MIRA
INFORM REPORT
|
Report Date : |
06.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
PALETTE MULTIMEDIA BHD |
|
|
|
|
Registered Office : |
Lot 6.04 Level 6, KPMG Tower 8 First Avenue, Bandar Utama Petaling Jaya Selangor Darul Ehsan 47800 |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
30.06.2011 |
|
|
|
|
Date of Incorporation : |
19.02.1997 |
|
|
|
|
Legal Form : |
Public Listed Company Limited By Shares |
|
|
|
|
Line of Business : |
Investment holding and design, development and marketing of
information technology (IT) related products and services. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 160,000 |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
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 |
IDENTIFICATION DETAILS
Verified Address
Subject name : PALETTE MULTIMEDIA BHD
Business address : Lot 6.04 Level 6, KPMG Tower
8 First Avenue, Bandar Utama
Town : Petaling Jaya
Province : Selangor Darul Ehsan
Zip/postal code : 47800
Country : Malaysia
Tel : +60 3 77289880
Fax : +60 3 77281080
Email : info@palettemm.com
Website : www.palettemm.com
Registered address : C/o Tricor Investor Services Sdn. Bhd.
Level 18, The Gardens North Tower
Mid Valley City
Lingkaran Syed Putra
Town : Kuala Lumpur
Province : Wilayah Persekutuan
Zip/postal code : 59200
Country : Malaysia
SUMMARY DETAILS
Executive Summary
Date founded or registered : 19/02/1997
Legal form : Public Listed Company Limited By Shares
Chief executive :
Eg Kah Yee
Issued & paid up capital : MYR 29,052,650
Sales
turnover : MYR 2,431,652 (Consolidated 12 months,
31/12/2010)
Net
income : MYR -2,957,857 (Consolidated 12 months,
31/12/2010)
Total
fixed assets : MYR 39,018,720 (Consolidated 12 months,
31/12/2010)
Line of business : Investment holding and design,
development and marketing of information technology (IT) related products and
services.
Staff employed : 25 employees
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 gradually declining
Organisation structure : Organisational structure is acceptable
Detrimental : No detrimental records found
Payment history : No payment delays noted
Credit amount suggestion : USD 160,000
Credit amount asked : Not described.
Comments : It is advisable to conduct business dealing on prepayment or L/C basis for larger credit transactions. The Subject has been facing losses however equity balance of the group is sufficient.
STATUTORY DETAILS
Registry Data
Registration date :
19/02/1997
Legal form : Public Company Limited By Shares
Registration no 420056-K
Registered authority : Companies
Commission of Malaysia
Registry status :
Live/Active
Previous
name : The Subject was established under the
name PALETTE MULTIMEDIA SDN. BHD. on 19-02-1997 and changed to current style on
24-07-2000.
Change of legal form : None reported.
MANAGEMENT / DIRECTORS
Key Management
Name : Eg Kah Yee
Designation : Managing Director
Name : Sukhdev Singh A/L Banta Singh
Designation : Executive Director
BOARD OF DIRECTORS/ OTHER APPOINTMENTS
Appointments
Name : Eg Kah Yee
Designation : Chairman & Managing Director
Identification no : 600713-10-6737
Appointment date : 07/05/98
Address : No. 1234, Jalan Timur 17
Jinjang Utara
52000 Kuala Lumpur Wilayah
Persekutuan Malaysia
Biography : Mr. Eg Kah Yee, aged 50, is the founder
and Chairman of Palette Multimedia Bhd. He obtained his Bachelor of Computer
Science from West Virginia University, USA in 1983. He started his career as System
Analyst with Phoenix Data Systems Inc., a Silicon Valley company in Santa
Clara, California USA, where he developed VLSI Layout Verification System. In
1985, he joined Daisy systems Corporation; a Silicon Valley company listed on
NASDAQ based in Mountain View, California which he was the R&D Project
Manager responsible for the development of second generation Digital Logic
Simulator (DLSII) where he designed and implemented the simulation engine and
DBMS. In 1988, he was promoted to be the Director of North Asia Region
responsible for business in China, Hong Kong, Taiwan and Korea.
In 1990, he left Daisy
Systems Corporation and joined Synopsys Inc., a Silicon Valley based startup
pioneer in logic synthesis and High Level Design for ASIC and VLSI design. He
started as the Regional Manager for South Asia Pacific Operations where he was
responsible for the starting and growing of the business in Taiwan, Asean
countries, India, Australia and New Zealand. The Company was listed on NASDAQ
in 1992. He was later promoted to be the General Manager for Asia Pacific
Operation where he was responsible for global business operation excluding
America, Europe and Japan.
In 1996, he left
Synopsys Inc. and started to invest and groom companies. He started Canvas
Technology Inc. in Taiwan, a company specialize in Real Time Operating System
(RTOS) for embedded designs where the team has done numerous co-development of
set-top-boxes, networking products, PDA and defense systems. He has also
invested in Silicon Vision Inc., a Silicon Valley company specialize in optical
products, in Freemont, California together with two Venture Capitalists from
Taiwan and a few high
net-worth individuals from USA.
Name : Sukhdev Singh A/L Banta Singh
Designation : Executive Director
Identification no : 551111-04-5203
Appointment date : 29/05/06
Address : 37-21-7, Sri Penaga Condo
Jalan Medang Serai, Bukit Persekutuan
59100 Kuala Lumpur Wilayah
Persekutuan Malaysia
Biography : Sukhdev Singh, aged 55, is the Executive Director
of Palette Multimedia Bhd. He obtained his Bachelor of Computer Science from
London in 1982. He started his career as a System Analyst and subsequently
Project Manager for ICL, being involved in a variety of technical and project
areas. He subsequently joined Hewlett Packard Singapore as a Network consultant
covering Asia Pacific. Later on moving to other roles involving systems
integration and finally heading HP's server marketing for Asean. He then joined
Intel Asia Pacific in 1994, heading up Intel's distribution business in South
Asia as the Regional Manager for South Asia. Subsequent to that he was involved
in one of Asia's leading IT distribution companies for a number of years. He
joined Palette Multimedia as General Manager
based in Singapore in 2002.
His core interests and specialty lie in the area of computer network design and
security.
Name : Eg Kaa Chee
Designation : Non Independent & Non Executive
Director
Identification no : 640602-10-7733
Appointment date : 26/05/97
Address : 12A,Jalan Kenanga SD 9/1D Bandar Sri
Damansara
52200 Kuala Lumpur Wilayah
Persekutuan Malaysia
Biography : Mr Eg Kaa Chee, aged 46, was appointed as
the Director of Palette Multimedia Bhd since 1997. He obtained his LLB from University
of Malaya in 1989. He started his legal practice in 1990. He specialized in
litigation and conveyancing. He is the
senior partner of Rajah Lau
& Associates. Presently
he is the Legal Advisor for MCA Kepong Division, Persatuan Wu Malaysia, Koh Chow
Association Malaysia, numeous companies and non-governmental organizations.
Name : Abdul Razak Bin Ipap
Designation : Independent Non Executive
Director
Identification no : 600528-05-5309
Appointment date : 01/06/01
Address : 11A, Jalan TTS 3/3
Taman Tasik, 43500 Semenyih
Selangor Darul Ehsan
Malaysia
Biography : En. Abdul Razak bin Dato' Hj. Ipap, aged
51, was appointed as the Director of
Palette Multimedia Bhd on 1 June 2001. He graduated with Bachelor of Science in
Agribusiness from Universiti Pertanian Malaysia (currently known as Universiti
Putra Malaysia) in 1988. He started his career by joining Shell Chemical Sdn
Bhd as Trainee Executive in year 1986, responsible for sales development for
the Company.
In 1988, he joined United
Engineers (M) Bhd as Business Development Executive where he was responsible
for developing new sales and managing the existing project portfolio. From 1993
to
1995, he was attached to Sime Logistics Sdn Bhd as Manager in
Operations and Marketing.
In 1995, he joined Celcom
(M) Sdn Bhd as Senior Manager (Logistics) responsible for the smooth flowing of
the entire company's logistic and was subsequently promoted as the Vice President
Logistics. He left Celcom in Year 2000 to start off his own career in IT
business.
Name : Thong Kooi Pin
Designation : Independent Non Executive Director
Identification no : 721107-14-5243
Appointment date : 18/12/06
Address : 10, Jalan 18
Taman Putra
68000 Ampang Selangor Darul
Ehsan Malaysia
Biography : Mr Thong Kooi Pin, aged 39, was appointed
as the Independent Non
Executive Director of Palette Multimedia Berhad on 18 December
2006. He graduated with a professional
degree in ACCA (Association of Chartered Certified Accountant) in 1998 and
admitted as member of Malaysian Institute of Accountants as Chartered
Accountant in
year 2000. He Further
obtained his Master degree in Business Administration majoring in Finance in
year 2005 from Universiti Putra Malaysia. He also sits on the Board of M-Mode
Berhad as the Executive Director since September 2005.
Name : Yong Shee Fatt
Designation : Independent Non Executive Director
Identification no : 610729-10-6335
Appointment date : 10/11/10
Address : No 7,Jalan PP3/2
Taman Putra Prima
47100 Puchong Selangor
Darul Ehsan Malaysia
Biography : Mr. Yoong Shee Fatt, a Malaysian, a
Malaysian, aged 50, was appointed as the Independent Non-Executive Director of
Palette Multimedia Berhad on 10 November 2010. He obtained his Diploma in
Advertising and Commercial Art from Malaysia Institute of Art. He started his
career with McCann Erickson Malaysia (International Advertising Agency) for a
short period before joining Bozel Kenyon and Earhart (BK&E) another
International Advertising Agency as a senior Visualize and Illustrator till mid
1988. From 1988 till 1998 he
started his own company,
Peter's Illustration & Design, being involved in day to day management and
overseeing Illustrator or designer works. He further expanded his company
through joint venture with Film Point to head One Degree North as a Managing
Director for a period of 6 years. His roles was to lead the company further
using the latest IT technologies, he was also responsible overseeing on the
production of Television Commercial Animation and final Post Production. He
subsequently sold his shares in 2004 and started Digital Bytes (till this date)
specialize in producing Lenticular Poster, Web Designs and Computer Imaging.
His core interests is in advertising and speciality lie in area in
Illustration, post production, Imaging and lenticular production using the
leading computers technologies at this time.
Name : Ng Yen Hoong
Designation : Company Secretary
Identification no : 670904-10-5060
Appointment date : 01/01/07
Address : 42A Jalan PJU 3/18H Tropicana Indah
47410 Petaling Jaya Selangor Darul Ehsan Malaysia
Name : Joanne Toh Joo Ann
Designation : Company Secretary
Appointment date : 18/08/11
Address : Malaysia
Staff employed : 25 employees
Key Advisors
Auditors : Cheng & Co.
18-2, Jalan 2/114, Kuchai Business Centre
Off Jalan Klang Lama
58200 Kuala Lumpur
Malaysia
Solicitors : Rajah, Lau & Associates
B-13-13, Block B, 13th Floor, Unit 13
Megan Phileo Avenue, 12, Jalan Yap Kwan Seng
50450 Kuala Lumpur
Malaysia
SHARE CAPITAL
Composition
Authorized Capital :
MYR 50,000,000
No of shares : 500,000,000 Ordinary Shares
Share par value :
MYR 0.1
Issued capital : MYR 29,052,650
Paid up capital : MYR 29,052,650
OWNERSHIP / SHAREHOLDERS
How listed : Major Shareholders Only
Composition
Shareholder name : Eg Kah Yee
Address : No. 1234, Jalan Timur 17
Jinjang Utara
52000 Kuala Lumpur Wilayah Persekutuan Malaysia
No. of shares : 55,405,804 Ordinary Shares
% of shares : 19.07%
Shareholder name : Lee Kin Hin
Address : Malaysia
No. of shares : 9,907,845 Ordinary Shares
% of shares : 3.41%
Shareholder name : Ho Fah See
Address : Malaysia
No. of shares : 7,500,000 Ordinary Shares
% of shares : 2.581%
Shareholder name : See Lee Ming
Address : Malaysia
No. of shares : 12,166,500 Ordinary Shares
% of shares : 4.187%
Shareholder name : Chee Pei Pei
Address : Malaysia
No. of shares : 5,056,250 Ordinary Shares
% of shares : 1.74%
Shareholder name : ACE PARTNER GROUP LIMITED
No. of shares : 4,916,700 Ordinary Shares
% of shares : 1.692%
Shareholder name : Ng Geok Lui
Address : Malaysia
No. of shares : 11,778,650 Ordinary Shares
% of shares : 4.053%
Shareholder name : Andy Teo Boon Huang
Address : Malaysia
No. of shares : 4,101,750 Ordinary Shares
% of shares : 1.411%
Shareholder name : Ooi Bee Eng
Address : Malaysia
No. of shares : 3,900,000 Ordinary Shares
% of shares : 1.342%
Shareholder name : Ang Yook Chu @ Ang Yoke Fong
Address : Malaysia
No. of shares : 2,921,300 Ordinary Shares
% of shares : 1.005%
Comments : The Subject is listed on the ACE Market Stock Exchange which is the second board Stock Exchange in Malaysia. As of May 2011, the Subject had a total of approximately 2,268.
RELATED COMPANIES &
CORPORATE AFFILIATIONS
Structure
Name : PALETTE SYSTEM SDN. BHD.
Affiliation type : Wholly-owned Subsidiary
Address : Malaysia
Comments : Development and marketing IT products.
Name : PT PALETTE MUTLIMEDIA
Affiliation type : Wholly-owned Subsidiary
Address : Indonesia
Comments : Selling hardware and IT consulting.
Name : PALETTE MULTIMEDIA PTE LTD
Affiliation type : Associate
Address : Singapore
BANK & MORTGAGES
Bank Details
Name of bank : Public Bank 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: 1,000,000.00
Date of Creation: 02-04-2001
Name of Chargee: HSBC BANK MALAYSIA BERHAD Charge Status: FULLY SATISFIED
Legal Fillings
Bankruptcy fillings : None reported.
Court judgements : None reported.
Tax liens : None reported.
Others : Palette Multimedia Bhd -vs- Asustek Computer Inc & Bumiputra-Commerce Bank
Berhad
On May 14, 2004, the Company filed a legal suit at the High Court of Kuala Lumpur for defects of goods valued at RM3.6 million against a supplier of the Company, which is a public listed company in Taiwan, specialising in manufacturing computer and multimedia related products. A sum of MYR 12,944,815.39 which is involved in this dispute has been reflected in the Company’s receivables in non-current assets.
On July 01, 2010, the Company filed a Notice of Appeal, against the decision of the Kuala Lumpur High Court on June 29, 2010.
FINANCIAL DATA
Description
Source of financial statement :
Public Record Sources
Financial statement date : 31/12/10
Type of accounts :
Full audited
Currency : Malaysia, Ringgit (MYR)
Exchange rate :
1 USD = MYR 2.98 as of 05-09-2011
Summarized Financial Information
|
Consolidation type |
: Consolidated |
Consolidated |
Consolidated |
|
Currency |
: Malaysia,
Ringgit (MYR) |
Malaysia, Ringgit (MYR) |
Malaysia, Ringgit (MYR) |
|
Denomination : |
(x1) One |
(x1) One |
(x1) One |
|
Date of
financial year end : |
30/06/11 |
31/12/10 |
31/12/09 |
|
Length of
accounts : |
6 months |
12 months |
12 months |
|
Sale turnover /
Income : |
3,879,000 |
2,431,652 |
3,551,761 |
|
Gross profit : |
1,012,000 |
937,107 |
1,616,663 |
|
Profit before
tax : |
-322,000 |
-2,936,254 |
-760,230 |
|
Net income : |
-322,000 |
-2,957,857 |
-760,230 |
|
Non current
assets : |
30,934,000 |
31,351,196 |
32,055,275 |
|
Current assets : |
9,868,000 |
7,667,524 |
11,072,269 |
|
Inventories : |
1,735,000 |
1,919,949 |
2,364,322 |
|
Total assets : |
40,802,000 |
39,018,720 |
43,127,544 |
|
Current
liabilities : |
17,937,000 |
15,831,479 |
16,985,287 |
|
Non current
liabilities : |
0 |
0 |
0 |
|
Total
liabilities : |
17,937,000 |
15,831,479 |
16,985,287 |
|
Share equity : |
22,865,000 |
23,187,241 |
26,142,257 |
|
Reserve : |
|
27,845 |
23,846 |
|
Retained earning : |
-10,530,000 |
-10,207,180 |
-7,250,129 |
Comments : The consolidated financial information
above relates to the Subject and its two subsidiaries
OPERATION DETAILS
Main activities : The Subject is an investment holding
company and also engages in the design, development and marketing of
information technology (IT) related products and services in Malaysia.
It also provides network access
control and management system for wireless local area network and local area
network in the enterprise environment; and Subscriber Management System to
Internet service providers, telco, and network operators in the public network
environment.
Subject also offers IT
consulting and professional services, such as design, development,
implementation, network management and business analysis of the technology and
network.
In addition, subject
distributes computing, networking, and wireless products in the ASEAN region to
system integrators, retail dealers, and retail chain.
Brand : Exinda networks Proxim wireless Dragon Wave Mobilette
Palette VOIP Solution
Purchases
International : Mainly from United States, China
Sales
Local : Yes
International : South East Asia
Key events :
Property & Assets
Premises : The Subject operates from premises located at the verified heading address consisting administrative office.
Branches : None reported.
Other property : Total NBV of property, plant and equipment as of 31-12-2010 was MYR 500,244.
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 wood products, palm oil, rubber, textiles, chemicals
Total imports : US$156.2 billion
Imports commodities : electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals
Export - major partners : US 15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand 5%, Hong Kong 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 : L/C, Prepayment, Credit up to 90 days
Sales Term
Local : Prepayment, Credit up to 90 days
International : Prepayment, Credit up to 90 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.46.12 |
|
|
1 |
Rs.74.18 |
|
Euro |
1 |
Rs.64.87 |
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.