MIRA INFORM REPORT

 

 

Report Date :

23.12.2013

 

IDENTIFICATION DETAILS

 

Name :

POWERPOINT ELECTRICAL SDN. BHD.

 

 

Registered Office :

Lots 9240-9243, Section 64, Ktld, Jalan Kwong Lee Bank, 93450 Kuching, Sarawak

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

27.10.1987

 

 

Com. Reg. No.:

165610-D

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading in machinery & electrical goods

 

 

No. of Employees :

Not Available

 

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 :

Slow but correct

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.

:

165610-D

COMPANY NAME

:

POWERPOINT ELECTRICAL SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

27/10/1987

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LOTS 9240-9243, SECTION 64, KTLD, JALAN KWONG LEE BANK, 93450 KUCHING, SARAWAK, MALAYSIA.

BUSINESS ADDRESS

:

LOT 9240-9243, SECTION 64, KTLD, JALAN KWONG LEE BANK, PENDING, 93450 KUCHING, SARAWAK, MALAYSIA.

TEL.NO.

:

082-346188

FAX.NO.

:

082-345118

CONTACT PERSON

:

LU NGUANG SIONG ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

46522

PRINCIPAL ACTIVITY

:

TRADING IN MACHINERY & ELECTRICAL GOODS

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 4,000,000.00 DIVIDED INTO
ORDINARY SHARES 1,000,000 CASH AND 3,000,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 69,334,018 [2012]

NET WORTH

:

MYR 14,516,187 [2012]

 

 

 

STAFF STRENGTH

:

N/A

BANKER (S)

:

HONG LEONG BANK BHD
PUBLIC BANK BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

 

HISTORY / BACKGROUND

 

The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) trading in machinery & electrical goods.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/03/2010

MYR 5,000,000.00

MYR 4,000,000.00

15/04/1997

MYR 5,000,000.00

MYR 1,000,000.00

22/10/1992

MYR 500,000.00

MYR 150,000.00

09/05/1988

MYR 100,000.00

MYR 60,000.00

03/11/1987

MYR 100,000.00

MYR 3.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. LU NGUANG SIONG +

323, LORONG 10, JALAN STAMPIN, 93350 KUCHING, SARAWAK, MALAYSIA.

470305-13-5149 K659872

2,600,000.00

65.00

MS. CHAO YEN HONG +

323, LORONG 10, JALAN STAMPIN, 93350 KUCHING, SARAWAK, MALAYSIA.

490921-89-5078 133303926

1,400,000.00

35.00

 

 

 

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

------

 

 

 

4,000,000.00

100.00

 

 

 

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

=====

+ Also Director




 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. CHAO YEN HONG

Address

:

323, LORONG 10, JALAN STAMPIN, 93350 KUCHING, SARAWAK, MALAYSIA.

IC / PP No

:

133303926

New IC No

:

490921-89-5078

Date of Birth

:

21/09/1949

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/04/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. LU NGUANG SIONG

Address

:

323, LORONG 10, JALAN STAMPIN, 93350 KUCHING, SARAWAK, MALAYSIA.

IC / PP No

:

K659872

New IC No

:

470305-13-5149

Date of Birth

:

05/03/1947

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

27/10/1987

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

1)

Name of Subject

:

LU NGUANG SIONG

 

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

NGU KOON TENG & CO.

Auditor' Address

:

306, LEBUH SEKAMA, 1ST FLOOR, 93300 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

 


 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. WONG KIE LING

 

IC / PP No

:

K263646

 

New IC No

:

530104-13-5662

 

Address

:

130, JALAN CANNA, 93450 KUCHING, SARAWAK, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HONG LEONG BANK BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

 

3)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

12/03/1992

CHARGE

PUBLIC BANK BERHAD

MYR 220,000.00

Unsatisfied

2

28/08/1992

CHARGE

PUBLIC BANK BERHAD

MYR 80,000.00

Unsatisfied

3

20/11/1992

CHARGE

PUBLIC BANK BERHAD

MYR 40,000.00

Unsatisfied

4

07/04/1995

N/A

BANK UTAMA MALAYSIA BHD

MYR 600,000.00

Satisfied

5

24/01/1996

N/A

ARABMALAYSIAN MERCHANT BANK BHD

MYR 1,280,000.00

Satisfied

6

05/07/1997

N/A

PUBLIC BANK BHD

MYR 1,500,000.00

Unsatisfied

7

16/07/1997

N/A

HONGKONG BANK MALAYSIA BHD

MYR 1,000,000.00

Satisfied

10

07/08/1997

LOAN AGREEMENT & ASSIGNMENT

PUBLIC BANK BHD

MYR 900,000.00

Unsatisfied

8

20/10/1997

CHARGE

PUBLIC BANK BHD

MYR 400,000.00

Unsatisfied

9

20/10/1997

CHARGE

PUBLIC BANK BHD

MYR 1,400,000.00

Unsatisfied

11

06/02/2003

N/A

PUBLIC BANK BERHAD

MYR 1,300,000.00

Satisfied

12

17/04/2003

N/A

HONG LEONG BANK BERHAD

MYR 538,222.00

Unsatisfied

13

17/11/2003

N/A

PUBLIC BANK BERHAD

MYR 2,000,000.00

Unsatisfied

14

17/11/2003

N/A

PUBLIC BANK BERHAD

MYR 2,000,000.00

Unsatisfied

15

22/06/2006

N/A

PUBLIC BANK BHD

MYR 1,700,000.00

Unsatisfied

16

15/06/2007

N/A

PUBLIC BANK BHD

MYR 1,000,000.00

Unsatisfied

17

20/11/2007

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 3,000,000.00

Unsatisfied

18

28/01/2008

N/A

HONG LEONG BANK BERHAD

MYR 2,500,000.00

Unsatisfied

19

16/06/2008

CHARGE

PUBLIC BANK BHD

MYR 7,000,000.00

Unsatisfied

20

05/11/2008

OPEN CHARGE

OCBC BANK (MALAYSIA) BHD

N/A

Unsatisfied

21

10/10/2011

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

N/A

Unsatisfied

22

10/10/2011

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

N/A

Unsatisfied

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject 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 SUBJECT


* We have checked through the Subject 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 Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :


 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

X

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

 

 

 

 

 

 

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

MACHINERY AND ELECTRICAL GOODS

 

 

 

 

Member(s) / Affiliate(s)

:

THE ELECTRICAL AND ELECTRONICS ASSOCIATION OF MALAYSIA (TEEAM)

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

 

 

 

 

Total Number of Employees:

YEAR

2008

 


GROUP

30

 

 

 

 

 

 

 

 

COMPANY

N/A

 

 

 

 

 

 

 

 

 

Branch

:

YES

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading in machinery & electrical goods.

The Subject is primarily engaged as an importer and trader of machinery and electrical components for utilities industries such as power, water, oil and gas industries.

The Subject's products comprised of cables, transformers, lightings and others. The Subject caters for both Lower Voltage (LV) and High Voltage (HV) electrical appliances.

Besides the Subject also trades several types machineries for the construction and manufacturing sectors. Most of the machineries are of high technology.

The Subject provides maintenance services upon customers' requirements.


RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA)

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

082-346188

Match

:

N/A

 

 

 

Address Provided by Client

:

LOTS 9240-9243 SECT 64 KTLD JALAN KWONG LEE BANK PENDING 93450 KUCHING P O BOX 3223 93762 KUCHING SARAWAK

Current Address

:

LOT 9240-9243, SECTION 64, KTLD, JALAN KWONG LEE BANK, PENDING, 93450 KUCHING, SARAWAK, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


we contacted one of the staff from the Subject and she provided some information on the Subject.

The Subject refused to disclose its number of employees.

The address provided belongs to the Subject's PO Box address.


FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2010 - 2012

]

 

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

18.02%

]

 

Return on Net Assets

:

Acceptable

[

27.63%

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

11 Days

]

 

Debtor Ratio

:

Acceptable

[

63 Days

]

 

Creditors Ratio

:

Unfavourable

[

103 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.12 Times

]

 

Current Ratio

:

Unfavourable

[

1.22 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

8.17 Times

]

 

Gearing Ratio

:

Favourable

[

0.19 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject 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 Subject : 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

46522 : Wholesale of electronic components and wiring accessories

 

 

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 Subject is a Private Limited company, focusing on trading in machinery & electrical goods. With its long presence in the industry coupled with its vast experiences in the business, the Subject should have built up certain goodwill with its clients over times. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

Over the years, the Subject should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. Overall, we regard that the Subject's management capability is average.

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 Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject 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. Being a lowly geared company, the Subject 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 14,516,187, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject'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 Subject has a good control over its resources.

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

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject'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 Subject normally.

 

 

 

PROFIT AND LOSS ACCOUNT

 

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

POWERPOINT ELECTRICAL SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

Months

12

12

12

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

Currency

MYR

MYR

MYR

 

 

 

 

TURNOVER

69,334,018

51,975,357

36,589,729

 

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

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

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

Total Turnover

69,334,018

51,975,357

36,589,729

Costs of Goods Sold

<62,837,149>

<45,557,052>

-

 

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

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

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

Gross Profit

6,496,869

6,418,305

-

 

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

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

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

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

3,541,398

3,205,097

1,686,797

 

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

3,541,398

3,205,097

1,686,797

Taxation

<925,184>

<938,009>

-

 

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

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

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

PROFIT/(LOSS) AFTER TAXATION

2,616,214

2,267,088

1,686,797

 

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

As previously reported

7,899,973

5,632,885

6,946,088

 

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

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

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

As restated

7,899,973

5,632,885

6,946,088

 

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

10,516,187

7,899,973

8,632,885

DIVIDENDS - Ordinary (paid & proposed)

-

-

<3,000,000>

 

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

10,516,187

7,899,973

5,632,885

 

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

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

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

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

Hire purchase

8,006

6,854

-

Term loan / Borrowing

2,414

3,120

-

Others

483,355

608,092

-

 

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

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

 

 

493,775

618,066

 

 

 

BALANCE SHEET

 

POWERPOINT ELECTRICAL SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

FIXED ASSETS

4,712,010

9,340,354

9,413,099

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

Investment properties

4,876,645

-

-

 

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

4,876,645

-

-

 

 

 

 

 

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

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

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

TOTAL LONG TERM ASSETS

9,588,655

9,340,354

9,413,099

 

 

 

 

CURRENT ASSETS

 

 

 

Stocks

2,134,084

1,475,306

-

Trade debtors

11,886,085

7,258,263

-

Other debtors, deposits & prepayments

11,118,422

10,558,865

-

Short term deposits

1,145,854

803,124

-

Amount due from director

-

105,952

-

Cash & bank balances

99,189

76,810

-

Others

1,687,166

1,284,721

-

 

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

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

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

TOTAL CURRENT ASSETS

28,070,800

21,563,041

18,249,934

 

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

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

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

TOTAL ASSET

37,659,455

30,903,395

27,663,033

 

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

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

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

 

 

 

 

CURRENT LIABILITIES

 

 

 

Trade creditors

17,796,569

8,683,244

-

Other creditors & accruals

2,214,445

2,675,356

-

Hire purchase & lease creditors

46,821

32,512

-

Bank overdraft

2,557,405

6,970,840

-

Short term borrowings/Term loans

20,944

19,582

-

Amounts owing to director

26,135

-

-

Provision for taxation

395,135

525,326

-

 

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

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

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

TOTAL CURRENT LIABILITIES

23,057,454

18,906,860

17,890,258

 

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

5,013,346

2,656,181

359,676

 

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

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

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

TOTAL NET ASSETS

14,602,001

11,996,535

9,772,775

 

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

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

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

 

 

 

 

SHARE CAPITAL

 

 

 

Ordinary share capital

4,000,000

4,000,000

4,000,000

 

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

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

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

TOTAL SHARE CAPITAL

4,000,000

4,000,000

4,000,000

 

 

 

 

RESERVES

 

 

 

Retained profit/(loss) carried forward

10,516,187

7,899,973

5,632,885

 

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

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

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

TOTAL RESERVES

10,516,187

7,899,973

5,632,885

 

 

 

 

 

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

14,516,187

11,899,973

9,632,885

 

 

 

 

LONG TERM LIABILITIES

 

 

 

Long term loans

5,465

26,402

-

Hire purchase creditors

71,734

61,818

-

Deferred taxation

8,615

8,342

-

 

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

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

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

TOTAL LONG TERM LIABILITIES

85,814

96,562

139,890

 

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

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

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

 

14,602,001

11,996,535

9,772,775

 

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

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

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

 

 

FINANCIAL RATIO

 

POWERPOINT ELECTRICAL SDN. BHD.

 

TYPES OF FUNDS

 

 

 

Cash

1,245,043

879,934

-

Net Liquid Funds

<1,312,362>

<6,090,906>

-

Net Liquid Assets

2,879,262

1,180,875

359,676

Net Current Assets/(Liabilities)

5,013,346

2,656,181

359,676

Net Tangible Assets

14,602,001

11,996,535

9,772,775

Net Monetary Assets

2,793,448

1,084,313

219,786

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

Total Borrowings

2,702,369

7,111,154

-

Total Liabilities

23,143,268

19,003,422

18,030,148

Total Assets

37,659,455

30,903,395

27,663,033

Net Assets

14,602,001

11,996,535

9,772,775

Net Assets Backing

14,516,187

11,899,973

9,632,885

Shareholders' Funds

14,516,187

11,899,973

9,632,885

Total Share Capital

4,000,000

4,000,000

4,000,000

Total Reserves

10,516,187

7,899,973

5,632,885

 

 

 

 

LIQUIDITY (Times)

 

 

 

Cash Ratio

0.05

0.05

-

Liquid Ratio

1.12

1.06

-

Current Ratio

1.22

1.14

1.02

 

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

 

Stock Ratio

11

10

-

Debtors Ratio

63

51

-

Creditors Ratio

103

70

-

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

Gearing Ratio

0.19

0.60

-

Liabilities Ratio

1.59

1.60

1.87

Times Interest Earned Ratio

8.17

6.19

-

Assets Backing Ratio

3.65

3.00

2.44

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

Operating Profit Margin

5.11

6.17

4.61

Net Profit Margin

3.77

4.36

4.61

Return On Net Assets

27.63

31.87

17.26

Return On Capital Employed

23.45

20.12

17.26

Return On Shareholders' Funds/Equity

18.02

19.05

17.51

Dividend Pay Out Ratio (Times)

-

-

1.78

 

 

 

 




 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.24

UK Pound

1

Rs.101.82

Euro

1

Rs.84.88

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.