|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
279165-K
|
|
COMPANY NAME
|
:
|
FP TECHNOLOGIES SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
21/10/1993
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
LOT 8, JALAN RAGUM 15/17, 40000 SHAH ALAM, SELANGOR, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
LOT 8, JALAN RAGUM 15/17, 40000 SHAH ALAM, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-55183600
|
|
FAX.NO.
|
:
|
03-55198020
|
|
WEB SITE
|
:
|
www.federalpower.com
|
|
CONTACT PERSON
|
:
|
ABDUL RAZAK ( DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
31302
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURE OF HIGH VOLTAGE XLPE CABLES
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
50,000,000.00 DIVIDED INTO
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
17,800,000.00 DIVIDED INTO
ORDINARY SHARES 9,213,000 CASH AND 8,587,000 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 2,316,725 [2007]
|
|
NET WORTH
|
:
|
MYR <10,323,001> [2007]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
140 [2008]
|
|
BANKER (S)
|
:
|
|
ABN AMRO
BANK BHD
CITIBANK BHD
MALAYAN BANKING BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
N/A
|
|
MANAGEMENT CAPABILITY
|
:
|
WEAK
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
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) manufacture of high
voltage xlpe cables.
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
|
|
FEDERAL POWER SDN BHD
|
LOT 8, JALAN RAGUM 15/17, 40000 SHAH ALAM, SELANGOR, MALAYSIA.
|
17892
|
17,800,000.00
|
|
|
|
|
---------------
|
|
|
|
|
17,800,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. NORAINI BTE HJ MAT NOOR
|
|
Address
|
:
|
14, JALAN SS14/8C, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
4910238
|
|
New IC No
|
:
|
551219-08-6090
|
|
Date of Birth
|
:
|
19/12/1955
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
20/07/1998
|
DIRECTOR 2
|
Name Of Subject
|
:
|
DATO' DR ABDUL RAZAK BIN ABDUL
|
|
Address
|
:
|
4, JALAN 11/4C, SECTION 11, 40100 SHAH ALAM, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
3913472
|
|
New IC No
|
:
|
500318-10-5699
|
|
Date of Birth
|
:
|
18/03/1950
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
01/06/2007
|
DIRECTOR 3
|
Name Of Subject
|
:
|
HJ ABDUL AZIZ BIN ABDUL
|
|
Address
|
:
|
15, JALAN SS 7/2, 47301 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
1140567
|
|
New IC No
|
:
|
470104-10-5007
|
|
Date of Birth
|
:
|
04/01/1947
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
01/06/2007
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
ABDUL RAZAK
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
MOHD YUSOF BIN IBRAHIM
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
JAMALI AWI
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
ERNST & YOUNG
|
|
Auditor' Address
|
:
|
MENARA MILENIUM, JALAN DAMANLELA, DAMANSARA, LEVEL 23A, 50490 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MRS. FOO SIEW LOON
|
|
|
IC / PP No
|
:
|
A0281155
|
|
|
New IC No
|
:
|
651215-08-5304
|
|
|
Address
|
:
|
88, GREEN WARD, 71700 MANTIN, NEGERI SEMBILAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
ABN AMRO BANK BHD
|
|
|
|
|
|
|
3)
|
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 SC
* A check has been conducted in our databank againt 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 databank.
PAYMENT
RECORD
|
|
|
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Import Countries
|
:
|
AUSTRALIA,NEW ZEALAND,KOREA,GERMANY,UNITED STATES
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
50%
|
|
Domestic Markets
|
:
|
PENINSULAR MALAYSIA,EAST MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
50%
|
|
Export Market
|
:
|
UNITED STATES, SAUDI ARABIA, SINGAPORE,
BRUNEI DARUSSALAM
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CASH,CHEQUES,LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
MANUFACTURING INDUSTRIES,CONTRACTOR
|
OPERATIONS
|
Products manufactured
|
:
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
FEC CABLES (M) SDN BHD
|
|
FUJIKURA FEDERAL CABLES SDN BHD
|
|
HO WAH GENTING BHD
|
|
TENAGA CABLE INDUSTRIES SDN BHD
|
|
WONDERFUL WIRE & CABLE BHD
|
|
|
|
|
|
|
Factory / Premises
|
:
|
|
LOT 6072 & 6073, JLN HJ ABD MANAM OF JLN MERU, MK KAPAR, MERU,
41050 KLANG, SELANGOR, MALAYSIA.
|
|
Tel No: 03-33929414
|
|
Fax No: 03-33929409
|
|
|
|
|
Shifts
|
:
|
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
140
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacture of high
voltage xlpe cables.
The SC is principally engaged in the manufacturing of high voltage XLPE
cables.
We were informed that the SC does not produces any low or medium voltage
cables because these products are produced by its related company, Federal
Power Sdn Bhd.
Besides that the SC is also sharing the working premises with Federal Power
Sdn Bhd.
The SC products are used for the eletrical power tranmission, submarine
cables and others.
The SC's production capacity is not consistent because it depends on the
customers orders.
The SC's 2 Manufacturing Factory is located at the Meru, Kapar, Malaysia and
its also has 3 subsidiaries company FPT ENGINEERING SDN BHD, FPT INDUSTRIES
SDN BHD and NADI TENAGA SDN BHD.
The SC's competitor are Fujikura Federal Cables Sdn Bhd, Power Cables Sdn Bhd
and others.
The SC utilises advanced automated and semi-automated machineries to ensure
production of high quality products, which meets customers' requirements.
The SC produces a wide range of high quality cables like XLPE Cables up to
275 kV, XLPE Cables up to 66 kV. and XLPE Cables up to 11 kV.
The SC's Aluminum Rods products are specified to cater for a variety of
mechanical and electrical applications including to manufacture cable for
distribution and transmission of electricity.
The SC provides services of installation cable system for underground and
submarine. We offer you the complete project management includes the final
testing of the turnkey project.
PROJECTS
No projects found in our databank
RECENT
DEVELOPMENT
We have checke with 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
|
:
|
603 55183600
|
|
Current Telephone Number
|
:
|
03-55183600
|
|
Match
|
:
|
YES
|
|
Address Provided by Client
|
:
|
LOT 8 JALAN RAGUM
15/17, P O BOX 7016 SHAH ALAM, SELANGOR DARUL EHSAN
|
|
Current Address
|
:
|
LOT 8, JALAN
RAGUM 15/17, 40000 SHAH ALAM, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with the SC's Human Resource Dept, Mr Jamali Awi.
He furnished us some information pertaining on the SC.
Later we also interviewed the SC's senior staff from Purchasing Dept. He
kindly provided us some information on the SC's services and opeartions.
FINANCIAL
COMMENTS
The financial summary of the SC in Year
2007 showed that it was financially poor. The SC has generated an
unfavourable return on its shareholders' funds, indicating that the SC did
not generate an acceptable amount of profits based on its existing
shareholders' funds. Due to its weak liquidity position, the SC will be face
with problems in meeting all its short term obligations if no short term loan
is obtained or additional capital injected into the SC. The SC has high
liabilities ratio and it may face financial difficulties if no additional
capital is injected.
Overall financial condition of the SC : POOR
ECONOMIC
/ INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2005
|
2006
|
2007
|
2008*
|
2009**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
26.13
|
26.64
|
27.17
|
27.73
|
28.31
|
|
Gross Domestic Products ( % )
|
5.3
|
5.8
|
6.3
|
5.0
|
3.5
|
|
Domestic Demand ( % )
|
7.3
|
7.0
|
9.0
|
6.1
|
6.0
|
|
Private Expenditure ( % )
|
9.5
|
7.0
|
8.6
|
6.6
|
6.4
|
|
Consumption ( % )
|
9.2
|
7.1
|
9.0
|
6.8
|
6.5
|
|
Investment ( % )
|
8.5
|
7.0
|
7.1
|
6.2
|
5.8
|
|
Public Expenditure ( % )
|
3.6
|
6.8
|
10.1
|
4.7
|
5.1
|
|
Consumption ( % )
|
5.4
|
5.0
|
10.8
|
5.7
|
4.0
|
|
Investment ( % )
|
1.9
|
8.9
|
9.3
|
3.6
|
6.4
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
99,760
|
108,192
|
100,340
|
115,563
|
126,650
|
|
Government Finance ( MYR Million )
|
<18,684>
|
<19,109>
|
<19,948>
|
<34,462>
|
<28,450>
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.8>
|
<3.3>
|
<3.2>
|
<4.8>
|
<4.8>
|
|
Inflation ( % Change in Composite CPI)
|
3.1
|
3.9
|
2.0
|
4.4
|
5.0
|
|
Unemployment Rate
|
3.5
|
3.4
|
3.2
|
3.3
|
3.2
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
266
|
290
|
336
|
388
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
5.13
|
4.21
|
3.04
|
1.91
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
13.63
|
12.91
|
13.30
|
13.24
|
-
|
|
Average Base Lending Rate ( % )
|
6.00
|
6.61
|
6.72
|
6.72
|
-
|
|
Business Loans Disbursed( % )
|
8.7
|
<2.5>
|
9.1
|
-
|
-
|
|
Foreign Investment ( MYR Million )
|
17,882.9
|
20,228.0
|
33,426.0
|
23,261.4
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
37,474
|
38,293
|
43,337
|
-
|
-
|
|
Registration of New Companies ( % )
|
<2.9>
|
2.2
|
13.2
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
3,069
|
8,647
|
22,629
|
-
|
-
|
|
Liquidation of Companies ( % )
|
<7.9>
|
181.8
|
161.5
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
193,095
|
216,147
|
227,410
|
-
|
-
|
|
Registration of New Business ( % )
|
2.1
|
11.9
|
5.2
|
-
|
-
|
|
Business Dissolved ( No. )
|
73,355
|
52,879
|
20,431
|
-
|
-
|
|
Business Dissolved ( % )
|
43.0
|
<27.9>
|
<61.4>
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
400.8
|
446.2
|
442.9
|
-
|
-
|
|
Cellular Phone Subscribers ( Million )
|
18.5
|
19.5
|
23.3
|
25.1
|
-
|
|
Tourist Arrival ( Million Persons )
|
16.7
|
17.5
|
20.9
|
21.5
|
-
|
|
Hotel Occupancy Rate ( % )
|
63.6
|
64.8
|
70.0
|
68.0
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
13.9
|
15.4
|
20.1
|
-
|
-
|
|
Bad Cheque Offenders (No.)
|
57,316
|
36,555
|
30,004
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
15,868
|
13,596
|
13,238
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<2.4>
|
<14.3>
|
<2.6>
|
-
|
-
|
|
INDUSTRIES ( % of Growth ):
|
2005
|
2006
|
2007
|
2008*
|
2009**
|
|
|
|
|
|
|
|
|
Agriculture
|
2.5
|
5.3
|
3.1
|
3.6
|
3.7
|
|
Palm Oil
|
7.1
|
5.8
|
<0.6>
|
7.0
|
-
|
|
Rubber
|
<2.9>
|
12.6
|
1.0
|
<1.1>
|
-
|
|
Forestry & Logging
|
2.0
|
<0.4>
|
2.8
|
<1.5>
|
-
|
|
Fishing
|
<0.4>
|
9.3
|
5.2
|
4.0
|
-
|
|
Other Agriculture
|
3.2
|
5.3
|
7.0
|
5.9
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
563.7
|
516.5
|
487.3
|
393
|
0
|
|
% of Industry Non-Performing Loans
|
1.19
|
1.06
|
1.08
|
0
|
0
|
|
|
|
|
|
|
|
|
Mining
|
0.8
|
<0.4>
|
3.3
|
2.8
|
3.4
|
|
Oil & Gas
|
1.6
|
4.6
|
2.2
|
12.7
|
-
|
|
Other Mining
|
<1.0>
|
5.1
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
68.8
|
55.4
|
42.2
|
36.0
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
-
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
5.1
|
7.3
|
3.1
|
4.7
|
4.3
|
|
Exported-oriented Industries
|
3.0
|
11.1
|
<1.9>
|
2.7
|
-
|
|
Electrical & Electronics
|
3.6
|
13.4
|
3.0
|
2.4
|
-
|
|
Rubber Products
|
2.4
|
0.4
|
8.0
|
4.2
|
-
|
|
Wood Products
|
0.9
|
0.7
|
3.3
|
<6.0>
|
-
|
|
Textiles & Apparel
|
<4.4>
|
12.6
|
<10.1>
|
1.9
|
-
|
|
Domestic-oriented Industries
|
6.9
|
5.0
|
5.3
|
9.9
|
-
|
|
Food, Beverages & Tobacco
|
7.7
|
4.8
|
5.6
|
9.5
|
-
|
|
Chemical & Chemical Products
|
6.9
|
1.7
|
9.2
|
1.4
|
-
|
|
Plastic Products
|
18.6
|
21.3
|
<3.6>
|
6.5
|
-
|
|
Iron & Steel
|
<6.7>
|
<6.9>
|
17.5
|
16.8
|
-
|
|
Fabricated Metal Products
|
<7.5>
|
20.0
|
26.2
|
14.7
|
-
|
|
Non-metallic Mineral
|
<6.0>
|
<1.9>
|
6.6
|
8.3
|
-
|
|
Transport Equipment
|
10.4
|
5.3
|
<19.0>
|
27.1
|
-
|
|
Paper & Paper Products
|
4.6
|
4.1
|
14.9
|
8.6
|
-
|
|
Crude Oil Refineries
|
8.2
|
12.1
|
8.6
|
7.8
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,035.6
|
6,181.3
|
6,366.2
|
5,729.4
|
-
|
|
% of Industry Non-Performing Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
<1.6>
|
<0.5>
|
4.6
|
4.0
|
3.1
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,172.7
|
5,527.3
|
5,116.7
|
4,149.8
|
-
|
|
% of Industry Non-Performing Loans
|
10.9
|
11.4
|
11.3
|
-
|
-
|
|
|
|
|
|
|
|
|
Services
|
6.6
|
7.2
|
9.7
|
7.7
|
6.9
|
|
Electric, Gas & Water
|
5.5
|
5.2
|
4.6
|
5.0
|
4.3
|
|
Transport, Storage & Communication
|
6.3
|
5.2
|
7.6
|
7.8
|
7.3
|
|
Wholesale, Retail, Hotel & Restaurant
|
8.0
|
7.1
|
11.6
|
10.0
|
7.4
|
|
Finance, Insurance & Real Estate
|
7.0
|
7.7
|
10.7
|
9.2
|
8.1
|
|
Government Services
|
7.6
|
9.8
|
4.6
|
8.6
|
4.0
|
|
Other Services
|
5.0
|
4.7
|
5.0
|
5.9
|
5.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
8,716.8
|
11,593.2
|
10,207.8
|
8,281.4
|
-
|
|
% of Industry Non-Performing Loans
|
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
|
|
31302 : Manufacture of electric power cables and wires
|
|
|
|
|
INDUSTRY :
|
MANUFACTURING
|
|
|
|
|
The manufacturing sector is expected to grow 4.7% in 2008 (2007: 3.1%),
driven by higher production in the domestic-oriented industries. Meanwhile,
export-oriented industries are envisaged to register moderate growth due to
marginal expansion in E&E output. However, the output of petroleum,
rubber as well as machinery and equipment industries are expected to record
strong growth. Overall, the manufacturing sector registered higher output
growth of 5.4% in the first six months of 2008 (January -June 2007: 0.4%).
|
|
The positive performance of the manufacturing sector was reflected in the
sales of manufactured products, which increased 15.9% to RM287 billion
(January - June 2007: 3.0%; RM248 billion). Capacity utilisation rate for
manufacturing sector remained high at 82.6% (Q1 2008: 83.0%) in the second
quarter of 2008.
|
|
The domestic-oriented industries expanded strongly by 9.9% (January - June
2007: 4.1%) in the first six months in 2008 due to higher growth in most of
the sub-sectors. The transport equipment, construction-related and food
products industries performed well and registered strong growth.
|
|
Production of export-oriented industries registered a growth rate of 2.7%
(January - June 2007: -1.8%), following slight recovery in global demand for
semiconductors and other electronic products and components.
|
|
Malaysia's total exports accelerated to 15.5% (January - June 2007: 1.2%)
in the first six months of 2008, driven by strong exports of commodities
and recovery in the exports of manufactured goods. Manufacturing exports,
which contributed 76.2% to total exports and increased 4.5% (2007: 0.6%),
remained the major contributor to total export earnings.
|
|
The Beijing Olympics 2008 as well as the expansion in mobile penetration in
emerging markets are anticipated to generate strong demand for
semiconductors. In addition, the non-E&E industries, particularly
domestic-oriented and selected resource-based industries that export mainly
to the region, are expected to perform favourably during the year.
Industries related to the construction sector, including fabricated metal
are likely to see an improved performance supported by higher construction
activity. Off-estate processing activity should strengthen following the
recovery in production of palm oil and rubber. Meanwhile, growth in the
chemicals and chemical products sector may be constrained by the rising raw
material prices.
|
|
The manufacturing sector is expected to grow 4.3% in 2009 (2008: 4.7%) in
view of stable performance of the export oriented-industries and continued
expansion in domestic demand.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Marginal Growth
|
COMMENTS
|
Incorporated in 1993, the SC is a private limited company, focusing on manufacturing
of high voltage xlpe cables. Having been in the industry for over a decade,
the SC has achieved a certain market share and has built up a satisfactory
reputation in the market. With an issued and paid up capital of RM17.8
million and strong shareholders' backing, the SC has the ability to further
expand its business in the future.
|
|
Throughout its years of establishment, the SC has built up an extensive
network in the market. In an effort to capture a higher market shares, the
SC has penetrated into the global market. Its customer's base has extended
from Malaysia to United States, Singapore, Brunei and etc. Such a wide
marketing network has minimised the SC's commercial risk. The SC currently
has 140 workforce in its operation. The red shareholders' funds implied
that the SC's management capability is weak.
|
|
As at 2007, the SC posted a total turnover and pre-tax profit of RM2.32
million and RM1.03 million respectively. The SC has generated an
unfavourable return on shareholders' funds indicating that the management
was inefficient in utilising its funds to generate return. Low liquidity
and high gearing level has placed the SC on high financial risk. Its future
performance is vulnerable. The SC's unfavourable financial performance has
wiped out its shareholders' funds to a deficit of RM10.32 million.
Therefore, the SC as a going concern is much dependent on its ability to
generate sufficient cash flow and obtain additional financing to meet its
future obligations.
|
|
Our investigation revealed that the SC sources 40% of its products locally
while the rest are obtained from overseas suppliers. As an export-oriented
company and being involved in import activities, the SC is exposed to
foreign exchange risk.
|
|
The SC is clear of any litigation action.
|
|
The industry expects to enjoy a marginal growth in the near term. As the
market competition is tight, the SC should adopt more marketing strategies
in order to retain its market position as well as compete with other well
established players in the same field.
|
|
In view of above and due to its red shareholders' fund, we do not recommend
any credit be granted to the SC.
|
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING
STANDARD.
|
|
|
|
PROFIT AND LOSS ACCOUNT
|
|
FP TECHNOLOGIES SDN BHD
|
|
31-December-2007
|
|
Consolidated Accounts
|
:
|
NO
|
|
UnQualified Reports
|
:
|
YES
|
|
|
|
|
RM
|
|
Turnover
|
2,316,725.00
|
|
Operating Revenue
|
0.00
|
|
|
---------------------
|
|
Profit/(Loss) Before Tax
|
1,032,851.00
|
|
|
---------------------
|
|
|
|
Profit/(Loss) After Tax
|
1,032,851.00
|
|
Extraordinary Item
|
0.00
|
|
Minority Interest
|
0.00
|
|
|
---------------------
|
|
Profit/(Loss) Attributable to Shareholders
|
1,032,851.00
|
|
|
---------------------
|
|
|
|
Prior Period Adjustment
|
0.00
|
|
Net Dividend
|
0.00
|
|
Transferred To/From Reserved
|
0.00
|
|
Others
|
0.00
|
|
|
---------------------
|
|
Unappropriated Profit/(Loss) Brought Forward
|
<33,844,169.00>
|
|
|
---------------------
|
|
Unappropriated Profit/(Loss) Carried Forward
|
<32,811,318.00>
|
|
|
================
|
|
|
|
BALANCE SHEET
|
|
FP TECHNOLOGIES SDN BHD
|
|
31-December-2007
|
|
Consolidated Accounts
|
:
|
NO
|
|
UnQualified Reports
|
:
|
YES
|
|
|
|
|
RM
|
|
Fixed Assets
|
4,688,317.00
|
|
Total Investment
|
0.00
|
|
Amount Owing By
|
0.00
|
|
Current Assets
|
16,691,919.00
|
|
Intangible Assets
|
0.00
|
|
Other Assets
|
0.00
|
|
|
---------------------
|
|
Total Assets
|
21,380,236.00
|
|
|
================
|
|
|
|
|
Working Capital
|
<15,011,318.00>
|
|
|
|
|
Issued Capital
|
17,800,000.00
|
|
Paid Up Capital
|
17,800,000.00
|
|
Share Premium & Reserved
|
4,688,317.00
|
|
Unappropriated Profit/(Loss)
|
<32,811,318.00>
|
|
|
---------------------
|
|
Shareholder's Fund/Equity
|
<10,323,001.00>
|
|
|
---------------------
|
|
|
|
Current Liabilities
|
31,703,237.00
|
|
Amount Owing To
|
0.00
|
|
Long-term and Deferred Liabilities
|
0.00
|
|
Share Application Account
|
0.00
|
|
Minority Interest
|
0.00
|
|
|
---------------------
|
|
Total Equity Liability
|
21,380,236.00
|
|
|
================
|
|
|
|
|
Contingent Liabilities
|
0.00
|
|
