|
* Adopted abbreviations : SC
- Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
166421-A
|
|
COMPANY NAME
|
:
|
TM AIR CONDITIONING SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
24/11/1987
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
F-3-5, PLAZA DAMAS, 60, JALAN SRI HARTAMAS 1, SRI HARTAMAS, 50480
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
2047, LORONG PERUSAHAAN 10, PRAI INDUSTRIAL ESTATE, 13600 PRAI,
PULAU PINANG, MALAYSIA.
|
|
TEL.NO.
|
:
|
04-3826100
|
|
FAX.NO.
|
:
|
04-3908619
|
|
CONTACT PERSON
|
:
|
ALLAN WARREN ( MARKETING MANAGER )
|
|
INDUSTRY CODE
|
:
|
29191
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURER,
DESIGNER, ASSEMBLER OF AIR CONDITIONING AND REFRIGERATION PRODUCT
|
|
AUTHORISED CAPITAL
|
:
|
MYR 5,000,000.00
DIVIDED INTO
ORDINARY SHARE 5,000.00 OF MYR 1,000.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
3,000,000.00 DIVIDED INTO
ORDINARY SHARES 3,000 CASH OF MYR 1,000.00 EACH.
|
|
SALES
|
:
|
MYR
121,733,133 [2009]
|
|
NET WORTH
|
:
|
MYR 93,833,893
[2009]
|
|
STAFF STRENGTH
|
:
|
200 [2011]
|
|
Bankers
|
|
RHB BANK BHD
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STRONG
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
INDUSTRY OUTLOOK
|
:
|
MARGINAL GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD4,973,541
|
HISTORY / BACKGROUND
The SC is a private limited company and is allowed to have a minimum
of one and a maximum of forty-nine shareholders. As a private limited
company, the SC must have at least two directors. A private limited company
is a separate legal entity from its shareholders. As a separate legal entity,
the SC is capable of owning assets, entering into contracts, sue or be sued
by other companies. The liabilities of the shareholders are to the extent of
the equity they have taken up and the creditors cannot claim on shareholders'
personal assets even if the SC is insolvent. The SC is governed by the
Companies Act, 1965 and the company must file its annual returns, together
with its financial statements with the Registrar of Companies.
The SC is principally engaged in the (as a / as an) manufacturer,
designer, assembler of air conditioning and refrigeration product.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The immediate holding company of the SC is TRANE INC. OF DELAWARE, a
company incorporated in UNITED STATES.
The ultimate holding company of the SC is INGERSOLL-RAND PLC, a
company incorporated in IRELAND.
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
TRANE INC OF DELAWARE
|
1114, AVENUE OF THE AMERICAS, 10036, NEW YORK, UNITED STATES.
|
|
3,000.00
|
|
|
|
|
---------------
|
|
|
|
|
3,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. WONG KOK YONG
|
|
Address
|
:
|
197, JALAN C4, TAMAN MELAWATI, 53100 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
A0038041
|
|
New IC No
|
:
|
641211-10-6551
|
|
Date of Birth
|
:
|
11/12/1964
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
11/05/2009
|
DIRECTOR 2
|
Name Of Subject
|
:
|
TANEJA KAMAL
|
|
Address
|
:
|
08-06, MONT KIARA DAMAI CONDOMINIUM, JALAN KIARA 2, MONT KIARA,
50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
E4002527
|
|
Nationality
|
:
|
AUSTRALIAN
|
|
Date of Appointment
|
:
|
01/04/2010
|
DIRECTOR 3
|
Name Of Subject
|
:
|
CHONG KHEK PIN
|
|
Address
|
:
|
38, DOVER RISE, 03-04, 138684, SINGAPORE.
|
|
IC / PP No
|
:
|
E1941479C
|
|
Nationality
|
:
|
SINGAPOREAN
|
|
Date of Appointment
|
:
|
07/04/2011
|
DIRECTOR 4
|
Name Of Subject
|
:
|
YANTO TAN
|
|
Address
|
:
|
B-12-07, STERLING CONDOMINIUM, SS 7/19, 473013 PETALING JAYA,
SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
R393902
|
|
Nationality
|
:
|
INDONESIAN
|
|
Date of Appointment
|
:
|
07/04/2011
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
ALLAN WARREN
|
|
|
Position
|
:
|
MARKETING MANAGER
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
KWAN LAM CHANG
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
GOPAL KRISHNAN
|
|
|
Position
|
:
|
PLANT MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
ERNST & YOUNG
|
|
Auditor' Address
|
:
|
MWE PLAZA, 8 LEBUH FARQUHAR, LEVEL 22, 10200 PULAU PINANG, PULAU
PINANG, MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. LAI SOW TOH
|
|
|
IC / PP No
|
:
|
6893072
|
|
|
New IC No
|
:
|
620915-10-6418
|
|
|
Address
|
:
|
B-08-01, KIARAMAS AYURIA, 3, JALAN KIARA 7, MONT KIARA, 50480 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
BANKING
Banking relations are maintained principally with :
|
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
|
:
|
05/07/1988
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM3,480,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
BAN HIN LEE BANK BHD
|
|
43 LEBUH PANTAI, 10300 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
|
Form 40 Dated 16/02/1988
|
|
Registered and Numbered 1 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
05/07/1988
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM3,480,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
BAN HIN LEE BANK BHD
|
|
43 LEBUH PANTAI, 10300 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
|
Form 40 Dated 19/07/1988
|
|
Registered and Numbered 3 In The Register of Charges
|
ENCUMBRANCE 3
|
Date of Creation
|
:
|
16/01/1989
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM3,480,000.00
|
|
Description Of Property Affected
|
:
|
|
HS(D) 2469 MK 1 PT VIZ PT 1081
|
|
|
Name & Address Of Chargee
|
:
|
|
BAN HIN LEE BANK BHD
|
|
43 LEBUH PANTAI, 10300 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
|
Form 40 Dated 18/04/1989
|
|
Registered and Numbered 6 In The Register of Charges
|
ENCUMBRANCE 4
|
Date of Creation
|
:
|
02/12/1994
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM5,160,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
Form 40 Dated 13/04/1995
|
|
Registered and Numbered 7 In The Register of Charges
|
ENCUMBRANCE 5
|
Date of Creation
|
:
|
02/12/1994
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM5,160,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
Form 40 Dated 13/04/1995
|
|
Registered and Numbered 8 In The Register of Charges
|
ENCUMBRANCE 6
|
Date of Creation
|
:
|
02/12/1994
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM5,160,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
Form 40 Dated 13/04/1995
|
|
Registered and Numbered 9 In The Register of Charges
|
ENCUMBRANCE 7
|
Date of Creation
|
:
|
02/12/1994
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM5,160,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
Form 40 Dated 13/04/1995
|
|
Registered and Numbered 10 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
|
|
Overseas
|
:
|
YES
|
|
Import Countries
|
:
|
UNITED STATES,JAPAN,KOREA
|
According to our trade survey and the historical financial accounts, we are
of the opinion that :
|
OVERALL PAYMENT HABIT
|
|
Prompt 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
X
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
AUSTRALIA, UNITED ARAB EMIRATES, ASIA,
EUROPE
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT)
|
OPERATIONS
|
Products manufactured
|
:
|
|
AIR CONDITIONING AND REFRIGERATION PRODUCTS
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Production Capacity
|
:
|
|
APPROXIMATELY 600 TO 700 UNITS PER MONTH
|
|
|
Shifts
|
:
|
|
3 SHIFTS (24 HOURS OPERATING)
|
|
|
|
|
|
|
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
|
186
|
185
|
180
|
180
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturer, designer,
assembler of air conditioning and refrigeration product.
The SC's products range includes air-conditioning equipment, air-handling
equipment, fan coil units, air cooled split system blowers and others.
We were informed that the SC's products are used for residential, commercial,
institutional, and industrial process applications.
The SC utilizes advanced automated and semi-automated machineries to ensure
production of high quality products.
The marketing arm also undertakes repair and maintenance works.
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
|
:
|
604 382 6317
|
|
Current Telephone Number
|
:
|
04-3826100
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Address Provided by Client
|
:
|
2047, LORONG PERUSAHAAN 10, PRAI INDUSTRIAL ESTATE, 13600, PRAI,
PULAU PINANG.
|
|
Current Address
|
:
|
2047, LORONG PERUSAHAAN 10, PRAI INDUSTRIAL ESTATE, 13600 PRAI,
PULAU PINANG, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the staff from the SC and she provided some information
on the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Decreased
|
[
|
6.47%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
28.71%
|
]
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
27.16%
|
]
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
34.05%
|
]
|
The lower turnover could be due to the unfavourable market conditions. The
SC's management have been efficient in controlling its operating costs. The
SC's management had generated acceptable return for its shareholders using
its assets.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
13 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
0 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
45 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had reduced
funds being tied up in stocks. The favourable debtors' days could be due to
the good credit control measures implemented by the SC. The SC had a
favourable creditors' ratio as evidenced by its favourable collection days.
The SC could be taking advantage of the cash discounts and also wanting to
maintain goodwill with its creditors.
Liquidity:
|
Liquid Ratio
|
:
|
Favourable
|
[
|
5.13 Times
|
]
|
|
Current Ratio
|
:
|
Favourable
|
[
|
5.33 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:
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. 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
|
|
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
|
The SC was established in 1987, the SC is principally engaged as a
manufacturer, designer and assembler of air conditioning and refrigerator
with the brand name of "TRANE". Having been in the industry for
over 2 decades, its long establishment in the market has allowed the SC to
build up a good reputation and gain higher market share over its rivals.
Under the major control of its holding company, it allows the SC to enjoy
timely assistance when the needs arise. With a paid up capital of RM3
million, the SC is considered a fairly large and stable company.
|
|
Backed by its large and stable marketing network, the SC has the ability to
maintain its clientele despite the challenging market environment. Its diversification
and depth of experience have given the SC the confidence to venture towards
globalization. Currently, the SC's customer's base has widen to cover
Australia, Asia, Europe and etc. In line with the SC's global market
penetration, it will likely help strengthen the SC's position in the
market. With a workforce of 200 staff, the SC's management structure is
well organised and overall the management capability of the SC is good.
|
|
For the financial year ended 2009, the SC's turnover decreased by 6.47%
from RM130.14 million to RM121.73 million. Despite the lower turnover, the
SC's pre-tax profit grew 28.71% to RM34.55 million. 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.
Moreover, the SC is in good liquidity position as its total current
liabilities well covered by its current assets. It does not face any
significant problem in meeting its short term financial obligations. 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.
Overall, the SC's financial standing is strong.
|
|
The SC's supplies are sourced locally and internationally such as United
States, Japan and Korea. Being involved in import and export activities,
the SC is subjected to currency fluctuation risk.
|
|
Based on our historical financial data, we concluded that the SC's pattern of
payment habit is good. This implies good credit control and the SC could be
taking advantage of the cash discounts while maintaining a good reputation
with its creditors. The SC is clear of any litigation.
|
|
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.
|
|
In view of the above favourable condition, we recommend a large amount
credit be proceeded to the SC with favourable term.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
TM AIR CONDITIONING
SDN BHD
|
|
For The Year
Ended 31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
121,733,133
|
130,147,196
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
34,551,109
|
26,844,546
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
34,551,109
|
26,844,546
|
|
Taxation
|
<9,061,676>
|
<6,631,452>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
25,489,433
|
------------
20,213,094
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
25,489,433
|
------------
20,213,094
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
25,489,433
|
------------
20,213,094
|
|
As restated
|
------------
63,358,097
|
------------
43,145,003
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
88,847,530
|
63,358,097
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
88,847,530
==========
|
------------
63,358,097
==========
|
|
RETAINED BY: The Company
|
88,847,530
|
63,358,097
|
|
|
------------
88,847,530
==========
|
------------
63,358,097
==========
|
BALANCE SHEET
|
TM AIR
CONDITIONING SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
6,737,475
|
6,752,346
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deffered assets
|
2,341,248
|
1,971,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
2,341,248
|
------------
1,971,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
9,078,723
|
------------
8,723,428
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
4,264,379
|
4,435,139
|
|
|
|
|
|
|
|
|
|
|
|
|
Other debtors, deposits & prepayments
|
144,448
|
114,613
|
|
|
Short term deposits
|
27,509,069
|
65,700,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount due from related companies
|
81,677,492
|
14,571,817
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
127,937
|
316,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
113,723,325
|
------------
85,138,532
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
14,878,009
|
11,334,410
|
|
|
Other creditors & accruals
|
4,505,454
|
4,286,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to related companies
|
240,658
|
64,184
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
1,611,670
|
2,994,844
|
|
|
|
|
|
|
|
Retirement benefit obligations
|
101,132
|
110,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
21,336,923
|
------------
18,790,290
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
92,386,402
|
------------
66,348,242
|
|
TOTAL NET ASSETS
|
------------
101,465,125
==========
|
------------
75,071,670
==========
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
3,000,000
|
3,000,000
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
3,000,000
|
------------
3,000,000
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
revaluation reserve
|
1,986,363
|
1,986,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
88,847,530
|
63,358,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
90,833,893
|
------------
65,344,460
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
93,833,893
|
------------
68,344,460
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retirement benefits provision
|
7,631,232
|
6,727,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
7,631,232
|
------------
6,727,210
|
|
|
------------
|
------------
|
|
|
101,465,125
|
75,071,670
|
|
|
==========
|
==========
|
|
|
|
|
|
FINANCIAL RATIOS
|
TM AIR
CONDITIONING SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
27,637,006
|
66,016,963
|
|
|
Net Liquid Funds
|
27,637,006
|
66,016,963
|
|
|
Net Liquid Assets
|
88,122,023
|
61,913,103
|
|
|
Net Current Assets/(Liabilities)
|
92,386,402
|
66,348,242
|
|
|
Net Tangible Assets
|
101,465,125
|
75,071,670
|
|
|
Net Monetary Assets
|
80,490,791
|
55,185,893
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
0
|
0
|
|
|
Total Liabilities
|
28,968,155
|
25,517,500
|
|
|
Total Assets
|
122,802,048
|
93,861,960
|
|
|
Net Assets
|
101,465,125
|
75,071,670
|
|
|
Net Assets Backing
|
93,833,893
|
68,344,460
|
|
|
Shareholders" Funds
|
93,833,893
|
68,344,460
|
|
|
Total Share Capital
|
3,000,000
|
3,000,000
|
|
|
Total Reserves
|
90,833,893
|
65,344,460
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
1.30
|
3.51
|
|
|
Liquid Ratio
|
5.13
|
4.29
|
|
|
Current Ratio
|
5.33
|
4.53
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
13
|
12
|
|
|
Debtors Ratio
|
0
|
0
|
|
|
Creditors Ratio
|
45
|
32
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
|
|
Liabilities Ratio
|
0.31
|
0.37
|
|
|
Times Interest Earned Ratio
|
0
|
0
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
28.38
|
20.63
|
|
|
Net Profit Margin
|
20.94
|
15.53
|
|
|
Return On Net Assets
|
34.05
|
35.76
|
|
|
Return On Capital Employed
|
34.05
|
35.76
|
|
|
Return On Shareholders' Funds/Equity
|
27.16
|
29.58
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
|
|
|
|
|
|
|
