MIRA INFORM REPORT

 

 

 

 

Report Date :

13.04.2013

 

IDENTIFICATION DETAILS

 

Name :

BNF ENGINEERING & SUPPLIES (M) SDN. BHD.

 

 

Formerly Known as:

BNF ENGINEERING (M) SDN BHD

 

 

Registered Office :

First Subang, Unit S12-05, Level 12, Jalan Ss 15/4g, 47500 Subang Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

17.05.1990

 

 

Com. Reg. No.:

197764-D

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Providing engineering solutions in the field of analytical & emission control, natural gas and mechanical & electrical, metallurgical products and gas & chemical

 

 

No. of Employees :

350

 

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

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

197764-D

COMPANY NAME

:

BNF ENGINEERING & SUPPLIES (M) SDN. BHD.

FORMER NAME

:

BNF ENGINEERING (M) SDN BHD (05/06/1992)
AMALGLOBE (M) SDN BHD (10/10/1990)

INCORPORATION DATE

:

17/05/1990

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

FIRST SUBANG, UNIT S12-05, LEVEL 12, JALAN SS 15/4G, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

25, JALAN TPP 5/13, TAMAN PERINDUSTRIAN PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-80622216

FAX.NO.

:

03-80622339

WEB SITE

:

WWW.BNF.COM

CONTACT PERSON

:

LEE YEW SIN ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

71102

PRINCIPAL ACTIVITY

:

PROVIDING ENGINEERING SOLUTIONS IN THE FIELD OF ANALYTICAL & EMISSION CONTROL, NATURAL GAS AND MECHANICAL & ELECTRICAL, METALLURGICAL PRODUCTS AND GAS & CHEMICAL

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 3,500,000.00 DIVIDED INTO 
ORDINARY SHARES 2,250,002 CASH AND 1,249,998 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 29,995,453 [2011]

NET WORTH

:

MYR 3,927,965 [2011]

 

 

 

STAFF STRENGTH

:

350 [2013]

BANKER (S)

:

CIMB BANK BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

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) providing engineering solutions in the field of analytical & emission control, natural gas and mechanical & electrical, metallurgical products and gas & chemical.

 

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

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. HIONG CHEE MENG +

77-7-5,MENARA BELFIELD, JALAN TALALLA, 50460 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

650207-06-5077

62,502.00

1.79

LEE YEW SIN +

NO. 6, VILLA BOVELIN, LORONG AWAN CINA, TAMAN YARL, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

1463654D

3,437,498.00

98.21

 

 

 

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

------

 

 

 

3,500,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

LEE YEW SIN

Address

:

29 LORONG LEW LIAN, #03-07, SINGAPORE 536471

IC / PP No

:

S1463654D

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

13/07/1990

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

LEE BOON CHONG

Address

:

NO. 6, VILLA BOVELIN, LORONG AWAN CINA, TAMAN YARL, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

S1704720E

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

15/04/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. HIONG CHEE MENG

Address

:

77-7-5,MENARA BELFIELD, JALAN TALALLA, 50460 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

650207-06-5077

Date of Birth

:

07/02/1965

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

09/05/1997

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

LEE YEW SIN

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

LEE BOON CHONG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

 

Auditor

:

K.Y.HO & CO.

Auditor' Address

:

FIRST SUBANG, UNIT S12-06, JALAN SS 15/4G, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. CHONG LIP CHEE

 

 

 

 

 

New IC No

:

560910-05-5461

 

Address

:

BLOCK J7-04, DESA PANDAN, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

2)

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

:

28/11/1994

Description Of Charge

:

DEED OF ASSIGNMENT & FACILITIES AGREEMENT

 

Amount Secured

:

RM575,000.00

Description Of Property Affected

:

HS(D) 27098, PT 5, MK & DIST PETALING

 

Name & Address Of Chargee

:

CIMB BANK BHD

5 JALAN MANIS 6 TAMAN SEGAR, BATU 6 JALAN CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 25/11/1994

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

08/03/1996

Description Of Charge

:

ADDITIONAL FACILITY AGREEMENT, ASSIGNMENT & AGREEMENT

 

Amount Secured

:

RM350,000.00

Description Of Property Affected

:

ALL OF THE PROPERTY OF THE CO MORE PARTICULARLY DESCRIBED IN THE SEC 4 OF THE ADDITIONAL FACILITY AGREEMENT

 

Name & Address Of Chargee

:

CIMB BANK BHD

5 JALAN MANIS 6, TAMAN SEGAR, CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 19/03/1996

Registered and Numbered 2 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

19/05/1997

Description Of Charge

:

3RD FACILITY AGREEMENT, SUPPLEMENTARY ASSIGNMENT, JOINT & SEVERAL GUARANTEE

 

Amount Secured

:

RM300,000.00

Description Of Property Affected

:

A 1 1/2 STOREY, SEMI DETACHED FACTORY UNDER SUB LOT 236, TMN PERINDUSTRIAN PUCHONG, SEC 5

 

Name & Address Of Chargee

:

CIMB BANK BHD

WISMA MAH SING, 163 JALAN SUNGAI BESI, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 18/06/1997

Registered and Numbered 3 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

17/07/2000

Description Of Charge

:

N/A

 

Amount Secured

:

RM3,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

BUMIPUTRA-COMMERCE BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 6 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

29/10/2003

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

CIMB BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 7 In The Register of Charges



ENCUMBRANCE 6

Date of Creation

:

31/10/2003

Description Of Charge

:

N/A

 

Amount Secured

:

RM6,350,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

CIMB BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 8 In The Register of Charges



ENCUMBRANCE 7

Date of Creation

:

30/08/2004

Description Of Charge

:

DEED OF ASSIGNMENT & FACILITIES AGREEMENT

 

Amount Secured

:

RM1,500,000.00

Description Of Property Affected

:

HS(D) 27098, PT 5, MK & DIST PETALING

 

Name & Address Of Chargee

:

CIMB BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 9 In The Register of Charges



ENCUMBRANCE 8

Date of Creation

:

28/10/2005

Description Of Charge

:

N/A

 

Amount Secured

:

RM10,350,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

CIMB BANK BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 10 In The Register of Charges



ENCUMBRANCE 9

Date of Creation

:

24/11/2005

Description Of Charge

:

N/A

 

Amount Secured

:

RM21,600,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 11 In The Register of Charges



ENCUMBRANCE 10

Date of Creation

:

24/11/2005

Description Of Charge

:

DEED OF ASSIGNMENT & FACILITIES AGREEMENT

 

Amount Secured

:

RM7,010,000.00

Description Of Property Affected

:

HS(D) 27098, PT 5, MK & DIST PETALING

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 12 In The Register of Charges

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank against 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

:

SINGAPORE

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

TELEGRAPHIC TRANSFER (TT)
LETTER OF CREDIT (LC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

PROVIDING ENGINEERING SOLUTIONS IN THE FIELD OF ANALYTICAL & EMISSION CONTROL, NATURAL GAS AND MECHANICAL & ELECTRICAL, METALLURGICAL PRODUCTS AND GAS & CHEMICAL

 

 

 

 

 

Total Number of Employees:

YEAR

2013

2011

 

GROUP

350

N/A

 

 

 

 

 

 

 

COMPANY

15

15

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) providing engineering solutions in the field of analytical & emission control, natural gas and mechanical & electrical, metallurgical products and gas & chemical. 

SC engaged in Engineering & Maintenance business where is dedicated in providing engineering solutions in the field of Analytical & Emission Control, Natural Gas and Mechanical & Electrical.

According to SC, its also involve in supplying Metallurgical Products and major distributor of Gas & Chemical in singapore.

The Gas & Chemical diverse as HVAC, Industrial Gas Manufacturer, Pulp & Paper, Chemical, Food & Beverage, Iron & Steel, Oil & Gas Exploration, Power Generation Water Treatment and etc. 

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

:

03-80622216

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 25, JALAN TPP 5/13, TAMAN PERINDUSTRIAN PUCHONG, 47100 SELANGOR

Current Address

:

25, JALAN TPP 5/13, TAMAN PERINDUSTRIAN PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


we had contacted the SC and they provided some information on SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

10.36%

]

 

Return on Net Assets

:

Acceptable

[

12.38%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Unfavourable

[

0.94 Times

]

 

 

 

 

 

 

 

 

Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

3.56 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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. The SC's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the SC : FAIR

 

 

 

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

71102 : Engineering services

 

 

INDUSTRY :

CONSTRUCTION

 

 

 


The construction sector consists of four subsectors: residential, non-residential, civil engineering and special trade works. During a period of rapid economic expansion, the sector generally outperforms Gross Domestic Product (GDP) growth. 


Construction's contribution to gross domestic product (GDP) is expected to fall to 11.2% in 2013 from 15 % in 2012, with all subsectors registering steady growth. The sector is expected to benefit from the acceleration of ongoing construction activities, particularly from the Economic Transformation Programme (ETP) and Second Rolling Plan (RP2) construction-related projects. Of significance, exploration activities in O&G industries and major projects such as the electrified double-tracking between lpoh -Padang Besar, LPT2 Jabur - Kuala Terengganu, MRT and the River of Life are expected to drive the growth of the civil engineering subsector. The non-residential subsector is expected to expand spurred by the industrial building segment and the commencement of construction of the Tun Razak Exchange (TRX). The residential subsector is also projected to expand, albeit at a moderate pace, after recording several years of strong growth. Key housing development projects, particularly in Sungai Buloh and Bandar Malaysia in Sungai Besi, which are expected to commence in 2013, will support residential construction activities. According to the Minister of Finance, the domestic demand is expected to grow at 5.6% and will remain the main driver of growth in 2013 underpinned by strong private sector expenditure.


The industry is set to receive a further boost from a wave of new developments earmarked for 2013, including rail projects worth an estimated $52 billion that should be launched in the coming year. It was predicted that the growth in other sectors will largely drive Malaysia's econ­omy but the construction sector's contribution to GDP could still remain stable. However, while the construc­tion sector is expected to have a solid 2013, it remains hampered by a shortage of skilled labour­ers, with rapid growth in recent years triggering a drain on its workforce. In late November of 2012, the Builders Association Malaysia (MBAM) request the govern­ment to do more to facilitate the training of building workers or run the risk of supply-side bot­tlenecks delaying new projects.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1990, the SC is a Private Limited company, focusing on providing engineering solutions in the field of analytical & emission control, natural gas and mechanical & electrical, metallurgical products and gas & chemical. The SC has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. With an adequate share capital, the SC has the potential of expanding its business in future.


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 a fairly large and rapidly growing company with over 350 staff in its 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.


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. 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. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 3,927,965, the SC should be able to maintain its business in the near terms.


Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth . 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)

BNF ENGINEERING & SUPPLIES (M) 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

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

SUMMARY

FULL

FULL

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

29,995,453

27,426,987

44,720,553

43,652,371

52,170,466

 

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

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

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

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

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

Total Turnover

29,995,453

27,426,987

44,720,553

43,652,371

52,170,466

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

487,165

181,633

458,668

384,000

1,002,135

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

487,165

181,633

458,668

384,000

1,002,135

Taxation

<80,178>

<161,541>

<144,940>

<138,343>

<430,567>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

406,987

20,092

313,728

245,657

571,568

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

20,978

420,886

317,158

1,576,501

1,004,933

 

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

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

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

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

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

As restated

20,978

420,886

317,158

1,576,501

1,004,933

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

427,965

440,978

630,886

1,822,158

1,576,501

DIVIDENDS - Ordinary (paid & proposed)

-

<420,000>

<210,000>

<1,505,000>

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

427,965

20,978

420,886

317,158

1,576,501

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

-

7,492

9,368

-

-

Hire purchase

-

5,756

9,552

-

-

Term loan / Borrowing

-

-

15,955

-

-

Trust receipts

-

264,065

175,604

-

-

 

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

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

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

 

 

 

-

277,313

210,479

 

 

 

 

 

BALANCE SHEET

 

 

BNF ENGINEERING & SUPPLIES (M) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

4,724,869

4,843,910

4,964,640

5,090,628

5,192,491

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

-

-

0

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

4,724,869

4,843,910

4,964,640

5,090,628

5,192,491

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

-

3,265,038

3,208,411

-

-

Trade debtors

-

5,358,959

8,035,600

-

-

Other debtors, deposits & prepayments

-

771,368

4,332,491

-

-

Short term deposits

-

2,323,573

2,215,045

-

-

Amount due from director

-

314,785

-

-

-

Cash & bank balances

-

2,467,995

1,247,327

-

-

Others

-

143,627

229,046

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

13,174,445

14,645,345

19,267,920

20,835,096

31,097,434

 

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

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

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

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

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

TOTAL ASSET

17,899,314

19,489,255

24,232,560

25,925,724

36,289,925

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

2,076,756

4,339,371

-

-

Other creditors & accruals

-

21,153

1,045,597

-

-

Hire purchase & lease creditors

-

71,655

68,716

-

-

Bank overdraft

-

143,354

175,326

-

-

Bill & acceptances payable

-

13,613,255

14,457,027

-

-

Amounts owing to director

-

-

110,000

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

13,964,367

15,926,173

20,196,037

21,921,691

30,275,759

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<789,922>

<1,280,828>

<928,117>

<1,086,595>

821,675

 

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

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

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

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

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

TOTAL NET ASSETS

3,934,947

3,563,082

4,036,523

4,004,033

6,014,166

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

3,500,000

3,500,000

3,500,000

3,500,000

3,500,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

3,500,000

3,500,000

3,500,000

3,500,000

3,500,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

427,965

20,978

420,886

317,158

1,576,501

 

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

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

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

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

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

TOTAL RESERVES

427,965

20,978

420,886

317,158

1,576,501

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,927,965

3,520,978

3,920,886

3,817,158

5,076,501

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Hire purchase creditors

-

30,717

102,372

-

-

Deferred taxation

-

11,387

13,265

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

6,982

42,104

115,637

186,875

937,665

 

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

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

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

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

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

 

3,934,947

3,563,082

4,036,523

4,004,033

6,014,166

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

BNF ENGINEERING & SUPPLIES (M) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

-

4,791,568

3,462,372

-

-

Net Liquid Funds

-

4,648,214

3,287,046

-

-

Net Liquid Assets

<789,922>

<4,545,866>

<4,136,528>

<1,086,595>

821,675

Net Current Assets/(Liabilities)

<789,922>

<1,280,828>

<928,117>

<1,086,595>

821,675

Net Tangible Assets

3,934,947

3,563,082

4,036,523

4,004,033

6,014,166

Net Monetary Assets

<796,904>

<4,587,970>

<4,252,165>

<1,273,470>

<115,990>

 

 

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

-

245,726

346,414

-

-

Total Liabilities

13,971,349

15,968,277

20,311,674

22,108,566

31,213,424

Total Assets

17,899,314

19,489,255

24,232,560

25,925,724

36,289,925

Net Assets

3,934,947

3,563,082

4,036,523

4,004,033

6,014,166

Net Assets Backing

3,927,965

3,520,978

3,920,886

3,817,158

5,076,501

Shareholders' Funds

3,927,965

3,520,978

3,920,886

3,817,158

5,076,501

Total Share Capital

3,500,000

3,500,000

3,500,000

3,500,000

3,500,000

Total Reserves

427,965

20,978

420,886

317,158

1,576,501

 

 

 

 

 

 

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

-

0.30

0.17

-

-

Liquid Ratio

-

0.71

0.80

-

-

Current Ratio

0.94

0.92

0.95

0.95

1.03

 

 

 

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

-

43

26

-

-

Debtors Ratio

-

71

66

-

-

Creditors Ratio

-

28

35

-

-

 

 

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

-

0.07

0.09

-

-

Liabilities Ratio

3.56

4.54

5.18

5.79

6.15

Times Interest Earned Ratio

-

1.65

3.18

-

-

Assets Backing Ratio

1.12

1.02

1.15

1.14

1.72

 

 

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.62

0.66

1.03

0.88

1.92

Net Profit Margin

1.36

0.07

0.70

0.56

1.10

Return On Net Assets

12.38

12.88

16.58

9.59

16.66

Return On Capital Employed

12.38

12.15

15.63

9.59

16.66

Return On Shareholders' Funds/Equity

10.36

0.57

8.00

6.44

11.26

Dividend Pay Out Ratio (Times)

-

20.90

0.67

6.13

-

 

 

 

 

 

 




FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.44

UK Pound

1

Rs.83.78

Euro

1

Rs.71.33

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.