MIRA INFORM REPORT

 

 

Report Date :

17.12.2013

 

IDENTIFICATION DETAILS

 

Name :

MACHINERY & INDUSTRIAL SUPPLIES SDN. BHD.

 

 

Formerly Known As :

SYARIKAT MACHINERY & INDUSTRIAL SUPPLIES SDN BHD

 

 

Registered Office :

Lot 6.05, Level 6, KPMG Tower, 8, First Avenue, Bandar Utama, 47800 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

29.10.1975

 

 

Com. Reg. No.:

24972-V

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading in machinery & industrial parts supplies

 

 

No. of Employees :

25

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. 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 about 35% of government revenue in 2011. Bank Negera Malaysia (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.

:

24972-V

COMPANY NAME

:

MACHINERY & INDUSTRIAL SUPPLIES SDN. BHD.

FORMER NAME

:

SYARIKAT MACHINERY & INDUSTRIAL SUPPLIES SDN BHD (02/04/1991)

INCORPORATION DATE

:

29/10/1975

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LOT 6.05, LEVEL 6, KPMG TOWER, 8, FIRST AVENUE, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

19 JALAN DUA, OFF JALAN CHAN SOW LIN, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-92219898

FAX.NO.

:

03-92217878

EMAIL

:

ENQUIRY@SMIS.COM.MY

WEB SITE

:

WWW.SMIS.COM.MY

CONTACT PERSON

:

NG WAI KEE ( DIRECTOR )

INDUSTRY CODE

:

465

PRINCIPAL ACTIVITY

:

TRADING IN MACHINERY & INDUSTRIAL PARTS SUPPLIES

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 7,210,000.00 DIVIDED INTO 
ORDINARY SHARES 6,647,500 CASH AND 562,500 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 18,429,947 [2012]

NET WORTH

:

MYR 17,971,682 [2012]

STAFF STRENGTH

:

25 [2013]

BANKER (S)

:

HSBC BANK MALAYSIA BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

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) trading in machinery & industrial parts supplies.

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

The immediate holding company of the SC is SMIS CORPORATION BERHAD, a company incorporated in MALAYSIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 10,000,000.00

MYR 7,210,000.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

SMIS CORPORATION BERHAD

LOT 6.05, LEVEL 7, KPMG TOWER, 8 FIRST AVENUE, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

491857V

7,210,000.00

100.00

 

 

 

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

------

 

 

 

7,210,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. NG WAI KEE

Address

:

19 JALAN DUA, OFF JALAN CHAN SOW LIN, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

711004-10-5311

Date of Birth

:

04/10/1971

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

10/02/1999

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. NG ENG BEE

Address

:

B-17-6,NO 39,JALAN 1/76, MUTIARA UPPER EAST,AMPANG CONDO, DESA PANDAN, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

550307-01-5597

Date of Birth

:

07/03/1955

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

29/10/1975

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MS. YAP SIEW FOONG

Address

:

7, PERSIARAN NEGERI SEMBILAN, FEDERAL HILL, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

440929-10-5186

Date of Birth

:

29/09/1944

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

29/10/1975

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

KRISHNAMURTHY PADMANABHAN

 

 

 

IC / PP No

:

Z1809273

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

18/03/2013

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

NG WAI KEE

 

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

BAKER TILLY MONTEIRO HENG

Auditor' Address

:

BAKER TILLY MH TOWER, LEVEL 10,TOWER 1,AVENUE 5, BANGSAR SOUTH CITY, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LIEW IRENE

 

IC / PP No

:

A1475711

 

New IC No

:

700227-10-5112

 

Address

:

LOT 32, JALAN KUARI, KAMPUNG CHERAS BARU, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. CHOONG LEE WAH

 

 

 

 

 

New IC No

:

720801-14-5732

 

Address

:

NO.20, JALAN 3, DESA JAYA, KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

19/04/1978

CHARGE

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 290,000.00

Unsatisfied

2

27/03/1980

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 1,220,000.00

Satisfied

4

19/11/1982

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 560,000.00

Satisfied

5

19/11/1982

N/A

LEE WAH BANK LTD

MYR 200,000.00

Satisfied

6

26/03/1984

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 310,000.00

Satisfied

7

12/12/1984

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 760,000.00

Satisfied

8

14/01/1991

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 1,250,000.00

Satisfied

9

03/12/1991

N/A

HONGKONG BANK MALAYSIA BHD

N/A

Satisfied

10

25/02/1992

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 4,100,000.00

Satisfied

11

25/02/1992

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 1,800,000.00

Satisfied

12

03/11/1992

N/A

FULCRUM CAPITAL SDN BHD

MYR 4,150,000.00

Satisfied

13

25/09/1993

CHARGE

INTRADAGANG MERCHANT BANKERS M BHD

MYR 3,000,000.00

Unsatisfied

14

22/10/1993

CHARGE

ARABMALAYSIA FINANCE BHD

MYR 650,000.00

Unsatisfied

15

10/03/1994

N/A

HONGKONG BANK MALAYSIA BERHAD

N/A

Satisfied

16

04/12/1997

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 675,000.00

Satisfied

17

04/12/1997

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 675,000.00

Satisfied

18

04/12/1997

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

N/A

Satisfied

19

04/12/1997

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

N/A

Satisfied

20

09/08/2004

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 100,000.00

Satisfied

21

31/12/2007

TRADE FINANCING GENERAL AGREEMENT

HSBC BANK MALAYSIA BHD

MYR 5,000,000.00

Unsatisfied

 

 

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

 

 

 



CLIENTELE

 

Local

:

N/A

 

 

 

Overseas

:

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The SC refused to disclose its clientele. 

OPERATIONS

 

Goods Traded

:

TRANSMISSION & CONVEYOR PRODUCTS, BALL BEARING, TUBING, ROD, SHEET,CONVEYOR BELTS, INDUSTRIAL BELTS, POSITIVE DISPLACEMENT PUMP, WORMGEAR SPEED REDUCER, S/STEEL WIRE MESH, MESH BELTS, MESH DEMISTER, MISTCOLLECTOR, SPUR, WORM, HELICAL, MILTER, BEVEL & RACK GEARS

 

 

 

 

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

YEAR

2013

2012

 


 

GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

25

25

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) trading in machinery & industrial parts supplies. 


The SC is supplier of products, customer solutions and services in the machinery and industrial sectors.


We were informed that the SC has in-house warehousing facility that keep all the stocks and material of their products.

The SC's products are :

- transmission & conveyor products
- ball bearing
- tubing
- rod
- sheet
- conveyor belts
- industrial belts
- positive displacement pump
- wormgear speed reducer
- s/steel wire mesh
- mesh belts
- mesh demister
- mistcollector
- spur
- worm
- helical
- milter
- bevel
- rack gears 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-92219898

Match

:

N/A

 

 

 

Address Provided by Client

:

DIR ADD

Current Address

:

19 JALAN DUA, OFF JALAN CHAN SOW LIN, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

N/A

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 10th December 2013 we contacted one of the staff from the SC and she provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

7.89%

]

 

Return on Net Assets

:

Unfavourable

[

7.82%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.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.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Favourable

[

6.42 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Favourable

[

0.15 Times

]

 

 

 

 

 

 

 

 

A low liabilities ratio has minimised the SC's financial risk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The higher turnover had helped to reduce the SC's losses. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC has a low liabilities ratio. It's liabilities were low and was not vulnerable to the financial risk.

 

 

 

 

 

 

 

Overall financial condition of the SC : STRONG

 

 

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 



INDUSTRY ANALYSIS

 

MSIC CODE

465 : Wholesale of machinery, equipment and supplies

 

 

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 1975, the SC is a Private Limited company, focusing on trading in machinery & industrial parts supplies. The SC has been in business for over 3 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. The SC is well backed by a listed company shareholders which would stimulate further growth for the SC. Hence, the potential growth of the SC is positive. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future. 


The SC's business operation is supported by 25 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


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. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. However, the SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. A low liabilities ratio has minimised the SC's financial risk. Given a positive net worth standing at MYR 17,971,682, the SC should be able to maintain its business in the near terms. 


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 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 promptly.

 




PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

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

SUMMARY

FULL

FULL

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

18,429,947

18,061,828

15,164,510

12,882,262

18,496,277

 

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

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

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

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

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

Total Turnover

18,429,947

18,061,828

15,164,510

12,882,262

18,496,277

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

1,417,741

<4,070,574>

801,937

304,320

919,913

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,417,741

<4,070,574>

801,937

304,320

919,913

Taxation

<144,666>

<427,489>

<344,709>

<155,923>

<718,284>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,273,075

<4,498,063>

457,228

148,397

201,629

Minority interests

144,666

-

-

-

-

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

1,417,741

<4,498,063>

457,228

148,397

201,629

 

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

1,417,741

<4,498,063>

457,228

148,397

201,629

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

9,343,941

19,962,004

19,504,776

19,356,379

19,154,750

 

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

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

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

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

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

As restated

9,343,941

19,962,004

19,504,776

19,356,379

19,154,750

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

10,761,682

15,463,941

19,962,004

19,504,776

19,356,379

DIVIDENDS - Ordinary (paid & proposed)

-

<6,120,000>

-

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

10,761,682

9,343,941

19,962,004

19,504,776

19,356,379

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

-

-

8,708

7,646

-

 

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

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

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

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

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

 

-

-

8,708

7,646

-

 

 

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

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

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

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

4,222,895

2,939,974

3,048,262

2,974,796

2,500,977

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investment properties

-

-

1,055,351

1,090,614

-

Investments

-

-

820,209

4,717,326

-

Deferred assets

-

-

800,189

737,230

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

1,119,552

2,675,749

6,545,170

3,143,664

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

4,222,895

4,059,526

5,724,011

9,519,966

5,644,641

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

-

-

5,421,262

7,257,400

-

Trade debtors

-

-

4,669,575

3,631,150

-

Other debtors, deposits & prepayments

-

-

138,892

136,607

-

Amount due from holding company

-

-

5,120,000

5,120,000

-

Amount due from related companies

-

-

21,042

18,954

-

Cash & bank balances

-

-

7,664,235

2,001,265

-

Others

-

-

345,981

196,907

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

16,467,637

15,389,107

23,380,987

18,362,283

23,639,820

 

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

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

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

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

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

TOTAL ASSET

20,690,532

19,448,633

29,104,998

27,882,249

29,284,461

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

-

1,306,475

1,054,365

-

Other creditors & accruals

-

-

506,310

113,108

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

2,565,472

2,750,026

1,812,785

1,167,473

2,718,082

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

13,902,165

12,639,081

21,568,202

17,194,810

20,921,738

 

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

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

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

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

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

TOTAL NET ASSETS

18,125,060

16,698,607

27,292,213

26,714,776

26,566,379

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

7,210,000

7,210,000

7,210,000

7,210,000

7,210,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

7,210,000

7,210,000

7,210,000

7,210,000

7,210,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

10,761,682

9,343,941

19,962,004

19,504,776

19,356,379

Others

-

144,666

120,209

-

-

 

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

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

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

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

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

TOTAL RESERVES

10,761,682

9,488,607

20,082,213

19,504,776

19,356,379

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

17,971,682

16,698,607

27,292,213

26,714,776

26,566,379

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

TOTAL LONG TERM LIABILITIES

153,378

-

-

-

-

 

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

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

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

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

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

 

18,125,060

16,698,607

27,292,213

26,714,776

26,566,379

 

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

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

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

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

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

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

 

 

 

Cash

-

-

7,664,235

2,001,265

-

Net Liquid Funds

-

-

7,664,235

2,001,265

-

Net Liquid Assets

13,902,165

12,639,081

16,146,940

9,937,410

20,921,738

Net Current Assets/(Liabilities)

13,902,165

12,639,081

21,568,202

17,194,810

20,921,738

Net Tangible Assets

18,125,060

16,698,607

27,292,213

26,714,776

26,566,379

Net Monetary Assets

13,748,787

12,639,081

16,146,940

9,937,410

20,921,738

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

-

-

0

0

-

Total Liabilities

2,718,850

2,750,026

1,812,785

1,167,473

2,718,082

Total Assets

20,690,532

19,448,633

29,104,998

27,882,249

29,284,461

Net Assets

18,125,060

16,698,607

27,292,213

26,714,776

26,566,379

Net Assets Backing

17,971,682

16,698,607

27,292,213

26,714,776

26,566,379

Shareholders' Funds

17,971,682

16,698,607

27,292,213

26,714,776

26,566,379

Total Share Capital

7,210,000

7,210,000

7,210,000

7,210,000

7,210,000

Total Reserves

10,761,682

9,488,607

20,082,213

19,504,776

19,356,379

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

-

-

4.23

1.71

-

Liquid Ratio

-

-

9.91

9.51

-

Current Ratio

6.42

5.60

12.90

15.73

8.70

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

-

-

130

206

-

Debtors Ratio

-

-

112

103

-

Creditors Ratio

-

-

31

30

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

-

-

0.00

0.00

-

Liabilities Ratio

0.15

0.16

0.07

0.04

0.10

Times Interest Earned Ratio

-

-

93.09

40.80

-

Assets Backing Ratio

2.51

2.32

3.79

3.71

3.68

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

7.69

<22.54>

5.29

2.36

4.97

Net Profit Margin

7.69

<24.90>

3.02

1.15

1.09

Return On Net Assets

7.82

<24.38>

2.97

1.17

3.46

Return On Capital Employed

7.82

<24.38>

2.97

1.17

3.46

Return On Shareholders' Funds/Equity

7.89

<26.94>

1.68

0.56

0.76

Dividend Pay Out Ratio (Times)

-

1.36

0.00

0.00

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

 

-

0

0

 




 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.10

UK Pound

1

Rs.101.27

Euro

1

Rs.85.43

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.