|
* Adopted abbreviations : SC - Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
810334-U
|
|
COMPANY NAME
|
:
|
SIMS COPPER SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
19/03/2008
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
REGISTERED
ADDRESS
|
:
|
79-1A, JALAN BANDAR
1, PUSAT BANDAR PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.
|
|
BUSINESS
ADDRESS
|
:
|
B3-3A-13 &
B3-5-13 SOLARIS DUTA MAS 1, JLN DUTA MAS 1, 50480 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-62054588
|
|
FAX.NO.
|
:
|
03-62054688
|
|
CONTACT PERSON
|
:
|
RAJIV SINGH (
MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
28993
|
|
PRINCIPAL
ACTIVITY
|
:
|
MANUFACTURING
& ASSEMBLER OF COPPER BASED PRODUCT
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
25,000,000.00 DIVIDED INTO
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
15,000,000.00 DIVIDED INTO
ORDINARY SHARES 15,000,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 21,325,559
[2010]
|
|
NET WORTH
|
:
|
MYR 4,678,356
[2010]
|
|
STAFF STRENGTH
|
:
|
23 [2011]
|
BANKER (S)
|
|
MALAYAN
BANKING BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER
CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD12,619
|
HISTORY / BACKGROUND
The SC is a private limited company and is
allowed to have a minimum of one and a maximum of forty-nine shareholders. As
a private limited company, the SC must have at least two directors. A private
limited company is a separate legal entity from its shareholders. As a
separate legal entity, the SC is capable of owning assets, entering into
contracts, sue or be sued by other companies. The liabilities of the
shareholders are to the extent of the equity they have taken up and the
creditors cannot claim on shareholders' personal assets even if the SC is
insolvent. The SC is governed by the Companies Act, 1965 and the company must
file its annual returns, together with its financial statements with the
Registrar of Companies.
The SC is principally engaged in the (as a / as an) manufacturing &
assembler of copper based product.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The immediate holding company of the SC is SYNERGIC INDUSTRIAL MATERIALS
& SERVICES PTE LTD, a company incorporated in SINGAPORE.
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
SYNERGIC INDUSTRIAL MATERIALS & SERVICES PTE LTD
|
10, ANSON ROAD, 27-08, INTERNATIONAL PLAZA, 079903, SINGAPORE.
|
200306100C
|
15,000,000.00
|
|
|
|
|
---------------
|
|
|
|
|
15,000,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. RAJIV SINGH
|
|
Address
|
:
|
A-16-5, MONT KIARA CONDOMINIUM, JALAN KIARA 2, 50480 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
E132462N
|
|
|
|
|
|
Date of Birth
|
:
|
11/07/1965
|
|
|
|
|
|
Nationality
|
:
|
SINGAPOREAN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
DEEPANJALI SINGH
|
|
Address
|
:
|
A-16-5 MONT KIARA CONDOMINIUM, JALAN KIARA 2, 50480 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
Z1620830
|
|
|
|
|
|
Date of Birth
|
:
|
22/08/1971
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
DATO' YONG LI CHIAN
|
|
Address
|
:
|
1A-3-1 (PG-3), PERSIRAN GURNEY, GEORGETOWN, 10250 GEORGETOWN, PULAU PINANG,
MALAYSIA.
|
|
IC / PP No
|
:
|
7566981
|
|
New IC No
|
:
|
470426-71-5078
|
|
Date of Birth
|
:
|
26/04/1947
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
SATISH GURLHOSUR
|
|
Address
|
:
|
A-16-5, MONT KIARA CONDOMINIUM, JALAN KIARA 2, 50480 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
Z1800423
|
|
|
|
|
|
Date of Birth
|
:
|
10/08/1970
|
|
|
|
|
|
Nationality
|
:
|
INDIAN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
RAJIV SINGH
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
SHARMINE CHUA
|
|
|
Position
|
:
|
FINANCE MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
N KRISHNAN & CO
|
|
Auditor' Address
|
:
|
77-1A, JALAN BANDAR 1, PUSAT BANDAR PUCHONG, 1ST FLOOR, 47100
PUCHONG, SELANGOR, MALAYSIA.
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. CHOO MEI FOON
|
|
|
IC / PP No
|
:
|
A0679573
|
|
|
New IC No
|
:
|
670327-10-5852
|
|
|
Address
|
:
|
15, JALAN 8/149J, SRI PETALING, 57000 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
No adverse record was found during our investigation.
|
ENCUMBRANCE (S)
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
|
:
|
50%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
50%
|
|
|
|
|
|
|
|
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
|
:
|
50%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
50%
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
|
|
|
|
|
Competitor(s)
|
:
|
ALUMINIUM
COMPANY OF MALAYSIA BHD
HYDRO ALUMINIUM MALAYSIA SDN BHD
LB ALUMINIUM BHD
PRESS METAL BHD
SHOWA DENKO HD (MALAYSIA) SDN BHD
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2011
|
2010
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
COMPANY
|
23
|
8
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing &
assembler of copper based product.
The SC was established to produce copper wires and rods.
The SC's factory is in the Port Klang Free Zone (PKFZ) in Selangor.
The products are used in electrical, telecommunication, engineering and
others.
PROJECTS
No projects found in our databank
RECENT DEVELOPMENT
Jun 11, 2009
SIMS Copper Sdn Bhd, is set to invest RM100 million over the next three years
to produce copper wires and rods in the Port Klang Free Zone (PKFZ) in
Selangor.The company also plans to invest another RM100 million in the second
phase of the project to expand its capacity and to move into value-added
copper products.
Speaking at the ground-breaking ceremony of SIMS Copper by the Deputy
Minister of International Trade and Industry, Datuk Mukhriz Tun Mahathir,
SIMS Group Managing Director, Rajiv Singh, said the Group selected the PKFZ
as it offered an advantage in terms of a very efficient logistics solution,
which is vital for the copper business as it allows the timely delivery of
the copper sheets which can be melted and converted into wires and sent out
by the next day.
SIMS Copper is expected to commence the production of copper wire in the fourth
quarter of this year, with copper rod production scheduled for the second
quarter of next year.Over the first three years, the company expects to
produce 36,000 tonnes of copper wire and rod with raw material imported from
Zambia, South Africa and Congo.
According to Rajiv, the current global market for copper is 18 million tonnes
and demand is rising at 3 % to 4 % a year.
Meanwhile, Datuk Mukhriz said the recent liberalisation of the 27 services
sub-sectors and the financial sector has stirred the interest of foreign
investors especially from the West, despite the weak global economic
environment.
On new investments in the PKFZ, Datuk Lee Hwa Beng, the Chairman of PKFZ Sdn
Bhd said the free zone continued to attract investment interests.Potential
investors can select from the 298.4ha of open land available for long-term
lease, 512 pre-built light industrial units or four blocks of office
complexes. The area will also house a 100,000 sq ft exhibition centre and a
four-star hotel, which is scheduled to open in December.
To-date, PKFZ has attracted investments from 56 companies with total
investments of RM1 billion.
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
+603 3101 4844
|
|
Current Telephone Number
|
:
|
03-62054588
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Address Provided by Client
|
:
|
UNIT NO. B3-3A-13 & B3-5-13, SOLARIS DUTAMAS 1 JALAN DUTAMAS 1
50480
|
|
Current Address
|
:
|
B3-3A-13 & B3-5-13 SOLARIS DUTA MAS 1, JLN DUTA MAS 1, 50480
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
we contact one of the SC staff and
she provided some information regarding to the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
<0.00%>
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
<0.00%>
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
<6.80%>
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
<4.95%>
|
]
|
The higher turnover could be attributed to the favourable market condition.
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 unfavourable returns on shareholders'
funds indicate the management's inefficiency in utilising its assets to
generate returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
18 Days
|
]
|
|
Debtors Ratio
|
:
|
Acceptable
|
[
|
59 Days
|
]
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
66 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had reduced
funds being tied up in stocks. The SC's management was quite efficient in
handling its debtors. The SC's debtors days were at an acceptable range, thus
the risk of its debts turning bad was minimised. The unfavourable creditors'
ratio could be due to the SC taking advantage of the credit granted by its
suppliers. However this may affect the goodwill between the SC and its
suppliers and the SC may inadvertently have to pay more for its future
supplies.
Liquidity:
|
Liquid Ratio
|
:
|
Unfavourable
|
[
|
0.67 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.87 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
|
[
|
<126.08
Times>
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.03 Times
|
]
|
The SC incurred losses in the year. It did not generate sufficient income to
service its interest. If the situation does not improve, the SC may be
vulnerable to default in servicing the interest. 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:
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. The SC's interest cover was negative, indicating that it did not
generate sufficient income to service its interest. If its result does not
show impressive improvements or succeed obtaining short term financing or
capital injection, it may not be able to service its interest and repay the
loans. 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 : POOR
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
|
|
28993 : Manufacture of brass, copper, pewter and aluminium products
|
|
|
|
|
INDUSTRY :
|
METAL
|
|
|
|
|
|
|
The metal industry is bullish in its outlook for 2011 with the
implementation of projects under the Economic Transformation Programme
(ETP). The local industry players were poised to benefit in the long term
from projects such as the MRT (Mass Rapid Transit).
|
|
Even though the metal industry was not identified as one of the National
Key Economic Areas (NKEAs), it has given huge contribution to various
sectors under the NKEAs. The development of this industry would directly
influence the performance and success of those NKEAs especially in the
construction sector.
|
|
There would be a lot of infrastructure projects under the NKEAs and 10th
Malaysia Plan which will create opportunities for the metal industry to
expand production to cater for the upcoming demand in the implementation of
projects.
|
|
By imposing an export duty on iron ore, then more will be available in the
country and the prices will be lower than global prices but the imposing an
export duty must be on special circumstances.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS & RECOMMENDATION
|
Started in February 2010 the SC is principally engaged in the manufacturing
and assembling of copper based product. We noted that the SC has increased its
share capital to RM15 million which will enable the SC to further expand
its business in the near term. Under the support of its holding company
from Singapore, the SC is expected to enjoy timely financial and technical
support should the needs arise.
|
|
Apart from supplying its products to the local market, the SC also exports
to overseas countries. Its ability to penetrate into the global market has
benefited the SC in terms of higher profitability and well diversified its
business risk. Hence, better growth prospect can be expected. Currently,
the SC has a total work force of 23 employees in its operation. Overall,
the management capability of the SC is average.
|
|
In year 2010, the SC has recorded a turnover of RM21.32 million and it has
suffered pre-tax losses of RM239,537. Due to these losses, the SC has
generated an unfavourable return on shareholders' funds indicating that the
management was inefficient in utilising its funds to generate return. 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 is
injected into the SC. However, 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.
|
|
We noted that the SC's raw materials are sourced from the local market and
overseas market. Therefore the SC is exposed to foreign currency risk.
|
|
Based on the historical financial data, we concluded that the SC's payment
habit is average. The SC is capable to meet small and medium commitments.
|
|
The industry shows an upward trend and this trend is likely to sustain in
the near future. With the promising outlook of the industry performance,
the SC business potential should be favourable. The SC however faces
moderate business risk as it has to compete with many well established
players in the same field.
|
|
In view of the above, we recommend credit be granted to the SC with close
monitoring.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
SIMS COPPER
SDN BHD
|
|
For The Year
Ended 31-March-2010
|
|
|
|
|
|
|
2010
|
2009
|
|
|
MYR
|
MYR
|
|
TURNOVER
|
21,325,559
|
0
|
|
|
=========
|
=========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
<239,537>
|
<3,366>
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
<239,537>
|
<3,366>
|
|
Taxation
|
<78,741>
|
-
|
|
PROFIT/(LOSS) AFTER TAXATION
|
-------------
<318,278>
|
-------------
<3,366>
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
-------------
<318,278>
|
-------------
<3,366>
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
-------------
<318,278>
|
-------------
<3,366>
|
|
As previous reported
|
<3,366>
|
-
|
|
|
|
|
|
As restated
|
-------------
<3,366>
|
-------------
-
|
|
|
-------------
|
-------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
<321,644>
|
<3,366>
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
-------------
<321,644>
==========
|
-------------
<3,366>
==========
|
|
RETAINED BY: The Company
|
<321,644>
|
<3,366>
|
|
|
|
|
|
|
|
|
|
|
-------------
<321,644>
==========
|
-------------
<3,366>
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase
|
1,885
|
-
|
|
|
--------------
1,885
===========
|
--------------
-
===========
|
|
|
|
|
|
|
|
|
BALANCE SHEET
|
SIMS COPPER
SDN BHD
|
|
As At
31-March-2010
|
|
|
|
|
|
|
2010
|
2009
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
5,226,566
|
-
|
|
|
|
|
|
|
INTANGIBLE ASSETS
|
|
|
|
|
Deferred/Expenditure carried forward
|
284,888
|
120,513
|
|
TOTAL INTANGIBLE ASSETS
|
------------
284,888
|
------------
120,513
|
|
TOTAL LONG TERM ASSETS
|
------------
5,511,454
|
------------
120,513
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
1,069,776
|
-
|
|
|
|
|
|
|
|
Trade debtors
|
3,469,529
|
-
|
|
|
Other debtors, deposits & prepayments
|
152,098
|
9,500
|
|
|
Amount due from related companies
|
-
|
342,818
|
|
|
|
|
|
|
|
Amount due from director
|
-
|
11,450
|
|
|
Cash & bank balances
|
-
|
13,253
|
|
TOTAL CURRENT ASSETS
|
------------
4,691,403
|
------------
377,021
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
3,835,566
|
-
|
|
|
Other creditors & accruals
|
673,365
|
900
|
|
|
Hire purchase & lease creditors
|
29,645
|
-
|
|
|
Bank overdraft
|
48,106
|
-
|
|
|
Amounts owing to holding companies
|
532,900
|
-
|
|
|
|
|
|
|
|
Amounts owing to related companies
|
214,137
|
-
|
|
|
|
|
|
|
|
Amounts owing to director
|
72,549
|
-
|
|
TOTAL CURRENT LIABILITIES
|
------------
5,406,268
|
------------
900
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<714,865>
|
------------
376,121
|
|
TOTAL NET ASSETS
|
------------
4,796,589
==========
|
------------
496,634
==========
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
5,000,000
|
500,000
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
5,000,000
------------
|
500,000
------------
|
|
RESERVES
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
<321,644>
|
<3,366>
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
<321,644>
|
------------
<3,366>
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
4,678,356
|
------------
496,634
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase creditors
|
39,492
|
-
|
|
|
Deferred taxation
|
78,741
|
-
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
118,233
|
------------
-
|
|
|
------------
|
------------
|
|
|
4,796,589
|
496,634
|
|
|
==========
|
==========
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
SIMS COPPER
SDN BHD
|
|
As At
31-March-2010
|
|
|
|
|
|
|
2010
|
2009
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
0
|
13,253
|
|
|
Net Liquid Funds
|
<48,106>
|
13,253
|
|
|
Net Liquid Assets
|
<1,784,641>
|
376,121
|
|
|
Net Current Assets/(Liabilities)
|
<714,865>
|
376,121
|
|
|
Net Tangible Assets
|
4,511,701
|
376,121
|
|
|
Net Monetary Assets
|
<1,902,874>
|
376,121
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
117,243
|
0
|
|
|
Total Liabilities
|
5,524,501
|
900
|
|
|
Total Assets
|
10,202,857
|
497,534
|
|
|
Net Assets
|
4,796,589
|
496,634
|
|
|
Net Assets Backing
|
4,678,356
|
496,634
|
|
|
Shareholders" Funds
|
4,678,356
|
496,634
|
|
|
Total Share Capital
|
5,000,000
|
500,000
|
|
|
Total Reserves
|
<321,644>
|
<3,366>
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0
|
14.73
|
|
|
Liquid Ratio
|
0.67
|
418.91
|
|
|
Current Ratio
|
0.87
|
418.91
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
18
|
0
|
|
|
Debtors Ratio
|
59
|
0
|
|
|
Creditors Ratio
|
66
|
0
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
0.03
|
0
|
|
|
Liabilities Ratio
|
1.18
|
0
|
|
|
Times Interest Earned Ratio
|
<126.08>
|
0
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
<1.12>
|
0
|
|
|
Net Profit Margin
|
<1.49>
|
0
|
|
|
Return On Net Assets
|
<4.95>
|
<0.68>
|
|
|
Return On Capital Employed
|
<5.18>
|
<0.89>
|
|
|
Return On Shareholders' Funds/Equity
|
<6.80>
|
<0.68>
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
|
|
|
|
|
|
|
