MIRA INFORM REPORT

 

 

Report Date :

02.11.2012

 

IDENTIFICATION DETAILS

 

Name :

TEKNICAST HOLDINGS SDN. BHD.

 

 

 

 

Formerly Known As :

RENOWN STAR SDN. BHD. (05/11/2008)

 

 

Registered Office :

 

Suite 16-10, Level 16, Wisma Uoa Ii, 21, Jalan Pinang, 50450 Kuala Lumpur, Wilayah Persekutuan

 

 

 

 

Country :

Malaysia

 

 

 

 

Financials (as on) :

31.12.2011

 

 

 

 

Date of Incorporation :

08.05.2008

 

 

 

 

Com. Reg. No.:

816799-P

 

 

 

 

Legal Form :

Private Limited

 

 

 

 

Line of Business :

Investment Holding Company

 

 

 

 

No. of Employees :

500

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Slow

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA

 


* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

816799-P

COMPANY NAME

:

TEKNICAST HOLDINGS SDN. BHD.

FORMER NAME

:

RENOWN STAR SDN. BHD. (05/11/2008)

INCORPORATION DATE

:

08/05/2008

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE 16-10, LEVEL 16, WISMA UOA II, 21, JALAN PINANG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 2139, JALAN ENGGANG, BATU 9, KEBUN BARU, KUALA LANGAT, 42500 KUALA LANGAT, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31228968

FAX.NO.

:

03-31220620

CONTACT PERSON

:

KOW LAY MOI ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

65991

PRINCIPAL ACTIVITY

:

INVESTMENT HOLDING COMPANY

AUTHORISED CAPITAL

:

MYR 250,000.00 DIVIDED INTO
ORDINARY SHARE 250,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 250,000.00 DIVIDED INTO
ORDINARY SHARES 250,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 127,236,301 [2011]

NET WORTH

:

MYR <4,756,172> [2011]

 

 

 

STAFF STRENGTH

:

500 [2012]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

WEAK

 

 

 

COMMERCIAL RISK

:

HIGH

CURRENCY EXPOSURE

:

NIL

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) investment holding company.

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

(%)

HPDC ASIA MAURITIUS LIMITED

 

00212715

250,000.00

100.00

 

 

 

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

------

 

 

 

250,000.00

100.00

 

 

 

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

=====

+ Also Director

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

VINCENT LOW KOON HUAT VINCENT

Address

:

12 MILTONIA CLOSE, SINGAPORE 768192, FOREIGN, MALAYSIA.

IC / PP No

:

E3169140L

 

 

 

Date of Birth

:

23/09/1968

 

 

 

Nationality

:

SAINT HELENIAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

JOSEPH SINYOR

Address

:

70 SHELDON AVENUE, LONDON, N6 4ND, MALAYSIA.

IC / PP No

:

720101132

 

 

 

Date of Birth

:

16/08/1957

 

 

 

Nationality

:

BRITISH

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

LIONEL LIONEL SOH WEE CHUA

Address

:

BLK 104 WHAMPOA DRIVE, #09-62, SINGAPORE 323104, MALAYSIA.

IC / PP No

:

E3123616K

 

 

 

Date of Birth

:

08/02/1975

 

 

 

Nationality

:

SINGAPOREAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MS. KOW LAY MOI

Address

:

18 JALAN SETIA IMPIAN U13/6J, SETIA ALAM SEKSYEN U13, 40170 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

741202-10-5782

Date of Birth

:

02/12/1974

 

 

 

Nationality

:

MALAYSIAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. U CHANG ENG

Address

:

34, JALAN USJ 16/2C, SIME UEP, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

611010-02-5715

Date of Birth

:

10/10/1961

 

 

 

Nationality

:

MALAYSIAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

KOW LAY MOI

 

Position

:

GENERAL MANAGER

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

LEVEL 15, 1 SENTRAL, JALAN TRAVERS,K.L. CENTRAL, P.O.BOX 10192, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHEN KEOW CHING

 

 

 

 

 

New IC No

:

671001-10-6278

 

Address

:

19, JALAN BU 6/7, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MR. NG BOON SIANG @ LIM BOON SIANG @NG BOON SIANG

 

 

 

 

 

New IC No

:

420606-01-5639

 

Address

:

A-3A-3, KIARAVILLE CONDOMINIUM, CHANGKAT DUTA KIARA, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

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

 

ENCUMBRANCE (S)


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

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A

 

 

 


The SC is a service provider and it does not deal with trade suppliers.

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Percentage

:

0%

 

 

 

 

 

 

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Services

:

INVESTMENT HOLDING COMPANY

 

 

 

 

Competitor(s)

:

AMMB HOLDINGS BHD
CIMB GROUP HOLDINGS BHD
HUBLINE BHD
MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BHD
RHB CAPITAL BHD

 

 

 

 

 

 

 

 

 

Total Number of Employees:

YEAR

2012

 

 

GROUP

500

 

 

 

 

 

 

 

 

COMPANY

N/A

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) investment holding company.

The SC is an investment holding company.

The Group is involved in die casting and metal fabrication business.

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-31228968

Match

:

N/A

 

 

 

Address Provided by Client

:

KUALA LUMPUR WILAYAH PERSEKUTAUAN

Current Address

:

LOT 2139, JALAN ENGGANG, BATU 9, KEBUN BARU, KUALA LANGAT, 42500 KUALA LANGAT, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided is incorrect and incomplete.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Return on Shareholder Funds

:

Unfavourable

[

56.98%

]

 

Return on Net Assets

:

Unfavourable

[

<7.14%>

]

 

 

 

 

 

 

 

 

Although the SC's returns showed positive figures it is not reflective of the true situation. The SC incurred losses during the year and its shareholders' funds have turned red. The positive returns on shareholders' funds is the result of losses divided by negative shareholders' funds. The SC's management was inefficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Acceptable

[

1.11 Times

]

 

 

 

 

 

 

 

 

The SC has an adequate liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

<36.26 Times>

]

 

 

 

 

 

 

 

 

The SC has an unfavourable liabilities ratio and it may face financial difficulties if no additional capital is injected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

Overall financial condition of the SC : POOR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 

 

INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

 

 

 

 

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

65991 : Holding companies

 

 

INDUSTRY :

ECONOMY

 


The country's gross domestic product (GDP) expanded by 5.8% in the 3rd quarter ended Sept 30 2011 on a year-on-year basis as domestic demand remained resilient while private and public sector spending expanded amid uncertainty and volatility in the external front. The growth in the economy was unexpected as the median for a 4.8% rise while the expansion of the economy was largely supported by higher commodity prices and firm regional demand for non-electric and electronic manufactured goods. The 3rd quarter's economic performance was also due to the receding impact from the supply chain disruption stemming from the Japanese tsunami and earthquake disaster in March 2011 while income growth was supported by higher commodity prices, bonuses and public spending, which contributed to domestic demand.


According to Bank Negara, the risks to global economic growth has increased following developments in the 3rd quarter 2011 and very likely this will impact exports, however, the domestic demand is expected to remain resilient and to continue sustaining growth. Besides, due to the uncertainty and volatility in the external front, the outlook for the 4th quarter 2011 was uncertain at this point. Stronger exports and improved industrial output will lift the 3rd quarter growth but a strong growth in the 4th quarter and first half of 2012 is not in the offing which attributing it to external headwinds, especially supply chain snags from worsening floods in Thailand.


Overall consumption rose 9.9% from 2010 with public sector spending growing a significant 21.7% as funds were distributed for various infrastructure projects and other Economic Transformation Programme initiatives. Private sector spending grew 7.3% from an expansion in private consumption and continued expansion in capital spending. Mega infrastructure projects, such as My Rapid Transit and the River of Life, are going to generate significant multiplier effects in the economy.


Growth strengthened in most economic sectors except mining which declined 6.1%. The agriculture sector was expanded by 8.2%. The services sector grew 7% while the manufacturing sector expanded by 5.1% as supply-chain disruptions were reduced and following higher output of domestic-related industries. The construction sector grew by 3% led by a turnaround in the civil engineering sub-sector.


The interest rates remained supportive of growth unless there were significant developments that heightened growth risks or where inflation rose significantly. The overnight policy rate (OPR) was reduced to 2% in early 2009 due to major economic risks on the horizon, which was not the case this time around as the economy was not contracting. The prospects for a cut in the OPR would increase since the economy might just hit the lower end of the Government's 5% to 5.5% target in 2011 and faced slower growth in 2012.


The anticipated stronger growth in the 3rd quarter will indicate that it is unlikely that Malaysia will enter a recession in the short term but the possibility of the economy underperforming in the medium term has increased, given the softening of external demand following the higher recession risks in the OECD countries. The jump in exports for the past few months was due to sustained increases in demand from Southeast Asia and China.


In conclusion, the outlook for the Malaysian economy is going to be challenging, with the ongoing global economic slowdown in view of the debt crisis in Europe and the weakening of the US economy. Besdies, the loss of growth momentum in Malaysia will continue and become serious enough to sidetrack the country from its long-term development goals.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2008, the SC is a Private Limited company, focusing on investment holding company. The SC has been in business for 4 years and it has slowly been building up contact with its clients while competing in the industry. Having strong support from its shareholder has enabled the SC to remain competitive despite the challenging business environment.


Investigation revealed that the SC concentrates only on the local market. This narrow market segment has placed the SC at high business risk and limits its business expansion opportunities. Any adverse changes to the local economy might have a negative impact on the SC's business performance. Being a large entity, the SC has a steady workforce of 500 personnel to support its business operations. An unfavourable return on shareholders' funds implies that the SC's management capability is weak.


In year 2011, the SC has recorded a turnover of MYR 127,236,301 and it has suffered pre-tax losses of MYR 4,638,310. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC has an unfavourable liabilities ratio and it may face financial difficulties if no additional capital is injected. However, the SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. The SC's unfavourable financial performance over the years has wiped out its shareholders' funds to a deficit of MYR 4,756,172. Therefore, the SC as a going concern is much dependent on its ability to generate sufficient cash flow and obtain additional financing to meet its future obligations.


The SC is a service provider and it does not deal with trade suppliers.


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. Thus, the SC's future performance is very much depend on its marketing strategies in order to retain its position in the market.


Based on the above unfavourable condition, we regard granting credit to the SC to be quite risky. Hence, credit is not recommended.



 

PROFIT AND LOSS ACCOUNT

 

 

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

TEKNICAST HOLDINGS SDN. BHD.

 

Financial Year End

31/12/2011

Months

12

Consolidated Account

GROUP

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

SUMMARY

Currency

MYR

 

 

TURNOVER

127,236,301

 

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

Total Turnover

127,236,301

 

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

 

 

PROFIT/(LOSS) FROM OPERATIONS

<4,638,310>

 

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

PROFIT/(LOSS) BEFORE TAXATION

<4,638,310>

Taxation

1,928,300

 

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

PROFIT/(LOSS) AFTER TAXATION

<2,710,010>

 

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

As previously reported

<1,702,278>

 

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

As restated

<1,702,278>

 

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<4,412,288>

 

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<4,412,288>

 

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

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

TEKNICAST HOLDINGS SDN. BHD.

 

ASSETS EMPLOYED:

 

FIXED ASSETS

53,955,797

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

151,000

 

 

 

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

TOTAL LONG TERM ASSETS

54,106,797

 

 

CURRENT ASSETS

 

TOTAL CURRENT ASSETS

113,610,154

 

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

TOTAL ASSET

167,716,951

 

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

 

 

CURRENT LIABILITIES

 

TOTAL CURRENT LIABILITIES

102,755,840

 

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

NET CURRENT ASSETS/(LIABILITIES)

10,854,314

 

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

TOTAL NET ASSETS

64,961,111

 

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

 

 

SHARE CAPITAL

 

Ordinary share capital

250,000

 

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

TOTAL SHARE CAPITAL

250,000

 

 

RESERVES

 

Share premium

<593,884>

Retained profit/(loss) carried forward

<4,412,288>

 

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

TOTAL RESERVES

<5,006,172>

 

 

 

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

SHAREHOLDERS' FUNDS/EQUITY

<4,756,172>

 

 

LONG TERM LIABILITIES

 

TOTAL LONG TERM LIABILITIES

69,717,283

 

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

 

64,961,111

 

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

 

 

 

 

 

FINANCIAL RATIO

 

 

TEKNICAST HOLDINGS SDN. BHD.

 

TYPES OF FUNDS

 

Net Liquid Assets

10,854,314

Net Current Assets/(Liabilities)

10,854,314

Net Tangible Assets

64,961,111

Net Monetary Assets

<58,862,969>

 

 

BALANCE SHEET ITEMS

 

Total Liabilities

172,473,123

Total Assets

167,716,951

Net Assets

64,961,111

Net Assets Backing

<4,756,172>

Shareholders' Funds

<4,756,172>

Total Share Capital

250,000

Total Reserves

<5,006,172>

 

 

LIQUIDITY (Times)

 

Current Ratio

1.11

 

 

SOLVENCY RATIOS (Times)

 

Liabilities Ratio

<36.26>

Assets Backing Ratio

1.00

 

 

PERFORMANCE RATIO (%)

 

Operating Profit Margin

<3.65>

Net Profit Margin

<2.13>

Return On Net Assets

<7.14>

Return On Capital Employed

<7.14>

Return On Shareholders' Funds/Equity

56.98

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.78

UK Pound

1

Rs.86.77

Euro

1

Rs.69.71

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.