MIRA
INFORM REPORT
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Report Date : |
03.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
MULTICO (M) SDN BHD |
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Registered Office : |
39, Jalan Yap Kwan Seng, 50450 Kuala Lumpur, Wilayah
Persekutuan |
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Country : |
Malaysia |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
25/11/1974 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trading, Servicing all kinds of Equipment, Machinery, Parts and Accessories. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
* Adopted abbreviations : SC - Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 20750-P
COMPANY NAME : MULTICO (M) SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 25/11/1974
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : 39, JALAN YAP KWAN SENG, 50450 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
BUSINESS ADDRESS : 2, JLN BS 7/16 KAWASAN PERINDUSTRIAN BUKIT
SERDANG, 43300 SERI KEMBANGAN, SELANGOR,
MALAYSIA.
TEL NO : 03 - 89436763/89436877
FAX NO : 03 - 89436763
CONTACT PERSON : LEONG TING CHEE (EXECUTIVE DIRECTOR)
INDUSTRY CODE : 51591
PRINCIPAL ACTIVITY : TRADING, SERVICING ALL KINDS OF EQUIPMENT,
MACHINERY, PARTS AND ACCESSORIES
AUTHORISED CAPITAL : MYR15,000,000.00 DIVIDED INTO ORDINARY SHARE
15,000,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR5,000,000.00 DIVIDED INTO ORDINARY SHARE
5,000,000 CASH OF MYR1.00 EACH.
SALES : MYR10,651,842 [2007]
NET WORTH : < MYR767,281 > [2007]
STAFF STRENGTH : 30 [2007]
BANKER (S) : PUBLIC BANK BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : POOR
PAYMENT : FAIR
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : HIGH
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) trading, servicing all kinds of equipment, machinery, parts and accessories.
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 immediate holding company of the SC is MULTI-CORPORATION (S) PTE LTD, a company incorporated in SINGAPORE.
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
MULTI-CORPORATION (S) PTE 11 TUAS VIEW CRESCENT, MULTICO 4,625,000
LTD BUILDING,
637643, SINGAPORE.
MR. LEE EU KIM + 11
JALAN 13, UNITED GARDEN, OFF JALAN 3324284 375,000
KLANG
LAMA, 58200 KUALA LUMPUR, 490128-04-5481
WILAYAH
PERSEKUTUAN, MALAYSIA.
--------------------
5,000,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. LEE EU KIM
Address : 11 JALAN 13, UNITED GARDEN, OFF JALAN KLANG LAMA, 58200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No. : 3324284
New IC No : 490128-04-5481
Date of Birth : 28/01/1949
Nationality : MALAYSIAN CHINESE
DIRECTOR 2
Name of Subject : MR. CHIN FOOT WONG
Address : 92 JALAN 2/62, BANDAR MENJALARA, 52100 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No. : 8396225
New IC No : 531112-10-6209
Date of Birth : 12/11/1953
Nationality : MALAYSIAN CHINESE
DIRECTOR 3
Name of Subject : PEPEN HANDIANTO DAMUATMADJA
Address : BLOCK 1P PIRIE GROVE, 16-82, 591401, SINGAPORE.
IC / PP No. : S2634634G
Nationality : SINGAPOREAN
Remark : OLD PP: H792903
DIRECTOR 4
Name of Subject : MR. HENRICUS JOSEF HENDRA
Address : 19 CHILTERN DRIVE, 1335, SINGAPORE.
IC / PP No. : A326076
Nationality : INDONESIAN
MANAGEMENT
1) Name of Subject : LEONG TING CHEE
Position : EXECUTIVE DIRECTOR
AUDITOR
Auditor : Y L CHEE & CO
Auditors' Address : 12-2, JALAN PJU 8/5C, PERDANA BUSINESS CENTRE, BANDAR
DAMANSARA PERDANA, 47820 PETALING JAYA, SELANGOR, MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MR. LOY TUAN BEE
IC / PP No. : 4579152
New IC No. : 540215-08-6145
Address : 23, JALAN SS 26/7A, TAMAN MAYANG JAYA, 47301 PETALING
JAYA, SELANGOR, MALAYSIA.
2) Company Secretary : MS. WONG WAI YIN
IC / PP No. : 4963499
New IC No. : 560328-10-5734
Address : 19, JALAN TELOK PULAI, TAMAN SEPUTEH, 58000 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
BANKING
Banking relations are maintained principally with :
1) Banker Name : PUBLIC BANK BHD
ENCUMBRANCE (S)
ENCUMBRANCE 1
Date of Creation : 01 Jun 2005
Description of Charge : FACILITIES AGREEMENT, OPEN ALL MONIES CHARGE &
DEED OF SUBORDINATION
Amount Secured : N/A
Description of Property Affected : 1 UNIT OF SINGLE STOREY SEMI-DETACHED FACTORY WT
A DOUBLE STOREY OFFICE BUILDING KNOWN AS 2, JLN
BS 7/16, KAW PERINDUSTRIAN BUKIT SERDANG, 43300
SERI KEMBANGAN, SELANGOR & HELD UNDER INDIVIDUAL
TITLE HSD 100944 PT 26613, PETALING SELANGOR
Name & Address of Chargee : PUBLIC BANK BHD
MENARA PUBLIC BANK, 146 JALAN AMPANG, GROUND
FLOOR, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
Form 40 Dated 01 Jul 2005
Registered and Numbered 3 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 Malaysia
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 : UNITED STATES , JAPAN.
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 [ ]
Fair [ X ] Poor [ ]
CLIENTELE
Local : YES Percentage : 100%
Domestic Markets : MALAYSIA.
Overseas : NO Percentage : 0 %
Credit Term : 30 DAYS.
Payment Mode : CHEQUES , TELEGRAPHIC TRANSFER (TT).
Type of Customer : END USERS.
OPERATIONS
Goods Traded : HEAVY EQUIPMENTS - CRANES & OTHERS
Competitor(s) : UMW CORPORATION SDN BHD
TRACTORS MALAYSIA (1982) SDN BHD
UMW (EAST MALAYSIA) SDN BHD
MALAYSIAN INTERNATIONAL TRADING CORPORATION (JAPAN) SDN BHD
DELCOM SERVICES SDN BHD
Ownership of premises : OWNED
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 30 31 31
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 : 0389436763/89436877
Current Telephone Number : 03-89436763/89436877
Match : YES
Address Provided By Client : 2, JLN BS 7/16 KAWASAN PERINDUSTRIAN BUKIT
SERDANG, 43300, SERI KEMBANGAN, SELANGOR.
Current Address : 2, JLN BS 7/16 KAWASAN PERINDUSTRIAN BUKIT
SERDANG, 43300 SERI KEMBANGAN, SELANGOR,
MALAYSIA.
Match : YES
Latest Financial Accounts : YES
Other Investigations
We contacted one of the Senior staff from the Accounts Department. She provided some information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 52.24% ]
Profit / ( Loss ) before tax : Increased [ 922.12% ]
Return on Shareholder Funds : Unfavourable [ < 125.45% > ]
Return on Net Assets : Acceptable [ 17.80% ]
The increase in turnover could be due to the SC adopting an aggressive marketing strategy. The higher profit could be attributed to the increase in turnover. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.
Working Capital Control :
Stocks Ratio : Unfavourable [ 98 Days ]
Debtors Ratio : Unfavourable [ 128 Days ]
Creditors Ratio : Unfavourable [ 74 Days ]
The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. 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 [ 1.00 Times ]
Current Ratio : Unfavourable [ 1.68 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 [ 88.17 Times ]
Gearing Ratio : Unfavourable [ < 0.19 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's gearing was negative during the year as its shareholders' funds was in the red. This means the SC is running its business using borrowed money. We consider the SC as facing high financial risks.
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: POOR
COMMENTS
Incorporated in 1974, the SC is principally engaged in the trading, servicing of all kinds of equipments, machinery, parts and accessories. With its long presence in the market coupled with its vast experience in the business, the SC should have built up its reputation and image in the market. Being supported by its holding company and having a paid up capital of RM5 million, the SC is expected to enjoy timely assistance when the needs arise.
Our investigation revealed that the SC serves mainly customers from the local market. Being highly dependent on one market segment, the SC faces high business risk compared to other export-oriented companies in the market. Besides that, this narrow market segment limits its business expansion opportunities and makes it vulnerable to the changes in the local economy. Presently, the SC has a work force of 30 employees in the operations. Its management capability is considered average.
For the financial year 2007, the SC reported turnover and pre-tax profit of RM10,651,842 and RM962,553 respectively. The SC has generated an unfavourable return on shareholders' funds. This was due to higher accumulated losses of RM5,767,281. The SC has enough current assets to cover its current liabilities. Thus it is able to meet its short term obligations. Nonetheless, an unfavourable gearing ratio has placed the SC at high financial risk. The overall financial performance of the SC is poor.
We noted that the SC sources its products locally and also from the overseas market. Being involved in import activities, the SC is exposed to foreign exchange risk.
Based on its financial historical data, the SC's payment record is fair and there are no legal suit against the SC.
The industry shows a downward trend. Thus the SC is required to adopt new strategies to strengthen its business position in the market.
In view of its red shareholders' funds, we are against granting credit to the SC.
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH
MALAYSIA ACCOUNTING STANDARD.
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-March-2007
MULTICO
(M) SDN BHD
2007 2006
MYR MYR
TURNOVER 10,651,842 6,996,703
=========== ===========
PROFIT/(LOSS) FROM OPERATIONS 962,553 94,172
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
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PROFIT/(LOSS)
BEFORE TAXATION 962,553 94,172
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PROFIT/(LOSS)
AFTER TAXATION 962,553 94,172
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 962,553 94,172
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PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 962,553 94,172
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported <6,729,834> <6,824,006>
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As restated <6,729,834> <6,824,006>
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PROFIT
AVAILABLE FOR APPROPRIATIONS <5,767,281> <6,729,834>
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RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD <5,767,281> <6,729,834>
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RETAINED BY: The Company <5,767,281> <6,729,834>
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<5,767,281> <6,729,834>
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INTEREST
EXPENSE (as per notes to P&L)
Hire purchase 11,042 17,443
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11,042 17,443
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BALANCE SHEET
As
At 31-March-2007
2007 2006
MYR MYR
ASSETS
EMPLOYED:
FIXED ASSETS 2,592,620 2,758,546
LONG
TERM INVESTMENTS/OTHER ASSETS
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INTANGIBLE
ASSETS
------------------- -------------------
------------------- -------------------
TOTAL LONG
TERM ASSETS 2,592,620 2,758,546
CURRENT
ASSETS
Stocks 2,862,181 3,767,765
Trade debtors 3,727,942 2,030,998
Other
debtors, deposits & prepayments 331,974 267,711
Items in
transit between head office & branches
Amount due
from related companies 6,684 4,708
Cash &
bank balances 199,904 28,418
------------------- -------------------
TOTAL CURRENT
ASSETS 7,128,685 6,099,600
CURRENT
LIABILITIES
Trade
creditors 2,154,701 569,682
Other
creditors & accruals 1,404,905 1,158,169
Hire purchase
& lease creditors 52,229 81,872
Bank
overdraft - 246,522
Bill &
acceptances payable - 285,000
Amounts owing
to holding company 424,784 605,550
Amounts owing
to related companies 215,145 776,793
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TOTAL CURRENT
LIABILITIES 4,251,764 3,723,588
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NET CURRENT
ASSETS/(LIABILITIES) 2,876,921 2,376,012
------------------- -------------------
TOTAL NET
ASSETS 5,469,541 5,134,558
=========== ===========
FINANCED
BY:
SHARE CAPITAL
Ordinary
share capital 5,000,000 5,000,000
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TOTAL SHARE
CAPITAL 5,000,000 5,000,000
RESERVES
Retained
profit/(Accumulated loss) carried
forward <5,767,281> <6,729,834>
------------------- -------------------
TOTAL
RESERVES <5,767,281> <6,729,834>
------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY <767,281> <1,729,834>
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Hire purchase
creditors 89,845 94,981
due to
holding company 5,105,400 5,678,106
due to
related companies 1,041,577 1,091,305
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 6,236,822 6,864,392
------------------- -------------------
5,469,541 5,134,558
=========== ===========
FINANCIAL RATIOS
As
At 31-March-2007
MULTICO
(M) SDN BHD
2007 2006
MYR MYR
TYPES OF
FUNDS
Cash 199,904 28,418
Net Liquid
Funds 199,904 <218,104>
Net Liquid
Assets 14,740 <1,391,753>
Net Current
Assets/(Liabilities) 2,876,921 2,376,012
Net Tangible
Assets 5,469,541 5,134,558
Net Monetary
Assets <6,222,082> <8,256,145>
BALANCE
SHEET ITEMS
Total
Borrowings 142,074 423,375
Total
Liabilities 10,488,586 10,587,980
Total Assets 9,721,305 8,858,146
Net Assets 5,469,541 5,134,558
Net Assets
Backing <767,281> <1,729,834>
Shareholders''
Funds <767,281> <1,729,834>
Total Share
Capital 5,000,000 5,000,000
Total
Reserves <5,767,281> <6,729,834>
LIQUIDITY
(Times)
Cash Ratio 0.05 0.01
Liquid Ratio 1.00 0.63
Current Ratio 1.68 1.64
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 98 197
Debtors Ratio 128 106
Creditors
Ratio 74 30
SOLVENCY
RATIOS (Times)
Gearing Ratio <0.19> <0.24>
Liabilities
Ratio <13.67> <6.12>
Times
Interest Earned Ratio 88.17 6.40
PERFORMANCE
RATIO (%)
Operating
Profit Margin 9.04 1.35
Net Profit
Margin 9.04 1.35
Return On Net
Assets 17.80 2.17
Return On
Capital Employed 17.63 2.04
Return On
Shareholders'' Funds/Equity <125.45> <5.44>
Dividend Pay
Out Ratio (Times) 0 0
NOTES
TO ACCOUNTS
Contingent
Liabilities 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 |
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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%)