MIRA INFORM REPORT

 

 

Report Date :

05.10.2013

 

IDENTIFICATION DETAILS

 

Name :

LOYAL MACHINERY SDN. BHD.

 

 

Registered Office :

Wisma Goshen, 60 & 62, Jalan 22/21, Damansara Jaya, 2nd Floor, 47400 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

03.06.1992

 

 

Com. Reg. No.:

241742-W

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trader of parts for commercial vehicles, trailers & industrial machineries

 

 

No. of Employees :

10 [2013]

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Good

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

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

241742-W

COMPANY NAME

:

LOYAL MACHINERY SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

03/06/1992

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

WISMA GOSHEN, 60 & 62, JALAN 22/21, DAMANSARA JAYA, 2ND FLOOR, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

NO 63 JALAN SAMUDRA BARAT SATU, TAMAN SAMUDRA, 68100 BATU CAVES, SELANGOR, MALAYSIA.

TEL.NO.

:

03-61862500

FAX.NO.

:

03-61862500

CONTACT PERSON

:

BAH AH BAH ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

45103

PRINCIPAL ACTIVITY

:

TRADING OF PARTS FOR COMMERCIAL VEHICLES, TRAILERS & INDUSTRIAL MACHINERIES

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 912,998.00 DIVIDED INTO 
ORDINARY SHARES 912,998 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 3,562,834 [2012]

NET WORTH

:

MYR 3,222,404 [2012]

 

 

 

STAFF STRENGTH

:

10 [2013]

BANKER (S)

:

PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

HISTORY / BACKGROUND

 

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

 

The SC is principally engaged in the (as a / as an) trading of parts for commercial vehicles, trailers & industrial machineries.

 

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. BAH AH BAH +

111, JALAN METRO, PERDANA BARAT 15, TAMAN USAHAWAN, KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

510916-02-5057 8092517

252,123.00

27.61

MR. ONG MENG SOON

53A, JALAN CUMARASAMI, BATU 3 3/4, JALAN IPOH, 51100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

570928-71-5287 5334872

127,451.00

13.96

KONG TAY TRADING SDN. BHD.

273, JALAN MA'ROF, OFF BANGSAR, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

106222P

109,960.00

12.04

MS. MOK KWAI CHEE +

816, JALAN SELESA SATU, TAMAN GEMBIRA, OFF JALAN KUCHAI LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

501117-08-5366 4022017

59,896.00

6.56

MS. LEE LOO PHING

273, JALAN MAAROF, OFF BANGSAR, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

610905-10-6044 6310745

59,814.00

6.55

MS. LEE LOO YEAN

111, JALAN METRO, PERDANA BARAT 15, TAMAN USAHAWAN, KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

550712-10-6468 4885055

57,760.00

6.33

MS. ONG CHIEW KIAT

53A, JALAN CUMARASAMI, OFF BATU 4, JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

360718-04-5048 8122635

57,021.00

6.25

MR. LAW KEE HUAT +

8, JALAN SG 7/11, TAMAN SRI GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.

640210-10-7777 7283598

54,980.00

6.02

MS. LIM YOKE LAN

273, JALAN MA'AROF, OFF BANGSAR, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

291227-71-5426 7989036

34,196.00

3.75

MS. NG CHUN HONG

273, JALAN MA'AROF, OFF BANGSAR, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

630907-10-7508 7157968

27,490.00

3.01

MS. LEE LOO LING

38, JALAN SS 20/26, DAMANSARA KIM, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

670930-10-6200 A0793363

27,490.00

3.01

MS. GLORIA LEE LOO CHENG

273, JALAN MA'AROF, OFF BANGSAR, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

580318-10-5392 5334802

22,825.00

2.50

MS. BEY AH SA

6-2 LEVEL 9, CASCADIUM SOUTH BLOCK, 28 JALAN PENAGA, BUKIT BANDARAYA, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

420314-02-5296 3703601

21,992.00

2.41

 

 

 

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

------

 

 

 

912,998.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. ONG LAY FONG

Address

:

55, JALAN KANGSAR, TAMAN RAINBOW, 4 1/2 MILE, JALAN IPOH, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

6310811

New IC No

:

610908-10-5936

Date of Birth

:

08/09/1961

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/04/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. LEE TECK BUOY

Address

:

273, JALAN MA'AROF, OFF BANGSAR, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

831025-14-5079

Date of Birth

:

25/10/1983

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

11/05/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. LAW KEE HUAT

Address

:

8, JALAN SG 7/11, TAMAN SRI GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.

IC / PP No

:

7283598

New IC No

:

640210-10-7777

Date of Birth

:

10/02/1964

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

09/09/1992

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MS. MOK KWAI CHEE

Address

:

816, JALAN SELESA SATU, TAMAN GEMBIRA, OFF JALAN KUCHAI LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

4022017

New IC No

:

501117-08-5366

Date of Birth

:

17/11/1950

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

03/06/1992

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. BAH AH BAH

Address

:

111, JALAN METRO, PERDANA BARAT 15, TAMAN USAHAWAN, KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

8092517

New IC No

:

510916-02-5057

Date of Birth

:

16/09/1951

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

09/09/1992

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

BAH AH BAH

 

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

ROGER YUE, TAN & ASSOCIATES

Auditor' Address

:

WISMA GOSHEN, 60 & 62, JALAN SS 22/21, DAMANSARA JAYA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ERICIA TAN YOKE KUAN

 

 

 

 

 

New IC No

:

820603-14-6214

 

Address

:

C-17-06, AMPANG PRIMA CONDOMINIUM, JALAN WAWASAN AMPANG 2/5, BANDAR BARU AMPANG, 68000 AMPANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. LAM LEE SAN

 

IC / PP No

:

A2855638

 

New IC No

:

740810-14-5740

 

Address

:

B-02-17, SRI CAMELLIA APARTMENT, JALAN PUTERI 7/15, BANDAR PUTERI PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

10/09/1999

N/A

RHB BANK BERHAD

MYR 82.13

Unsatisfied

2

23/09/1999

N/A

PUBLIC BANK BHD

2,021,153.50

Unsatisfied

 

 

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

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

 

 

 

 

 

 

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

PARTS FOR COMMERCIAL VEHICLES, TRAILERS & INDUSTRIAL MACHINERIES

 

 

 

 

 

Total Number of Employees:

YEAR

2013

2011

 

GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

10

10

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of parts for commercial vehicles, trailers & industrial machineries. 

The SC sells parts and accessories for trailers and commercial vehicles. 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-61862500

Match

:

N/A

 

 

 

Address Provided by Client

:

NO.63, JALAN SAMUDAR BHARAT BATU, TAMAN SAMUDRA 68100 BATUCAVES

Current Address

:

NO 63 JALAN SAMUDRA BARAT SATU, TAMAN SAMUDRA, 68100 BATU CAVES, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

we contacted one of the staff from the SC and she provided some information on the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

7.80%

]

 

Return on Net Assets

:

Unfavourable

[

9.87%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Acceptable

[

58 Days

]

 

Debtor Ratio

:

Unfavourable

[

120 Days

]

 

Creditors Ratio

:

Unfavourable

[

86 Days

]

 

 

 

 

 

 

 

 

The SC kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. 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

[

3.17 Times

]

 

Current Ratio

:

Favourable

[

3.78 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

66.66 Times

]

 

Gearing Ratio

:

Favourable

[

0.08 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : 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

45103 : Sale of industrial, commercial and agriculture vehicles - new

 

 

INDUSTRY :

MOTOR VECHICLE

 

 

 

The total industry volume (TIV) for year 2013 forecasted 640 000 units. This is an increase of 2.0% compared to the year 2012. Sales of passenger vehicles in the year 2013 forecasted increase by 2.0% to 563 000 units compared to 552 189 units at the year 2012. While sales of commercial vehicles in year 2013 forecasted to increase by 2.0% to 77 000 units compared to 75 564 units at the year 2012.

 

It is a big challenge for the TIV of year 2013 to create another high record. However, Malaysia's GPD growth is forecasted to be 5.6% in year 2013. This is driven by exports and domestic demand and is expected to give confidence in consumer sentiments. Besides, multiplier effects from the Economic Transformation Programme's (ETP) projects would give a further boost to the domestic economy and create greater demand for new vehicles. 

 

According to the Malaysian Automotive Association (MAA), the implementation of the Bank Negara's guidelines on responsible financing practices from 1st January 2012 caused a slowdown in new vehicle purchase in first quarter 2012. However, the total industry volume (TIV) of the year 2012 surged to a historical high of 627,753 units which is an all time record achievement for the industry. This record had overtaken the previous highest record of 605,156 units achieved in 2010. It had also outperformed the MAA's TIV forecast of 615,000 units. The main contributors to the growth were led by Perodua and Proton, followed by Toyota, Honda and Nissan.

 

The total registration of new passenger vehicles in year 2012 reached 552,189 units compare with 535,113 units in year 2011. Which had bring an increase of 3.2% (17,076 units) of growth rate in the registration of passenger vehicles. While the total registration for commercial vehicles n 2012 was 75,564 units which is an increase of 6.2% (10,554 units). Besides, the production of new vehicles also recorded an increase of 6.8% (36,105 units) in year 2012. According to the president of Malaysian Automotive Association (MAA), the record new vehicle sales in 2012 was due to factors such as strong economic growth, the implementation of infrastructure projects under the Economic Transformation Programme (ETP), increased consumer spending and consumption due to stable employment and rising disposable income, introduction of new models at competitive prices as well as aggressive sales campaigns by car companies.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1992, the SC is a Private Limited company, focusing on trading of parts for commercial vehicles, trailers & industrial machineries. With over 2 decades of experience in the business, the SC has fairly rich experiences in the business and has achieved a certain market share. We considered that the SC's business position in the market is much dependent on the efforts of its directors 

Over the years, the SC should have build up its clientele base and received supports from its regular customers. Investigation revealed that the SC's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the SC's business performance. Being a small company, the SC's business operation is supported by 10 employees. 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. 

The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 3,222,404, 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 overall payment habit is fair and this clearly implied a weak credit control of the SC. 

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

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

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

LOYAL MACHINERY SDN. BHD.

 

Financial Year End

2012-09-30

2011-09-30

2010-09-30

2009-09-30

2008-09-30

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

3,562,834

3,916,337

3,199,120

2,899,146

3,683,650

 

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

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

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

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

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

Total Turnover

3,562,834

3,916,337

3,199,120

2,899,146

3,683,650

Costs of Goods Sold

<2,613,928>

<2,865,889>

-

-

-

 

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

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

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

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

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

Gross Profit

948,906

1,050,448

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

317,903

424,345

236,603

123,335

327,207

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

317,903

424,345

236,603

123,335

327,207

Taxation

<66,677>

<88,888>

<51,359>

<26,549>

<72,369>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

251,226

335,457

185,244

96,786

254,838

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

2,126,655

1,859,673

1,708,666

1,646,117

1,425,060

 

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

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

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

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

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

As restated

2,126,655

1,859,673

1,708,666

1,646,117

1,425,060

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

2,377,881

2,195,130

1,893,910

1,742,903

1,679,898

DIVIDENDS - Ordinary (paid & proposed)

<68,475>

<68,475>

<34,237>

<34,237>

<33,781>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,309,406

2,126,655

1,859,673

1,708,666

1,646,117

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

3,447

1,181

2,061

4,581

-

Term loan / Borrowing

-

-

-

649

-

Trust receipts

1,395

3,136

2,017

4,517

-

 

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

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

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

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

 

 

4,842

4,317

4,078

9,747

 

 

 

 

BALANCE SHEET

 

 

LOYAL MACHINERY SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

670,287

636,461

627,494

651,144

738,222

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Deferred assets

-

-

-

1,560

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

-

1,560

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

670,287

636,461

627,494

652,704

738,222

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

565,923

540,250

633,056

628,535

-

Trade debtors

1,170,407

1,248,950

1,238,810

946,911

-

Other debtors, deposits & prepayments

5,363

4,109

5,113

5,113

-

Cash & bank balances

1,795,093

1,533,724

1,162,280

923,994

-

Others

-

-

19,482

33,648

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

3,536,786

3,327,033

3,058,741

2,538,201

2,919,707

 

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

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

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

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

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

TOTAL ASSET

4,207,073

3,963,494

3,686,235

3,190,905

3,657,929

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

613,910

677,380

548,100

323,219

-

Other creditors & accruals

109,356

136,475

187,331

131,406

-

Hire purchase & lease creditors

-

-

10,867

28,133

-

Bank overdraft

-

-

96

-

-

Short term borrowings/Term loans

209,142

75,614

-

1

-

Other borrowings

-

-

150,669

63,031

-

Provision for taxation

3,752

29,378

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

936,160

918,847

897,063

545,790

1,046,129

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

2,600,626

2,408,186

2,161,678

1,992,411

1,873,578

 

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

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

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

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

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

TOTAL NET ASSETS

3,270,913

3,044,647

2,789,172

2,645,115

2,611,800

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

912,998

912,998

912,998

912,998

912,998

 

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

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

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

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

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

TOTAL SHARE CAPITAL

912,998

912,998

912,998

912,998

912,998

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

2,309,406

2,126,655

1,859,673

1,708,666

1,646,117

 

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

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

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

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

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

TOTAL RESERVES

2,309,406

2,126,655

1,859,673

1,708,666

1,646,117

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,222,404

3,039,653

2,772,671

2,621,664

2,559,115

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

44,093

990

-

-

-

Hire purchase creditors

-

-

12,584

23,451

-

Deferred taxation

4,416

4,004

3,917

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

48,509

4,994

16,501

23,451

52,685

 

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

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

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

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

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

 

3,270,913

3,044,647

2,789,172

2,645,115

2,611,800

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

LOYAL MACHINERY SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

1,795,093

1,533,724

1,162,280

923,994

-

Net Liquid Funds

1,795,093

1,533,724

1,162,184

923,994

-

Net Liquid Assets

2,034,703

1,867,936

1,528,622

1,363,876

1,873,578

Net Current Assets/(Liabilities)

2,600,626

2,408,186

2,161,678

1,992,411

1,873,578

Net Tangible Assets

3,270,913

3,044,647

2,789,172

2,645,115

2,611,800

Net Monetary Assets

1,986,194

1,862,942

1,512,121

1,340,425

1,820,893

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

253,235

76,604

174,216

114,616

-

Total Liabilities

984,669

923,841

913,564

569,241

1,098,814

Total Assets

4,207,073

3,963,494

3,686,235

3,190,905

3,657,929

Net Assets

3,270,913

3,044,647

2,789,172

2,645,115

2,611,800

Net Assets Backing

3,222,404

3,039,653

2,772,671

2,621,664

2,559,115

Shareholders' Funds

3,222,404

3,039,653

2,772,671

2,621,664

2,559,115

Total Share Capital

912,998

912,998

912,998

912,998

912,998

Total Reserves

2,309,406

2,126,655

1,859,673

1,708,666

1,646,117

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

1.92

1.67

1.30

1.69

-

Liquid Ratio

3.17

3.03

2.70

3.50

-

Current Ratio

3.78

3.62

3.41

4.65

2.79

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

58

50

72

79

-

Debtors Ratio

120

116

141

119

-

Creditors Ratio

86

86

63

41

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.08

0.03

0.06

0.04

-

Liabilities Ratio

0.31

0.30

0.33

0.22

0.43

Times Interest Earned Ratio

66.66

99.30

59.02

13.65

-

Assets Backing Ratio

3.58

3.33

3.05

2.90

2.86

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

8.92

10.84

7.40

4.25

8.88

Net Profit Margin

7.05

8.57

5.79

3.34

6.92

Return On Net Assets

9.87

14.08

8.63

5.03

12.53

Return On Capital Employed

9.87

14.08

8.60

4.98

12.53

Return On Shareholders' Funds/Equity

7.80

11.04

6.68

3.69

9.96

Dividend Pay Out Ratio (Times)

0.27

0.20

0.18

0.35

0.13

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

 





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.41

UK Pound

1

Rs.99.29

Euro

1

Rs.83.68

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

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

 

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

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

 

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

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