MIRA INFORM REPORT

 

 

 

Report Date :

23.07.2008

 

IDENTIFICATION DETAILS

 

Name :

M S ELEVATORS SDN BHD

 

 

Formerly Known As :

PETRO-PIPE PILING (M) SDN BHD

 

 

Registered Office :

Wisma Penang Garden, 42 Jalan Sultan Ahmad Shah, 8th Floor, 10050 Pulau Pinang, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

18.07.1983

 

 

Com. Reg. No.:

104187-U

 

 

Legal Form :

PRIVATE LIMITED

 

 

Line of Business :

Manufacturing, Assembling and Sale of Elevators

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

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

                                                N/A - Not Applicable

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

104187-U

COMPANY NAME

:

M S ELEVATORS SDN BHD

FORMER NAME

:

W S ELEVATORS SDN BHD (12/09/2000)
PETRO-PIPE PILING (M) SDN BHD (31/10/1986)

INCORPORATION DATE

:

18/07/1983

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

REGISTERED ADDRESS

:

WISMA PENANG GARDEN, 42 JALAN SULTAN AHMAD SHAH, 8TH FLOOR, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

WISMA PENANG GARDEN, 8TH FLOOR, 42 JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-2294300

FAX.NO.

:

04-2274533

EMAIL

:

msel@msel.com.my

WEB SITE

:

www.msee.com.my

CONTACT PERSON

:

POH KIM SENG ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

36999 2915

PRINCIPAL ACTIVITY

:

MANUFACTURING, ASSEMBLING & SALE OF ELEVATORS

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 7,714,286.00 DIVIDED INTO
ORDINARY SHARES 4,714,286 CASH AND 3,000,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 124,911,337 [2006]

NET WORTH

:

MYR 33,618,614 [2006]

 

 

 

STAFF STRENGTH

:

300 [2008]

BANKER (S)

:

BANK PEMBANGUNAN MALAYSIA BHD
HSBC BANK MALAYSIA BHD
OCBC BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MATURE

 

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) manufacturing, assembling & sale of elevators.

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

NIAGAWA JAYA SDN BHD

19-3, JALAN 3/146, BANDAR TASIK SELATAN, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

489153

2,315,000.00

TOSHIBA ELEVATOR & BUILDING SYSTEMS CORPORATION

5-27 KITASHINAGAWA, 6-CHOME, SHINAGAWA-KU, 141-0001, TOKYO, JAPAN.

 

2,314,286.00

ITN RESOURCES SDN BHD

19-3, JALAN 3/146 BANDAR TASIK SELATAN, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

495767

1,465,000.00

INTERPLEX HOLDINGS SDN BHD

19-3, JALAN 3/146, BANDAR TASIK SELATAN, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

323452

1,460,000.00

INTERPLEX SDN BHD

19-3, JALAN 3/146, BANDAR TASIK SELATAN, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

81026

160,000.00

 

 

 

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

 

 

 

7,714,286.00

 

 

 

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

 

+ Also Director

DIRECTORS

DIRECTOR 1

 

Name Of Subject

:

MR. POH LONG CHUAN @ POH KIM SENG

Address

:

17, BARRACK ROAD, GEORGETOWN, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

0740872

New IC No

:

390329-01-5475

Date of Birth

:

29/03/1939

Date of Appointment

:

25/07/1983

 

DIRECTOR 2

 

Name Of Subject

:

MR. FOH AH PONG @ POH YAN YEN

Address

:

636, JALAN 10, AMPANG UTAMA, 68000 AMPANG, SELANGOR, MALAYSIA.

IC / PP No

:

0058463

New IC No

:

470518-01-5685

Date of Birth

:

18/05/1947

Date of Appointment

:

27/09/2000

 

DIRECTOR 3

 

Name Of Subject

:

MR. TAN HAI KEK

Address

:

25, JALAN SS 22 A/6, DAMANSARA JAYA, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

4118274

New IC No

:

510225-08-5245

Date of Birth

:

25/02/1951

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

11/12/2000

 

DIRECTOR 4

 

Name Of Subject

:

DATO' ABDUL RANI BIN MOHD RAZALLI

Address

:

F2-1 PALMYRA BANGSAR, 9 JALAN MEDANG TANDUK, BUKIT BANDARAYA, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

3647521

New IC No

:

301021-08-5111

Date of Birth

:

21/10/1930

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

11/12/2000

Working Experience

:

GOVT ROYAL CUSTOM & EXCISE OFFICE FOR 32 YEARS. INVOLVED HIMSELF IN COMMERCIAL BUSINESS NAMELY IN WAREHOUSING, FREIGHT FORWARDING, TRANSPORTATION, SHIPPING AGENCY, MANUFACTURING, ACTING ASA ADVISOR & CONSULTANT.

Other Info

:

DATO

 

DIRECTOR 5

 

Name Of Subject

:

MS. LIM SHO GAIK

Address

:

6 LENGKOK KENARI 1, SUNGAI ARA, 11900 BAYAN LEPAS, PULAU PINANG, MALAYSIA.

IC / PP No

:

5272666

New IC No

:

571211-08-5884

Date of Birth

:

11/12/1957

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

01/10/2004

 

DIRECTOR 6

 

Name Of Subject

:

SHOJI NAKAI

Address

:

17A, JALAN BARRACK, 10450 PULAU PINANG, PULAU PINANG, MALAYSIA.

IC / PP No

:

TG5242306

Date of Birth

:

26/06/1964

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

25/06/2004

 

DIRECTOR 7

 

Name Of Subject

:

TAKANARI KAGAMI

Address

:

9-3-32 SEIJO, SETAGAYA KU, TOKYO TO, JAPAN.

IC / PP No

:

TZ0206499

Date of Birth

:

11/12/1951

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

05/09/2007



MANAGEMENT

 

 

 

1)

Name of Subject

:

POH KIM SENG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

LIM SHO GEIK

 

Position

:

FINANCE DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

JESSY FONG

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

 

AUDITOR

 

Auditor

:

MOORES ROWLAND

Auditor' Address

:

SOUTH BLOCK, WISMA SELANGOR DREDGING, 142-A JALAN AMPANG, 7TH FLOOR, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. FONG WAI FONG

 

IC / PP No

:

A1806883

 

New IC No

:

710222-07-5160

 

Address

:

27-B, JALAN CHOW THYE, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

Date of Appointment

:

01/09/2004

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. MALATHEY A/P VELLAISAMY

 

IC / PP No

:

5484627

 

New IC No

:

580906-10-5524

 

Address

:

I 15, TAMAN DATO' AHMAD RAZALI, BATU 4 1/2, JALAN AMPANG, 68000 AMPANG, SELANGOR, MALAYSIA.

 

Date of Appointment

:

25/08/2000

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

BANK PEMBANGUNAN MALAYSIA BHD

 

 

 

 

 

2)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

3)

Name

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

 

 

ENCUMBRANCE (S)


ENCUMBRANCE 1

Date of Creation

:

10/10/2001

Description Of Charge

:

FIXED & FLOATING

Amount Secured

:

O/D

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

 

 

 

 

Form 40 Dated

Registered and Numbered 8 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

26/10/2006

Description Of Charge

:

LEGAL CHARGE

Amount Secured

:

N/A

Description Of Property Affected

:

ALL THAT PIECE OF LAND & HEREDITAMENTS KNOWN AS PT 1449, HSD 23171, MUKIM 1, SEBERANG PERAI TENGAH, PULAU PINANG

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

36, BEACH STREET, 10300 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 20/11/2006

Registered and Numbered 11 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

20/09/2004

Description Of Charge

:

N/A

Amount Secured

:

RM3,400,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

BANK PEMBANGUNAN MALAYSIA BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 9 In The Register of Charges

 

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

 

Overseas

:

YES

 

Import Countries

:

JAPAN,TAIWAN,KOREA



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

Percentage

:

60%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

40%

Export Market

:

SINGAPORE , CHINA, THAILAND, HONG KONG, INDONESIA, JAPAN, UNITED ARAB EMIRATES, MIDDLE EAST

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES, LETTER OF CREDIT (LC),TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

END USERS,DISTRIBUTORS

 

OPERATIONS

 

Products manufactured

:

ELEVATORS AND PARTS, ESCALATORS, SMART BUILDING AND ELEVATORS SYSTEM

 

 

 

Brand Name

:

TOSHIBA

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2000

 

 

 

Competitor(s)

:

3M SEREMBAN (MALAYSIA) SDN BHD

CRYSTAL CLEAR TECHNOLOGY SDN BHD

MEGAN MEDIA HOLDINGS BHD

SAMSUNG CORNING (MALAYSIA) SDN BHD

TOTO WASHLET (MALAYSIA) SDN BHD

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

 

 

 

Ownership of premises

:

OWNED

Factory / Premises

:

2530, LORONG PERUSAHAAN 10, PRAI INDUSTRIAL ESTATE, 13600 PRAI, PULAU PINANG, MALAYSIA.

Tel No: 04-3900875

 

 

Total Number of Employees:

 

YEAR

2008

2007

2006

2005

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

300

250

227

227

 

 

 

 

 

 

Branch

:

NO

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing, assembling & sale of elevators.

The SC is a joint-venture elevator manufacturing company in Malaysia with Toshiba Elevator and Building Systems Corporation (TELC) of Japan.

The products are applicable to both the small and large buildings, providing an optimum & integrated management system to enable its occupants to enjoy the full benefit and convenience of modern building services.

The SC's factory is a high-tech plant complete with all mechanical and elevator system simulations, research and development (R&D) facilities including a 35-meter Test Tower.

The SC offers complete project package covering design, supply, install, test, commission and maintenance services of elevators and escalators for residential, commercial complex, hotel, office, college, hospital and other establishments.

The SC's latest generation of the AC Variable Voltage Variable Frequency Control (Inverter Drive) features an intelligent power module (power drive elements), an integration of processors for power converter control, drive-inverter control and speed control enables fully digital control for high speed, high reliability control and a smoother ride.

The SC assembles elevators for a few projects in Kuala Lumpur such as Kuala Lumpur City Centre (KLCC), Bank of Commerce and others.

According to the SC, it has completed most of the projects in KLCC as well as in Putra Jaya.

Currently the SC is engaged in the major projects for East Malaysia. The SC is producing elevators as well as escalators for shopping complex.

The SC has foreign workers from the overseas countries.

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

:

N/A

Current Telephone Number

:

04-2294300

Match

:

N/A

 

 

 

Address Provided by Client

:

WISMA PENANG GARDEN, 8TH FLOOR, 42 JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG.

Current Address

:

WISMA PENANG GARDEN, 8TH FLOOR, 42 JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the Senior staff from the Finance Division. He furnished some information on the SC. Later we contacted the Sales staff for more information on the SC.

FINANCIAL COMMENTS

 

 

Profitability:

Turnover

:

Erratic

[

2004 - 2006

]

Profit/(Loss) Before Tax

:

Increased

[

2004 - 2006

]

Return on Shareholder Funds

:

Unfavourable

[

5.69%

]

Return on Net Assets

:

Acceptable

[

10.54%

]


The fluctuating turnover reflects the fierce competition among the existing and new market players. The higher profit could be attributed to the increase in turnover. The unfavourable return on shareholders' funds and net assets could indicate that the SC's management was inefficient in utilising its assets to generate returns.


Working Capital Control:

Stock Ratio

:

Unfavourable

[

114 Days

]

Debtors Ratio

:

Acceptable

[

56 Days

]

Creditors Ratio

:

Favourable

[

59 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 management was quite efficient in handling its debtors. The SC's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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

[

0.44 Times

]

Current Ratio

:

Unfavourable

[

1.15 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

:

Unfavourable

[

2.57 Times

]

Gearing Ratio

:

Favourable

[

0.40 Times

]


The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

Overall Accessment:

Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

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

6.3

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

36999 : Other manufacturing n.e.c.

2915 : Manufacture of lifting and handling equipment

 

 

INDUSTRY :

MANUFACTURING

 

 

 


The manufacturing sector is expected to record a modest growth of 1.8% (2007: 3.1%) due to the expected weak performance of the export oriented-industries in an environment of projected moderation of global economic growth. In particular, the E&E industry is expected to weaken further in view of the more sluggish US growth. Weaknesses in the US household and corporate sectors could adversely affect the computers and parts segment of the electrical and electronics industry, given that a large share of these products is exported to the US. Nevertheless, the impact is expected to be softened by sustained growth in the semiconductor segment led by demand emanating from the Asia-Pacific region. 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, while the transport equipment industry is expected to turn around to register a positive growth in tandem with the pickup in sales of new motor vehicles during the year. 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.

 

 

OVERALL INDUSTRY OUTLOOK : Mature

 

 

 

 

 

 

COMMENTS

 


Established in 1983, the SC is principally engaged in the manufacturing, assembling and sale of elevators. With its long presence in the industry coupled with its vast experiences in the business, the SC should have built up a certain goodwill with its clients over times. With an adequate share capital of RM7.71 million , the SC has the potential of expanding its business in future.

 


In order to further grow the business, the SC has broaden its reach and penetrated into the global market. At present, about 40% of the SC's revenue is derived from overseas markets such as Singapore, China, Thailand and etc. The wider range of its market segments has benefited the SC in terms of higher earnings and minimised its business risk. Operating on a large scale, the SC has approximately 300 employees in its operation. The SC's management team is overseen by Managing Directior Poh Kim Seng and overall the management capability of the SC is average.


During the financial year 2006, turnover of the Group grew by 19.59% to RM124.91 million in 2006. The Group recorded a pre-tax profit of RM2.41million for the year. Return on shareholders' funds of the group is relatively low, indicating that the Group did not generate an acceptable amount of profits based on its existing shareholders' funds. Due to its weak liquidity position, the Group 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 Group. However the Group posted a low gearing ratio indicating that the Group faces low financial risk. With the comfortable networth standing at RM33.61 million, the Group is able to sustain its business performance in the near terms.


Information revealed that the SC sources its raw materials locally and also imports from overseas countries. Hence, it eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials.


Based on our historical financial data, the SC's overall payment habit is average.


The industry has reached its maturity stage and it is generally stable. It is much dependent on the SC's capacity in sustaining its performance in the market. As the SC is long presence in the market, it should have acquired competitive edge against other players in the same fields.


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





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED PROFIT AND LOSS ACCOUNT

 

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

M S ELEVATORS SDN BHD

For The Year Ended 31-December-2006



 

2006

2005

2004

 

MYR

MYR

MYR

 

 

 

 

 

 

 

 

TURNOVER

124,911,337

104,452,511

106,670,391

 

=========

=========

=========

PROFIT/(LOSS) FROM OPERATIONS

2,419,271

731,356

1,492,899

 

 

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAXATION

2,419,271

731,356

1,492,899

Taxation

<505,000>

<29,000>

<375,600>


PROFIT/(LOSS) AFTER TAXATION

-------------
1,914,271

-------------
702,356

-------------
1,117,299

 

 

 

 

 

 

 

 


PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

-------------
1,914,271

-------------
702,356

-------------
1,117,299

 

 

 

 


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

-------------
1,914,271

-------------
702,356

-------------
1,117,299

As previous reported

21,783,013

21,080,657

20,285,044

 

 

 

 


As restated

-------------
21,783,013

-------------
21,080,657

-------------
20,285,044

 

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

23,697,284

21,783,013

21,402,343

 

 

 

 

 

 

 

 

DIVIDENDS - Ordinary (paid & proposed)

<253,029>

-

<321,686>

 

 

 

 

 

 

 

 


RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD

-------------
23,444,255
==========

-------------
21,783,013
==========

-------------
21,080,657
==========

RETAINED BY: The Company

23,444,255

21,783,013

21,080,657

 

 

 

 

 

 

 

 

 

-------------
23,444,255
==========

-------------
21,783,013
==========

-------------
21,080,657
==========

 

 

 

 

 

 

 

 

 

 

 

 

Term loan

260,905

354,280

349,307

Bank overdraft

53,130

47,498

26,967

 

 

 

 

Hire purchase

4,217

2,280

2,196

 

 

 

 

 

 

 

 

Interest on trust receipts

1,222,266

966,845

642,622

 

 

 

 

 

--------------
1,540,518
===========

--------------
1,370,903
===========

--------------
1,021,092
===========

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEET

 

 

M S ELEVATORS SDN BHD

As At 31-December-2006



 

 

 

 

 

2006

2005

2004

 

MYR

MYR

MYR

 

 

 

 

 

 

 

 

ASSET EMPLOYED:

 

 

 

FIXED ASSETS

25,989,462

23,380,763

22,313,144

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

 

 

   Deffered assets

1,213,000

1,718,000

1,784,000

 

 

 

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

------------
1,213,000

------------
1,718,000

------------
1,784,000

 

 

 

 

INTANGIBLE ASSETS

 

 

 

   Deferred/Expenditure carried forward

2,107,895

2,000,005

2,478,089

 

 

 

 

TOTAL INTANGIBLE ASSETS

------------
2,107,895

------------
2,000,005

------------
2,478,089

TOTAL LONG TERM ASSETS

------------
29,310,357

------------
27,098,768

------------
26,575,233

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

   Stocks

39,143,457

35,039,696

35,315,098

 

 

 

 

   Trade debtors

19,327,168

11,249,885

18,396,827

   Other debtors, deposits & prepayments

3,385,505

1,222,348

1,736,054

 

 

 

 

   Cash & bank balances

1,692,519

2,388,757

1,711,370

 

 

 

 

   tax recoverable

157,462

157,462

157,462

 

 

 

 

TOTAL CURRENT ASSETS


------------
63,706,111


------------
50,058,148


------------
57,316,811

 

 

 

 

CURRENT LIABILITIES

 

 

 

   Trade creditors

20,251,791

14,210,675

20,395,648

   Other creditors & accruals

9,547,607

7,841,961

4,515,833

   Hire purchase & lease creditors

35,681

17,488

16,272

   Bank overdraft

732,464

932,575

2,164,518

   Short term borrowings/Term loans

1,519,672

1,473,730

1,296,000

   Other borrowings

8,122,496

6,529,898

15,056,374

 

 

 

 

   Bill & acceptances payable

14,992,000

12,859,000

7,866,000

 

 

 

 

   Dividends payable/proposed

253,029

674,229

674,229

 

 

 

 

TOTAL CURRENT LIABILITIES

------------
55,454,740

------------
44,539,556

------------
51,984,874

NET CURRENT ASSETS/(LIABILITIES)

------------
8,251,371

------------
5,518,592

------------
5,331,937

TOTAL NET ASSETS

------------
37,561,728
==========

------------
32,617,360
==========

------------
31,907,170
==========

 

 

 

 

FINANCED BY:

 

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

   Ordinary share capital

7,714,286

7,714,286

7,714,286

 

 

 

 

TOTAL SHARE CAPITAL


7,714,286
------------


7,714,286
------------


7,714,286
------------

RESERVES

 

 

 

 

 

 

 

   Capital reserve

2,013

2,013

2,013

   revaluation reserve

2,458,060

-

-

 

 

 

 

 

 

 

 

   Retain profit/(Accumulated loss) carried forward

23,444,255

21,783,013

21,080,657

 

 

 

 


TOTAL RESERVES

------------
25,904,328

------------
21,785,026

------------
21,082,670


SHAREHOLDERS' FUNDS/EQUITY


------------
33,618,614


------------
29,499,312


------------
28,796,956

 

 

 

 

 

 

 

 


LONG TERM & DEFERRED LIABILITIES & PROVISIONS

 

 

 

 

 

 

 

   Long term loans

2,947,989

3,111,980

3,049,658

 

 

 

 

 

 

 

 

   Hire purchase creditors

39,213

6,068

23,556

   Deferred taxation

955,912

-

37,000


TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS

------------
3,943,114

------------
3,118,048

------------
3,110,214

 

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

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

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

 

37,561,728

32,617,360

31,907,170

 

==========

==========

==========

 

 

 

 

 

 

CONSOLIDATED FINANCIAL RATIOS

 

M S ELEVATORS SDN BHD

As At 31-December-2006

 

 

 

 

 

 

2006

2005

2004

 

MYR

MYR

MYR

 

 

 

 

 

 

 

 

TYPES OF FUNDS

 

 

 

      Cash

1,692,519

2,388,757

1,711,370

      Net Liquid Funds

<559,617>

<17,548>

<1,749,148>

      Net Liquid Assets

<30,892,086>

<29,521,104>

<29,983,161>

      Net Current Assets/(Liabilities)

8,251,371

5,518,592

5,331,937

      Net Tangible Assets

35,453,833

30,617,355

29,429,081

      Net Monetary Assets

<34,835,200>

<32,639,152>

<33,093,375>

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

      Total Borrowings

13,397,515

12,071,739

21,606,378

      Total Liabilities

59,397,854

47,657,604

55,095,088

      Total Assets

93,016,468

77,156,916

83,892,044

      Net Assets

37,561,728

32,617,360

31,907,170

      Net Assets Backing

33,618,614

29,499,312

28,796,956

      Shareholders" Funds

33,618,614

29,499,312

28,796,956

      Total Share Capital

7,714,286

7,714,286

7,714,286

      Total Reserves

25,904,328

21,785,026

21,082,670

 

 

 

 

LIQUIDITY(Times)

 

 

 

      Cash Ratio

0.03

0.05

0.03

      Liquid Ratio

0.44

0.34

0.42

      Current Ratio

1.15

1.12

1.10

 

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

 

      Stock Ratio

114

122

121

      Debtors Ratio

56

39

63

      Creditors Ratio

59

50

70

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

      Gearing Ratio

0.40

0.41

0.75

      Liabilities Ratio

1.77

1.62

1.91

      Times Interest Earned Ratio

2.57

1.53

2.46

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

      Operating Profit Margin

1.94

0.70

1.40

      Net Profit Margin

1.53

0.67

1.05

      Return On Net Assets

10.54

6.45

7.88

      Return On Capital Employed

10.49

6.36

7.64

      Return On Shareholders' Funds/Equity

5.69

2.38

3.88

      Dividend Pay Out Ratio (Times)

0.13

0

0.29

 

 

 

 

NOTES TO ACCOUNTS

 

 

 

      Contingent Liabilities

0.00

0.00

0.00

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.41.96

UK Pound

1

Rs.83.78

Euro

1

Rs.65.82

 

 

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