MIRA INFORM REPORT

 

 

Report Date :

22.11.2013

 

IDENTIFICATION DETAILS

 

Name :

DRESSER-RAND ASIA PACIFIC SDN. BHD.

 

 

Registered Office :

Skrine, Unit 50-8-1, Wisma Uoa Damansara, 50, Jalan Dungun, Damansara Heights, 8th Floor, 50490 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

27.08.1998

 

 

Com. Reg. No.:

468047-A

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Sale of Oil & Gas Equipment

 

 

No. of Employees :

90

 

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 :

Good

Payment Behaviour :

Regular

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

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

 

N/A - Not Applicable

 

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

468047-A

COMPANY NAME

:

DRESSER-RAND ASIA PACIFIC SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

27/08/1998

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SKRINE, UNIT 50-8-1, WISMA UOA DAMANSARA, 50, JALAN DUNGUN, DAMANSARA HEIGHTS, 8TH FLOOR, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

UNIT 8-1, 8TH FLOOR, BANGUNAN MALAYSIA RE, 17 LORONG DUNGUN, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-20936633

FAX.NO.

:

03-20932622

WEB SITE

:

WWW.DRESSER-RAND.COM

CONTACT PERSON

:

RAYMOND LAWRENCE CARNEY JR ( DIRECTOR )

INDUSTRY CODE

:

465

PRINCIPAL ACTIVITY

:

SALE OF OIL & GAS EQUIPMENT

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 208,415,442 [2012]

NET WORTH

:

MYR 122,748,215 [2012]

BANKER (S)

 

MALAYAN BANKING BHD

STAFF STRENGTH

:

90 [2013]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

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) sale of oil & gas equipment.

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

 

The immediate holding company of the SC is DRESSER-RAND HOLDING (DELAWARE LLC), a company incorporated in UNITED STATES.

The ultimate holding company of the SC is DRESSER-RAND GROUP INC., a company incorporated in UNITED STATES.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

DRESSER-RAND HOLDING (DELAWARE LLC)

10205, WESTHEIMER, SUITE 1000, 77042 HOUSTON, TEXAS, UNITED STATES.

061229924

500,000.00

100.00

 

 

 

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

------

 

 

 

500,000.00

100.00

 

 

 

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

=====

+ Also Director

 

The SC interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Country

Company

(%)

As At

011

KOREA

DRESSER-RAND KOREA CO. LTD.

100.00

31/12/2012



DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MS. SHARMINI A/P T. GANAESVARAN

Address

:

5, JALAN BAYU 5/1, BUKIT GITA BAYU, 43300 BALAKONG, SELANGOR, MALAYSIA.

New IC No

:

730115-14-5280

Date of Birth

:

15/01/1973

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

20/07/2011

 

DIRECTOR 2

 

Name Of Subject

:

MS. WAN NOR AILANI BINTI WAN IBRAHIM

Address

:

1, JALAN DAUN INAI 15, SUNWAY SPK DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

6222837

New IC No

:

610810-11-5028

Date of Birth

:

10/08/1961

Nationality

:

MALAYSIAN

Date of Appointment

:

15/08/2008

 

DIRECTOR 3

 

Name Of Subject

:

MR. RAYMOND LAWRENCE CARNEY JR

Address

:

4911, HOLLOWVINE LANE KATY, 77494, TEXAS, UNITED STATES.

IC / PP No

:

447592758

Nationality

:

AMERICAN

Date of Appointment

:

27/07/2012

 

DIRECTOR 4

 

Name Of Subject

:

MARK FRANCIS MAI

Address

:

4, RUE SAINT PHILIPPE DU ROULE, 75008, PARIS, FRANCE.

IC / PP No

:

135397349

Nationality

:

AMERICAN

Date of Appointment

:

27/07/2012

 

DIRECTOR 5

 

Name Of Subject

:

MICHAEL KENNETH KEATOR

Address

:

B 33-3, MONT KIARA SENI CONDOMINUM, CHANGKAT DUTA KIARA, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

481812142

 

 

 

Nationality

:

AMERICAN

Date of Appointment

:

28/06/2013

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

RAYMOND LAWRENCE CARNEY JR

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

KHOO WAI YIN

 

Position

:

ACCOUNTANT

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, LEVEL 10, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LEW OY FOONG

 

IC / PP No

:

A1772630

 

New IC No

:

701230-10-6436

 

Address

:

17, JALAN SL 7/12, BANDAR SUNGAI LONG, 11 1/4 MILES, JALAN CHERAS, 43000 KAJANG, 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 againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.


No legal action was found in our databank.


No winding up petition was found in our databank.



DEFAULTER CHECK AGAINST SC


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

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



PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 


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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)


The SC's products are sold directly to the oil and gas companies.

 

 

OPERATIONS

 

Goods Traded

:

OIL & GAS EQUIPMENT

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

90

87

89

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) sale of oil & gas equipment.


The SC is part of the Dresser Rand, a company located globally.


Dresser-Rand Company is an established leader in energy conversion technology, with field-proven centrifugal and reciprocating compressors, steam turbines, expanders, gas turbine packages, and control systems.

Dresser Rand is the largest global suppliers of rotating equipment solutions, designing, manufacturing and servicing a wide range of technologically advanced centrifugal and reciprocating compressors, steam and gas turbines.

The products are not only used in the oil and gas field but also in the refining, chemical, petrochemical as well as gas processing industries.


The SC concentrates more on the trading of oil and gas equipment.


The SC mainly sell a wide range of compressors.


The poducts are directly distributed to the customers' required destinations from the supplier.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0320936633

Current Telephone Number

:

03-20936633

Match

:

YES

 

 

 

Address Provided by Client

:

UNIT 9-4, 9TH FLOOR, BANGUNAN MALAYSIAN RE 50490 KUALA LUMPUR

Current Address

:

UNIT 8-1, 8TH FLOOR, BANGUNAN MALAYSIA RE, 17 LORONG DUNGUN, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 19th November 2013, we contacted one of the staff from the SC and she provided some information on the SC.

The address provided also belongs to the SC.


SPECIAL REQUEST:


The SC is using Malayan Banking Bhd as their banker. However, the SC refused to disclose its main banker's branch. The SC also refused to disclose its main customers and suppliers as such information are confidential.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

39.80%

]

 

Profit/(Loss) Before Tax

:

Increased

[

21.93%

]

 

Return on Shareholder Funds

:

Acceptable

[

19.37%

]

 

Return on Net Assets

:

Acceptable

[

27.77%

]

 

 

 

 

 

 

 

 

The increase in turnover could be due to the SC adopting an aggressive marketing strategy.The SC's management have been efficient in controlling its operating costs. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

3 Days

]

 

Debtor Ratio

:

Unfavourable

[

72 Days

]

 

Creditors Ratio

:

Favourable

[

1 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

[

3.46 Times

]

 

Current Ratio

:

Favourable

[

3.50 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

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was nil as it did not pay any interest during the year. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those 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. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the SC : STRONG

 

 

 

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

465 : Wholesale of 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 1998, the SC is a Private Limited company, focusing on sale of oil & gas equipment. 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. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment.

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 90 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.

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 zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 122,748,215, 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.

We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.


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)

DRESSER-RAND ASIA PACIFIC SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

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

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

208,415,442

149,085,238

190,502,895

184,382,535

190,225,366

 

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

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

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

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

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

Total Turnover

208,415,442

149,085,238

190,502,895

184,382,535

190,225,366

Costs of Goods Sold

<145,665,192>

<105,289,741>

-

-

-

 

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

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

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

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

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

Gross Profit

62,750,250

43,795,497

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

34,089,665

27,958,446

<440,415>

24,577,615

31,162,639

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

34,089,665

27,958,446

<440,415>

24,577,615

31,162,639

Taxation

<10,312,368>

<8,912,274>

<4,130,811>

<6,265,395>

<8,273,725>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

23,777,297

19,046,172

<4,571,226>

18,312,220

22,888,914

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

100,341,897

81,295,725

85,866,951

67,554,731

44,665,817

 

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

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

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

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

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

As restated

100,341,897

81,295,725

85,866,951

67,554,731

44,665,817

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

124,119,194

100,341,897

81,295,725

85,866,951

67,554,731

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

124,119,194

100,341,897

81,295,725

85,866,951

67,554,731

 

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

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

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

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

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

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

DRESSER-RAND ASIA PACIFIC SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

429,195

528,128

495,603

562,232

385,214

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investments

131,000

131,000

-

-

131,000

Deferred assets

252,070

240,429

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

383,070

371,429

131,000

131,000

131,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

812,265

899,557

626,603

693,232

516,214

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

1,767,411

9,714,303

-

-

6,265,547

Trade debtors

40,918,969

54,268,314

-

-

33,425,505

Other debtors, deposits & prepayments

1,073,271

753,279

-

-

667,991

Short term deposits

-

741,896

-

-

-

Amount due from holding company

-

12,850,873

-

-

-

Amount due from related companies

117,606,273

81,583,971

-

-

49,077,452

Cash & bank balances

9,397,194

8,779,501

-

-

23,357,589

Others

-

-

-

-

14,218,842

 

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

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

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

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

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

TOTAL CURRENT ASSETS

170,763,118

168,692,137

127,871,726

143,827,297

127,012,926

 

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

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

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

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

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

TOTAL ASSET

171,575,383

169,591,694

128,498,329

144,520,529

127,529,140

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

289,795

331,519

-

-

1,768,103

Other creditors & accruals

19,851,766

17,835,516

-

-

12,391,649

Deposits from customers

5,112,392

6,699,560

-

-

-

Amounts owing to related companies

19,178,118

43,912,862

-

-

44,932,931

Provision for taxation

4,395,097

1,161,268

-

-

1,358,201

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

48,827,168

69,940,725

48,546,829

58,571,532

60,450,884

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

121,935,950

98,751,412

79,324,897

85,255,765

66,562,042

 

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

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

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

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

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

TOTAL NET ASSETS

122,748,215

99,650,969

79,951,500

85,948,997

67,078,256

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

500,000

500,000

500,000

500,000

500,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

500,000

500,000

500,000

500,000

500,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Exchange equalisation/fluctuation reserve

<1,870,979>

<1,190,928>

<1,844,225>

<417,954>

<1,517,940>

Retained profit/(loss) carried forward

124,119,194

100,341,897

81,295,725

85,866,951

67,554,731

 

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

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

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

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

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

TOTAL RESERVES

122,248,215

99,150,969

79,451,500

85,448,997

66,036,791

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

122,748,215

99,650,969

81,795,725

86,366,951

66,536,791

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

-

-

-

-

541,465

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

-

-

-

-

541,465

 

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

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

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

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

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

 

122,748,215

99,650,969

79,951,500

85,948,997

67,078,256

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

DRESSER-RAND ASIA PACIFIC SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

9,397,194

9,521,397

-

-

23,357,589

Net Liquid Funds

9,397,194

9,521,397

-

-

23,357,589

Net Liquid Assets

120,168,539

89,037,109

79,324,897

85,255,765

60,296,495

Net Current Assets/(Liabilities)

121,935,950

98,751,412

79,324,897

85,255,765

66,562,042

Net Tangible Assets

122,748,215

99,650,969

79,951,500

85,948,997

67,078,256

Net Monetary Assets

120,168,539

89,037,109

79,324,897

85,255,765

59,755,030

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

-

-

0

Total Liabilities

48,827,168

69,940,725

48,546,829

58,571,532

60,992,349

Total Assets

171,575,383

169,591,694

128,498,329

144,520,529

127,529,140

Net Assets

122,748,215

99,650,969

79,951,500

85,948,997

67,078,256

Net Assets Backing

122,748,215

99,650,969

79,951,500

85,948,997

66,536,791

Shareholders' Funds

122,748,215

99,650,969

79,951,500

85,948,997

66,536,791

Total Share Capital

500,000

500,000

500,000

500,000

500,000

Total Reserves

122,248,215

99,150,969

79,451,500

85,448,997

66,036,791

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.19

0.14

-

-

0.39

Liquid Ratio

3.46

2.27

-

-

2.00

Current Ratio

3.50

2.41

2.63

2.46

2.10

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

3

24

-

-

12

Debtors Ratio

72

133

-

-

64

Creditors Ratio

1

1

-

-

3

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

-

-

0.00

Liabilities Ratio

0.40

0.70

0.61

0.68

0.92

Times Interest Earned Ratio

0.00

0.00

-

-

0.00

Assets Backing Ratio

245.50

199.30

159.90

171.90

134.16

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

16.36

18.75

<0.23>

13.33

16.38

Net Profit Margin

11.41

12.78

<2.40>

9.93

12.03

Return On Net Assets

27.77

28.06

<0.55>

28.60

46.46

Return On Capital Employed

27.77

28.06

<0.54>

28.46

46.46

Return On Shareholders' Funds/Equity

19.37

19.11

<5.59>

21.20

34.40

Dividend Pay Out Ratio (Times)

0.00

0.00

-

-

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

 

-

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.89

UK Pound

1

Rs.101.14

Euro

1

Rs.84.42

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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

 

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

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

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

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