MIRA
INFORM REPORT
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Report Date : |
12.09.2007 |
IDENTIFICATION DETAILS
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Name : |
DELL |
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Registered Office : |
Suite B, Menara Maxis, |
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Country : |
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Financials (as on) : |
31.01.2006 |
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Date of Incorporation : |
12/01/1995 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacture and Sale of Computer System and Computer related Products |
RATING & COMMENTS
|
MIRA’s Rating : |
Aaa |
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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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Status : |
Excellent |
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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 : 330298-M
COMPANY NAME : DELL
FORMER NAME : COMPUTER DIRECT SDN (03-06-1996)
INCORPORATION DATE : 12/01/1995
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : SUITE B, MENARA MAXIS,
LEVEL
41, 50088
BUSINESS ADDRESS : PLOT P27, BAYAN LEPAS INDUSTRIAL ZONE, PHASE IV,
11900
BAYAN LEPAS, PULAU
TEL NO : 04 - 6334888/2761
FAX NO : 04 - 6337135
WEB SITE : www.dell.com
CONTACT PERSON : SIMON WONG WOON KEONG (MANAGING DIRECTOR)
INDUSTRY CODE : 30002
PRINCIPAL ACTIVITY : MANUFACTURE AND
COMPUTER RELATED PRODUCTS
AUTHORISED CAPITAL : MYR5,000,000.00 DIVIDED INTO ORDINARY SHARE 500,000
OF MYR1.00 EACH.
PREFERENCE SHARE 4,500,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR500,000.00 DIVIDED INTO ORDINARY SHARE 500,000
CASH OF MYR1.00 EACH.
SALES : MYR29,958,600,000 [2006]
NET WORTH : MYR1,848,253,000 [2006]
M1000 OVERALL RANKING : 3 [2005]
M1000 INDUSTRY RANKING : 1 [2005]
STAFF STRENGTH : 3,200 [2007]
BANKER (S) : CITIBANK BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : STABLE
PAYMENT : AVERAGE
MANAGEMENT CAPABILITY : GOOD
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : GOOD
INDUSTRY OUTLOOK : STRONG 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 and sale of computer system and computer related products.
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 3 6
INDUSTRY RANKING 1 1
The ultimate holding company of the SC is DELL INC, a company in incorporated in UNITES STATES.
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
DELL COMPUTER RUA TRINTA E UM DE JANEIRO, 81A SANTA 500,000
INTERNATIONAL (II) LUZIA, FUNCMAL, 5TH FLOOR
--------------------
500,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. JOHNNY ONG SENG HUAT
Address : 28, CANGKAT
GELUGOR,
PULAU
IC / PP No. : A1591585
New IC No : 700328-07-5303
Date of Birth : 28/03/1970
Nationality : MALAYSIAN CHINESE
Date of Appointment : 06/09/2001
DIRECTOR 2
Name of Subject : MR. WONG WOON KEONG
Address : 6 CHANGKAT
IC / PP No. : 4587370
New IC No : 540117-08-5587
Date of Birth : 17/01/1954
Nationality : MALAYSIAN CHINESE
Date of Appointment : 01/09/1998
DIRECTOR 3
Name of Subject : MR. THOMAS HAROLD WELCH
Address : 4500, MANTLE DRIVE,
IC / PP No. : P133978873
Date of Birth : 23/02/1955
Nationality : AMERICAN
Date of Appointment : 05/12/2000
DIRECTOR 4
Name of Subject : MR. DANIEL TIMOTHY CREEDON
Address : 18K, QUEEN ASTRID PARK, 266821,
IC / PP No. : L061123
Date of Birth : 26/08/1965
Nationality :
Date of Appointment : 09/07/2003
DIRECTOR 5
Name of Subject : MR. STEPHEN JOSEPH FELICE
Address :
IC / PP No. : P158285795
Date of Birth : 19/03/1957
Nationality : AMERICAN
MANAGEMENT
1) Name of Subject : SIMON WONG WOON KEONG
Position : MANAGING DIRECTOR
2) Name of Subject : SONG CHING MING
Position : FINANCE MANAGER
3) Name of Subject : TERRY KHOO
Position : HUMAN RESOURCE MANAGER
4) Name of Subject : SERENE YANG
Position : CUSTOMER SERVICE MANAGER
5) Name of Subject : EDMUND LIM
Position : OPERATIONS MANAGER
AUDITOR
Auditor : PRICEWATERHOUSECOOPERS
Auditors' Address :
856,
4TH FLOOR, 10810, PULAU
COMPANY SECRETARY
1) Company Secretary : MS. LEE GAIK CHAN
IC / PP No. : 6373156
New IC No. : 611231-07-5548
Address : 57, CHANGKAT KENARI 2, DESA RIA, SUNGAI ARA, 11900
BAYAN
LEPAS, PULAU
Date of Appointment : 19/01/2005
2) Company Secretary : MR. LIM POH SENG
IC / PP No. : A18446176
New IC No. : 710228-10-5519
Address : 22 JALAN SS3/22, 47300 PETALING JAYA, SELANGOR,
Date of Appointment : 27/09/1999
BANKING
Banking relations are maintained principally with :
1) Banker Name : CITIBANK 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 : YES
Overseas : YES
Import Countries : EUROPE,
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 :
Overseas : YES
Export Market : ASIA, UNITED STATES , EUROPE ,
NEW
Credit Term : 30 - 60 DAYS.
Payment Mode : CHEQUES , TELEGRAPHIC TRANSFER (TT) , LETTER OF CREDIT (LC).
Type of Customer : DISTRIBUTORS , END USERS .
OPERATIONS
Products Manufactured : DESKTOPS, LAPTOPS, PERSONAL COMPUTER SYSTEM
Brand Name : DELL
Award : MS ISO 14001 Year : 1999
Competitor(s) : JCY HDD TECHNOLOGY SDN BHD
FTEC RESOURCES BHD
NEC
COMPUTERS
Member(s) / Affiliate(s) : FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)
Factory/Premises : PLOT 76, MUKIM 11,
BUKIT
MERTAJAM, PULAU
Ownership of premises : OWNED
Shifts : 3 (24 HOURS OPERATING)
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 3,200 3,132 2,575
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 : 04-6334888/2761
Match : N/A
Address Provided By Client : PLOT 76, MKM 11,
BUKIT
MERTAJAM,
Current Address : PLOT P27, BAYAN LEPAS INDUSTRIAL ZONE, PHASE IV,
11900
BAYAN LEPAS, PULAU
Match : NO
Latest Financial Accounts : YES
Other Investigations
We contacted one of the Senior staff from the Finance Department. She provided some information on the SC. We have verified and confirmed that the address provided belongs to the SC's other factory.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 2004-2006 ]
Profit / ( Loss ) before tax : Decreased [ 2004-2006 ]
Return on Shareholder Funds : Favourable [ 77.06% ]
Return on Net Assets : Favourable [ 67.79% ]
The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years. The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. 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 : Favourable [ 5 Days ]
Debtors Ratio : Favourable [ 7 Days ]
Creditors Ratio : Unfavourable [ 64 Days ]
The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. 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 [ 1.12 Times ]
Current Ratio : Unfavourable [ 1.18 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 :
Although the SC's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the SC's profit margin. 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: STABLE
COMMENTS
Incorporated in 1995, the SC is principally engaged in the manufacture and sale of computer system as well as computer related products. Having been in the industry for 12 years, the SC has been growing steadily in the market with a paid up capital of RM500,000. Over the years, Dell has established a good reputation with its clients. 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.
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
During the financial under review, turnover of the SC grew by 20.04% to RM29.95 billion in 2006. The SC recorded a pre-tax profit of RM1.42 billion for the year, a decrease of 15.30% over the previous year. Return on shareholders' funds of the SC was high indicating that the management 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 as and when they fall due. 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 huge net worth RM1.84 billion the SC should be able to maintain its business in the near term.
Our investigation revealed that the SC sources its products locally and also from overseas market. Being involved in import and export activities, the SC is exposed to foreign exchange risk and this import and export cost may lower its profit margin. As a well-known company, the SC has no problems in getting its raw materials when required.
Based on its financial historical data, the SC's payment pattern is average. This implies that the SC maintain relationship with its suppliers.
Continuing advances in technology has seen the industry grow
. As
In view of the above, we recommend credit be granted to the SC with favorable terms.
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-January-2006
DELL
2006 2005 2004
MYR MYR MYR
TURNOVER 29,958,600,000 24,957,438,000 20,494,281,000
=========== =========== ===========
PROFIT/(LOSS)
FROM OPERATIONS 1,428,092,000 1,686,139,000 1,109,865,000
SHARE OF PROFITS/(LOSSES) OF
ASSOCIATED
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 1,428,092,000 1,686,139,000 1,109,865,000
Taxation <3,913,000> <3,171,000> <2,686,000>
------------------- ------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 1,424,179,000 1,682,968,000 1,107,179,000
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 1,424,179,000 1,682,968,000 1,107,179,000
------------------- ------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 1,424,179,000 1,682,968,000 1,107,179,000
RETAINED PROFIT/(ACCUMULATED LOSS)
BROUGHT
FORWARD
As previously
reported 1,783,147,000 1,107,179,000 1,669,290,000
------------------- ------------------- -------------------
As restated 1,783,147,000 1,107,179,000 1,669,290,000
------------------- ------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 3,207,326,000 2,790,147,000 2,776,469,000
DIVIDENDS -
Ordinary (paid & proposed) <1,327,700,000> <1,007,000,000> <1,669,290,000>
------------------- ------------------- -------------------
RETAINED PROFIT/(ACCUMULATED LOSS)
CARRIED
FORWARD 1,879,626,000 1,783,147,000 1,107,179,000
=========== =========== ===========
RETAINED
BY: The Company 1,879,626,000 1,783,147,000 1,107,179,000
------------------- ------------------- -------------------
1,879,626,000 1,783,147,000 1,107,179,000
=========== =========== ===========
INTEREST
EXPENSE (as per notes to P&L)
------------------- ------------------- -------------------
=========== =========== ===========
BALANCE SHEET
As
At 31-January-2006
DELL
2006 2005 2004
MYR MYR MYR
ASSETS EMPLOYED:
FIXED
ASSETS 225,692,000 182,200,000 179,895,000
LONG
TERM INVESTMENTS/OTHER ASSETS
Investments 597,810,000 94,432,000 424,528,000
Other
non current assets 65,000 - -
------------------- ------------------- -------------------
TOTAL
LONG TERM INVESTMENTS/OTHER ASSETS 597,875,000 94,432,000 424,528,000
INTANGIBLE
ASSETS
------------------- ------------------- -------------------
------------------- ------------------- -------------------
TOTAL
LONG TERM ASSETS 823,567,000 276,632,000 604,423,000
CURRENT
ASSETS
Short
term quoted/unquoted investments 215,202,000 2,481,893,000 903,937,000
Stocks 426,074,000 501,651,000 192,489,000
Trade
debtors 593,886,000 527,839,000 479,484,000
Other
debtors, deposits & prepayments 175,019,000 114,823,000 160,020,000
Short
term deposits - - 63,000,000
Items in transit between head
office & branches
Amount
due from related companies 6,488,893,000 3,723,719,000 3,567,340,000
Cash &
bank balances 395,061,000 215,017,000 112,146,000
Tax
recoverable - - 515,000
------------------- ------------------- -------------------
TOTAL
CURRENT ASSETS 8,294,135,000 7,564,942,000 5,478,931,000
CURRENT
LIABILITIES
Trade
creditors 5,274,344,000 4,775,291,000 3,756,063,000
Other
creditors & accruals 544,289,000 426,269,000 404,032,000
Bank
overdraft 7,776,000 - -
Amounts
owing to related companies 788,831,000 374,303,000 317,252,000
Provision
for taxation 2,778,000 4,281,000 2,039,000
Provision
for liabilities and charges 277,046,000 206,018,000 186,588,000
Deferred
gain on warranty contracts 116,114,000 88,292,000 78,726,000
------------------- ------------------- -------------------
TOTAL
CURRENT LIABILITIES 7,011,178,000 5,874,454,000 4,744,700,000
------------------- ------------------- -------------------
NET
CURRENT ASSETS/(LIABILITIES) 1,282,957,000 1,690,488,000 734,231,000
------------------- ------------------- -------------------
TOTAL
NET ASSETS 2,106,524,000 1,967,120,000 1,338,654,000
=========== =========== ===========
FINANCED
BY:
SHARE
CAPITAL
Ordinary
share capital 500,000 500,000 500,000
------------------- ------------------- -------------------
TOTAL
SHARE CAPITAL 500,000 500,000 500,000
RESERVES
Capital
reserve 769,000 769,000 769,000
Retained profit/(Accumulated loss)
carried
forward 1,879,626,000 1,783,147,000 1,107,179,000
Deferred
hedging losses <32,642,000> <48,278,000> <30,513,000>
------------------- ------------------- -------------------
TOTAL
RESERVES 1,847,753,000 1,735,638,000 1,077,435,000
------------------- ------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 1,848,253,000 1,736,138,000 1,077,935,000
LONG
TERM & DEFERRED LIABILITIES & PROVISIONS
Deferred
gain on warranty contracts 158,593,000 127,615,000 98,739,000
Provisions
for liabilities and charges 99,678,000 103,367,000 161,980,000
------------------- ------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 258,271,000 230,982,000 260,719,000
------------------- ------------------- -------------------
2,106,524,000 1,967,120,000 1,338,654,000
=========== =========== ===========
FINANCIAL RATIOS
As
At 31-January-2006
DELL
2006 2005 2004
MYR MYR MYR
TYPES OF FUNDS
Cash 395,061,000 215,017,000 175,146,000
Net
Liquid Funds 387,285,000 215,017,000 175,146,000
Net
Liquid Assets 856,883,000 1,188,837,000 541,742,000
Net
Current Assets/(Liabilities) 1,282,957,000 1,690,488,000 734,231,000
Net
Tangible Assets 2,106,524,000 1,967,120,000 1,338,654,000
Net
Monetary Assets 598,612,000 957,855,000 281,023,000
BALANCE
SHEET ITEMS
Total
Borrowings 7,776,000 0 0
Total
Liabilities 7,269,449,000 6,105,436,000 5,005,419,000
Total
Assets 9,117,702,000 7,841,574,000 6,083,354,000
Net
Assets 2,106,524,000 1,967,120,000 1,338,654,000
Net
Assets Backing 1,848,253,000 1,736,138,000 1,077,935,000
Shareholders''
Funds 1,848,253,000 1,736,138,000 1,077,935,000
Total
Share Capital 500,000 500,000 500,000
Total
Reserves 1,847,753,000 1,735,638,000 1,077,435,000
LIQUIDITY
(Times)
Cash
Ratio 0.06 0.04 0.04
Liquid
Ratio 1.12 1.20 1.11
Current
Ratio 1.18 1.29 1.15
WORKING
CAPITAL CONTROL (Days)
Stock
Ratio 5 7 3
Debtors
Ratio 7 8 9
Creditors
Ratio 64 70 67
SOLVENCY
RATIOS (Times)
Gearing
Ratio 0.00 0 0
Liabilities
Ratio 3.93 3.52 4.64
Times
Interest Earned Ratio 0 0 0
PERFORMANCE
RATIO (%)
Operating
Profit Margin 4.77 6.76 5.42
Net
Profit Margin 4.75 6.74 5.40
Return
On Net Assets 67.79 85.72 82.91
Return
On Capital Employed 67.54 85.72 82.91
Return
On Shareholders'' Funds/Equity 77.06 96.94 102.71
Dividend
Pay Out Ratio (Times) 0.93 0.60 1.51
NOTES
TO ACCOUNTS
Contingent
Liabilities 0 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%)