MIRA
INFORM REPORT
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Report Date : |
03.09.2011 |
IDENTIFICATION DETAILS
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Name : |
TURBOSERVICES OVERHAUL SDN. BHD |
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Registered Office : |
Lot 26197, Kawasan Perindustrian Tuanku Jaafar Seremban Negeri 71450 |
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Country : |
Malaysia |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
21.12.2005 |
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Com. Reg. No.: |
718820-K |
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Legal Form : |
Private Limited Company Limited By Shares |
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Line of Business : |
Provision of gas turbine overhaul and maintenance services. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Poor |
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Payment Behaviour : |
Unknown |
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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
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Malaysia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
IDENTIFICATION DETAILS
Verified Address
Subject name : TURBOSERVICES OVERHAUL SDN. BHD.
Business address : Lot 26197, Kawasan Perindustrian Tuanku Jaafar
Town : Seremban
Province : Negeri Sembilan
Zip/postal code : 71450
Country : Malaysia
Tel : +60 6 6798270
Fax : +60 6 6798267
Email : info@deleum.com
Website : www.deleum.com
Registered address : C/o DELEUM BERHAD
No. 2 Jalan Bangsar Utama 9 Bangsar Utama
Town : Kuala Lumpur
Province : Wilayah Persekutuan
Zip/postal code : 59000
Country : Malaysia
SUMMARY DETAILS
Executive Summary
Date founded or registered : 21/12/2005
Legal form : Private Limited Company Limited By
Shares
Chief executive :
Heng Phok Wee
Issued & paid up capital : MYR 250,000
Sales turnover :
MYR 1,896,950 (Non-consolidated 12 months, 31/12/2010)
Net income :
MYR -2,241,247 (Non-consolidated 12 months, 31/12/2010)
Total fixed assets : MYR 27,156,351 (Non-consolidated 12
months, 31/12/2010)
Line of business : Provision of gas turbine overhaul and
maintenance services.
Staff employed : 456 (Deleum Group)
CREDIT RISK OPINION
Company Analysis
Country risk : Country risk is minimal
Operation trend : Operational trend is declining
Management experience : Management is modestly experienced
Financial performance : Financial performance is poor
Organization structure : Organizational structure is flawed
Detrimental : Some detrimental records found
Payment history : No payment delays noted
Credit amount suggestion : Fully secured terms.
Credit amount asked : Not described.
Comments : It is strictly advisable not to grant any amount of credit due to the Subject’s share equity deficit. The Subject has been on losses and the future and stability of the
company is uncertain.
On a separate note, credit can be granted if guaranteed by Parent Company, Deleum Berhad.
STATUTORY DETAILS
Registry Data
Registration date :
21/12/2005
Legal form : Private Limited Company Limited By
Shares
Registration no 718820-K
Registered authority : Companies
Commission of Malaysia
Registry status : Live/Active
Previous name : None reported.
Change of legal form : None reported
MANAGEMENT / DIRECTORS
Key Management
Name : Nan Yusri Bin Nan Rahimy
Designation : Chief Executive
Officer Name : Heng Phok Wee
Designation : General Manager
BOARD OF DIRECTORS/ OTHER APPOINTMENTS
Appointments
Name : Datuk Vivekananthan A/L M.V. Nathan
Designation : Director
Identification no : 410505-10-5417
Appointment date : 21/03/11
Address : No.3, Jalan Cenderai 3
Lucky Garden, Bangsar
59100 Kuala Lumpur Wilayah
Persekutuan Malaysia
Biography : Datuk Vivekananthan a/l M. V. Nathan, a
Malaysian, aged 69. He is one of the co-founders of DSSB. He joined ESSO
Malaysia in 1962 in the Instrumentation and Electrical Engineering Services
Department and undertook assignments at ESSO refineries in Malaysia and
Thailand. He then worked for Mobil Refinery, Singapore and subsequently as
Project Engineer with Avery Laurence (S) Pte. Ltd.
on various projects in
Brunei, Thailand and Indonesia and also attended training in Japan with
Yokogawa Electric Works. He later joined Teledyne Inc. and was based in USA for
training in management before being posted as its Marketing Director of the Far
East Operations.
In 1982, together with his
founding partners he spearheaded DSSB’s venture into the oil and gas industry
and was appointed as its Managing Director and later re-designated as
President. He was the Deputy Executive Chairman of Deleum Berhad until his
retirement on
31 May 2010 and subsequently became the Non-Executive Deputy
Chairman.
He sits on the Board of WGC
2012, a company limited by guarantee, set up by the Malaysian Gas Association
to organise the 25th World Gas Conference (“WGC”) in Kuala Lumpur in 2012. He
also sits on the Boards of Malaysia Deepwater Production Contractors Sdn. Bhd.
and Malaysia Deepwater Floating Terminal (Kikeh) Ltd.
Name : Nan Yusri Bin Nan Rahimy
Designation : Director
Identification no : 710725-03-5785
Appointment date : 08/11/10
Address : No.1-9 Sutramas Condominium
Jalan Dutamas Melati
Off Jalan Dutamas Raya
Segambut 51200 Kuala Lumpur Wilayah Persekutuan
Malaysia
Biography : Nan Yusri bin Nan Rahimy, a Malaysian,
aged 39. Mr. Nan Yusri Bin Nan Rahimy serves as Group Managing Director and
Executive Director at Deleum Bhd since March 1, 2011. He holds a Bachelor of
Engineering Degree (Honours) in Mechanical Engineering from the RMIT University
(formerly known as Royal Melbourne Institute of Technology), Australia and is a
member of the Society of Petroleum Engineers. He started his career with DSSB,
in April 1996 as a Marketing Executive supporting the turbomachinery business
and was later re-designated to Application Engineer in November 1996. He had
held several senior positions within the Group since then including Senior
Marketing Manager, Assistant Vice President – Business Development, Vice
President – Exploration and Production and Chief Operating Officer – Oilfield
Services. In August 2009, he was promoted to Chief Executive Officer of Delcom
Oilfield Services
Sdn. Bhd., another wholly-owned subsidiary
of Deleum Berhad and in September 2010 promoted to Chief Executive Officer of
DSSB before being appointed to his current position on March 1, 2011
Name : Heng Phok Wee
Designation : Director
Identification no : 711123-71-5139
Appointment date : 05/10/09
Address : No.1, Jalan Margosa SD10/1C Bandar Sri Damansara
52200 Kuala Lumpur Wilayah Persekutuan Malaysia
Name : Lee Sew Bee
Designation : Company Secretary
Identification no : 611101-10-7118
Appointment date : 01/09/06
Address : 7,Villa Damansara
Jalan Camar 4/25
Kota Damansara
47810 Petaling Jaya Selangor Darul Ehsan Malaysia
Staff employed : 456 (Deleum Group)
Key Advisors
Auditors : PRICEWATERHOUSECOOPERS Level 10, 1 Sentral
Jalan Travers, Kuala Lumpur Sentral
50706 Kuala Lumpur
Malaysia
SHARE CAPITAL
Composition
Authorized Capital :
MYR 1,000,000
No of shares : 1,000,000 Ordinary Shares
Share par value :
MYR 1
Issued capital : MYR 250,000
Paid up capital :
MYR 250,000
Changed in capital : The Subject increased its share capital from MYR 100,000 to MYR 1,000,000 on 13-03-2009.
OWNERSHIP / SHAREHOLDERS
How listed : Full List
Composition
Shareholder name : DELEUM BERHAD
Address : No. 2, Jalan Bangsar Utama 9
Bangsar Utama
59000 Kuala Lumpur Wilayah Persekutuan Malaysia
No. of shares : 250,000 Ordinary Shares
% of shares : 100%
RELATED COMPANIES &
CORPORATE AFFILIATIONS
Structure
Name : DELEUM BERHAD
Affiliation type : Parent Company
Address : No. 2, Jalan Bangsar Utama 9
Bangsar Utama
59000 Kuala Lumpur Wilayah Persekutuan Malaysia
Comments : Deleum Berhad was incorporated in Malaysia under the Companies Act on 23
November 2005 as a private limited company under the name of Deleum Sdn. Bhd. Subsequently, on 15 September 2006, it was converted to a public limited company and assumed its present name of Deleum Berhad.
Deleum Berhad is an investment holding company and
through its subsidiaries,
provides a diverse range of supporting specialized products and services for the oil and gas industry, particularly the exploration and production of oil and gas.
The history of Deleum Group’s participation in the oil and gas industry dates back to 1982 where its wholly-owned subsidiary Delcom Services Sdn Bhd established itself in the Malaysian Oil and Gas Industry.
The principal business activities of Deleum Group cover the following areas:-
1) Gas turbine technical services
2) Subsea production and development
3) Exploration and production equipment and services
4) Gas turbine packages specialised products and services
5) Oilfield chemical and services
Deleum Group’s other business activities through its associate corporations includes bulking services and Independent Power Production.
With over 25 years of experience in the oil and gas industry, Deleum Group has become a provider of supporting specialized products and services to the oil and gas industry.
Deleum Berhad is listed in Bursa Malaysia Stock Market.
Name : ROTARY TECHNICAL SERVICES SDN. BHD.
Affiliation type : Sister Company
Address : Malaysia
Comments : Servicing, repair and maintenance of motors, generators, transformers, pumps and valves.
Name : DELCOM SERVICES SDN BHD
Affiliation type : Sister Company
Address : Malaysia
Comments : Provision of specialised equipment and services to the oil and gas industry.
Name : DELCOM SERVICES HOLDINGS LIMITED
Affiliation type : Sister Company
Address : Hong Kong
Comments : Investment holding.
Name : DELCOM UTILITIES (CAMBODIA) LIMITED
Affiliation type : Sister Company
Address : British Virgin Islands
Comments : Investment holding.
Name : DELCOM OILFIELD SERVICES SDN. BHD.
Affiliation type : Sister Company
Address : Malaysia
Comments : Provision of wireline equipment and services, integrated wellhead maintenance services and other oilfield products and technical services to the oil and gas industry.
Name : TURBOSERVICES SDN. BHD.
Affiliation type : Sister Company
Address : Malaysia
Comments : Provision of gas turbine overhaul and technical services and supply of gas turbine parts to the oil and gas industry.
Name : DELCOM HOLDINGS SDN. BHD.
Affiliation type : Sister Company
Address : Malaysia
Comments : Investment holding.
Name : MALAYSIAN MUD AND CHEMICAL SDN. BHD .
Affiliation type : Sister Company
Address : Malaysia
Comments : Operation of a bulking installation, offering dry and liquid bulking services to offshore oil exploration companies.
Related companies and corporate affiliations comments
: Other companies of the Deleum Group should be considered affiliates of the
Subject
BANK & MORTGAGES
Bank Details
Name of bank : HSBC Bank Malaysia Berhad
Address : Malaysia
Account details : Current Account
Comments : It is generally not the policy of local banks to provide credit status information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.
Mortgages : Total of Charge: MYR 1,533,064.94
Date of Creation: 23-02-2007
Name of Chargee: HSBC BANK MALAYSIA BERHAD Charge Status: UNSATISFIED
Total of Charge: MYR 797,504.14
Date of Creation: 23-02-2007
Name of Chargee: HSBC BANK MALAYSIA BERHAD Charge Status: UNSATISFIED
Total of Charge: MYR 1,993,170.84
Date of Creation: 23-02-2007
Name of Chargee: HSBC BANK MALAYSIA BERHAD Charge Status: UNSATISFIED
Legal Fillings
Bankruptcy fillings : None reported.
Court judgements : None reported.
Tax liens : None reported.
Others : None reported
FINANCIAL DATA
Description
Source of financial statement :
Commercial Registry Filings
Financial statement date : 31/12/10
Type of accounts :
Full audited
Currency : Malaysia, Ringgit (MYR)
Exchange rate : 1 USD = MYR 2.98 as of 30-08-2011
Summarized Financial
Information
Consolidation type :
Non Consolidated Non
Consolidated Group
Consolidated
|
Currency : |
Malaysia,
Ringgit (MYR) |
Malaysia,
Ringgit (MYR) |
Malaysia,
Ringgit (MYR) |
|
Denomination : |
(x1) One |
(x1) One |
(x1) One |
|
Date of
financial year end : |
31/12/10 |
31/12/09 |
31/12/10 |
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Length of
accounts : |
12 months |
12 months |
12 months |
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Sale turnover /
Income : |
1,896,950 |
3,781,259 |
399,045,384 |
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Gross profit : |
470,368 |
2,358,569 |
75,950,032 |
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Profit before
tax : |
-2,241,247 |
311,759 |
37,594,103 |
|
Net income : |
-2,241,247 |
311,759 |
27,278,162 |
|
Non current
assets : |
24,940,641 |
21,192,957 |
137,009,602 |
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Current assets : |
2,215,710 |
3,490,266 |
214,155,698 |
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Inventories : |
|
|
9,045,679 |
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Total assets : |
27,156,351 |
24,683,223 |
351,165,300 |
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Current
liabilities : |
26,162,931 |
20,850,583 |
130,128,839 |
|
Non current
liabilities : |
3,635,693 |
4,593,563 |
20,494,325 |
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Total
liabilities : |
29,798,624 |
25,444,146 |
150,623,164 |
|
Share equity : |
-2,642,273 |
-760,923 |
200,542,136 |
|
Retained earning : |
-3,268,210 |
-1,010,923 |
125,476,650 |
Comments : The non-consolidated financial information above relates to the Subject only.
The group’s consolidated financial information above relates to the Subject’s Parent / Ultimate Holding Company Deleum Berhad and all its subsidiaries which include the Subject
OPERATION DETAILS
Main activities : The Subject is engaged in the provision
of gas turbine overhaul and maintenance services such as spare parts,
trainings, operations, maintenance, overhaul and the repair of Solar Turbines
industrial gas turbines.
The Subject is part of
Deleum Berhad which is a Malaysia based investment holding company. The Company
operates in three segments: provision of specialized equipment and services,
which consists of provision of subsea production development, gas turbine
packages and umbilicals; provision of oilfield equipment and services, which
consists of
provision of wireline and
wellhead equipment and related services, offshore drilling rig operations, gas
turbine overhaul, supply of gas turbine parts and other oilfield equipment and
technical services, and provision of oilfield chemicals and services to the oil
and gas and general industries, which include the development and provision of
solid deposit removal solutions and specialty chemicals. Its subsidiaries are
Delcom Services Sdn. Bhd., Delcom Services Holdings Limited, Turboservices
Overhaul Sdn. Bhd. and Delflow Solutions Sdn. Bhd.
Purchases
International : Mainly from United States
Sales
Local : Yes
International : No exports.
Key events : Friday February 1, 2008
Deleum opens Solar turbine service facility
SENAWANG: Oil and gas service provider Deleum Bhd has opened a
RM20mil facility to service Solar turbines in the region.
The state-of-the-art facility would be managed and operated by
wholly-owned subsidiary Turboservices Overhaul Sdn Bhd, said executive chairman Datuk Izham Mahmud .
“As at Dec 31, 2007, there were about 200 Solar turbines in Malaysia,’’
he said.
“This makes up a significant share of the market for industrial gas turbines within the one- to 15-MW range, which we have the opportunity to capture,” Izham said at the opening of the facility yesterday.
US-based Solar Turbines Inc has more than 12,500 gas turbine engines operating in over 90 countries worldwide.
Izham said that with a Solar turbines-specific service centre situated in the country, Malaysia could also leverage on the support it was now able to
provide to neighbouring countries.
“With our position in the Asia Pacific region, this facility will generate foreign earnings for Malaysia,” he said.
The facility, - the first of its kind in Malaysia - would provide original equipment manufacturing support, overhaul maintenance services, the repair and testing of Solar turbines, and training facilities.
Solar president Steve Gosselin said the facility would promote Malaysia as a Solar turbine regional services hub as it would be opened to all Solar's customers in the Asia Pacific.
“As the facility will cater to all Solar customers, it will also serve as a cost effective way to support them within the Asia Pacific region,” Gosselin said.
He added that Solar would also provide the technical support where necessary.
The 30,000 sq ft facility is located on 3.5 acres in the Tuanku Jaafar
Industrial Estate in Senawang, Negri Sembilan.
Construction of the facility will begin in 2006
Property & Assets
Premises : The Subject operates from premises located at the verified heading address consisting workshop facilities, warehouse and administrative office.
Branches : The Subject in addition operates from group headquarters located at:
No. 2, Jalan Bangsar Utama 9
Bangsar Utama
59000 Kuala Lumpur
GPO Box 11556
50750 Kuala Lumpur
Malaysia
Tel: +60 3 22957788
Fax: +60 3 22957777
Other property : Total NBV of property, plant and equipment as of 31-12-2010 was MYR
24,940,641.
SUMMARIZED COUNTRY RISK
Gross Domestic Products (GDP) & Economic Overview
Central bank : Central Bank of Malaysia
Reserve of foreign exchange & gold : US$ 136.1 billion as of 15 August 2011
Gross domestic product - GDP : US$ 247.781 billion
GPP (Purchasing power parity) : 442.01 billion of International dollars
GDP per capita - current prices : US$ 8,624
GDP - composition by sector : agriculture: 9.4% industry: 40.9% services: 49.7%
Inflation : 2008: 5.4%
2009: 0.6%
2010: 1.7%
Unemployment rate : 2008: 3.3%
2009: 3.6%
2010: 3.3%
Public debt
(General Government gross debt as a % GDP)
: 2008: 42.8%
2009: 55.4%
2010: 54.2%
Government bond ratings : Standard & Poor's: A-/Stable/A-2
Moody's rating: A3
Moody's outlook: STA
Market value of publicly traded shares: US$420 billion
Largest companies in the country : CIMB Group Holdings (Banking), Sime Darby (Conglomerates), Public Bank (Banking), Maybank (Banking), Tenaga Nasional(Utilities), Petronas Chemicals, Maxis Berhad
Trade & Competitiveness Overview
Total exports : US$210.3 billion
Exports commodities : electronic equipment, petroleum and liquefied natural gas, wood and woodproducts, palm oil, rubber, textiles, chemicals
Total imports : US$156.2 billion
Imports commodities : electronics, machinery, petroleum products, plastics, vehicles, iron andsteel products, chemicals
Export - major partners : US 15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand 5%, HongKong 4.6%
Import - major partners : Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan
5.7%,Thailand 5.3%, South Korea 4.9%, Germany 4.6%, Indonesia 4.2%
FDI Inflows : 2007: US$8,538 million
2008: US$7,318 million
2009: US$1,381 million
FDI Outflows : 2007: US$11,280 million
2008: US$14,988 million
2009: US$8,038 million
Best countries for doing business: 21 out of 183 countries
Global competitiveness ranking : 26 (ranking by country on a basis of 133, the first is the best)
Country and Population Overview
Total population : 28.23 million
Total area : 329,847 km2
Capital : Kuala Lumpur
Currency : Malaysia Ringgits (MYR)
Internet users as % of total population: 57.61%
PAYMENT HISTORY
Purchase Term
International : Credit 30-45 days
Sales Term
Local : Credit 30-45 days
Trade Reference/ Payment
Behaviour
Comments : As local and international trade
references were not supplied, the Subject's payment track record history cannot
be appropriately determined but based on our research, payments are believed to
be met without delay.
Investigation Note
Sources : Interviews and material provided by the
Subject
: Other official and local business
sources
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.89 |
|
|
1 |
Rs.74.31 |
|
Euro |
1 |
Rs.65.41 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.