|
|
REGISTRATION NO.
|
:
|
203754-U
|
|
COMPANY NAME
|
:
|
MFE FORMWORK TECHNOLOGY SDN BHD
|
|
FORMER NAME
|
:
|
MIVAN
FAR EAST SDN BHD (03/12/2007)
SPIRE FAR EAST SDN BHD (12/03/1992)
|
|
INCORPORATION DATE
|
:
|
05/09/1990
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
LOT 824, KOMPLEK SUN, JALAN BUKIT BINTANG, 8TH FLOOR,
55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
GLOMAC BUSINESS CENTRE, BLOCK B, 4TH FLOOR, UNIT 501, 10
JALAN SS6/1, 47301 PETALING JAYA, SELANGOR,
MALAYSIA.
|
|
TEL.NO.
|
:
|
03-78032806
|
|
FAX.NO.
|
:
|
03-78033437
|
|
WEB SITE
|
:
|
www.mfeformwork.com
|
|
CONTACT PERSON
|
:
|
ELAINE LAI ( HUMAN RESOURCE MANAGER )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
28110 74219
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURING OF FORMWORK SYSTEM FOR CIVIL ENGINEERING
CONSTRUCTION
|
|
AUTHORISED CAPITAL
|
:
|
MYR
11,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 1,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR
1,000,000.00 DIVIDED INTO
ORDINARY SHARES 1,000,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 135,344,172 [2009]
|
|
NET WORTH
|
:
|
MYR 16,493,811 [2009]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
650 [2011]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
FAIR
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD1,041,066
|
|
|
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 of formwork
system for civil engineering construction.
The SC is not listed on Bursa Malaysia
(Malaysia Stock Exchange).
The immediate holding company of the SC is MFE SYSTEM FORMWORK TECHNOLOGY
LIMITED, a company incorporated in UNITED KINGDOM.
The ultimate holding company of the SC is MFE HOLDINGS (MAURITIUS) LIMITED, a
company incorporated in MAURITIUS.
The major shareholder(s) of
the SC are shown as follows :
Name
|
Address
|
IC/PP/Loc
No
|
Shareholding
|
|
MFE
SYSTEM FORMWORK TECHNOLOGY LTD
|
NEWPARK, GREYSTONE
ROAD, ANTRIM, NORTHERN IRELAND, BT41 2QN, UNITED KINGDOM.
|
|
1,000,000.00
|
|
|
|
|
---------------
|
|
|
|
|
1,000,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. STEVEN MARK ENDERBY
|
|
Address
|
:
|
E-2, PUSHPANJALI, FARMS
VILLAGE, BIJWASAN NEW
DELHI 110 061, INDIA.
|
|
IC / PP No
|
:
|
P761082192
|
|
|
|
|
|
Date of Birth
|
:
|
22/07/1962
|
|
|
|
|
|
Nationality
|
:
|
BRITISH
|
|
Date of Appointment
|
:
|
20/07/2007
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. PATRICK GERARD GORHAM
|
|
Address
|
:
|
B27-2, KIARAMAS SUTERA CONDOMINIUM, 7, JALAN DESA KIARA,
BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
LT0009566
|
|
|
|
|
|
Date of Birth
|
:
|
17/07/1977
|
|
|
|
|
|
Nationality
|
:
|
IRISH
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. LEE CHING
|
|
Address
|
:
|
3-14-8, THE RESIDENCE, 3, JALAN WAN KADIR 5, TAMAN TUN
DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
A2483257
|
|
New IC No
|
:
|
730502-10-5553
|
|
Date of Birth
|
:
|
02/05/1973
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
21/05/2009
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
JAMES ROBINSON
|
|
Address
|
:
|
20 JALAN PJU 1A/25A, ARA DAMANSARA, 47301 PETALING JAYA,
SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
P761246966
|
|
|
|
|
|
Date of Birth
|
:
|
29/12/1953
|
|
|
|
|
|
Nationality
|
:
|
BRITISH
|
|
Date of Appointment
|
:
|
28/09/2009
|
|
|
|
|
DIRECTOR 5
|
Name Of Subject
|
:
|
GARY JAMES ADDISON
|
|
Address
|
:
|
3, JALAN RUMBIA, 13-03 THE IMPERIAL, 239617, SINGAPORE.
|
|
IC / PP No
|
:
|
P099124122
|
|
|
|
|
|
Date of Birth
|
:
|
01/01/1969
|
|
|
|
|
|
Nationality
|
:
|
BRITISH
|
|
|
|
|
DIRECTOR 6
|
Name Of Subject
|
:
|
MR. OH TEIK TATT
|
|
Address
|
:
|
11, PINGGIRAN TUNKU, 50480 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
IC / PP No
|
:
|
2193684
|
|
New IC No
|
:
|
480201-07-5013
|
|
Date of Birth
|
:
|
01/02/1948
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
|
|
|
|
1)
|
Name of Subject
|
:
|
ELAINE LAI
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
PATRICK JERARD GORHAM
|
|
|
Position
|
:
|
FACTORY MANAGER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
JAMES TEO
|
|
|
Position
|
:
|
OPERATIONS MANAGER
|
|
|
|
|
|
|
Auditor
|
:
|
BDO BINDER
|
|
Auditor' Address
|
:
|
MENARA UNI ASIA, 1008 JALAN SULTAN ISMAIL, 12TH FLOOR,
50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
1)
|
Company Secretary
|
:
|
MR. TAN BENG HOCK
|
|
|
IC / PP No
|
:
|
4086144
|
|
|
New IC No
|
:
|
361028-07-5295
|
|
|
Address
|
:
|
162, JALAN SS 2/4, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. LAI SOOK HEAN
|
|
|
IC / PP No
|
:
|
A1854741
|
|
|
New IC No
|
:
|
710503-08-6122
|
|
|
Address
|
:
|
164, JELAPANG NEW VILLAGE, 30020 IPOH,
PERAK, MALAYSIA.
|
|
|
|
|
|
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 1
|
Date of Creation
|
:
|
01/11/2007
|
|
Description Of Charge
|
:
|
DEBENTURE
|
|
Amount Secured
|
:
|
RM5,000,000.00
|
|
Description Of Property Affected
|
:
|
1ST FIXED CHARGE AND 1ST FLOATING CHARGE OVER THE COMPANY
FIXED ASSETS
|
|
Name & Address Of Chargee
|
:
|
ABN
AMRO BANK N V
MAIN OFFICE TOWER, FINANCIAL PARK LABUAN, JALAN MERDEKA, LEVEL 9A, 87000
LABUAN, SABAH, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 07/11/2007
|
|
Registered and Numbered 7 In The Register of Charges
|
* 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.
|
SOURCES OF RAW MATERIALS:
|
|
Local
|
:
|
YES
|
|
Overseas
|
:
|
YES
|
|
|
|
|
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
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
X
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
HONG
KONG, INDIA,
MIDDLE EAST, CHINA
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC),CHEQUES
|
|
Type of Customer
|
:
|
CONSTRUCTION INDUSTRY
|
OPERATIONS
|
|
Products manufactured
|
:
|
|
FORMWORK SYSTEM FOR CONSTRUCTION
|
|
|
|
|
|
|
Competitor(s)
|
:
|
CB
INTERNATIONAL ENGINEERING SDN BHD
MELEWAR STEEL TUBE SDN BHD
SEKSUN TECHNOLOGY (JOHOR) SDN BHD
SMPC CORPORATION BHD
TEPAT TEKNIK SDN BHD
|
|
|
|
|
|
Ownership of premises
|
:
|
OWNED
|
|
Factory / Premises
|
:
|
AL
121, BATU 13, JALAN SUBANG, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.
Tel No: 03-61560901
Fax No: 03-61560952
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
2008
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
COMPANY
|
650
|
625
|
615
|
600
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of formwork
system for civil engineering construction.
The SC's products and services are includes components, design,
manufacturing, and technical support services.
It offers an aluminum formwork construction system for forming cast in place
reinforced concrete building structures, as well as casting walls, floor
slabs, columns, beams, balconies, and door and window openings.
The SC's aluminum formwork construction system is also used in
straightforward walls, slab construction panels, bay windows, stairs, and A/C
hoods.
The SC utilizes advanced machineries to ensure production of high quality
products.
Besides that the SC also has a warehouse to keep stocks and materials.
No projects found in our databank
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
Latest
fresh investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
03-78032806
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
GLOMAC BUSINESS CENTRE, BLOCK B, UNIT 501, 4TH FLOOR, 10
JALAN SS6/1, 47301, PETALING JAYA, SELANGOR.
|
|
Current Address
|
:
|
GLOMAC BUSINESS CENTRE, BLOCK B, 4TH FLOOR, UNIT 501, 10
JALAN SS6/1, 47301 PETALING JAYA, SELANGOR,
MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the staff from the Admin staff. She
provided some information on the SC.
Profitability:
|
Turnover
|
:
|
Decreased
|
[
|
55.24%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
185.27%
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
<181.37%>
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
<169.76%>
|
]
|
The shrinking turnover could be the result of more entrants into the market
which eroded the SC's market share. The SC incurred losses during the year
due to the inefficient control of its operating costs. 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
|
[
|
52
Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
69
Days
|
]
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
86
Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in stocks. The high debtors' ratio could indicate
that the SC was weak in its credit control. However, the SC could also giving
longer credit periods to its customers in order to boost its sales or to
capture / retain its market share. The 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
|
:
|
Acceptable
|
[
|
0.86
Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.26
Times
|
]
|
The SC's liquid ratio was slightly low. This could indicate that the SC's
working capital was slightly deficient. The SC will have to improve its
liquidity position either by obtaining short term financing or increase its
paid up capital so that it can meet all its short term obligations as and
when they fall due.
Solvency
|
Interest Cover
|
:
|
Unfavourable
|
[
|
<86.34
Times>
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.58
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
SC's losses could be attributed to the lower turnover which in turn could be
the result of unfavourable market conditions. The SC's liquidity was at an
acceptable range. If the SC is able to obtain further short term financing,
it should be able to meet all its short term obligations. 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
: LIMITED
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)
|
|
|
|
|
|
|
|
|
MSIC CODE
|
|
28110 : Manufacture of structural metal products
|
|
74219 : Other architectural and engineering activities
and related technical consultancy service n.e.c.
|
|
|
|
|
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
|
|
Incorporated in 1990 as a private limited company, the SC is principally
engaged in the manufacturing of formwork system for civil engineering
construction. Having been in the industry for over 20 years, the SC should
have received strong support from its regular customers. With a issued and
paid up capital of RM1 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 such as Hong Kong, India, China
as well as Middle East region. With the
contribution of both local and overseas customers, the SC is likely to be
exposed to lower commercial risk. Being a large entity, the SC has a steady
workforce of 650 personnel to support its business operations. More efforts
are expected from the management in order to sustain its growth momentum.
|
|
During the financial year ended 2009, turnover of the SC has dropped by
55.24% from RM302.36 million to RM135.34 million which led to lower pre-tax
profit of RM28.97 million. 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. Besides, the SC
possesses a weak liquidity position and we believe that the SC may face
some difficulties in meeting its short term financial obligations.
Fortunately, 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. Given a positive net worth standing at RM16.49 million,
the SC should be able to maintain its business in the near terms.
|
|
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 the historical financial data, we concluded that the SC's payment
habit is fair. The unfavourable creditors' ratio clearly implied a weak
credit control.
|
|
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's business opportunity in the future should be bright.
|
|
Based on the above condition, we recommend a moderate amount of credit be
granted to the SC normally.
|
|
THE
FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA
ACCOUNTING STANDARD.
|
|
MFE
FORMWORK TECHNOLOGY SDN BHD
|
|
For
The Year Ended 31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
135,344,172
|
302,366,945
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
<28,977,393>
|
33,983,537
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
<28,977,393>
|
33,983,537
|
|
Taxation
|
<937,807>
|
<9,707,268>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
<29,915,200>
|
------------
24,276,269
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
<29,915,200>
|
------------
24,276,269
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
<29,915,200>
|
------------
24,276,269
|
|
As previous reported
|
60,440,938
|
51,265,339
|
|
Prior year adjustment
|
-
|
<9,203,743>
|
|
As restated
|
------------
60,440,938
|
------------
42,061,596
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
30,525,738
|
66,337,865
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
<16,031,927>
|
<5,896,927>
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
14,493,811
==========
|
------------
60,440,938
==========
|
|
RETAINED BY: The Company
|
14,493,811
|
60,440,938
|
|
|
------------
14,493,811
==========
|
------------
60,440,938
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
|
|
|
Bank overdraft
|
232,601
|
11,041
|
|
|
|
|
|
Hire purchase
|
14,408
|
16,362
|
|
Other interest expenses
|
84,765
|
13,037
|
|
|
------------
331,774
==========
|
------------
40,440
==========
|
|
|
|
|
|
MFE
FORMWORK TECHNOLOGY SDN BHD
|
|
As
At 31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
4,183,750
|
4,603,671
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
Investments
|
7,670
|
7,670
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
7,670
|
------------
7,670
|
|
TOTAL LONG TERM ASSETS
|
------------
4,191,420
|
------------
4,611,341
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
19,432,113
|
38,173,946
|
|
|
|
|
|
|
|
Trade debtors
|
25,514,198
|
54,231,810
|
|
|
Other debtors, deposits & prepayments
|
1,444,876
|
4,292,135
|
|
|
Amount due from related companies
|
25,665
|
20,773
|
|
|
Cash & bank balances
|
13,013,323
|
18,797,095
|
|
|
|
|
|
|
|
Tax recoverable
|
2,792,223
|
1,147,797
|
|
TOTAL CURRENT ASSETS
|
------------
62,222,398
|
------------
116,663,556
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
31,774,459
|
50,245,255
|
|
|
Other creditors & accruals
|
7,727,650
|
7,220,688
|
|
|
Hire purchase & lease creditors
|
69,452
|
163,206
|
|
|
Bank overdraft
|
9,491,832
|
-
|
|
|
Amounts owing to holding companies
|
61,541
|
46,451
|
|
|
|
|
|
|
|
Amount owing to contract customers
|
414,852
|
-
|
|
TOTAL CURRENT LIABILITIES
|
------------
49,539,786
|
------------
57,675,600
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
12,682,612
|
------------
58,987,956
|
|
TOTAL NET ASSETS
|
------------
16,874,032
==========
|
------------
63,599,297
==========
|
|
FINANCED BY:
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
1,000,000
|
1,000,000
|
|
TOTAL SHARE CAPITAL
|
------------
1,000,000
|
------------
1,000,000
|
|
RESERVES
|
|
|
|
|
Capital reserve
|
1,000,000
|
1,000,000
|
|
|
Retain profit/(Accumulated loss) carried forward
|
14,493,811
|
60,440,938
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
15,493,811
|
------------
61,440,938
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
16,493,811
|
------------
62,440,938
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
Hire purchase creditors
|
7,192
|
76,644
|
|
|
Deferred taxation
|
373,029
|
1,081,715
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
380,221
|
------------
1,158,359
|
|
|
------------
|
------------
|
|
|
16,874,032
|
63,599,297
|
|
|
==========
|
==========
|
|
|
|
|
|
|
MFE
FORMWORK TECHNOLOGY SDN BHD
|
|
As
At 31-December-2009
|
|
|
|
|
|
|
2009
|
2008
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
13,013,323
|
18,797,095
|
|
|
Net Liquid Funds
|
3,521,491
|
18,797,095
|
|
|
Net Liquid Assets
|
<6,749,501>
|
20,814,010
|
|
|
Net Current Assets/(Liabilities)
|
12,682,612
|
58,987,956
|
|
|
Net Tangible Assets
|
16,874,032
|
63,599,297
|
|
|
Net Monetary Assets
|
<7,129,722>
|
19,655,651
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
9,568,476
|
239,850
|
|
|
Total Liabilities
|
49,920,007
|
58,833,959
|
|
|
Total Assets
|
66,413,818
|
121,274,897
|
|
|
Net Assets
|
16,874,032
|
63,599,297
|
|
|
Net Assets Backing
|
16,493,811
|
62,440,938
|
|
|
Shareholders" Funds
|
16,493,811
|
62,440,938
|
|
|
Total Share Capital
|
1,000,000
|
1,000,000
|
|
|
Total Reserves
|
15,493,811
|
61,440,938
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0.26
|
0.33
|
|
|
Liquid Ratio
|
0.86
|
1.36
|
|
|
Current Ratio
|
1.26
|
2.02
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
52
|
46
|
|
|
Debtors Ratio
|
69
|
65
|
|
|
Creditors Ratio
|
86
|
61
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
0.58
|
0
|
|
|
Liabilities Ratio
|
3.03
|
0.94
|
|
|
Times Interest Earned Ratio
|
<86.34>
|
841.34
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
<21.41>
|
11.24
|
|
|
Net Profit Margin
|
<22.10>
|
8.03
|
|
|
Return On Net Assets
|
<169.76>
|
53.50
|
|
|
Return On Capital Employed
|
<108.36>
|
53.36
|
|
|
Return On Shareholders' Funds/Equity
|
<181.37>
|
38.88
|
|
|
Dividend Pay Out Ratio (Times)
|
<0.54>
|
0.24
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
|
|
|
|
|
