MIRA INFORM REPORT

 

 

 

Report Date :

03.07.2008

 

IDENTIFICATION DETAILS

 

Name :

ACERINOX MALAYSIA SDN BHD

 

 

Registered Office :

Suite 5.3a, Menara Pelangi, 2 Jaln Kuning, Taman Pelangi, Level 5, 80400 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

03.09.2004

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trading of Stainless Steel Products


 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

 

* Adopted abbreviations :          SC - Subject Company (the company enquired by you)

                                              N/A - Not Applicable

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

664822-X

COMPANY NAME

:

ACERINOX MALAYSIA SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

03/09/2004

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

REGISTERED ADDRESS

:

SUITE 5.3A, MENARA PELANGI, 2 JALN KUNING, TAMAN PELANGI, LEVEL 5, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

PTD 175189, BATU 11 1/2 , JALAN JOHOR BAHRU - KOTA TINGGI, 81800 ULU TIRAM, JOHOR, MALAYSIA.

TEL.NO.

:

07-8625252

FAX.NO.

:

07-8617377

WEB SITE

:

www.acerinox.com

CONTACT PERSON

:

RAMOS FLORES BENJAMIN ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

51420

PRINCIPAL ACTIVITY

:

TRADING OF STAINLESS STEEL PRODUCTS

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 24,000,000.00 DIVIDED INTO
ORDINARY SHARES 24,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 824,526,397 [2006]

NET WORTH

:

MYR 89,370,616 [2006]

 

 

 

STAFF STRENGTH

:

5 [2008]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

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) trading of stainless steel products.

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 and ultimate holding company of the SC is ACERINOX S A, a company incorporated in SPAIN.

The major shareholder(s) of the SC are shown as follows :

Name

Address

IC/PP/Loc No

Shareholding

ACERINOX S.A.

CALLE SANTIAGO DE COMPOSTELA, 100 28035 MADRID, SPAIN.

 

23,999,999.00

INOXIDABLES DE EUSKADI S.A.

POLIGONO INDUSTRIAL DE JUNDIZ, CALLE LERMAND ABIDE, 17, 01195, VICTORIA, SPAIN.

 

1.00

 

 

 

---------------

 

 

 

24,000,000.00

 

 

 

============

 

+ Also Director

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. MOHD RIZAL BIN OMAR

Address

:

31, JALAN TENANG 12, TAMAN DAMAI JAYA, 81300 SKUDAI, JOHOR, MALAYSIA.

 

 

 

New IC No

:

831129-01-5121

Date of Birth

:

29/11/1983

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

19/07/2006

 

DIRECTOR 2

 

Name Of Subject

:

MR. PETER JOHN A/L IRUDAYAMARY

Address

:

32, JALAN BULAT, TAMAN CENTURY, 80250 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

5791104

New IC No

:

591109-10-5445

Date of Birth

:

09/11/1959

Nationality

:

MALAYSIAN INDIAN

Date of Appointment

:

19/07/2006

 

DIRECTOR 3

 

Name Of Subject

:

VALENCIA DIAZ JOSE CARLOS

Address

:

CALLE BRISTOL 18, 280828 MADRID, SPAIN.

IC / PP No

:

01480538M

Date of Birth

:

11/04/1952

Nationality

:

SPANISH

Date of Appointment

:

03/09/2004

 

DIRECTOR 4

 

Name Of Subject

:

FERRANDIS TORRES MIGUEL

Address

:

CALLE PABLE VIDAL 7, 28043 MADRID, SPAIN.

IC / PP No

:

51389145S

Date of Birth

:

13/05/1966

Nationality

:

SPANISH

Date of Appointment

:

03/09/2004

 

DIRECTOR 5

 

Name Of Subject

:

RAMOS FLORES BENJAMIN

Address

:

132, TANJUNG RHU ROAD, PEBBLE BAY, 14-10, 436919, SINGAPORE.

IC / PP No

:

ESPX553608

Date of Birth

:

07/07/1964

Nationality

:

SPANISH

Date of Appointment

:

03/09/2004

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

RAMOS FLORES BENJAMIN

 

Position

:

DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

MENARA ANSAR, 65 JALAN TRUS, LEVEL 14, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SUJATA MENON A/P K R D S CHANDRAN

 

IC / PP No

:

A1515978

 

New IC No

:

700202-01-5954

 

Address

:

3, JALAN PUTEH 5, TAMAN PELANGI, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

 

Date of Appointment

:

03/09/2004

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

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

:

NO

Percentage

:

0%

Overseas

:

YES

Percentage

:

100%

Import Countries

:

SPAIN



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

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

TELEGRAPHIC TRANSFER (TT),CHEQUES

Type of Customer

:

END USERS,INDUSTRIAL SECTOR

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

STAINLESS STEEL

 

 

 

Competitor(s)

:

ANN JOO CORPORATION SDN BHD

EDARAN MAJU-MUDA SDN BHD

METROD (OFHC) SDN BHD

S.P. TECHVANCE CORPORATION SDN BHD

STAR SHINE MARKETING SDN BHD

 

 

 

Ownership of premises

:

LEASED/RENTED

 

Total Number of Employees:

 

YEAR

2008

2007

2006

2005

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

5

4

3

1

 

 

 

 

 

 

Branch

:

NO

Other Information:


The SC is principally engaged in the (as a / as an) trading of stainless steel products.

The SC is a foreign based company.

We were informed that the SC's Head Office is based in Spain and it has related companies located in USA, South Africa and Europe.

The SC's products range includes:

- billets

- hot rolled coils

- flat bars

- cold rolled coils

- cold rolled sheets

The SC keeps the stocks and materials in the warehouse.

The SC's warehouse located at the same premises.

 

PROJECTS


No projects found in our databank

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

:

607 8625230

Current Telephone Number

:

07-8625252

Match

:

NO

 

 

 

Address Provided by Client

:

PTD 175189, BATU 11 1/2 , JALAN JOHOR BAHRU - KOTA TINGGI, 81800 ULU TIRAM, JOHOR.

Current Address

:

PTD 175189, BATU 11 1/2 , JALAN JOHOR BAHRU - KOTA TINGGI, 81800 ULU TIRAM, JOHOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We have contacted one of the staff from the SC's Admin Department. She revealed some information on the SC.

FINANCIAL COMMENTS

 

 

Profitability:

Turnover

:

Increased

[

146.38%

]

Profit/(Loss) Before Tax

:

Increased

[

272.24%

]

Return on Shareholder Funds

:

Favourable

[

61.23%

]

Return on Net Assets

:

Favourable

[

61.62%

]


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. 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:

Stock Ratio

:

Unfavourable

[

77 Days

]

Debtors Ratio

:

Unfavourable

[

120 Days

]

Creditors Ratio

:

Favourable

[

0 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 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

:

Unfavourable

[

0.76 Times

]

Current Ratio

:

Unfavourable

[

1.25 Times

]


A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

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 Accessment:

Generally, the SC's performance has improved with higher turnover and profit. Due to its weak liquidity position, the SC will be faced 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 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 : FAIR

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

6.3

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 ( MYR Million )

80,663

99,760

108,192

99,965

99,599

Government Finance ( MYR 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

5.0

Unemployment Rate

3.5

3.5

3.4

3.5

3.3

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

254

266

290

-

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

13.84

13.63

12.91

-

-

Average 3 Months of Non-performing Loans ( % )

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

-

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

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

57,316

36,555

-

-

Individual Bankruptcy ( No.)

16,251

15,868

13,596

-

-

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

3.4

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 ( MYR Million )

620.3

563.7

516.5

487.3

0

% of Industry Non-Performing Loans

1.38

1.19

1.06

1.08

0

 

 

 

 

 

 

 

 

 

 

Mining

3.9

0.8

<0.4>

3.3

6.0

Oil & Gas

4.5

1.6

4.6

-

-

Other Mining

<8.0>

<1.0>

5.1

-

-

Industry Non-performing Loans ( MYR 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

1.8

Exported-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 ( MYR 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

5.5

Industry Non-Performing Loans ( MYR 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

7.7

Electric, 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 ( MYR 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

51420 : Wholesale of metals, metal ores and fabricated metals

 

 

INDUSTRY :

METAL

 

 

 


Malaysia's exports remained robust in January 2007, registering RM46.99 billion and the manufactures of metal industry is one of the contribution in terms of value to Malaysia's total exports. In January 2007, export for manufactured of metals stand at RM1.24 billion or 2.6% of total exports while the import of manufactures of metals is RM2.16 billion or 5.3% of total imports.


The basic metal products which covers primary processing and downstream manufacturing of ferrous (iron & steel) and non- ferrous (aluminum, tin, copper, zinc, lead) metal products. In 2006, (January-November) the sales of non-ferrous metal products amounted to RM6.2 billion while the exports of nonferrous products amounted RM6.2 billion. In 2006, a total of 30 projects were approved in the basic metal products industry with investments of RM2.7 billion.


Metal fabrication activities can be classified into four categories:


1) fabrication for offshore/onshore oil and gas industry;


2) building and civil construction fabrication;


3) processing and manufacturing plant fabrication; and


4) industrial M&E structures and component fabrication.


Other activities include the manufacture of tanks, drums, metal boxes, tin cans, metal furniture and fixtures, wire and wire products, non-ferrous metal products and household wares. In 2006, a total of 18 projects were approved for the manufacture of fabricated metal products with investments of RM180.9 million.


The Construction-related industries (basic and fabricated metals products as well as non-metallic minerals) registered robust growth in 4th quarter 2006. The domestic-oriented industries grew by 5.4% in the fourth quarter (Q3 2006: 6.2%). The construction-related industries, especially basic and fabricated metals as well as nonmetallic minerals grew by 25.7%, 32%, and 8.8% (Q3 2006: 7.9%; 36.1%; 8.1%), respectively supported by roll-out of infrastructure projects under the 9MP.


In the domestic-oriented industries, the improvement in the construction-related industries is expected to further lend support to the expansion of the metal sector.


Note : The Ninth Malaysia Plan (9MP) was tabled in Parliament on March 31, 2006, is the five-year blueprints within the new National Mission policy and implementation framework from now until 2010. Malaysia is expected to see some structural changes and improved performance in the economy.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth



COMMENTS

 


Under the control of Acerinox S A, the SC is principally engaged in trading of stainless steel products. Although the SC has been in the industry for only 4 years, it has stabilised its business position in the market with a paid up capital of RM24 million. Such a large paid up capital enables the SC to gain higher market share while competing aggressively in the market. Besides that, backed by its strong established holding company, the SC's business position in considered stable.


In an effort to strengthen its position in the market, the SC had expanded its business into the global market such as Asian countries. Hence, the SC has diversified its business risk and increased its profitability via penetrating into the overseas market. We noted that the SC is well competing in the market. This is proved by significant increased in its turnover and pre-tax profit. As a whole, the SC's business risk is mediocre. To date, the SC's management is assisted by 5 employees in the operations.


For the financial year 2006, the SC recorded turnover and pre-tax profit of RM824.53 million and RM55.07 million respectively. Return on shareholders' funds of the SC is high, indicating that the SC was efficient in utilising its funds to generate return. However, due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term obligations. Being a zero geared company, the SC is able to acquire additional funds to finance its business. The overall financial standing of the SC is fair. Given a favourable networth of RM89.37 million, the SC's growth prospect is bright.


We noted that the SC is an import-oriented company as it sources all of its resources from overseas market. As a result, the SC is exposed to high foreign exchange risk.


Based on its financial historical data, the SC's pattern of payment habit is average and it is clear of litigation.


The metal industry is enjoying marginal growth and it is quite competitive. With the normal outlook of the industry, the SC has to implement aggressive marketing strategies in order to capture its own market shares in the market and to compete with other well established players in the same industry.


In view of the above, we recommend credit be granted to the SC normally.





 

 

 

 

 

 

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.

ACERINOX MALAYSIA SDN BHD

For The Year Ended 31-December-2006

 

 

 

16 month

 

2006

2005

 

MYR

MYR

 

 

 

 

 

 

TURNOVER

824,526,397

334,658,359

 

==========

==========

PROFIT/(LOSS) FROM OPERATIONS

55,066,602

14,793,294

 

 

 

 

------------

------------

PROFIT/(LOSS) BEFORE TAXATION

55,066,602

14,793,294

Taxation

<345,280>

<4,144,000>


PROFIT/(LOSS) AFTER TAXATION

------------
54,721,322

------------
10,649,294

 

 

 

 

 

 


PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

------------
54,721,322

------------
10,649,294

 

 

 


PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD

------------
54,721,322

------------
10,649,294

As previous reported

10,649,294

-

 

 

 


As restated

------------
10,649,294

------------
-

 

------------

------------

PROFIT AVAILABLE FOR APPROPRIATIONS

65,370,616

10,649,294

 

 

 


RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD

------------
65,370,616
==========

------------
10,649,294
==========

RETAINED BY: The Company

65,370,616

10,649,294

 

 

 

 

------------
65,370,616
==========

------------
10,649,294
==========

 

BALANCE SHEET

 

ACERINOX MALAYSIA SDN BHD

As At 31-December-2006



 

 

16 month

 

2006

2005

 

MYR

MYR

 

 

 

ASSET EMPLOYED:

 

 

FIXED ASSETS

5,930

2,885

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

 

 

 

Deffered assets

81,000

-

 

 

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

------------
81,000

------------
-

 

 

 

TOTAL LONG TERM ASSETS

------------
86,930

------------
2,885

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

      Stocks

174,759,304

22,545,633

 

 

 

      Trade debtors

271,632,949

85,804,248

      Other debtors, deposits & prepayments

-

8,115

 

 

 

 

 

 

      Amount due from holding company

30,285

182,402

      Amount due from subsidiary companies

-

135,947

      Amount due from related companies

539,387

-

 

 

 

 

 

 

      Cash & bank balances

2,242,617

3,018,121

TOTAL CURRENT ASSETS


------------
449,204,542


------------
111,694,466

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

      Other creditors & accruals

12,127,288

3,549,399

 

 

 

      Deposits from customers

5,120,056

1,938,131

 

 

 

      Amounts owing to holding companies

94,962,178

35,755,761

 

 

 

      Amounts owing to related companies

247,420,334

34,674,266

 

 

 

 

 

 

      Provision for taxation

291,000

1,022,500

 

 

 

TOTAL CURRENT LIABILITIES

------------
359,920,856

------------
76,940,057

NET CURRENT ASSETS/(LIABILITIES)

------------
89,283,686

------------
34,754,409

TOTAL NET ASSETS

------------
89,370,616
==========

------------
34,757,294
==========

 

 

 

FINANCED BY:

 

 

 

 

 

SHARE CAPITAL

 

 

      Ordinary share capital

24,000,000

24,000,000

 

 

 

TOTAL SHARE CAPITAL

------------
24,000,000

------------
24,000,000

 

 

 

RESERVES

 

 

      Retain profit/(Accumulated loss) carried forward

65,370,616

10,649,294


TOTAL RESERVES

------------
65,370,616

------------
10,649,294


SHAREHOLDERS' FUNDS/EQUITY


------------
89,370,616


------------
34,649,294

 

 

 

 

 

 


LONG TERM & DEFERRED LIABILITIES & PROVISIONS

 

 

 

 

 

      Deferred taxation

-

108,000


TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS

------------
-

------------
108,000

 

------------

------------

 

89,370,616

34,757,294

 

==========

==========

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIOS

 

ACERINOX MALAYSIA SDN BHD

As At 31-December-2006



 

 

16 month

 

2006

2005

 

MYR

MYR

 

 

 

 

 

 

TYPES OF FUNDS

 

 

      Cash

2,242,617

3,018,121

      Net Liquid Funds

2,242,617

3,018,121

      Net Liquid Assets

<85,475,618>

12,208,776

      Net Current Assets/(Liabilities)

89,283,686

34,754,409

      Net Tangible Assets

89,370,616

34,757,294

      Net Monetary Assets

<85,475,618>

12,100,776

 

 

 

BALANCE SHEET ITEMS

 

 

      Total Borrowings

0

0

      Total Liabilities

359,920,856

77,048,057

      Total Assets

449,291,472

111,697,351

      Net Assets

89,370,616

34,757,294

      Net Assets Backing

89,370,616

34,649,294

      Shareholders" Funds

89,370,616

34,649,294

      Total Share Capital

24,000,000

24,000,000

      Total Reserves

65,370,616

10,649,294

 

 

 

LIQUIDITY(Times)

 

 

      Cash Ratio

0.01

0.04

      Liquid Ratio

0.76

1.16

      Current Ratio

1.25

1.45

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

      Stock Ratio

77

25

      Debtors Ratio

120

94

      Creditors Ratio

0

0

 

 

 

SOLVENCY RATIOS (Times)

 

 

      Gearing Ratio

0

0

      Liabilities Ratio

4.03

2.22

      Times Interest Earned Ratio

0

0

 

 

 

PERFORMANCE RATIO (%)

 

 

      Operating Profit Margin

6.68

4.42

      Net Profit Margin

6.64

3.18

      Return On Net Assets

61.62

42.56

      Return On Capital Employed

61.62

42.56

      Return On Shareholders' Funds/Equity

61.23

30.73

      Dividend Pay Out Ratio (Times)

0

0

 

 

 

NOTES TO ACCOUNTS

 

 

      Contingent Liabilities

0.00

0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.43.21

UK Pound

1

Rs.85.72

Euro

1

Rs.67.92

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions