MIRA INFORM REPORT

 

 

Report Date :

18.09.2013

 

IDENTIFICATION DETAILS

 

Name :

METROD (OFHC) SDN. BHD.

 

 

Registered Office :

The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Level 18, 59200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

28.05.1990

 

 

Com. Reg. No.:

198472-W

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Procurement of raw materials, marketing of electrical conductivity grade copper wires, rods

 

 

No. of Employees :

Not Available 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :         

Moderate

 

 

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.

:

198472-W

COMPANY NAME

:

METROD (OFHC) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

28/05/1990

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

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

:

RAJAN MITTAL ( CEO )

 

 

 

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 1,157,079,944 [2012]

NET WORTH

:

MYR 91,454,552 [2012]

M1000 OVERALL RANKING

:

390[2011]

M1000 INDUSTRY RANKING

:

17[2011]

 

 

 

STAFF STRENGTH

:

N/A

BANKER (S)

:

RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

PAYMENT

:

AVERAGE

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) 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 holding company of the SC is METROD (MALAYSIA) SDN. BHD., a company incorporated in MALAYSIA.

 

The ultimate holding company of the SC is METDIST S.A., a company incorporated in PANAMA.

 

The intermediate holding company of the SC is METROD HOLDINGS BERHAD, 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.

THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

66954H

21,000,000.00

100.00

 

 

 

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

------

 

 

 

21,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. RAJAN MITTAL

Address

:

C-20-1, HIJAUAN KIARA CONDOMINIUM, 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

:

RAGHVENA MITTAL

Address

:

C-11-1, HIJAUAN KIARA KONDOMINIUM, 6, JALAN KIARA 5, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

Z1799505

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

30/06/2013

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

ADITYA MOHAN

 

Position

:

FINANCE MANAGER

 

 

 

 

 

2)

Name of Subject

:

RAJAN MITTAL

 

Position

:

CEO

 

 

 

 

 

3)

Name of Subject

:

RAYMOND HOO

 

Position

:

GENERAL MANAGER

 

 

 

 

 

4)

Name of Subject

:

SAJNI DHARAMDASS

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

 

 

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. WONG WAI FOONG

 

IC / PP No

:

A0379022

 

New IC No

:

660510-10-6838

 

Address

:

1164, JALAN 17/64, HAPPY GARDEN, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MR. YEAP KOK LEONG

 

IC / PP No

:

6081387

 

New IC No

:

601107-10-5771

 

Address

:

11, JALAN 2/149G, TAMAN SRI ENDAH, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

RHB BANK BHD

 

 

 

 

 

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation. 

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank against the SC whether the subject has been involved in any litigation. 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

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Branch

:

NO

 

 

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. 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0333413422

Current Telephone Number

:

03-33413422

Match

:

YES

 

 

 

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


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.

The SC refused to disclose its current number of employees.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

4.63%

]

 

Return on Net Assets

:

Unfavourable

[

8.81%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The management had succeeded in turning the SC into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. 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

:

Favourable

[

48 Days

]

 

Debtor Ratio

:

Favourable

[

53 Days

]

 

Creditors Ratio

:

Favourable

[

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

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Unfavourable

[

0.76 Times

]

 

Current Ratio

:

Unfavourable

[

1.31 Times

]

 

 

 

 

 

 

 

 

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

2.37 Times

]

 

Gearing Ratio

:

Unfavourable

[

1.81 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. 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 :

 

 

 

 

 

 

The SC's turnover showed a volatile trend but its losses were lower when compared to the previous corresponding period. This could suggest that the SC was more efficient in its operating cost control and was more competitive. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. 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:

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

 

46621 : Wholesale of ferrous and non-ferrous metal ores and metals

 

 

INDUSTRY :

TRADING

 

 

 

According to the Retail Group Malaysia (RGM), the wholesale and retail trade sector forecast to grow to 6% in year 2013. During the first quarter of year 2013, RGM is estimating the retail industry to grow 6.9%. Many retailers have been enjoying better sales since the government handed out cash from mid-January of 2013 under the second round of Bantuan Rakyat 1Malaysia to more than 12 million Malaysians. Bookstores and related retail stores have also started enjoying rising sales since the RM250 1Malaysia Book Voucher was distributed to 1.3 million private and public university students. Besides, since early February 2013, handphone traders and retailers selling smartphone accessories have started to benefit from the RM200 rebate on smartphones for 1.5 million young adults aged between 21 and 30 years with a monthly income of not more than RM3,000.

 

The wholesale and retail trade sector grew 6.1% in the first half of the year 2012 driven by strong domestic consumption and the increasing number of large format stores operating in Malaysia, including 180 foreign hypermarkets, superstores and departmental stores as at end of August 2012. In addition, other indicators such as imports of consumption goods were higher by 15.2%.

 

In 2012, the wholesale and retail trade sector growth to 5.5% driven by higher consumption which benefited from Government initiatives under the 2012 Budget such as BR1M, Baucar Buku 1Malaysia (BB1M) and the RM100 assistance for all primary and secondary school students. The performance of the sector will also be supported by ongoing efforts to modernise the retail segment under the ETP. In 2012, 500 retail shops and 50 workshops are targeted to be modernised under the Retail Shop Transformation (TUKAR) and Automotive Workshop Modernisation (ATOM) programmes, respectively. As at end of July 2012, 95 workshops have been modernised, surpassing the yearly target, while 393 retail shops have been modernised.

 

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.

 

Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption, therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.

 

 

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 and 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. 

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. 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. 

Despite the lower turnover, the SC's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. However, the SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. The high gearing ratio clearly implied that the SC was supported by more debt than equity. Nevertheless, given a positive net worth standing at MYR 91,454,552, 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 payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts. 

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

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

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

1,157,079,944

1,316,031,282

1,259,665,265

923,194,412

1,279,214,707

 

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

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

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

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

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

Total Turnover

1,157,079,944

1,316,031,282

1,259,665,265

923,194,412

1,279,214,707

Costs of Goods Sold

<1,144,469,577>

<1,300,761,457>

<1,234,707,188>

-

-

 

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

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

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

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

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

Gross Profit

12,610,367

15,269,825

24,958,077

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

4,699,886

<3,115,399>

13,546,773

6,515,364

<362,590>

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

4,699,886

<3,115,399>

13,546,773

6,515,364

<362,590>

Taxation

<466,568>

<599,753>

<2,601,420>

1,125,292

208,193

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

4,233,318

<3,715,152>

10,945,353

7,640,656

<154,397>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

65,479,998

69,604,877

58,705,131

51,319,475

52,250,872

Prior year adjustment

-

<413,131>

<45,607>

-

-

 

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

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

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

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

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

As restated

65,479,998

69,191,746

58,659,524

51,319,475

52,250,872

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

69,713,316

65,476,594

69,604,877

58,960,131

52,096,475

TRANSFER TO RESERVES - General

741,236

3,404

-

-

-

DIVIDENDS - Ordinary (paid & proposed)

-

-

-

<255,000>

<777,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

70,454,552

65,479,998

69,604,877

58,705,131

51,319,475

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Term loan / Borrowing

3,433,011

2,926,738

1,390,145

2,630,750

6,888,354

Others

-

-

304,534

-

-

 

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

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

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

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

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

 

3,433,011

2,926,738

1,694,679

2,630,750

6,888,354

 

 

 

BALANCE SHEET

 

 

METROD (OFHC) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

6,811,302

5,681,634

4,729,366

4,775,680

4,782,037

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Deferred assets

306,654

615,169

343,174

2,231,494

998,000

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

306,654

615,169

343,174

2,231,494

998,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

7,117,956

6,296,803

5,072,540

7,007,174

5,780,037

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

151,902,174

98,311,448

128,496,862

99,957,443

123,554,474

Trade debtors

166,658,075

136,327,307

138,425,339

100,071,642

94,207,322

Other debtors, deposits & prepayments

948,466

1,301,241

1,189,583

770,218

505,823

Short term deposits

2,000,000

3,000,000

-

-

72,738,056

Deposits with financial institutions

-

-

5,206,322

-

-

Amount due from related companies

-

29,160,782

32,448,818

3,046,467

8,357,591

Cash & bank balances

39,016,187

6,163,449

8,009,571

3,208,818

4,122,442

Others

856,278

43,437

2,172,056

500,000

495,831

 

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

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

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

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

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

TOTAL CURRENT ASSETS

361,381,180

274,307,664

315,948,551

207,554,588

303,981,539

 

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

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

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

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

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

TOTAL ASSET

368,499,136

280,604,467

321,021,091

214,561,762

309,761,576

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

57,099,040

29,808,297

43,984,258

49,453,381

41,199,601

Other creditors & accruals

4,636,358

4,712,099

6,550,574

2,215,789

6,769,541

Short term borrowings/Term loans

165,148,200

107,954,460

136,509,629

70,544,700

103,432,000

Bill & acceptances payable

-

-

7,000,000

-

50,780,000

Amounts owing to holding company

42,531,472

41,483,745

31,552,388

11,322,506

30,509,814

Amounts owing to related companies

6,770,340

8,100,462

3,599,662

378,660

4,017,818

Provision for taxation

-

85,466

-

-

-

Other liabilities

50,146

249,872

218,444

147,970

97,981

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

276,235,556

192,394,401

229,414,955

134,063,006

236,806,755

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

85,145,624

81,913,263

86,533,596

73,491,582

67,174,784

 

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

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

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

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

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

TOTAL NET ASSETS

92,263,580

88,210,066

91,606,136

80,498,756

72,954,821

 

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

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

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

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

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

 

 

 

 

 

 

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

70,454,552

65,479,998

69,604,877

58,705,131

51,319,475

 

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

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

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

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

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

TOTAL RESERVES

70,454,552

65,479,998

69,604,877

58,705,131

51,319,475

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

91,454,552

86,479,998

90,604,877

79,705,131

72,319,475

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Retirement benefits provision

-

-

1,001,259

-

-

Others

809,028

1,730,068

-

793,625

635,346

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

809,028

1,730,068

1,001,259

793,625

635,346

 

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

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

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

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

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

 

92,263,580

88,210,066

91,606,136

80,498,756

72,954,821

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

METROD (OFHC) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

41,016,187

9,163,449

8,009,571

3,208,818

76,860,498

Net Liquid Funds

41,016,187

9,163,449

1,009,571

3,208,818

26,080,498

Net Liquid Assets

<66,756,550>

<16,398,185>

<41,963,266>

<26,465,861>

<56,379,690>

Net Current Assets/(Liabilities)

85,145,624

81,913,263

86,533,596

73,491,582

67,174,784

Net Tangible Assets

92,263,580

88,210,066

91,606,136

80,498,756

72,954,821

Net Monetary Assets

<67,565,578>

<18,128,253>

<42,964,525>

<27,259,486>

<57,015,036>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

165,148,200

107,954,460

143,509,629

70,544,700

154,212,000

Total Liabilities

277,044,584

194,124,469

230,416,214

134,856,631

237,442,101

Total Assets

368,499,136

280,604,467

321,021,091

214,561,762

309,761,576

Net Assets

92,263,580

88,210,066

91,606,136

80,498,756

72,954,821

Net Assets Backing

91,454,552

86,479,998

90,604,877

79,705,131

72,319,475

Shareholders' Funds

91,454,552

86,479,998

90,604,877

79,705,131

72,319,475

Total Share Capital

21,000,000

21,000,000

21,000,000

21,000,000

21,000,000

Total Reserves

70,454,552

65,479,998

69,604,877

58,705,131

51,319,475

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.15

0.05

0.03

0.02

0.32

Liquid Ratio

0.76

0.91

0.82

0.80

0.76

Current Ratio

1.31

1.43

1.38

1.55

1.28

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

48

27

37

40

35

Debtors Ratio

53

38

40

40

27

Creditors Ratio

18

8

13

20

12

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

1.81

1.25

1.58

0.89

2.13

Liabilities Ratio

3.03

2.24

2.54

1.69

3.28

Times Interest Earned Ratio

2.37

<0.06>

8.99

3.48

0.95

Assets Backing Ratio

4.39

4.20

4.36

3.83

3.47

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

0.41

<0.24>

1.08

0.71

<0.03>

Net Profit Margin

0.37

<0.28>

0.87

0.83

<0.01>

Return On Net Assets

8.81

<0.21>

16.64

11.36

8.94

Return On Capital Employed

8.81

<0.21>

16.64

11.36

8.94

Return On Shareholders' Funds/Equity

4.63

<4.30>

12.08

9.59

<0.21>

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.03

5.03

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.38

UK Pound

1

Rs.100.86

Euro

1

Rs.84.59

 

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.