MIRA INFORM REPORT

 

 

Report Date :

12.11.2012

 

IDENTIFICATION DETAILS

 

Name :

HOGANAS BJUF ASIA PACIFIC SDN BHD

 

 

Registered Office :

62C, Jalan Ss 21/62, Damansara Utama, 47400 Petaling Jaya, Selangor,

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

08.07.2005

 

 

Com. Reg. No.:

702238-H

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Wholesale of industrial and agricultural machinery and equipment

 

 

No. of Employees :

5

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

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


EXECUTIVE SUMMARY

 

 

 

 

REGISTRATION NO.

:

702238-H

COMPANY NAME

:

HOGANAS BJUF ASIA PACIFIC SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

08/07/2005

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

62C, JALAN SS 21/62, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

NO 11-5, BLOCK E2, JALAN PJU 1/42A, DATARAN PRIMA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78035408

FAX.NO.

:

03-78035409

EMAIL

:

enquiry@hoganasbjuf.com.my

WEB SITE

:

www.hoganasbjuf.com.my

CONTACT PERSON

:

AKE ERIKSSON ( OPERATIONS MANAGER )

 

 

 

INDUSTRY CODE

:

51591

PRINCIPAL ACTIVITY

:

TRADING OF REFRACTORY MATERIALS

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 350,000.00 DIVIDED INTO
ORDINARY SHARES 350,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 20,484,953 [2011]

NET WORTH

:

MYR 1,660,342 [2011]

 

 

 

STAFF STRENGTH

:

5 [2012]

BANKER (S)

:

PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

CURRENCY EXPOSURE

:

HIGH

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) trading of refractory materials.

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

The immediate holding company of the SC is HOGANAS BJUF AB, a company incorporated in SWEDEN.

The ultimate holding company of the SC is BORGESTAD INDUSTRIES ASA, a company incorporated in NORWAY.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

HOGANAS BJUF AB

BOX 502, 267 25 BJUV, SWEDEN.

556264-6272

350,000.00

100.00

 

 

 

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

------

 

 

 

350,000.00

100.00

 

 

 

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

=====

 

+ Also Director



DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MS. TEO PECK EE

Address

:

52A, JALAN LAZAT 2, TAMAN GEMBIRA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

791119-14-5260

Date of Birth

:

19/11/1979

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHAI YONG FOO

Address

:

506, BLOCK B, TIARA KELANA CONDOMINIUM, JALAN SS 7/19, KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A0928740

New IC No

:

680201-08-7299

Date of Birth

:

01/02/1968

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

OLSEN THIRSTRUP

Address

:

SANKT PEDERSGATAN 13, 25437, HELSINGBORG, SWEDEN.

IC / PP No

:

34564385

 

 

 

 

 

 

 

 

 

Nationality

:

SWEDISH

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

GUNNAR PER AKE ERIKSSON

Address

:

22-01, SEPUTIH PERMAI CONDOMINIUM, JALAN TAMAN SEPUTIH, 58000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

80357962

 

 

 

 

 

 

 

 

 

Nationality

:

SWEDISH

Date of Appointment

:

01/06/2012

 

 

 

 

 

 

 

 

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

AKE ERIKSSON

 

Position

:

OPERATIONS MANAGER

 

 

 

 

 

 

AUDITOR

 

Auditor

:

FLY CHAN & CO

Auditor' Address

:

3-2, JALAN 2/76C, DESA PANDAN, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. WONG CHOW LAN

 

 

 

 

 

New IC No

:

621005-05-5353

 

Address

:

322 BUKIT LEMON, 70200 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

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

 

 

ENCUMBRANCE (S)


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

LEGAL CHECK AGAINST SC


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

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC


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

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

PAYMENT RECORD

 

 

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

NO

Percentage

:

0%

Overseas

:

YES

Percentage

:

100%

Import Countries

:

SWEDEN,BRAZIL



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

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

X

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

 

 

 

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

SOUTH EAST ASIA

Credit Term

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

END USERS

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

REFRACTORY MATERIALS

 

 

 

 

Competitor(s)

:

SIME DARBY INDUSTRIAL SDN BHD
TCIM SDN BHD
UMW (EAST MALAYSIA) SDN BHD
UMW CORPORATION SDN BHD
UNITED BINTANG BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

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

5

5

4

10

5

5

 

 

 

 

Branch

:

NO

 

Other Information:


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

The SC mainly sells the high temperature bricks.

The SC's products ranges are as follows:

* Magnesite and dolomite bricks are mainly used in the upper transition, burning and lower transition zones of the rotary kiln itself.

* High-alumina brick is found in the safety zone of the rotary kiln, as well as in kiln hoods and coolers.

* Fireclay brick is employed extensively - in the preheater, in the rotary kiln inlet zone, in tertiary air ducts, and in kiln hoods and coolers.

* Cement or mortar is often used to join bricks. Cements harden at room temperature, while mortars normally require a temperature of at least 300 degrees before it properly cured.

The SC's products are mainly used for industrial sectors.

 

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

037803540

Current Telephone Number

:

03-78035408

Match

:

NO

 

 

 

Address Provided by Client

:

N/A

Current Address

:

NO 11-5, BLOCK E2, JALAN PJU 1/42A, DATARAN PRIMA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

N/A

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 6th November 2012 we contacted one of the staff from the SC and she provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Return on Shareholder Funds

:

Favourable

[

77.04%

]

 

Return on Net Assets

:

Favourable

[

103.58%

]

 

 

 

 

 

 

 

 

Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

3 Days

]

 

Debtor Ratio

:

Favourable

[

4 Days

]

 

Creditors Ratio

:

Unfavourable

[

138 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. 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

[

1.19 Times

]

 

Current Ratio

:

Unfavourable

[

1.22 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

:

Favourable

[

95.76 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the SC : STABLE

 

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

51591 : Wholesale of industrial and agricultural machinery and equipment and wholesale of construction and civil engineering machinery and equipment

 

 

INDUSTRY :

MACHINERY

 

 

 


Malaysia is presently the leading manufacturer of automation machinery and equipment (M&E) for the electrical and electronics (E&E) industry in the ASEAN region with a total of 22 companies in production. The machinery and equipment industry has expanded and produce a diverse range of machinery which give importance to the overall industrial development of the country, due to its cross cutting linkages with all industrial sectors.


Malaysia implemented Industrial Master Plan 3 (IMP3, 2006-2020), which the machinery and equipment industry has been established as one of the key areas for growth and development. The implementation focused on the manufacture of high value-added and high technology machinery and equipment (M&E). Under this plan, M&E will positioned Malaysia as the regional production hub for high technology and specialized M&E in the ASEAN region for 2012.


Furthemore for the year 2012, Malaysia is the largest manufacturing hub of boilers in the Southeast Asia region. The exports are mainly directed to the neighboring countries such as Indonesia, Philippines, Thailand and Cambodia.


For enhance the machinery and equipment (M&E), the government has introduced two major tax incentives for companies investing in the manufacturing sector where the pioneer status and the investment tax allowance. The tax incentives would remain to be a competitive industry within ASEAN.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 2005, the SC is a Private Limited company, focusing on trading of refractory materials. Having been in business for 7 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a small company, the SC's business operation is supported by 5 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


As at year ended 2011, the Group has reported total turnover and pre-tax profit of MYR 20,484,953 and MYR 1,701,880 respectively. The Group has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The Group is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Besides, being a zero geared company, the Group virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 1,660,342, the Group 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. Investigation revealed that the SC's supplies are 100% sourced from overseas countries. As an imported oriented company, its forex exposure is high. The SC faces foreign currency fluctuation which may affect its overall operating costs.


The poor payment habit may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.


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 condition, we recommend credit be granted to the SC promptly.


PROFIT AND LOSS ACCOUNT

 

 

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

HOGANAS BJUF ASIA PACIFIC SDN BHD

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

12

Consolidated Account

GROUP

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

20,484,953

22,161,196

21,519,415

25,337,118

26,501,342

 

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

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

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

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

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

Total Turnover

20,484,953

22,161,196

21,519,415

25,337,118

26,501,342

Costs of Goods Sold

<14,081,444>

<17,114,381>

<15,194,028>

-

-

 

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

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

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

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

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

Gross Profit

6,403,509

5,046,815

6,325,387

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

1,701,880

1,839,245

3,204,317

3,516,889

4,478,447

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,701,880

1,839,245

3,204,317

3,516,889

4,478,447

Taxation

<422,676>

<566,073>

<752,300>

<1,053,224>

<1,269,064>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,279,204

1,273,172

2,452,017

2,463,665

3,209,383

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

1,431,138

3,007,966

3,055,949

3,592,281

382,898

 

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

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

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

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

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

As restated

1,431,138

3,007,966

3,055,949

3,592,281

382,898

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

2,710,342

4,281,138

5,507,966

6,055,946

3,592,281

DIVIDENDS - Ordinary (paid & proposed)

<1,400,000>

<2,850,000>

<2,500,000>

<2,999,997>

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,310,342

1,431,138

3,007,966

3,055,949

3,592,281

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

17,960

28,942

30,577

49,998

30,476

 

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

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

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

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

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

 

17,960

28,942

30,577

49,998

30,476

 

BALANCE SHEET

 

HOGANAS BJUF ASIA PACIFIC SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

240,814

255,653

107,767

121,483

95,506

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Goodwill on consolidation

-

-

77,398

193,495

309,591

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

-

-

77,398

193,495

309,591

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

240,814

255,653

185,165

314,978

405,097

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

172,500

-

-

16,583

136,443

Trade debtors

207,073

4,463,536

502,970

2,869,489

4,113,829

Other debtors, deposits & prepayments

56,279

28,291

57,626

24,497

75,816

Amount due from holding company

2,760,400

1,858,500

2,209,500

2,196,000

2,174,850

Cash & bank balances

4,710,386

1,954,451

8,660,082

5,783,485

5,360,716

 

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

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

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

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

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

TOTAL CURRENT ASSETS

7,906,638

8,304,778

11,430,178

10,890,054

11,861,654

 

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

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

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

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

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

TOTAL ASSET

8,147,452

8,560,431

11,615,343

11,205,032

12,266,751

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

5,310,051

4,546,490

6,616,569

4,385,176

5,556,163

Other creditors & accruals

99,110

320,804

124,551

322,460

300,680

Amounts owing to holding company

1,043,093

1,733,526

1,147,801

2,470,399

1,703,938

Provision for taxation

34,856

178,473

368,456

621,048

763,689

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

6,487,110

6,779,293

8,257,377

7,799,083

8,324,470

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,419,528

1,525,485

3,172,801

3,090,971

3,537,184

 

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

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

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

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

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

TOTAL NET ASSETS

1,660,342

1,781,138

3,357,966

3,405,949

3,942,281

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

350,000

350,000

350,000

350,000

350,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

350,000

350,000

350,000

350,000

350,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

1,310,342

1,431,138

3,007,966

3,055,949

3,592,281

 

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

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

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

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

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

TOTAL RESERVES

1,310,342

1,431,138

3,007,966

3,055,949

3,592,281

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,660,342

1,781,138

3,357,966

3,405,949

3,942,281

 

 

 

 

 

 

 

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

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

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

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

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

 

1,660,342

1,781,138

3,357,966

3,405,949

3,942,281

 

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

HOGANAS BJUF ASIA PACIFIC SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

4,710,386

1,954,451

8,660,082

5,783,485

5,360,716

Net Liquid Funds

4,710,386

1,954,451

8,660,082

5,783,485

5,360,716

Net Liquid Assets

1,247,028

1,525,485

3,172,801

3,074,388

3,400,741

Net Current Assets/(Liabilities)

1,419,528

1,525,485

3,172,801

3,090,971

3,537,184

Net Tangible Assets

1,660,342

1,781,138

3,280,568

3,212,454

3,632,690

Net Monetary Assets

1,247,028

1,525,485

3,172,801

3,074,388

3,400,741

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

0

0

0

Total Liabilities

6,487,110

6,779,293

8,257,377

7,799,083

8,324,470

Total Assets

8,147,452

8,560,431

11,615,343

11,205,032

12,266,751

Net Assets

1,660,342

1,781,138

3,357,966

3,405,949

3,942,281

Net Assets Backing

1,660,342

1,781,138

3,357,966

3,405,949

3,942,281

Shareholders' Funds

1,660,342

1,781,138

3,357,966

3,405,949

3,942,281

Total Share Capital

350,000

350,000

350,000

350,000

350,000

Total Reserves

1,310,342

1,431,138

3,007,966

3,055,949

3,592,281

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.73

0.29

1.05

0.74

0.64

Liquid Ratio

1.19

1.23

1.38

1.39

1.41

Current Ratio

1.22

1.23

1.38

1.40

1.42

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

3

0

0

0

2

Debtors Ratio

4

74

9

41

57

Creditors Ratio

138

97

159

63

77

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

0.00

Liabilities Ratio

3.91

3.81

2.46

2.29

2.11

Times Interest Earned Ratio

95.76

64.55

105.80

71.34

147.95

Assets Backing Ratio

4.74

5.09

9.37

9.18

10.38

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

8.31

8.30

14.89

13.88

16.90

Net Profit Margin

6.24

5.75

11.39

9.72

12.11

Return On Net Assets

103.58

104.89

96.33

104.73

114.37

Return On Capital Employed

103.58

104.89

94.16

99.10

106.05

Return On Shareholders' Funds/Equity

77.04

71.48

73.02

72.33

81.41

Dividend Pay Out Ratio (Times)

1.09

2.24

1.02

1.22

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.34

UK Pound

1

Rs.86.96

Euro

1

Rs.69.24

 

 

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.