MIRA INFORM REPORT

 

 

Report Date :

25.06.2013

 

IDENTIFICATION DETAILS

 

Name :

AZBIL MALAYSIA SDN. BHD.

 

 

Formerly Known As :

YAMATAKE AUTOMATION (M) SDN BHD

 

 

Registered Office :

14-2, Persiaran 65c, Pekeliling Business Centre, Jalan Pahang Barat, Off Jalan Tun Razak, 53000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

14.08.1999

 

 

Com. Reg. No.:

491432-T

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading of building automation, control automation and industrial automation equipment

 

 

No. of Employees :

40

 

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 :

Usually Correct

Litigation :

Exists

 

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


 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

 

N/A - Not Applicable

 

 

 

 

 

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

491432-T

COMPANY NAME

:

AZBIL MALAYSIA SDN. BHD.

FORMER NAME

:

YAMATAKE AUTOMATION (M) SDN BHD (06/03/2009)

INCORPORATION DATE

:

14/08/1999

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

14-2, PERSIARAN 65C, PEKELILING BUSINESS CENTRE, JALAN PAHANG BARAT, OFF JALAN TUN RAZAK, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

SUITE 11.02 LEVEL 11,THE GARDENS SOUTH TOWER, LINGKARAN SYED PUTRA, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-22877036

FAX.NO.

:

03-22877039

EMAIL

:

ADMIN@MY.AZBIL.COM

WEB SITE

:

WWW.AZBIL.COM

CONTACT PERSON

:

KIMIO ANAN ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

46531

PRINCIPAL ACTIVITY

:

TRADING OF BUILDING AUTOMATION, CONTROL AUTOMATION AND INDUSTRIAL AUTOMATION EQUIPMENT

AUTHORISED CAPITAL

:

MYR 1,700,000.00 DIVIDED INTO 
ORDINARY SHARE 1,700,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,600,000.00 DIVIDED INTO 
ORDINARY SHARES 1,600,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 17,447,129 [2011]

NET WORTH

:

MYR 5,177,032 [2011]

 

 

 

STAFF STRENGTH

:

40

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

TRACED

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

HISTORY / BACKGROUND

 

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

 

The SC is principally engaged in the (as a / as an) trading of building automation, control automation and industrial automation equipment.

 

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

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

AZBIL CORPORATION

TOKYO BUILDING, 2-7-3 MARUNOUCHI, CHIYODA-KU, TOKYO, 100-6419, JAPAN.

JP011032

1,600,000.00

100.00

 

 

 

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

------

 

 

 

1,600,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS


DIRECTOR 1

Name Of Subject

:

TOSHIHIRO SATO

Address

:

15-L, SINARAN CONDOMINIUM, JALAN TUN MOHD FUAD 3, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

TK6354578

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

01/05/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

Name Of Subject

:

TOSHIHISA MURAYAMA

Address

:

KUNO 2728, ODAWARA-SHI, KANAGAWA-KEN, 250-0055, JAPAN.

IC / PP No

:

TZ0435106

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

01/07/2012

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

Name Of Subject

:

TETSUO TAKAMURA

Address

:

4-23-1-207 SHONANDAI, FUJISAWA-SHI, KANAGAWA-KEN, 252-0804, JAPAN.

IC / PP No

:

TH5737209

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

18/04/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

YOSHIFUMI SUZUKI

Address

:

2-31-5-102 SEYA, SEYA-KU, YOKOHAMA-SHI, KANAGAWA-KEN, 246-0031, JAPAN.

IC / PP No

:

TK2922661

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

18/04/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

YUSUKE OSHIDA

Address

:

7, ONE NORTH GATEWAY #07-19, ONE NORTH RESIDENCES, 138642, SINGAPORE.

IC / PP No

:

TZ0828886

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

01/05/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

NAOKI WAKAMATSU

Address

:

19-27-6, ROYAL TOWER, MONT KIARA PALMA, JALAN KIARA MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

TZ0731251

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

01/05/2013

 

 

 

 

 

 

 

 

 

 

 

 





MANAGEMENT

 

 

 

1)

Name of Subject

:

KIMIO ANAN

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

RUBY

 

Position

:

ACCOUNT MANAGER

 

 

 

 

 

3)

Name of Subject

:

TOSHIHIRO SATO

 

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

DELOITTE KASSIMCHAN

Auditor' Address

:

UPTOWN 1, JALAN SS21/58, DAMANSARA UPTOWN, LEVEL 19, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. CHEONG NAM SAN

 

 

 

 

 

New IC No

:

500130-10-5435

 

Address

:

6, JALAN 10/3, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

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 against the SC whether the subject has been involved in any litigation. 

LEGAL ACTION

 

 

 

Code No

:

22

Case No

:

502

Year

:

2006

Place

:

KUALA LUMPUR

Court No

:

D1

 

 

 

Court

:

HIGH COURT

 

 

 

Solicitor

:

JASBEER NUR & LEE

 

 

 

Solicitor Tel. No.

:

03-26948908

 

 

 

Plaintiff

:

J & M POWER RESOURCES SDN BHD

 

 

 

Defendants

:

YAMATAKE AUTOMATION M SDN BHD (491432)

59-1 & 59-2, 14-2 PRSN 65C, PEKELILING BUSS CTR, JLN PAHANG BARAT, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

Amount Claimed

:

426,657.12

 

 

 

 

 

 

 

 

Nature of Claim

:

GDS SOLD & DELIVERED

 

 

 

 

 

 

 

 

 

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person wo has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.

 

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

Import Countries

:

JAPAN



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

[

 

]

 

 

 

 

 

 

 

CLINTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment Mode

:

CHEQUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

BUILDING AUTOMATION, CONTROL AUTOMATION AND INDUSTRIAL AUTOMATION EQUIPMENT

 

 

 

 

 

Total Number of Employees:

YEAR

2012

2010

 


GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

40

40

 

 

 

 

 

 

 

 

Branch

:

YES

 

No of Branches

:

4

 

 

 

 

 

Other Information:

The SC is principally engaged in the (as a / as an) trading of building automation, control automation and industrial automation equipment. 

The SC is engages in trading of the building automation, control automation and industrial automation equipment.

We were informed that the has its branch at Penang, Johor Bahru, Kuching and Kemaman with its headquarter is based at Kuala Lumpur.


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

:

03-22877036

Match

:

N/A

 

 

 

Address Provided by Client

:

SUITE II 02 LEVEL II, THE GARDENS SOUTH TOWER, MID VALLEY CITY LINGKARAN SYED PUTRA KUALA LUMPUR 59200

Current Address

:

SUITE 11.02 LEVEL 11,THE GARDENS SOUTH TOWER, LINGKARAN SYED PUTRA, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

we contacted one of the SC's staff from Admin Department. She provided some information of the SC.

The address provided is incomplete.

The SC refused to disclose its number of employees.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

22.16%

]

 

Return on Net Assets

:

Favourable

[

30.82%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

45 Days

]

 

Debtor Ratio

:

Unfavourable

[

73 Days

]

 

Creditors Ratio

:

Favourable

[

24 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 where the SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.29 Times

]

 

Current Ratio

:

Unfavourable

[

1.54 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

[

73.41 Times

]

 

Gearing Ratio

:

Favourable

[

0.49 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:

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

46531 : Wholesale of agricultural machinery, equipment and supplies

 

 

INDUSTRY :

MACHINERY

 

 

 

Malaysia is presently the leading manufacturer of automation machinery and equipment (M&E) for the electrical and electronics (E&E) industry in the ASEAN region with a total of 22 companies in production. The machinery and equipment industry has expanded and produce a diverse range of machinery which give importance to the overall industrial development of the country, due to its cross cutting linkages with all industrial sectors.

 

Malaysia implemented Industrial Master Plan 3 (IMP3, 2006-2020), which the machinery and equipment industry has been established as one of the key areas for growth and development. The implementation focused on the manufacture of high value-added and high technology machinery and equipment (M&E). Under this plan, M&E will positioned Malaysia as the regional production hub for high technology and specialized M&E in the ASEAN region for 2012.

 

Furthemore for the year 2012, Malaysia is the largest manufacturing hub of boilers in the Southeast Asia region. The exports are mainly directed to the neighboring countries such as Indonesia, Philippines, Thailand and Cambodia. Exports of machinery and equipment registered a double-digit growth of 12.6% in the frst seven month of 2012 mainly driven by general industrial machinery and equipment as well as specialised machinery for specific industries.

 

For enhance the machinery and equipment (M&E), the government has introduced two major tax incentives for companies investing in the manufacturing sector where the pioneer status and the investment tax allowance. The tax incentives would remain to be a competitive industry within ASEAN.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1999, the SC is a Private Limited company, focusing on trading of building automation, control automation and industrial automation equipment. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. With an issued and paid up capital of RM1.6 million and strong shareholders' backing, the SC has the ability to further expand its business in the future.

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

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the SC was at an acceptable range 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 5,177,032, the SC should be able to maintain its business in the near terms. 

The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources.

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 shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry. 

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

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

AZBIL MALAYSIA 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

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

17,447,129

15,021,687

10,170,149

10,728,342

9,655,782

 

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

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

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

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

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

Total Turnover

17,447,129

15,021,687

10,170,149

10,728,342

9,655,782

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

1,590,438

1,159,534

829,518

277,144

799,318

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,590,438

1,159,534

829,518

277,144

799,318

Taxation

<443,003>

<281,770>

<121,724>

<225,596>

<125,189>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,147,435

877,764

707,794

51,548

674,129

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

2,429,597

1,551,833

844,039

792,491

118,362

 

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

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

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

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

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

As restated

2,429,597

1,551,833

844,039

792,491

118,362

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

3,577,032

2,429,597

1,551,833

844,039

792,491

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

3,577,032

2,429,597

1,551,833

844,039

792,491

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

3,371

2,529

-

-

-

Loan from holding company

18,594

19,163

-

-

-

 

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

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

 

 

 

 

21,965

21,692

 

 

 

 

 

 

BALANCE SHEET

 

 

AZBIL MALAYSIA SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

528,979

418,981

329,057

452,830

426,025

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Associated companies

30,000

30,000

-

-

-

Deferred assets

93,581

-

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

123,581

30,000

30,000

0

0

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

652,560

448,981

359,057

452,830

426,025

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

2,136,645

1,241,751

-

-

-

Trade debtors

3,473,626

5,258,488

-

-

-

Other debtors, deposits & prepayments

313,922

239,865

-

-

-

Short term deposits

2,888,103

842,364

-

-

-

Amount due from associated companies

534,580

751,509

-

-

-

Cash & bank balances

3,689,388

2,394,444

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

13,036,264

10,728,421

7,867,482

6,251,729

5,862,631

 

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

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

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

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

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

TOTAL ASSET

13,688,824

11,177,402

8,226,539

6,704,559

6,288,656

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

1,160,718

1,757,426

-

-

-

Other creditors & accruals

760,419

600,884

-

-

-

Hire purchase & lease creditors

24,000

24,000

-

-

-

Short term borrowings/Term loans

2,471,134

2,435,648

-

-

-

Amounts owing to holding company

2,627,289

2,070,776

-

-

-

Amounts owing to related companies

1,172,300

-

-

-

-

Provision for taxation

241,932

170,071

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

8,457,792

7,058,805

5,063,706

4,233,520

3,896,165

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

4,578,472

3,669,616

2,803,776

2,018,209

1,966,466

 

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

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

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

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

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

TOTAL NET ASSETS

5,231,032

4,118,597

3,162,833

2,471,039

2,392,491

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

1,600,000

1,600,000

1,600,000

1,600,000

1,600,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

1,600,000

1,600,000

1,600,000

1,600,000

1,600,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

3,577,032

2,429,597

1,551,833

844,039

792,491

 

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

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

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

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

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

TOTAL RESERVES

3,577,032

2,429,597

1,551,833

844,039

792,491

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

5,177,032

4,029,597

3,151,833

2,444,039

2,392,491

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Hire purchase creditors

54,000

78,000

-

-

-

Deferred taxation

-

11,000

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

54,000

89,000

11,000

27,000

0

 

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

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

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

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

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

 

5,231,032

4,118,597

3,162,833

2,471,039

2,392,491

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

AZBIL MALAYSIA SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

6,577,491

3,236,808

-

-

-

Net Liquid Funds

6,577,491

3,236,808

-

-

-

Net Liquid Assets

2,441,827

2,427,865

2,803,776

2,018,209

1,966,466

Net Current Assets/(Liabilities)

4,578,472

3,669,616

2,803,776

2,018,209

1,966,466

Net Tangible Assets

5,231,032

4,118,597

3,162,833

2,471,039

2,392,491

Net Monetary Assets

2,387,827

2,338,865

2,792,776

1,991,209

1,966,466

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

2,549,134

2,537,648

-

-

-

Total Liabilities

8,511,792

7,147,805

5,074,706

4,260,520

3,896,165

Total Assets

13,688,824

11,177,402

8,226,539

6,704,559

6,288,656

Net Assets

5,231,032

4,118,597

3,162,833

2,471,039

2,392,491

Net Assets Backing

5,177,032

4,029,597

3,151,833

2,444,039

2,392,491

Shareholders' Funds

5,177,032

4,029,597

3,151,833

2,444,039

2,392,491

Total Share Capital

1,600,000

1,600,000

1,600,000

1,600,000

1,600,000

Total Reserves

3,577,032

2,429,597

1,551,833

844,039

792,491

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.78

0.46

-

-

-

Liquid Ratio

1.29

1.34

-

-

-

Current Ratio

1.54

1.52

1.55

1.48

1.50

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

45

30

-

-

-

Debtors Ratio

73

128

-

-

-

Creditors Ratio

24

43

-

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.49

0.63

-

-

-

Liabilities Ratio

1.64

1.77

1.61

1.74

1.63

Times Interest Earned Ratio

73.41

54.45

-

-

-

Assets Backing Ratio

3.27

2.57

1.98

1.54

1.50

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

9.12

7.72

8.16

2.58

8.28

Net Profit Margin

6.58

5.84

6.96

0.48

6.98

Return On Net Assets

30.82

28.68

26.23

11.22

33.41

Return On Capital Employed

30.68

28.51

26.23

11.22

33.41

Return On Shareholders' Funds/Equity

22.16

21.78

22.46

2.11

28.18

Dividend Pay Out Ratio (Times)

0.00

0.00

-

-

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

 

 

 





FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.73

UK Pound

1

Rs.91.82

Euro

1

Rs.78.23

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.