MIRA INFORM REPORT

 

 

Report Date :

17.07.2012

 

IDENTIFICATION DETAILS

 

Name :

METTUBE INTERNATIONAL SDN BHD

 

 

Registered Office :

The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Level 18, 59200 Kuala Lumpur, Wilayah Persekutuan, Malaysia.

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

05.05.2000

 

 

Com. Reg. No.:

513445-T

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading Of Copper Tubes

 

 

No. of Employees :

20

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

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

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

513445-T

COMPANY NAME

:

METTUBE INTERNATIONAL SDN BHD

FORMER NAME

:

METTUBE.COM SDN BHD (17/02/2010)

INCORPORATION DATE

:

05/05/2000

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

2, PERSIARAN KUALA LANGAT, HICOM INDUSTRIAL ESTATE, SECTION 27, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-51023252

FAX.NO.

:

03-51915405

CONTACT PERSON

:

PRATIK BASU ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

52332

PRINCIPAL ACTIVITY

:

TRADING OF COPPER TUBES

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 100,000.00 DIVIDED INTO 
ORDINARY SHARES 100,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 995,196,263 [2010]

NET WORTH

:

MYR 3,278,798 [2010]

 

 

 

STAFF STRENGTH

:

20 [2012]

BANKER (S)

:

CIMB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MATURE

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) trading of copper tubes.

 

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).

The immediate holding company of the SC is METTUBE SDN BHD, a company incorporated in MALAYSIA.

The ultimate holding company of the SC is METDIST S.A, a company incorporated in REPUBLIC OF PANAMA.

The major shareholder(s) of the SC are shown as follows :

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

METTUBE SDN BHD

THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

181893

100,000.00

100.00

 

 

 

---------------

------

 

 

 

100,000.00

100.00

 

 

 

============

=====

 

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. YAP KIM SWEE

Address

:

C45/46, JALAN TEBERAU, UKAY HEIGHTS, 68000 AMPANG, SELANGOR, MALAYSIA.

IC / PP No

:

7876595

New IC No

:

470920-10-5881

Date of Birth

:

20/09/1947

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

27/01/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. PRATIK BASU

Address

:

27 JALAN MAMBU, BUKIT BANDARAYA, BANGSAR, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

Z1800246

 

 

 

Date of Birth

:

09/03/1945

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

27/01/2010

 

 

 

 

 

 

 

 

 

 

 

 

 


MANAGEMENT

 

 

 

1)

Name of Subject

:

PRATIK BASU

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, PO BOX 10192, LEVEL 10, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. WONG WAI FOONG

 

IC / PP No

:

A0379022

 

New IC No

:

660510-10-6838

 

Address

:

1164, JALAN 17/46, HAPPY GARDEN, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. LIM HOOI MOOI

 

IC / PP No

:

5584641

 

New IC No

:

590814-10-6262

 

Address

:

28, JALAN 20/7, 46300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

BANKING

 

Banking relations are maintained principally with :

 

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

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

Overseas

:

YES

 

 

 



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

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA, EUROPE

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

COPPER TUBES

 

 

 

 

Competitor(s)

:

ADVANCED ELECTRONICS (M) SDN BHD
HAIER ELECTRICAL APPLIANCES (MALAYSIA) SDN BHD
HOCK SIN LEONG GROUP BHD
LG ELECTRONICS (M) SDN BHD
MIDEA SCOTT & ENGLISH ELECTRONICS SDN BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

YEAR

2012

2011

 

 

GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

20

20

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of copper tubes.

The SC only started its business 1st March 2010.

The SC is the related company of MettubeSdnBhd which is engaged in the manufacturing of copper tubes.

The SC is only focusing on the trading of copper tubes.

The products are mainly for air-conditioning and refrigeration industries.


PROJECTS


No projects found in our databank 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

60 3 5102 3288

Current Telephone Number

:

03-51023252

Match

:

NO

 

 

 

Address Provided by Client

:

NO. 2, PERSIARAN KULA LANGAT, SEKSYEN 27, 400400 SHAHALAM, SELANGOR

Current Address

:

2, PERSIARAN KUALA LANGAT, HICOM INDUSTRIAL ESTATE, SECTION 27, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 13th July 2012 we contacted one of the staff from the SC and she provided some information on the SC.

The SC has just started its business operation in March 2010.

The address provided is incomplete.


FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

<0.00%>

]

 

Profit/(Loss) Before Tax

:

Decreased

[

<158,926.29%>

]

 

Return on Shareholder Funds

:

Favourable

[

97.69%

]

 

Return on Net Assets

:

Favourable

[

339.87%

]

 

 

 

 

 

 

 

 

The higher turnover could be attributed to the favourable market condition.The management had succeeded in turning the SC into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

54 Days

]

 

Debtor Ratio

:

Unfavourable

[

107 Days

]

 

Creditors Ratio

:

Favourable

[

23 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. 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

:

Unfavourable

[

0.68 Times

]

 

Current Ratio

:

Unfavourable

[

1.01 Times

]

 

 

 

 

 

 

 

 

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

1.40 Times

]

 

Gearing Ratio

:

Unfavourable

[

108.39 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 higher turnover had helped to reduce the SC's losses. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. 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 : POOR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

 

 

 

 



INDUSTRY ANALYSIS

 

MSIC CODE

52332 : Retail sale of electrical household appliances, radio and television equipment

 

 

INDUSTRY :

ELECTRICAL & ELECTRONIC

 

 

 


The electrical & electronics (E&E) industry is the leading sector in Malaysia's manufacturing sector, contributing significantly to the country's manufacturing output (31 per cent), exports (48.7 per cent) and employment (33.7 per cent). Over the years, Malaysia's E&E industry has developed significant capabilities and skills for the manufacture of a wide range of semiconductor devices including photovoltaic cells and modules, high-end consumer electronics, and information and communication technology (ICT) products.


The E&E industry in Malaysia can be categorised into four sub-sectors:


a) Consumer Electronics


- This sub-sector includes the manufacture of LED television receivers, audio visual products such as blu-ray disc players/recorders, digital home theater systems, mini disc, electronics games consoles and digital cameras.


b) Electronic Components


- Products/activities which fall under this sub-sector include semiconductor devices, passive components, printed circuits and other components such as media, substrates and connectors.


c) Industrial Electronics


- This sub-sector consists of multimedia and information technology products such as computers, computer peripherals, telecommunication products and office equipment.


d) Electrical


- The major electrical products produced in Malaysia are household appliances such as air-conditioners, refrigerators, washing machines, vacuum cleaners and other electrical appliances.


Output of E&E contracted 4.9% during the first seven months of 2011 largely due to the global supply chain disruptions and lower global chip sales. Export earnings of E&E contracted 6.5% to RM136.7 billion due to lower shipments of electronic equipment and parts.


Malaysia's E&E capabilities are expected to be strengthened across the value chain with focus on attracting multinational companies to operate in the country. Under the E&E national key economic area targets, the sector is projected to increase gross national income by RM53bil to RM90bil by 2020, and provide 157,000 jobs.


Proposed projects under semiconductors include bringing in five mature technology fabricators and three in advanced packaging technology; setting up 50 integrated circuit (IC) design firms and two wafer substrate manufacturers. The aim is to have a concentration of leading global semiconductor firms; the current global market share is 5%.


In the solar manufacturing industry, it was proposed that domestic silicon production be increased from six kilotonnes to 114 kilotonnes by 2020. The production capacity of cell, wafers and modules should be increased by 10 times from 2.3GW to 23.3GW in 2020. Malaysia also aims to be a major manufacturing location for modules serving the Asian market. The global market for solar manufacturing is projected to increase from US$35bil in 2009 to US$290bil in 2020, with Asia as a major growth area.


Malaysia currently has 10% of the Light Emitting Diode (LED) market largely for the illumination sector. The target is to attract at least one major substrate supplier and one epitaxy to complete the value chain. Two more LED wafer fabrication plants are to be brought in, while the LED packaging business would be expanded by 15% per year. At least five solid state lighting companies will be developed into global leaders with a certification laboratory for LED products.


Malaysia has a strong E&E presence. Three out of five of the largest lighting companies are located in the country. Besides the Government's push for green technology, higher education for specialised LED areas, for example thermal and optics, should be encouraged.

 

 

OVERALL INDUSTRY OUTLOOK : Mature



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Started in 2010, the SC is a Private Limited company, focusing on trading of copper tubes. The SC has been in business for about 2 years and it has slowly been building up contact with its clients while competing in the industry. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. However, with a small paid up capital, the SC should put more efforts on its business to gain higher market share while competing aggressively in the market.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a small company, the SC's business operation is supported by 20 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


As at year ended 2010, the SC has reported total turnover and pre-tax profit of MYR 995,196,263 and MYR 3,232,115 respectively. The SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. However, due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. The high gearing ratio clearly implied that the SC was supported by more debt than equity. Nevertheless, given a positive net worth standing at MYR 3,278,798, the SC should be able to maintain its business in the near terms.


Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials.


The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.


The industry has reached its optimum level and is generally stable. It is saturated and very competitive. However, with strong backing from its holding company, it should have acquired competitive edge from its competitors.


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 MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

METTUBE INTERNATIONAL SDN BHD

 

Financial Year End

31/12/2010

28/02/2010

30/06/2009

30/06/2008

30/06/2007

Months

10

8

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

995,196,263

-

-

-

-

 

----------------

----------------

----------------

----------------

----------------

Total Turnover

995,196,263

-

-

-

-

Costs of Goods Sold

<952,184,734>

-

-

-

-

 

----------------

----------------

----------------

----------------

----------------

Gross Profit

43,011,529

-

-

-

-

 

----------------

----------------

----------------

----------------

----------------

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

3,232,115

<2,035>

<2,178>

<1,834>

<2,077>

 

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

3,232,115

<2,035>

<2,178>

<1,834>

<2,077>

Taxation

<29,201>

-

-

-

-

 

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

3,202,914

<2,035>

<2,178>

<1,834>

<2,077>

 

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

<24,116>

<22,081>

<19,903>

<18,069>

<15,992>

 

----------------

----------------

----------------

----------------

----------------

As restated

<24,116>

<22,081>

<19,903>

<18,069>

<15,992>

 

----------------

----------------

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

3,178,798

<24,116>

<22,081>

<19,903>

<18,069>

 

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

3,178,798

<24,116>

<22,081>

<19,903>

<18,069>

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

8,010,652

-

-

-

-

 

----------------

 

 

 

 

 

8,010,652

 

 

 

 

 

BALANCE SHEET

 

METTUBE INTERNATIONAL SDN BHD

 

CURRENT ASSETS

 

 

 

 

 

Stocks

147,978,354

-

-

-

-

Trade debtors

290,981,434

-

-

-

-

Other debtors, deposits & prepayments

4,150

1,750

600

-

-

Cash & bank balances

22,321,414

2

2

2

2

Others

814,826

-

-

-

-

 

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT ASSETS

462,100,178

1,752

602

2

2

 

----------------

----------------

----------------

----------------

----------------

TOTAL ASSET

462,100,178

1,752

602

2

2

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

60,979,383

-

-

-

-

Other creditors & accruals

275,056

600

22,681

19,903

18,069

Short term borrowings/Term loans

355,379,089

-

-

-

-

Other liabilities & accruals

2,407,310

-

-

-

-

Amounts owing to holding company

39,751,341

25,266

-

-

-

 

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

458,792,179

25,866

22,681

19,903

18,069

 

----------------

----------------

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

3,307,999

<24,114>

<22,079>

<19,901>

<18,067>

 

----------------

----------------

----------------

----------------

----------------

TOTAL NET ASSETS

3,307,999

<24,114>

<22,079>

<19,901>

<18,067>

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

100,000

2

2

2

2

 

----------------

----------------

----------------

----------------

----------------

TOTAL SHARE CAPITAL

100,000

2

2

2

2

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

3,178,798

<24,116>

<22,081>

<19,903>

<18,069>

 

----------------

----------------

----------------

----------------

----------------

TOTAL RESERVES

3,178,798

<24,116>

<22,081>

<19,903>

<18,069>

 

 

 

 

 

 

 

----------------

----------------

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

3,278,798

<24,114>

<22,079>

<19,901>

<18,067>

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

29,201

-

-

-

-

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

29,201

-

-

-

-

 

----------------

----------------

----------------

----------------

----------------

 

3,307,999

<24,114>

<22,079>

<19,901>

<18,067>

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

 

FINANCIAL RATIO

 

METTUBE INTERNATIONAL SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

22,321,414

2

2

2

2

Net Liquid Funds

22,321,414

2

2

2

2

Net Liquid Assets

<144,670,355>

<24,114>

<22,079>

<19,901>

<18,067>

Net Current Assets/(Liabilities)

3,307,999

<24,114>

<22,079>

<19,901>

<18,067>

Net Tangible Assets

3,307,999

<24,114>

<22,079>

<19,901>

<18,067>

Net Monetary Assets

<144,699,556>

<24,114>

<22,079>

<19,901>

<18,067>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

355,379,089

0

0

0

0

Total Liabilities

458,821,380

25,866

22,681

19,903

18,069

Total Assets

462,100,178

1,752

602

2

2

Net Assets

3,307,999

<24,114>

<22,079>

<19,901>

<18,067>

Net Assets Backing

3,278,798

<24,114>

<22,079>

<19,901>

<18,067>

Shareholders' Funds

3,278,798

<24,114>

<22,079>

<19,901>

<18,067>

Total Share Capital

100,000

2

2

2

2

Total Reserves

3,178,798

<24,116>

<22,081>

<19,903>

<18,069>

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.05

0.00

0.00

0.00

0.00

Liquid Ratio

0.68

0.07

0.03

0.00

0.00

Current Ratio

1.01

0.07

0.03

0.00

0.00

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

54

0

0

0

0

Debtors Ratio

107

0

0

0

0

Creditors Ratio

23

0

0

0

0

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

108.39

0.00

0.00

0.00

0.00

Liabilities Ratio

139.94

<1.07>

<1.03>

<1.00>

<1.00>

Times Interest Earned Ratio

1.40

0.00

0.00

0.00

0.00

Assets Backing Ratio

33.08

<0.24>

<0.22>

<0.20>

<0.18>

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

0.32

0.00

0.00

0.00

0.00

Net Profit Margin

0.32

0.00

0.00

0.00

0.00

Return On Net Assets

339.87

8.44

9.86

9.22

11.50

Return On Capital Employed

339.87

8.44

9.86

9.22

11.50

Return On Shareholders' Funds/Equity

97.69

8.44

9.86

9.22

11.50

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.92

UK Pound

1

Rs.85.47

Euro

1

Rs.67.15

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.