MIRA INFORM REPORT

 

 

Report Date :           

03.06.2011

 

IDENTIFICATION DETAILS

 

Name :

O.Y.L. MANUFACTURING COMPANY SDN BHD

 

 

Formerly Known As :

SEMICON ADVANCED TECHNOLOGY (MALAYSIA) SDN BHD

 

 

Registered Office :

Jalan Pengapit 15/19, 40702 Shah Alam, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2009 (Consolidated)

 

 

Date of Incorporation :

04/01/1984

 

 

Com. Reg. No.:

112531-W

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacture of Single And Multiple Split Air-Conditioners & Packaged And Plant Air-Conditioning Equipment

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD31,650,680.00

 

 

Status :

Good

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 Bottom of Form

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

112531-W

COMPANY NAME

:

O.Y.L. MANUFACTURING COMPANY SDN BHD

FORMER NAME

:

SEMICON ADVANCED TECHNOLOGY (MALAYSIA) SDN BHD (21/12/1991)
NEW AVENUES SDN BHD (25/02/1984)

INCORPORATION DATE

:

04/01/1984

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

JALAN PENGAPIT 15/19, 40702 SHAH ALAM, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 60334, PERSIARAN BUKIT RAHMAN PUTRA 3, TAMAN PERINDUSTRIAN BUKIT RAHMAN PUTRA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

TEL.NO.

:

03-61458600

FAX.NO.

:

03-61412286

WEB SITE

:

www.oyl.com.my

CONTACT PERSON

:

KATSUHIKO TAKAGI ( PRESIDENT )

INDUSTRY CODE

:

29191

PRINCIPAL ACTIVITY

:

MANUFACTURE OF SINGLE AND MULTIPLE SPLIT AIR-CONDITIONERS & PACKAGED AND PLANT AIR-CONDITIONING EQUIPMENT

AUTHORISED CAPITAL

:

MYR 300,000,000.00 DIVIDED INTO
ORDINARY SHARE 299,998,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 2,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 276,254,567.00 DIVIDED INTO
ORDINARY SHARES 2 CASH AND 276,254,565 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 2,455,567,366 [2009]

NET WORTH

:

MYR 1,320,826,017 [2009]

M1000 OVERALL RANKING

:

358[2008]

M1000 INDUSTRY RANKING

:

21[2008]

STAFF STRENGTH

:

1,400 [2011]

BANKER (S)

 

HONG LEONG BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

GOOD

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

PROPOSED CREDIT LIMIT

:

USD31,650,680.00

 

 

HISTORY / BACKGROUND


The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) manufacture of single and multiple split air-conditioners & packaged and plant air-conditioning equipment.

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).

According to the Malaysia 1000 publication, the SC's ranking are as follows:

 

 

 

 

YEAR

2008

2005

2004

 

OVERALL RANKING

358

338

301

 

INDUSTRY RANKING

21

22

23

 


The immediate and ultimate holding company of the SC is DAIKIN INDUSTRIES LTD, a company incorporated in JAPAN.
The major shareholder(s) of the SC are shown as follows :

 

Name

Address

IC/PP/Loc No

Shareholding

DAIKIN INDUSTRIES LTD

UMEDA CENTER BUILDING, 4-12 NAKAZAKI-NISHI, 2-CHOME, KITA-KU, 530-8323, OSAKA, JAPAN.

 

276,254,567.00

 

 

 

---------------

 

 

 

276,254,567.00

 

 

 

============

+ Also Director

 

The SC interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Company

(%)

As At

132332

O.Y.L. STEEL CENTRE SDN BHD

75

31/12/2009

 

 

 

 

 

168496

YORK (MALAYSIA) SALES & SERVICE SDN BHD

70

31/12/2009

 

 

 

 

 

 

31113

O.Y.L.-CONDAIR INDUSTRIES SDN BHD

51

31/12/2009

 

 

 

 

 

 

129688

ACSON MALAYSIA SALES & SERVICE SDN BHD

100

31/12/2009

 

 

 

 

 

 

137508

AMERICAN AIR FILTER MANUFACTURING SDN BHD

100

31/12/2009

 

 

 

 

 

 

109719

GROUP ASSOCIATED (C & L) SDN BHD

100

31/12/2009

 

 

 

 

 

 

34543

J & E HALL REFRIGERATION SDN BHD

100

31/12/2009

 

 

 

 

 

 

222359

O.Y.L. RESEARCH & DEVELOPMENT CENTRE SDN BHD

100

31/12/2009

 

 

 

 

 

 

209388

O.Y.L. TECHNOLOGY SDN BHD

100

31/12/2009

 

 

 

 

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

KATSUHIKO TAKAGI

Address

:

504, 12-15, YAMATE-CHO, ASHIYA-SHI, 659-0096, HYOGO, JAPAN.

IC / PP No

:

TH5032364

 

 

 

Date of Birth

:

14/01/1943

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

08/08/2007

 

DIRECTOR 2

 

Name Of Subject

:

YOSHIHIRO MINENO

Address

:

3-4-1-803, FURUEDAI, SUITA-SHI, 565-0874, OSAKA, JAPAN.

IC / PP No

:

TZ0449052

 

 

 

Date of Birth

:

14/05/1953

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

10/03/2008

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR.BENNY LIOW WOON KHIN

Address

:

10 LAGENDA PUTERI 3, DAMANSARA LAGENDA, 46410 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

5197971

New IC No

:

570318-02-5879

Date of Birth

:

18/03/1957

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

22/06/2009

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

HITOSHI JINNO

Address

:

K8-16, DOCESTHER SERVICE APARTMENT, 60 JALAN HARTAMAS 1, SRI HARTAMAS, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

TZ0664553

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

15/10/2010



MANAGEMENT

 

 

 

1)

Name of Subject

:

KATSUHIKO TAKAGI

 

Position

:

PRESIDENT

 

 

 

 

 

2)

Name of Subject

:

RAGHAVAN A/L MUNIANDY

 

Position

:

FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

C K ANG

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

4)

Name of Subject

:

JOSEPHINE

 

Position

:

EXECUTIVE

 

 

 

 

 

5)

Name of Subject

:

TAN YONG CHEEM

 

Position

:

OPERATIONS MANAGER

 

 

 

 

 

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE

Auditor' Address

:

UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA UPTOWN, LEVEL 19, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. NG HENG KEE

 

IC / PP No

:

A0960438

 

New IC No

:

680205-10-6266

 

Address

:

87, JALAN SJ 32, TAMAN SELAYANG JAYA, 68100 BATU CAVES, SELANGOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HONG LEONG BANK 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

:

40%

Overseas

:

YES

Percentage

:

60%

Import Countries

:

JAPAN,CHINA,EUROPE



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

Percentage

:

40%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

60%

Export Market

:

UNITED STATES, AUSTRALIA, SINGAPORE, MIDDLE EAST, SOUTHEAST ASIA, CANADA, UNITED KINGDOM, EUROPE

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

LETTER OF CREDIT (LC),TELEGRAPHIC TRANSFER (TT),CHEQUES

Type of Customer

:

AGENTS,DISTRIBUTORS

No of Customer

:

60

CUSTOMER(S)

:

1) ACSON MALAYSIA SALES & SERVICE SDN BHD

 

OPERATIONS

 

Products manufactured

:

AIR CONDITIONING SYSTEM

 

 

 

Brand Name

:

ACSON, MC QUAY,YORK

 

 

 

 

Award

:

1 ) SPECIAL AWARD FOR INNOVATIVE PRODUCT BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2006
2 ) MS ISO 9002 Year :0

 

 

 

 

 

Competitor(s)

:

DUNHAM-BUSH HOLDING BHD
LINEAR CORPORATION 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 ENTERPRISEMALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

 

 

 

Ownership of premises

:

OWNED

 

Shifts

:

3

 

 

 

 

 

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

1,400

1,400

1,350

1,500

1,474

1,140

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacture of single and multiple split air-conditioners & packaged and plant air-conditioning equipment.

The SC is under the OYL Industries Berhad which is engaged in the business of heating, ventilation, air-conditioning, refrigeration and air filtration.

The Group owns several major International brand names including McQuay ( heating, ventilation and air-conditioning), American Air Filters (air-filtration, machine intake, air pollution control), J&E Hall (refrigeration) and Acson (our home-grown air-conditioning brand).

The SC produces a wide range of products which includes:

1) Wall mounted/ Exposed - 6 models

2) Ceiling convertible - has three models which are A, D & C series

3) Ceiling cassette

4) Ceiling concealed - has two models namely CC & CX

5) Static blower

6) Multi split condenser

The SC produces air-conditioners in various type of sizes and models.

We were informed that the SC's air-conditioners mainly for homes, offices, factories, hospitals and others.

The SC is equipped with both automated and semi-automated machineries at the production site.


PROJECTS


No projects found in our databank

RECENT DEVELOPMENT


March 19, 2008

Japan's biggest air-conditioner manufacturer Daikin Industries Ltd plans to use OYL Manufacturing Co Sdn Bhd (OYLM) as a major manufacturing hub for its global business. OYL group chief executive officer Katsuhiko Takagi said under Daikin's Fusion 10 business plan, OYLM was expected to achieve RM1.4bil in sales by 2010. OYLM will benefit from increased production capacity and transfer of technology from Daikin and we hope OYLM will continue to grow and contribute significantly to the Malaysian economy, he said at the opening of the OYLM factory yesterday. Daikin acquired OYL Industries Bhd for RM7.6bil in 2006. The acquisition was aimed at increasing Daikin's global presence and positioning it to grow globally to become the world's number one air-conditioner brand. OYL is the main producer of York and Acson air-conditioners. The company currently has 3,000 employees and is one of the leading manufacturers of heating, ventilation and air-conditioning equipment in Malaysia.

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0361458600

Current Telephone Number

:

03-61458600

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 60334, PERSIARAN BUKIT RAHMAN PUTRA 3, TAMAN PERINDUSTRIAN BUKIT RAHMAN PUTRA, 47000, SUNGAI BULOH, SELANGOR.

Current Address

:

LOT 60334, PERSIARAN BUKIT RAHMAN PUTRA 3, TAMAN PERINDUSTRIAN BUKIT RAHMAN PUTRA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

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

:

Erratic

[

2007 - 2009

]

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2009

]

Return on Shareholder Funds

:

Acceptable

[

14.59%

]

Return on Net Assets

:

Acceptable

[

17.89%

]


The fluctuating turnover reflects the fierce competition among the existing and new market players. 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

:

Acceptable

[

59 Days

]

Debtors Ratio

:

Acceptable

[

56 Days

]

Creditors Ratio

:

Favourable

[

54 Days

]


The SC kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. 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 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

[

1.45 Times

]

Current Ratio

:

Unfavourable

[

1.94 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

[

42.32 Times

]

Gearing Ratio

:

Favourable

[

0.06 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:

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. 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

 

 

Established in 1984, the SC is a private limited company with core business in the manufacture of single and multiple split air-conditioners and packaged and plant air-conditioning equipment. Its long establishment in the market has allowed the SC to build up a good reputation and gain higher market share against its rivals. With a large issued and paid up capital of RM276.25 million and strong backing from its well-established holding company, the SC enjoys timely financial assistance should the needs arise.


Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Moreover, the SC has been accredited awards in the past few years and we believe that these awards have enabled the SC to compete better other rivals in the same field. Being a large entity, the SC has a steady workforce of 1,400 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright.


During the financial year ended 2009, the Group posted a turnover of RM2,455.56 million which led to pre-tax profit of RM236.29 million. Return on shareholders' funds of the Group was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Group managed to maintain an adequate liquidity level, indicating that the Group has the ability to meet its financial obligations. Besides, being a lowly geared company, the Group is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. The Group's overall financial performance is strong.


The SC might be exposed to the forex risk as some of its raw materials are sourced from overseas suppliers. With its long presence in the market, it should have developed a strong supplier. Thus, it eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials.


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. Moreover, the SC is clear of any litigation.


The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Despite the challenging market condition, the SC has competitive edge against other players in the same field due to its long establishment and strong capital background.


Based on the above condition, we recommend credit be granted to the SC promptly.

 

 

CONSOLIDATED PROFIT AND LOSS ACCOUNT

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.

O.Y.L. MANUFACTURING COMPANY SDN BHD

For The Year Ended 31-December-2009

 

 

 

18 month

 

2009

2008

2007

 

MYR

MYR

MYR

 

 

 

 

 

 

 

 

TURNOVER

2,455,567,366

2,826,598,101

1,799,028,825

 

=========

=========

=========

PROFIT/(LOSS) FROM OPERATIONS

236,291,913

275,927,867

197,809,377

 

 

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAXATION

236,291,913

275,927,867

197,809,377

Taxation

<37,667,553>

<40,148,514>

<6,871,965>


PROFIT/(LOSS) AFTER TAXATION

-------------
198,624,360

-------------
235,779,353

-------------
190,937,412

Minority interests

<5,884,002>

<26,445,903>

<9,362,086>

 

 

 

 


PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

-------------
192,740,358

-------------
209,333,450

-------------
181,575,326

 

 

 

 


PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD

-------------
192,740,358

-------------
209,333,450

-------------
181,575,326

As previous reported

812,019,127

305,949,988

155,200,076

 

 

 

 


As restated

-------------
812,019,127

-------------
305,949,988

-------------
155,200,076

 

-------------

-------------

-------------

PROFIT AVAILABLE FOR APPROPRIATIONS

1,004,759,485

515,283,438

336,775,402

 

 

 

 

TRANSFER TO RESERVES - General

<10,438,677>

296,735,689

<3,111,281>

 

 

 

 

DIVIDENDS - Ordinary (paid & proposed)

-

-

<27,714,133>

 

 

 

 

 

 

 

 


RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD

-------------
994,320,808
==========

-------------
812,019,127
==========

-------------
305,949,988
==========

RETAINED BY: The Company

994,320,808

812,019,127

305,949,988

 

 

 

 

 

 

 

 

 

-------------
994,320,808
==========

-------------
812,019,127
==========

-------------
305,949,988
==========

INTEREST EXPENSE (as per notes to PL)

 

 

 

 

 

 

 

 

 

 

 

Other interest expenses

5,717,903

7,693,500

3,375,386

 

--------------
5,717,903
===========

--------------
7,693,500
===========

--------------
3,375,386
===========

 

 

CONSOLIDATED BALANCE SHEET

 

O.Y.L. MANUFACTURING COMPANY SDN BHD

As At 31-December-2009



 

 

18 month

 

2009

2008

2007

 

MYR

MYR

MYR

 

 

 

 

 

 

 

 

 

 

ASSET EMPLOYED:

 

 

 

FIXED ASSETS

458,349,617

478,286,249

426,097,526

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

 

 

 

 

Associated companies

-

-

3,867

 

 

 

 

 

 

 

 

 

 

 

Investments

55,000

702,500

702,500

 

 

 

 

 

 

Deffered assets

25,653,840

19,679,181

14,558,375

 

Prepaid lease payments

31,170,078

32,021,645

31,260,935

 

Other long-term assets

-

164,464

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

------------
56,878,918

------------
52,567,790

------------
46,525,677

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill on consolidation

72,690,936

72,958,692

-

 

 

 

 

 

 

 

 

 

 

TOTAL INTANGIBLE ASSETS

------------
72,690,936

------------
72,958,692

------------
-

TOTAL LONG TERM ASSETS

------------
587,919,471

------------
603,812,731

------------
472,623,203

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Stocks

398,791,164

522,131,063

451,780,004

 

 

 

 

 

 

Trade debtors

378,963,213

425,504,714

405,081,453

 

Other debtors, deposits & prepayments

37,569,262

37,117,336

41,804,345

 

Short term deposits

59,132,392

9,242,976

1,949,807

 

 

 

 

 

 

Amount due from related companies

87,198,126

84,209,329

85,195,074

 

 

 

 

 

 

 

 

 

 

 

Cash & bank balances

613,762,096

337,839,183

321,216,793

 

 

 

 

 

TOTAL CURRENT ASSETS


------------
1,575,416,253


------------
1,416,044,601


------------
1,307,027,476

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

362,872,379

302,083,843

381,298,998

 

Other creditors & accruals

267,870,850

229,556,999

174,838,717

 

 

 

 

 

 

 

 

 

 

 

Short term borrowings/Term loans

69,526,832

118,306,793

20,717,270

 

Other borrowings

4,935,870

48,666,892

28,228,889

 

 

 

 

 

 

Bill & acceptances payable

13,549,000

33,147,000

38,004,013

 

Amounts owing to related companies

26,515,370

27,903,912

39,235,321

 

 

 

 

 

 

 

 

 

 

 

Provision for taxation

16,944,188

20,097,714

27,790,739

 

 

 

 

 

 

Provision for warranties

48,337,831

43,379,641

40,829,019

 

 

 

 

 

TOTAL CURRENT LIABILITIES

------------
810,552,320

------------
823,142,794

------------
750,942,966

NET CURRENT ASSETS/(LIABILITIES)

------------
764,863,933

------------
592,901,807

------------
556,084,510

TOTAL NET ASSETS

------------
1,352,783,404
==========

------------
1,196,714,538
==========

------------
1,028,707,713
==========

 

 

 

 

 

FINANCED BY:

 

 

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

276,254,561

276,254,561

276,254,561

 

 

 

 

 

TOTAL SHARE CAPITAL


276,254,561
------------


276,254,561
------------


276,254,561
------------

RESERVES

 

 

 

 

 

 

 

 

 

Capital reserve

1,600

1,600

1,600

 

 

 

 

 

 

General reserve

17,902,774

10,332,385

3,080,826

 

 

 

 

 

 

Retain profit/(Accumulated loss) carried forward

994,320,808

812,019,127

305,949,988

 

Reserve on consolidation

-

-

303,987,248

 

Translation reserve

32,346,274

41,061,237

<35,973>

 

 

 

 

 


TOTAL RESERVES

------------
1,044,571,456

------------
863,414,349

------------
612,983,689


SHAREHOLDERS' FUNDS/EQUITY


------------
1,320,826,017


------------
1,139,668,910


------------
889,238,250

MINORITY INTEREST

------------
22,664,247

------------
22,587,701

------------
59,264,137

 

 

 

 

 


LONG TERM & DEFERRED LIABILITIES & PROVISIONS

 

 

 

 

 

 

 

 

 

Long term loans

-

23,788,833

72,280,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred taxation

813,060

3,967,612

1,271,532

 

 

 

 

 

 

Retirement benefits provision

8,480,080

6,701,482

6,653,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS

------------
9,293,140

------------
34,457,927

------------
80,205,326

 

------------

------------

------------

 

1,352,783,404

1,196,714,538

1,028,707,713

 

==========

==========

==========

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED FINANCIAL RATIOS

 

O.Y.L. MANUFACTURING COMPANY SDN BHD

As At 31-December-2009

 

 

 

18 month

 

2009

2008

2007

 

MYR

MYR

MYR

 

 

 

 

 

 

 

 

 

 

TYPES OF FUNDS

 

 

 

 

Cash

672,894,488

347,082,159

323,166,600

 

Net Liquid Funds

603,367,656

228,775,366

302,449,330

 

Net Liquid Assets

366,072,769

70,770,744

104,304,506

 

Net Current Assets/(Liabilities)

764,863,933

592,901,807

556,084,510

 

Net Tangible Assets

1,280,092,468

1,123,755,846

1,028,707,713

 

Net Monetary Assets

356,779,629

36,312,817

24,099,180

 

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

74,462,702

190,762,518

121,226,859

 

Total Liabilities

819,845,460

857,600,721

831,148,292

 

Total Assets

2,163,335,724

2,019,857,332

1,779,650,679

 

Net Assets

1,352,783,404

1,196,714,538

1,028,707,713

 

Net Assets Backing

1,343,490,264

1,162,256,611

948,502,387

 

Shareholders" Funds

1,320,826,017

1,139,668,910

889,238,250

 

Total Share Capital

276,254,561

276,254,561

276,254,561

 

Total Reserves

1,044,571,456

863,414,349

612,983,689

 

 

 

 

 

LIQUIDITY(Times)

 

 

 

 

Cash Ratio

0.83

0.42

0.43

 

Liquid Ratio

1.45

1.09

1.14

 

Current Ratio

1.94

1.72

1.74

 

 

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

59

67

92

 

Debtors Ratio

56

55

82

 

Creditors Ratio

54

39

77

 

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.06

0.17

0.14

 

Liabilities Ratio

0.62

0.75

0.93

 

Times Interest Earned Ratio

42.32

36.87

59.60

 

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

9.62

9.76

11.00

 

Net Profit Margin

7.85

7.41

10.09

 

Return On Net Assets

17.89

23.70

19.56

 

Return On Capital Employed

17.93

22.83

19.17

 

Return On Shareholders' Funds/Equity

14.59

18.37

20.42

 

Dividend Pay Out Ratio (Times)

0

0

0.15

 

 

 

 

 

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0.00

0.00

0.00

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.94

UK Pound

1

Rs.73.46

Euro

1

Rs.64.58

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.