MIRA INFORM REPORT

 

 

Report Date :

19.04.2013

 

IDENTIFICATION DETAILS

 

Name :

DUNHAM-BUSH INDUSTRIES SDN. BHD.

 

 

Formerly Known As :

TOPGROUP INDUSTRIES SDN BHD

 

 

Registered Office :

Level 18,The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

20.11.1987

 

 

Com. Reg. No.:

166302-K

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing of Air-Conditioners

 

 

No. of Employees :

1,000

 

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 :

Regular

Litigation :

Clear

 

 

NOTES :

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

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

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

Source : CIA


 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

166302-K

COMPANY NAME

:

DUNHAM-BUSH INDUSTRIES SDN. BHD.

FORMER NAME

:

TOPGROUP INDUSTRIES SDN BHD (02/05/1995)
TOPGROUP SDN BHD (02/02/1988)

INCORPORATION DATE

:

20/11/1987

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LEVEL 18,THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 5755-6, KIDAMAI INDUSTRIAL PARK, BUKIT ANGKAT, 43000 KAJANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-89249000

FAX.NO.

:

03-87395020

EMAIL

:

INFO@DUNHAM-BUSH.COM

WEB SITE

:

WWW.DUNHAM-BUSH.COM

CONTACT PERSON

:

SYLVIA KONG ( FINANCE MANAGER )

 

 

 

INDUSTRY CODE

:

27900

PRINCIPAL ACTIVITY

:

MANUFACTURING OF AIR-CONDITIONERS

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 8,562,600.00 DIVIDED INTO
ORDINARY SHARES 3,066,600 CASH AND 5,496,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 90,341,238 [2011]

NET WORTH

:

MYR 68,949,085 [2011]

 

 

 

STAFF STRENGTH

:

1,000 [2013]

BANKER (S)

:

EXPORT-IMPORT BANK OF MALAYSIA BHD
HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

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) manufacturing of air-conditioners.

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

The immediate holding company of the SC is DUNHAM-BUSH HOLDING BHD, a company incorporated in MALAYSIA.

The ultimate holding company of the SC is OTAVALO HOLDING LTD, a company incorporated in REPUBLIC OF CYPRUS.

The penultimate holding company of the SC is AGROMASHHOLDING B V, a company incorporated in NETHERLANDS.


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



Name

Address

IC/PP/Loc No

Shareholding

(%)

DUNHAM-BUSH HOLDING BHD

LEVEL 18, THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

129358

8,562,600.00

100.00

 

 

 

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

------

 

 

 

8,562,600.00

100.00

 

 

 

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

=====


+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

TATIANA EFREMTSEVA

Address

:

31 JALAN BAYU 5, BUKIT GITA BAYU, SERDANG, 43300 BALAKONG, SELANGOR, MALAYSIA.

IC / PP No

:

3844199

 

 

 

 

 

 

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

22/12/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

VLADIM KORJEVSKI

Address

:

NO.31, JALAN BAYU 5, BUKIT GITA BAYU,SERDANG, 43300 BALAKONG, SELANGOR, MALAYSIA.

IC / PP No

:

BA776871

 

 

 

 

 

 

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

22/12/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

YU BAOSHUANG

Address

:

A-09-3A, KIARAMAS AYURIA, NO.9, JALAN KIARA 7, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

G23448793

 

 

 

 

 

 

 

 

 

Nationality

:

CHINESE

Date of Appointment

:

12/04/2011

 

 

 

 

 

 

 

 

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

SYLVIA KONG

 

Position

:

FINANCE MANAGER

 

 

 

 

 

2)

Name of Subject

:

GRACE CHANG

 

Position

:

FINANCIAL CONTROLLER

 

 

 

 

 

3)

Name of Subject

:

ALEX CHAN

 

Position

:

PRODUCTION MANAGER

 

 

 

 

 

4)

Name of Subject

:

YU BAOSHUANG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

PKF

Auditor' Address

:

LEVEL 33, MENARA 1MK, KOMPLEKS 1 MONT' KIARA, NO. 1, JALAN KIARA,MONT' KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LIM POH YEN

 

 

 

 

 

New IC No

:

670427-01-5168

 

Address

:

10,JALAN USJ 11/1E, TAMAN SEAFIELD JAYA, 47620 PETALING JAYA, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. NG YEN HOONG

 

 

 

 

 

New IC No

:

670904-10-5060

 

Address

:

42A,JLN PJU 3/18H, TROPICANA INDAH, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

EXPORT-IMPORT BANK OF MALAYSIA BHD

 

 

 

 

 

2)

Name

:

HSBC BANK MALAYSIA 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

:

05/10/2005

Description Of Charge

:

MEMO OF DEPOSIT

 

Amount Secured

:

N/A

Description Of Property Affected

:

FIXED DEPOSIT

 

Name & Address Of Chargee

:

EXPORT-IMPORT BANK OF MALAYSIA BHD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 17 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

05/11/2007

Description Of Charge

:

N/A

 

Amount Secured

:

RM20,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

2, LEBOH AMPANG, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

Form 40 Dated 06/11/2007

Registered and Numbered 18 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

23/12/1992

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

LEE WAH BANK LTD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 11 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

Percentage

:

20%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

80%

Export Market

:

UNITED KINGDOM

ASIA

INDIA

CHINA

Credit Term

:

30 - 90 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)
LETTER OF CREDIT (LC)

Type of Customer

:

DEALERS

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

MANUFACTURER OF INDUSTRIAL AND COMMERCIAL AIR CONDITIONING REFRIGERATION AND VENTILATION EQUIPMENT, INCLUDING WATER-COOLED AND AIR-COOLED ROTARY SCREW COMPRESSOR(S) CHILLERS, WATER-COOLED AND AIR-COOLED SCROLL COMPRESSOR(S) CHILLERS, WATER-COOLED AND AIR-COOLED RECIPROCATING COMPRESSOR(S) CHILLERS,CENTRAL STATION AIR HANDLING UNITS, ROOF-TOP AIR-HANDLING UNITS, WATER-COOLED AND AIR-COOLED SPLIT & PACKAGED TYPE AIR CONDITIONERS, AIR -COOLED ROOF-TOP PACKAGED AIR CONDITIONERS, REVERSE CYCLE HEAT-PUMP CHILLERS, REVERSE CYCLE SPLIT/PACKAGED HEAT-PUMP AIR-CONDITIONERS, FANCOIL UNITS, AIR-COOLED AND WATER-COOLED CONDENSING UNITS, TUBES-IN-TANK ICE THERMAL STORAGE SYSTEM,PRECISION COMPUTER ROOM AIR-CONDITIONERS,VENTILATION FANS, ETC.

 

 

 

Brand Name

:

DUNHAM-BUSH, DB-AIRE

 

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2002
2 ) ENTERPRISE 50 AWARD Year :1997

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN IRON AND STEEL INDUSTRY FEDERATION (MISIF)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

 

 

 

Ownership of premises

:

OWNED

 

Factory Size

:

12 ACRE

 

Production Capacity

:

APPROXIMATELY 1100 TONNES

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 


GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

1,000

1,000

600

600

700

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of air-conditioners.

The Dunham-Bush Group specializes in the manufacturing, distribution, and sale of air-conditioning and refrigeration equipment such as air diffusion product, chillers, cooling tower, condenser, oil seperator, large commercial air-conditioner, blowers and ventilators worldwide.

Dunham-Bush is a pioneer in the development of rotary screw compressor technology and ICE-CEL thermal storage systems for the use in the heating, ventilating, air-conditioning and refrigeration (HVAC and R) business.

The rotary screw compressor technology for air-conditioning and refrigeration applications has made products to be more efficient, reliable and durable compared to the conventional centrifugal types.

This technology is one of the main distinctive assets as well as one of its main selling features in Dunham-Bush products and has made the Group one of the largest manufacturers of rotary-screw compressor-type water-chillers in the world.

The SC produces a wide range of products including silencers, variable-air-volume boxes, cooling towers, exhaust, grilles and diffusers, ventilation fans and etc.

The SC is mainly focused on the production of heating, ventilation, air-conditioning and refrigeration for hotels, corporations, factories etc. Whereas its related company, Dunham-Bush Topaire Sdn Bhd produces residential air-conditioners.

The SC provides complete range of heating, ventilation, air-conditioning and refrigeration equipment as follows:-

1) Wall-mount split air-conditioners (1 to 2.5 hp).

2) Ceiling-exposed split air-conditioners (1 to 5 hp).

3) Water-cooled and air cooled split and package air-conditioners (1 to120 hp).

4) Air-handling units and fan coil units (300 to 120,000 cu ft perminute).

5) Water-cooled and air-cooled chillers (1 to 2000-ton cooling capacity).

6) Low temperature condensing units and fan coil units for refrigeration purposes and closed-controlled air-conditioning equipment, computer room air-conditioners, heating products and accessories.

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

:

03-89249000

Match

:

N/A

 

 

 

Address Provided by Client

:

N/A

Current Address

:

LOT 5755-6, KIDAMAI INDUSTRIAL PARK, BUKIT ANGKAT, 43000 KAJANG, SELANGOR, MALAYSIA.

Match

:

N/A

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

5.16%

]

 

Return on Net Assets

:

Unfavourable

[

7.95%

]

 

 

 

 

 

 

 

 

The continuous fall in turnover could be due to the lower demand for the SC's products / services.The management had succeeded in turning the SC into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

202 Days

]

 

Debtor Ratio

:

Unfavourable

[

239 Days

]

 

Creditors Ratio

:

Unfavourable

[

101 Days

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Unfavourable

[

0.73 Times

]

 

Current Ratio

:

Unfavourable

[

1.19 Times

]

 

 

 

 

 

 

 

 

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

2.81 Times

]

 

Gearing Ratio

:

Favourable

[

0.12 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. 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 decreased, its losses also decreased during the year. This could be the result of more efficient control in its operating costs. 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. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. 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 : LIMITED

 

 

 

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

27900 : Manufacture of miscellaneous electrical equipment other than motors, generators and transformers, batteries and accumulators, wires and wiring devices, lighting equipment or domestic appliances

 

 

INDUSTRY :

ELECTRICAL & ELECTRONIC

 

 

 


The Electrical & Electronics (E&E) industry is the leading industry within the manufacturing sector and is the largest contributor to manufacturing output, employment, investment, exports and imports. Malaysia is a key player in the fast expanding Asia Pacific E&E market, its major export destinations include Singapore, United States, Europe, Japan and Taiwan. The E&E industry is targeted under the National Key Economic Areas ( NKEA ) to gear the nation towards high-income economy by focusing on high-value and high-growth manufacturing activities.


According to Ministry of Finance, in the year 2013 the electrical and electronic (E&E) subsector is expected to grow further, driven by higher demand for electronic equipment and parts as well as semiconductors in line with recovery in advanced economies.


Output of E&E rebounded 1.6% during the first seven months of 2012 mainly driven by the higher production of semiconductor devices (14.5%) as well as audio, visual and communication apparatus (6%). The improved performance of E&E was partly due to chip vendors and storage producers taking advantage of stable prices and supply of parts to replenish inventories as well as the launching of new products which was delayed by massive floods in Thailand during the fourth quarter of 2011.


Despite the slowdown in global demand, E&E manufacturers continued to invest in new technology and product development to upscale the value chain. Approved capital spending in the E&E subsector amounted to RM1.72 billion in 46 projects, of which RM1.35 billion were from foreign investors. This further reaffirms Malaysia as an attractive and cost-efficient E&E manufacturing base in the region. The continued strong investments will further strengthen growth in the E&E subsector and create more skilled jobs.


Softening of world demand for solar panels impact Malaysia on it's downturn in small scale compared to China where it facing great impact. The decline in E&E products was also due to the weak global demand.


E&E has been instrumental in the development of the Northern Corridor Klang Valley, Johor and Sarawak, contributing significantly to the socio-economic development of the relevant communities.However, the E&E sector faces significant challenges in maintaining growth with intense competition from China, Taiwan, Singapore and other Asian countries. Over the last 10 years, E&E's share of Malaysian exports has gradually declined.


Malaysia's E&E sector remains focused on assembly, the lower value-added part of the industry while Taiwan, South Korea and Singapore have captured the higher value-added activities in research and development, design and manufacturing.


To propel the E&E industry to a higher level, under the Economic Transformation Programme (ETP) launched by the Government, a few sub-sectors namely integrated circuits, solar photovoltaics, light emitting diodes, and solid state lighting & integrated electronics have been identified for greater promotion based on their potential to contribute significantly towards Gross National Income (GNI) targets 2020.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1987, the SC is a Private Limited company, focusing on manufacturing of air-conditioners. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having a strong shareholders' backing , the SC has the advantage to compete with its rivals and it is expected to enjoy timely financial assistance should the needs arise. With an adequate share capital, the SC has the potential of expanding its business in future.


Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. Being a large entity, the SC has a steady workforce of 1,000 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. 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. To improve its quality products and services, we noted that the SC has received a number of certifications & awards. This will improve the customer's confidence level to the SC.


Despite the lower turnover, the SC's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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. 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 68,949,085, 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 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)

DUNHAM-BUSH INDUSTRIES SDN. BHD.

 

Financial Year End

31/12/2011

30/04/2011

30/04/2010

30/04/2009

30/04/2008

Months

8

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

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

90,341,238

145,816,036

151,303,219

201,568,550

202,520,550

Other Income

4,450,199

3,939,747

-

-

-

 

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

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

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

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

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

Total Turnover

94,791,437

149,755,783

151,303,219

201,568,550

202,520,550

Costs of Goods Sold

<82,936,498>

<148,056,057>

-

-

-

 

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

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

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

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

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

Gross Profit

11,854,939

1,699,726

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

3,557,283

<17,707,672>

<4,338,351>

26,279,747

12,259,168

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

3,557,283

<17,707,672>

<4,338,351>

26,279,747

12,259,168

Taxation

-

<1,994,709>

1,030,041

<7,005,301>

<3,084,592>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

3,557,283

<19,702,381>

<3,308,310>

19,274,446

9,174,576

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

54,525,287

74,227,668

77,535,978

58,261,532

49,086,956

 

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

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

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

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

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

As restated

54,525,287

74,227,668

77,535,978

58,261,532

49,086,956

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

58,082,570

54,525,287

74,227,668

77,535,978

58,261,532

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

58,082,570

54,525,287

74,227,668

77,535,978

58,261,532

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

381,494

435,793

321,464

135,570

-

Hire purchase

6,535

22,072

37,436

81,006

-

Term loan / Borrowing

40,204

112,995

182,911

405,612

-

Others

1,540,315

2,071,983

1,367,246

1,754,855

-

 

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

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

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

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

 

 

1,968,548

2,642,843

1,909,057

2,377,043

 

 

 

 

BALANCE SHEET

 

 

DUNHAM-BUSH INDUSTRIES SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

46,144,083

48,296,710

56,435,177

59,615,209

60,190,870

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Deferred assets

1,291,507

1,291,507

1,291,507

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,291,507

1,291,507

1,291,507

-

-

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Goodwill on consolidation

1,456,973

1,714,552

373,470

501,561

-

Others

84,509

90,778

-

-

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

1,541,482

1,805,330

373,470

501,561

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

48,977,072

51,393,547

58,100,154

60,116,770

60,190,870

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

49,998,452

45,942,542

41,992,735

71,435,551

-

Trade debtors

59,063,779

61,133,865

70,417,177

81,525,027

-

Other debtors, deposits & prepayments

706,571

4,633,547

2,616,781

1,868,479

-

Short term deposits

-

-

-

112,266

-

Amount due from related companies

12,468,739

12,284,021

11,144,288

190,000

-

Cash & bank balances

4,118,174

760,164

6,924,626

6,899,280

-

Others

2,191,002

1,309,864

1,392,823

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

128,546,717

126,064,003

134,488,430

162,030,603

157,703,432

 

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

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

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

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

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

TOTAL ASSET

177,523,789

177,457,550

192,588,584

222,147,373

217,894,302

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

22,928,340

24,425,227

21,508,683

33,210,047

-

Other creditors & accruals

3,790,841

3,256,310

9,325,596

9,211,031

-

Hire purchase & lease creditors

36,601

189,252

278,014

352,944

-

Bank overdraft

7,779,442

7,272,021

5,352,767

4,265,264

-

Short term borrowings/Term loans

594,502

716,000

716,000

1,730,978

-

Deposits from customers

2,306,672

2,923,915

-

2,055,200

-

Amounts owing to holding company

15,043,216

15,553,020

-

-

-

Amounts owing to related companies

207,050

-

10,132,464

12,189,792

-

Provision for taxation

2,604,815

2,297,686

-

1,696,774

-

Other liabilities

52,687,808

53,942,093

46,972,622

41,010,919

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

107,979,287

110,575,524

94,286,146

105,722,949

114,046,295

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

20,567,430

15,488,479

40,202,284

56,307,654

43,657,137

 

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

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

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

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

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

TOTAL NET ASSETS

69,544,502

66,882,026

98,302,438

116,424,424

103,848,007

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

8,562,600

8,562,600

8,562,600

8,562,600

8,562,600

 

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

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

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

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

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

TOTAL SHARE CAPITAL

8,562,600

8,562,600

8,562,600

8,562,600

8,562,600

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

2,206,675

2,206,675

2,206,675

2,206,675

2,477,048

Exchange equalisation/fluctuation reserve

97,240

381,503

164,427

674,082

-

Retained profit/(loss) carried forward

58,082,570

54,525,287

74,227,668

77,535,978

58,261,532

 

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

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

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

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

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

TOTAL RESERVES

60,386,485

57,113,465

76,598,770

80,416,735

60,738,580

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

68,949,085

65,676,065

85,161,370

88,979,335

69,301,180

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

-

355,836

1,073,034

1,790,002

-

Hire purchase creditors

-

31,721

220,973

402,385

-

Deferred taxation

-

-

-

824,712

-

Others

595,417

818,404

11,847,061

24,427,990

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

595,417

1,205,961

13,141,068

27,445,089

34,546,827

 

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

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

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

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

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

 

69,544,502

66,882,026

98,302,438

116,424,424

103,848,007

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

DUNHAM-BUSH INDUSTRIES SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

4,118,174

760,164

6,924,626

7,011,546

-

Net Liquid Funds

<3,661,268>

<6,511,857>

1,571,859

2,746,282

-

Net Liquid Assets

<29,431,022>

<30,454,063>

<1,790,451>

<15,127,897>

43,657,137

Net Current Assets/(Liabilities)

20,567,430

15,488,479

40,202,284

56,307,654

43,657,137

Net Tangible Assets

68,003,020

65,076,696

97,928,968

115,922,863

103,848,007

Net Monetary Assets

<30,026,439>

<31,660,024>

<14,931,519>

<42,572,986>

9,110,310

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

8,410,545

8,564,830

7,640,788

8,541,573

-

Total Liabilities

108,574,704

111,781,485

107,427,214

133,168,038

148,593,122

Total Assets

177,523,789

177,457,550

192,588,584

222,147,373

217,894,302

Net Assets

69,544,502

66,882,026

98,302,438

116,424,424

103,848,007

Net Assets Backing

68,949,085

65,676,065

85,161,370

88,979,335

69,301,180

Shareholders' Funds

68,949,085

65,676,065

85,161,370

88,979,335

69,301,180

Total Share Capital

8,562,600

8,562,600

8,562,600

8,562,600

8,562,600

Total Reserves

60,386,485

57,113,465

76,598,770

80,416,735

60,738,580

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.04

0.01

0.07

0.07

-

Liquid Ratio

0.73

0.72

0.98

0.86

-

Current Ratio

1.19

1.14

1.43

1.53

1.38

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

202

115

101

129

-

Debtors Ratio

239

153

170

148

-

Creditors Ratio

101

60

52

60

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.12

0.13

0.09

0.10

-

Liabilities Ratio

1.57

1.70

1.26

1.50

2.14

Times Interest Earned Ratio

2.81

<5.70>

<1.27>

12.06

-

Assets Backing Ratio

7.94

7.60

11.44

13.54

12.13

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

3.94

<12.14>

<2.87>

13.04

6.05

Net Profit Margin

3.94

<13.51>

<2.19>

9.56

4.53

Return On Net Assets

7.95

<22.52>

<2.47>

24.61

11.80

Return On Capital Employed

7.00

<19.78>

<2.33>

23.58

11.80

Return On Shareholders' Funds/Equity

5.16

<30.00>

<3.88>

21.66

13.24

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

 



 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.03

UK Pound

1

Rs.82.43

Euro

1

Rs.70.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.