MIRA INFORM REPORT

 

 

Report Date :           

26.04.2012

 

IDENTIFICATION DETAILS

 

Name :

BAHRU STAINLESS SDN. BHD

 

 

Registered Office :

C/O Ssa Professional Services Sdn. Bhd., Suite 3.6, Level 3, Menara Pelangi, No. 2 Jalan Kuning, Taman Pelangi, Johor Bahru, Johor Darul Takzim, Zip/Postal Code     80400

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

27.03.2008

 

 

Com. Reg. No.:

811430-H

 

 

Legal Form :

Private Company Limited By Shares

 

 

Line of Business :

Manufacturing stainless steel flat products.

 

 

No. of Employees :

320 employees (Subject); 7,400 (Acerinox Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 2,000,000

 

 

Status :

Moderate

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear 

 

NOTES:

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

 

ECGC Country Risk Classification List – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Malaysia

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 Bottom of Form

Identification details  Bottom of Form

 

 

Verified Address

Subject name :              BAHRU STAINLESS SDN. BHD.

 

Business address :        Level 2, TLP Building

Tanjung Langsat Industrial Complex

Town :                           Pasir Gudang

Province :                      Johor Darul Takzim

Zip/postal code :            81707

Country :                       Malaysia

Tel :                              +60 7 2546440

Fax :                             +60 7 2546441

Website                        : www.acerinox.es

 

Registered address :      C/o SSA PROFESSIONAL SERVICES SDN. BHD.

Suite 3.6, Level 3

Menara Pelangi

No. 2 Jalan Kuning

Taman Pelangi

Town :                           Johor Bahru

Province :                      Johor Darul Takzim

Zip/postal code :            80400

Country :                       Malaysia

 

Comments :                  The provided address Lot Ptd 3532, Jalan Tegar Perindustrian Tanjung & Langesat

81700 Pasir Gudang Johor, Malaysia belongs to the Subject's production facilities.

 

 

Summary details

 

Executive Summary

Date founded or registered :        27/03/2008

Legal form :                               Private Company Limited By Shares

Chief executive :                        Lucien Maurice Matthews

Issued & paid up capital :           MYR 1,151,600,000

Sales turnover :              MYR 0 (Non-consolidated 12 months, 31/12/2010)

Net income :                              MYR -16,937,000 (Non-consolidated 12 months, 31/12/2010)

Total fixed assets :                     MYR 1,447,237,000 (Non-consolidated 12 months, 31/12/2010)

Line of business :                       Manufacturing stainless steel flat products.

Staff employed :                         320 employees (Subject); 7,400 (Acerinox Group)


Credit risk opinion

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is steady

Management experience :           Management is adequately experienced

Financial performance :              Financial performance is gradually declining

Organization structure :              Organizational structure is stable

Detrimental :                  No detrimental records found

Payment history :                      No payment delays noted

Credit amount suggestion :         USD 2,000,000

Credit amount asked :                Not described.

Comments :                              The Subject has just begun commercial production however equity balance of

the Subject is stable. Credit can be granted however for larger credit amount than suggested guarantees from the Subject’s Parent Company would be beneficial.Statutory details

 

 

statutory details

 

Registry Data

Registration date :          27/03/2008

Legal form :                   Private Company Limited By Shares

Registration no              811430-H

Registered authority :     Companies Commission of Malaysia

Registry status :            Live/Active

Previous name :             None reported.

Change of legal form :     None reported.

Comments :                  The Subject started commercial production in January 2012.

 

 

Management / directors

 

Key Management

Name :              Lucien Maurice Matthews

Designation :     Chief Executive Officer

 

Name :              Peter Dekker

Designation :     Project Director

 

 


Board of directors / other appointments

 

Appointments

Name :                          Ramos Flores Benjamin

Designation :                 Director

Identification no :            XD567791

Appointment date :         27/03/08

Address :                      19-B, Jalan Stulang Darat

80300 Johor Bahru

Johor Darul Takzim

Malaysia

 

Name :                          Benardo Velazquez Herreros

Designation :                 Director

Identification no :            BE732618

Appointment date :         07/04/09

Address :                      C/ Rafael Villa 34 (EL Plantio)

Madrid 28023

Spain

 

Name :                          Hiroyuki Mizumoto

Designation                   Director

Identification no :            MS6365776

Appointment date :         16/04/09

Address :                      262-5-209 Kariyado

Nakahara-Ku, Kawasaki

Kanagawa

Japan

 

Name :                          Luis Gimeno Valledor

Designation :                 Director

Identification no :            BE733210

Appointment date :         02/12/10

Address :                      Calle del Alimoche 32

Las Rozas De Madrid

Madrid 28230

Spain

 

Name :                          Koji Mizumoto

Designation :                Director

Identification no :            TG1955948

Appointment date :         16/06/11

Address :                      C/o NISSHIN STEEL CO., LTD.

Shinkokusai Building

4-1, Marunouchi 3-Chome

Chiyoda-ku, Tokyo 100-8366

Japan


Name :                          Lucien Maurice Matthews

Designation :                 Director

Identification no :            478176551

Appointment date :         18/11/11

Address :                      No.170, Jalan Molek 2/17

Taman Molek

81100 Johor Bahru

Johor Darul Takzim

Malaysia

 

Name :                          Jerry Yin Wa

Designation :                 Company Secretary

Identification no :            660629-01-5634

Appointment date :         10/10/11

Address :                      20, Jalan Molek 3/16

Taman Molek

81100 Johor Bahru

Johor Darul Takzim

Malaysia

 

Staff employed : 320 employees (Subject); 7,400 (Acerinox Group)

 

Key Advisors

Auditors :                      KPMG

KPMG Tower, 8 First Avenue

Bandar Utama, 47800 Petaling Jaya

Selangor Darul Ehsan

Malaysia

 

 

Share capital

 

Composition

Authorized Capital :                    MYR 1,151,600,000

No of shares :                            1,151,600 Ordinary Shares

Share par value :                        MYR 1,000

Issued capital :                          MYR 1,151,600,000

Paid up capital :                         MYR 1,151,600,000

Changed in capital :                   The Subject increased its share capital from MYR 551,600,000 to MYR

1,151,600,000 on 27-08-2010.

 

 


ownership / shareholders

 

How listed :                   Full List

 

Composition

Shareholder name :        ACERINOX, S.A.

Address :                      Santiago de Compostela nº 100

28035 Madrid

Spain

No. of shares :               771,572 Ordinary Shares

 

Shareholder name :        NISSHIN STEEL CO., LTD.

Address :                      Shinkokusai Building

4-1, Marunouchi 3-Chome

Chiyoda-ku, Tokyo 100-8366

Japan

No. of shares :               345,480 Ordinary Shares

 

Shareholder name :        METAL ONE CORPORATION

Address :                      Celestine Shiba Mitsui Building

3-23-1 Shiba, Minato-ku

Tokyo 105-0014

Japan

No. of shares :               34,548 Ordinary Shares

 

 

Related companies & corporate Affiliations

 

Structure

 

Name :                          ACERINOX S.A.

Affiliation type :              Parent Company

Address :                      Santiago de Compostela nº 100

28035 Madrid, Spain

 

Comments :

Acerinox, S.A., together with its subsidiaries, engages in the manufacture,

transformation, and sale of stainless steel products. It offers a range of stainless

steel flat products, including slabs, billets, black coils, plates, hot rolled coils and

sheets, coil/sheet engraved products, flat bars, cold rolled coils, cold rolled

sheets, and circles. The company also provides stainless steel long products,

such as billets, wire rods, angles, hot rolled flat bars and re-bars, reinforced bars

in coils, cold rolled re-bars, hot rolled black bars, smooth turned bars, cold drawn

bars, wires, profiles, color coated wires, stainless prestressed wires, and stainless

reinforcement wires. It has operations primarily in Europe, the United States,

Africa, and Asia. The company was founded in 1970 and is headquartered in

Madrid, Spain.

Name :                          NISSHIN STEEL CO., LTD.

Affiliation type :              Minority Shareholder

Address :                      Shinkokusai Building

4-1, Marunouchi 3-Chome

Chiyoda-ku, Tokyo 100-8366

Japan

Comments :

Nisshin Steel Co., Ltd. and its subsidiaries principally engage in the manufacture

and sale of steel products in Japan and internationally. The company offers a

range of steel products, including coated steel, such as galvanized, aluminized,

and copper-plated steel sheet and strip; stainless steel sheet and strip; hot- and

cold-rolled ordinary steel sheet and strip; and special steel products. It is also

involved in the manufacture and sale of construction materials, light-gauge steel

shapes, prepainted galvanized steel sheets, and metal siding; processing and

sale of steel sheets and products; and cutting of strips. In addition, the company

manufactures and sells steel pipes and tubes, and processed products, as well as

fine color and decorative stainless steel products, and pipe fittings. Further, it

offers kitchen sets, bathtubs, sanitary devices, industrial machinery, and special

steel products; processes and sells building materials and lime for steelmaking;

and shearing, slitting, processing, and sale of stainless steel sheet and strips.

Additionally, the company produces and sells gasses, such as oxygen, nitrogen,

and argon; recycles and sells kraft paper; and is involved in the sea and land

transportation of iron and steel products, as well as sea transportation of coke. It

also engages in purchasing of materials, insurance operations, the sale of bicycle

parking lot systems, golf course management, and systems integration, as well as

provides installation, repair, and maintenance of facilities. The company markets

it products and services to various industries, such as construction, electrical

appliance, industrial machinery, electronics, and automotive industries. Nisshin

Steel was founded in 1928 and is headquartered in Tokyo, Japan

 

Name :                          METAL ONE CORPORATION

Affiliation type :              Minority Shareholder

Address :                      Celestine Shiba Mitsui Building

3-23-1 Shiba, Minato-ku

Tokyo 105-0014

Japan

Comments :

Metal One Corporation supplies steel products in Japan and internationally. It

offers seamless steel pipes, welded steel pipes, steel plates and bars, flange

beams, general and lightweight steel shapes, steel sheet and pipe piles, and

processed ferrous raw materials, as well as hot rolled and cold rolled steel plates

and sheets, surface-treated steel plates and sheets, electrical sheets, tinned steel

plates and sheets, wire rods, and secondary and tertiary wire rod products. The

company also provides structural, alloy, tool, ball-bearing, spring, free-cutting, and

heat-resistant steel products, as well as stainless steel scraps, sheets and strips,

and titanium products. It also offers supply chain management, consulting,

strategic finance, and information technology solutions. Metal One offers its

products for construction, housing, automotive, construction machinery,

shipbuilding, household electrical appliance, energy, machine tool, and tool

industries, as well as for the exteriors and interiors of buildings, elevators and

escalators, trains and automobiles, kitchens, and cooking tools. The company

was founded in 2003 and is headquartered in Tokyo, Japan with additional offices

in Niigata, Shizuoka, Hamamatsu, Hokuriku, Kobe, Himeji, Mizushima, Nagasaki,

Kimitsu, and Chita, Japan. It has subsidiary offices in Kakogawa, Fukuyama,

Tokuyama, Ube, Oita, Kitakyushu, and Nagasaki, Japan. Metal One Corporation

operates as a subsidiary of Mitsubishi Corporation.

 

Name :                          ACERINOX SOUTH EAST ASIA PTE LTD

Affiliation type :              Sister Company

Address :                      16 Raffles Quay

Hong Leong Building 33-02

048581 Singapore

Singapore

Comments :                  Marketing of stainless steel products.

 

Name :                          ACERINOX (INDIA) PRIVATE LIMITED

Affiliation type :              Sister Company

Address :                      Unit No. 504, Sagar Fortune Building

Waterfield Road, Plot 184, Bandra (West)

Mumbai 400050

India

Comments :                  Marketing of stainless steel products.

 

Name :                          ACERINOX AUSTRALASIA PTY LTD

Affiliation type :              Sister Company

Address :                      Suite 502, Level 5

781 Pacific Highway

Chatswood, NSW 2067

Sydney

Australia

Comments :                  Marketing of stainless steel products.

 

Name :                          ACERINOX ( SCHWEIZ ) A.G.

Affiliation type :              Sister Company

Address :                      Weihermattstrasse Nº 2

5507 Mellingen

Switzerland

Comments : Marketing of stainless steel products.

 

Name :                          ACERINOX ARGENTINA S.A.

Affiliation type :              Sister Company

Address :                      Av. Velez Sarsfield, 1535

1285 Buenos Aires

Argentina

Comments :      Marketing of stainless steel products.

 

Related companies and corporate affiliations comments

Other companies of the Acerinox Group should be considered affiliates of the Subject.


Bank & mortgages

 

Bank Details

Name of bank :              Ambank (M) 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                     : None reported.

 

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 3.03 as of 13-03-2012

 

Summarized Financial Information

Consolidation type                     Non Consolidated           Non Consolidated           Group Consolidated

Currency                                               Malaysia, Ringgit           Malaysia, Ringgit

(MYR)                                       (MYR)               Euro (EUR)

 

Denomination                                                    (x1) One                        (x1) One                        (x1) One                       

Date of financial year end                                    31/12/10                        31/12/09                        31/12/11

Length of accounts                                             12 months                     12 months                     12 months

Sale turnover / Income                                        0                                  0                                  4,672,244,000

Gross profit                                                       0                                  0                                  ---

Operating profit                                                                                                                          192,345,000

 Profit before tax                                                -16,899,000                   -7,074,983                     132,626,000

Net income                                                        -16,937,000                   -7,288,650                     66,183,000

Non current assets                                             1,145,081,000                516,314,238                  2,251,438,000

Current assets                                                   302,156,000                  71,217,608                    1,819,784,000

Inventories                                                         ---                                 --                                  1,119,428,000

Total assets                                                      1,447,237,000                587,531,846                  4,071,222,000

Current liabilities                                                214,123,000                  43,380,558                    1,201,712,000


Non current liabilities                                          574,166,000                  0                                  988,318,000

Total liabilities                                                    788.289,000                  43,380,558                    2,190,030,000    Share equity                                                 658,948,000                  544,151,288                  1,881,192,000

 

comments

 The non-consolidated financial information above relates to the Subject only.

 

The group's consolidated financial information above relates to the Subject's Ultimate Holding Company Acerinox S.A. and all its subsidiaries which include the Subject.

 

The Subject did not record any sale turnover for financial year end 2010 and 2009 as the Subject started commercial production in January 2012.

 

 

Operation details

 

Main activities :

The Subject is engaged in manufacturing stainless steel flat products.

 

The new plant will be an integrated stainless steel production plant with a melting capacity of 1 million MT/ year and 600,000 MT/ year of cold rolled production. It occupies 350 acres of land with an estimated investment of USD1.5 billion.

 

The Subject is part of Acerinox SA which is a Spain based company principally engaged in the manufacture, distribution and sale of flat and long stainless steel products. Its products portfolio comprises slabs, billets, plates, coils, sheets, bars, circles, wired rods, angles and profiles, among others. The Company’s facilities include a production plant located in Algeciras, service centers operating in Barcelona, La Coruna and Madrid, as well as factories in Spain, the United States, South Africa and Malaysia.

 

The Company is a parent of Grupo Acerinox, a group which comprises a number of controlled entities with operations established in Europe, North and South America, Africa, Asia and Oceania. In addition, the Company is a 24.24%-owned affiliate of Alba Participaciones SA.

 

Purchases

International :                 Asian countries, Europe

 

Sales

Local :                          Yes

International :                 Asian countries

 

Property & Assets

Premises :                    The Subject operates from premises located at the verified heading address consisting of                            administrative office.

 

Branches :                    In addition, the Subject operates from production facilities located at:

 

Plo 108 (Ptd 4069), Jalan Rumbia 3

Tanjung Langsat Industrial Complex

Pasir Gudang 81700, Johor Darul Takzim, Malaysia

Summarized country risk

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank                                          :   Central Bank of Malaysia

 

Reserve of foreign exchange & gold         :   US$133.7 billion as of 13 January 2012

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                                      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%,

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 :                                         L/C, Prepayment, Telegraphic transfer, Credit 30-90 days

 

Sales Term

Local :                                                  Prepayment, Bank transfer, Credit 30-90 days

International :                                         L/C, Telegraphic transfer, Credit 30-90 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.52.49

UK Pound

1

Rs.84.66

Euro

1

Rs.69.25

 

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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

 

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

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

 

 

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

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