|
|
REGISTRATION
NO.
|
:
|
198472-W
|
|
COMPANY
NAME
|
:
|
METROD
(OFHC) SDN. BHD.
|
|
FORMER
NAME
|
:
|
N/A
|
|
INCORPORATION
DATE
|
:
|
28/05/1990
|
|
|
|
|
|
|
|
|
|
COMPANY
STATUS
|
:
|
EXIST
|
|
LEGAL
FORM
|
:
|
PRIVATE
LIMITED (LIMITED BY SHARE)
|
|
LISTED
STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED
ADDRESS
|
:
|
THE
GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS
ADDRESS
|
:
|
3,
LENGKUK KELULI 2, BUKIT RAJA PRIME INDUSTRIAL PARK, 41720 KLANG, SELANGOR,
MALAYSIA.
|
|
TEL.NO.
|
:
|
03-33413422
|
|
FAX.NO.
|
:
|
03-33436355
|
|
EMAIL
|
:
|
PRAKASHHANSRAJ@METROD.COM
|
|
WEB
SITE
|
:
|
WWW.METROD.COM
|
|
CONTACT
PERSON
|
:
|
PRAKTIK
BASU ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY
CODE
|
:
|
46621
|
|
PRINCIPAL
ACTIVITY
|
:
|
PROCUREMENT
OF RAW MATERIALS, MARKETING OF ELECTRICAL CONDUCTIVITY GRADE COPPER WIRES,
RODS
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
30,000,000.00 DIVIDED INTO
ORDINARY SHARE 30,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED
AND PAID UP CAPITAL
|
:
|
MYR
21,000,000.00 DIVIDED INTO
ORDINARY SHARES 21,000,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR
1,316,031,282 [2011]
|
|
NET
WORTH
|
:
|
MYR
86,860,914 [2011]
|
|
M1000
OVERALL RANKING
|
:
|
390[2011]
|
|
M1000
INDUSTRY RANKING
|
:
|
17[2011]
|
|
|
|
|
|
STAFF
STRENGTH
|
:
|
N/A
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER
CHECK
|
:
|
CLEAR
|
|
FINANCIAL
CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
FAIR
|
|
MANAGEMENT
CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL
RISK
|
:
|
N/A
|
|
CURRENCY
EXPOSURE
|
:
|
N/A
|
|
GENERAL
REPUTATION
|
:
|
GOOD
|
|
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) procurement of raw materials, marketing of electrical
conductivity grade copper wires, rods.
The SC is not listed on Bursa
Malaysia (Malaysia Stock Exchange).
|
According
to the Malaysia 1000 publication, the SC's ranking are as follows:
|
|
|
|
|
|
|
|
|
YEAR
|
2011
|
2009
|
2008
|
2005
|
|
|
OVERALL
RANKING
|
390
|
226
|
207
|
383
|
|
|
INDUSTRY
RANKING
|
17
|
12
|
13
|
24
|
|
The immediate and ultimate
holding company of the SC is METROD (MALAYSIA) SDN. BHD., a company
incorporated in MALAYSIA.
The major
shareholder(s) of the SC are shown as follows :
Name
|
Address
|
IC/PP/Loc
No
|
Shareholding
|
(%)
|
|
METROD
(MALAYSIA) SDN. BHD.
|
MALAYSIA
|
66954
|
21,000,000.00
|
100.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
21,000,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR
1
|
Name
Of Subject
|
:
|
RAJAN
MITTAL
|
|
Address
|
:
|
C-20-1,
HIJAUAN KIARA CONDOMINIUM, NO. 6, JALAN KIARA 5, MONT KIARA, 50480 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC
/ PP No
|
:
|
K0728563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date
of Appointment
|
:
|
27/12/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR
2
|
Name
Of Subject
|
:
|
PRATIK
BASU
|
|
Address
|
:
|
27,
JALAN MAMBU, BUKIT BANDARAYA, BANGSAR, 59100 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
IC
/ PP No
|
:
|
Z1800246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date
of Appointment
|
:
|
31/03/1997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR
3
|
Name
Of Subject
|
:
|
UDAY
SINGH SINGHI
|
|
Address
|
:
|
A-29-6,
KIARA VILLE, 2, CHANGKAT DUTA KIARA, MONT KIARA, 50480 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC
/ PP No
|
:
|
Z1809472
|
MANAGEMENT
|
1)
|
Name
of Subject
|
:
|
PRAKTIK
BASU
|
|
|
Position
|
:
|
MANAGING
DIRECTOR
|
|
|
|
|
|
|
2)
|
Name
of Subject
|
:
|
ADITYA
MOHAN
|
|
|
Position
|
:
|
FINANCE
MANAGER
|
|
|
|
|
|
|
3)
|
Name
of Subject
|
:
|
SAJNI
DHARAMDASS
|
|
|
Position
|
:
|
HUMAN
RESOURCE MANAGER
|
|
|
|
|
|
|
4)
|
Name
of Subject
|
:
|
RAYMOND
HOO
|
|
|
Position
|
:
|
GENERAL
MANAGER
|
|
|
|
|
|
|
5)
|
Name
of Subject
|
:
|
AZLAN
HASHIM
|
|
|
Position
|
:
|
CHAIRMAN
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
PRICEWATERHOUSE
COOPERS
|
|
Auditor'
Address
|
:
|
1
SENTRAL ,JALAN TRAVERS, KUALA LUMPUR SENTRAL, LEVEL 10, 50706 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company
Secretary
|
:
|
MS.
WONG WAI FOONG
|
|
|
|
|
|
|
|
New
IC No
|
:
|
660510-10-6838
|
|
|
Address
|
:
|
1164,
JALAN 17/46, HAPPY GARDEN, 46400 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company
Secretary
|
:
|
MR.
YEAP KOK LEONG
|
|
|
|
|
|
|
|
New
IC No
|
:
|
601107-10-5771
|
|
|
Address
|
:
|
NO.11,
JALAN 2/149 G, TAMAN SRI ENDAH, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
The
SC enjoys normal banking routine with above mentioned banker(s). No adverse
record was found during our investigation.
|
ENCUMBRANCE
(S)
No encumbrance was found in our databank at the time of investigation.
LEGAL
CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER
CHECK AGAINST SC
* We have checked through the SC in our defaulters' database which comprised
of debtors that have been blacklisted by our customers and debtors that have
been placed or assigned to us for collection since 1990. Information was
provided by third party where the debt amount can be disputed. Please check
with creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT
RECORD
|
SOURCES
OF RAW MATERIALS:
|
|
Local
|
:
|
N/A
|
|
Overseas
|
:
|
N/A
|
|
|
|
|
The SC refused to disclose its suppliers.
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
|
[
|
|
]
|
|
Average
61-90 Days
|
[
|
|
]
|
|
|
Fair
91-120 Days
|
[
|
X
|
]
|
|
Poor
>120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
N/A
|
|
|
|
|
|
Overseas
|
:
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The SC refused to disclose its clientele information.
OPERATIONS
|
Goods
Traded
|
:
|
|
WIRE,
COPPER, CABLE & ROD
|
|
|
|
|
|
|
Services
|
:
|
|
PROCUREMENTS
OF RAW MATERIALS
|
|
|
|
|
|
|
Total
Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
2008
|
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
COMPANY
|
150
|
150
|
150
|
150
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) procurement of raw materials,
marketing of electrical conductivity grade copper wires, rods.
The SC's high quality copper products are extensively used for many
applications, including generation, transmission & distribution of
electricity, telecommunications, lightning protection, welding, electronics
& automotive parts, magnetic coils, motors, compressors, transformers
etc.
The SC supplies the products according to its customers' orders.
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
|
:
|
03-33413422
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address
Provided by Client
|
:
|
3 LENGKUK
KELULT 2, P O BOX 212 BUKIT RAJA PRIMA INDUSTRIAL PARK 41720 KIANG SELANGOR
DARUL EHSAN
|
|
Current
Address
|
:
|
3,
LENGKUK KELULI 2, BUKIT RAJA PRIME INDUSTRIAL PARK, 41720 KLANG, SELANGOR,
MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest
Financial Accounts
|
:
|
YES
|
Other
Investigations
On 21st March 2013 we contacted one of the staff from the SC and she provided
some information on the SC.
The address provided belongs to the SC's PO Box address.
FINANCIAL
ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Increased
|
[
|
2007
- 2011
|
]
|
|
|
Profit/(Loss)
Before Tax
|
:
|
Decreased
|
[
|
2007
- 2011
|
]
|
|
|
Return
on Shareholder Funds
|
:
|
Unfavourable
|
[
|
<4.31%>
|
]
|
|
|
Return
on Net Assets
|
:
|
Unfavourable
|
[
|
<0.06%>
|
]
|
|
|
|
|
|
|
|
|
|
|
The
SC's turnover increased steadily as the demand for its products / services
increased due to the goodwill built up over the years.The SC incurred losses
during the year due to the inefficient control of its operating costs. The
SC's unfavourable returns on shareholders' funds indicate the management's
inefficiency in utilising its assets to generate returns.
|
|
|
|
|
|
|
|
|
|
Working
Capital Control
|
|
|
|
|
|
|
|
Stock
Ratio
|
:
|
Favourable
|
[
|
27
Days
|
]
|
|
|
Debtor
Ratio
|
:
|
Favourable
|
[
|
38
Days
|
]
|
|
|
Creditors
Ratio
|
:
|
Favourable
|
[
|
8
Days
|
]
|
|
|
|
|
|
|
|
|
|
|
The
SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in stocks. The favourable debtors' days could
be due to the good credit control measures implemented by the SC. 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
|
:
|
Acceptable
|
[
|
0.91
Times
|
]
|
|
|
Current
Ratio
|
:
|
Unfavourable
|
[
|
1.43
Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The
SC's liquid ratio was slightly low. This could indicate that the SC's
working capital was slightly deficient. The SC will have to improve its liquidity
position either by obtaining short term financing or increase its paid up
capital so that it can meet all its short term obligations as and when they
fall due.
|
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest
Cover
|
:
|
Unfavourable
|
[
|
<0.02
Times>
|
]
|
|
|
Gearing
Ratio
|
:
|
Unfavourable
|
[
|
1.24
Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The
SC incurred losses in the year. It did not generate sufficient income to service
its interest. If the situation does not improve, the SC may be vulnerable
to default in servicing the interest. The SC was highly geared, thus it had
a high financial risk. The SC was dependent on loans to finance its
business needs. In times of economic downturn and / or high interest rate,
the SC will become less profitable and competitive than other firms in the
same industry, which are lowly geared. This is because the SC has to
service the interest and to repay the loan, which will erode part of its
profits. The profits will fluctuate depending on the SC's turnover and the
interest it needs to pay.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall
Assessment :
|
|
|
|
|
|
|
|
Although
the SC's turnover increased its profits however showed a reverse trend. The
losses could be due to the management's failure to maintain its
competitiveness in the market. The SC's liquidity was at an acceptable
range. If the SC is able to obtain further short term financing, it should
be able to meet all its short term obligations. The SC's interest cover was
negative, indicating that it did not generate sufficient income to service
its interest. If its result does not show impressive improvements or succeed
obtaining short term financing or capital injection, it may not be able to
service its interest and repay the loans. The SC's gearing level was high
and its going concern will be in doubt if there is no injection of
additional shareholders' funds in times of economic downturn and / or high
interest rates.
|
|
|
|
|
|
|
|
|
|
Overall
financial condition of the SC : POOR
|
MALAYSIA
ECONOMIC / INDUSTRY OUTLOOK
|
Major
Economic Indicators:
|
2008
|
2009
|
2010
|
2011*
|
2012**
|
|
|
|
|
|
|
|
|
Population
( Million)
|
27.73
|
28.13
|
28.35
|
28.70
|
29.10
|
|
Gross
Domestic Products ( % )
|
4.6
|
<0.5>
|
7.2
|
5.5
|
5.3
|
|
Domestic
Demand ( % )
|
6.9
|
2.9
|
6.3
|
4.8
|
7.6
|
|
Private
Expenditure ( % )
|
7.1
|
<2.7>
|
8.1
|
7.0
|
8.7
|
|
Consumption
( % )
|
8.4
|
0.7
|
6.7
|
6.3
|
7.1
|
|
Investment
( % )
|
1.5
|
<17.2>
|
17.7
|
16.2
|
15.9
|
|
Public
Expenditure ( % )
|
6.5
|
5.2
|
3.8
|
7.6
|
4.7
|
|
Consumption
( % )
|
11.6
|
3.1
|
0.2
|
8.9
|
3.0
|
|
Investment
( % )
|
0.7
|
8.0
|
2.8
|
0.6
|
7.0
|
|
|
|
|
|
|
|
|
Balance
of Trade ( MYR Million )
|
129,563
|
89,650
|
118,356
|
116,058
|
-
|
|
Government
Finance ( MYR Million )
|
<34,462>
|
<28,450>
|
<40,482>
|
<45,511>
|
<43,021>
|
|
Government
Finance to GDP / Fiscal Deficit ( % )
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
<4.7>
|
|
Inflation
( % Change in Composite CPI)
|
<3.3>
|
<5.2>
|
5.1
|
3.1
|
-
|
|
Unemployment
Rate
|
3.7
|
4.5
|
3.9
|
3.3
|
-
|
|
|
|
|
|
|
|
|
Net
International Reserves ( MYR Billion )
|
388
|
331
|
329
|
415
|
-
|
|
Average
Risk-Weighted Capital Adequacy Ratio ( % )
|
1.91
|
2.87
|
2.20
|
3.50
|
-
|
|
Average
3 Months of Non-performing Loans ( % )
|
13.24
|
11.08
|
15.30
|
14.80
|
-
|
|
Average
Base Lending Rate ( % )
|
6.72
|
5.53
|
6.30
|
6.60
|
-
|
|
Business
Loans Disbursed( % )
|
11.6
|
10.5
|
14.7
|
15.3
|
-
|
|
Foreign
Investment ( MYR Million )
|
23,261.4
|
22,156.8
|
22,517.9
|
23,546.1
|
-
|
|
Consumer
Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration
of New Companies ( No. )
|
41,599
|
41,578
|
44,148
|
-
|
-
|
|
Registration
of New Companies ( % )
|
<4.0>
|
<0.1>
|
6.2
|
-
|
-
|
|
Liquidation
of Companies ( No. )
|
27,992
|
39,075
|
25,585
|
-
|
-
|
|
Liquidation
of Companies ( % )
|
23.7
|
39.6
|
<34.5>
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration
of New Business ( No. )
|
269,866
|
312,581
|
271,414
|
-
|
-
|
|
Registration
of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business
Dissolved ( No. )
|
18,885
|
19,345
|
19,738
|
-
|
-
|
|
Business
Dissolved ( % )
|
<7.6>
|
2.4
|
2.0
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales
of New Passenger Cars (' 000 Unit )
|
497.5
|
486.3
|
543.6
|
363.0
|
-
|
|
Cellular
Phone Subscribers ( Million )
|
25.1
|
30.1
|
32.8
|
35.3
|
-
|
|
Tourist
Arrival ( Million Persons )
|
21.5
|
23.6
|
24.6
|
25.3
|
-
|
|
Hotel
Occupancy Rate ( % )
|
68.0
|
58.0
|
63.0
|
51.3
|
-
|
|
|
|
|
|
|
|
|
Credit
Cards Spending ( % )
|
17.1
|
12.8
|
14.1
|
15.6
|
-
|
|
Bad
Cheque Offenders (No.)
|
34,834
|
36,667
|
33,568
|
27,208
|
-
|
|
Individual
Bankruptcy ( No.)
|
13,907
|
16,228
|
18,119
|
16,155
|
-
|
|
Individual
Bankruptcy ( % )
|
5.1
|
16.7
|
11.7
|
<10.8>
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES
( % of Growth ):
|
2008
|
2009
|
2010
|
2011*
|
2012**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.6
|
0.4
|
2.1
|
4.7
|
4.1
|
|
Palm
Oil
|
7.0
|
<1.1>
|
<3.4>
|
7.3
|
-
|
|
Rubber
|
<1.1>
|
<19.8>
|
9.9
|
6.4
|
-
|
|
Forestry
& Logging
|
<1.5>
|
<5.9>
|
<3.3>
|
<4.7>
|
-
|
|
Fishing
|
4.0
|
5.5
|
5.6
|
2.8
|
-
|
|
Other
Agriculture
|
5.9
|
9.0
|
7.9
|
8.5
|
-
|
|
Industry
Non-Performing Loans ( MYR Million )
|
393.0
|
413.7
|
508.4
|
634.1
|
-
|
|
%
of Industry Non-Performing Loans
|
<2.0>
|
1.3
|
2.1
|
3.2
|
-
|
|
|
|
|
|
|
|
|
Mining
|
<0.8>
|
<3.8>
|
0.2
|
<2.4>
|
2.5
|
|
Oil
& Gas
|
12.7
|
2.1
|
0.5
|
<1.7>
|
-
|
|
Other
Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry
Non-performing Loans ( MYR Million )
|
36.0
|
44.2
|
49.7
|
46.5
|
-
|
|
%
of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing
#
|
1.3
|
<9.4>
|
11.4
|
5.6
|
4.5
|
|
Exported-oriented
Industries
|
2.7
|
<19.0>
|
12.1
|
2.8
|
-
|
|
Electrical
& Electronics
|
2.4
|
<30.3>
|
28.4
|
<4.9>
|
-
|
|
Rubber
Products
|
4.2
|
<10.1>
|
25.3
|
15.4
|
-
|
|
Wood
Products
|
<6.0>
|
<24.1>
|
20.1
|
<7.3>
|
-
|
|
Textiles
& Apparel
|
1.9
|
<19.5>
|
<0.4>
|
14.8
|
-
|
|
Domestic-oriented
Industries
|
9.9
|
<9.8>
|
16.3
|
6.3
|
-
|
|
Food,
Beverages & Tobacco
|
9.5
|
0.2
|
3.0
|
4.2
|
-
|
|
Chemical
& Chemical Products
|
1.4
|
<7.7>
|
16.2
|
5.6
|
-
|
|
Plastic
Products
|
6.5
|
<9.1>
|
2.4
|
3.8
|
-
|
|
Iron
& Steel
|
16.8
|
<32.7>
|
29.3
|
2.4
|
-
|
|
Fabricated
Metal Products
|
14.7
|
<2.5>
|
14.9
|
25.2
|
-
|
|
Non-metallic
Mineral
|
8.3
|
<15.5>
|
20.2
|
16.3
|
-
|
|
Transport
Equipment
|
27.1
|
<13.5>
|
36.5
|
<9.4>
|
-
|
|
Paper
& Paper Products
|
8.6
|
<5.0>
|
18.7
|
15.6
|
-
|
|
Crude
Oil Refineries
|
7.8
|
0.2
|
<11.4>
|
9.3
|
-
|
|
Industry
Non-Performing Loans ( MYR Million )
|
5,729.4
|
6,007.3
|
6,217.5
|
6,537.2
|
-
|
|
%
of Industry Non-Performing Loans
|
16.8
|
18.3
|
23.8
|
25.7
|
-
|
|
|
|
|
|
|
|
|
Construction
|
2.1
|
5.8
|
5.1
|
4.4
|
7.0
|
|
Industry
Non-Performing Loans ( MYR Million )
|
4,149.8
|
3,241.8
|
4,038.5
|
3,856.9
|
-
|
|
%
of Industry Non-Performing Loans
|
12.2
|
9.9
|
10.7
|
10.2
|
-
|
|
|
|
|
|
|
|
|
Services
|
7.3
|
2.6
|
6.5
|
6.4
|
6.5
|
|
Electric,
Gas & Water
|
5.0
|
0.4
|
8.5
|
5.6
|
4.8
|
|
Transport,
Storage & Communication
|
7.8
|
1.6
|
7.7
|
6.5
|
7.3
|
|
Wholesale,
Retail, Hotel & Restaurant
|
10.0
|
2.8
|
4.7
|
5.2
|
6.9
|
|
Finance,
Insurance & Real Estate
|
9.2
|
3.8
|
6.1
|
6.3
|
6.5
|
|
Government
Services
|
8.6
|
2.0
|
6.7
|
7.6
|
5.6
|
|
Other
Services
|
5.9
|
4.4
|
4.2
|
5.4
|
5.7
|
|
Industry
Non-Performing Loans ( MYR Million )
|
8,281.4
|
6,631.3
|
7,384.6
|
6,825.2
|
-
|
|
% of
Industry Non-Performing Loans
|
24.3
|
20.2
|
25.7
|
23.4
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Estimate / Preliminary
|
|
|
|
|
|
|
**
Forecast
|
|
|
|
|
|
|
#
Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
|
|
|
|
|
|
|
INDUSTRY
ANALYSIS
|
MSIC
CODE
|
|
46621
: Wholesale of ferrous and non-ferrous metal ores and metals
|
|
|
|
|
INDUSTRY
:
|
TRADING
|
|
|
|
|
|
|
The wholesale and retail trade sector grew 7.1% in the first half of the
year 2011 supported by strong consumer spending amid favourable labour
market conditions and sustained disposable income. This was reflected in
the higher distributive trade index which increased 15.9%, with wholesale
and retail trade indices increasing 19.2% and 7.8%, respectively.
|
|
It is anticipated that the retail industry will grow 6.0 per cent in the
year 2012.
|
|
Malaysia's retail sector for 2011 is expected to grow 6 per cent or RM81.59
billion worth of retail sales, similar to the year 2010, due to concerns of
high oil prices, declining purchasing power and high cost of doing
business. The Middle East and North Africa civil wars have caused the world
oil prices to climb. This has led to further rise in the cost of running
retail businesses, especially in terms of transportation cost. Many
retailers have no choice but to pass the increased cost to end consumers. At
the same time, natural disasters (tsunamis, floods, droughts, snow storms,
tornadoes and earthquakes) that occurred in all parts of the world has also
led to a shortage in the supply of food and raw materials. The phenomenon
has pushed retail prices up.In addition, the continual removal of
government subsidies since 2010 has pushed inflation upwards. Consequently,
rising prices of retail goods contributed to an expectation of moderate
performance.
|
|
During the first seven months of 2011, other consumption indicators such as
imports of consumption goods and credit card spending increased 12.8% and
11.8%, respectively. Sales of motor vehicles declined 3% on account of
supply chain disruptions following devastating March 2011 earthquake and
tsunami in Japan.
|
|
Growth of the sector is anticipated to remain encouraging with ongoing
efforts by the Government to increase its contribution to the economy.
Major initiatives include increasing the number of large format stores such
as hypermarkets, superstores and departmental stores are carried out to
boost the economy.
|
|
Meanwhile, the Government has introduced the Retail Shop Transformation
(TUKAR) programme. Under this programme, selected large format retailers
will assist small retailers to improve their premises and layout which
include attractive product display shelves, enhanced lighting and
point-of-sales system to manage product inventory,
|
|
|
|
|
OVERALL
INDUSTRY OUTLOOK : Average Growth
|
CREDIT
RISK EVALUATION & RECOMMENDATION
|
Incorporated in 1990, the SC is a Private Limited company, focusing on
procurement of raw materials, marketing of electrical conductivity grade
copper wires, rods. 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. The SC is a large entity with strong capital
position. We are confident with the SC's business and its future growth
prospect.
|
|
Overall, we regard that the SC's management capability is average.
|
|
Despite the higher turnover, the SC suffered pre-tax losses which reflected
a highly competitive business environment. The SC has generated an
unfavourable return on shareholders' funds indicating that the management
was inefficient in utilising its funds to generate return. The high gearing
ratio clearly implied that the SC was supported by more debt than equity.
Thus, the SC is exposed to high financial risk. The SC however managed to
maintain an adequate liquidity level, indicating that the SC has the ability
to meet its financial obligations. Given a positive net worth standing at
MYR 86,860,914, 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.
|
|
We regard that the SC's overall payment habit is fair. With poor financial
condition, the SC may unable to pay its creditors on the given period of
time.
|
|
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.
|
PROFIT
AND LOSS ACCOUNT
|
THE
FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL
REPORTING STANDARDS(FRS)
|
|
METROD
(OFHC) 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
|
FULL
|
|
Currency
|
MYR
|
MYR
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
TURNOVER
|
1,316,031,282
|
1,259,665,265
|
923,194,412
|
1,279,214,707
|
1,430,710,288
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total
Turnover
|
1,316,031,282
|
1,259,665,265
|
923,194,412
|
1,279,214,707
|
1,430,710,288
|
|
Costs
of Goods Sold
|
<1,300,761,457>
|
<1,234,707,188>
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Gross
Profit
|
15,269,825
|
24,958,077
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
FROM OPERATIONS
|
<3,153,814>
|
13,546,773
|
6,515,364
|
<362,590>
|
4,723,147
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS)
BEFORE TAXATION
|
<3,153,814>
|
13,546,773
|
6,515,364
|
<362,590>
|
4,723,147
|
|
Taxation
|
<590,149>
|
<2,601,420>
|
1,125,292
|
208,193
|
689,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS)
AFTER TAXATION
|
<3,743,963>
|
10,945,353
|
7,640,656
|
<154,397>
|
5,412,147
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED
PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As
previously reported
|
69,604,877
|
58,705,131
|
51,319,475
|
52,250,872
|
52,204,225
|
|
Prior
year adjustment
|
-
|
<45,607>
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As
restated
|
69,604,877
|
58,659,524
|
51,319,475
|
52,250,872
|
52,204,225
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT
AVAILABLE FOR APPROPRIATIONS
|
65,860,914
|
69,604,877
|
58,960,131
|
52,096,475
|
57,616,372
|
|
DIVIDENDS
- Ordinary (paid & proposed)
|
-
|
-
|
<255,000>
|
<777,000>
|
<5,365,500>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED
PROFIT/(LOSS) CARRIED FORWARD
|
65,860,914
|
69,604,877
|
58,705,131
|
51,319,475
|
52,250,872
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE (as per notes to P&L)
|
|
|
|
|
|
|
Term
loan / Borrowing
|
2,926,738
|
1,390,145
|
2,630,750
|
6,888,354
|
7,345,002
|
|
Others
|
170,342
|
304,534
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
3,097,080
|
1,694,679
|
2,630,750
|
6,888,354
|
7,345,002
|
BALANCE
SHEET
|
ASSETS
EMPLOYED:
|
|
|
|
|
|
|
FIXED
ASSETS
|
5,681,634
|
4,729,366
|
4,775,680
|
4,782,037
|
4,820,743
|
|
|
|
|
|
|
|
|
LONG
TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
Deferred
assets
|
488,197
|
343,174
|
2,231,494
|
998,000
|
1,120,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL
LONG TERM INVESTMENTS/OTHER ASSETS
|
488,197
|
343,174
|
2,231,494
|
998,000
|
1,120,000
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL
LONG TERM ASSETS
|
6,169,831
|
5,072,540
|
7,007,174
|
5,780,037
|
5,940,743
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Stocks
|
98,311,448
|
128,496,862
|
99,957,443
|
123,554,474
|
158,716,675
|
|
Trade
debtors
|
136,327,307
|
138,425,339
|
100,071,642
|
94,207,322
|
107,687,787
|
|
Other
debtors, deposits & prepayments
|
1,301,241
|
1,189,583
|
770,218
|
505,823
|
566,550
|
|
Short
term deposits
|
-
|
-
|
-
|
72,738,056
|
30,682,900
|
|
Deposits
with financial institutions
|
3,000,000
|
5,206,322
|
-
|
-
|
-
|
|
Amount
due from related companies
|
29,160,782
|
32,448,818
|
3,046,467
|
8,357,591
|
2,099,917
|
|
Cash
& bank balances
|
6,163,449
|
8,009,571
|
3,208,818
|
4,122,442
|
3,246,128
|
|
Others
|
43,437
|
2,172,056
|
500,000
|
495,831
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL
CURRENT ASSETS
|
274,307,664
|
315,948,551
|
207,554,588
|
303,981,539
|
302,999,957
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL
ASSET
|
280,477,495
|
321,021,091
|
214,561,762
|
309,761,576
|
308,940,700
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
Trade
creditors
|
29,808,297
|
43,984,258
|
49,453,381
|
41,199,601
|
117,166,578
|
|
Other
creditors & accruals
|
4,562,404
|
6,550,574
|
2,215,789
|
6,769,541
|
4,245,697
|
|
Short
term borrowings/Term loans
|
107,954,460
|
136,509,629
|
70,544,700
|
103,432,000
|
71,790,000
|
|
Bill
& acceptances payable
|
-
|
7,000,000
|
-
|
50,780,000
|
26,900,000
|
|
Amounts
owing to holding company
|
41,483,745
|
31,552,388
|
11,322,506
|
30,509,814
|
7,922,908
|
|
Amounts
owing to related companies
|
8,100,462
|
3,599,662
|
378,660
|
4,017,818
|
6,952,499
|
|
Provision
for taxation
|
85,466
|
-
|
-
|
-
|
165,239
|
|
Other
liabilities
|
399,567
|
218,444
|
147,970
|
97,981
|
98,645
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL
CURRENT LIABILITIES
|
192,394,401
|
229,414,955
|
134,063,006
|
236,806,755
|
235,241,566
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET
CURRENT ASSETS/(LIABILITIES)
|
81,913,263
|
86,533,596
|
73,491,582
|
67,174,784
|
67,758,391
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL
NET ASSETS
|
88,083,094
|
91,606,136
|
80,498,756
|
72,954,821
|
73,699,134
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
SHARE
CAPITAL
|
|
|
|
|
|
|
Ordinary
share capital
|
21,000,000
|
21,000,000
|
21,000,000
|
21,000,000
|
21,000,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL
SHARE CAPITAL
|
21,000,000
|
21,000,000
|
21,000,000
|
21,000,000
|
21,000,000
|
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
Retained
profit/(loss) carried forward
|
65,860,914
|
69,604,877
|
58,705,131
|
51,319,475
|
52,250,872
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL
RESERVES
|
65,860,914
|
69,604,877
|
58,705,131
|
51,319,475
|
52,250,872
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS'
FUNDS/EQUITY
|
86,860,914
|
90,604,877
|
79,705,131
|
72,319,475
|
73,250,872
|
|
|
|
|
|
|
|
|
LONG
TERM LIABILITIES
|
|
|
|
|
|
|
Retirement
benefits provision
|
1,222,180
|
1,001,259
|
-
|
-
|
-
|
|
Others
|
-
|
-
|
793,625
|
635,346
|
448,262
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL
LONG TERM LIABILITIES
|
1,222,180
|
1,001,259
|
793,625
|
635,346
|
448,262
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
88,083,094
|
91,606,136
|
80,498,756
|
72,954,821
|
73,699,134
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
FINANCIAL
RATIO
|
TYPES
OF FUNDS
|
|
|
|
|
|
|
Cash
|
6,163,449
|
8,009,571
|
3,208,818
|
76,860,498
|
33,929,028
|
|
Net
Liquid Funds
|
6,163,449
|
8,009,571
|
<67,335,882>
|
<26,571,502>
|
<37,860,972>
|
|
Net
Liquid Assets
|
<16,398,185>
|
<41,963,266>
|
<26,465,861>
|
<56,379,690>
|
<90,958,284>
|
|
Net
Current Assets/(Liabilities)
|
81,913,263
|
86,533,596
|
73,491,582
|
67,174,784
|
67,758,391
|
|
Net
Tangible Assets
|
88,083,094
|
91,606,136
|
80,498,756
|
72,954,821
|
73,699,134
|
|
Net
Monetary Assets
|
<17,620,365>
|
<42,964,525>
|
<27,259,486>
|
<57,015,036>
|
<91,406,546>
|
|
BALANCE
SHEET ITEMS
|
|
|
|
|
|
|
Total
Borrowings
|
107,954,460
|
136,509,629
|
70,544,700
|
103,432,000
|
71,790,000
|
|
Total
Liabilities
|
193,616,581
|
230,416,214
|
134,856,631
|
237,442,101
|
235,689,828
|
|
Total
Assets
|
280,477,495
|
321,021,091
|
214,561,762
|
309,761,576
|
308,940,700
|
|
Net
Assets
|
88,083,094
|
91,606,136
|
80,498,756
|
72,954,821
|
73,699,134
|
|
Net
Assets Backing
|
86,860,914
|
90,604,877
|
79,705,131
|
72,319,475
|
73,250,872
|
|
Shareholders'
Funds
|
86,860,914
|
90,604,877
|
79,705,131
|
72,319,475
|
73,250,872
|
|
Total
Share Capital
|
21,000,000
|
21,000,000
|
21,000,000
|
21,000,000
|
21,000,000
|
|
Total
Reserves
|
65,860,914
|
69,604,877
|
58,705,131
|
51,319,475
|
52,250,872
|
|
LIQUIDITY
(Times)
|
|
|
|
|
|
|
Cash
Ratio
|
0.03
|
0.03
|
0.02
|
0.32
|
0.14
|
|
Liquid
Ratio
|
0.91
|
0.82
|
0.80
|
0.76
|
0.61
|
|
Current
Ratio
|
1.43
|
1.38
|
1.55
|
1.28
|
1.29
|
|
WORKING
CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Stock
Ratio
|
27
|
37
|
40
|
35
|
40
|
|
Debtors
Ratio
|
38
|
40
|
40
|
27
|
27
|
|
Creditors
Ratio
|
8
|
13
|
20
|
12
|
30
|
|
SOLVENCY
RATIOS (Times)
|
|
|
|
|
|
|
Gearing
Ratio
|
1.24
|
1.51
|
0.89
|
1.43
|
0.98
|
|
Liabilities
Ratio
|
2.23
|
2.54
|
1.69
|
3.28
|
3.22
|
|
Times
Interest Earned Ratio
|
<0.02>
|
8.99
|
3.48
|
0.95
|
1.64
|
|
Assets
Backing Ratio
|
4.19
|
4.36
|
3.83
|
3.47
|
3.51
|
|
PERFORMANCE
RATIO (%)
|
|
|
|
|
|
|
Operating
Profit Margin
|
<0.24>
|
1.08
|
0.71
|
<0.03>
|
0.33
|
|
Net
Profit Margin
|
<0.28>
|
0.87
|
0.83
|
<0.01>
|
0.38
|
|
Return
On Net Assets
|
<0.06>
|
16.64
|
11.36
|
8.94
|
16.37
|
|
Return
On Capital Employed
|
<0.06>
|
16.64
|
6.06
|
3.70
|
8.29
|
|
Return
On Shareholders' Funds/Equity
|
<4.31>
|
12.08
|
9.59
|
<0.21>
|
7.39
|
|
Dividend
Pay Out Ratio (Times)
|
0.00
|
0.00
|
0.03
|
<5.03>
|
0.99
|
|
NOTES
TO ACCOUNTS
|
|
|
|
|
|
|
Contingent
Liabilities
|
0
|
0
|
0
|
0
|
0
|
|