MIRA INFORM REPORT

 

 

Report Date :           

30.01.2012

 

IDENTIFICATION DETAILS

 

Name :

MAXCOVER STEEL INDUSTRIES (M) SDN. BHD.

 

 

Registered Office :

C/O Global Network Management Sdn. Bhd., No. 28-2, Lorong Batu Nilam 3a Bandar Bukit Tinggi, Klang, Selangor Darul Ehsan, Zip/Postal Code 41200

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.09.2010

 

 

Date of Incorporation :

26.05.2001

 

 

Com. Reg. No.:

548735-U

 

 

Legal Form :

Private Company Limited By Shares

 

 

Line of Business :

Trading in scrap metal and metal related products

 

 

No. of Employees :

17

 

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 110,000

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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                :           MAXCOVER STEEL INDUSTRIES (M) SDN. BHD.

Business address          :           Lot 14853 & Lot 14854, Jalan Udang Galah

Telok Gong

Town                             :           Port Klang

Province                        :           Selangor Darul Ehsan

Zip/postal code              :           42000

Country                         :           Malaysia

Tel                                :           +60 3 31343852 / 31342288

Fax                               :           +60 3 31342529

 

Registered address        :           C/o GLOBAL NETWORK MANAGEMENT SDN. BHD.

No. 28-2, Lorong Batu Nilam 3A Bandar Bukit Tinggi

Town                             :           Klang

Province                        :           Selangor Darul Ehsan

Zip/postal code              :           41200

Country                                                           :                       Malaysia

 

 

Summary details

 

Executive Summary

Date founded or registered          :   26/05/2001

Legal form                                 :   Private Company Limited By Shares

Chief executive                          :   Lum Wah Chai

Issued & paid up capital             :   MYR 500,000

Sales turnover                            :   MYR 21,592,435 (Non-consolidated 12 months, 30/09/2010)

Net income                                :   MYR 187,674 (Non-consolidated 12 months, 30/09/2010)

Total fixed assets                       :   MYR 6,695,080 (Non-consolidated 12 months, 30/09/2010)

Line of business             :   Trading in scrap metal and metal related products.

Staff employed                                                                        :   17 employees

 

 

Credit risk opinion

 

Company Analysis

Country risk                               :   Country risk is minimal

Operation trend                          :   Operational trend is steady

Management experience :   Management is reasonably experienced

Financial performance                :   Financial performance is fair

Organization structure                :   Organizational structure is stable

Detrimental                    :   No detrimental records found

Payment history                                    :   No payment delays noted

Credit amount suggestion     :   USD 110,000

Credit amount asked                  :   Not described

Statutory details

 

Registry Data

 

Registration date            :   26/05/2001

Legal form                     :   Private Company Limited By Shares

Registration no              : 548735-U

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                           :      Lum Wah Chai

Designation                   :      Director

 

Name                           :      Chia Hong Woo

Designation                                                   :            Director

 

 

Board of directors / other appointments

 

Appointments

Name                            :           Lum Wah Chai

Designation                   :           Director

Identification no              :           440520-10-5009

Appointment date           :           02/11/10

Address                        :           No. 54 Jalan 6

Off Jalan Chan Sow Lin

55200 Kuala Lumpur Wilayah Persekutuan Malaysia

 

Name                            :           Chia Hong Woo

Designation                   :           Director

Identification no              :           610128-10-6049

Appointment date           :           02/11/10

Address                        :           825 Jalan Rambai

Kawasan 12

42000 Port Klang Selangor Darul Ehsan Malaysia

 

Name                            :           Law Hoe Yen

Designation                   :           Company Secretary

Identification no              :           740904-08-6737

Appointment date           :           15/04/08

Address                                    No. 28-2, Lorong Batu Nilam 3A Bandar Bukit Tinggi

41200 Klang

Selangor Darul Ehsan

Malaysia

Staff employed                           17 employees

 

Key advisors

Auditors            :                       SKL & CO.

64B, Jalan SS 22/25

Damansara Utama

47400 Petaling Jaya Selangor Darul Ehsan Malaysia

 

 

Share capital

 

Composition

Authorized Capital          :   MYR 500,000

No of shares                  :   500,000 Ordinary Shares

Share par value              :   MYR 1

Issued capital                :   MYR 500,000

Paid up capital               :   MYR 500,000

Changed in capital         :   The Subject increased its share capital from MYR 100,000 to MYR 500,000 on

    12-02-2004.

 

 

 

ownership / shareholders

 

How listed                                            :   Full List

 

Composition

 

Shareholder name          Law Tien Lip

Address                        68 Jalan 27, Taman Klang Jaya

41200 Klang

Selangor Darul Ehsan

Malaysia

No. of shares                 250,000 Ordinary Shares

% of shares                   50%

 

Shareholder name          Low Thiam Peng

Address                        66 Jalan 27, Taman Klang Jaya

41200 Klang

Selangor Darul Ehsan

Malaysia

No. of shares                 250,000 Ordinary Shares

 

% of shares                            50%

 

 

 

Related companies & corporate Affiliations

 

Structure

Related companies and corporate affiliations comments : None Reported

 

 

Bank & mortgages

 

Bank Details

Name of bank    :   Malayan Banking 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: 100,000.00

Date of Creation: 14-09-2011

Name of Chargee: MALAYAN BANKING BERHAD

Charge Status: UNSATISFIED

 

Total of Charge: 300,000.00

Date of Creation: 16-12-2011

Name of Chargee: MALAYAN BANKING 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                        :   30/09/10

Type of accounts                                   :   Full audited

Currency                                              :   Malaysia, Ringgit (MYR)

Exchange rate                                      :   1 USD = MYR 3.04 as of 26-01-2012

 

 

Summarized Financial Information

Consolidation type                                                                                          :   Non Consolidated                    Non Consolidated

Currency                                                                                                         :   Malaysia, Ringgit (MYR)           Malaysia, Ringgit (MYR)

Denomination                                                                                                 :   (x1) One                                 (x1) One

Date of financial year end                                                      :   30/09/10                                 30/09/09

Length of accounts                                             :   12 months                                                                       12 months

 

Sale turnover / Income                         :

21,592,435

16,950,141

Gross profit                                        :

2,518,198

2,085,711

Profit before tax                                  :

235,534

163,787

Net income                                        :

187,674

98,267

Non current assets                             :

2,854,205

3,020,621

Current assets                                    :

3,840,875

4,253,268

Inventories                                          :

1,107,567

728,575

Total assets                                       :

6,695,080

7,273,889

Current liabilities                                 :

5,303,256

6,074,661

Non current liabilities                           :

177,205

172,283

Total liabilities                                    :

5,480,461

6,246,944

Share equity                                       :

1,214,619

1,026,945

Retained earning                                 :

714,619

526,945

 

 

Operation details

 

Main activities                            :   The Subject is engaged in trading in scrap metal and metal related products.

 

Purchases

Local                                                    :   Yes

International                                          :   Asian countries

 

Sales

Local                                                    :   Yes

International                                          :   Asian countries

 

 

Property & Assets

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

warehouse and administrative office.

 

Branches          :   None reported.

 

Other property   :   Total NBV of property, plant and equipment as of 30-09-2010 was MYR 446,372.

 

 

Summarized country risk

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank                                          :   Central Bank of Malaysia

 

Reserve of foreign exchange & gold         :   US$133.6 billion as of 31 December 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                                      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

Local                                                    :   Prepayment, Document against document, Credit 30-60 days

International                                          :   Prepayment, Document against document, Credit 30-60 days

 

Sales Term

Local                                                    :   Prepayment, Document against document, Credit 30-60 days

International                                          :   Prepayment, Document against document, Credit 30-60 days

 

 

Trade Reference/ Payment Behaviour

 

Comments                                            :   Our research and comments from local and international trade sources contacted agreed that the subject's payments are met without delays within agreed terms.

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.49.65

UK Pound

1

Rs.77.80

Euro

1

Rs.65.05

 

 

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.