|
EXECUTIVE
SUMMARY
REGISTRATION NO. : 392746-V
COMPANY NAME : THE GSI ASIA GROUP SDN BHD
FORMER NAME : GSI-CUMBERLAND SDN BHD (08/06/2001)
INCORPORATION DATE : 03/07/1996
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED
LISTED STATUS : NO
REGISTERED
ADDRESS : SUITE 2-1, MENARA PENANG GARDEN, 42A JALAN
SULTAN AHMAD
SHAH, 2ND
FLOOR, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.
BUSINESS ADDRESS : PLOT 68, LORONG PERUSAHAAN MAJU 6, BUKIT
TENGAH INDUSTRIAL
ESTATE,
PHAVE 4, 13600 PERAI, PULAU PINANG, MALAYSIA.
TEL.NO. : 04-5083319
FAX.NO. : 04-5084876
WEB SITE : www.gsiasia.com.my
CONTACT
PERSON : GOH BAK YAN ( MANAGING DIRECTOR )
INDUSTRY CODE : 29210 2929
PRINCIPAL ACTIVITY : MANUFACTURER
OF POULTRY EQUIPMENT
AUTHORISED CAPITAL : MYR 500,000.00
DIVIDED INTO
ORDINARY
SHARE 500,000.00 OF MYR 1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR 250,000.00
DIVIDED INTO
ORDINARY SHARES 250,000 CASH OF MYR 1.00 EACH.
SALES : MYR 47,304,078 [2006]
NET WORTH : MYR 11,175,277 [2006]
STAFF STRENGTH : 90 [2008]
BANKER
(S) :
MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : STABLE
PAYMENT : GOOD
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
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) manufacturer of poultry
equipment.
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 THE GSI GROUP INC, a company
incorporated in UNITED STATES.
The ultimate holding company of the SC is GSI HOLDINGS CORP, a company
incorporated in UNITED STATES.
The major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
THE GSI GROUP INC
|
1004E, ILLINOIS ST ASSUMPTION, IL 62510, UNITED STATES.
|
|
250,000.00
|
|
|
|
|
---------------
|
|
|
|
|
250,000.00
|
|
|
|
|
============
|
+ Also Director
The SC interest in other companies
(Subsidiaries/Associates) are shown as follow :
|
Local No
|
Company
|
(%)
|
As At
|
|
652922
|
C.A.A. POULTRY EQUIPMENT SALES & SERVICES SDN BHD
|
100
|
31/12/2006
|
|
|
|
|
|
|
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. HONG MOOI HEAH
|
|
Address
|
:
|
1 PERSIARAN KIKIK 1, TAMAN INDERAWASIH, 13600 PERAI,
PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
6256811
|
|
New IC No
|
:
|
610723-07-5320
|
|
Date of Birth
|
:
|
23/07/1961
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
03/07/1996
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. GOH BAK YAN
|
|
Address
|
:
|
8-2-8, DESA UNIVERSITY, SUNGAI DUA, 11700 GELUGOR, PULAU
PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
A0428740
|
|
New IC No
|
:
|
660417-02-6139
|
|
Date of Birth
|
:
|
17/04/1966
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
03/07/1996
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
GOH BAK YAN
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
PRICEWATERHOUSECOOPERS
|
|
Auditor' Address
|
:
|
WISMA SIME DARBY, JALAN RAJA LAUT, 11TH FLOOR, 50350
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. LAM VOON KEAN
|
|
|
IC / PP No
|
:
|
4326724
|
|
|
New IC No
|
:
|
520920-07-5670
|
|
|
Address
|
:
|
9 RESERVOIR, 5TH AVENUE, 11500 AYER ITAM, PULAU PINANG,
MALAYSIA.
|
|
|
Date of Appointment
|
:
|
03/08/2005
|
|
|
|
|
|
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)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
26/04/2004
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
CONGRESS FINANCIAL CORPORATION (CENTRAL)
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 6 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
|
|
|
|
|
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
|
[
|
X
|
]
|
|
Average
|
[
|
|
]
|
|
|
Fair
|
[
|
|
]
|
|
Poor
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT)
|
|
Type of Customer
|
:
|
POULTRY FARMS
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
|
|
|
|
|
Brand Name
|
:
|
|
AGROMARAU, AP, CUMBERLAND
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
ASIA INDUSTRIES CORPORATION SDN BHD
|
|
ASSOCIATED TRACTORS SDN BHD
|
|
DAH YUNG STEEL (MALAYSIA) SDN BHD
|
|
NAFAS JENTERA SDN BHD
|
|
SEMENYIH OIL SDN BHD
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
|
FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)
|
|
SMI ASSOCIATION OF MALAYSIA
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2008
|
2007
|
2006
|
2005
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
COMPANY
|
90
|
86
|
83
|
84
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturer of poultry
equipment.
The SC's products portfolio includes as follows:
* Ultra Drop Feeder
* Evo-Flow Watering System
* 2 Stage Pan Feeder
* Chain Feeder Hopper
* Euromat Feeders and etc.
The SC also offers ventilation and watering equipment for dairy and horticulture
applications.
We were informed that the SC's manufactured goods utilizes only the highest
quality materials and components most of which are sourced from overseas.
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
|
:
|
04-5083319
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
PLOT 68, LORONG PERUSAHAAN MAJU 6, PRAI INDUSTRIAL
ESTATE, PHASE 4, 13600 PERAI, PULAU PINANG.
|
|
Current Address
|
:
|
PLOT 68, LORONG PERUSAHAAN MAJU 6, BUKIT TENGAH INDUSTRIAL
ESTATE, PHAVE 4, 13600 PERAI, PULAU PINANG, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with Ms Veena from the SC's Admin Department. She
revealed some information pertaining to the SC.
FINANCIAL
COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
29.13%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
76.02%
|
]
|
|
Return on Shareholder Funds
|
:
|
Favourable
|
[
|
35.50%
|
]
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
47.04%
|
]
|
The higher turnover could be attributed to the favourable market condition
and the SC could be gaining the market share progressively. 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
|
:
|
Acceptable
|
[
|
64 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
47 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
13 Days
|
]
|
The SC kept adequate stocks to meet its normal business transactions without
incurring excessive storage costs. The favourable debtors' days could be due
to the good credit control measures implemented by the SC. 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
|
:
|
Favourable
|
[
|
1.17 Times
|
]
|
|
Current Ratio
|
:
|
Favourable
|
[
|
2.17 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
|
[
|
454.98 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.01 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 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. 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's gearing level was high and its going concern will be in doubt if
there is no injection of additional shareholders' funds in times of economic
downturn and / or high interest rates.
Overall
financial condition of the SC : STABLE
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
|
|
29210 : Manufacture of agricultural and forestry
machinery
|
|
2929 : Manufacture of other special purpose machinery
n.e.c.
|
|
|
|
|
INDUSTRY :
|
MACHINERY
|
|
|
|
|
The early development of the machinery and equipment (M&E) industry
emerged to serve the agro-based and tin mining sectors. Over the years,
local manufacturers have also ventured into producing other M&E to meet
the need of other industries. There are four sectors in the M&E
industry and they are power generating M&E; metal working machinery;
machinery specialised for particular industries; and general industrial
machinery, equipment and parts.
|
|
Production of machinery and equipment industry including air conditioning,
refrigerating and ventilating machinery, contracted 13.7% during the first
six months of 2007 (January-June 2006: -1.7%) on account of lower sales of
5.9% (January-June 2006: 2.8%). Weakening sales during the period,
resulting from lower domestic and external demand, led to lower capacity
utilisation of 60.0%.
|
|
During the Industrial Master Plan 3 period the industry is expected to
expand further in tandem with the growth of major economic sectors, in
particular the manufacturing, agriculture and services sectors. With
increasing competition from lower cost producing countries, the industry is
expected to move up the value chain and strengthen its design, development
and innovation capabilities in the production of innovation capabilities in
the production of high technology M&E and specialized M&E for
specific industries.
|
|
To assist local small and medium enterprises enhance their technological
competitiveness in machinery and equipment manufacturing, the Government
has set up the Rasa Machinery and Equipment Technology Centre (Ramet)
managed by Sirim Bhd.
|
|
Malaysia being a net importer of M&E should be able to gained some
advantages from the de-pegged of US Dollar (USD). Even so, the over-dependency
of Malaysia on imported M&E indicates that the local M&E industry
needs to increase the number of projects approved for both the domestic and
the foreign investors.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Decline
|
COMMENTS
|
Established in 1996, the SC is principally engaged in the manufacturing of
poultry equipments. Over the years, the SC has a paid up capital standing
at RM250,000. With its long track record in the industry, the SC should
have gained certain market share and acquired a satisfactory reputation in
the market. Backed by its immediate and ultimate holding company, the SC is
expected to enjoy timely assistance when the needs arise.
|
|
Besides catering to the local market, the SC also exports to other
countries in Asia. As it concentrates in both local and overseas markets,
we believe that the SC has the ability to lower its business risk to meet
any uncertainties in the local economy. Having a stable customer base
through its years of establishment, the SC's business risk is well
diversified. Currently, the SC has a staff strength of 90 employees in the
operations. Overall, the SC's management capability is regarded as average.
|
|
In 2006, the Group's turnover increased by 29.13% to RM47.3 million
followed by increased in pre-tax profit from RM3.03 million to RM5.33
million. The SC has generated a favourable return based on its
shareholders' funds. With its current liabilities well covered by its
current assets, the SC is able to repay its short term obligations. As a
lowly geared company, the SC faces low financial risk. The overall
financial performance of the SC is stable. A networth of RM11.18 million
enables the SC to maintain its business in the near future.
|
|
Investigation revealed that the SC's supplies are sourced from both local
and overseas suppliers. Hence, the SC is subjected to currency fluctuation
risk and high operating costs.
|
|
Based on its financial historical data, we concluded that the SC's payment
is good. This implies a good credit control and the SC could be taking
advantage of the cash discounts and maintain a good reputation with its
creditors.
|
|
The industry demonstrates downward trend. The immediate outlook for the
industry is unfavourable. With this unconducive industry environment, it
might pressure down the SC's performance. Nonetheless, its long presence in
the market has given the SC an edge to compete in the market.
|
|
In view of the above, we recommend credit be granted to the SC promptly.
|
|
CONSOLIDATED
PROFIT AND LOSS ACCOUNT
|
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
THE GSI ASIA
GROUP SDN BHD
|
|
For The Year
Ended 31-December-2006
|
|
|
|
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
47,304,078
|
36,632,091
|
|
|
=========
|
=========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
5,331,059
|
3,028,751
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
5,331,059
|
3,028,751
|
|
Taxation
|
<1,364,143>
|
<367,255>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
-------------
3,966,916
|
-------------
2,661,496
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
-------------
3,966,916
|
-------------
2,661,496
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
-------------
3,966,916
|
-------------
2,661,496
|
|
As previous reported
|
6,958,361
|
4,296,865
|
|
|
|
|
|
As restated
|
-------------
6,958,361
|
-------------
4,296,865
|
|
|
-------------
|
-------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
10,925,277
|
6,958,361
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
-------------
10,925,277
==========
|
-------------
6,958,361
==========
|
|
RETAINED BY: The Company
|
10,925,277
|
6,958,361
|
|
|
|
|
|
|
|
|
|
|
-------------
10,925,277
==========
|
-------------
6,958,361
==========
|
|
|
|
|
|
Other interest expenses
|
11,743
|
6,446
|
|
|
|
|
|
|
--------------
11,743
===========
|
--------------
6,446
===========
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEET
|
|
THE GSI ASIA
GROUP SDN BHD
|
|
As At
31-December-2006
|
|
|
|
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
1,587,307
|
1,949,008
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
|
Deffered assets
|
-
|
171,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
-
|
------------
171,024
|
|
TOTAL LONG TERM ASSETS
|
------------
1,587,307
|
------------
2,120,032
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
8,311,684
|
9,441,553
|
|
|
|
|
|
Trade debtors
|
6,044,368
|
5,637,793
|
|
Other debtors, deposits &
prepayments
|
751,178
|
477,108
|
|
Short term deposits
|
900,000
|
362,500
|
|
Amount due from holding company
|
38,725
|
24,962
|
|
|
|
|
|
Amount due from related companies
|
3,849
|
5,193
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
2,078,628
|
702,815
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
18,128,432
|
------------
16,651,924
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Trade creditors
|
1,677,132
|
2,167,045
|
|
Other creditors & accruals
|
1,698,636
|
1,198,741
|
|
Hire purchase & lease creditors
|
38,360
|
137,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits from customers
|
1,538,773
|
744,696
|
|
|
|
|
|
Amounts owing to holding companies
|
2,831,249
|
6,580,649
|
|
|
|
|
|
Amounts owing to related companies
|
66,961
|
169,717
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
507,399
|
467,597
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
8,358,510
|
------------
11,466,197
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
9,769,922
|
------------
5,185,727
|
|
TOTAL NET ASSETS
|
------------
11,357,229
==========
|
------------
7,305,759
==========
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
Ordinary share capital
|
250,000
|
250,000
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
250,000
------------
|
250,000
------------
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward
|
10,925,277
|
6,958,361
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
10,925,277
|
------------
6,958,361
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
11,175,277
|
------------
7,208,361
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
Hire purchase creditors
|
59,038
|
97,398
|
|
Deferred taxation
|
122,914
|
-
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
181,952
|
------------
97,398
|
|
|
------------
|
------------
|
|
|
11,357,229
|
7,305,759
|
|
|
==========
|
==========
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
FINANCIAL RATIOS
|
|
THE GSI ASIA
GROUP SDN BHD
|
|
As At
31-December-2006
|
|
|
|
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
Cash
|
2,978,628
|
1,065,315
|
|
Net Liquid Funds
|
2,978,628
|
1,065,315
|
|
Net Liquid Assets
|
1,458,238
|
<4,255,826>
|
|
Net Current
Assets/(Liabilities)
|
9,769,922
|
5,185,727
|
|
Net Tangible Assets
|
11,357,229
|
7,305,759
|
|
Net Monetary Assets
|
1,276,286
|
<4,353,224>
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
Total Borrowings
|
97,398
|
235,150
|
|
Total Liabilities
|
8,540,462
|
11,563,595
|
|
Total Assets
|
19,715,739
|
18,771,956
|
|
Net Assets
|
11,357,229
|
7,305,759
|
|
Net Assets Backing
|
11,175,277
|
7,208,361
|
|
Shareholders"
Funds
|
11,175,277
|
7,208,361
|
|
Total Share Capital
|
250,000
|
250,000
|
|
Total Reserves
|
10,925,277
|
6,958,361
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
Cash Ratio
|
0.36
|
0.09
|
|
Liquid Ratio
|
1.17
|
0.63
|
|
Current Ratio
|
2.17
|
1.45
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
Stock Ratio
|
64
|
94
|
|
Debtors Ratio
|
47
|
56
|
|
Creditors Ratio
|
13
|
22
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
Gearing Ratio
|
0.01
|
0.03
|
|
Liabilities Ratio
|
0.76
|
1.60
|
|
Times Interest
Earned Ratio
|
454.98
|
470.87
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
Operating Profit
Margin
|
11.27
|
8.27
|
|
Net Profit Margin
|
8.39
|
7.27
|
|
Return On Net Assets
|
47.04
|
41.55
|
|
Return On Capital
Employed
|
46.88
|
40.78
|
|
Return On
Shareholders' Funds/Equity
|
35.50
|
36.92
|
|
Dividend Pay Out
Ratio (Times)
|
0
|
0
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
Contingent
Liabilities
|
0
|
0
|
|
|
|
|
|
