|
Report Date : |
26.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
ADVANCED NETWORK SOLUTIONS SDN. BHD. |
|
|
|
|
Formerly Known As : |
BELLITE SDN BHD (20/10/1999) |
|
|
|
|
Registered Office : |
15-1, Jalan 5/76b, Desa Pandan, Off Jalan Kampung Pandan, 55100 Kuala
Lumpur, Wilayah Persekutuan |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
31.07.1995 |
|
|
|
|
Com. Reg. No.: |
353240-A |
|
|
|
|
Legal Form : |
Private Limited (Limited By Share) |
|
|
|
|
Line of Business : |
Manufacturing of Telecommunication & Networking Solution Products |
|
|
|
|
No. of Employees : |
100 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Malaysia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
MALAYSIA - ECONOMIC OVERVIEW
Malaysia, a middle-income country, has transformed itself
since the 1970s from a producer of raw materials into an emerging multi-sector
economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve
high-income status by 2020 and to move farther up the value-added production
chain by attracting investments in Islamic finance, high technology industries,
biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a
series of projects and policy measures intended to accelerate the country's
economic growth. The government has also taken steps to liberalize some services
sub-sectors. The NAJIB administration also is continuing efforts to boost
domestic demand and reduce the economy's dependence on exports. Nevertheless,
exports - particularly of electronics, oil and gas, palm oil and rubber -
remain a significant driver of the economy. As an oil and gas exporter,
Malaysia has profited from higher world energy prices, although the rising cost
of domestic gasoline and diesel fuel, combined with strained government
finances, has forced Kuala Lumpur to begin to reduce government subsidies. The
government is also trying to lessen its dependence on state oil producer
Petronas. The oil and gas sector supplies about 35% of government revenue in
2011. Bank Negera Malaysia (central bank) maintains healthy foreign exchange
reserves, and a well-developed regulatory regime has limited Malaysia's
exposure to riskier financial instruments and the global financial crisis.
Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a
general slowdown in global economic activity because exports are a major
component of GDP. In order to attract increased investment, NAJIB has raised
possible revisions to the special economic and social preferences accorded to
ethnic Malays under the New Economic Policy of 1970, but he has encountered
significant opposition, especially from Malay nationalists and other vested
interests.
|
Source
: CIA |
|
REGISTRATION NO. |
: |
353240-A |
|
COMPANY NAME |
: |
ADVANCED NETWORK SOLUTIONS SDN. BHD. |
|
FORMER NAME |
: |
BELLITE SDN BHD (20/10/1999) |
|
INCORPORATION DATE |
: |
31/07/1995 |
|
COMPANY STATUS |
: |
EXIST |
|
LEGAL FORM |
: |
PRIVATE LIMITED (LIMITED BY SHARE) |
|
LISTED STATUS |
: |
NO |
|
REGISTERED ADDRESS |
: |
15-1, JALAN 5/76B, DESA PANDAN, OFF JALAN KAMPUNG PANDAN, 55100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
BUSINESS ADDRESS |
: |
LOT 202 JALAN TUDM, SECTION U6, KG BARU SUBANG, 40150 SHAH ALAM,
SELANGOR, MALAYSIA. |
|
TEL.NO. |
: |
03-78456133 |
|
FAX.NO. |
: |
03-78455133 |
|
WEB SITE |
: |
WWW.ADVANCEDNET.COM.MY |
|
CONTACT PERSON |
: |
TAN ENG PIOW ( CEO ) |
|
INDUSTRY CODE |
: |
27310 |
|
PRINCIPAL ACTIVITY |
: |
MANUFACTURING OF TELECOMMUNICATION &
NETWORKING SOLUTION PRODUCTS |
|
AUTHORISED CAPITAL |
: |
MYR 1,000,000.00 DIVIDED INTO |
|
ISSUED AND PAID UP CAPITAL |
: |
MYR 1,000,000.00 DIVIDED INTO |
|
SALES |
: |
MYR 24,845,277 [2011] |
|
NET WORTH |
: |
MYR 10,499,377 [2011] |
|
STAFF STRENGTH |
: |
100 [2013] |
|
BANKER (S) |
|
MALAYAN BANKING BHD |
|
LITIGATION |
: |
CLEAR |
|
DEFAULTER CHECK |
: |
CLEAR |
|
FINANCIAL CONDITION |
: |
FAIR |
|
PAYMENT |
: |
GOOD |
|
MANAGEMENT CAPABILITY |
: |
AVERAGE |
|
COMMERCIAL RISK |
: |
LOW |
|
CURRENCY EXPOSURE |
: |
MODERATE |
|
GENERAL REPUTATION |
: |
SATISFACTORY |
|
INDUSTRY OUTLOOK |
: |
AVERAGE GROWTH |
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
telecommunication & networking solution products.
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 |
(%) |
|
MR. TAN ENG PIOW + |
7-13-8, PANTAI HILLPARK, PHASE 2, JALAN PANTAI DALAM, 59200 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
681026-01-5187 A1112044 |
850,000.00 |
85.00 |
|
MR. TAN ENG TECK + |
22, JALAN TENTELA U28/20B, BUKIT JELUTONG, 40000 SHAH ALAM, SELANGOR,
MALAYSIA. |
740704-01-6937 A2788049 |
150,000.00 |
15.00 |
|
|
|
|
--------------- |
------ |
|
|
|
|
1,000,000.00 |
100.00 |
|
|
|
|
============ |
===== |
+ Also Director
DIRECTOR 1
|
Name Of Subject |
: |
MR. TAN ENG HUAT |
|
Address |
: |
61, LORONG AMAN JAYA, TAMAN AMAN JAYA, 14000 BUKIT MERTAJAM, PULAU
PINANG, MALAYSIA. |
|
IC / PP No |
: |
6902244 |
|
New IC No |
: |
621128-01-6071 |
|
Date of Birth |
: |
28/11/1962 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
31/01/2008 |
DIRECTOR 2
|
Name Of Subject |
: |
MR. TAN ENG TECK |
|
Address |
: |
22, JALAN TENTELA U28/20B, BUKIT JELUTONG, 40000 SHAH ALAM, SELANGOR,
MALAYSIA. |
|
IC / PP No |
: |
A2788049 |
|
New IC No |
: |
740704-01-6937 |
|
Date of Birth |
: |
04/07/1974 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
29/07/1999 |
DIRECTOR 3
|
Name Of Subject |
: |
MR. TAN ENG PIOW |
|
Address |
: |
7-13-8, PANTAI HILLPARK, PHASE 2, JALAN PANTAI DALAM, 59200 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
IC / PP No |
: |
A1112044 |
|
New IC No |
: |
681026-01-5187 |
|
Date of Birth |
: |
26/10/1968 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
29/07/1999 |
|
1) |
Name of Subject |
: |
TAN ENG PIOW |
|
|
Position |
: |
CEO |
|
|
|
|
|
|
2) |
Name of Subject |
: |
NG CHONG JUEI |
|
|
Position |
: |
ADMIN & HUMAN RESOURCE MANAGER |
|
Auditor |
: |
Y. L. CHEE & CO. |
|
Auditor' Address |
: |
50A, PERSIARAN SABAH, TAMAN TUN DR. ISMAIL, 50000 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA. |
|
1) |
Company Secretary |
: |
MR. CHOW SECK KAI |
|
|
IC / PP No |
: |
4875386 |
|
|
New IC No |
: |
551031-10-5771 |
|
|
Address |
: |
37, LORONG JINTAN 3, TAMAN SUPREME, CHERAS, 56100 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA. |
Banking relations are maintained principally with :
|
1) |
Name |
: |
MALAYAN BANKING BHD |
|
|
|
|
|
|
|
|
|
|
|
2) |
Name |
: |
PUBLIC BANK BHD |
|
Charge No |
Creation Date |
Charge Description |
Chargee Name |
Total Charge |
Status |
|
1 |
21/05/2001 |
N/A |
OCBC BANK MALAYSIA BERHAD |
MYR 268,000.00 |
Satisfied |
|
2 |
16/10/2003 |
N/A |
MALAYAN BANKING BHD |
MYR 995,000.00 |
Unsatisfied |
|
3 |
16/08/2004 |
N/A |
PUBLIC BANK BHD |
MYR 510,000.00 |
Unsatisfied |
|
4 |
05/05/2005 |
N/A |
PUBLIC BANK BHD |
MYR 405,000.00 |
Unsatisfied |
|
5 |
16/05/2005 |
N/A |
PUBLIC BANK BHD |
MYR 965,770.00 |
Unsatisfied |
|
6 |
26/09/2005 |
N/A |
PUBLIC BANK BHD |
MYR 297,500.00 |
Unsatisfied |
|
7 |
26/09/2005 |
N/A |
PUBLIC BANK BHD |
MYR 306,000.00 |
Unsatisfied |
|
8 |
25/06/2007 |
open charge |
PUBLIC BANK BHD |
N/A |
Unsatisfied |
|
9 |
17/02/2009 |
N/A |
PUBLIC BANK BHD |
N/A |
Unsatisfied |
* 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.
* 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.
|
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 |
[ |
|
] |
|
|
|
|
|
|
|
Local |
: |
YES |
|||
|
Domestic Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
YES |
|
|
|
|
Export Market |
: |
THAILAND |
|||
|
Credit Term |
: |
AS AGREED |
|||
|
Payment Mode |
: |
CHEQUES |
|||
|
Products manufactured |
: |
|
||
|
|
|
|
||
|
Brand Name |
: |
LITECH
|
||
|
|
|
|
||
|
Award |
: |
1 ) GOLDEN BULL AWARD Year :2007
|
||
|
|
|
|
|
Total Number of Employees: |
|
||||||||
|
YEAR |
2013 |
2012 |
2011 |
2010 |
2009 |
|
|||
|
GROUP |
N/A |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
|
COMPANY |
100 |
100 |
100 |
100 |
100 |
|
|
|
|
|
Branch |
: |
NO
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of
telecommunication & networking solution products.
All the SC's products are manufactured with superior quality and according to
international standard.
Other network products are approved by authorities such as Telekom Malaysia and
SIRIMS
We were informed that the SC also offers customized products for the following:
Fiber Optic Assembly - With sophisticated polishing, testing equipment from
USA, the SC has the capabilities of making customized fiber cable assemblies
according to international standards.
Equipment Racks and Panels - With inhouse CAD/CAM design and CNC manufacturing
facilities, the SC produces customized cabinets, racks and panels with superior
design and quality to address different and specified requirement for network
installations.
Coaxial and RF - The SC manufacture full range of coaxial and RF connectors and
accessories and also able to customized different types and sizes of jumpers
with highly competitive price to cater for the growing mobile and wireless
market.
No projects found in our databank
We have checked with the Malaysian National News Agency's (BERNAMA) database,
but no latest development was noted in our investigation.
Latest fresh investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client |
: |
N/A |
|
Current Telephone Number |
: |
03-78456133 |
|
Match |
: |
N/A |
|
|
|
|
|
Address Provided by Client |
: |
LOT202,JALAN TUDM,KGBARU SUBANG SEKSYEN U6 40150 SHAH ALAM SELANGAR
MALAYSIA |
|
Current Address |
: |
LOT 202 JALAN TUDM, SECTION U6, KG BARU SUBANG, 40150 SHAH ALAM,
SELANGOR, MALAYSIA. |
|
Match |
: |
NO |
|
|
|
|
|
Latest Financial Accounts |
: |
YES |
Other Investigations
On 24th June 2013 we contacted one of the staff from the SC and she provided
some information on the SC.
The address provided is incorrect.
|
Profitability |
|
|
|
|
|
|
|
Turnover |
: |
Increased |
[ |
20.98% |
] |
|
|
Profit/(Loss) Before Tax |
: |
Decreased |
[ |
10.27% |
] |
|
|
Return on Shareholder Funds |
: |
Acceptable |
[ |
14.48% |
] |
|
|
Return on Net Assets |
: |
Acceptable |
[ |
13.05% |
] |
|
|
The higher turnover could be attributed to the favourable market
condition and the SC could be gaining the market share progressively.The dip
in profit could be due to the stiff market competition which reduced the SC's
profit margin. The SC's management had generated acceptable return for its
shareholders using its assets. |
||||||
|
Working Capital Control |
|
|
|
|
|
|
|
Stock Ratio |
: |
Favourable |
[ |
9 Days |
] |
|
|
Debtor Ratio |
: |
Unfavourable |
[ |
138 Days |
] |
|
|
Creditors Ratio |
: |
Unfavourable |
[ |
123 Days |
] |
|
|
The SC's stocks were moving fast thus reducing its holding cost. This
had reduced funds being tied up in stocks. The SC's debtors ratio was high.
The SC should tighten its credit control and improve its collection period.
The unfavourable creditors' ratio could be due to the SC taking advantage of
the credit granted by its suppliers. However this may affect the goodwill
between the SC and its suppliers and the SC may inadvertently have to pay
more for its future supplies. |
||||||
|
Liquidity |
|
|
|
|
|
|
|
Liquid Ratio |
: |
Favourable |
[ |
1.32 Times |
] |
|
|
Current Ratio |
: |
Unfavourable |
[ |
1.38 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 |
: |
Acceptable |
[ |
6.70 Times |
] |
|
|
Gearing Ratio |
: |
Acceptable |
[ |
0.83 Times |
] |
|
|
|
|
|
|
|
|
|
|
The SC's interest cover was slightly low. If there is no sharp fall in
its profit or sudden increase in the interest rates, we believe the SC is
able to generate sufficient income to service its interest and repay the
loans. The SC's gearing was slightly high. The SC is utilising the leverage
concept to fund its expansion. However, the high gearing has added financial
risks to the SC. It will be more vulnerable in times of economy downturn. |
||||||
|
Overall Assessment : |
|
|
|
|
|
|
|
Although the SC's turnover had increased, its profits had declined
over the same corresponding period. This could be due to the stiffer market
competition and / or higher operating costs which lowered the SC's profit
margin. 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 had
an acceptable interest cover. If there is no sudden sharp increase in
interest rate or fall in the SC's profit, we do believe the SC is able to
generate sufficient cash flow to service its interest payment. The SC's
gearing was slightly high and its financial risk was also high. If no plans
are made to reduce its gearing, the SC's performance may deteriorate in the
coming year. |
||||||
|
Overall financial condition of the SC : FAIR |
||||||
|
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 |
|||||
|
MSIC CODE |
|
|
27310 : Manufacture of fibre optic cables |
|
|
|
|
|
INDUSTRY : |
MANUFACTURING |
|
|
|
|
The Manufacturing sector is one of the important sectors to the growth
of the Malaysian economy. According to Ministry of Finance, the manufacturing
sector is expected to grow 4.9% in year 2013. Export oriented-industries are
expected to benefit from the higher growth of global trade, while
domesticoriented industries expand in line with the better consumer sentiment
and business confidence. The resource-based industries are envisaged to grow
steadily attributed to improved demand for petroleum, chemical, rubber and
plastic products. With better job prospects and higher disposable income, the
transportation equipment subsector, in particular, the passenger car segment
is expected to expand. |
|
|
Value-added of the manufacturing sector expanded 5% during the first
half of 2012. Output of the sector rose 5.2% during the first sevenmonths of
2012 in line with the increase in sales value of manufactured products by
6.5% to RM363.1 billion. Output from domesticoriented industries continued to
expand 8.6% while export-oriented industries grew 4.1%. |
|
|
According to the Department of Statistics, the sales value of the
Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion)
to record RM52.4 billion as compared to RM48.8 billion reported in year 2012.
Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2
billion) as compared with the preceding month. The sales value in December
2012 has been revised positive 7.5% year-on-year to record RM52.6 billion. |
|
|
Output of rubber products increased 3.6% in the first seven month of
2012 mainly supported by continuous demand for rubber gloves. Output of
rubber gloves grew 5.9% on account of the expansion in the global healthcare
industry and wider usage of gloves in other sectors. Similarly, output of
catheters, especially for use in medical appliances, also registered a strong
growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced
10.9% in tandem with slowing external demand from the automotive industry,
especially China. |
|
|
Meanwhile, production of wood and wood products rebounded 4.6% largely
supported by higher demand for wooden and cane furniture (33.5%). The
positive performance was attributed to vibrant higher demand from major
export destinations such as China and the United States (US) for
Malaysian-made furniture. Demand from China accelerated further following the
country's rising income level and the implementation of zero import duty on
Malaysian made-furniture. Malaysia government has growth target of 6.5% for
wood based furniture where estimated to reach up to RM53 billion by year
2020.The government providing pioneer status for tax exemption and investment
tax allowance for this industry as a boost up step towards produce good
quality product and to meet the world demand. |
|
|
The output of chemicals and chemical products rose 9.9% in the first
seven month of year 2012 on account of increasing demand for plastic products
(11.8%) and basic chemicals (11.1%). External demand for plastic packaging
materials surged during the early part of the year 2012, particularly from
Japan and Thailand, as manufacturers resumed operations, which were
interrupted by natural calamities and power outages. Chemical production are
expected to show 7.5 % in year 2013 inline with Malaysia as one of the
largest contributor in world Chemicals & Chemical industries. |
|
|
|
|
|
Tax and non-tax incentives provided by goverment encourage
manufacturers to move up the value chain of manufacturing industry. The new
growth initiatives by goverment in the manufacturing sector such assolar and
medial services can be important drivers of growth apart from helping to
diversify the manufacturing base and contributing to the resilience of the
sector. |
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth |
|
Incorporated in 1995, the SC is a Private Limited company, focusing on
manufacturing of telecommunication & networking solution products. With its
long establishment in the market, the SC has received strong support from its
stable customers base. Its business position in the market is quite stable and
it is expected to enjoy better market shares over its rivals. The capital
standing of the SC is fair. 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 moderate size company, the SC has a total
workforce of 100 employees in its business operations. 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. To improve its quality products and services, we noted that the SC has
received a number of certifications & awards. This will improve the
customer's confidence level to the SC.
Financially, the SC registered a higher turnover compared to previous year.
However, its profits showed a reverse trend. The lower profit achieved was a
result of higher operating cost and increased competition. 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. The gearing level of the SC is slightly high, therefore
it faces moderate financial risk. Given a positive net worth standing at MYR
10,499,377, 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 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
normally.
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN
FINANCIAL REPORTING STANDARDS(FRS) |
|
ADVANCED NETWORK SOLUTIONS SDN. BHD. |
|
Financial Year End |
31/12/2011 |
31/12/2010 |
31/12/2009 |
31/12/2008 |
|
Months |
12 |
12 |
12 |
12 |
|
Consolidated Account |
Company |
Company |
GROUP |
GROUP |
|
Audited Account |
YES |
YES |
YES |
YES |
|
Unqualified Auditor's Report (Clean Opinion) |
YES |
YES |
YES |
YES |
|
Financial Type |
FULL |
FULL |
SUMMARY |
SUMMARY |
|
Currency |
MYR |
MYR |
MYR |
MYR |
|
|
|
|
|
|
|
TURNOVER |
24,845,277 |
20,537,093 |
23,141,175 |
16,652,066 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
Total Turnover |
24,845,277 |
20,537,093 |
23,141,175 |
16,652,066 |
|
Costs of Goods Sold |
<17,590,636> |
<13,336,290> |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
Gross Profit |
7,254,641 |
7,200,803 |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT/(LOSS) FROM OPERATIONS |
2,127,657 |
2,371,291 |
3,512,763 |
2,153,135 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT/(LOSS) BEFORE TAXATION |
2,127,657 |
2,371,291 |
3,512,763 |
2,153,135 |
|
Taxation |
<606,967> |
<617,859> |
<918,504> |
<522,129> |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT/(LOSS) AFTER TAXATION |
1,520,690 |
1,753,432 |
2,594,259 |
1,631,006 |
|
Minority interests |
- |
- |
<333,824> |
<46,730> |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD |
|
|
|
|
|
As previously reported |
7,978,687 |
7,135,720 |
4,875,285 |
3,291,009 |
|
Prior year adjustment |
- |
<910,465> |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
As restated |
7,978,687 |
6,225,255 |
4,875,285 |
3,291,009 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
9,499,377 |
7,978,687 |
7,135,720 |
4,875,285 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
9,499,377 |
7,978,687 |
7,135,720 |
4,875,285 |
|
|
============= |
============= |
============= |
============= |
|
INTEREST EXPENSE (as per notes to P&L) |
|
|
|
|
|
Hire purchase |
6,832 |
10,403 |
- |
- |
|
Term loan / Borrowing |
366,747 |
203,069 |
- |
- |
|
|
---------------- |
---------------- |
|
|
|
|
373,579 |
213,472 |
|
|
|
ADVANCED NETWORK SOLUTIONS SDN. BHD. |
|
ASSETS EMPLOYED: |
|
|
|
|
|
FIXED ASSETS |
13,497,060 |
9,179,898 |
8,533,920 |
6,158,404 |
|
LONG TERM INVESTMENTS/OTHER ASSETS |
|
|
|
|
|
Investment properties |
1,519,900 |
1,519,900 |
- |
- |
|
Investments |
608,610 |
608,610 |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS |
2,128,510 |
2,128,510 |
608,610 |
564,090 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL LONG TERM ASSETS |
15,625,570 |
11,308,408 |
9,142,530 |
6,722,494 |
|
CURRENT ASSETS |
|
|
|
|
|
Stocks |
612,354 |
842,032 |
- |
- |
|
Trade debtors |
9,413,791 |
5,816,588 |
- |
- |
|
Other debtors, deposits & prepayments |
1,022,157 |
2,095,418 |
- |
- |
|
Short term deposits |
800,000 |
1,000,000 |
- |
- |
|
Cash & bank balances |
973,844 |
1,114,640 |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL CURRENT ASSETS |
12,822,146 |
10,868,678 |
13,045,567 |
8,834,627 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL ASSET |
28,447,716 |
22,177,086 |
22,188,097 |
15,557,121 |
|
|
============= |
============= |
============= |
============= |
|
CURRENT LIABILITIES |
|
|
|
|
|
Trade creditors |
5,933,011 |
4,822,186 |
- |
- |
|
Other creditors & accruals |
1,131,142 |
1,319,902 |
- |
- |
|
Hire purchase & lease creditors |
69,389 |
53,231 |
- |
- |
|
Short term borrowings/Term loans |
217,473 |
270,770 |
- |
- |
|
Amounts owing to director |
1,779,230 |
1,450,307 |
- |
- |
|
Provision for taxation |
145,215 |
190,237 |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL CURRENT LIABILITIES |
9,275,460 |
8,106,633 |
9,421,293 |
6,547,739 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
NET CURRENT ASSETS/(LIABILITIES) |
3,546,686 |
2,762,045 |
3,624,274 |
2,286,888 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL NET ASSETS |
19,172,256 |
14,070,453 |
12,766,804 |
9,009,382 |
|
|
============= |
============= |
============= |
============= |
|
SHARE CAPITAL |
|
|
|
|
|
Ordinary share capital |
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 |
|
|
|
|
|
|
|
RESERVES |
|
|
|
|
|
Retained profit/(loss) carried forward |
9,499,377 |
7,978,687 |
7,135,720 |
4,875,285 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL RESERVES |
9,499,377 |
7,978,687 |
7,135,720 |
4,875,285 |
|
MINORITY INTEREST |
- |
- |
404,828 |
71,004 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
SHAREHOLDERS' FUNDS/EQUITY |
10,499,377 |
8,978,687 |
8,540,548 |
5,946,289 |
|
LONG TERM LIABILITIES |
|
|
|
|
|
Long term loans |
8,336,159 |
4,746,943 |
- |
- |
|
Hire purchase creditors |
94,058 |
88,698 |
- |
- |
|
Deferred taxation |
242,662 |
256,125 |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL LONG TERM LIABILITIES |
8,672,879 |
5,091,766 |
4,226,256 |
3,063,093 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
|
|
19,172,256 |
14,070,453 |
12,766,804 |
9,009,382 |
|
|
============= |
============= |
============= |
============= |
|
ADVANCED NETWORK SOLUTIONS SDN. BHD. |
|
TYPES OF FUNDS |
|
|
|
|
|
Cash |
1,773,844 |
2,114,640 |
- |
- |
|
Net Liquid Funds |
1,773,844 |
2,114,640 |
- |
- |
|
Net Liquid Assets |
2,934,332 |
1,920,013 |
3,624,274 |
2,286,888 |
|
Net Current Assets/(Liabilities) |
3,546,686 |
2,762,045 |
3,624,274 |
2,286,888 |
|
Net Tangible Assets |
19,172,256 |
14,070,453 |
12,766,804 |
9,009,382 |
|
Net Monetary Assets |
<5,738,547> |
<3,171,753> |
<601,982> |
<776,205> |
|
BALANCE SHEET ITEMS |
|
|
|
|
|
Total Borrowings |
8,717,079 |
5,159,642 |
- |
- |
|
Total Liabilities |
17,948,339 |
13,198,399 |
13,647,549 |
9,610,832 |
|
Total Assets |
28,447,716 |
22,177,086 |
22,188,097 |
15,557,121 |
|
Net Assets |
19,172,256 |
14,070,453 |
12,766,804 |
9,009,382 |
|
Net Assets Backing |
10,499,377 |
8,978,687 |
8,540,548 |
5,946,289 |
|
Shareholders' Funds |
10,499,377 |
8,978,687 |
8,540,548 |
5,946,289 |
|
Total Share Capital |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
|
Total Reserves |
9,499,377 |
7,978,687 |
7,135,720 |
4,875,285 |
|
LIQUIDITY (Times) |
|
|
|
|
|
Cash Ratio |
0.19 |
0.26 |
- |
- |
|
Liquid Ratio |
1.32 |
1.24 |
- |
- |
|
Current Ratio |
1.38 |
1.34 |
1.38 |
1.35 |
|
WORKING CAPITAL CONTROL (Days) |
|
|
|
|
|
Stock Ratio |
9 |
15 |
- |
- |
|
Debtors Ratio |
138 |
103 |
- |
- |
|
Creditors Ratio |
123 |
132 |
- |
- |
|
SOLVENCY RATIOS (Times) |
|
|
|
|
|
Gearing Ratio |
0.83 |
0.57 |
- |
- |
|
Liabilities Ratio |
1.71 |
1.47 |
1.60 |
1.62 |
|
Times Interest Earned Ratio |
6.70 |
12.11 |
- |
- |
|
Assets Backing Ratio |
19.17 |
14.07 |
12.77 |
9.01 |
|
PERFORMANCE RATIO (%) |
|
|
|
|
|
Operating Profit Margin |
8.56 |
11.55 |
15.18 |
12.93 |
|
Net Profit Margin |
6.12 |
8.54 |
9.77 |
9.51 |
|
Return On Net Assets |
13.05 |
18.37 |
27.51 |
23.90 |
|
Return On Capital Employed |
13.00 |
18.30 |
26.67 |
23.71 |
|
Return On Shareholders' Funds/Equity |
14.48 |
19.53 |
26.47 |
26.64 |
|
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.59.70 |
|
|
1 |
Rs.92.25 |
|
Euro |
1 |
Rs.78.38 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.