MIRA
INFORM REPORT
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Report Date : |
06.09.2007 |
IDENTIFICATION DETAILS
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Name : |
THE GSI ASIA GROUP SDN BHD |
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Formerly Known As : |
GSI-CUMBERLAND SDN BHD |
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Registered Office : |
Suite 2-1, Menara Penang Garden, 42a Jalan Sultan Ahmad
Shah, 2nd Floor, 10050 Pulau Pinang, Pulau Pinang |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
03/07/1996 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer of Poultry Equipment |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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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 : 392746-V
COMPANY NAME : THE GSI ASIA GROUP SDN BHD
FORMER NAME : GSI-CUMBERLAND SDN BHD (08-06-2001)
INCORPORATION DATE : 03/07/1996
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS :
AHMAD
SHAH, 2ND FLOOR, 10050 PULAU
BUSINESS ADDRESS : PLOT 68, LORONG PERUSAHAAN MAJU 6, PRAI
INDUSTRIAL ESTATE, PHASE 4, 13600 PERAI, PULAU
TEL NO : 04 - 5083319
FAX NO : 04 - 5084876
CONTACT PERSON : GOH BAK YAN (MANAGING DIRECTOR)
INDUSTRY CODE : 29210
PRINCIPAL ACTIVITY : MANUFACTURER OF POULTRY EQUIPMENT
AUTHORISED CAPITAL : MYR500,000.00 DIVIDED INTO ORDINARY SHARE 500,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR250,000.00 DIVIDED INTO ORDINARY SHARE 250,000
CASH OF MYR1.00 EACH.
SALES : MYR47,304,078 [2006]
NET WORTH : MYR11,175,277 [2006]
STAFF STRENGTH : 100 [2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : STABLE
PAYMENT : GOOD
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) manufacturer of poultry equipment.
The SC is not listed on
The SC is not qualified to be one of the Top Corporate
Performers in the
The immediate holding company of the SC is THE GSI GROUP INC, a company in incorporated in UNITED STATES.
The ultimate holding company of the SC is GSI HOLDINGS CORP, a company in incorporated in UNITED STATES.
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
THE GSI GROUP INC 1004E, ILLINOIS ST ASSUMPTION, IL 62510, 250,000
UNITED
STATES.
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250,000
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+ Also Director
The SC interest in other companies (Subsidiaries/Associates) are shown as follows:
Local No Name (%) As At
652922 C.A.A.
POULTRY EQUIPMENT SALES & SERVICES SDN BHD 100.00 31/12/06
DIRECTORS
DIRECTOR 1
Name of Subject : MS. HONG MOOI HEAH
Address : 1 PERSIARAN KIKIK 1,
PULAU
IC / PP No. : 6256811
New IC No : 610723-07-5320
Date of Birth : 23/07/1961
Nationality : MALAYSIAN CHINESE
DIRECTOR 2
Name of Subject : MR. GOH BAK YAN
Address : 8-2-8
PULAU
IC / PP No. : A0428740
New IC No : 660417-02-6139
Date of Birth : 17/04/1966
Nationality : MALAYSIAN CHINESE
MANAGEMENT
1) Name of Subject : GOH BAK YAN
Position : MANAGING DIRECTOR
AUDITOR
Auditor : PRICEWATERHOUSECOOPERS
Auditors' Address :
FLOOR,
10050 PULAU PINANG, PULAU
COMPANY SECRETARY
1) Company Secretary : MS. LAM VOON KEAN
IC / PP No. : 4326724
New IC No. : 520920-07-5670
Address : 9, RESERVOIR, 5TH AVENUE, 11500 AYER ITAM, PULAU
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)
ENCUMBRANCE 1
Date of Creation : 26 Apr 2004
Description of Charge : N/A
Amount Secured : foreign currency
Description of Property Affected : N/A
Name & Address of Chargee : CONGRESS FINANCIAL CORPORATION (CENTRAL)
Form 40 Dated
Registered and Numbered 6 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
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 :
Overseas : YES
Export Market :
Credit Term : AS AGREED.
Payment Mode : CHEQUES, TELEGRAPHIC TRANSFER (TT).
OPERATIONS
Products Manufactured : MACHINERY PARTS & POULTRY EQUIPMENT
Competitor(s) : ASSOCIATED TRACTORS SDN BHD
DAH
YUNG STEEL (
ASIA INDUSTRIES CORPORATION SDN BHD
NAFAS JENTERA SDN BHD
SEMENYIH OIL SDN BHD
Ownership of premises : LEASED/RENTED
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 100 83 84
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 : N/A
Current Telephone Number : 04-5083319
Match : N/A
Address Provided By Client : PLOT 68, LORONG PERUSHAAN MAJU 6,PRAI
INDUSTRIAL ESTATE, PHASE 4, 13600 PRAI
Current Address : PLOT 68, LORONG PERUSAHAAN MAJU 6, PRAI
INDUSTRIAL ESTATE, PHASE 4, 13600 PERAI,
PULAU
Match : YES
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with Ms Tracy from the SC's Admin Department. She revealed some information pertaining to the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 29.13% ]
Profit / ( Loss ) before tax : Increased [ 76.02% ]
Return on Shareholder Funds : Favourable [ 35.50% ]
Return on Net Assets : Favourable [ 47.04% ]
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. 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 : Acceptable [ 64 Days ]
Debtors Ratio : Favourable [ 47 Days ]
Creditors Ratio : Favourable [ 13 Days ]
The SC kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. The favourable debtors' days could be due to the good credit control measures implemented by the SC. 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 [ 1.17 Times ]
Current Ratio : Favourable [ 2.17 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 : Favourable [ 454.98 Times ]
Gearing Ratio : Favourable [ 0.01 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 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 :
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. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties.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: STABLE
COMMENTS
Established in 1996, the SC is principally engaged as a manufacturer of poultry equipment. 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 client over times. 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.
Our investigation revealed that the SC serves both local and overseas clients. Penetrating into the overseas countries 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 100 and the SC's business activities are overseen by its Managing Director, Goh Bak Yan and its management capability is average.
During the financial under review, turnover of the Group surged by 29.13% to RM47.3 million in 2006. The Group recorded a pre-tax profit of RM5.33 million for the year, an increase of 76% over the previous year. Return on shareholders' funds of the group was high indicating that the group was efficient in utilising its shareholders' funds to generate favourable returns. The group was in good liquidity position with its current liabilities well covered by its current assets. With its net current assets, the group should be able to repay its short term obligations. The group posted a low gearing ratio indicating that the group faces low financial risk. With the comfortable networth standing at RM11.17 million, the group is able to sustain its business performance in the near terms.
Investigation revealed that the SC's supplies are sourced from both local and overseas suppliers. Hence, the SC is subjected to currency fluctuation risk and high operating costs.
Based on our historical financial data, we concluded that the SC's payment is good. This implies a good credit control and the SC could be taking advantage of the cash discounts and maintain a good reputation with its creditors.
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 promptly.
THE FINANCIAL
STATEMENTS WERE PREPARED
IN ACCORDANCE WITH
STANDARD.
CONSOLIDATED
PROFIT AND LOSS ACCOUNT
For
The Year Ended 31-December-2006
THE
GSI ASIA GROUP SDN BHD
2006 2005
MYR MYR
TURNOVER 47,304,078 36,632,091
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PROFIT/(LOSS)
FROM OPERATIONS 5,331,059 3,028,751
SHARE OF PROFITS/(LOSSES) OF
ASSOCIATED
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PROFIT/(LOSS)
BEFORE TAXATION 5,331,059 3,028,751
Taxation <1,364,143> <367,255>
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PROFIT/(LOSS)
AFTER TAXATION 3,966,916 2,661,496
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 3,966,916 2,661,496
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PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 3,966,916 2,661,496
RETAINED PROFIT/(ACCUMULATED LOSS)
BROUGHT
FORWARD
As previously
reported 6,958,361 4,296,865
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As restated 6,958,361 4,296,865
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PROFIT
AVAILABLE FOR APPROPRIATIONS 10,925,277 6,958,361
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RETAINED PROFIT/(ACCUMULATED LOSS)
CARRIED
FORWARD 10,925,277 6,958,361
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RETAINED
BY: The Company 10,925,277 6,958,361
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10,925,277 6,958,361
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INTEREST
EXPENSE (as per notes to P&L)
Other
interest expenses 11,743 6,446
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11,743 6,446
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CONSOLIDATED BALANCE
SHEET
As At
31-December-2006
THE
GSI ASIA GROUP SDN BHD
2006 2005
MYR MYR
ASSETS EMPLOYED:
FIXED ASSETS 1,587,307 1,949,008
LONG TERM
INVESTMENTS/OTHER ASSETS
Deferred
assets - 171,024
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TOTAL LONG
TERM INVESTMENTS/OTHER ASSETS - 171,024
INTANGIBLE
ASSETS
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TOTAL LONG
TERM ASSETS 1,587,307 2,120,032
CURRENT
ASSETS
Stocks 8,311,684 9,441,553
Trade debtors 6,044,368 5,637,793
Other
debtors, deposits & prepayments 751,178 477,108
Short term
deposits 900,000 362,500
Items in transit between head
office & branches
Amount due
from holding company 38,725 24,962
Amount due
from related companies 3,849 5,193
Cash &
bank balances 2,078,628 702,815
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TOTAL CURRENT
ASSETS 18,128,432 16,651,924
CURRENT
LIABILITIES
Trade
creditors 1,677,132 2,167,045
Other
creditors & accruals 1,698,636 1,198,741
Hire purchase
& lease creditors 38,360 137,752
Deposits from
customers 1,538,773 744,696
Amounts owing
to holding company 2,831,249 6,580,649
Amounts owing
to related companies 66,961 169,717
Provision for
taxation 507,399 467,597
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TOTAL CURRENT
LIABILITIES 8,358,510 11,466,197
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NET CURRENT
ASSETS/(LIABILITIES) 9,769,922 5,185,727
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TOTAL NET
ASSETS 11,357,229 7,305,759
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FINANCED BY:
SHARE CAPITAL
Ordinary
share capital 250,000 250,000
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TOTAL SHARE
CAPITAL 250,000 250,000
RESERVES
Retained profit/(Accumulated loss)
carried
forward 10,925,277 6,958,361
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TOTAL
RESERVES 10,925,277 6,958,361
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SHAREHOLDERS'
FUNDS/EQUITY 11,175,277 7,208,361
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Hire purchase
creditors 59,038 97,398
Deferred
taxation 122,914 -
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TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 181,952 97,398
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11,357,229 7,305,759
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CONSOLIDATED FINANCIAL
RATIOS
As At
31-December-2006
THE
GSI ASIA GROUP SDN BHD
2006 2005
MYR MYR
TYPES OF FUNDS
Cash 2,978,628 1,065,315
Net Liquid
Funds 2,978,628 1,065,315
Net Liquid
Assets 1,458,238 <4,255,826>
Net Current
Assets/(Liabilities) 9,769,922 5,185,727
Net Tangible
Assets 11,357,229 7,305,759
Net Monetary
Assets 1,276,286 <4,353,224>
BALANCE SHEET
ITEMS
Total
Borrowings 97,398 235,150
Total
Liabilities 8,540,462 11,563,595
Total Assets 19,715,739 18,771,956
Net Assets 11,357,229 7,305,759
Net Assets
Backing 11,175,277 7,208,361
Shareholders''
Funds 11,175,277 7,208,361
Total Share
Capital 250,000 250,000
Total
Reserves 10,925,277 6,958,361
LIQUIDITY
(Times)
Cash Ratio 0.36 0.09
Liquid Ratio 1.17 0.63
Current Ratio 2.17 1.45
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 64 94
Debtors Ratio 47 56
Creditors
Ratio 13 22
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.01 0.03
Liabilities
Ratio 0.76 1.60
Times
Interest Earned Ratio 454.98 470.87
PERFORMANCE
RATIO (%)
Operating
Profit Margin 11.27 8.27
Net Profit
Margin 8.39 7.27
Return On Net
Assets 47.04 41.55
Return On
Capital Employed 46.88 40.78
Return On
Shareholders'' Funds/Equity 35.50 36.92
Dividend Pay
Out Ratio (Times) 0 0
NOTES TO
ACCOUNTS
Contingent
Liabilities 0 0
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%)