|
* Adopted abbreviations : SC
- Subject Company (the company enquired by you)
N/A -
Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
594663-U
|
|
COMPANY NAME
|
:
|
PROACTIVE CONDITIONING & MONITORING SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
03/10/2002
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
11B5 JALAN PJU 1/42, DATARAN PRIMA, 47301 PETALING JAYA, SELANGOR,
MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
3-22, THE PLACE, JALAN PJU 8/5G DAMANSARA PERDANA,, 47820 PETALING
JAYA, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-77251558
|
|
FAX.NO.
|
:
|
03-77276225
|
|
WEB SITE
|
:
|
http://www.proactivemaintenance.com.my
|
|
CONTACT PERSON
|
:
|
LIM FARN SEW ( MANAGING DIRECTOR )
|
|
INDUSTRY CODE
|
:
|
93099
|
|
PRINCIPAL ACTIVITY
|
:
|
CONDITIONING AND MONITORING OF INDUSTRIAL FILTRATION SYSTEM
|
|
AUTHORISED CAPITAL
|
:
|
MYR 100,000.00
DIVIDED INTO
ORDINARY SHARE 100,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 100,000.00
DIVIDED INTO
ORDINARY SHARES 100,000 CASH OF MYR 1.00 EACH.
|
|
SALES
|
:
|
MYR 2,188,013 [2009]
|
|
NET WORTH
|
:
|
MYR 336,971 [2009]
|
|
Bankers
|
|
OCBC BANK (MALAYSIA) BHD
|
|
STAFF STRENGTH
|
:
|
8 [2011]
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
|
PROPOSED
CREDIT LIMIT
|
:
|
USD2,936.00
|
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) conditioning and
monitoring of industrial filtration system.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
LIM FARN SEW +
|
B12-6 SRI DAMANSARA TOWERS, JALAN SD 10/1E, BANDAR SRI DAMANSARA, 52200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
590831-10-5931
5744915
|
98,000.00
|
|
LIM MENG KIN +
|
7 JALAN SAGA SD 8/2B, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
660531-10-5690
A0473737
|
2,000.00
|
|
|
|
|
---------------
|
|
|
|
|
100,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
LIM MENG KIN
|
|
Address
|
:
|
7 JALAN SAGA SD 8/2B, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
A0473737
|
|
New IC No
|
:
|
660531-10-5690
|
|
Date of Birth
|
:
|
31/05/1966
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 2
|
Name Of Subject
|
:
|
LIM FARN SEW
|
|
Address
|
:
|
B12-6 SRI DAMANSARA TOWERS, JALAN SD 10/1E, BANDAR SRI DAMANSARA,
52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
5744915
|
|
New IC No
|
:
|
590831-10-5931
|
|
Date of Birth
|
:
|
31/08/1959
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
LIM FARN SEW
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
JUNAIDAH
|
|
|
Position
|
:
|
FINANCE MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
W F YONG & CO
|
|
Auditor' Address
|
:
|
11A-5, BLOCK F1, JALAN PJU 1/42, DATARAN PRIMA, 47301 PETALING JAYA,
SELANGOR, MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. BONG KWEE FAH
|
|
|
IC / PP No
|
:
|
A0726746
|
|
|
New IC No
|
:
|
670617-05-5080
|
|
|
Address
|
:
|
201, BLOCK H, JALAN SS 6/3, KELANA JAYA, 47301 PETALING JAYA,
SELANGOR, MALAYSIA.
|
BANKING
Banking relations are maintained principally with :
|
1)
|
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
|
:
|
05/05/2008
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM170,732.03
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
OCBC BANK (MALAYSIA) BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 3 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
11/08/2008
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM485,451.08
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
OCBC BANK (MALAYSIA) BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 4 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.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER CHECK AGAINST SC
* We have checked through the SC in our defaulters' database which comprised
of debtors that have been blacklisted by our customers and debtors that have
been placed or assigned to us for collection since 1990. Information was
provided by third party where the debt amount can be disputed. Please check
with creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT RECORD
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
|
|
|
|
|
|
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 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
|
]
|
|
Average 61-90 Days
|
[
|
X
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
70%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
30%
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,LETTER OF CREDIT (LC)
|
OPERATIONS
|
Goods Traded
|
:
|
FILTRATION SYSTEM
|
|
|
|
|
|
Services
|
:
|
RELATED SERVICE
|
|
|
|
|
|
Competitor(s)
|
:
|
ALLIED MARINE
& EQUIPMENT SDN BHD
DAVEX HOLDINGS BHD
DINERS CLUB (MALAYSIA) SDN BHD
PIONEER HERITAGE SDN BHD
YTL TECHNOLOGIES SDN BHD
|
|
|
|
|
|
Ownership of
premises
|
:
|
OWNED
|
|
Total Number of Employees:
|
|
YEAR
|
2011
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
8
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) conditioning and
monitoring of industrial filtration system.
The SC is specialized in filtration, separation, dehydration and purification
in hydraulic & lubrication industry.
The SC serve industries like Power Plants, Petrochemicals, Refineries, Pulp
& Paper, Cement Plants, Marine Industry, Plastic Injection/Moulding,
Engineering Companies, Trading House, etc in applications like turbine
lubrication, rotary equipment, seal oil systems, gas & diesel engines,
paper machines, gearboxes, compressors, etc.
The SC markets a wide range of filters, strainers, engineered products and
filters cross referenced to major brands in liquid process, air intake,
compress air, gas, and lubrication & hydraulic that meets or exceeds OEM
requirements.
A wide range of filter element designs are offered including conventional or
high efficiency pleated models, wide air flow capacities, wide removal
ratings (nominal and absolute) with wide range of filter media that suit your
application needs in filtration, separation, dehydration and purification.
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
|
:
|
0377251558
|
|
Current Telephone Number
|
:
|
03-77251558
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
3-22, THE PLACE, JALAN PLU 8/5G DAMANSARA PERDANA, 47820 PETALING
|
|
Current Address
|
:
|
3-22, THE PLACE, JALAN PJU 8/5G DAMANSARA PERDANA,, 47820 PETALING
JAYA, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the SC staff Ms Wati and she provided some information
regarding to the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
158.79%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
<168.11%>
|
]
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
18.25%
|
]
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
33.08%
|
]
|
The increase in turnover could be due to the SC adopting an aggressive marketing
strategy. The management had succeeded in turning the SC into a profit making
company. The profit could be due to better control of its operating costs and
efficiency in utilising its resources. The SC's management had generated
acceptable return for its shareholders using its assets.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
17 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
76 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
32 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in stocks. The high debtors' ratio could indicate
that the SC was weak in its credit control. However, the SC could also giving
longer credit periods to its customers in order to boost its sales or to
capture / retain its market share. 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
|
[
|
0.69 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.79 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
|
[
|
2.09 Times
|
]
|
|
Gearing Ratio
|
:
|
Unfavourable
|
[
|
2.12 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 highly
geared, thus it had a high financial risk. The SC was dependent on loans to
finance its business needs. In times of economic downturn and / or high
interest rate, the SC will become less profitable and competitive than other
firms in the same industry, which are lowly geared. This is because the SC
has to service the interest and to repay the loan, which will erode part of
its profits. The profits will fluctuate depending on the SC's turnover and
the interest it needs to pay.
Overall
Assessment:
The higher turnover
had helped to reduce the SC's losses. 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'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 : LIMITED
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
27.17
|
27.73
|
28.31
|
28.88
|
29.13
|
|
Gross Domestic Products ( % )
|
6.3
|
4.6
|
<0.5>
|
6.9
|
5.8
|
|
Domestic Demand ( % )
|
9.0
|
6.9
|
2.9
|
4.6
|
4.8
|
|
Private Expenditure ( % )
|
8.6
|
7.1
|
<2.7>
|
8.1
|
7.0
|
|
Consumption ( % )
|
9.0
|
8.4
|
0.7
|
6.7
|
6.3
|
|
Investment ( % )
|
7.1
|
1.5
|
<17.2>
|
15.2
|
10.2
|
|
Public Expenditure ( % )
|
10.1
|
6.5
|
5.2
|
3.8
|
2.8
|
|
Consumption ( % )
|
10.8
|
11.6
|
3.1
|
0.2
|
4.6
|
|
Investment ( % )
|
9.3
|
0.7
|
8.0
|
8.3
|
0.6
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
100,340
|
129,563
|
89,650
|
118,356
|
116,058
|
|
Government Finance ( MYR Million )
|
<19,948>
|
<34,462>
|
<28,450>
|
<40,482>
|
-
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.2>
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
|
Inflation ( % Change in Composite CPI)
|
2.0
|
<3.3>
|
<5.2>
|
5.1
|
-
|
|
Unemployment Rate
|
3.2
|
3.7
|
4.5
|
3.9
|
-
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
336
|
388
|
331
|
394
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
3.04
|
1.91
|
2.87
|
2.20
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
13.30
|
13.24
|
11.08
|
15.30
|
-
|
|
Average Base Lending Rate ( % )
|
6.72
|
6.72
|
5.53
|
5.70
|
-
|
|
Business Loans Disbursed( % )
|
9.1
|
11.6
|
10.5
|
14.7
|
-
|
|
Foreign Investment ( MYR Million )
|
33,426.0
|
23,261.4
|
22,156.8
|
22,517.9
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
43,337
|
41,599
|
41,578
|
-
|
-
|
|
Registration of New Companies ( % )
|
13.2
|
<4.0>
|
<0.1>
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
22,629
|
27,992
|
39,075
|
-
|
-
|
|
Liquidation of Companies ( % )
|
161.5
|
23.7
|
39.6
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
227,410
|
269,866
|
312,581
|
-
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
20,431
|
18,885
|
19,345
|
-
|
-
|
|
Business Dissolved ( % )
|
<61.4>
|
<7.6>
|
2.4
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
442.9
|
497.5
|
319.4
|
369.7
|
-
|
|
Cellular Phone Subscribers ( Million )
|
23.3
|
25.1
|
30.1
|
32.8
|
-
|
|
Tourist Arrival ( Million Persons )
|
20.9
|
21.5
|
23.6
|
24.0
|
25.0
|
|
Hotel Occupancy Rate ( % )
|
70
|
68
|
58
|
63
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
20.1
|
17.1
|
12.8
|
15.1
|
-
|
|
Bad Cheque Offenders (No.)
|
30,004
|
34,834
|
-
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
13,238
|
13,907
|
-
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<2.6>
|
5.1
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.1
|
3.6
|
0.4
|
3.4
|
4.5
|
|
Palm Oil
|
<0.6>
|
7.0
|
<1.1>
|
1.3
|
-
|
|
Rubber
|
1.0
|
<1.1>
|
<19.8>
|
9.9
|
-
|
|
Forestry & Logging
|
2.8
|
<1.5>
|
<5.9>
|
<1.3>
|
-
|
|
Fishing
|
5.2
|
4.0
|
5.5
|
4.1
|
-
|
|
Other Agriculture
|
7.0
|
5.9
|
9.0
|
6.6
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
487.3
|
393.0
|
413.7
|
508.4
|
-
|
|
% of Industry Non-Performing Loans
|
1.1
|
<2.0>
|
1.3
|
2.1
|
-
|
|
|
|
|
|
|
|
|
Mining
|
3.3
|
<0.8>
|
<3.8>
|
1.0
|
2.9
|
|
Oil & Gas
|
2.2
|
12.7
|
2.1
|
4.9
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
42.2
|
36.0
|
44.2
|
49.7
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
3.1
|
1.3
|
<9.4>
|
10.8
|
6.7
|
|
Exported-oriented Industries
|
<1.9>
|
2.7
|
<19.0>
|
12.1
|
-
|
|
Electrical & Electronics
|
3.0
|
2.4
|
<30.3>
|
27.4
|
-
|
|
Rubber Products
|
8.0
|
4.2
|
<10.1>
|
25.3
|
-
|
|
Wood Products
|
3.3
|
<6.0>
|
<24.1>
|
19.7
|
-
|
|
Textiles & Apparel
|
<10.1>
|
1.9
|
<19.5>
|
<1.3>
|
-
|
|
Domestic-oriented Industries
|
5.3
|
9.9
|
<9.8>
|
16.3
|
-
|
|
Food, Beverages & Tobacco
|
5.6
|
9.5
|
0.2
|
3.0
|
-
|
|
Chemical & Chemical Products
|
9.2
|
1.4
|
<7.7>
|
20.4
|
-
|
|
Plastic Products
|
<3.6>
|
6.5
|
<9.1>
|
2.4
|
-
|
|
Iron & Steel
|
17.5
|
16.8
|
<32.7>
|
30.0
|
-
|
|
Fabricated Metal Products
|
26.2
|
14.7
|
<2.5>
|
14.9
|
-
|
|
Non-metallic Mineral
|
6.6
|
8.3
|
<15.5>
|
20.2
|
-
|
|
Transport Equipment
|
<19.0>
|
27.1
|
<13.5>
|
36.5
|
-
|
|
Paper & Paper Products
|
14.9
|
8.6
|
<5.0>
|
20.5
|
-
|
|
Crude Oil Refineries
|
8.6
|
7.8
|
0.2
|
<11.4>
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,366.2
|
5,729.4
|
6,007.3
|
6,217.5
|
-
|
|
% of Industry Non-Performing Loans
|
14.1
|
16.8
|
18.3
|
23.8
|
-
|
|
|
|
|
|
|
|
|
Construction
|
4.6
|
2.1
|
5.8
|
4.9
|
4.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,116.7
|
4,149.8
|
3,241.8
|
4,038.5
|
-
|
|
% of Industry Non-Performing Loans
|
11.3
|
12.2
|
9.9
|
10.7
|
-
|
|
|
|
|
|
|
|
|
Services
|
9.7
|
7.3
|
2.6
|
6.5
|
5.3
|
|
Electric, Gas & Water
|
4.6
|
5.0
|
0.4
|
8.5
|
5.6
|
|
Transport, Storage & Communication
|
7.60
|
7.80
|
1.60
|
7.15
|
7.55
|
|
Wholesale, Retail, Hotel & Restaurant
|
11.6
|
10.0
|
2.8
|
4.7
|
5.2
|
|
Finance, Insurance & Real Estate
|
10.7
|
9.2
|
3.8
|
6.0
|
5.2
|
|
Government Services
|
4.6
|
8.6
|
2.0
|
6.7
|
1.9
|
|
Other Services
|
5.0
|
5.9
|
4.4
|
4.2
|
5.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
10,207.8
|
8,281.4
|
6,631.3
|
7,384.6
|
-
|
|
% of Industry Non-Performing Loans
|
22.6
|
24.3
|
20.2
|
25.7
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
|
|
|
|
|
|
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
93099 : Other service activities n.e.c.
|
|
|
|
|
INDUSTRY :
|
ECONOMY
|
|
|
|
|
|
|
The Malaysian economy recorded a robust growth of 10.1% in the first
quarter of 2010, the highest first quarter growth since the 11.7% recorded
in 2000. Prime Minister Datuk Seri Najib Tun Razak said that given the robust
performance in 2010 and the government-introduced economic transformation
initiatives, Malaysia would achieve its target of 6% growth in 2010. Growth
in 2010 will be driven by domestic demand, particularly the private
expenditure, and supported by expected recovery in external demand.
|
|
Bank Negara announced a slight increase in the interest rate to counter any
spike in inflation following the high growth. The Overnight Policy Rate
(OPR) was increased by 25 basis points to 2.5%. The new level of the OPR
would continue to be accommodative and supportive of the economic growth.
The growth of GDP in the first three months of 2010 was much higher than
the 4.4% growth registered in the fourth quarter of 2009. It has spurred by
strong domestic demand and global economic recovery.
|
|
On the supply side, all major sectors recorded robust growth, particularly
the manufacturing sector which grew by 16.9% compared to the 5.0% in the
last quarter of 2009. Growth in this sector was driven by the electric and
electronics (25.9%), transport equipment (25.3%) as well as wood products
and furniture (18.7%) sub-sectors.
|
|
The services sector also registered a strong performance at 8.5% in the first
quarter of 2010 compared to 5.2% in the first quarter of 2009. This was
because of strong growth in the utilities (16.6%), real estate and business
services (14.2%), wholesale and retail (9.6%) and the transport and storage
(9.2%) sub-sectors.
|
|
The construction sector continued to expand with a 8.5% growth while the
mining sector also seemed to have turned around to record a 5.2% growth.
The agriculture sector also expanded by 6.8% mainly due to higher
production of rubber, livestock and timber.
|
|
On the demand side, growth during the first quarter of 2010 was underpinned
by strong domestic expenditure stemming from sustained expansion in private
and public consumption of 5.1% and 6.3% respectively. Investments grew
strongly at 5.4%, reflecting a recovery in investor confidence.
|
|
The external sector registered a sterling performance with a 19.3% increase
in total exports, amidst recovery in the global economy and trade. Total
imports expanded by 27.5% on account of higher imports of intermediate
(37.9%), consumption (18.5%) and capital goods (9.6%), pointing to a more
robust domestic economic activities. Government is committed to ensuring
economic recovery and transformation is on the right track.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS & RECOMMENDATION
|
Incorporated in 2002 as a private limited company, the SC is
principally engaged in the conditioning and monitoring of industrial filtration
system. Throughout its years of establishment, the SC has slowly been
building up contacts with its clients and competing in the industry. With a
small paid up capital of RM100,000, the SC should put more efforts on its
business to gain higher market share while competing aggressively in the
market.
|
|
With its continuous expansion, the SC has slowly been expanding its
business operations to overseas countries. This global move should have
benefited the SC in term of higher earnings and lower its business risk.
Besides that, the SC provide the services for various industries in
applications like turbine lubrication, rotary equipment, seal oil systems,
gas and diesel engines, paper machines, gearboxes, compressors, and etc.
This will eliminates the risk of dependency on one business line. The SC
can be recognised as a small entity with a work force of 8 employees in the
operations. Its management capability is considered average.
|
|
For the financial year ended 2009, its turnover continued on an upward
momentum, reaching RM2.18 million. Correspondingly, its pre-tax profit rose
to RM67,009. This was achieved on the back of stronger performance of
higher turnover. Return on shareholders' funds of the SC was at an
acceptable range which indicated that the management was efficient in
utilising its funds to generate income.We noted that the SC's current
liabilities well exceed its current assets. Due to its weak liquidity
position, the SC may face working capital deficiency in meeting its short
term financial obligations if no fresh capital are injected into the SC.
The high gearing ratio clearly implied that the SC was supported by more
debt than equity. Thus, the SC is exposed to high financial risk.
|
|
To reduce the risk of component shortages, the SC's raw materials are
sourced from both local and overseas suppliers. Thus, it is subjected to
the currency fluctuation risk.
|
|
Based on our historical financial data, the SC's payment is average. The SC
should be able to meet its small and medium commitments. Some caution
needed for big transactions. The SC is clear of any litigation action
|
|
The industry shows an upward trend and this trend is likely to sustain in the
near future. The steady growth in the country's economy will further
enhance its business and there will be more business opportunities
available for the SC in the future. Nonetheless, the SC should adopt better
competitive strategies in order to sustain its business position and to
compete with other well established players in the same industry.
|
|
Based on the above condition, we recommend a moderate amount of credit be
granted to the SC normally.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL STATEMENTS
WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
PROACTIVE
CONDITIONING & MONITORING SDN BHD
|
|
For The Year
Ended 31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
TURNOVER
|
2,188,013
|
845,487
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
67,009
|
<98,389>
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
67,009
|
<98,389>
|
|
Taxation
|
<5,500>
|
710
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
61,509
|
------------
<97,679>
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
61,509
|
------------
<97,679>
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
61,509
|
------------
<97,679>
|
|
As previous reported
|
175,462
|
273,141
|
|
|
|
|
|
As restated
|
------------
175,462
|
------------
273,141
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
236,971
|
175,462
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
236,971
==========
|
------------
175,462
==========
|
|
RETAINED BY: The Company
|
236,971
|
175,462
|
|
|
------------
236,971
==========
|
------------
175,462
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
Term loan
|
10,000
|
-
|
|
Bank overdraft
|
45,243
|
22,361
|
|
|
|
|
|
Hire purchase
|
6,339
|
1,896
|
|
|
------------
61,582
==========
|
------------
24,257
==========
|
|
|
|
|
BALANCE SHEET
|
PROACTIVE
CONDITIONING & MONITORING SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
603,438
|
542,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
603,438
|
------------
542,452
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
104,002
|
229,673
|
|
|
|
|
|
|
|
Trade debtors
|
452,738
|
104,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits with financial institution
|
105,624
|
100,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
6,813
|
9,791
|
|
|
|
|
|
|
|
Tax recoverable
|
53,948
|
36,948
|
|
|
Sundry deposits
|
93,571
|
93,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
816,696
|
------------
574,571
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
193,331
|
90,704
|
|
|
Other creditors & accruals
|
129,083
|
115,714
|
|
|
Hire purchase & lease creditors
|
8,222
|
9,000
|
|
|
Bank overdraft
|
656,183
|
602,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to director
|
44,540
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
1,031,359
|
------------
818,311
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<214,663>
|
------------
<243,740>
|
|
TOTAL NET ASSETS
|
------------
388,775
==========
|
------------
298,712
==========
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
100,000
|
100,000
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
100,000
|
------------
100,000
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
236,971
|
175,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
236,971
|
------------
175,462
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
336,971
|
------------
275,462
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase creditors
|
50,304
|
23,250
|
|
|
Deferred taxation
|
1,500
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
51,804
|
------------
23,250
|
|
|
------------
|
------------
|
|
|
388,775
|
298,712
|
|
|
==========
|
==========
|
|
|
|
|
|
FINANCIAL RATIOS
|
PROACTIVE
CONDITIONING & MONITORING SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
6,813
|
9,791
|
|
|
Net Liquid Funds
|
<649,370>
|
<593,102>
|
|
|
Net Liquid Assets
|
<318,665>
|
<473,413>
|
|
|
Net Current Assets/(Liabilities)
|
<214,663>
|
<243,740>
|
|
|
Net Tangible Assets
|
388,775
|
298,712
|
|
|
Net Monetary Assets
|
<370,469>
|
<496,663>
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
714,709
|
635,143
|
|
|
Total Liabilities
|
1,083,163
|
841,561
|
|
|
Total Assets
|
1,420,134
|
1,117,023
|
|
|
Net Assets
|
388,775
|
298,712
|
|
|
Net Assets Backing
|
336,971
|
275,462
|
|
|
Shareholders" Funds
|
336,971
|
275,462
|
|
|
Total Share Capital
|
100,000
|
100,000
|
|
|
Total Reserves
|
236,971
|
175,462
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0.01
|
0.01
|
|
|
Liquid Ratio
|
0.69
|
0.42
|
|
|
Current Ratio
|
0.79
|
0.70
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
17
|
99
|
|
|
Debtors Ratio
|
76
|
45
|
|
|
Creditors Ratio
|
32
|
39
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
2.12
|
2.31
|
|
|
Liabilities Ratio
|
3.21
|
3.06
|
|
|
Times Interest Earned Ratio
|
2.09
|
<3.06>
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
3.06
|
<11.64>
|
|
|
Net Profit Margin
|
2.81
|
<11.55>
|
|
|
Return On Net Assets
|
33.08
|
<24.82>
|
|
|
Return On Capital Employed
|
12.21
|
<8.14>
|
|
|
Return On Shareholders' Funds/Equity
|
18.25
|
<35.46>
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
|
|
|
|
|
|
|
