capacity : 130,000 CUBIC METRES ( PER YEAR)
Shifts : 3
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 209 250 400
Branch : NO
Other Information :
The SC is principally engaged in the (as a / as an) manufacturing of medium density fibreboard.
The SC's products include Plain MDF, High Density Flooring MDF, High Moisture Resistant MDF and Direct Printed Board.
The SC's boards are highly versatile with thickness ranging from 2.5mm to 32mm.
The SC produces the products according to the customers requirements.
The SC's factory is equipped with both automated and semi-automated machinery.
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 : N/A
Current Telephone Number : 04-4022100
Match : N/A
Address Provided By Client : 20T833 MUKIM
SERAI KULIM KEDAH
Current Address : LOT 833, MUKIM
SERAI,
Match : YES
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with one of the SC's staff from Finance Department.
She revealed some relevant information on the SC.
FINANCIAL COMMENTS
The financial summary of the SC in Year 2005 showed that it was financially STABLE. Return on shareholders' funds of the SC is relatively low, indicating that the SC did not generate an acceptable amount of profits based on its existing shareholders' funds. The SC was in good liquidity position with its current liabilities well covered by its current assets. With its current net assets, the SC should be able to repay its short term obligations. A low liabilities ratio has minimised the SC's financial risk.
Overall financial condition of the SC: FAIR
COMMENTS
Established in 1990, the SC is principally engaged in the manufacturing of medium density fibreboard. Its long presence in the industry coupled with its vast experiences has enabled the SC to remain competitive. With RM50 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.
In order to further grow the business, the SC has broaden
its reach and penetrated into the global market. At present, about 70% of the
SC's revenue is derived from overseas markets such as
Referring to the financial year ended 31 Dec, 2005, the SC recorded pre-tax profit of RM8.48 million on the back of RM98 million in turnover. Return on shareholders' funds of the SC is relatively low, indicating that the SC did not generate an acceptable amount of profits based on its existing shareholders' funds. However good cash flow management has enabled the SC to meet its short term obligations as and when they fall due. The liability ratio of the SC also low indicating that the SC faces low financial risk.
Moreover with the comfortable networth standing at RM104.60 million, the SC is able to sustain its business performance 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.
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
STANDARD.
PROFIT
AND LOSS ACCOUNT
DONGWHA
MDF (M) SDN BHD
31-December-2005
Consolidated
Accounts : No
UnQualified
Reports : Yes
RM
Turnover 98,042,977.00
Operating
Revenue 0.00
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Profit
/ (Loss) Before Tax 8,489,582.00
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Profit
/ (Loss) After Tax 8,489,582.00
Extraordinary
Item 0.00
Minority
Interest 0.00
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Profit/(Loss)
Attributable to Shareholders 8,489,582.00
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Prior
Period Adjustment 0.00
Net
Dividend 0.00
Transferred
To/From Reserved 0.00
Others 0.00
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Unappropriated
Profit/(Loss) Brought Forward <
13,880,736.00 >
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Unappropriated
Profit/(Loss) Carried Forward <
5,391,154.00 >
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BALANCE SHEET
DONGWHA
MDF (M) SDN BHD
31-December-2005
Consolidated
Accounts : No
UnQualified
Reports : Yes
RM
Fixed
Assets 72,679,171.00
Total
Investment 0.00
Amount
Owing By 0.00
Current
Assets 38,581,625.00
Intangible
Assets 0.00
Other
Assets 0.00
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Total
Assets 111,260,796.00
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Working
Capital 31,929,675.00
Issued
Capital 53,000,000.00
Paid
Up Capital 53,000,000.00
Share
Premium & Reserved 57,000,000.00
Unappropriated
Profit/(Loss) <
5,391,154.00 >
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Shareholder's
Fund/Equity 104,608,846.00
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Current
Liabilities 6,651,950.00
Amount
Owing To 0.00
Long-term
and Deferred Liabilities 0.00
Share
Application Account 0.00
Minority
Interest 0.00
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Total
Equity Liability 111,260,796.00
================
Contingent
Liabilities 0.00
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<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%)