|
* Adopted abbreviations : SC - Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
220355-X
|
|
COMPANY NAME
|
:
|
ELITE PRECISION COMPONENTS SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
08/07/1991
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
UNIT 203, BLOCK C, DAMANSARA INTAN, 1 JALAN SS 20/27, 2ND FLOOR,
47400 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
NO 40 & 42, JALAN ANGGERIK MOKARA 31/47, SEKSYEN 31, KOTA
KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-51222893
|
|
FAX.NO.
|
:
|
03-51225926
|
|
EMAIL
|
:
|
epcsb@tm.net.my
|
|
WEB SITE
|
:
|
www.eliteprecision.com
|
|
CONTACT PERSON
|
:
|
FONG JOO FATT
( GENERAL MANAGER )
|
|
INDUSTRY CODE
|
:
|
29191
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURE
COPPER ALLOY RELATED COMPONENTS FOR AIR CONDITIONER AND HOME APPLIANCES
INDUSTRIES
|
|
AUTHORISED CAPITAL
|
:
|
MYR
5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR
2,500,000.00 DIVIDED INTO
ORDINARY SHARES 1,770,000 CASH AND 730,000 OTHERWISE OF MYR 1.00 EACH.
|
|
SALES
|
:
|
MYR 34,090,994
[2009]
|
|
NET WORTH
|
:
|
MYR 22,377,744 [2009]
|
|
STAFF STRENGTH
|
:
|
200 [2011]
|
|
BANKER (S)
|
|
UNITED OVERSEAS BANK (MALAYSIA) BHD
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STRONG
|
|
PAYMENT
|
:
|
PROMPT
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
INDUSTRY OUTLOOK
|
:
|
MARGINAL GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD542,663
|
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) manufacture copper alloy
related components for air conditioner and home appliances industries.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The immediate and ultimate holding company of the SC is GA RESOURCES SDN BHD,
a company incorporated in MALAYSIA.
The major shareholder(s) of the SC are
shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
GA RESOURCES SDN BHD
|
LOT 9, JALAN 13/6, 46200 PETALING JAYA, SELANGOR, MALAYSIA.
|
527546
|
2,500,000.00
|
|
|
|
|
---------------
|
|
|
|
|
2,500,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. FOO AH SEK @ FOO CHAK KUEN
|
|
Address
|
:
|
5, JALAN SS 21/32, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR,
MALAYSIA.
|
|
IC / PP No
|
:
|
7615815
|
|
New IC No
|
:
|
480823-71-5011
|
|
Date of Birth
|
:
|
23/08/1948
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
10/10/1997
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. LIM KIAN CHONG
|
|
Address
|
:
|
21, JALAN 31/168, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR,
MALAYSIA.
|
|
IC / PP No
|
:
|
8379169
|
|
New IC No
|
:
|
540216-05-5199
|
|
Date of Birth
|
:
|
16/02/1954
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
02/01/1993
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. LIU HUEI YANG
|
|
Address
|
:
|
42 JALAN TR 7/2, TROPICANA GOLF & COUNTRY RESORT, 47410 PETALING
JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
A3103183
|
|
New IC No
|
:
|
750501-14-5295
|
|
Date of Birth
|
:
|
01/05/1975
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
05/08/1999
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
FONG JOO FATT
|
|
|
Position
|
:
|
GENERAL MANAGER
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
LIM KIAN CHONG
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
K E KHOO
|
|
|
Position
|
:
|
FINANCE MANAGER
|
|
|
|
|
|
|
4)
|
Name of Subject
|
:
|
KHOO
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
AUDITOR
|
Auditor
|
:
|
TAI, YAPP & CO
|
|
Auditor' Address
|
:
|
3-2, JALAN INDRAHANA 2, OFF JALAN KUCHAI LAMA, 58200 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. CHONG FOOK SIN
|
|
|
IC / PP No
|
:
|
7621227
|
|
|
New IC No
|
:
|
470314-01-5173
|
|
|
Address
|
:
|
5, JALAN PJU 1A/56, DAMANSARA IDAMAN, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
2)
|
Company Secretary
|
:
|
MR. KAN CHEE JING
|
|
|
IC / PP No
|
:
|
A2298936
|
|
|
New IC No
|
:
|
721220-08-5537
|
|
|
Address
|
:
|
BLOCK C-12-10, DANAU IDAMAN, JALAN 2/109F, TAMAN DANAU DESA, 58100
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
UNITED OVERSEAS 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
|
:
|
23/07/2001
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM3,000,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
UNITED OVERSEAS BANK (MALAYSIA) BHD
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 5 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
08/04/2005
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM2,000,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
UNITED OVERSEAS BANK (MALAYSIA) BHD
|
|
Form 40 Dated
|
|
Registered and Numbered 6 In The Register of Charges
|
ENCUMBRANCE 3
|
Date of Creation
|
:
|
24/08/2007
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM13,100,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
UNITED OVERSEAS BANK (MALAYSIA) BHD
|
|
Form 40 Dated
|
|
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.
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
|
[
|
X
|
]
|
|
Good 31-60 Days
|
[
|
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Export Market
|
:
|
SINGAPORE, AUSTRALIA, ASIA
|
|
Credit Term
|
:
|
30 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES, TELEGRAPHIC TRANSFER (TT)
|
OPERATIONS
|
Products manufactured
|
:
|
|
COPPER ALLOY RELATED COMPONENTS
|
|
|
|
|
|
|
Award
|
:
|
1 ) MS ISO 9001 : 2000 Year :2003
|
|
|
|
|
|
Competitor(s)
|
:
|
DUNHAM-BUSH
HOLDING BHD
O.Y.L. MANUFACTURING COMPANY SDN BHD
PANASONIC COMPRESSOR MALAYSIA SDN BHD
PANASONIC REFRIGERATION DEVICES MALAYSIA SDN BHD
U.C.M. INDUSTRIAL CORPORATION BHD
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)
SMALL & MEDIUM ENTERPRISE
|
|
|
|
|
|
Ownership of premises
|
:
|
OWNED
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
COMPANY
|
200
|
200
|
200
|
200
|
228
|
206
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacture copper alloy
related components for air conditioner and home appliances industries.
The SC produces component parts for the air conditioning industry and
specializing in the fabrication of a wide range of copper tube components,
blowers & fans and heat exchanger coils.
Besides that the SC also specializes in fabricating multi-bend tubes, all
types of swaged and expanded tubes and brazed tubes in accordance to
customer's specifications and also produces accumulators, strainers, twin
tube joints etc.
The SC utilizes advanced automated and semi-automated machineries to ensure
production of high quality products.
We were informed 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
|
:
|
03-51222893
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
N/A
|
|
Current Address
|
:
|
NO 40 & 42, JALAN ANGGERIK MOKARA 31/47, SEKSYEN 31, KOTA
KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
we contacted one of the SC
staff and she provided some information regarding to the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Decreased
|
[
|
2007 - 2009
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2007 - 2009
|
]
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
13.46%
|
]
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
18.74%
|
]
|
The continuous fall in turnover could be due to the lower demand for the SC's
products / services. The higher profit could be attributed to the increase in
turnover. The SC's management had generated acceptable return for its
shareholders using its assets.
Working Capital Control:
|
Stock Ratio
|
:
|
Unfavourable
|
[
|
93 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
65 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
24 Days
|
]
|
The SC could be incurring higher holding cost. As its capital was tied up in
stocks, it could face liquidity problems. 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
|
:
|
Favourable
|
[
|
1.84 Times
|
]
|
|
Current Ratio
|
:
|
Favourable
|
[
|
3.13 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
|
[
|
16.80 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.05 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
Assessment:
Due to the
efficient control of its operating costs, the SC was able to remain
profitable despite lower turnover achieved during the year. 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:
|
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
|
|
29191 : Manufacture of air-conditioning, refrigerating and
ventilating machinery
|
|
|
|
|
INDUSTRY :
|
MACHINERY
|
|
|
|
|
|
|
The Master Builders Association Malaysia (MBAM) has suggested that the
government reduce the import duty and sales tax for heavy machinery used in
construction, on a systematic basis within two years, to five per cent from
the 20 per cent currently.
|
|
The reduction would enable construction machinery companies as well as the
industry, to remain competitive within ASEAN.
|
|
As a majority of the construction machinery in Malaysia is quite old, there
would be huge opportunities for construction machinery companies to
explore, penetrate and expand their businesses as well as to support the
implementation of projects in the country.
|
|
The MBAM is encouraging the use of newer machinery to improve efficiency
and also for safety purposes, as older ones, may have a higher safety risk
due to metal fatigue.
|
|
However, the existence of an import duty and sales tax are still required
to avoid large scale dumping of second hand machinery in Malaysia.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Marginal Growth
|
COMMENTS & RECOMMENDATION
|
Formed in 1991 as a private limited company, the SC is principally
engaged in manufacturing of copper alloy related components for air
conditioner and home appliances industries. Backed by its established
company, GA Resources Sdn Bhd, the SC is expected to enjoy timely assistance
if the needs arise. With its long presence in the industry coupled with its
vast experiences in the business, the SC should have built up certain
goodwill with its clients over times. A paid up capital of RM2.5 million
allows the SC to expand its business more comfortably.
|
|
Throughout its years of establishment, the SC has built up an extensive
network in the market. In an effort to capture a higher market shares, the
SC has penetrated into the global market. Its customer's base has extended
from Malaysia to Singapore, Australia and other Asia countries. This global
move has benefited the SC in terms of higher profitability and diversified
its business risk. At present, the SC's daily operations is supported by
200 employees. The SC's overall management capability is considered
average.
|
|
For the financial year ended 2009, the SC's turnover decreased from RM58.3
million to RM34.09 million. Despite the lower turnover, the SC's pre-tax
profit grew to RM4.06 million. Return on shareholders' funds was at an acceptable
range, indicating that the management was efficient in utilising its funds
to generate returns. The SC was in good liquidity position with its current
liabilities well covered by its current assets. Hence, it has sufficient
working capital to meet its short term financial obligations. Being a lowly
geared company, the SC is exposed to low financial risk as it is mainly
dependent on its internal funds to finance its business needs. The SC had a
strong financial performance in year 2009.
|
|
Our investigation revealed that the SC's supplies are sourced locally and
also imports from overseas countries. Due to its long establishment, we
believe that the SC has built up a stable supplier base. Thus, it does not
face significant problem in getting its resources.
|
|
Based on the historical financial data, we concluded that the SC's payment
habit is prompt. The SC had a favourable creditors' ratio as evidenced by
its favourable collection days. There are no legal suits against the SC as
it has maintain a good image over the years.
|
|
The potential growth for the industry is marginal and it is quite
competitive. It is very much dependent 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.
|
|
In view of the above, we recommend credit be granted to the SC promptly.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
ELITE
PRECISION COMPONENTS SDN BHD
|
|
For The Year
Ended 31-December-2009
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
34,090,994
|
58,301,545
|
62,233,233
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
4,067,294
|
833,110
|
3,725,599
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
4,067,294
|
833,110
|
3,725,599
|
|
Taxation
|
<1,054,280>
|
<79,173>
|
<983,313>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
3,013,014
|
------------
753,937
|
------------
2,742,286
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
3,013,014
|
------------
753,937
|
------------
2,742,286
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
3,013,014
|
------------
753,937
|
------------
2,742,286
|
|
As previous reported
|
17,864,730
|
17,110,793
|
14,368,507
|
|
|
|
|
|
|
As restated
|
------------
17,864,730
|
------------
17,110,793
|
------------
14,368,507
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
20,877,744
|
17,864,730
|
17,110,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
<1,000,000>
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
19,877,744
==========
|
------------
17,864,730
==========
|
------------
17,110,793
==========
|
|
RETAINED BY: The Company
|
19,877,744
|
17,864,730
|
17,110,793
|
|
|
|
|
|
|
|
|
|
|
|
|
------------
19,877,744
==========
|
------------
17,864,730
==========
|
------------
17,110,793
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
Term loan
|
104,313
|
168,759
|
177,151
|
|
Bank overdraft
|
3
|
1,003
|
2,931
|
|
|
|
|
|
|
Hire purchase
|
-
|
-
|
8,872
|
|
Interest on lease capitalised
|
-
|
-
|
516,485
|
|
|
|
|
|
|
Interest on trust receipts
|
153,101
|
593,509
|
-
|
|
|
------------
257,417
==========
|
------------
763,271
==========
|
------------
705,439
==========
|
BALANCE SHEET
|
ELITE
PRECISION COMPONENTS SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
8,699,417
|
9,751,497
|
10,925,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
8,699,417
|
------------
9,751,497
|
------------
10,925,925
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
8,708,287
|
10,794,785
|
12,679,810
|
|
|
|
|
|
|
|
|
Trade debtors
|
6,114,481
|
7,419,320
|
9,369,679
|
|
|
Other debtors, deposits & prepayments
|
487,356
|
162,376
|
173,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount due from related companies
|
854,990
|
558,335
|
72,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
3,758,734
|
4,474,075
|
2,666,883
|
|
|
|
|
|
|
|
|
Tax recoverable
|
1,211,710
|
1,692,791
|
573,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
21,135,558
|
------------
25,101,682
|
------------
25,535,186
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
2,278,908
|
3,999,203
|
5,549,335
|
|
|
Other creditors & accruals
|
761,314
|
644,941
|
771,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short term borrowings/Term loans
|
532,566
|
955,947
|
931,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bill & acceptances payable
|
3,187,000
|
6,429,000
|
6,168,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to holding companies
|
-
|
33,630
|
33,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
6,759,788
|
------------
12,062,721
|
------------
13,454,102
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
14,375,770
|
------------
13,038,961
|
------------
12,081,084
|
|
TOTAL NET ASSETS
|
------------
23,075,187
==========
|
------------
22,790,458
==========
|
------------
23,007,009
==========
|
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
2,500,000
|
1,000,000
|
1,000,000
|
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
2,500,000
|
------------
1,000,000
|
------------
1,000,000
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
19,877,744
|
17,864,730
|
17,110,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
19,877,744
|
------------
17,864,730
|
------------
17,110,793
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
22,377,744
|
------------
18,864,730
|
------------
18,110,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
Long term loans
|
584,143
|
1,121,628
|
2,042,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxation
|
113,300
|
164,100
|
213,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount owing to holding company
|
-
|
2,640,000
|
2,640,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
697,443
|
------------
3,925,728
|
------------
4,896,216
|
|
|
------------
|
------------
|
------------
|
|
|
23,075,187
|
22,790,458
|
23,007,009
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
ELITE
PRECISION COMPONENTS SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
3,758,734
|
4,474,075
|
2,666,883
|
|
|
Net Liquid Funds
|
3,226,168
|
3,518,128
|
1,735,303
|
|
|
Net Liquid Assets
|
5,667,483
|
2,244,176
|
<598,726>
|
|
|
Net Current Assets/(Liabilities)
|
14,375,770
|
13,038,961
|
12,081,084
|
|
|
Net Tangible Assets
|
23,075,187
|
22,790,458
|
23,007,009
|
|
|
Net Monetary Assets
|
4,970,040
|
<1,681,552>
|
<5,494,942>
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
1,116,709
|
2,077,575
|
2,973,996
|
|
|
Total Liabilities
|
7,457,231
|
15,988,449
|
18,350,318
|
|
|
Total Assets
|
29,834,975
|
34,853,179
|
36,461,111
|
|
|
Net Assets
|
23,075,187
|
22,790,458
|
23,007,009
|
|
|
Net Assets Backing
|
22,377,744
|
18,864,730
|
18,110,793
|
|
|
Shareholders" Funds
|
22,377,744
|
18,864,730
|
18,110,793
|
|
|
Total Share Capital
|
2,500,000
|
1,000,000
|
1,000,000
|
|
|
Total Reserves
|
19,877,744
|
17,864,730
|
17,110,793
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.56
|
0.37
|
0.20
|
|
|
Liquid Ratio
|
1.84
|
1.19
|
0.96
|
|
|
Current Ratio
|
3.13
|
2.08
|
1.90
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
93
|
68
|
74
|
|
|
Debtors Ratio
|
65
|
46
|
55
|
|
|
Creditors Ratio
|
24
|
25
|
33
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0.05
|
0.11
|
0.16
|
|
|
Liabilities Ratio
|
0.33
|
0.85
|
1.01
|
|
|
Times Interest Earned Ratio
|
16.80
|
2.09
|
6.28
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
11.93
|
1.43
|
5.99
|
|
|
Net Profit Margin
|
8.84
|
1.29
|
4.41
|
|
|
Return On Net Assets
|
18.74
|
7.00
|
19.26
|
|
|
Return On Capital Employed
|
18.32
|
6.72
|
18.51
|
|
|
Return On Shareholders' Funds/Equity
|
13.46
|
4.00
|
15.14
|
|
|
Dividend Pay Out Ratio (Times)
|
0.33
|
0
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
|
|
|
