MIRA INFORM REPORT

 

 

Report Date :

13.06.2013

 

IDENTIFICATION DETAILS

 

Name :

MFE FORMWORK TECHNOLOGY SDN. BHD.

 

 

Formerly Known As :

MIVAN FAR EAST SDN BHD

 

 

Registered Office :

Lot 824, Komplek Sun, Jalan Bukit Bintang, 8th Floor, 55100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia.

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

05.09.1990

 

 

Com. Reg. No.:

203754-U

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing of formwork system for civil engineering construction.

 

 

No. of Employees :

600 [2013]

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

NOTES :

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

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

 Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

malaysia - ECONOMIC OVERVIEW

 

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

 

Source : CIA

 

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

203754-U

COMPANY NAME

:

MFE FORMWORK TECHNOLOGY SDN. BHD.

FORMER NAME

:

MIVAN FAR EAST SDN BHD (03/12/2007)
SPIRE FAR EAST SDN BHD (12/03/1992)

INCORPORATION DATE

:

05/09/1990

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LOT 824, KOMPLEK SUN, JALAN BUKIT BINTANG, 8TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

NO 501, 4TH FLOOR, BLOCK B, GLOMAC BUSINESS CENTRE, 10 JALAN SS 6/1, KELANA JAYA,, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78032806

FAX.NO.

:

03-78033437

WEB SITE

:

WWW.MFEFORMWORK.COM

CONTACT PERSON

:

ELAINE LAI ( HUMAN RESOURCE MANAGER )

INDUSTRY CODE

:

28110

PRINCIPAL ACTIVITY

:

MANUFACTURING OF FORMWORK SYSTEM FOR CIVIL ENGINEERING CONSTRUCTION

AUTHORISED CAPITAL

:

MYR 11,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARES 1,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 203,474,081 [2011]

NET WORTH

:

MYR 29,552,037 [2011]

STAFF STRENGTH

:

600 [2013]

BANKER (S)

 

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

GOOD

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

 

HISTORY / BACKGROUND

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) manufacturing of formwork system for civil engineering construction.

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

The immediate holding company of the SC is MFE SYSTEM FORMWORK TECHNOLOGY LIMITED, a company incorporated in UNITED KINGDOM.

The ultimate holding company of the SC is MFE HOLDINGS (MAURITIUS) LIMITED, a company incorporated in MAURITIUS.

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MFE SYSTEM FORMWORK TECHNOLOGY LIMITED

CENTRE HOUSE, 79 CHICHESTER STREET, BELFAST BTI 4JE, UNITED KINGDOM.

00215698

1,000,000.00

100.00

 

 

 

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

------

 

 

 

1,000,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

JAMES ROBINSON

Address

:

A-19-5, MONT KIARA, AMAN 4, JALAN KIARA 2, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

761246966

Date of Appointment

:

28/09/2009

 

DIRECTOR 2

 

Name Of Subject

:

MR. PATRICK GERARD GORHAM

Address

:

B27-2, KIARAMAS SUTERA CONDO, 7, JALAN DESA KIARA, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

LT0009566

Nationality

:

IRISH

Date of Appointment

:

09/06/2010

 

DIRECTOR 3

 

Name Of Subject

:

JASON ALEKSANDER KARDACHI

Address

:

162 WATTEN ESTATE, ROAD SINGAPORE, 287611, SINGAPORE.

IC / PP No

:

E4035148

Nationality

:

AUSTRALIAN

Date of Appointment

:

23/08/2011

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

ELAINE LAI

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

2)

Name of Subject

:

PATRICK JERARD GORHAM

 

Position

:

FACTORY MANAGER

 

 

 

 

 

3)

Name of Subject

:

JAMES TEO

 

Position

:

OPERATIONS MANAGER

 

 

 

 

 

4)

Name of Subject

:

JAMES ROBINSON

 

Position

:

MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

KPMG TOWER 8, FIRST AVENUE, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. TAN BENG HOCK

 

IC / PP No

:

4086144

 

New IC No

:

361028-07-5295

 

Address

:

80, JALAN USJ 6/2B, SUBANG JAYA, 46100 PETALING JAYA, SELANGOR, MALAYSIA.

 

2)

Company Secretary

:

MS. LAI SOOK HEAN

 

IC / PP No

:

A1854741

 

New IC No

:

710503-08-6122

 

Address

:

164, JELAPANG N/V, 30020 IPOH, PERAK, 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)


ENCUMBRANCE 1

Date of Creation

:

08/06/2012

Description Of Charge

:

N/A

 

Amount Secured

:

USD300,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PATRICK GERARD GORHAM (PASSPORT NO. LT0009566)

B27-2, KIARAMAS SUTERA CONDO, 7, JALAN DESA KIARA, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

JAMES ROBINSON (PASSPORT NO. 761246966)

A-19-5, MONT KIARA AMAN, 4, JALAN KIARA 2, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Form 40 Dated 15/06/2012

Registered and Numbered 10 In The Register of Charges


ENCUMBRANCE 2

Date of Creation

:

08/06/2012

Description Of Charge

:

N/A

 

Amount Secured

:

MYR8,300,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

THE ROYAL BANK OF SCOTLAND BERHAD

 

Form 40 Dated 15/06/2012

Registered and Numbered 8 In The Register of Charges


ENCUMBRANCE 3

Date of Creation

:

08/06/2012

Description Of Charge

:

N/A

 

Amount Secured

:

USD5,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

THE ROYAL BANK OF SCOTLAND, PLC, LABUAN BRANCH

 

 

 

 

Form 40 Dated 15/06/2012

Registered and Numbered 9 In The Register of Charges

 

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES


The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

HONG KONG

INDIA

MIDDLE EAST

CHINA

Credit Term

:

AS AGREED

Payment Mode

:

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

Type of Customer

:

CONSTRUCTION INDUSTRY

 

 

OPERATIONS

 

Products manufactured

:

FORMWORK SYSTEM FOR CONSTRUCTION

 

 

 

Ownership of premises

:

OWNED

 

Factory / Premises

:

AL 121, BATU 13, JALAN SUBANG, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.
Tel No: 03-61560901
Fax No: 03-61560952

 

 

 

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

600

650

650

625

615

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of formwork system for civil engineering construction.

MFE Formwork Technology is a revolutionary aluminium formwork construction system.

The SC has many experiences for forming cast in place reinforced concrete building structures. Using this unique system, all walls, floor slabs, columns, beams, stairs, balconies, together with door and window openings are cast in place in a single site based operation.

 

 

PROJECTS


No projects found in our databank

 

 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-78032806

Match

:

N/A

 

 

 

Address Provided by Client

:

501, BLOCK B, GLOMAC BUSINESS CENTRE NO. 10, JALAN 556/1 KELANA JAYA 47301 PEALING JAYA SELANGOR

Current Address

:

NO 501, 4TH FLOOR, BLOCK B, GLOMAC BUSINESS CENTRE, 10 JALAN SS 6/1, KELANA JAYA,, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided is incorrect.


FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Favourable

[

41.34%

]

 

Return on Net Assets

:

Favourable

[

47.10%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

38 Days

]

 

Debtor Ratio

:

Unfavourable

[

76 Days

]

 

Creditors Ratio

:

Favourable

[

56 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the SC was weak in its credit control. However, the SC could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.01 Times

]

 

Current Ratio

:

Unfavourable

[

1.43 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

37.20 Times

]

 

Gearing Ratio

:

Favourable

[

0.33 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. 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. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : STABLE

 

 

 

 

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

28110 : Manufacture of engines and turbines, except aircraft, vehicle and cycle engines

 

 

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 1990, the SC is a Private Limited company, focusing on manufacturing of formwork system for civil engineering construction. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. With an adequate share capital, the SC has the potential of expanding its business in future.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a large entity, the SC has a steady workforce of 600 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright.


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. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. 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. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 29,552,037, the SC should be able to maintain its business in the near terms.


Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.


Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the SC's future performance is very much depend on its marketing strategies in order to retain its position in the market.


Based on the above condition, we recommend credit be granted to the SC promptly.


PROFIT AND LOSS ACCOUNT

 

 

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

MFE FORMWORK TECHNOLOGY SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

203,474,081

166,066,246

135,344,172

302,366,945

213,509,882

Other Income

5,313,225

4,009,906

-

-

-

 

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

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

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

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

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

Total Turnover

208,787,306

170,076,152

135,344,172

302,366,945

213,509,882

Costs of Goods Sold

<174,690,585>

<138,688,192>

-

-

-

 

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

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

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

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

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

Gross Profit

34,096,721

31,387,960

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

13,685,200

8,336,760

<28,977,393>

33,983,537

34,667,965

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

13,685,200

8,336,760

<28,977,393>

33,983,537

34,667,965

Taxation

<1,467,786>

<2,969,747>

<937,807>

<9,707,268>

<7,568,296>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

12,217,414

5,367,013

<29,915,200>

24,276,269

27,099,669

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

16,659,436

14,493,811

60,440,938

51,265,339

24,165,670

Prior year adjustment

-

-

-

<9,203,743>

-

 

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

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

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

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

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

As restated

16,659,436

14,493,811

60,440,938

42,061,596

24,165,670

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

28,876,850

19,860,824

30,525,738

66,337,865

51,265,339

DIVIDENDS - Ordinary (paid & proposed)

<1,324,813>

<3,201,388>

<16,031,927>

<5,896,927>

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

27,552,037

16,659,436

14,493,811

60,440,938

51,265,339

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

299,049

686,865

232,601

11,041

-

Hire purchase

4,238

8,786

14,408

16,362

-

Others

74,790

205,775

84,765

13,037

-

 

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

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

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

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

 

 

378,077

901,426

331,774

40,440

 

 

 

BALANCE SHEET

 

MFE FORMWORK TECHNOLOGY SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

8,053,641

9,180,149

4,183,750

4,603,671

9,246,182

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investments

7,670

7,670

7,670

7,670

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

7,670

7,670

7,670

7,670

0

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

8,061,311

9,187,819

4,191,420

4,611,341

9,246,182

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

21,087,528

18,562,350

19,432,113

38,173,946

-

Trade debtors

42,616,219

34,591,513

25,514,198

54,231,810

-

Other debtors, deposits & prepayments

3,418,518

2,401,481

1,444,876

4,292,135

-

Amount due from related companies

-

120,299

25,665

20,773

-

Cash & bank balances

426,924

6,596,188

13,013,323

18,797,095

-

Others

5,185,981

4,458,304

2,792,223

1,147,797

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

72,735,170

66,730,135

62,222,398

116,663,556

109,265,933

 

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

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

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

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

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

TOTAL ASSET

80,796,481

75,917,954

66,413,818

121,274,897

118,512,115

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

26,961,666

33,612,591

31,774,459

50,245,255

-

Other creditors & accruals

11,466,706

8,532,873

7,727,650

7,220,688

-

Hire purchase & lease creditors

27,010

34,198

69,452

163,206

-

Bank overdraft

4,456,059

4,265,600

9,491,832

-

-

Other borrowings

5,204,014

9,025,393

-

-

-

Amounts owing to holding company

86,158

69,725

61,541

46,451

-

Amounts owing to related companies

238,948

198,943

-

-

-

Other liabilities

2,499,244

377,577

414,852

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

50,939,805

56,116,900

49,539,786

57,675,600

64,167,013

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

21,795,365

10,613,235

12,682,612

58,987,956

45,098,920

 

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

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

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

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

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

TOTAL NET ASSETS

29,856,676

19,801,054

16,874,032

63,599,297

54,345,102

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Capital reserve

1,000,000

1,000,000

1,000,000

1,000,000

-

Retained profit/(loss) carried forward

27,552,037

16,659,436

14,493,811

60,440,938

51,265,339

Others

-

-

-

-

1,000,000

 

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

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

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

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

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

TOTAL RESERVES

28,552,037

17,659,436

15,493,811

61,440,938

52,265,339

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

29,552,037

18,659,436

16,493,811

62,440,938

53,265,339

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Hire purchase creditors

60,734

87,737

7,192

76,644

-

Deferred taxation

243,905

1,053,881

373,029

1,081,715

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

304,639

1,141,618

380,221

1,158,359

1,079,763

 

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

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

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

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

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

 

29,856,676

19,801,054

16,874,032

63,599,297

54,345,102

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

MFE FORMWORK TECHNOLOGY SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

426,924

6,596,188

13,013,323

18,797,095

-

Net Liquid Funds

<4,029,135>

2,330,588

3,521,491

18,797,095

-

Net Liquid Assets

707,837

<7,949,115>

<6,749,501>

20,814,010

45,098,920

Net Current Assets/(Liabilities)

21,795,365

10,613,235

12,682,612

58,987,956

45,098,920

Net Tangible Assets

29,856,676

19,801,054

16,874,032

63,599,297

54,345,102

Net Monetary Assets

403,198

<9,090,733>

<7,129,722>

19,655,651

44,019,157

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

9,747,817

13,412,928

9,568,476

239,850

-

Total Liabilities

51,244,444

57,258,518

49,920,007

58,833,959

65,246,776

Total Assets

80,796,481

75,917,954

66,413,818

121,274,897

118,512,115

Net Assets

29,856,676

19,801,054

16,874,032

63,599,297

54,345,102

Net Assets Backing

29,552,037

18,659,436

16,493,811

62,440,938

53,265,339

Shareholders' Funds

29,552,037

18,659,436

16,493,811

62,440,938

53,265,339

Total Share Capital

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

Total Reserves

28,552,037

17,659,436

15,493,811

61,440,938

52,265,339

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.01

0.12

0.26

0.33

-

Liquid Ratio

1.01

0.86

0.86

1.36

-

Current Ratio

1.43

1.19

1.26

2.02

1.70

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

38

41

52

46

-

Debtors Ratio

76

76

69

65

-

Creditors Ratio

56

88

86

61

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.33

0.72

0.58

0.00

-

Liabilities Ratio

1.73

3.07

3.03

0.94

1.22

Times Interest Earned Ratio

37.20

10.25

<86.34>

841.34

-

Assets Backing Ratio

29.86

19.80

16.87

63.60

54.35

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

6.73

5.02

<21.41>

11.24

16.24

Net Profit Margin

6.00

3.23

<22.10>

8.03

12.69

Return On Net Assets

47.10

46.66

<169.76>

53.50

63.79

Return On Capital Employed

40.95

38.33

<108.36>

53.36

63.79

Return On Shareholders' Funds/Equity

41.34

28.76

<181.37>

38.88

50.88

Dividend Pay Out Ratio (Times)

0.11

0.60

<0.54>

0.24

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

 




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.58.27

UK Pound

1

Rs.91.16

Euro

1

Rs.77.50

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

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

 

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

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

 

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

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