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Report Date : |
03.03.2012 |
IDENTIFICATION DETAILS
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Name : |
MECHMAR COCHRAN BOILERS (M) SDN. BHD. |
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Formerly Known As : |
MECHMAR STEAM MANAGEMENT SDN. BHD. |
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Registered Office : |
No. 1 Jalan Perunding U1/17 Section U1 Hicom-Glenmarie Industrial Park Shah Alam Selangor Darul Ehsan 40150 |
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Country : |
Malaysia |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
13.03.1978 |
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Com. Reg. No.: |
38083-P |
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Legal Form : |
Private Company Limited By Shares |
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Line of Business : |
Marketing arm of industrial boilers, spare parts and providing after sales services. |
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No. of Employees : |
53 employees |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 110,000 |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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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 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Malaysia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Verified Address
Subject name : MECHMAR COCHRAN BOILERS (M) SDN. BHD.
Business address : No. 1 Jalan Perunding U1/17
Section U1
Hicom-Glenmarie Industrial Park
Town : Shah Alam
Province : Selangor Darul Ehsan
Zip/postal code : 40150
Country : Malaysia
Tel : +60 3 55693688
Fax : +60 3 55691368
Email : mcbsa@mechmar.com.my
Website : www.mechmar.com.my
Registered address : No. 1 Jalan Perunding U1/17
Section U1
Hicom-Glenmarie Industrial Park
Town : Shah Alam
Province : Selangor Darul Ehsan
Zip/postal code : 40150
Country : Malaysia
SUMMARY DETAILS
Executive Summary
Date founded or registered : 13/03/1978
Legal form : Private Company Limited By Shares
Chief executive : Tan Keng Ooi
Issued & paid up capital : MYR 1,250,000
Sales turnover : MYR 49,102,673 (Non-consolidated 12 months, 31/12/2009)
Net income : MYR 985,035 (Non-consolidated 12 months, 31/12/2009)
Total fixed assets : MYR 22,758,099 (Non-consolidated 12 months, 31/12/2009)
Line of business : Marketing arm of industrial boilers, spare parts and providing after sales services.
Staff employed : 53 employees
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 acceptable
Detrimental : No detrimental records found
Payment history : No payment delays noted
Credit amount suggestion: USD
110,000
Credit amount asked : Not described.
Registry Data
Registration date : 13/03/1978
Legal form : Private Company Limited By Shares
Registration no 38083-P
Registered authority : Companies Commission of Malaysia
Registry status : Live/Active
Previous name : The Subject was established under the name MECHMAR STEAM MANAGEMENT SDN. BHD. and changed to the current style on 31-12-2002.
Change of legal form : None reported.
Key Management
Name : Tan Keng Ooi
Designation : Chief Executive
Officer Name : Lim Boon Kuan
Designation : Project Engineering & Technical Director
Name : Sally Looi
Designation : Financial Manager
Appointments
Name : Muhammad Yakub Bin Hussaini
Designation : Director
Identification no : 730414-13-5859
Appointment date : 10/01/11
Address : 8 Sri Bahagia Petra Jaya
93050 Kuching Sarawak Malaysia
Name : Tan Keng Ooi
Designation : Director
Identification no : 760409-14-5873
Appointment date : 01/10/07
Address : No. 43, Jalan Batai
Damansara Heights
50490 Kuala Lumpur Wilayah Persekutuan Malaysia
Biography : Tan Keng Ooi is the son of Dato’ Tan Kean Wan, founder & largest shareholder of Mechmar Corporation (Malaysia) Berhad.
Name : Leong Oi Mooi
Designation : Company Secretary
Identification no : 570720-08-5650
Appointment date : 17/10/87
Address : No.20, Jalan SS 3/43
Kelana Jaya
47300 Petaling Jaya Selangor Darul Ehsan Malaysia
Staff employed : 53 employees
Key Advisors
Auditors : DELOITTE KASSIMCHAN
Level 19, Uptown 1, Damansara Uptown
1 Jalan SS 21/58
Petaling Jaya 47400
Selangor Darul Ehsan
Malaysia
Composition
Authorized Capital :
MYR 1,500,000
No of shares : 1,500,000 Ordinary Shares
Share par value :
MYR 1
Issued capital : MYR 1,250,000
Paid up capital : MYR 1,250,000
How listed : Full List
Composition
Shareholder name : Muhammad Yakub Bin Hussaini
Address : 8 Sri Bahagia Petra Jaya
93050 Kuching Sarawak Malaysia
No. of shares : 750,000 Ordinary Shares
% of shares : 60%
Shareholder name : Raquib Mohammad Fakhrul
Address : Malaysia
No. of shares : 500,000 Ordinary Shares
% of shares : 40%
Comments : The Subject was previously a wholly owned subsidiary of Mechmar Corporation (Malaysia) Berhad. Mechmar Corporation (Malaysia) Berhad was a public listed company since 1986 but was delisted on 10 June 2010 due to defaults in debt payments to Standard Chartered Bank (HK) Limited. Total amount of debt is USD
90,569,000 as at 31 December 2006.
The Subject was acquired along with MECHMAR BOILERS SDN. BHD. by the current individual shareholders in late 2010.
Structure
Name : MECHMAR BOILERS SDN. BHD.
Affiliation type : Sister Company
Address : No. 1 Jalan Perunding U1/17
Section U1
Hicom-Glenmarie Industrial Park
Shah Alam 40150
Selangor Darul Ehsan
Malaysia
Comments : Design, supply and installation of
industrial boilers and mini power plant system and servicing of boilers and
related products.
Bank Details
Name of bank : Ambank (M) Berhad
Address : Malaysia
Account details : Current Account
Name of bank : Public Bank Berhad
Address : Malaysia
Account details : Current Account
Comments : It is generally not the policy of local
banks to provide credit status information to non related parties, however
interested parties would be advised to consult first with the Subject if
banker's references are required.
Mortgages : Total of Charge: OPEN CHARGE Date of
Creation: 26-01-2005
Name of Chargee: RHB SAKURA MERCHANT BANKERS BERHAD Charge Status: FULLY
SATISFIED
Total of Charge: 3,780,000.00
Date of Creation: 26-01-2005
Name of Chargee: RHB SAKURA MERCHANT BANKERS BERHAD Charge Status: FULLY
SATISFIED
Total of Charge: 350,000.00
Date of Creation: 11-05-2011
Name of Chargee: AMBANK (M) BERHAD Charge Status: UNSATISFIED
Legal Fillings
Bankruptcy fillings : None reported.
Court judgements : None reported.
Tax liens : None reported.
Others : None reported.
Description
Source of financial statement :
Commercial Registry Filings
Financial statement date : 31/12/09
Type of accounts :
Full audited
Currency : Malaysia, Ringgit (MYR)
Exchange rate : 1 USD = MYR 3.00 as of 01-03-2012
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 : 31/12/09 31/12/08
Length of accounts : 12 months 12
months
Sale turnover / Income : 49,102,673 36,374,213
Gross profit : 6,722,721 6,989,020
Profit before tax : 1,219,649 1,159,950
Net income : 985,035 789,950
Non current assets : 264,385 388,357
Current assets : 22,493,714 24,766,763
Inventories : 716,208 741,132
Total assets : 22,758,099 25,155,120
Current liabilities : 19,623,082 22,955,231
Non current liabilities : 49,386 99,293
Total liabilities : 19,672,468 23,054,524
Share equity : 3,085,631 2,100,596
Retained earning : 1,835,631 850,596
Comments : For financial year end 31-12-2010, the
Subject filed for the certificate of exemption private company and their
accountants states that all liabilities are in good manner.
Main activities : The Subject is engaged as the marketing arm of industrial boilers, spare parts and providing after sales services.
The manufacturing division is operates by the Subject’s sister concern
MECHMAR BOILERS SDN. BHD.
Product & services : Mini power plant system Heat Recovery Boilers Solid Fuel - Fired Boilers Oil/Gas - Fired Boilers
Purchases
Local : Yes
International : No imports.
Sales
Local : Yes
International : Cambodia, Myanmar, South America, Singapore, Thailand, Sri Lanka
Key events : 28 Oct 2010
(I) PUBLIC REPRIMAND ON MECHMAR CORPORATION (MALAYSIA) BERHAD (II) PUBLIC REPRIMAND AND TOTAL FINES OF RM155,000
ON THE DIRECTORS
Breach of paragraphs 9.03(1) and 9.04(l) of the Listing Requirements of
Bursa Malaysia Securities Berhad ("LR") read together with paragraph
2.1(d) of Practice Note No. 1/2001 ("PN1") and paragraph 16.11(b) of the
LR
Enforcement proceedings were commenced against the Company notwithstanding that the Company had been de-listed on 21 June 2010 as the breach was committed while the Company was listed on the Official List of Bursa Securities.
Pursuant to paragraphs 9.03(1) and 9.04(l) of the LR and paragraph 2.1(d) of PN1, a listed issuer must make an immediate announcement of default in payments of either interest or principal sums or both in respect of the credit facility where the credit facility is 5% or more of the net assets of the listed issuer.
MECHMAR had breached paragraphs 9.03(1) and 9.04(l) of the LR read together with paragraph 2.1(d) of PN1 for failing to make an immediate announcement of the defaults in payment of credit facilities to Standard Chartered Bank (HK) Limited ("SCBHK") by its subsidiary, Independent Power Tanzania Ltd ("IPTL") since 31 October 2006.
The total amount outstanding of the defaulted credit facility to SCBHK as at
31 December 2006 was USD90,569,000 which represented more than
400% of the Company's net assets of RM76.941 million as at 31 December
2006 and IPTL was a major subsidiary as its total assets of USD161.3 million or approximately RM569.4 million represented approximately 84% of the total assets of MECHMAR as at 31 December 2006.
However, MECHMAR only made an announcement of the default under PN1 on 3 March 2009 and as the Company could not provide the requisite solvency declaration to Bursa Securities, the Company was classified as a Practice Note No. 17/2005 Company on the same date. MECHMAR was subsequently de-listed on 21 June 2010 for failing to regularise its financial condition.
MECHMAR's reasons for not making the announcement which were that the non-disclosure was in the interest of the Company and SCBHK had granted indulgence to the Company and has not commenced legal proceedings for recovery of the credit facilities, do not absolve the Company's obligation to comply with the LR.
It is also unacceptable for the Company to have in place a policy which only required the Company to make an announcement in accordance with PN1 in the event that a legal demand is made against the Company and no indulgence for a restructuring of the loan is granted by the lender which is contrary to the provisions of the LR.
Paragraph 16.11(b) of the LR states that a director of a listed issuer must not permit, either knowingly or where he had reasonable means of obtaining such knowledge, a listed issuer to commit a breach of the LR.
Bursa Securities has also found that the directors of MECHMAR had failed to discharge their duties pursuant to paragraph 16.11(b) of the LR in respect of compliance by the Company of its obligations under the LR.
Source: Bursa Malaysia Stock Exchange
17 Jun 2010
AMENDED PN17 : MECHMAR CORPORATION (MALAYSIA) BERHAD TO BE DE-LISTED
Bursa Malaysia Securities Berhad ("Bursa Securities") would like to announce that the securities of Mechmar Corporation (Malaysia) Berhad ("MECHMAR" or "the Company"), an Amended PN17 Company will be
de-listed and removed from the Official List of Bursa Securities on Monday,
21 June 2010.
The de-listing of MECHMAR is in accordance to the decision of Bursa Securities announced by the Company on 11 March 2010 as MECHMAR has failed to comply with the extended timeframe granted by Bursa Securities until 8 June 2010 to submit the regularisation plan to Bursa Securities for approval.
Further, MECHMAR has announced on 17 June 2010 that the Company will not be making an appeal to Bursa Securities in respect of Bursa Securities' decision to de-list MECHMAR from the Official List of Bursa Securities.
Effect of De-listing from the Official List of Bursa Securities
Upon the de-listing of MECHMAR, the Company will continue to exist but as unlisted entities. MECHMAR is still able to continue its operations and business and proceed with its corporate restructuring and shareholders can still be rewarded by the Company's performance. However, the shareholders will be holding shares which are no longer quoted and traded on Bursa Securities.
Source: Bursa Malaysia Stock Exchange
June 8, 2010
Mechmar loses appeal in Tanzania
PETALING JAYA: Mechmar Corp (M) Bhd has failed in its appeal for a stay in execution on the appointment of a provisional liquidator for its 70%
owned subsidiary Independent Power Tanzania Ltd (IPTL).
It told Bursa Malaysia yesterday that the Tanzania Court of Appeal had ruled on May 14 that Mechmar’s application for a stay of execution be refused.
VIP Engineering & Marketing Ltd, a minority shareholder of IPTL, had on Feb 25, 2002, filed a petition in the High Court of Tanzania to wind up IPTL, claiming oppression by Mechmar.
IPTL and Mechmar applied for a stay of proceedings on March 1, 2002.
The High Court had on Dec 16, 2008, issued a ruling to place IPTL under a provisional liquidator, pending hearing of the winding-up order, on a date yet to be determined.
As a result, all affairs and assets of IPTL were placed under the custody and management of a provisional liquidator.
Source: Star Publication
2010
On 16th December, 2008, the High Court of Tanzania issued a ruling to place Independent Power Tanzania Ltd,(IPTL)(70% owned subsidiary) under a Provisional Liquidator, pending hearing of the Winding Up Order, at a date to be determined. As a result, all affairs and assets of IPTL have been placed under the custody and management of the Provisional Liquidator and the Company has lost control over the power to govern the financial and operating policies of IPTL.
Accordingly, in 2008, the Group accounted for the results of IPTL up to
15th December, 2008 following the appointment of the Provisional Liquidator. The net profit of IPTL for the period 1st January, 2008 to 15th December, 2008 accounted for by the Group, based on unaudited management financial statements, amounted to RM18.2 million. The directors of the Company had not been able to obtain the audited financial statements of IPTL from the Provisional Liquidator.
As of 15th December, 2008, the assets and liabilities of IPTL were as follows:
Property, plant and equipment: RM397,496,153
Current assets: RM 293,192,454
Current liabilities: RM(558,753,284) Non-current liabilities: RM(28,834,617)
Shareholders equity: RM 103,100,706
Included in current assets is an amount of RM290.3 million (equivalent to US$83.4 million) owing by Tanzania Electric Supply Company Limited (“TANESCO”), its power purchaser, out of which an amount of RM215.4 million (equivalent to US$60.8 million) has been disputed while the remaining balance of RM74.9 million (equivalent to US$22.6 million) is undisputed.
On 15th November, 2008, IPTL has filed a legal claim against TANESCO and the Government of Tanzania (“GOT”) through the American Court in accordance with the Guarantee that has been given by the GOT. The American Court has directed that the case be arbitrated in the International Court of Settlement of Investment Disputes (“ICSID”).
While the outcome of the ICSID hearing has not been fully adjudicated, the directors of the Company are confident of the recovery of the amount
owing by TANESCO on the basis that
in 2001 a lengthy arbitration case was settled with TANESCO in favour of IPTL when the tribunal ordered that TANESCO must comply with its obligations under the Power Purchase Agreement (“PPA”) over the 20
year-concession period of the power plant commencing January 2002. This obligation includes the mandatory payment of the capacity charges under the PPA, regardless of power off-take.
Source: 2009 Annual report of Mechmar Corporation (Malaysia) Berhad
Property & Assets
Premises : The Subject operates from head office located at the verified heading address consisting of production facilities, warehouse and administrative office.
Branches : In addition, the Subject operates from branch office located at:
Lot 14, Jalan Timah
Pasir Gudang Industrial Estate
81700 Pasir Gudang Johor Darul Takzim Malaysia
Tel: +60 7 2513632
Gross Domestic Products (GDP) & Economic Overview
Central bank : Central Bank of Malaysia
Reserve of foreign exchange & gold : US$ 133.7 billion as of 13 January 2012
Gross domestic product - GDP : US$ 247.781 billion
GPP (Purchasing power parity) : US$ 442.01 billion of International dollars
GDP per capita - current prices : US$ 8,624
GDP - composition by sector : agriculture: 9.4% industry: 40.9% services: 49.7%
Inflation : 2008: 5.4%
2009: 0.6%
2010: 1.7%
Unemployment rate : 2008: 3.3%
2009: 3.6%
2010: 3.3%
Public debt
(General Government gross debt as a % GDP) : 2008: 42.8%
2009: 55.4%
2010: 54.2%
Government bond ratings : Standard & Poor's: A-/Stable/A-2
Moody's rating: A3
Moody's outlook: STA
Market value of publicly traded shares : US$420 billion
Largest companies in the country : CIMB Group Holdings (Banking), Sime Darby (Conglomerates), Public Bank Berhad (Banking), Maybank (Banking), Tenaga Nasional Berhad(Utilities), Petronas Chemicals, Maxis Berhad
Trade & Competitiveness Overview
Total exports : US$210.3 billion
Exports commodities : electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals
Total imports : US$156.2 billion
Imports commodities : electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals
Export - major partners : US 15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand 5%, Hong
Kong 4.6%
Import - major partners : Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan 5.7%, Thailand 5.3%, South Korea 4.9%, Germany 4.6%, Indonesia 4.2%
FDI Inflows : 2007: US$8,538 million
2008: US$7,318 million
2009: US$1,381 million
FDI Outflows : 2007: US$11,280 million
2008: US$14,988 million
2009: US$8,038 million
Best countries for doing business: 21 out of 183 countries
Global competitiveness ranking : 26 (ranking by country on a basis of 133, the first is the best)
Country and Population Overview
Total population : 28.23 million
Total area : 329,847 km2
Capital : Kuala Lumpur
Currency : Malaysia Ringgits (MYR)
Internet users as % of total population: 57.61%
Purchase Term
Local : Prepayment, Bank transfer, Document against
payment, Credit up to 90 days
Sales Term
Local : Prepayment, Bank transfer, Document
against payment, Credit up to 90 days
International : L/C, Document against payment, Credit
up to 90 days
Trade Reference/ Payment
Behaviour
Comments : As local and international trade
references were not supplied, the Subject's payment track record history cannot
be appropriately determined but based on our research, payments are believed to
be met without delay.
Investigation Note
Sources : Interviews and material provided by the
Subject
: Other official and local business
sources
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.35 |
|
|
1 |
Rs.78.68 |
|
Euro |
1 |
Rs.65.63 |
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 |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.