MIRA INFORM REPORT

 

 

Report Date :

23.05.2012

 

IDENTIFICATION DETAILS

 

Name :

POLLUTION ENGINEERINGS (M) SDN BHD

 

 

Registered Office :

Menara Hap Seng 1 & 3, Jalan P Ramlee, 10th Floor, 50250 Kuala Lumpur, Wilayah Persekutuan, Malaysia.

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2011

 

 

Date of Incorporation :

10.09.1980

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Enviromental & Waste Water Treatment Engineering

 

 

No. of Employees :

100

 

 

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 :

Good

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.

:

62247-U

COMPANY NAME

:

POLLUTION ENGINEERINGS (M) SDN BHD

FORMER NAME

:

POLLUTION ENGINEERING SDN BHD (27/09/2006)

INCORPORATION DATE

:

10/09/1980

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

MENARA HAP SENG 1 & 3, JALAN P RAMLEE, 10TH FLOOR, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 798, 13TH MILE JALAN BALAKONG, 43300 BALAKONG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-89617999

FAX.NO.

:

03-89617629

EMAIL

:

pesb@po.jaring.my

WEB SITE

:

www.pollution-engineering.com

CONTACT PERSON

:

OH YING YING ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

74219

PRINCIPAL ACTIVITY

:

ENVIROMENTAL & WASTE WATER TREATMENT ENGINEERING

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 1,000,000.00 DIVIDED INTO
ORDINARY SHARES 278,571 CASH AND 721,429 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 13,840,820 [2011]

NET WORTH

:

MYR 27,038,685 [2011]

 

 

 

STAFF STRENGTH

:

100 [2012]

BANKER (S)

:

ALLIANCE BANK MALAYSIA BHD
AMBANK (M) BHD
HSBC 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

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

MYR 2,116,000 (USD 672,000)

 

 

 

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) enviromental & waste water treatment engineering.

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

MR. LIEW YUAN CHIN +

B6-6 HAPPY MANSION, JALAN 17/13, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

500101-04-5293 8005745

634,516.00

MS. CHEONG SIEW MOOI +

B6-6 HAPPY MANSION, JALAN 17/13, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

550201-08-6100 8181693

365,484.00

 

 

 

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

 

 

 

1,000,000.00

 

 

 

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


+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MS. OH YING YING

Address

:

11, PINGGIRAN MINANG 2, TAMAN MINANG, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A1952649

New IC No

:

710828-10-5176

Date of Birth

:

28/08/1971

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

14/03/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. LIW CHIN KIAT

Address

:

110 JALAN WAWASAN 3/9, PUSAT BANDAR PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

791130-14-5659

Date of Birth

:

30/11/1979

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. AZIRUL SALIHIN BIN ANUAR

Address

:

437 JALAN S 17/1G, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

780208-01-5405

Date of Birth

:

08/02/1978

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MS. CHEONG SIEW MOOI

Address

:

B6-6 HAPPY MANSION, JALAN 17/13, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

8181693

New IC No

:

550201-08-6100

Date of Birth

:

01/02/1955

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

18/10/1991

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. LIEW YUAN CHIN

Address

:

B6-6 HAPPY MANSION, JALAN 17/13, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

8005745

New IC No

:

500101-04-5293

Date of Birth

:

01/01/1950

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

10/09/1980

 

 

 

 

 

 

 

 

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

OH YING YING

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

TONY LIEW YUAN CHIN

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

W K LEE & CO

Auditor' Address

:

ROOM B, 70-2 WISMA MAHAMEWAH, JALAN SUNGAI BESI, 2ND FLOOR, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LAI CHEE WAH

 

IC / PP No

:

A1790078

 

New IC No

:

710106-05-5090

 

Address

:

VM 07-08, VILLAMAS APARTMENT, JALAN PIPIT, BANDAR PUCHONG JAYA, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MR. LIM MING TOONG

 

IC / PP No

:

6864620

 

New IC No

:

620916-08-5727

 

Address

:

42, JALAN BK 5B/1D, BANDAR KINRARA, 47180 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

2)

Name

:

AMBANK (M) BHD

 

 

 

 

 

3)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

4)

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

:

23/01/1995

Description Of Charge

:

CHARGE

Amount Secured

:

RM7,000,000.00

Description Of Property Affected

:

GM 191 LOT 798, MK KAJANG

Name & Address Of Chargee

:

CHUNG KHIAW BANK (MALAYSIA) BHD

BGN CHUNG KHIAW BANK, JLN RAJA LAUT, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 28/01/1995

Registered and Numbered 4 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

09/10/1995

Description Of Charge

:

OPEN CHARGE

Amount Secured

:

O/D

Description Of Property Affected

:

FACILITIES AGREEMENT DATED 9.10.1995 BETWEEN THE CHARGEE & POLLUTION ENGINEERING SDN BHD

Name & Address Of Chargee

:

MALAYSIAN FRENCH BANK BHD

MENARA MULTI PURPOSE CAPITAL SQUARE, 8 JLN MUNSHI ABDULLAH, 7TH FLR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 11/10/1995

Registered and Numbered 6 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

23/12/1999

Description Of Charge

:

N/A

Amount Secured

:

RM3,000,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

MULTI-PURPOSE BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 8 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

22/03/2001

Description Of Charge

:

OPEN CHARGE

Amount Secured

:

O/D

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 11 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

10/03/2004

Description Of Charge

:

N/A

Amount Secured

:

RM1,000,000.00

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 6

Date of Creation

:

28/12/2004

Description Of Charge

:

OPEN CHARGE

Amount Secured

:

o/d

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 13 In The Register of Charges



ENCUMBRANCE 7

Date of Creation

:

28/04/2005

Description Of Charge

:

N/A

Amount Secured

:

RM1,000,000.00

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 8

Date of Creation

:

14/02/2006

Description Of Charge

:

OPEN CHARGE

Amount Secured

:

N/A

Description Of Property Affected

:

GM 191 LOT 798, MK KAJANG

Name & Address Of Chargee

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 15 In The Register of Charges



ENCUMBRANCE 9

Date of Creation

:

16/10/2009

Description Of Charge

:

MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND FIRST PARTY LETTER OF SET-OFF

Amount Secured

:

RM1,000,000.00

Description Of Property Affected

:

FIXED CHARGE

Name & Address Of Chargee

:

AMBANK (M) BHD

BANGUNAN AMBANK GROUP, JALAN RAKA CHULAN, 22ND FLOOR, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 23/10/2009

Registered and Numbered 17 In The Register of Charges



ENCUMBRANCE 10

Date of Creation

:

11/08/2010

Description Of Charge

:

4TH LEGAL CHARGE

Amount Secured

:

RM1,130,000.00

Description Of Property Affected

:

LAND

Name & Address Of Chargee

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

MENARA UOB, JALAN RAJA LAUT, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 16/08/2010

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

:

ASIA



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, MIDDLE EAST

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

 

 

 

 

Services

:

ENVIROMENTAL & WASTE WATER TREATMENT ENGINEERING

 

 

 

Competitor(s)

:

KENCANA PETROLEUM BHD

RAMUNIA FABRICATORS SDN BHD

SUMATEC RESOURCES BHD

TANJUNG OFFSHORE BHD

ZELAN BHD

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMALL & MEDIUM ENTERPRISE

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

Ownership of premises

:

OWNED

 

Total Number of Employees:

YEAR

2012

 

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

100

 

 

 

 

 

 

 

 

 

Branch

:

NO

Other Information:


The SC is principally engaged in the (as a / as an) enviromental & waste water treatment engineering.

The SC is one of the pioneer environmental engineering technology provider in Malaysia, established since 1980.

The SC's major products and services include wastewater, sewage, river and pond treatment technologies, solid waste treatment and recycling technnologies, renewable energy and alternative fuel technologies and industrial R&D services.

The SC's mission is to become a "One Stop Solution Center for the Recycling and Treatment of Waste" by providing an efficient and economical solution to meet the growing needs for a cleaner environment.

 

PROJECTS


No projects found in our databank

RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA)database, but no latest development was noted in our investigation

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-89617999

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 798, 13TH MILE JALAN BALAKONG,43300,SERI KEMBANGAN,SELANGOR.

Current Address

:

LOT 798, 13TH MILE JALAN BALAKONG, 43300 BALAKONG, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

 

We contacted one of the staff from the SC and she provided some information on the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

76.39%

]

 

Profit/(Loss) Before Tax

:

Decreased

[

<3,198.71%>

]

 

Return on Shareholder Funds

:

Acceptable

[

10.72%

]

 

Return on Net Assets

:

Acceptable

[

13.60%

]

 

 

 

 

 

 

 

 

The increase in turnover could be due to the SC adopting an aggressive marketing strategy.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. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

201 Days

]

 

Debtor Ratio

:

Unfavourable

[

109 Days

]

 

Creditors Ratio

:

Unfavourable

[

71 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.18 Times

]

 

Current Ratio

:

Unfavourable

[

1.24 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

4.63 Times

]

 

Gearing Ratio

:

Favourable

[

0.31 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 :

 

 

 

 

 

 

The higher turnover had helped to reduce the SC's losses. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. 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

74219 : Other architectural and engineering activities and related technical consultancy service n.e.c.

 

 

INDUSTRY :

CONSTRUCTION

 

 

 


The construction sector will drive the national economy in 2012 by a budgeted growth of 7%, much has to be done now to meet the target, especially when the Malaysian construction industry is set to grow by a bullish RM92 billion in 2012 from RM85 billion in 2010. Timely awards and implementation of projects as per the 10th Malaysia Plan (10MP) and the Economic Transformation Programme (ETP) from now will contribute positively to the growth in 2012, as the projects require a gestation period in order to generate impact to the economy.


The Master Builders Association of Malaysia (MBAM) is concerned that the construction sector may underperform in 2011 if the sector's 4Q 2011 performance does not improve substantially. The construction sector had seen only 3% growth in 3Q 2011. The sector grew by only 3.8% and 0.6% in the first two quarters of 2011 respectively. The overall growth for 2010 was 5.3%.


Major building material producers, such as cement and steel manufacturers, have been reporting lesser demands for the year to date. For projects involving foreign direct investments (FDI) and domestic investors, the timely issue of construction permits will further improve confidence of the investors.


Rising building material costs are haunting construction companies again. Local builders say construction costs may rise at a faster pace than earnings, prompting players to seek greater liberty to import building materials and equipment at lower tariffs. Construction cost could rise more than 15% in 2012. For now, local builders can import steel products and cement at zero import duties. But players are lamenting that import taxes of 30% for other materials such as marble and tiles, are on the high side.


Rising expenses were stifling builders' profits as players were subject to fixed-price contracts. There would be cost overruns, delays and a higher risk of project failures when builders were unable to absorb the cost increases.


A planned and progressive award of projects will reduce any abrupt increase in demands for building materials and manpower which may jeopardise the targeted growth due to temporary shortages in supply as well as preventing unnecessary price increases which will burden contractors. The imminent enactment of the proposed Construction Industry Payment and Adjudication Act (CIPAA) will make the industry more healthy and sustainable for all players of the industry.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth


CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Established in 1980, the SC is principally engaged in the environmental and waste water treatment engineering. With its long presence in the industry coupled with its vast experiences in the business, the SC should have built up a certain goodwill with its client over times. At present, the paid up capital of the SC stands at RM1 million. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.


Throughout its years of establishment, the SC has built up an extensive network in the market. In an effort to capture a higher market shares, the SC has penetrated into the global market. Its customer's base has extended from Malaysia to Asia and Middle East countries. Such a wide marketing network has lowered the SC's commercial risk. As a whole, the business prospect of the SC remains bright. The SC's management is headed by Director, Oh Ying Ying and it has a workforce of about 100 employees in its operation. Its overall management capability is considered average.


During the financial year under review, the SC's turnover continued on an upward momentum, reaching RM13.84 million in 2011. Correspondingly, its pre-tax profit rose to RM2.89 million. This was achieved on the back of stronger performance of higher turnover. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. Moreover, 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.


The SC might be exposed to the forex risk as some of its raw materials are sourced from overseas suppliers. With its long presence in the market, it should have developed a strong supplier. Thus, it 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 shows an upward trend and this trend is likely to sustain in the near future. Moreover, the continuous efforts implemented by the government to boost the economic growth will further enhance the industry. With the promising outlook of the industry performance, the SC business potential should be favourable.


Based on the above condition, we recommend that credit be granted to the SC promptly.


PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

POLLUTION ENGINEERINGS (M) SDN BHD

 

Financial Year End

30/06/2011

30/06/2010

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

 

 

 

TURNOVER

13,840,820

7,846,872

 

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

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

Total Turnover

13,840,820

7,846,872

Costs of Goods Sold

<8,105,328>

<4,844,352>

 

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

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

Gross Profit

5,735,492

3,002,520

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

2,898,127

<93,527>

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

2,898,127

<93,527>

 

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

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

PROFIT/(LOSS) AFTER TAXATION

2,898,127

<93,527>

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

15,150,806

15,244,333

 

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

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

As restated

15,150,806

15,244,333

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

18,048,933

15,150,806

DIVIDENDS - Ordinary (paid & proposed)

<1,500,000>

-

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

16,548,933

15,150,806

 

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

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

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

Bank overdraft

710,611

660,576

Hire purchase

74,681

15,937

Term loan / Borrowing

12,883

13,490

 

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

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

 

798,175

690,003

 

 

BALANCE SHEET

 

 

POLLUTION ENGINEERINGS (M) SDN BHD

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

16,561,040

16,958,528

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

Development properties/expenditure

6,569,833

6,532,141

 

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

6,569,833

6,532,141

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

23,130,873

23,490,669

 

 

 

CURRENT ASSETS

 

 

Stocks

1,045,209

634,920

Trade debtors

4,114,881

3,936,446

Other debtors, deposits & prepayments

2,207,421

1,773,293

Short term deposits

1,354,225

1,120,555

Amount due from related companies

5,636,191

7,923,771

Cash & bank balances

6,198,752

1,148,890

Amount owing by customer

160,428

160,428

 

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

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

TOTAL CURRENT ASSETS

20,717,107

16,698,303

 

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

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

TOTAL ASSET

43,847,980

40,188,972

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

1,579,548

2,425,654

Other creditors & accruals

166,909

238,029

Hire purchase & lease creditors

20,713

57,239

Bank overdraft

8,289,546

8,867,376

Short term borrowings/Term loans

20,901

110,245

Bill & acceptances payable

5,070,699

1,935,000

Amounts owing to director

1,516,613

824,570

 

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

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

TOTAL CURRENT LIABILITIES

16,664,929

14,458,113

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

4,052,178

2,240,190

 

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

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

TOTAL NET ASSETS

27,183,051

25,730,859

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

1,000,000

1,000,000

 

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

 

 

 

RESERVES

 

 

Capital reserve

9,489,752

9,489,752

Retained profit/(loss) carried forward

16,548,933

15,150,806

 

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

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

TOTAL RESERVES

26,038,685

24,640,558

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

27,038,685

25,640,558

 

 

 

LONG TERM LIABILITIES

 

 

Long term loans

-

16,022

Hire purchase creditors

144,366

74,279

 

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

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

TOTAL LONG TERM LIABILITIES

144,366

90,301

 

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

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

 

27,183,051

25,730,859

 

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

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

 

 

 

 

 

FINANCIAL RATIO

 

 

POLLUTION ENGINEERINGS (M) SDN BHD

 

TYPES OF FUNDS

 

 

Cash

7,552,977

2,269,445

Net Liquid Funds

<736,569>

<6,597,931>

Net Liquid Assets

3,006,969

1,605,270

Net Current Assets/(Liabilities)

4,052,178

2,240,190

Net Tangible Assets

27,183,051

25,730,859

Net Monetary Assets

2,862,603

1,514,969

BALANCE SHEET ITEMS

 

 

Total Borrowings

8,475,526

9,125,161

Total Liabilities

16,809,295

14,548,414

Total Assets

43,847,980

40,188,972

Net Assets

27,183,051

25,730,859

Net Assets Backing

27,038,685

25,640,558

Shareholders' Funds

27,038,685

25,640,558

Total Share Capital

1,000,000

1,000,000

Total Reserves

26,038,685

24,640,558

LIQUIDITY (Times)

 

 

Cash Ratio

0.45

0.16

Liquid Ratio

1.18

1.11

Current Ratio

1.24

1.15

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

201

333

Debtors Ratio

109

183

Creditors Ratio

71

183

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.31

0.36

Liabilities Ratio

0.62

0.57

Times Interest Earned Ratio

4.63

0.86

Assets Backing Ratio

27.18

25.73

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

20.94

<1.19>

Net Profit Margin

20.94

<1.19>

Return On Net Assets

13.60

2.32

Return On Capital Employed

10.41

1.72

Return On Shareholders' Funds/Equity

10.72

<0.36>

Dividend Pay Out Ratio (Times)

0.52

0.00

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.93

UK Pound

1

Rs.88.14

Euro

1

Rs.70.87

 

 

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.