MIRA INFORM REPORT

 

 

Report Date :

23.07.2012

 

 

 

Tel. No.:

+603 9145 8888

Fax No.:

+603 9130 1226

 

IDENTIFICATION DETAILS

 

Name :

BERJAYA STEEL PRODUCT SDN BHD

 

 

Formerly Known As :

YOWAKI CORPORATION SDN BHD

 

 

Registered Office :

65, Wisma Kimtoo, Jalan Loke Yew, 55200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2010

 

 

Date of Incorporation :

24.05.1994

 

 

Com. Reg. No.:

301440-W

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturing of commercial catering equipment, commercial food service equipment, commercial kitchen equipment, stainless steel fabrication equipment

 

 

No. of Employees :

750

 

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

 

 


 

* Adopted abbreviations :            SC - Subject Company (the company enquired by you),    N/A - Not Applicable      

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

301440-W

COMPANY NAME

:

BERJAYA STEEL PRODUCT SDN BHD

FORMER NAME

:

YOWAKI CORPORATION SDN BHD (21/09/1996)

INCORPORATION DATE

:

24/05/1994

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

65, WISMA KIMTOO, JALAN LOKE YEW, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

191-5, 5TH FLOOR, WISMA CKE, JALAN LANCANG, OFF JALAN CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-92856600

FAX.NO.

:

03-91301226

EMAIL

:

export@berjayasteel.com

WEB SITE

:

www.berjayasteel.com

CONTACT PERSON

:

KENNY CHONG WENG CHOY ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

29

PRINCIPAL ACTIVITY

:

MANUFACTURING OF COMMERCIAL CATERING EQUIPMENT, COMMERCIAL FOOD SERVICE EQUIPMENT, COMMERCIAL KITCHEN EQUIPMENT, STAINLESS STEEL FABRICATION EQUIPMENT

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,500,000.00 DIVIDED INTO 
ORDINARY SHARES 300,000 CASH AND 1,200,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 123,754,357 [2010]

NET WORTH

:

MYR 37,155,271 [2010]

 

 

 

STAFF STRENGTH

:

750 [2012]

BANKER (S)

:

OCBC BANK (MALAYSIA) BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

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) manufacturing of commercial catering equipment, commercial food service equipment, commercial kitchen equipment, stainless steel fabrication equipment.

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


 

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



Name

Address

IC/PP/Loc No

Shareholding

(%)

DATO' CHONG WENG CHOY +

48, JALAN SL 3/2, TAMAN SUNGAI LONG, 43000 KAJANG, SELANGOR, MALAYSIA.

640209-08-5371 7290848

765,000.00

51.00

MR. CHONG LIAU KONG +

LOT 122, LORONG CEMPAKA 3, BANGI GOLF RESORT, 43650 BANDAR BARU BANGI, SELANGOR, MALAYSIA.

570201-08-6387 5554207

735,000.00

49.00

 

 

 

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

------

 

 

 

1,500,000.00

100.00

 

 

 

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

=====


+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. CHONG LIAU KONG

Address

:

LOT 122, LORONG CEMPAKA 3, BANGI GOLF RESORT, 43650 BANDAR BARU BANGI, SELANGOR, MALAYSIA.

IC / PP No

:

5554207

New IC No

:

570201-08-6387

Date of Birth

:

01/02/1957

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

24/05/1994

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

DATO' CHONG WENG CHOY

Address

:

48, JALAN SL 3/2, TAMAN SUNGAI LONG, 43000 KAJANG, SELANGOR, MALAYSIA.

IC / PP No

:

7290848

New IC No

:

640209-08-5371

Date of Birth

:

09/02/1964

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

24/05/1994

 

 

 

 

 

 

 

 

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

KENNY CHONG WENG CHOY

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

LEONG WAH SAN

 

Position

:

FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

ESTHER CHONG

 

Position

:

EXPORT MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

A D CHUN & CO

Auditor' Address

:

BLOCK C, C-7-1, MENARA UNCANG EMAS, 85, JALAN LOKE YEW, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. WONG CHOONG PENG @ CHUNG CHOONG PUN

 

IC / PP No

:

7974956

 

New IC No

:

461208-10-5875

 

Address

:

11A, JALAN SATU, TAMAN TUN ABD RAZAK, AMPANG JAYA, 68000 AMPANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

2)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

 

 

ENCUMBRANCE (S)



ENCUMBRANCE 1

Date of Creation

:

07/04/1995

Description Of Charge

:

LOAN AGREEMENT, ASSIGNMENT & POWER OF ATTORNEY

 

Amount Secured

:

RM650,000.00

Description Of Property Affected

:

LOT 3715, MK OF SETUL, DIST SEREMBAN

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
57 JLN SG BESI, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 17/04/1995

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

17/10/1996

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 2 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

11/11/1998

Description Of Charge

:

N/A

 

Amount Secured

:

RM4,650,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 3 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

12/06/2000

Description Of Charge

:

1ST CHARGE

 

Amount Secured

:

RM1,500,000.00

Description Of Property Affected

:

HS(D) 110909, 110910 & 110911, PT 16735, 16736 & 16737, MKSETUL,SEREMBAN, NEGERI SEMBILAN

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
57 JLN SG BESI, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 03/07/2000

Registered and Numbered 4 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

14/09/2001

Description Of Charge

:

AGREEMENT, ASSIGNMENT & CHARGE

 

Amount Secured

:

RM7,050,000.00

Description Of Property Affected

:

HS(D) 110904, 110909, 110910 & 110911, PT 16730, 16735, 16736 & 16737, MK SETUL

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
57 JLN SG BESI, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 21/09/2001

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 6

Date of Creation

:

05/08/2002

Description Of Charge

:

AGREEMENT, ASSIGNMENT & OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

FIXED CHARGE

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD
MENARA UOB, JLN RAJA LAUT, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 10/08/2002

Registered and Numbered 6 In The Register of Charges



ENCUMBRANCE 7

Date of Creation

:

02/08/2002

Description Of Charge

:

AGREEMENT & CHARGE

 

Amount Secured

:

RM4,100,000.00

Description Of Property Affected

:

HS(D) 110909 & 110904, PT 16735 & 16730, MK SETUL, DIST SEREMBAN, NEGERI SEMBILAN

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
57 JLN SG BESI, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 7 In The Register of Charges



ENCUMBRANCE 8

Date of Creation

:

02/08/2002

Description Of Charge

:

AGREEMENT & CHARGE

 

Amount Secured

:

RM11,150,000.00

Description Of Property Affected

:

HS(D) 110902, PT 16728, MK SETUL, DIST SEREMBAN, NEGERI SEMBILAN

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
57 JLN SG BESI, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 21/08/2002

Registered and Numbered 8 In The Register of Charges



ENCUMBRANCE 9

Date of Creation

:

08/07/2003

Description Of Charge

:

AGREEMENT, CHARGE, POWER OF ATTORNEY & DEBENTURE

 

Amount Secured

:

RM11,150,000.00

Description Of Property Affected

:

HS(D) 110909, 110910 & 110911, PT 16735, 16736 & 16737, LOT 10656, 10657 & 10658, MK SETUL, DIST SEREMBAN, NEGERI SEMBILAN

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
MENARA EASTERN, 303 JLN AMPANG, GRD FLR, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 22/07/2003

Registered and Numbered 9 In The Register of Charges



ENCUMBRANCE 10

Date of Creation

:

16/09/2004

Description Of Charge

:

AGREEMENT, CHARGE, POWER OF ATTORNEY & DEBENTURE

 

Amount Secured

:

RM11,150,000.00

Description Of Property Affected

:

HS(D) 110902 & 110904, PT 16728 & 16730, LOT 10649 & 10651, MK SETUL, DIST SEREMBAN, NEGERI SEMBILAN

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
MENARA GREAT EASTERN, 303 JLN AMPANG, GRD FLR, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 01/10/2004

Registered and Numbered 10 In The Register of Charges



ENCUMBRANCE 11

Date of Creation

:

20/10/2004

Description Of Charge

:

N/A

 

Amount Secured

:

RM6,770,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 11 In The Register of Charges



ENCUMBRANCE 12

Date of Creation

:

15/04/2005

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,700,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 12 In The Register of Charges



ENCUMBRANCE 13

Date of Creation

:

15/04/2005

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,800,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 13 In The Register of Charges



ENCUMBRANCE 14

Date of Creation

:

15/04/2005

Description Of Charge

:

N/A

 

Amount Secured

:

RM3,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 14 In The Register of Charges



ENCUMBRANCE 15

Date of Creation

:

13/12/2005

Description Of Charge

:

LOAN AGREEMENT, ASSIGNMENT & POWER OF ATTORNEY

 

Amount Secured

:

RM2,000,000.00

Description Of Property Affected

:

LOT 3715, MK OF SETUL, DIST SEREMBAN

 

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 15 In The Register of Charges



ENCUMBRANCE 16

Date of Creation

:

15/08/2007

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 16 In The Register of Charges



ENCUMBRANCE 17

Date of Creation

:

14/11/2007

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 17 In The Register of Charges



ENCUMBRANCE 18

Date of Creation

:

04/08/2009

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 18 In The Register of Charges



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

Import Countries     : CHINA,EUROPE,TAIWAN



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, MID EAST, AUSTRALIA, UNITED KINGDOM

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

COMMERCIAL CATERING/FOOD SERVICE/KITCHEN/STAINLESS STEEL FABRICATION EQUIPMENT, REFRIGERATOR

 

 

 

Brand Name

:

BERJAYA

 

 

 

 

Award

:

1 ) ASIA PACIFIC SUPER EXCELLENT BRAND AWARD Year :2008

 

 

 

 

Certification of Products

:

1 ) MS IEC 60335-2-49:1999

 

 

 

 

Competitor(s)

:

AIR PRODUCTS SPECIALISED PROCESS EQUIPMENT SDN BHD
CAMERON INTERNATIONAL MALAYSIA SYSTEMS SDN BHD
ERAWAN LMW INDUSTRIES SDN BHD
GLOBAL PROCESS SYSTEMS SDN BHD
PETRO-PIPE (SABAH) SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

MALAYSIA FOOD & BEVERAGE INDUSTRY

 

 

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

2007

 


GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

750

700

750

700

400

400

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of commercial catering equipment, commercial food service equipment, commercial kitchen equipment, stainless steel fabrication equipment.

The SC manufacture a wide range of products as follows;

1) Commercial Refrigerator

- chillers, confectionery showcase and others

2) Electrical Kitchen Equipments

- deep fryer, electrical griddle, insect killers, meat mincer, insect killer and others

3) Gas Equipments

- open burner, gas griddle, char broiler, kebab machines, gas bbq burner and others.

Most of the SC's electrical products are recognized as IEC standard ( International Electrotechnical Commission Standard ) and gas products are ANSI standard (American National Standards Institute).

The SC utilizes with mostly high automated and semi-automated machineries to ensure production of high quality products.

The SC's products are mainly used for hotels, cafeteria, restaurants and others. 

 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

603 91458888

Current Telephone Number

:

03-92856600

Match

:

NO

 

 

 

Address Provided by Client

:

191-5, 5TH FLOOR, WISMA CKE, JALAN LANCANG, OFF JALAN CHERAS 56100 KL

Current Address

:

191-5, 5TH FLOOR, WISMA CKE, JALAN LANCANG, OFF JALAN CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


we contacted one of the staff from the Admin Department. She provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2010

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2010

]

 

Return on Shareholder Funds

:

Unfavourable

[

8.98%

]

 

Return on Net Assets

:

Acceptable

[

13.25%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC's management have been efficient in controlling its operating costs. The unfavourable return on shareholders' funds and net assets could indicate that the SC's management was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

85 Days

]

 

Debtor Ratio

:

Favourable

[

31 Days

]

 

Creditors Ratio

:

Favourable

[

30 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The favourable debtors' days could be due to the good credit control measures implemented by the SC. 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

[

0.65 Times

]

 

Current Ratio

:

Unfavourable

[

1.42 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

:

Acceptable

[

8.18 Times

]

 

Gearing Ratio

:

Favourable

[

0.34 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : FAIR

 

 

 

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

29 : Manufacture of Machinery and Equipment n.e.c.

 

 

INDUSTRY :

MACHINERY

 

 

 


The Government has identified the machinery and equipment (M&E) industry to be one of the key areas for growth and development. The growth will focus on the manufacture of high value-added and high technology M&E.


The long term objectives outlined under the Third Industrial Master Plan (IMP3) for the M&E sector is to position Malaysia as :-


i) The regional production hub for high technology and specialised M&E; 


ii) The main distribution centre in the region for all types of M&E; and 


iii) The centre for maintenance related services, refurbishment, reconditioning and upgrading of high technology and specialised M&E.


The Master Builders Association Malaysia (MBAM) has suggested that the government reduce the import duty and sales tax for heavy machinery used in construction, on a systematic basis within two years, to five per cent from the 20 per cent currently.


The reduction would enable construction machinery companies as well as the industry, to remain competitive within ASEAN.


As a majority of the construction machinery in Malaysia is quite old, there would be huge opportunities for construction machinery companies to explore, penetrate and expand their businesses as well as to support the implementation of projects in the country.


The MBAM is encouraging the use of newer machinery to improve efficiency and also for safety purposes, as older ones, may have a higher safety risk due to metal fatigue.


However, the existence of an import duty and sales tax are still required to avoid large scale dumping of second hand machinery in Malaysia.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1994, the SC is a Private Limited company, focusing on manufacturing of commercial catering equipment, commercial food service equipment, commercial kitchen equipment, stainless steel fabrication equipment. With its long establishment in the market, the SC has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.


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 large entity, the SC has a steady workforce of 750 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. 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.


Despite the lower turnover, the SC's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. However, the SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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. Fortunately, being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 37,155,271, 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 maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. As the SC is long presence in the market, it should have acquired competitive edge against other players in the same fields.


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)

BERJAYA STEEL PRODUCT SDN BHD

 

Financial Year End

30/06/2010

30/06/2009

30/06/2008

Months

12

12

12

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

FULL

FULL

FULL

Currency

MYR

MYR

MYR

 

 

 

 

TURNOVER

123,754,357

124,704,792

116,318,112

 

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

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

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

Total Turnover

123,754,357

124,704,792

116,318,112

 

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

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

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

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

5,573,550

4,779,636

4,604,448

 

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

5,573,550

4,779,636

4,604,448

Taxation

<2,235,504>

<1,035,040>

<693,855>

 

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

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

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

PROFIT/(LOSS) AFTER TAXATION

3,338,046

3,744,596

3,910,593

 

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

As previously reported

32,317,225

28,936,581

25,025,988

Prior year adjustment

-

<363,952>

-

 

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

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

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

As restated

32,317,225

28,572,629

25,025,988

 

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

35,655,271

32,317,225

28,936,581

 

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

35,655,271

32,317,225

28,936,581

 

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

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

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

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

Bank overdraft

49,970

53,580

182,125

Hire purchase

175,041

167,578

147,431

Letter of credit

6,090

182,543

-

Term loan / Borrowing

544,632

618,750

612,063

 

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

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

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

 

775,733

1,022,451

941,619

 

 

 

BALANCE SHEET

 

 

BERJAYA STEEL PRODUCT SDN BHD

 

ASSETS EMPLOYED:

 

 

 

FIXED ASSETS

32,190,115

28,673,053

28,501,911

 

 

 

 

 

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

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

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

TOTAL LONG TERM ASSETS

32,190,115

28,673,053

28,501,911

 

 

 

 

CURRENT ASSETS

 

 

 

Stocks

28,698,720

20,350,973

39,328,199

Trade debtors

10,370,697

6,628,063

5,067,135

Other debtors, deposits & prepayments

7,949,029

11,151,995

478,925

Cash & bank balances

6,257,305

6,546,891

1,893,627

Others

-

702,335

-

 

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

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

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

TOTAL CURRENT ASSETS

53,275,751

45,380,257

46,767,886

 

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

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

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

TOTAL ASSET

85,465,866

74,053,310

75,269,797

 

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

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

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

 

 

 

 

CURRENT LIABILITIES

 

 

 

Trade creditors

10,080,430

1,685,297

9,919,179

Other creditors & accruals

21,501,935

22,013,118

17,501,155

Hire purchase & lease creditors

802,540

1,180,731

978,976

Bank overdraft

1,600,076

1,302,248

2,903,333

Short term borrowings/Term loans

757,261

476,013

583,149

Amounts owing to director

2,769,930

2,769,930

2,757,930

Provision for taxation

42,270

-

297,831

 

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

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

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

TOTAL CURRENT LIABILITIES

37,554,442

29,427,337

34,941,553

 

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

15,721,309

15,952,920

11,826,333

 

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

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

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

TOTAL NET ASSETS

47,911,424

44,625,973

40,328,244

 

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

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

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

 

 

 

 

SHARE CAPITAL

 

 

 

Ordinary share capital

1,500,000

1,500,000

1,500,000

 

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

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

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

TOTAL SHARE CAPITAL

1,500,000

1,500,000

1,500,000

 

 

 

 

RESERVES

 

 

 

Retained profit/(loss) carried forward

35,655,271

32,317,225

28,936,581

 

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

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

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

TOTAL RESERVES

35,655,271

32,317,225

28,936,581

 

 

 

 

 

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

37,155,271

33,817,225

30,436,581

 

 

 

 

LONG TERM LIABILITIES

 

 

 

Long term loans

8,825,995

8,290,729

7,262,923

Hire purchase creditors

736,386

1,538,926

1,606,805

Deferred taxation

1,193,772

979,093

1,021,935

 

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

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

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

TOTAL LONG TERM LIABILITIES

10,756,153

10,808,748

9,891,663

 

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

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

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

 

47,911,424

44,625,973

40,328,244

 

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

BERJAYA STEEL PRODUCT SDN BHD

 

TYPES OF FUNDS

 

 

 

Cash

6,257,305

6,546,891

1,893,627

Net Liquid Funds

4,657,229

5,244,643

<1,009,706>

Net Liquid Assets

<12,977,411>

<4,398,053>

<27,501,866>

Net Current Assets/(Liabilities)

15,721,309

15,952,920

11,826,333

Net Tangible Assets

47,911,424

44,625,973

40,328,244

Net Monetary Assets

<23,733,564>

<15,206,801>

<37,393,529>

BALANCE SHEET ITEMS

 

 

 

Total Borrowings

12,722,258

12,788,647

13,335,186

Total Liabilities

48,310,595

40,236,085

44,833,216

Total Assets

85,465,866

74,053,310

75,269,797

Net Assets

47,911,424

44,625,973

40,328,244

Net Assets Backing

37,155,271

33,817,225

30,436,581

Shareholders' Funds

37,155,271

33,817,225

30,436,581

Total Share Capital

1,500,000

1,500,000

1,500,000

Total Reserves

35,655,271

32,317,225

28,936,581

LIQUIDITY (Times)

 

 

 

Cash Ratio

0.17

0.22

0.05

Liquid Ratio

0.65

0.85

0.21

Current Ratio

1.42

1.54

1.34

WORKING CAPITAL CONTROL (Days)

 

 

 

Stock Ratio

85

60

123

Debtors Ratio

31

19

16

Creditors Ratio

30

5

31

SOLVENCY RATIOS (Times)

 

 

 

Gearing Ratio

0.34

0.38

0.44

Liabilities Ratio

1.30

1.19

1.47

Times Interest Earned Ratio

8.18

5.67

5.89

Assets Backing Ratio

31.94

29.75

26.89

PERFORMANCE RATIO (%)

 

 

 

Operating Profit Margin

4.50

3.83

3.96

Net Profit Margin

2.70

3.00

3.36

Return On Net Assets

13.25

13.00

13.75

Return On Capital Employed

12.62

12.32

12.54

Return On Shareholders' Funds/Equity

8.98

11.07

12.85

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

Contingent Liabilities

0

0

0

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.15

UK Pound

1

Rs.86.58

Euro

1

Rs.67.60

 

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.