|
* Adopted abbreviations : SC -
Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
618782-K
|
|
COMPANY NAME
|
:
|
INTERNATIONAL BRASS INDUSTRIES SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
18/06/2003
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
307, JALAN MAHKOTA, TAMAN MALURI, CHERAS, 1ST FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
NO 1, JALAN PERUSAHAAN UTAMA, TAMAN INDUSTRI SELESA JAYA, BALAKONG,
43300 SERI KEMBANGAN, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-89618118
|
|
FAX.NO.
|
:
|
03-89616511
|
|
EMAIL
|
:
|
ibibrass@streamyx.com
|
|
WEB SITE
|
:
|
www.ibibrass.com
|
|
CONTACT PERSON
|
:
|
CHONG ( CEO )
|
|
INDUSTRY CODE
|
:
|
28993
|
|
PRINCIPAL
ACTIVITY
|
:
|
MANUFACTURING
OF BRASS PRODUCTS
|
|
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 12,000,000.00
DIVIDED INTO
ORDINARY SHARES 12,000,000 CASH OF MYR 1.00 EACH.
|
|
SALES
|
:
|
MYR
147,348,060 [2009]
|
|
NET WORTH
|
:
|
MYR 25,949,264
[2009]
|
|
STAFF STRENGTH
|
:
|
80 [2011]
|
|
BANKER (S)
|
|
AMBANK (M) BHD
CIMB BANK BHD
EXPORT-IMPORT BANK OF MALAYSIA
BHD
STANDARD CHARTERED BANK MALAYSIA
BHD
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD93,051
|
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
brass products.
The SC is not listed on Bursa Malaysia
(Malaysia Stock Exchange).
The immediate holding company of the SC is MK INDUSTRIES (ASIA) SDN
BHD, a company incorporated in MALAYSIA.
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
MK INDUSTRIES (ASIA) SDN BHD
|
307, JALAN MAHKOTA, TAMAN MALURI, CHERAS, 1ST FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
735129
|
12,000,000.00
|
|
|
|
|
---------------
|
|
|
|
|
12,000,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
DATO' MUTHUKUMAR S/O AYARPADDE
|
|
Address
|
:
|
66 JALAN SETIAJAYA, BUKIT DAMANSARA, 50490 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
IC / PP No
|
:
|
A2733985
|
|
New IC No
|
:
|
720713-10-5669
|
|
Date of Birth
|
:
|
13/07/1972
|
|
Nationality
|
:
|
MALAYSIAN INDIAN
|
|
Date of Appointment
|
:
|
25/09/2006
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. MURUGESAN MUTHU MUNIYANDI
|
|
Address
|
:
|
797, 13 MILES, JALAN BALAKONG, SERI KEMBANGAN, 43300 SERI KEMBANGAN,
SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
A9394400
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
30/12/2004
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
CHONG
|
|
|
Position
|
:
|
CEO
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
MUTHUKUMAR S/O AYARPADDE
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
VALELMURUGAN
|
|
|
Position
|
:
|
FINANCE MANAGER
|
|
|
|
|
|
|
4)
|
Name of Subject
|
:
|
RAJ KUMAR
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
RAJA MANICK & CO
|
|
Auditor' Address
|
:
|
7A PEARL COURT,
61 JALAN THAMBY ABDULLAH, BRICKFIELD, 7TH FLOOR, 50470 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. VIJAYAN S/O SINGARAM
|
|
|
IC / PP No
|
:
|
6108136
|
|
|
New IC No
|
:
|
601205-10-6639
|
|
|
Address
|
:
|
161-4 BLOCK 5, JALAN PERKASA 1, TAMAN MALURI, CHERAS, 55100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
BANKING
Banking relations are maintained principally with :
|
3)
|
Name
|
:
|
EXPORT-IMPORT BANK OF MALAYSIA BHD
|
|
|
|
|
|
|
4)
|
Name
|
:
|
STANDARD CHARTERED BANK MALAYSIA BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
The SC has bank charges with above mentioned banker(s).
|
ENCUMBRANCE (S)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
30/01/2007
|
|
Description Of Charge
|
:
|
|
IJARAH FACILITY AGREEMENT & MURABAHAH LETTER OF CREDIT
FACILITY AGREEMENT
|
|
|
Amount Secured
|
:
|
RM43,800,000.00
|
|
Description Of Property Affected
|
:
|
|
A 1ST FIXED CHARGE OVER ALL LAND , PLANT, EQUIPMENT, MACHINERY,
MOTOR VEHICLES, A 1ST FLOATING CHARGE OVER ALL THE UNDERTAKING,
PROPERTIES & ASSETS OF THE COMPANY & 1ST PARTY 1ST LEGAL CHARGE
OVER THE PROPERTY HEL UNDER GM 1159 LOT 3375 AND GM 1100 LOT 3376, MUKIM
KAJANG, HULU LANGAT SELANGOR TOGETHER WITH ALL BUILDING AND BUSINESS
ASSETS
|
|
|
Name & Address Of Chargee
|
:
|
|
KUWAIT FINANCE
HOUSE (MALAYSIA)
BHD
|
|
TOWER 2, MNI TWINS, 11 JALAN PINANG, LEVEL 18, 50740 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 07/02/2007
|
|
Registered and Numbered 1 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
10/05/2007
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM5,000,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
EXPORT-IMPORT BANK OF MALAYSIA BHD
|
|
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 2 In The Register of Charges
|
ENCUMBRANCE 3
|
Date of Creation
|
:
|
25/07/2007
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM5,000,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
EXPORT-IMPORT BANK OF MALAYSIA BHD
|
|
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 3 In The Register of Charges
|
ENCUMBRANCE 4
|
Date of Creation
|
:
|
03/08/2007
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM189,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 4 In The Register of Charges
|
ENCUMBRANCE 5
|
Date of Creation
|
:
|
03/08/2007
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM100,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 5 In The Register of Charges
|
ENCUMBRANCE 6
|
Date of Creation
|
:
|
08/07/2008
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM8,100,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 6 In The Register of Charges
|
ENCUMBRANCE 7
|
Date of Creation
|
:
|
28/01/2010
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
USD8,000,000.00
|
|
Description Of Property Affected
|
:
|
|
SINKING FUND ACC 312157270635 OPENED NAME OF COMPANY &
MAINTAINED WITH BANK'S BRANCH AT 1ST FLOOR, 2, JLN AMPANG KL
|
|
|
Name & Address Of Chargee
|
:
|
|
STANDARD CHARTERED BANK MALAYSIA BHD
|
|
30, JALAN SULTAN ISMAIL, LEVEL 16, 50250 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 24/02/2010
|
|
Registered and Numbered 7 In The Register of Charges
|
LEGAL CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER CHECK AGAINST SC
* We have checked through the SC in our defaulters' database which comprised
of debtors that have been blacklisted by our customers and debtors that have
been placed or assigned to us for collection since 1990. Information was
provided by third party where the debt amount can be disputed. Please check
with creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT RECORD
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Import Countries
|
:
|
CHINA,AUSTRALIA
|
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
|
:
|
40%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Export Market
|
:
|
THAILAND, HONG KONG, TAIWAN,
AUSTRALIA, SINGAPORE, EUROPE, INDIA, CHINA
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
LETTER OF CREDIT (LC),CHEQUES,TELEGRAPHIC TRANSFER (TT)
|
|
Type of Customer
|
:
|
MANUFACTURING INDUSTRIES,DISTRIBUTORS
|
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
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
2008
|
2007
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
COMPANY
|
80
|
80
|
75
|
75
|
75
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of brass
products.
The SC produces high quality brass products for various industrial
applications.
We were informed that the SC has integrated environment friendly
manufacturing plant, complete with environment and waste management system.
The SC manufactures high quality brightly annealed brass rods, wires,
hexagons, squares and profiles of diameter 5.5mm up to 80mm.
The products are manufactured in accordance to established international
standards JIS, ASTM DIN and BS to meet the very stringent needs of clients.
The SC has production workers from India.
PROJECTS
No projects found in our databank
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh investigations carried out on the SC
indicated that :
|
Telephone Number Provided By Client
|
:
|
0389618118
|
|
Current Telephone Number
|
:
|
03-89618118
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
NO 1, JALAN PERUSAHAAN UTAMA, TAMAN INDUSTRI SELESA JAYA, BALAKONG,
43300, SERI KEMBANGAN, SELANGOR.
|
|
Current Address
|
:
|
NO 1, JALAN PERUSAHAAN UTAMA, TAMAN INDUSTRI SELESA JAYA, BALAKONG,
43300 SERI KEMBANGAN, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other
Investigations
We contacted 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
|
:
|
Unfavourable
|
[
|
6.96%
|
]
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
11.13%
|
]
|
The fluctuating turnover reflects the fierce competition among the existing
and new market players. The SC's profit fell sharply because of the high
operating costs incurred. The unfavourable return on shareholders' funds and
net assets could indicate that the SC's management was inefficient in
utilising its assets to generate returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
29 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
38 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
3 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in stocks. The favourable debtors' days could be
due to the good credit control measures implemented by the SC. The SC had a
favourable creditors' ratio as evidenced by its favourable collection days.
The SC could be taking advantage of the cash discounts and also wanting to
maintain goodwill with its creditors.
Liquidity:
|
Liquid Ratio
|
:
|
Favourable
|
[
|
1.26 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.56 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
|
:
|
Unfavourable
|
[
|
1.42 Times
|
]
|
|
Gearing Ratio
|
:
|
Unfavourable
|
[
|
1.39 Times
|
]
|
The SC's interest cover was low. If its profits fall or when interest rate
rises, it may not be able to meet all its interest payment. The SC was highly
geared, thus it had a high financial risk. The SC was dependent on loans to
finance its business needs. In times of economic downturn and / or high
interest rate, the SC will become less profitable and competitive than other
firms in the same industry, which are lowly geared. This is because the SC
has to service the interest and to repay the loan, which will erode part of
its profits. The profits will fluctuate depending on the SC's turnover and
the interest it needs to pay.
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. If there
is a fall in the SC's profit or any increase in interest rate, the SC may not
be able to generate sufficient cash-flow to service its interest. The SC's
gearing level was high and its going concern will be in doubt if there is no
injection of additional shareholders' funds in times of economic downturn and
/ or high interest rates.
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)
|
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
|
Incorporated in 2003 as a private limited company, the SC is
principally engaged in manufacturing of brass products. Throughout its
years of establishment, the SC has slowly been building up contacts with
its clients and competing in the industry. With huge amount of paid up
capital standing at RM12 million, the SC is allowed to expand its business comfortably.
|
|
Over the years, the SC's business has been growing steadily both locally
and internationally. In order to further grow the business, the SC has
broaden its reach and penetrated into the global market. The SC's
receptiveness towards globalization has led to its growth and sales to Hong Kong, Thailand,
Taiwan, Australia
and etc. Such a wide market coverage has well diversified its business risk
and better growth prospect can be expected. Headed by its CEO, the SC
currently has about 80 staff in its business operations. The overall
management capability of the SC is average.
|
|
For the year ended 2009, the SC has recorded a pre-tax profit of RM2.03
million on the backed of RM147.34 million in its turnover. The SC has
generated a low return on shareholders' funds indicates that the management
was inefficient in utilising the SC's assets to generate income. Moreover,
the SC has a high gearing ratio of 1.39 times which has placed the SC at
high financial risk. Nevertheless, the SC managed to maintain an adequate
liquidity level, indicating that the SC has the ability to meet its
financial obligations. Given a positive net worth standing at RM25.94
million, we believe the SC is able to enhance its business in the near
term.
|
|
We noted that the SC's supplies are sourced locally and imported mainly
from China and Australia.
Thus, it reduces the risk of component shortages which in turn may cause
delays or increased costs in obtaining that components.
|
|
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 has reached its optimum level and is generally stable. The
potential growth for the industry is marginal and it is quite competitive.
It very much depends on the SC's capacity in sustaining its performance in
the market. With the SC's strong capital background, it has competitive
edge against other players in the same field.
|
|
Based on the above condition, we recommend credit be granted to the SC normally.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
INTERNATIONAL
BRASS INDUSTRIES SDN BHD
|
|
For The Year
Ended 31-December-2009
|
|
|
18 month
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
147,348,060
|
202,608,527
|
158,875,549
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
2,032,141
|
6,038,360
|
4,234,534
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
2,032,141
|
6,038,360
|
4,234,534
|
|
Taxation
|
<225,245>
|
<864,100>
|
<1,148,000>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
1,806,896
|
------------
5,174,260
|
------------
3,086,534
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
1,806,896
|
------------
5,174,260
|
------------
3,086,534
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
1,806,896
|
------------
5,174,260
|
------------
3,086,534
|
|
As previous reported
|
9,202,167
|
7,726,419
|
4,639,885
|
|
As restated
|
------------
9,202,167
|
------------
7,726,419
|
------------
4,639,885
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
11,009,063
|
12,900,679
|
7,726,419
|
|
|
|
|
|
|
TRANSFER TO RESERVES - General
|
-
|
164,697
|
-
|
|
|
|
|
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
<2,587,130>
|
<3,863,209>
|
-
|
|
|
|
|
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
8,421,933
==========
|
------------
9,202,167
==========
|
------------
7,726,419
==========
|
|
RETAINED BY: The Company
|
8,421,933
|
9,202,167
|
7,726,419
|
|
|
------------
8,421,933
==========
|
------------
9,202,167
==========
|
------------
7,726,419
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
Term loan
|
1,933,245
|
1,580,460
|
396,000
|
|
Bank overdraft
|
2,209,359
|
1,537,241
|
460,946
|
|
Hire purchase
|
40,992
|
11,843
|
12,509
|
|
Bankers acceptance
|
426,545
|
194,905
|
281,007
|
|
Letter of credit
|
202,623
|
785,738
|
487,080
|
|
|
------------
4,812,764
==========
|
------------
4,110,187
==========
|
------------
1,637,542
==========
|
BALANCE SHEET
|
INTERNATIONAL
BRASS INDUSTRIES SDN BHD
|
|
As At
31-December-2009
|
|
|
18 month
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
39,128,015
|
41,844,786
|
41,436,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
39,128,015
|
------------
41,844,786
|
------------
41,436,735
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
11,758,582
|
13,308,242
|
16,870,121
|
|
|
|
|
|
|
|
|
Trade debtors
|
15,229,925
|
15,793,785
|
13,304,545
|
|
|
Other debtors, deposits & prepayments
|
2,086,528
|
2,418,941
|
2,953,543
|
|
|
Short term deposits
|
11,590,856
|
2,000,000
|
2,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount due from holding company
|
18,092,666
|
2,592,281
|
47,750
|
|
|
|
|
|
|
|
|
Amount due from related companies
|
-
|
1,068,857
|
1,728,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
3,709,098
|
3,916,754
|
2,109,987
|
|
|
|
|
|
|
|
|
Amount owing to related parties
|
-
|
563,321
|
1,228,364
|
|
|
Tax refundable
|
252,834
|
513,000
|
393,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
62,720,489
|
------------
42,175,181
|
------------
40,635,680
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
1,121,129
|
4,600,176
|
7,799,377
|
|
|
Other creditors & accruals
|
659,292
|
822,154
|
2,930,825
|
|
|
Hire purchase & lease creditors
|
199,213
|
217,537
|
237,552
|
|
|
Bank overdraft
|
741,432
|
34,542
|
343,648
|
|
|
Short term borrowings/Term loans
|
3,527,935
|
2,255,193
|
533,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bill & acceptances payable
|
26,354,310
|
23,701,000
|
21,028,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to related companies
|
1,730,384
|
-
|
-
|
|
|
|
|
|
|
|
|
Amounts owing to director
|
3,419,179
|
1,875
|
7,225
|
|
|
|
|
|
|
|
|
Dividends payable/proposed
|
-
|
3,863,209
|
-
|
|
|
Amount owing to related party
|
2,573,973
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
40,326,847
|
------------
35,495,686
|
------------
32,879,988
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
22,393,642
|
------------
6,679,495
|
------------
7,755,692
|
|
TOTAL NET ASSETS
|
------------
61,521,657
==========
|
------------
48,524,281
==========
|
------------
49,192,427
==========
|
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
12,000,000
|
12,000,000
|
12,000,000
|
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
12,000,000
|
------------
12,000,000
|
------------
12,000,000
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
revaluation reserve
|
5,527,331
|
5,527,331
|
5,692,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
8,421,933
|
9,202,167
|
7,726,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
13,949,264
|
------------
14,729,498
|
------------
13,418,447
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
25,949,264
|
------------
26,729,498
|
------------
25,418,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
Long term loans
|
31,368,524
|
17,184,213
|
19,266,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase creditors
|
220,703
|
532,483
|
753,354
|
|
|
Deferred taxation
|
3,983,166
|
4,078,087
|
3,753,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
35,572,393
|
------------
21,794,783
|
------------
23,773,980
|
|
|
------------
|
------------
|
------------
|
|
|
61,521,657
|
48,524,281
|
49,192,427
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
INTERNATIONAL
BRASS INDUSTRIES SDN BHD
|
|
As At 31-December-2009
|
|
|
18 month
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
15,299,954
|
5,916,754
|
4,109,987
|
|
|
Net Liquid Funds
|
11,030,587
|
3,627,019
|
3,232,978
|
|
|
Net Liquid Assets
|
10,635,060
|
<6,628,747>
|
<9,114,429>
|
|
|
Net Current Assets/(Liabilities)
|
22,393,642
|
6,679,495
|
7,755,692
|
|
|
Net Tangible Assets
|
61,521,657
|
48,524,281
|
49,192,427
|
|
|
Net Monetary Assets
|
<24,937,333>
|
<28,423,530>
|
<32,888,409>
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
36,057,807
|
20,223,968
|
21,134,554
|
|
|
Total Liabilities
|
75,899,240
|
57,290,469
|
56,653,968
|
|
|
Total Assets
|
101,848,504
|
84,019,967
|
82,072,415
|
|
|
Net Assets
|
61,521,657
|
48,524,281
|
49,192,427
|
|
|
Net Assets Backing
|
25,949,264
|
26,729,498
|
25,418,447
|
|
|
Shareholders" Funds
|
25,949,264
|
26,729,498
|
25,418,447
|
|
|
Total Share Capital
|
12,000,000
|
12,000,000
|
12,000,000
|
|
|
Total Reserves
|
13,949,264
|
14,729,498
|
13,418,447
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.38
|
0.17
|
0.12
|
|
|
Liquid Ratio
|
1.26
|
0.81
|
0.72
|
|
|
Current Ratio
|
1.56
|
1.19
|
1.24
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
29
|
24
|
39
|
|
|
Debtors Ratio
|
38
|
28
|
31
|
|
|
Creditors Ratio
|
3
|
8
|
18
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
1.39
|
0.76
|
0.83
|
|
|
Liabilities Ratio
|
2.92
|
2.14
|
2.23
|
|
|
Times Interest Earned Ratio
|
1.42
|
2.47
|
3.59
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
1.38
|
2.98
|
2.67
|
|
|
Net Profit Margin
|
1.23
|
2.55
|
1.94
|
|
|
Return On Net Assets
|
11.13
|
20.91
|
11.94
|
|
|
Return On Capital Employed
|
10.37
|
19.89
|
11.67
|
|
|
Return On Shareholders' Funds/Equity
|
6.96
|
19.36
|
12.14
|
|
|
Dividend Pay Out Ratio (Times)
|
1.43
|
0.75
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
|
