MIRA
INFORM REPORT
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Report Date : |
28.09.2007 |
IDENTIFICATION DETAILS
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Name : |
SIDEL DISTRIBUTION ( |
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Registered Office : |
East Wing, Plaza Permata, Jalan Kampar, Off Jalan Tun Razak,
20th Floor, 50400 Kuala Lumpur, Wilayah Persekutuan |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
03/03/2005 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Supply and Distributing of Blowing and Coating Machinery |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
* Adopted abbreviations : SC - Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 683008-P
COMPANY NAME : SIDEL
DISTRIBUTION (
FORMER NAME : N/A
INCORPORATION DATE : 03/03/2005
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : EAST WING, PLAZA PERMATA, JALAN KAMPAR, OFF JALAN
TUN
RAZAK, 20TH FLOOR, 50400
WILAYAH
BUSINESS ADDRESS : 1, JALAN SITAR 33/6, SEKSYEN 33, 40400 SHAH ALAM,
TEL NO : 03 - 51016800
FAX NO : 03 - 51920369/51920410
CONTACT PERSON : GERARD STRICHER (CEO)
INDUSTRY CODE : 5159
PRINCIPAL ACTIVITY : SUPPLY AND DISTRIBUTING OF BLOWING AND COATING
MACHINERY
AUTHORISED CAPITAL : MYR1,000,000.00 DIVIDED INTO ORDINARY SHARE
1,000,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR500,000.00 DIVIDED INTO ORDINARY SHARE 500,000
CASH OF MYR1.00 EACH.
SALES : MYR81,363,094 [2006]
NET WORTH : < MYR15,804,471 > [2006]
STAFF STRENGTH : 85 [2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : TRACED
FINANCIAL CONDITION : POOR
PAYMENT : N/A
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : SATISFACTORY
INDUSTRY OUTLOOK : DECLINING
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) supply and distributing of blowing and coating machinery.
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
SIDEL PARTICIPATIONS 55, RUE DE PONT VI, BP 204, 76053
--------------------
500,000
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+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MARC ERNEST CLAUDE VILLE
Address : 16, HONG DA BEI LU,
100176
IC / PP No. : 00PE93388
Date of Birth : 11/07/1963
Nationality : FRENCH
Date of Appointment : 31/12/2005
Remark : APPOINTED AS MD ON 27/01/2006
DIRECTOR 2
Name of Subject : MR. YEAP KOK LEONG
Address : 11, JALAN 2/149G, TAMAN SRI ENDAH,
57000
WILAYAH
IC / PP No. : 6081387
New IC No : 601107-10-5771
Date of Birth : 07/11/1960
Nationality : MALAYSIAN CHINESE
Date of Appointment : 03/05/2005
DIRECTOR 3
Name of Subject : SYLVAIN GERARD BERNARD AUVARY
Address : 53, PERSIARAN BERUAS,
LUMPUR,
WILAYAH
IC / PP No. : 00AE79946
Nationality : N/A
Date of Appointment : 25/07/2007
MANAGEMENT
1) Name of Subject : GERARD STRICHER
Position : CEO
2) Name of Subject : SYLVAIN GERARD BERNARD AUVRAY
Position : MANAGING DIRECTOR
AUDITOR
Auditor : ERNST & YOUNG
Auditors' Address : MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR
DAMANSARA,
LEVEL 23A, 50490
COMPANY SECRETARY
1) 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 : 03/03/2005
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
back dated since 1900.
LEGAL ACTION
Code No : 72 Case No : 55456
Year : 2006 Place :
Court :
Solicitor : LEONG YENG KIT & CO
Plaintiff : TT DOTCOM SDN BHD
Defendants : SIDEL DISTRIBUTION
EAST WING, PLAZA PERMATA, JLN KAMPAR, OFF JLN TUN
RAZAK,
20TH FLR, 50400
Amount Claimed : 3,065.00
Nature of Claim : GDS SOLD & DELIVERED
Remarks : LIST
NOTE: Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person who has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.
No winding up petition was found in our data bank
PAYMENT RECORD
SOURCES OF RAW MATERIALS :
Local : YES Percentage : 70%
Overseas : YES Percentage : 30%
CLIENTELE
Local : YES Percentage : 1%
Domestic Markets :
Overseas : YES Percentage : 99%
Export Market :
Credit Term : AS AGREED.
Payment Mode : CHEQUES, LETTER OF CREDIT (LC), TELEGRAPHIC TRANSFER (TT).
Type of Customer : MANUFACTURING INDUSTRIES.
CUSTOMER (S) : 1) F&N
: 2) COCA-COLA
: 3) PERMANIS
: 4) DANONE
: 5) NESTLE
: 6) HEINEKEN
: 7) PEPSICO
OPERATIONS
Goods Traded : BLOWING AND COATING MACHINERIES
Total Number of Employees :
YEAR 2007 2006
GROUP N/A N/A
COMPANY 85 60
Branch : NO
RECENT DEVELOPMENT
The SC, which supplies blow-moulding machines to make
plastic and glass bottles, will use
Stricher had earlier accompanied Deputy Information Minister,
Datuk Seri Chia Kwang Chye, who had launched the French company's newly
upgraded (RM46.4 million factory). The SC is part of French bottling giant
Tetra Laval, a world leader in food-processing and packaging systems. To date,
it has sold 27,000 machines installed in 190 countries. In
CURRENT
INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
Telephone Number Provided By Client : N/A
Current Telephone Number : 03-51016800
Match : N/A
Address Provided By Client : NC-1, JILAN SITAR 33/6, SEKSYEN 33, 40400 SHAH
ALAM,
SELANGOR
Current Address : 1, JALAN SITAR 33/6, SEKSYEN 33, 40400 SHAH
ALAM,
Match : YES
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with one of the SC's staff from Human Resource Department, Ms. Kelly. She provided some information on the SC.
Besides that, we conducted an interview with one of the SC's staff from Sales Department. She revealed some relevant information on the SC.
FINANCIAL COMMENTS
The financial summary of the SC in Year 2006 showed that it was financially POOR. The SC posted adequate liquidity position with its current liabilities well covered by its current assets. However 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. We also noted that the SC also had a deficit in shareholder's equity of RM15.8 million.
Overall financial condition of the SC: POOR
ECONOMIC / INDUSTRY
OUTLOOK
Major Economic Indicators : 2004 2005 2006 2007* 2008**
Population ( Million ) 25.58 26.13 26.64 27.17 27.73
Gross Domestic Products ( % ) 7.1 5.3 5.8 6.0 6.5
Domestic Demand ( % ) 7.5 7.3 7.0 9.0 6.8
Private Expenditure ( % ) 13.1 9.5 7.0 8.6 8.2
Consumption ( % ) 10.5 9.2 7.1 9.0 7.9
Investment ( % ) 25.8 8.5 7.0 7.1 9.5
Public Expenditure ( % ) <2.1> 3.6 6.8 10.1 3.2
Consumption ( % ) 6.0 5.4 5.0 10.8 5.5
Investment ( % ) <8.7> 1.9 8.9 9.3 0.5
Balance of Trade ( RM Million ) 80,663 99,760 108,192 99,965 99,599
Government Finance ( RM Million ) <19,419> <18,684> <19,109> <19,948> <20,933>
Government Finance to GDP / Fiscal Deficit (
% ) <4.3> <3.8> <3.3> <3.2> <3.1>
Inflation ( % Change in Composite CPI ) 1.4 3.1 3.9 4.0 4.0
Unemployment Rate ( % ) 3.5 3.5 3.4 3.5 3.3
Net International Reserves ( RM Billion ) 254 266 290 - -
Average 6 Months of Non-performing Loans ( %
) 13.84 13.63 12.91 - -
Average Risk-Weigthted Capital Adequacy
Ratio ( % ) 8.46 6.74 5.41 - -
Average Base Lending Rate ( % ) 5.99 6.00 6.61 - -
Business Loans Disbursed ( % ) 10.5 8.7 <2.5> - -
Foreign Investment ( MYR Million ) 13,143.9 17,882.9 20,228.0 - -
Registration of New Companies ( No.) 38,580 37,474 38,293 - -
Registration of New Companies ( % ) 6.8 <2.9> 2.2 - -
Liquidation of Companies ( No. ) 3,334 3,069 8,647 - -
Liquidation of Companies ( % ) <15.8> <7.9> 181.8 - -
Registration of New Business ( No. ) 189,206 193,095 216,147 - -
Registration of New Business ( % ) 4.6 2.1 11.9 - -
Business Dissolved ( No.) 51,301 73,355 52,879 - -
Business Dissolved ( % ) 7.0 43.0 <27.9> - -
Sales of New Passenger Cars ( '000 Unit ) 380.6 400.8 374.1 - -
Cellular Phone Subscribers ( Million ) 14.6 18.5 19.5 21.3 -
Tourist Arrival ( Million Persons ) 15.7 16.7 17.5 20.1 -
Hotel Occupancy Rate ( % ) 60.8 63.6 64.8 - -
Credit Cards Spending ( % ) 19.3 13.9 15.4 - -
Bad Cheque Offenders ( No.) 70,465.0 57,316.0 36,555.0 - -
Individual Bankruptcy ( No.) 16,251.0 15,868.0 13,596.0 - -
Individual Bankruptcy ( % ) 31.6 <2.4> <14.3> - -
INDUSTRIES ( % of Growth ) : 2004 2005 2006 2007* 2008**
Agriculture 5.0 2.5 5.3 3.1 3.5
Palm Oil 3.9 7.1 5.8 <0.6> -
Rubber 16.5 <2.9> 12.6 1.0 -
Forestry & Logging 4.3 2.0 <0.4> 2.8 -
Fishing 5.5 <0.4> 9.3 5.2 -
Other Agriculture 2.4 3.2 5.3 7.0 -
Industry Non-Performing Loans ( RM Million ) 620.3 563.7 516.5 487.3 -
% of Industry Non-Performing Loans 1.4 1.2 1.1 1.1 -
Mining 3.9 0.8 <0.4> 3.3 4.0
Oil & Gas 4.5 1.6 4.6 - -
Other Mining <8.0> <1.0> 5.1 - -
Industry Non-Performing Loans ( RM Million ) 62.6 68.8 55.4 42.2 -
% of Industry Non-Performing Loans 0.1 0.1 0.1 0.1 -
Manufacturing # 9.8 5.1 7.3 3.1 3.8
Export-oriented Industries 15.5 3.0 11.1 <1.9> -
Electrical & Electronics 17.8 3.6 13.4 3.0 -
Rubber Products 14.8 2.4 0.4 8.0 -
Wood Products 12.7 0.9 0.7 3.3 -
Textiles & Apparel <11.7> <4.4> 12.6 <10.1> -
Domestic-oriented Industries 9.7 6.9 5.0 5.3 -
Food, Beverages & Tobacco 3.8 7.7 4.8 5.6 -
Chemical & Chemical Products 14.6 6.9 1.7 9.2 -
Plastic Products 13.5 18.6 21.3 <3.6> -
Iron & Steel 2.7 <6.7> <6.9> 17.5 -
Fabricated Metal Products 29.2 <7.5> 20.0 26.2 -
Non-metallic Mineral <4.8> <6.0> <1.9> 6.6 -
Transport Equipment 8.6 10.4 5.3 <19.0> -
Paper & Paper Products 2.3 4.6 4.1 14.9 -
Crude Oil Refineries <2.4> 8.2 12.1 8.6 -
Industry Non-Performing Loans ( RM Million ) 7,765.4 6,035.6 6,181.3 6,366.2 -
% of Industry Non-Performing Loans 17.3 12.7 12.7 14.1 -
Construction <1.5> <1.6> <0.5> 5.2 6.3
Industry Non-Performing Loans ( RM Million ) 5,547.7 5,172.7 5,527.3 5,116.7 -
% of Industry Non-Performing Loans 12.4 10.9 11.4 11.3 -
Services 6.8 6.6 7.2 9.0 8.6
Electricity, Gas & Water 8.1 5.5 5.2 4.6 5.0
Transport, Storage & Communication 8.5 6.3 5.2 7.6 7.8
Wholesale, Retail, Hotel & Restaurant 7.1 8.0 7.1 11.6 10.0
Finance, Insurance & Real Estate 6.3 7.0 7.7 10.7 9.2
Government Services 6.5 7.6 9.8 4.6 8.6
Other Services 4.9 5.0 4.7 5.0 5.9
Industry Non-Performing Loans ( RM Million ) 8,913.7 8,716.8 11,593.2 10,207.8 -
% of Industry Non-Performing Loans 19.9 18.4 23.9 22.6 -
* Estimate
/ Preliminary
** Forecast
# Based
On Manufacturing Production Index
( Source : Department of Statistics
/ Economic Report / Bank Negara Report )
INDUSTRY COMMENTS
MSIC CODE
5159 : Wholesale
of other machinery, equipment and supplies
INDUSTRY : MACHINERY
The early development of the machinery and equipment (M&E) industry emerged to serve the agro-based and tin mining sectors. Over the years, local manufacturers have also ventured into producing other M&E to meet the need of other industries. There are four sectors in the M&E industry and they are power generating M&E; metal working machinery; machinery specialised for particular industries; and general industrial machinery, equipment and parts.
Production of machinery and equipment industry including air conditioning, refrigerating and ventilating machinery, contracted 13.7% during the first six months of 2007 (January-June 2006: -1.7%) on account of lower sales of 5.9% (January-June 2006: 2.8%). Weakening sales during the period, resulting from lower domestic and external demand, led to lower capacity utilisation of 60.0%.
During the Industrial Master Plan 3 period the industry is expected to expand further in tandem with the growth of major economic sectors, in particular the manufacturing, agriculture and services sectors. With increasing competition from lower cost producing countries, the industry is expected to move up the value chain and strengthen its design, development and innovation capabilities in the production of innovation capabilities in the production of high technology M&E and specialized M&E for specific industries.
To assist local small and medium enterprises enhance their technological competitiveness in machinery and equipment manufacturing, the Government has set up the Rasa Machinery and Equipment Technology Centre (Ramet) managed by Sirim Bhd.
OVERALL INDUSTRY OUTLOOK : DECLINING
COMMENTS
Established in 2005, the SC is principally engaged in the supply and distributing of blowing and coating machinery. Being a young company, the SC faces high business risk as it has yet to build up a stable reputation for itself among its supplier and clientele.
Our investigation revealed that the SC serves both local and
overseas market. However the SC's concentration is mainly on the overseas
market as 99% income are generated from the overseas market. Currently the SC
exports its products to
Based on the latest financial year 2006, the SC posted pre-tax losses of RM16.32 million and its turnover stood at RM81.36 million. Due to the losses, the SC has generated an unfavourable return on shareholders' funds which indicated that the management was inefficient in utilising its shareholders' funds to generate returns. Despite showing sign of adequate liquidity position, we however noted that the SC had a deficit in shareholder's equity of RM15.80 million. Overall the financial standing of the SC is POOR.
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 industry demonstrate downward trend. The immediate outlook for the industry is unfavourable. With this unconductive industry environment, it might pressure down the SC performance.
In view of its poor financial standing, we regard that granting of credit to the SC to be quite risky. Hence, we do not recommend the credit to be proceeded to the SC.
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH
PROFIT
AND LOSS ACCOUNT
SIDEL
DISTRIBUTION (
31-December-2006
Consolidated
Accounts : No
UnQualified
Reports : Yes
RM
Turnover 81,363,094.00
Operating
Revenue 0.00
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Profit
/ (Loss) Before Tax <
16,325,760.00 >
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Profit
/ (Loss) After Tax <
16,455,383.00 >
Extraordinary
Item 0.00
Minority
Interest 0.00
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Profit/(Loss)
Attributable to Shareholders <
16,455,383.00 >
----------------------------
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 150,912.00
----------------------------
Unappropriated
Profit/(Loss) Carried Forward <
16,304,471.00 >
================
BALANCE SHEET
SIDEL
DISTRIBUTION (
31-December-2006
Consolidated
Accounts : No
UnQualified
Reports : Yes
RM
Fixed
Assets 18,533,959.00
Total
Investment 0.00
Amount
Owing By 0.00
Current
Assets 120,788,926.00
Intangible
Assets 0.00
Other
Assets 0.00
----------------------------
Total
Assets 139,322,885.00
================
Working
Capital 19,266,330.00
Issued
Capital 500,000.00
Paid
Up Capital 500,000.00
Share
Premium & Reserved 0.00
Unappropriated
Profit/(Loss) <
16,304,471.00 >
----------------------------
Shareholder's
Fund/Equity <
15,804,471.00 >
----------------------------
Current
Liabilities 101,522,596.00
Amount
Owing To 0.00
Long-term
and Deferred Liabilities 53,604,760.00
Share
Application Account 0.00
Minority
Interest 0.00
----------------------------
Total
Equity Liability 139,322,885.00
================
Contingent
Liabilities 0.00
RATING EXPLANATIONS
|
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 |
|
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 |
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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%)