MIRA INFORM REPORT

 

 

Report Date :

30.04.2008

 

 

IDENTIFICATION DETAILS

 

Name :

MFE FORMWORK TECHNOLOGY SDN BHD          

 

 

Formerly Known As :

MIVAN FAR EAST SDN BHD

 

 

Registered Office :

Lot 824, Komplek Sun, Jalan Bukit Bintang, 8th Floor, 55100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

05.09.1990

 

 

Com. Reg. No.:

203754-U

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturing, Operation, Selling Formwork System and Civil Engineering Construction

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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

                                          N/A - Not Applicable

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

203754-U

COMPANY NAME

:

MFE FORMWORK TECHNOLOGY SDN BHD

FORMER NAME

:

MIVAN FAR EAST SDN BHD (03/12/2007)
SPIRE FAR EAST SDN BHD (12/03/1992)

INCORPORATION DATE

:

05/09/1990

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LOT 824, KOMPLEK SUN, JALAN BUKIT BINTANG, 8TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

501, 4TH FLOOR, BLOK B, GLOMAC BUSINESS CENTRE, 10 JALAN SS6/1, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78032806

FAX.NO.

:

03-78033437

WEB SITE

:

www.mfeformwork.com

CONTACT PERSON

:

JAMES MARTIN LAUGHLIN ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

281 45209

PRINCIPAL ACTIVITY

:

MANUFACTURING, OPERATION, SELLING FORMWORK SYSTEM & CIVIL ENGINEERING CONSTRUCTION

AUTHORISED CAPITAL

:

MYR 11,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARES 1,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 115,648,142 [2006]

NET WORTH

:

MYR 26,165,670 [2006]

 

 

 

STAFF STRENGTH

:

35 [2008]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

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) manufacturing, operation, selling formwork system & civil engineering construction.

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 MIVAN FAR EAST (UK) LIMITED, a company incorporated in NORTHERN IRELAND.

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

 

Name

Address

IC/PP/Loc No

Shareholding

MIVAN FAR EAST (UK) LTD

NEWPARK, GREYSTONE ROAD, ANTRIM, NORTHERN IRELAND, BT412QN, UNITED STATES.

 

1,000,000.00

 

 

 

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

 

 

 

1,000,000.00

 

 

 

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

 

+ Also Director

DIRECTORS

DIRECTOR 1

 

Name Of Subject

:

MR. DAVID NICHOLAS WILSON

Address

:

5, JALAN KIARA 11, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

P740151050

 

 

 

Date of Birth

:

10/03/1958

Nationality

:

BRITISH

Date of Appointment

:

21/12/1999

 

DIRECTOR 2

 

Name Of Subject

:

MR. STEVEN MARK ENDERBY

Address

:

E-2, PUSHPANJALI, FARMS VILLAGE, BIJWASAN NEW DELHI 110061, INDIA.

IC / PP No

:

P761082192

 

 

 

Date of Birth

:

22/07/1962

Nationality

:

BRITISH

 

DIRECTOR 3

 

Name Of Subject

:

MR. RICHARD HENRY PHILLIPS

Address

:

37, JALAN TENGKU AMPUAN, TAMAN DUTA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

P706027180

 

 

 

Date of Birth

:

19/09/1964

Nationality

:

BRITISH

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. JAMES MARTIN LAUGHLIN

Address

:

10, JALAN SETIAKASIH 8, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

P761105029

 

 

 

Date of Birth

:

20/07/1953

Nationality

:

BRITISH

Date of Appointment

:

10/01/1992

Remark

:

OLD PP: 740015879



MANAGEMENT

 

 

 

1)

Name of Subject

:

JAMES MARTIN LAUGHLIN

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

DAVID NICHOLAS WILSON

 

Position

:

FINANCE DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

JAMES TEO

 

Position

:

OPERATIONS MANAGER

 

 

 

 

 

 

AUDITOR

 

Auditor

:

CHEW & ASSOCIATES

Auditor' Address

:

LOT 8.28, KOMPLEK SUN, JALAN BUKIT BINTANG, 8TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. TAN BENG HOCK

 

IC / PP No

:

4086144

 

New IC No

:

361028-07-5295

 

Address

:

162, JALAN SS 2/4, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

 

Date of Appointment

:

14/04/1994

 

 

 

 

 

2)

Company Secretary

:

MS. LAI SOOK HEAN

 

 

 

 

 

New IC No

:

710503-08-6122

 

Address

:

164, JELAPANG NEW VILLAGE, 30020 IPOH, PERAK, MALAYSIA.

 

Date of Appointment

:

19/06/2000

 

 

 

 

 

 

 

 

 

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

:

06/07/1999

Description Of Charge

:

MEMO OF DEPOSIT

Amount Secured

:

RM1,200,000.00

Description Of Property Affected

:

FIXED DEPOSIT A/C

Name & Address Of Chargee

:

THE PACIFIC BANK BHD

58, 60, 62 & 64 JLN SS 2/67, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

Form 40 Dated 19/07/1999

Registered and Numbered 6 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

07/11/2007

Description Of Charge

:

DEBENTURE

Amount Secured

:

RM5,000,000.00

Description Of Property Affected

:

1ST FIXED CHARGE AND 1ST FLOATING CHARGE OVER THE COMPANY FIXED ASSETS

Name & Address Of Chargee

:

ABN AMRO BANK N V

MAIN OFFICE TOWER, FINANCIAL PARK LABUAN, JALAN MERDEKA, LEVEL 9A, 87000 LABUAN, WILAYAH PERSEKUTUAN, MALAYSIA.

Form 40 Dated 01/11/2007

Registered and Numbered 7 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

:

ASIA



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

:

HONG KONG, MACAU, INDIA, MIDDLE EAST

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

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

Type of Customer

:

END USERS

 

 

 

 

 

 

 

 

 

 

 

 


The SC's projects are mostly undertakes in Malaysia. However according to Mr James, the SC also supplies its aluminium formwork for construction to overseas countries.

OPERATIONS

 

Products manufactured

:

FORMWORK SYSTEM FOR CONSTRUCTION

 

 

 

Services

:

CIVIL ENGINEERING

 

 

 

Competitor(s)

:

BNH MANUFACTURER SDN BHD

BURNMARK INDUSTRIES SDN BHD

GE-SUNNY DALE INDUSTRIES SDN BHD

KM PRECISION (M) SDN BHD

MALAYSIAN INDUSTRIAL PRODUCTS SDN BHD

 

 

 

Ownership of premises

:

OWNED

 

Total Number of Employees:

YEAR

2008

2007

 

GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

35

30

 

 

 

 

 

 

 

 

Branch

:

NO

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing, operation, selling formwork system & civil engineering construction.

The SC designs, fabricates and supplies aluminium formwork system for commercial as well as residential projects.

The SC has undertaken projects in commercial, industrial and educational sectors.

According to the SC, the products are used mostly in residential projects.

Currently the SC is undertaking construction of condominium at Mount Kiara. The project is expected to be completed by next year.

 

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

:

03-78032806

Match

:

NO

 

 

 

Address Provided by Client

:

501, 4TH FLOOR, BLOK B, GLOMAC BUSINESS CENTRE, 10 JALAN SS6/1, 47301 PETALING JAYA, SELANGOR.

Current Address

:

501, 4TH FLOOR, BLOK B, GLOMAC BUSINESS CENTRE, 10 JALAN SS6/1, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the Senior staff from the Finance Division. She provided some information on the SC. Later we contacted Mr James Teo, the SC's Operation Manager. He furnished some information on the SC.

FINANCIAL COMMENTS

 

 

Profitability:

Turnover

:

Increased

[

30.66%

]

Profit/(Loss) Before Tax

:

Increased

[

55.11%

]

Return on Shareholder Funds

:

Favourable

[

34.90%

]

Return on Net Assets

:

Favourable

[

44.83%

]


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

:

Favourable

[

19 Days

]

Debtors Ratio

:

Unfavourable

[

116 Days

]

Creditors Ratio

:

Favourable

[

57 Days

]


The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. 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

:

Favourable

[

1.43 Times

]

Current Ratio

:

Unfavourable

[

1.60 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

[

107.87 Times

]

Gearing Ratio

:

Favourable

[

0.03 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 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:

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 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 : STRONG

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

281 : Manufacture of Structural Metal Products, Tanks,Reservoirs and Steam Generators

45209 : Other civil engineering

 

 

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 1990, the SC is a private limited company, focusing on manufacturing, operation, selling formwork system and civil engineering construction. Having been in the industry for 18 years, the SC should have received strong support from its regular customers. With an issued and paid up capital of RM1 million and strong shareholders' backing, the SC has the ability to further expand its business in the future.


Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries such as Hong Kong, Macau, India and etc. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. Headed by its Managing Director, James Martin Laughlin, the SC currently has about 35 staff in its business operations.


During the financial year under review, its turnover continued on an upward momentum, reaching RM115.65 million in year 2006. Correspondingly, its pre-tax profit rose by 55.11% from RM7.68 million to RM11.91 million. This was achieved on the back of stronger performance of higher turnover. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. Good liquidity and low gearing level has placed the SC at a low financial risk. The SC's overall financial performance is strong.


The SC sources its raw materials locally and internationally. Being involved in import and export activities, the SC is subjected to the foreign currency exchange risk.


Based on the historical financial data, we concluded that the SC's payment record is good.


The potential growth for the industry is marginal and it is quite competitive. It very much depends on the SC's capability in sustaining its performance in the market. With the SC's favourable conditions, it should have acquired competitive edge from its competitors.


Based on the above condition, we recommend a fairly large amount of credit be granted to the SC promptly.



 

 

 

 

 

 

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

MFE FORMWORK TECHNOLOGY SDN BHD

For The Year Ended 31-December-2006



 

2006

2005

 

MYR

MYR

 

 

 

 

 

 

TURNOVER

115,648,142

88,512,674

 

==========

==========

PROFIT/(LOSS) FROM OPERATIONS

11,910,011

7,678,659

 

 

 

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

11,910,011

7,678,659

Taxation

<2,779,062>

<2,674,314>


PROFIT/(LOSS) AFTER TAXATION

------------
9,130,949

------------
5,004,345

 

 

 

 

 

 


PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

------------
9,130,949

------------
5,004,345

 

 

 


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

------------
9,130,949

------------
5,004,345

As previous reported

15,034,721

16,030,376

 

 

 


As restated

------------
15,034,721

------------
16,030,376

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

24,165,670

21,034,721

 

 

 

 

 

 

 

 

 

DIVIDENDS - Ordinary (paid & proposed)

-

<6,000,000>

 

 

 


RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD

------------
24,165,670
==========

------------
15,034,721
==========

RETAINED BY: The Company

24,165,670

15,034,721

 

 

 

 

------------
24,165,670
==========

------------
15,034,721
==========

INTEREST EXPENSE (as per notes to PL)

 

 

 

 

 

Other interest expenses

111,446

183,375

 

 

 

 

------------
111,446
==========

------------
183,375
==========

 

 

 

 

BALANCE SHEET

 

MFE FORMWORK TECHNOLOGY SDN BHD

As At 31-December-2006

 

 

 

 

 

2006

2005

 

MYR

MYR

 

 

 

ASSET EMPLOYED:

 

 

FIXED ASSETS

6,578,286

4,766,263

TOTAL LONG TERM ASSETS

------------
6,578,286

------------
4,766,263

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

      Stocks

5,917,435

4,734,204

 

 

 

      Trade debtors

36,712,610

26,285,634

      Other debtors, deposits & prepayments

2,375,899

2,106,733

      Short term deposits

1,057,978

1,031,884

 

 

 

 

 

 

 

 

 

      Cash & bank balances

3,410,220

278,028

 

 

 

      Amounts recoverable on contracts

4,410,256

8,014,508

 

 

 

TOTAL CURRENT ASSETS


------------
53,884,398


------------
42,450,991

 

 

 

CURRENT LIABILITIES

 

 

      Trade creditors

18,111,830

18,292,950

      Other creditors & accruals

13,899,652

10,115,103

      Hire purchase & lease creditors

92,160

111,807

      Bank overdraft

530,835

-

 

 

 

 

 

 

      Provision for taxation

1,011,090

804,976

 

 

 

      Payments on account

-

783,873

TOTAL CURRENT LIABILITIES

------------
33,645,567

------------
30,108,709

NET CURRENT ASSETS/(LIABILITIES)

------------
20,238,831

------------
12,342,282

TOTAL NET ASSETS

------------
26,817,117
==========

------------
17,108,545
==========

 

 

 

FINANCED BY:

 

 

 

 

 

SHARE CAPITAL

 

 

      Ordinary share capital

1,000,000

1,000,000

 

 

 

TOTAL SHARE CAPITAL

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

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

 

 

 

RESERVES

 

 

 

 

 

      Capital reserve

1,000,000

1,000,000

 

 

 

      Retain profit/(Accumulated loss) carried forward

24,165,670

15,034,721


TOTAL RESERVES

------------
25,165,670

------------
16,034,721


SHAREHOLDERS' FUNDS/EQUITY


------------
26,165,670


------------
17,034,721

 

 

 

 

 

 


LONG TERM & DEFERRED LIABILITIES & PROVISIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Hire purchase creditors

67,886

73,824

      Deferred taxation

583,561

-

 

 

 


TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS

------------
651,447

------------
73,824

 

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

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

 

26,817,117

17,108,545

 

 

==========

==========

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIOS

 

 

MFE FORMWORK TECHNOLOGY SDN BHD

As At 31-December-2006



 

2006

2005

 

MYR

MYR

TYPES OF FUNDS

 

 

      Cash

4,468,198

1,309,912

      Net Liquid Funds

3,937,363

1,309,912

      Net Liquid Assets

14,321,396

7,608,078

      Net Current Assets/(Liabilities)

20,238,831

12,342,282

      Net Tangible Assets

26,817,117

17,108,545

      Net Monetary Assets

13,669,949

7,534,254

 

 

 

BALANCE SHEET ITEMS

 

 

      Total Borrowings

690,881

185,631

      Total Liabilities

34,297,014

30,182,533

      Total Assets

60,462,684

47,217,254

      Net Assets

26,817,117

17,108,545

      Net Assets Backing

26,165,670

17,034,721

      Shareholders" Funds

26,165,670

17,034,721

      Total Share Capital

1,000,000

1,000,000

      Total Reserves

25,165,670

16,034,721

 

 

 

LIQUIDITY(Times)

 

 

      Cash Ratio

0.13

0.04

      Liquid Ratio

1.43

1.25

      Current Ratio

1.60

1.41

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

      Stock Ratio

19

20

      Debtors Ratio

116

108

      Creditors Ratio

57

75

 

 

 

SOLVENCY RATIOS (Times)

 

 

      Gearing Ratio

0.03

0.01

      Liabilities Ratio

1.31

1.77

      Times Interest Earned Ratio

107.87

42.87

 

 

 

PERFORMANCE RATIO (%)

 

 

      Operating Profit Margin

10.30

8.68

      Net Profit Margin

7.90

5.65

      Return On Net Assets

44.83

45.95

      Return On Capital Employed

43.81

45.66

      Return On Shareholders' Funds/Equity

34.90

29.38

      Dividend Pay Out Ratio (Times)

0

1.20

 

 

 

NOTES TO ACCOUNTS

 

 

      Contingent Liabilities

0.00

0.00

 

 

 

 

 

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