MIRA INFORM REPORT

 

 

Report Date :

20.02.2013

 

IDENTIFICATION DETAILS

 

Name :

HEIDELBERG MALAYSIA SDN BHD

 

 

Formerly Known As :

DIAMOND RETURNS SDN BHD (01/12/1998)

 

 

Registered Office :

1a, Jalan 205, Off Jalan Tandang, 46050 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

15.11.1995

 

 

Com. Reg. No.:

367312-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Sale of Printing Machines

 

 

No. of Employees :

150

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow

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

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

367312-K

COMPANY NAME

:

HEIDELBERG MALAYSIA SDN BHD

FORMER NAME

:

DIAMOND RETURNS SDN BHD (01/12/1998)

INCORPORATION DATE

:

15/11/1995

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

1A, JALAN 205, OFF JALAN TANDANG, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

NO 1A, JALAN 205, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-79533288

FAX.NO.

:

03-79533299

WEB SITE

:

www.my.heidelberg.com

CONTACT PERSON

:

BENT SERRITSLEV ( DIRECTOR )

INDUSTRY CODE

:

51520

PRINCIPAL ACTIVITY

:

SALE OF PRINTING MACHINES

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

SALES

:

MYR 137,626,167 [2011]

NET WORTH

:

MYR 3,297,650 [2011]

M1000 OVERALL RANKING

:

939[2004]

M1000 INDUSTRY RANKING

:

27[2004]

STAFF STRENGTH

:

150 [2012]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

HIGH

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

SATISFACTORY

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) sale of printing machines.

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

According to the Malaysia 1000 publication, the SC's ranking are as follows:

 

 

 

 

YEAR

2004

 

 

OVERALL RANKING

939

 

 

INDUSTRY RANKING

27

 

 

The ultimate holding company of the SC is HEIDELBERGER DRUCKMASCHINEN AKTIENGESELLSCHAFT, a company incorporated in GERMANY.

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

HEIDELBERGER DRUCKMASCHINEN AKTIENGESELLSCHAFT

 

000015716

10,000,000.00

100.00

 

 

 

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

------

 

 

 

10,000,000.00

100.00

 

 

 

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

=====

+ Also Director

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR.RAYMOND HOR FOOK WENG

Address

:

27, JALAN BU 7/5, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A0944139

New IC No

:

680429-06-5029

Date of Birth

:

29/04/1968

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

30/11/2000

 

DIRECTOR 2

 

Name Of Subject

:

BENT SERRITSLEV

Address

:

12, JALAN TR 9/7, TROPICANA GOLF RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

P204195240

Date of Birth

:

20/07/1960

Nationality

:

GERMAN

Date of Appointment

:

08/06/2000

Remark

:

OLD PP: 100221088 & 100229992



MANAGEMENT

 

 

 

1)

Name of Subject

:

BENT SERRITSLEV

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

RAYMOND HOR FOOK WENG

 

Position

:

FINANCE DIRECTOR

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

LEVEL 15, 1 SENTRAL, JALAN TRAVERS,K.L. CENTRAL, P.O.BOX 10192, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SEE SIEW CHENG

 

IC / PP No

:

A0735809

 

New IC No

:

670505-10-5880

 

Address

:

17, JALAN ARA SD 7/4G, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

2)

Company Secretary

:

MS. LEONG SHIAK WAN

 

IC / PP No

:

A1393261

 

New IC No

:

691117-10-5486

 

Address

:

207, BLOCK E, PARADESA TROPICA, 7, PERSIARAN MERANTI PJU 9, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

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

:

NO

Percentage

:

0%

Overseas

:

YES

Percentage

:

100%

Import Countries

:

EUROPE

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Percentage

:

0%

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES, LETTER OF CREIDT (LC)

 

OPERATIONS

 

Goods Traded

:

PRINTING MACHINES

 

 

 

 

Competitor(s)

:

DATA COLLECTION SYSTEMS (M) SDN BHD
FERROSTAAL EQUIPMENT SOLUTIONS SDN BHD
GALAXY COMMUNICATION & OFFICE AUTOMATION SDN BHD
LYRECO OFFICE SUPPLIES (MALAYSIA) SDN BHD
SATO AUTO-ID MALAYSIA SDN BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

150

150

150

153

159

 

 

 

 

 

Branch

:

YES

 

Other Information:


The SC is principally engaged in the (as a / as an) sale of printing machines.

The SC is principally engaged in trading of printing equipments, spare parts and its related accessories.

Heidelberg is the market and technology leader in sheetfed offset printing

The SC has three branches located in Johore, Sarawak and Penang.

The SC's sells the products mainly to the print media industry.

The SC is also involved in providing after sales maintenance services.

The SC's products are sold under the brand name "Heidelberg".

PROJECTS


No projects found in our databank

RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA)database, but no latest development was noted in our investigation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-79533288

Match

:

N/A

 

 

 

Address Provided by Client

:

NO 1A, JALAN 205,46050,PETALING JAYA,SELANGOR.

Current Address

:

NO 1A, JALAN 205, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the Accounts Department. She provided some information on the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Return on Shareholder Funds

:

Unfavourable

[

<33.65%>

]

 

Return on Net Assets

:

Unfavourable

[

<33.65%>

]

 

 

 

 

 

 

 

 

The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Acceptable

[

1.04 Times

]

 

 

 

 

 

 

 

 

The SC has an adequate 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

:

Unfavourable

[

19.74 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

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's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the SC : POOR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 

 

 

INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

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

51520 : Wholesale of office machinery and business equipment e.g. cash register

 

 

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.


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 : Marginal Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1995, the SC is a Private Limited company, focusing on sale of printing machines. With its long establishment in the market, the SC has received strong support from its stable customers base. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The SC is a large entity with strong capital position.


Investigation revealed that the SC concentrates only on the local market. This narrow market segment has placed the SC at high business risk and limits its business expansion opportunities. Any adverse changes to the local economy might have a negative impact on the SC's business performance. The SC is a fairly large company with over 150 staff in its operations. Overall, we regard that the SC's management capability is average.


In year 2011, the SC has recorded a turnover of MYR 137,626,167 and it has suffered pre-tax losses of MYR 1,109,495. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. However, the SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. Unfortunately, the SC may face difficulties in maintaining its business in near term with a small net worth of MYR 3,297,650.


Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth. Investigation revealed that the SC's supplies are 100% sourced from overseas countries. As an imported oriented company, its forex exposure is high. The SC faces foreign currency fluctuation which may affect its overall operating costs.


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.


In view of its poor financial performance, we only recommend credit be proceeded to the SC with guarantee.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

HEIDELBERG MALAYSIA SDN BHD

 

Financial Year End

31/03/2011

Months

12

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

SUMMARY

Currency

MYR

 

 

TURNOVER

137,626,167

 

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

Total Turnover

137,626,167

 

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

 

 

PROFIT/(LOSS) FROM OPERATIONS

<1,109,495>

 

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

PROFIT/(LOSS) BEFORE TAXATION

<1,109,495>

Taxation

0

 

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

PROFIT/(LOSS) AFTER TAXATION

<1,109,495>

 

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

As previously reported

<5,592,855>

 

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

As restated

<5,592,855>

 

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<6,702,350>

 

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<6,702,350>

 

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

 

 

 

 

 

BALANCE SHEET

 

 

HEIDELBERG MALAYSIA SDN BHD

 

ASSETS EMPLOYED:

 

FIXED ASSETS

528,799

 

 

 

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

TOTAL LONG TERM ASSETS

528,799

 

 

CURRENT ASSETS

 

TOTAL CURRENT ASSETS

67,878,904

 

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

TOTAL ASSET

68,407,703

 

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

 

 

CURRENT LIABILITIES

 

TOTAL CURRENT LIABILITIES

65,110,053

 

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

NET CURRENT ASSETS/(LIABILITIES)

2,768,851

 

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

TOTAL NET ASSETS

3,297,650

 

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

 

 

SHARE CAPITAL

 

Ordinary share capital

10,000,000

 

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

TOTAL SHARE CAPITAL

10,000,000

 

 

RESERVES

 

Retained profit/(loss) carried forward

<6,702,350>

 

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

TOTAL RESERVES

<6,702,350>

 

 

 

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

SHAREHOLDERS' FUNDS/EQUITY

3,297,650

 

 

 

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

 

3,297,650

 

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

 

 

 

 

 

FINANCIAL RATIO

 

 

HEIDELBERG MALAYSIA SDN BHD

 

TYPES OF FUNDS

 

Net Liquid Assets

2,768,851

Net Current Assets/(Liabilities)

2,768,851

Net Tangible Assets

3,297,650

Net Monetary Assets

2,768,851

 

 

BALANCE SHEET ITEMS

 

Total Liabilities

65,110,053

Total Assets

68,407,703

Net Assets

3,297,650

Net Assets Backing

3,297,650

Shareholders' Funds

3,297,650

Total Share Capital

10,000,000

Total Reserves

<6,702,350>

 

 

LIQUIDITY (Times)

 

Current Ratio

1.04

 

 

SOLVENCY RATIOS (Times)

 

Liabilities Ratio

19.74

Assets Backing Ratio

0.33

 

 

PERFORMANCE RATIO (%)

 

Operating Profit Margin

<0.81>

Net Profit Margin

<0.81>

Return On Net Assets

<33.65>

Return On Capital Employed

<33.65>

Return On Shareholders' Funds/Equity

<33.65>

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.29

UK Pound

1

Rs.84.09

Euro

1

Rs.72.44

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

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

 

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

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

 

MIRA INFORM REPORT

 

 

Report Date :

20.02.2013

 

IDENTIFICATION DETAILS

 

Name :

HEIDELBERG MALAYSIA SDN BHD

 

 

Formerly Known As :

DIAMOND RETURNS SDN BHD (01/12/1998)

 

 

Registered Office :

1a, Jalan 205, Off Jalan Tandang, 46050 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

15.11.1995

 

 

Com. Reg. No.:

367312-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Sale of Printing Machines

 

 

No. of Employees :

150

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow

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

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

367312-K

COMPANY NAME

:

HEIDELBERG MALAYSIA SDN BHD

FORMER NAME

:

DIAMOND RETURNS SDN BHD (01/12/1998)

INCORPORATION DATE

:

15/11/1995

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

1A, JALAN 205, OFF JALAN TANDANG, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

NO 1A, JALAN 205, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-79533288

FAX.NO.

:

03-79533299

WEB SITE

:

www.my.heidelberg.com

CONTACT PERSON

:

BENT SERRITSLEV ( DIRECTOR )

INDUSTRY CODE

:

51520

PRINCIPAL ACTIVITY

:

SALE OF PRINTING MACHINES

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

SALES

:

MYR 137,626,167 [2011]

NET WORTH

:

MYR 3,297,650 [2011]

M1000 OVERALL RANKING

:

939[2004]

M1000 INDUSTRY RANKING

:

27[2004]

STAFF STRENGTH

:

150 [2012]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

HIGH

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

SATISFACTORY

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) sale of printing machines.

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

According to the Malaysia 1000 publication, the SC's ranking are as follows:

 

 

 

 

YEAR

2004

 

 

OVERALL RANKING

939

 

 

INDUSTRY RANKING

27

 

 

The ultimate holding company of the SC is HEIDELBERGER DRUCKMASCHINEN AKTIENGESELLSCHAFT, a company incorporated in GERMANY.

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

HEIDELBERGER DRUCKMASCHINEN AKTIENGESELLSCHAFT

 

000015716

10,000,000.00

100.00

 

 

 

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

------

 

 

 

10,000,000.00

100.00

 

 

 

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

=====

+ Also Director

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR.RAYMOND HOR FOOK WENG

Address

:

27, JALAN BU 7/5, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A0944139

New IC No

:

680429-06-5029

Date of Birth

:

29/04/1968

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

30/11/2000

 

DIRECTOR 2

 

Name Of Subject

:

BENT SERRITSLEV

Address

:

12, JALAN TR 9/7, TROPICANA GOLF RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

P204195240

Date of Birth

:

20/07/1960

Nationality

:

GERMAN

Date of Appointment

:

08/06/2000

Remark

:

OLD PP: 100221088 & 100229992



MANAGEMENT

 

 

 

1)

Name of Subject

:

BENT SERRITSLEV

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

RAYMOND HOR FOOK WENG

 

Position

:

FINANCE DIRECTOR

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

LEVEL 15, 1 SENTRAL, JALAN TRAVERS,K.L. CENTRAL, P.O.BOX 10192, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SEE SIEW CHENG

 

IC / PP No

:

A0735809

 

New IC No

:

670505-10-5880

 

Address

:

17, JALAN ARA SD 7/4G, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

2)

Company Secretary

:

MS. LEONG SHIAK WAN

 

IC / PP No

:

A1393261

 

New IC No

:

691117-10-5486

 

Address

:

207, BLOCK E, PARADESA TROPICA, 7, PERSIARAN MERANTI PJU 9, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

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

:

NO

Percentage

:

0%

Overseas

:

YES

Percentage

:

100%

Import Countries

:

EUROPE

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Percentage

:

0%

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES, LETTER OF CREIDT (LC)

 

OPERATIONS

 

Goods Traded

:

PRINTING MACHINES

 

 

 

 

Competitor(s)

:

DATA COLLECTION SYSTEMS (M) SDN BHD
FERROSTAAL EQUIPMENT SOLUTIONS SDN BHD
GALAXY COMMUNICATION & OFFICE AUTOMATION SDN BHD
LYRECO OFFICE SUPPLIES (MALAYSIA) SDN BHD
SATO AUTO-ID MALAYSIA SDN BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

150

150

150

153

159

 

 

 

 

 

Branch

:

YES

 

Other Information:


The SC is principally engaged in the (as a / as an) sale of printing machines.

The SC is principally engaged in trading of printing equipments, spare parts and its related accessories.

Heidelberg is the market and technology leader in sheetfed offset printing

The SC has three branches located in Johore, Sarawak and Penang.

The SC's sells the products mainly to the print media industry.

The SC is also involved in providing after sales maintenance services.

The SC's products are sold under the brand name "Heidelberg".

PROJECTS


No projects found in our databank

RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA)database, but no latest development was noted in our investigation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-79533288

Match

:

N/A

 

 

 

Address Provided by Client

:

NO 1A, JALAN 205,46050,PETALING JAYA,SELANGOR.

Current Address

:

NO 1A, JALAN 205, 46050 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the Accounts Department. She provided some information on the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Return on Shareholder Funds

:

Unfavourable

[

<33.65%>

]

 

Return on Net Assets

:

Unfavourable

[

<33.65%>

]

 

 

 

 

 

 

 

 

The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Acceptable

[

1.04 Times

]

 

 

 

 

 

 

 

 

The SC has an adequate 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

:

Unfavourable

[

19.74 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

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's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the SC : POOR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 

 

 

INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

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

51520 : Wholesale of office machinery and business equipment e.g. cash register

 

 

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.


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 : Marginal Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1995, the SC is a Private Limited company, focusing on sale of printing machines. With its long establishment in the market, the SC has received strong support from its stable customers base. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The SC is a large entity with strong capital position.


Investigation revealed that the SC concentrates only on the local market. This narrow market segment has placed the SC at high business risk and limits its business expansion opportunities. Any adverse changes to the local economy might have a negative impact on the SC's business performance. The SC is a fairly large company with over 150 staff in its operations. Overall, we regard that the SC's management capability is average.


In year 2011, the SC has recorded a turnover of MYR 137,626,167 and it has suffered pre-tax losses of MYR 1,109,495. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. However, the SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. Unfortunately, the SC may face difficulties in maintaining its business in near term with a small net worth of MYR 3,297,650.


Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth. Investigation revealed that the SC's supplies are 100% sourced from overseas countries. As an imported oriented company, its forex exposure is high. The SC faces foreign currency fluctuation which may affect its overall operating costs.


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.


In view of its poor financial performance, we only recommend credit be proceeded to the SC with guarantee.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

HEIDELBERG MALAYSIA SDN BHD

 

Financial Year End

31/03/2011

Months

12

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

SUMMARY

Currency

MYR

 

 

TURNOVER

137,626,167

 

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

Total Turnover

137,626,167

 

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

 

 

PROFIT/(LOSS) FROM OPERATIONS

<1,109,495>

 

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

PROFIT/(LOSS) BEFORE TAXATION

<1,109,495>

Taxation

0

 

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

PROFIT/(LOSS) AFTER TAXATION

<1,109,495>

 

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

As previously reported

<5,592,855>

 

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

As restated

<5,592,855>

 

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<6,702,350>

 

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<6,702,350>

 

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

 

 

 

 

 

BALANCE SHEET

 

 

HEIDELBERG MALAYSIA SDN BHD

 

ASSETS EMPLOYED:

 

FIXED ASSETS

528,799

 

 

 

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

TOTAL LONG TERM ASSETS

528,799

 

 

CURRENT ASSETS

 

TOTAL CURRENT ASSETS

67,878,904

 

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

TOTAL ASSET

68,407,703

 

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

 

 

CURRENT LIABILITIES

 

TOTAL CURRENT LIABILITIES

65,110,053

 

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

NET CURRENT ASSETS/(LIABILITIES)

2,768,851

 

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

TOTAL NET ASSETS

3,297,650

 

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

 

 

SHARE CAPITAL

 

Ordinary share capital

10,000,000

 

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

TOTAL SHARE CAPITAL

10,000,000

 

 

RESERVES

 

Retained profit/(loss) carried forward

<6,702,350>

 

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

TOTAL RESERVES

<6,702,350>

 

 

 

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

SHAREHOLDERS' FUNDS/EQUITY

3,297,650

 

 

 

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

 

3,297,650

 

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

 

 

 

 

 

FINANCIAL RATIO

 

 

HEIDELBERG MALAYSIA SDN BHD

 

TYPES OF FUNDS

 

Net Liquid Assets

2,768,851

Net Current Assets/(Liabilities)

2,768,851

Net Tangible Assets

3,297,650

Net Monetary Assets

2,768,851

 

 

BALANCE SHEET ITEMS

 

Total Liabilities

65,110,053

Total Assets

68,407,703

Net Assets

3,297,650

Net Assets Backing

3,297,650

Shareholders' Funds

3,297,650

Total Share Capital

10,000,000

Total Reserves

<6,702,350>

 

 

LIQUIDITY (Times)

 

Current Ratio

1.04

 

 

SOLVENCY RATIOS (Times)

 

Liabilities Ratio

19.74

Assets Backing Ratio

0.33

 

 

PERFORMANCE RATIO (%)

 

Operating Profit Margin

<0.81>

Net Profit Margin

<0.81>

Return On Net Assets

<33.65>

Return On Capital Employed

<33.65>

Return On Shareholders' Funds/Equity

<33.65>

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.29

UK Pound

1

Rs.84.09

Euro

1

Rs.72.44

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

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

 

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

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

 

 

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

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