|
* Adopted abbreviations : SC
- Subject Company (the company enquired by you)
N/A -
Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
512058-V
|
|
COMPANY NAME
|
:
|
ISOTRON (MALAYSIA) SDN BHD
|
|
FORMER NAME
|
:
|
ISOTRON
STERILISATION MALAYSIA SDN BHD (26/08/2002)
OXFORD EQUITY SDN BHD (20/09/2000)
|
|
INCORPORATION
DATE
|
:
|
21/04/2000
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE
LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED
ADDRESS
|
:
|
SUITE 18-01,
MWE PLAZA, 8 LEBUH FARQUHAR, 18TH FLOOR, 10020 PULAU PINANG, PULAU PINANG,
MALAYSIA.
|
|
BUSINESS
ADDRESS
|
:
|
PLOT 203,
KUALA KETIL INDUSTRIAL ESTATE, 09300 KUALA KETIL, KEDAH, MALAYSIA.
|
|
TEL.NO.
|
:
|
04-4151111/4162388
|
|
FAX.NO.
|
:
|
04-04 4152121
|
|
WEB SITE
|
:
|
www.isotron.com
|
|
CONTACT PERSON
|
:
|
SUWIT TUNLAYADECHANONT
( DIRECTOR )
|
|
INDUSTRY CODE
|
:
|
33130
|
|
PRINCIPAL
ACTIVITY
|
:
|
MANUFACTURE OF
STERILISATION FOR HEALTHCARE PRODUCTS
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
50,000,000.00 DIVIDED INTO
ORDINARY SHARE 30,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 20,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
29,700,000.00 DIVIDED INTO
ORDINARY SHARES 14,100,000 CASH AND 15,600,000 OTHERWISE OF MYR 1.00 EACH.
|
|
SALES
|
:
|
MYR 19,783,033 [2010]
|
|
NET WORTH
|
:
|
MYR 48,449,053 [2010]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
70 [2011]
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STRONG
|
|
PAYMENT
|
:
|
PROMPT
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
LOW
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
INDUSTRY OUTLOOK
|
:
|
MARGINAL GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD1,105,178
|
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 of
sterilisation for healthcare products.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The immediate holding company of the SC is ISOTRON INVESTMENTS
LIMITED, a company incorporated in UNITED KINGDOM.
The ultimate holding company of the SC is SYNERGY HEALTH PLC, a
company incorporated in UNITED KINGDOM.
The penultimate holding company of the SC is ISOTRON LIMITED, a
company incorporated in UNITED KINGDOM.
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
ISOTRON INVESTMENTS LIMITED
|
MORAY ROAD, ELGIN INDUSTRIAL ESTATE, SWIDON WILTSHIRE, SN2 8XS,
UNITED KINGDOM.
|
1507384
|
29,700,000.00
|
|
|
|
|
---------------
|
|
|
|
|
29,700,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. CHAN SEK FOO
|
|
Address
|
:
|
5 JALAN MARKISA, TAMAN MARKISA, 14000 BUKIT TENGAH, PULAU PINANG,
MALAYSIA.
|
|
IC / PP No
|
:
|
5851316
|
|
New IC No
|
:
|
600221-07-5495
|
|
Date of Birth
|
:
|
21/02/1960
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. TANG WEI KOK
|
|
Address
|
:
|
38 LORONG IDAMAN 3/2, TAMAN IDAMAN, 14100 SEBERANG PERAI TENGAH,
PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
A2422330
|
|
New IC No
|
:
|
730304-02-5421
|
|
Date of Birth
|
:
|
04/03/1973
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. DERRICK PAUL MCKENSIE-WYNNE
|
|
Address
|
:
|
28 WEST HAY GROVE KEMBLE, GLOUCHESTERSHIRE, GL7 6BE, UNITED KINGDOM.
|
|
IC / PP No
|
:
|
P099131455
|
|
Date of Birth
|
:
|
17/08/1956
|
|
Nationality
|
:
|
BRITISH
|
DIRECTOR 4
|
Name Of Subject
|
:
|
SUWIT TUNLAYADECHANONT
|
|
Address
|
:
|
4146 DINDAENF ROAD, DINDAENG, 10400 PULAU PINANG, PULAU PINANG,
MALAYSIA.
|
|
IC / PP No
|
:
|
A755967
|
|
Date of Birth
|
:
|
13/06/1966
|
|
Nationality
|
:
|
THAI
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
SUWIT TUNLAYADECHANONT
|
|
|
Position
|
:
|
DIRECTOR
|
AUDITOR
|
Auditor
|
:
|
KPMG
|
|
Auditor' Address
|
:
|
WISMA PENANG GARDEN, JALAN SULTAN AHAMD SHAH, 1ST FLOOR, 10050 PULAU
PINANG, PULAU PINANG, MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
CHAI CHURN HWA
|
|
|
IC / PP No
|
:
|
6750318
|
|
|
New IC No
|
:
|
620705-08-5241
|
|
|
Address
|
:
|
6, ARGUS LANE, 10200 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
BANKING
No Banker found in our databank.
ENCUMBRANCE (S)
No encumbrance was found in our databank at the time of investigation.
LEGAL CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia.
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
|
:
|
60%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
|
|
|
|
|
|
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
|
:
|
70%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
30%
|
|
Export Market
|
:
|
SINGAPORE
|
|
Credit Term
|
:
|
AS AGREED
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT)
|
OPERATIONS
|
Products manufactured
|
:
|
|
|
Competitor(s)
|
:
|
AIDA
MANUFACTURING (MALAYSIA) SDN BHD
AKER SOLUTIONS MALAYSIA SDN BHD
JASA KITA BHD
KNM GROUP BHD
PETRA BOILERS SDN BHD
|
|
|
|
|
|
Ownership of premises
|
:
|
OWNED
|
|
Total Number of Employees:
|
|
YEAR
|
2011
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
70
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacture of
sterilisation for healthcare products.
The SC delivers a range of specialist outsourced services to healthcare
providers and other clients concerned with health management.
These services are aimed at supporting their customers to improve the quality
and efficiency of their activities, whilst reducing risks to their patients
and clients.
The SC, has achieved market leading positions in the following areas:
* Hospital decontamination services for reusable medical and surgical
equipment
* Sterilisation services for single use medical devices and other products
* Healthcare solutions to manage the patient's environment, specializing in
infection control, wound care and surgical products and services
* Linen management services for healthcare facilities
* Laboratory services including clinical pathology, toxicology and
microbiological services, together with occupational health programmes
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
|
:
|
60 04 4152111
|
|
Current Telephone Number
|
:
|
04-4151111/4162388
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
PLOT 203, K KETIL INDUSTRIAL ESTATE, 09300, K KETIL, KEDAH.
|
|
Current Address
|
:
|
PLOT 203, KUALA KETIL INDUSTRIAL ESTATE, 09300 KUALA KETIL, KEDAH,
MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one
of the SC staff Ms Shima and she provided some information regarding to the
SC.
However, she refuse to provide SC's banker information.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Decreased
|
[
|
1.53%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
1.83%
|
]
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
16.07%
|
]
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
15.05%
|
]
|
The lower turnover could be due to the unfavourable market conditions. The dip
in profit could be due to the stiff market competition which reduced the SC's
profit margin. The SC's management had generated acceptable return for its
shareholders using its assets.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
6 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
76 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
3 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
|
:
|
Favourable
|
[
|
7.52 Times
|
]
|
|
Current Ratio
|
:
|
Favourable
|
[
|
7.72 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
|
:
|
Nil
|
[
|
0.00 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
The SC's interest cover was nil as it did not pay any interest during the
year. The SC had no gearing and hence it had virtually no financial risk. The
SC was financed by its shareholders' funds and internally generated fund.
During the economic downturn, the SC, having a zero gearing, will be able to
compete better than those which are highly geared in the same industry.
Overall Assessment:
The SC's
performance deteriorated over the years with lower 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. The SC did not make any
interest payment during the year. The SC was dependent on its shareholders'
funds to finance its business needs. The SC was a zero gearing company, it
was solely dependant on its shareholders to provide funds to finance its
business. The SC has good chance of getting loans, if the needs arises.
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
|
|
33130 : Manufacture of industrial process control equipment
|
|
|
|
|
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
|
Incorporated in 2000 as a private limited company, the SC is
principally engaged in the manufacturing of sterilisation for healthcare
products. Strongly supported by its well-established holding company from United
Kingdom, the SC is expected to enjoy timely financial and technical support
should the needs arise. With a large issued and paid up capital of RM29.7
million, the SC's business has been expanding comfortably over the years.
The SC's business position is stable.
|
|
Besides catering to the local market, the SC also exports to neighboring
countries especially Singapore. As it concentrates in both local and
overseas markets, we believe that the SC has the ability to lower its
business risk to meet any uncertainties in the local economy. Currently,
the SC has a total work force of 70 employees in its operation. Overall,
the management capability of the SC is average.
|
|
In year 2010, the SC's turnover has moderated by 1.53% to RM19.78 million
whilst its pre-tax profit dropped to RM8.36 million, in view of decline in
margin as a result of a challenging and competitive business environment.
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. The SC is 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. Besides,
being a zero geared company, the SC virtually has no 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 2010.
|
|
Investigation revealed that the SC's raw materials are sourced from both
local and overseas suppliers. Hence, the SC is subjected to currency
fluctuation risk and high operating costs.
|
|
We regard that the SC's overall payment habit is prompt. The SC had a
favourable creditors' ratio as evidenced by its favourable collection days.
|
|
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.
|
|
ISOTRON
(MALAYSIA) SDN BHD
|
|
For The Year
Ended 31-March-2010
|
|
|
|
|
|
|
2010
|
2009
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
19,783,033
|
20,090,801
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
8,365,888
|
8,522,194
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
8,365,888
|
8,522,194
|
|
Taxation
|
<581,095>
|
<1,390,000>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
7,784,793
|
------------
7,132,194
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
7,784,793
|
------------
7,132,194
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
7,784,793
|
------------
7,132,194
|
|
As previous reported
|
23,864,260
|
16,732,066
|
|
|
|
|
|
As restated
|
------------
23,864,260
|
------------
16,732,066
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
31,649,053
|
23,864,260
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
<12,900,000>
|
-
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
18,749,053
==========
|
------------
23,864,260
==========
|
|
RETAINED BY: The Company
|
18,749,053
|
23,864,260
|
|
|
------------
18,749,053
==========
|
------------
23,864,260
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
Other interest expenses
|
-
|
8,636
|
|
|
------------
-
==========
|
------------
8,636
==========
|
BALANCE SHEET
|
ISOTRON
(MALAYSIA) SDN BHD
|
|
As At
31-March-2010
|
|
|
|
|
|
|
2010
|
2009
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
45,296,115
|
48,311,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
45,296,115
|
------------
48,311,104
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
310,859
|
224,993
|
|
|
|
|
|
|
|
Trade debtors
|
4,111,017
|
4,432,374
|
|
|
Other debtors, deposits & prepayments
|
88,583
|
72,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits with financial institution
|
5,200,000
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
2,126,831
|
9,399,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
11,837,290
|
------------
14,129,316
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
152,372
|
265,125
|
|
|
Other creditors & accruals
|
1,280,980
|
1,022,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
100,000
|
355,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
1,533,352
|
------------
1,642,160
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
10,303,938
|
------------
12,487,156
|
|
TOTAL NET ASSETS
|
------------
55,600,053
==========
|
------------
60,798,260
==========
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
29,700,000
|
29,700,000
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
29,700,000
|
------------
29,700,000
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
18,749,053
|
23,864,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
18,749,053
|
------------
23,864,260
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
48,449,053
|
------------
53,564,260
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxation
|
7,151,000
|
7,234,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
7,151,000
|
------------
7,234,000
|
|
|
------------
|
------------
|
|
|
55,600,053
|
60,798,260
|
|
|
==========
|
==========
|
|
|
|
|
|
FINANCIAL RATIOS
|
ISOTRON
(MALAYSIA) SDN BHD
|
|
As At
31-March-2010
|
|
|
|
|
|
|
2010
|
2009
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
2,126,831
|
9,399,807
|
|
|
Net Liquid Funds
|
2,126,831
|
9,399,807
|
|
|
Net Liquid Assets
|
9,993,079
|
12,262,163
|
|
|
Net Current Assets/(Liabilities)
|
10,303,938
|
12,487,156
|
|
|
Net Tangible Assets
|
55,600,053
|
60,798,260
|
|
|
Net Monetary Assets
|
2,842,079
|
5,028,163
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
0
|
0
|
|
|
Total Liabilities
|
8,684,352
|
8,876,160
|
|
|
Total Assets
|
57,133,405
|
62,440,420
|
|
|
Net Assets
|
55,600,053
|
60,798,260
|
|
|
Net Assets Backing
|
48,449,053
|
53,564,260
|
|
|
Shareholders" Funds
|
48,449,053
|
53,564,260
|
|
|
Total Share Capital
|
29,700,000
|
29,700,000
|
|
|
Total Reserves
|
18,749,053
|
23,864,260
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
1.39
|
5.72
|
|
|
Liquid Ratio
|
7.52
|
8.47
|
|
|
Current Ratio
|
7.72
|
8.60
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
6
|
4
|
|
|
Debtors Ratio
|
76
|
81
|
|
|
Creditors Ratio
|
3
|
5
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
|
|
Liabilities Ratio
|
0.18
|
0.17
|
|
|
Times Interest Earned Ratio
|
0
|
987.82
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
42.29
|
42.42
|
|
|
Net Profit Margin
|
39.35
|
35.50
|
|
|
Return On Net Assets
|
15.05
|
14.03
|
|
|
Return On Capital Employed
|
15.05
|
14.03
|
|
|
Return On Shareholders' Funds/Equity
|
16.07
|
13.32
|
|
|
Dividend Pay Out Ratio (Times)
|
1.66
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
|
|
|
|
|
|
|
%20SDN%20BHD%20-%20151162%2019-Aug-2011_files/image002.jpg){kind=small}