MIRA INFORM REPORT

 

 

Report Date :

02.04.2013

 

IDENTIFICATION DETAILS

 

Name :

IEC PLANT ENGINEERING SDN. BHD.

 

 

Registered Office :

917, Block A, Kelana Centre Point, 3, Jalan Ss7/19, Kelana Jaya, 47301 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

22.05.2004

 

 

Com. Reg. No.:

653376-P

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Designing, Fabricating and Installation of Industrial Machinery and Control System

 

 

No. of Employees :

50

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – 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.

:

653376-P

COMPANY NAME

:

IEC PLANT ENGINEERING SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

22/05/2004

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

917, BLOCK A, KELANA CENTRE POINT, 3, JALAN SS7/19, KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

NO.6,JALAN BULAN U5/167, SUBANG INTERNATIONAL LIGHT INDUSTRIAL PARK, BANDAR PINGGIRAN SUBANG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78471084

FAX.NO.

:

03-78461280

EMAIL

:

IECPE@MYJARING.NET

WEB SITE

:

WWW.IECPE.COM

CONTACT PERSON

:

TAN YIN MIN ( DIRECTOR )

INDUSTRY CODE

:

281

PRINCIPAL ACTIVITY

:

DESIGNING, FABRICATING AND INSTALLATION OF INDUSTRIAL MACHINERY AND CONTROL SYSTEM

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH AND 400,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 16,636,332 [2012]

NET WORTH

:

MYR 3,093,535 [2012]

STAFF STRENGTH

:

50 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE 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) designing, fabricating and installation of industrial machinery and control system.

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

(%)

MS. TAN YIN MIN +

SHANG VILLA CONDO, BLOCK A, UNIT 16-08, JALAN SS 7/15, KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

730711-05-5302

250,000.00

50.00

MR. MUTHURAVY A/L PALANISAMY +

SHANG VILLA CONDO, BOCLK A, UNIT 16-08, JALAN SS7/15,KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

680709-08-5921

250,000.00

50.00

 

 

 

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

------

 

 

 

500,000.00

100.00

 

 

 

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

=====

 

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. TAN YIN MIN

Address

:

SHANG VILLA CONDO, BLOCK A, UNIT 16-08, JALAN SS 7/15, KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

New IC No

:

730711-05-5302

Date of Birth

:

11/07/1973

Nationality

:

MALAYSIAN

Date of Appointment

:

22/05/2004

 

DIRECTOR 2

 

Name Of Subject

:

MR. MUTHURAVY A/L PALANISAMY

Address

:

SHANG VILLA CONDO, BOCLK A, UNIT 16-08, JALAN SS7/15,KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

New IC No

:

680709-08-5921

Date of Birth

:

09/07/1968

Nationality

:

MALAYSIAN

Date of Appointment

:

22/05/2004



MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN YIN MIN

 

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

CHING & ASSOCIATES.

Auditor' Address

:

915, BLOCK.A, KELANA CENTRE POINT, 3, JALAN SS7/19, KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHAN CHOI KUAN

 

New IC No

:

540305-14-5348

 

Address

:

12, JALAN SS 19/4A, 47500 SUBANG JAYA, SELANGOR, 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)


ENCUMBRANCE 1

Date of Creation

:

06/04/2012

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BERHAD

 

Form 40 Dated 12/04/2012

Registered and Numbered 1 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


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

:

WORLDWIDE

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

INDUSTRIAL MACHINERY AND CONTROL SYSTEM

 

 

 

 

Total Number of Employees:

YEAR

2013

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

50

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) designing, fabricating and installation of industrial machinery and control system.


The SC has been manufacturing a wide range of high quality Dispersion, Mixing and Grinding Equipment for Paint, Ink, Chemical, Adhesive and Polymer industries.


To meet the varied processing requirements of the industries, the SC's equipment is available in either standard or custom designs.

 

 

PROJECTS


No projects found in our databank

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

378471084

Current Telephone Number

:

03-78471084

Match

:

YES

Address Provided by Client

:

NO. 6 JALAN BULAN US 167 SUBANG 2 40150 SHAHALAM MALAYSIA

Current Address

:

NO.6,JALAN BULAN U5/167, SUBANG INTERNATIONAL LIGHT INDUSTRIAL PARK, BANDAR PINGGIRAN SUBANG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


On 29th March 2013, we contacted one of the staff from the SC and she provided some information on the SC.

The address provided is incorrect.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

20.46%

]

 

Return on Net Assets

:

Acceptable

[

15.49%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

4 Days

]

 

Debtor Ratio

:

Favourable

[

25 Days

]

 

Creditors Ratio

:

Unfavourable

[

85 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

:

Acceptable

[

0.88 Times

]

 

Current Ratio

:

Unfavourable

[

0.91 Times

]

 

 

 

 

 

 

 

 

The SC's liquid ratio was slightly low. This could indicate that the SC's working capital was slightly deficient. The SC will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

168.85 Times

]

 

Gearing Ratio

:

Favourable

[

0.59 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 was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the SC's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the SC's profit margin. The SC's liquidity was at an acceptable range. If the SC is able to obtain further short term financing, it should be able to meet all 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 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 : STABLE

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

<0.5>

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

<2.7>

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

<17.2>

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

<1.2>

Investment ( % )

8.0

2.8

<0.3>

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

<28,450>

<40,482>

<45,511>

<42,297>

<39,993>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<5.6>

<5.4>

<4.5>

<4.0>

Inflation ( % Change in Composite CPI)

<5.2>

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

<0.1>

6.2

3.0

<0.0>

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

<34.5>

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

<1.1>

<3.4>

10.8

<2.8>

-

Rubber

<19.8>

9.9

6.1

<0.6>

-

Forestry & Logging

<5.9>

<3.3>

<7.6>

<2.2>

-

Fishing

5.5

5.6

2.1

<0.7>

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

<3.8>

0.2

<5.7>

1.5

2.7

Oil & Gas

2.1

0.5

<1.7>

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

<9.4>

11.4

4.7

4.2

4.9

Exported-oriented Industries

<19.0>

12.1

2.8

4.1

-

Electrical & Electronics

<30.3>

28.4

<4.9>

1.6

-

Rubber Products

<10.1>

25.3

15.4

3.6

-

Wood Products

<24.1>

20.1

<4.9>

4.6

-

Textiles & Apparel

<19.5>

<0.4>

14.8

<7.1>

-

Domestic-oriented Industries

<9.8>

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

<7.7>

16.2

5.5

9.9

-

Plastic Products

<9.1>

2.4

3.8

-

-

Iron & Steel

<32.7>

29.3

2.4

-

-

Fabricated Metal Products

<2.5>

14.9

25.2

-

-

Non-metallic Mineral

<15.5>

20.2

27.1

6.6

-

Transport Equipment

<13.5>

36.5

<10.4>

13.7

-

Paper & Paper Products

<5.0>

18.7

14.8

<7.8>

-

Crude Oil Refineries

0.2

<11.4>

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

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

281 : Manufacture of general purpose machinery

 

 

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. Exports of machinery and equipment registered a double-digit growth of 12.6% in the frst seven month of 2012 mainly driven by general industrial machinery and equipment as well as specialised machinery for specific industries.


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 : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 2004, the SC is a Private Limited company, focusing on designing, fabricating and installation of industrial machinery and control system. Having been in business for 9 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. The SC is considered as a medium size company with issued and paid up capital standing at MYR 500,000.


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. The SC is operating on a medium scale and it has approximately 50 employees in its business operations. 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.


Financially, the SC registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. 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. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 3,093,535, the SC should be able to maintain its business in the near terms.


Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.


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 very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.


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

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

IEC PLANT ENGINEERING SDN. BHD.

 

Financial Year End

30/06/2012

30/06/2011

30/06/2010

30/06/2009

30/06/2008

Months

12

12

12

12

12

Consolidated Account

Company

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

16,636,332

15,589,915

9,873,226

12,632,881

10,363,790

 

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

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

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

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

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

Total Turnover

16,636,332

15,589,915

9,873,226

12,632,881

10,363,790

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

748,968

856,079

367,713

406,050

302,932

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

748,968

856,079

367,713

406,050

302,932

Taxation

<116,075>

<74,528>

<73,125>

<88,961>

<70,144>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

632,893

781,551

294,588

317,089

232,788

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

2,360,642

1,579,091

1,284,503

967,414

734,626

 

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

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

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

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

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

As restated

2,360,642

1,579,091

1,284,503

967,414

734,626

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

2,993,535

2,360,642

1,579,091

1,284,503

967,414

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,993,535

2,360,642

1,579,091

1,284,503

967,414

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

2,710

3,541

3,492

5,339

7,186

Term loan / Borrowing

1,752

-

-

-

-

 

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

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

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

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

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

 

4,462

3,541

3,492

5,339

7,186

 

 

 

BALANCE SHEET

 

 

IEC PLANT ENGINEERING SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

5,404,786

880,791

834,309

769,798

408,817

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

5,404,786

880,791

834,309

769,798

408,817

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

162,918

119,146

82,369

60,704

120,266

Trade debtors

1,132,306

1,834,511

519,797

236,468

1,420,937

Other debtors, deposits & prepayments

368,491

1,138,415

66,724

44,989

179,671

Deposits with financial institutions

3,800

1,183,200

320,766

707,198

509,290

Cash & bank balances

3,717,137

345,721

2,256,280

546,640

173,783

Others

188,314

102,435

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

5,572,966

4,723,428

3,245,936

1,595,999

2,403,947

 

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

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

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

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

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

TOTAL ASSET

10,977,752

5,604,219

4,080,245

2,365,797

2,812,764

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

3,879,708

2,224,803

1,376,712

464,267

1,325,196

Other creditors & accruals

1,599,426

725,836

721,635

180,426

263,602

Hire purchase & lease creditors

17,290

45,046

29,458

35,412

33,565

Short term borrowings/Term loans

87,878

-

-

-

-

Amounts owing to director

529,708

67,156

210,545

195,316

-

Provision for taxation

-

-

12,336

26,908

12,477

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

6,114,010

3,062,841

2,350,686

902,329

1,634,840

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<541,044>

1,660,587

895,250

693,670

769,107

 

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

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

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

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

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

TOTAL NET ASSETS

4,863,742

2,541,378

1,729,559

1,463,468

1,177,924

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

100,000

100,000

100,000

100,000

100,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

100,000

100,000

100,000

100,000

100,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

2,993,535

2,360,642

1,579,091

1,284,503

967,414

 

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

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

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

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

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

TOTAL RESERVES

2,993,535

2,360,642

1,579,091

1,284,503

967,414

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,093,535

2,460,642

1,679,091

1,384,503

1,067,414

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

1,700,307

-

-

-

-

Hire purchase creditors

7,490

24,780

28,811

58,269

94,039

Deferred taxation

62,410

55,956

21,657

20,696

16,471

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,770,207

80,736

50,468

78,965

110,510

 

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

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

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

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

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

 

4,863,742

2,541,378

1,729,559

1,463,468

1,177,924

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

IEC PLANT ENGINEERING SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

3,717,137

345,721

2,256,280

546,640

173,783

Net Liquid Funds

3,717,137

345,721

2,256,280

546,640

173,783

Net Liquid Assets

<703,962>

1,541,441

812,881

632,966

648,841

Net Current Assets/(Liabilities)

<541,044>

1,660,587

895,250

693,670

769,107

Net Tangible Assets

4,863,742

2,541,378

1,729,559

1,463,468

1,177,924

Net Monetary Assets

<2,474,169>

1,460,705

762,413

554,001

538,331

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

1,812,965

69,826

58,269

93,681

127,604

Total Liabilities

7,884,217

3,143,577

2,401,154

981,294

1,745,350

Total Assets

10,977,752

5,604,219

4,080,245

2,365,797

2,812,764

Net Assets

4,863,742

2,541,378

1,729,559

1,463,468

1,177,924

Net Assets Backing

3,093,535

2,460,642

1,679,091

1,384,503

1,067,414

Shareholders' Funds

3,093,535

2,460,642

1,679,091

1,384,503

1,067,414

Total Share Capital

100,000

100,000

100,000

100,000

100,000

Total Reserves

2,993,535

2,360,642

1,579,091

1,284,503

967,414

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.61

0.11

0.96

0.61

0.11

Liquid Ratio

0.88

1.50

1.35

1.70

1.40

Current Ratio

0.91

1.54

1.38

1.77

1.47

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

4

3

3

2

4

Debtors Ratio

25

43

19

7

50

Creditors Ratio

85

52

51

13

47

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.59

0.03

0.03

0.07

0.12

Liabilities Ratio

2.55

1.28

1.43

0.71

1.64

Times Interest Earned Ratio

168.85

242.76

106.30

77.05

43.16

Assets Backing Ratio

48.64

25.41

17.30

14.63

11.78

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

4.50

5.49

3.72

3.21

2.92

Net Profit Margin

3.80

5.01

2.98

2.51

2.25

Return On Net Assets

15.49

33.82

21.46

28.11

26.33

Return On Capital Employed

15.44

33.24

21.10

27.45

25.60

Return On Shareholders' Funds/Equity

20.46

31.76

17.54

22.90

21.81

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.