|
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 6.1A, MENARA PELANGI, 2 JALAN 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
|
|
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]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
N/A
|
|
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 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.
|
|
|
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
|
|
Nationality
|
:
|
SPANIARD
|
|
Date of Appointment
|
:
|
03/09/2004
|
DIRECTOR 4
|
Name Of Subject
|
:
|
FERRANDIS TORRES MIGUEL
|
|
Address
|
:
|
CALLE PABLE VIDAL 7, 28043 MADRIS, SPAIN.
|
|
IC / PP No
|
:
|
51389145S
|
|
Nationality
|
:
|
SPANIARD
|
|
Date of Appointment
|
:
|
03/09/2004
|
DIRECTOR 5
|
Name Of Subject
|
:
|
RAMOS FLORES BENJAMIN
|
|
Address
|
:
|
132, TANJUNG RHU ROA, PEBBLE BAY, 14-10, 436919,
SINGAPORE.
|
|
IC / PP No
|
:
|
ESPX553608
|
|
Nationality
|
:
|
SPANIARD
|
|
Date of Appointment
|
:
|
03/09/2004
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
RAMOS FLORES BENJAMIN
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
KPMG
|
|
Auditor' Address
|
:
|
WISMA KPMG, JALAN DUNGUN, DAMANSARA HEIGHTS, 4TH FLOOR,
50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. SUJATA MENON D/O 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 furnish us with the suppliers' names. Without the financial
accounts, we are not able to comment on the SC's payment habit.
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
TELEGRAPHIC TRANSFER (TT),CHEQUES
|
OPERATIONS
|
Goods Traded
|
:
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
EDARAN MAJU-MUDA
SDN BHD
|
|
METROD (OFHC) SDN BHD
|
|
S.P. TECHVANCE CORPORATION SDN BHD
|
|
SAMSUNG (MALAYSIA) SDN BHD
|
|
STAR SHINE MARKETING SDN BHD
|
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
5
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of stainless
steel products.
The SC's products range includes billets, hot rolled coils, hot rolled
sheets, flat bars, cold rolled coils, cold rolled sheets and others.
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.
Besides that the SC has a warehouse located at the same premises to keep
stocks and materials.
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
|
:
|
07-8625252
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
SUITE 5-3A LEVEL 5, MENARA PCLANGI NO. 2 JALAN KUNING
TAMAN PELANGI 80400 JOHAR BAHRU
|
|
Current Address
|
:
|
PTD 175189, BATU 11 1/2 , JALAN JOHOR BAHRU - KOTA TINGGI,
81800 ULU TIRAM, JOHOR, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with Ms Vivan from the SC's Admin Department. She revealed
some information pertaining to the SC.
We have verified and confirmed that the address provided is belongs to the
SC's Registered Office.
FINANCIAL
COMMENTS
The
financial summary of the SC in Year 2006 showed that it was financially FAIR.
Return on shareholders' funds of the SC was high indicating that the SC was
efficient in utilising its shareholders' funds to generate favourable
returns. Besides this, it also has an adequate liquidity position with its
current liabilities well covered by its current assets. With its net current
assets, the SC should be able to repay its short term obligations. Although
the SC's liability ratio is high, it is mainly due to high current
liabilities rather than long term debt. However, the high current liabilities
are well covered by its large current assets, indicating that the SC does not
face any shortage in short term working capital
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
|
6.0
|
6.5
|
|
Domestic Demand ( % )
|
7.5
|
7.3
|
7.0
|
9.0
|
6.8
|
|
Private Expenditure ( % )
|
13.1
|
9.5
|
7.0
|
8.6
|
8.2
|
|
Consumption ( % )
|
10.5
|
9.2
|
7.1
|
9.0
|
7.9
|
|
Investment ( % )
|
25.8
|
8.5
|
7.0
|
7.1
|
9.5
|
|
Public Expenditure ( % )
|
<2.1>
|
3.6
|
6.8
|
10.1
|
3.2
|
|
Consumption ( % )
|
6.0
|
5.4
|
5.0
|
10.8
|
5.5
|
|
Investment ( % )
|
<8.7>
|
1.9
|
8.9
|
9.3
|
0.5
|
|
|
|
|
|
|
|
|
Balance of Trade ( 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
|
4.0
|
|
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
|
3.5
|
|
Palm Oil
|
3.9
|
7.1
|
5.8
|
<0.6>
|
-
|
|
Rubber
|
16.5
|
<2.9>
|
12.6
|
1.0
|
-
|
|
Forestry & Logging
|
4.3
|
2.0
|
<0.4>
|
2.8
|
-
|
|
Fishing
|
5.5
|
<0.4>
|
9.3
|
5.2
|
-
|
|
Other Agriculture
|
2.4
|
3.2
|
5.3
|
7.0
|
-
|
|
Industry Non-Performing Loans ( 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
|
4.0
|
|
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
|
3.8
|
|
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
|
6.3
|
|
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
|
8.6
|
|
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
|
Incorporated in 2004, as a private limited company, the SC is principally engaged
in the trading of stainless steel products. Over the years, the SC has
growing steadily in the market with a paid up capital of RM24 million. This
means that the SC has stabilised itself in the market. Although the SC has
been in the industry for only 4 years, it has built up its reputation and
image in the market. Backed by Acerinox SA, the SC has the abilities to
compete with other players in the same industry.
|
|
Our investigation revealed that the SC serves both the local and overseas
market. This global approach should have given the SC opportunities to
expand its business when the needs arise. Besides that, the SC is less
vulnerable to the changes in the local economy. As a whole, the SC's
business risk is mediocre. The SC is recognised as a small entity with a
work force of 5 employees in the operations. Its management structure is
well organised and its management capability is regarded average.
|
|
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. As its current liabilities are well covered
by its current assets, the SC has the abilities to repay its short term
obligations. A high liabilities ratio has placed the SC at high financial
risk. 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 our database, the SC is clear of litigation.
|
|
The industry has reached its maturity stage and only enjoying a marginal
growth. It is saturated and very competitive. Thus the SC is required to be
competitive in order to sustain its market shares in the market.
|
|
In view of the above, we recommend credit be granted to the SC normally.
|
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
|
|
PROFIT AND LOSS ACCOUNT
|
|
ACERINOX MALAYSIA SDN BHD
|
|
31-December-2006
|
|
Consolidated Accounts
|
:
|
NO
|
|
UnQualified Reports
|
:
|
YES
|
|
|
|
|
RM
|
|
Turnover
|
824,526,397.00
|
|
Operating Revenue
|
0.00
|
|
|
---------------------
|
|
Profit/(Loss) Before Tax
|
55,066,602.00
|
|
|
---------------------
|
|
|
|
Profit/(Loss) After Tax
|
54,721,322.00
|
|
Extraordinary Item
|
0.00
|
|
Minority Interest
|
0.00
|
|
|
---------------------
|
|
Profit/(Loss) Attributable to Shareholders
|
54,721,322.00
|
|
|
---------------------
|
|
|
|
Prior Period Adjustment
|
0.00
|
|
Net Dividend
|
0.00
|
|
Transferred To/From Reserved
|
0.00
|
|
Others
|
0.00
|
|
|
---------------------
|
|
Unappropriated Profit/(Loss) Brought Forward
|
10,649,294.00
|
|
|
---------------------
|
|
Unappropriated Profit/(Loss) Carried Forward
|
65,370,616.00
|
|
|
================
|
|
|
|
BALANCE SHEET
|
|
ACERINOX MALAYSIA SDN BHD
|
|
31-December-2006
|
|
Consolidated Accounts
|
:
|
NO
|
|
UnQualified Reports
|
:
|
YES
|
|
|
|
|
RM
|
|
Fixed Assets
|
5,930.00
|
|
Total Investment
|
0.00
|
|
Amount Owing By
|
0.00
|
|
Current Assets
|
449,204,542.00
|
|
Intangible Assets
|
0.00
|
|
Other Assets
|
81,000.00
|
|
|
---------------------
|
|
Total Assets
|
449,291,472.00
|
|
|
================
|
|
|
|
|
Working Capital
|
89,283,686.00
|
|
|
|
|
Issued Capital
|
24,000,000.00
|
|
Paid Up Capital
|
24,000,000.00
|
|
Share Premium & Reserved
|
0.00
|
|
Unappropriated Profit/(Loss)
|
65,370,616.00
|
|
|
---------------------
|
|
Shareholder's Fund/Equity
|
89,370,616.00
|
|
|
---------------------
|
|
|
|
Current Liabilities
|
359,920,856.00
|
|
Amount Owing To
|
0.00
|
|
Long-term and Deferred Liabilities
|
0.00
|
|
Share Application Account
|
0.00
|
|
Minority Interest
|
0.00
|
|
|
---------------------
|
|
Total Equity Liability
|
449,291,472.00
|
|
|
================
|
|
|
|
|
Contingent Liabilities
|
0.00
|
|
