MIRA INFORM REPORT

 

 

Report Date :

19.04.2014

 

IDENTIFICATION DETAILS

 

Name :

O.Y.L. MANUFACTURING COMPANY SDN BHD

 

 

Formerly Known As :

SEMICON ADVANCED TECHNOLOGY (MALAYSIA) SDN BHD

 

 

Registered Office :

Jalan Pengapit 15/19, 40000 Shah Alam, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

04.01.1984

 

 

Com. Reg. No.:

112531-W

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

·         manufacturer of single & multiple split air-conditioners, packaged as well as plant air-conditioning equipment.

·         Subject is under the OYL Industries Berhad which is engaged in the business of heating, ventilation, air-conditioning, refrigeration and air filtration.

 

 

No of Employees :

2000 (2014)

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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.

:

112531-W

COMPANY NAME

:

O.Y.L. MANUFACTURING COMPANY SDN BHD

FORMER NAME

:

SEMICON ADVANCED TECHNOLOGY (MALAYSIA) SDN BHD (21/12/1991)
NEW AVENUES SDN BHD (25/02/1984)

INCORPORATION DATE

:

04/01/1984

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

JALAN PENGAPIT 15/19, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 60334, PERSIARAN BUKIT RAHMAN PUTRA 3, TAMAN PERINDUSTRIAN BUKIT RAHMAN PUTRA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

TEL.NO.

:

03-61458600

FAX.NO.

:

03-61412286

EMAIL

:

ANGELINELEE@OYL.COM.MY

WEB SITE

:

x

CONTACT PERSON

:

KATSUHIKO TAKAGI ( DIRECTOR )

INDUSTRY CODE

:

28191

PRINCIPAL ACTIVITY

:

MANUFACTURE OF SINGLE & MULTIPLE SPLIT AIR-CONDITIONERS,  PACKAGED as well as  PLANT AIR-CONDITIONING EQUIPMENT

 

producing a wide range of HVAC (Heating, Ventilation, Air-Conditioning ) equipment for the Malaysian and global export markets from basic residential air-conditioners to high technology light commercial and commercial heat pump, air-cooled and water-cooled chillers with larger capacity of up to 75 horse power

AUTHORISED CAPITAL

:

MYR 300,000,000.00 DIVIDED INTO
ORDINARY SHARE 299,998,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 2,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 276,254,567.00 DIVIDED INTO
ORDINARY SHARES 2 CASH AND 276,254,565 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 4,646,849,000 [2013]

NET WORTH

:

MYR 2,037,050,000 [2013]

M1000 OVERALL RANKING

:

158[2011]

M1000 INDUSTRY RANKING

:

5[2011]

STAFF STRENGTH

:

2000 [2014]

BANKER (S)

:

HONG LEONG BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) manufacture of single & multiple split air-conditioners, packaged as well as plant air-conditioning equipment.

 

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

 

According to the Malaysia 1000 publication, the Subject's ranking are as follows:

YEAR

2011

2008

2005

2004

OVERALL RANKING

158

358

338

301

INDUSTRY RANKING

5

21

22

23

 

The immediate and ultimate holding company of the Subject is DAIKIN INDUSTRIES LTD., a company incorporated in JAPAN.

 

Share Capital History

 

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 300,000,000.00

MYR 276,254,567.00

16/01/2006

MYR 100,000,000.00

MYR 50,001,600.00

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

DAIKIN INDUSTRIES LTD.

UMEDA CENTER BUILDING, 4-12, NAKAZAKI-NISHI, 2-CHOME, KITA-KU, OSAKA, 530-8323, JAPAN.

JPXLZ00214313

276,254,567.00

100.00

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

------

276,254,567.00

100.00

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

=====

+ Also Director

 

The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :

Local No

Country

Company

(%)

As At

CHINA

AFF TAIWAN CO., LTD

100.00

31/03/2013

INDIA

AFF INDIA PRIVATE LIMITED

100.00

31/03/2013

CHINA

AAF (WUHAN) CO., LTD

100.00

31/03/2013

CHINA

AAF (SUZHOU) CO., LTD.

100.00

31/03/2013

CHINA

AAF (SHENZHEN) CO., LTD.

100.00

31/03/2013

INDONESIA

P.T. O.Y.L. SENTRA MANUFACTURING

100.00

31/03/2013

CHINA

SUZHOU O.Y.L. TECHNOLOGY CO., LTD.

100.00

31/03/2013

CHINA

MCQUAY AIR-CONDITIONING (SHANGHAI) CO., LTD.

100.00

31/03/2013

SAUDI ARABIA

AFF SAUDI ARABIA LTD.

100.00

31/03/2013

CHINA

MCQUAY AIR-CONDITIONING & REFRIGERATION (SUZHOU) CO., LTD.

100.00

31/03/2013

CHINA

SHENZHEN MCQUAY AIR-CONDITIONING CO., LTD.

100.00

31/03/2013

HONG KONG

MCQUAY AIR-CONDITIONING LIMITED

100.00

31/03/2013

197200777G

SINGAPORE

AAF SINGAPORE PTE. LTD.

100.00

31/03/2013

CHINA

O.Y.L TECHNOLOGY (SHENZHEN) CO., LTD.

100.00

31/03/2013

222359H

MALAYSIA

O.Y.L. RESEARCH & DEVELOPMENT CENTRE SDN. BHD.

100.00

29/03/2013

209388K

MALAYSIA

O.Y.L. TECHNOLOGY SDN. BHD.

100.00

01/04/2013

129688D

MALAYSIA

ACSON MALAYSIA SALES & SERVICE SDN. BHD.

100.00

01/04/2013

109719M

MALAYSIA

GROUP ASSOCIATED (C & L) SDN.BHD.

100.00

29/03/2013

137508X

MALAYSIA

AMERICAN AIR FILTER MANUFACTURING SDN. BHD.

100.00

11/10/2013

34543W

MALAYSIA

J & E HALL REFRIGERATION SDN. BHD.

100.00

01/04/2013

370237T

MALAYSIA

J & E HALL (MALAYSIA) SDN. BHD.

100.00

29/03/2013

347391P

MALAYSIA

MCQUAY (MALAYSIA) SDN. BHD.

100.00

01/04/2013

103640U

MALAYSIA

GROUP ASSOCIATED (PENANG) SDN. BHD.

100.00

31/12/2011

132332V

MALAYSIA

O.Y.L. STEEL CENTRE SDN. BHD.

75.00

06/11/2013

168496T

MALAYSIA

YORK (MALAYSIA) SALES & SERVICE SDN. BHD.

70.00

01/04/2013

31113U

MALAYSIA

O.Y.L.-CONDAIR INDUSTRIES SDN. BHD.

51.00

01/04/2013



DIRECTORS

 

DIRECTOR 1

Name Of Subject

:

MR. BENNY LIOW WOON KHIN

Address

:

10, LEGENDA PUTERI 3, DAMANSARA LEGENDA, PETALING JAYA, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

5197971

New IC No

:

570318-02-5879

Date of Birth

:

18/03/1957

Nationality

:

MALAYSIAN

Date of Appointment

:

22/06/2009

 

DIRECTOR 2

Name Of Subject

:

YOSHIHIRO MINENO

Address

:

3-4-1-803, FURUEDAI, SUITA-SHI, OSAKA, 565-0874, JAPAN.

IC / PP No

:

TK3274849

Nationality

:

JAPANESE

Date of Appointment

:

10/03/2008

 

DIRECTOR 3

Name Of Subject

:

MR. OOI CHENG SUAN

Address

:

12, JALAN IBU KOTA 8, TAMAN IBU KOTA, GOMBAK, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A0608773

New IC No

:

670213-02-5029

Date of Birth

:

13/02/1967

Nationality

:

MALAYSIAN

Date of Appointment

:

18/07/2013

 

DIRECTOR 4

Name Of Subject

:

KATSUHIKO TAKAGI

Address

:

12-15-504, YAMATE-CHO, ASHIYA-SHI, HYOGO, 659-0096, JAPAN.

IC / PP No

:

TK9912259

Nationality

:

JAPANESE

Date of Appointment

:

08/08/2007

 

MANAGEMENT

 

 

1)

Name of Subject

:

KATSUHIKO TAKAGI

Position

:

DIRECTOR

 

2)

Name of Subject

:

OOI CHENG SUAN

Position

:

CHIEF OPERATING OFFICER

 

 

 

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE

Auditor' Address

:

UPTOWN 1, 1, JALAN SS21/58, DAMANSARA UPTOWN, LEVEL 19, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. NG HENG KEE

IC / PP No

:

A0960438

New IC No

:

680205-10-6266

Address

:

83, JALAN WAWASAN 3/1, PUSAT BANDAR PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HONG LEONG BANK BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

26/01/1995

N/A

BANK OF AMERICA NT SA

-

Satisfied

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank against the Subject 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 SUBJECT


* We have checked through the Subject 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

Percentage

:

40%

Overseas

:

YES

Percentage

:

60%

Import Countries

:

JAPAN,CHINA,EUROPE


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

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

CLIENTELE

 

Local

:

YES

Percentage

:

40%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

60%

Export Market

:

UNITED STATES

AUSTRALIA

SINGAPORE

MIDDLE EAST

SOUTHEAST ASIA

CANADA

UNITED KINGDOM

EUROPE

Credit Term

:

30 - 60 DAYS

Payment Mode

:

LETTER OF CREDIT (LC)
TELEGRAPHIC TRANSFER (TT)
CHEQUES

Type of Customer

:

AGENTS,DISTRIBUTORS

No of Customer

:

60

 

OPERATIONS

 

Products manufactured

:

SINGLE & MULTIPLE SPLIT AIR-CONDITIONERS & PACKAGED & PLANT AIR-CONDITIONING EQUIPMENT

Product Brand Name

:

ACSON, MC QUAY,YORK

Award

:

1 ) SPECIAL AWARD FOR INNOVATIVE PRODUCT BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2006
2 ) MS ISO 9002 Year :0

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMALL & MEDIUM ENTERPRISE

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

Ownership of premises

:

OWNED

Shifts

:

3

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

2009


GROUP

N/A

N/A

N/A

N/A

N/A

N/A

COMPANY

2000

2000

1,400

1,400

1,400

1,350

 

Branch

:

NO

 

Other Information:

The Subject is principally engaged in the (as a / as an) manufacture of single & multiple split air-conditioners & packaged & plant air-conditioning equipment.

The Subject is under the OYL Industries Berhad which is engaged in the business of heating, ventilation, air-conditioning, refrigeration and air filtration.

The Group owns several major International brand names including McQuay ( heating, ventilation and air-conditioning), American Air Filters (air-filtration, machine intake, air pollution control), J&E Hall (refrigeration) and Acson (our home-grown air-conditioning brand).

The Subject produces a wide range of products which includes:

1) Wall mounted/ Exposed - 6 models

2) Ceiling convertible - has three models which are A, D & C series

3) Ceiling cassette

4) Ceiling concealed - has two models namely CC & CX

5) Static blower

6) Multi split condenser

The Subject produces air-conditioners in various type of sizes and models.

We were informed that the Subject's air-conditioners mainly for homes, offices, factories, hospitals and others.

The Subject is equipped with both automated and semi-automated machineries at the production site.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-61458600

Match

:

N/A

Address Provided by Client

:

LOT 60334, PERSIARAN BUKIT RAHMAN PUTRA 3, TAMAN PERINDUSTRIAN BUKIT RAHMAN PUTRA,47000,SUNGAI BULOH,SELANGOR.

Current Address

:

LOT 60334, PERSIARAN BUKIT RAHMAN PUTRA 3, TAMAN PERINDUSTRIAN BUKIT RAHMAN PUTRA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations

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

 

FINANCIAL ANALYSIS

 

 

Profitability

Return on Shareholder Funds

:

Acceptable

[

18.96%

]

Return on Net Assets

:

Acceptable

[

25.14%

]

The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Favourable

[

42 Days

]

Debtor Ratio

:

Favourable

[

26 Days

]

Creditors Ratio

:

Favourable

[

44 Days

]

The Subject'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 Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Favourable

[

2.03 Times

]

Current Ratio

:

Favourable

[

2.67 Times

]

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

Solvency

Interest Cover

:

Favourable

[

484.57 Times

]

Gearing Ratio

:

Favourable

[

0.01 Times

]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

Overall Assessment :

The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject 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 Subject : 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

28191 : Manufacture of refrigerating or freezing industrial equipment

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 1984, the Subject is a Private Limited company, focusing on manufacture of single & multiple split air-conditioners & packaged & plant air-conditioning equipment. The Subject has been in business for 3 decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.

Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. Being a large entity, the Subject has a steady workforce of 2,000 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to the Subject.

Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject 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 Subject 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 2,037,050,000, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject'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 Subject has a good control over its resources.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

In view of the above favourable condition, we recommend credit be proceeded to the Subject with favourable term.

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

O.Y.L. MANUFACTURING COMPANY SDN BHD

 

Financial Year End

2013-03-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

Months

15

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

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

4,646,849,000

3,691,853,000

3,186,965,000

2,452,700,000

2,826,598,101

Other Income

73,753,000

42,108,000

-

-

-

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

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

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

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

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

Total Turnover

4,720,602,000

3,733,961,000

3,186,965,000

2,452,700,000

2,826,598,101

Costs of Goods Sold

(3,641,321,000)

(2,940,913,000)

(2,497,939,000)

(1,934,068,000)

-

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

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

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

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

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

Gross Profit

1,079,281,000

793,048,000

689,026,000

518,632,000

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

513,069,000

400,717,000

354,597,000

236,292,000

275,927,867

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

513,069,000

400,717,000

354,597,000

236,292,000

275,927,867

Taxation

(114,539,000)

(67,108,000)

(41,766,000)

(37,668,000)

(40,148,514)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

398,530,000

333,609,000

312,831,000

198,624,000

235,779,353

Minority interests

(12,312,000)

(7,506,000)

(11,268,000)

(5,884,000)

(26,445,903)

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

386,218,000

326,103,000

301,563,000

192,740,000

209,333,450

Extraordinary items

(181,519,000)

-

(574,000)

(1,737,000)

-

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

204,699,000

326,103,000

300,989,000

191,003,000

209,333,450

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

1,608,370,000

1,286,196,000

994,321,000

812,019,127

305,949,988

Prior year adjustment

-

-

-

873

-

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

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

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

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

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

As restated

1,608,370,000

1,286,196,000

994,321,000

812,020,000

305,949,988

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,813,069,000

1,612,299,000

1,295,310,000

1,003,023,000

515,283,438

TRANSFER TO RESERVES - General

(6,220,000)

(3,929,000)

(9,114,000)

(8,702,000)

296,735,689

DIVIDENDS - Ordinary (paid & proposed)

(96,689,000)

-

-

-

-

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,710,160,000

1,608,370,000

1,286,196,000

994,321,000

812,019,127

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bankers' acceptance

304,000

479,000

-

-

-

Term loan / Borrowing

220,000

345,000

-

-

-

Others

537,000

443,000

2,788,000

5,718,000

7,693,500

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

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

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

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

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

1,061,000

1,267,000

2,788,000

5,718,000

7,693,500

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

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

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

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

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

 

 

 

 

BALANCE SHEET

 

 

O.Y.L. MANUFACTURING COMPANY SDN BHD

 

ASSETS EMPLOYED:

FIXED ASSETS

465,011,000

491,079,000

434,681,000

458,350,000

478,286,249

LONG TERM INVESTMENTS/OTHER ASSETS

Investments

43,304,000

42,963,000

55,000

55,000

702,500

Deferred assets

36,221,000

63,230,000

43,736,000

25,654,000

19,679,181

Others

22,337,000

25,643,000

29,445,000

31,170,000

32,186,109

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

101,862,000

131,836,000

73,236,000

56,879,000

52,567,790

INTANGIBLE ASSETS

Goodwill on consolidation

72,691,000

72,691,000

72,691,000

72,691,000

72,958,692

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

72,691,000

72,691,000

72,691,000

72,691,000

72,958,692

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

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

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

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

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

TOTAL LONG TERM ASSETS

639,564,000

695,606,000

580,608,000

587,920,000

603,812,731

CURRENT ASSETS

Stocks

534,297,000

611,248,000

582,857,000

398,791,000

522,131,063

Trade debtors

329,438,000

551,226,000

454,290,000

378,964,000

425,504,714

Other debtors, deposits & prepayments

51,453,000

53,271,000

46,804,000

37,569,000

37,117,336

Short term deposits

689,585,000

474,792,000

534,335,000

59,132,000

9,242,976

Amount due from related companies

183,094,000

118,457,000

104,603,000

87,198,000

84,209,329

Cash & bank balances

457,688,000

468,548,000

294,484,000

613,762,000

337,839,183

Others

4,614,000

3,855,000

1,778,000

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

2,250,169,000

2,281,397,000

2,019,151,000

1,575,416,000

1,416,044,601

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

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

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

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

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

TOTAL ASSET

2,889,733,000

2,977,003,000

2,599,759,000

2,163,336,000

2,019,857,332

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

439,582,000

405,426,000

515,873,000

362,872,000

302,083,843

Other creditors & accruals

241,715,000

361,798,000

310,568,000

270,201,000

229,556,999

Short term borrowings/Term loans

9,284,000

844,000

5,370,000

69,527,000

118,306,793

Other borrowings

8,123,000

59,022,000

15,868,000

4,936,000

48,666,892

Bill & acceptances payable

570,000

-

11,414,000

13,549,000

33,147,000

Amounts owing to related companies

58,142,000

48,873,000

50,751,000

26,516,000

27,903,912

Provision for taxation

14,788,000

31,669,000

18,879,000

16,944,000

20,097,714

Other liabilities

72,103,000

85,268,000

68,608,000

48,338,000

43,379,641

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

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

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

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

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

TOTAL CURRENT LIABILITIES

844,307,000

992,900,000

997,331,000

812,883,000

823,142,794

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,405,862,000

1,288,497,000

1,021,820,000

762,533,000

592,901,807

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

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

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

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

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

TOTAL NET ASSETS

2,045,426,000

1,984,103,000

1,602,428,000

1,350,453,000

1,196,714,538

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

276,254,000

276,254,000

276,254,000

276,254,000

276,254,561

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

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

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

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

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

TOTAL SHARE CAPITAL

276,254,000

276,254,000

276,254,000

276,254,000

276,254,561

RESERVES

Exchange equalisation/fluctuation reserve

3,891,000

40,776,000

(10,767,000)

32,346,000

41,061,237

General reserve

21,240,000

30,682,000

21,555,000

17,903,000

10,332,385

Retained profit/(loss) carried forward

1,710,160,000

1,608,370,000

1,286,196,000

994,321,000

812,019,127

Capital redemption reserve

2,000

2,000

2,000

2,000

1,600

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

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

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

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

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

TOTAL RESERVES

1,735,293,000

1,679,830,000

1,296,986,000

1,044,572,000

863,414,349

MINORITY INTEREST

25,503,000

21,882,000

22,680,000

22,664,000

22,587,701

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

2,037,050,000

1,977,966,000

1,595,920,000

1,343,490,000

1,162,256,611

LONG TERM LIABILITIES

Long term loans

-

-

-

-

23,788,833

Deferred taxation

2,617,000

409,000

235,000

813,000

3,967,612

Retirement benefits provision

5,759,000

5,728,000

6,273,000

6,150,000

6,701,482

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

8,376,000

6,137,000

6,508,000

6,963,000

34,457,927

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

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

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

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

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

2,045,426,000

1,984,103,000

1,602,428,000

1,350,453,000

1,196,714,538

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

O.Y.L. MANUFACTURING COMPANY SDN BHD

 

TYPES OF FUNDS

Cash

1,147,273,000

943,340,000

828,819,000

672,894,000

347,082,159

Net Liquid Funds

1,146,703,000

943,340,000

817,405,000

659,345,000

313,935,159

Net Liquid Assets

871,565,000

677,249,000

438,963,000

363,742,000

70,770,744

Net Current Assets/(Liabilities)

1,405,862,000

1,288,497,000

1,021,820,000

762,533,000

592,901,807

Net Tangible Assets

1,972,735,000

1,911,412,000

1,529,737,000

1,277,762,000

1,123,755,846

Net Monetary Assets

863,189,000

671,112,000

432,455,000

356,779,000

36,312,817

BALANCE SHEET ITEMS

Total Borrowings

17,977,000

59,866,000

32,652,000

88,012,000

223,909,518

Total Liabilities

852,683,000

999,037,000

1,003,839,000

819,846,000

857,600,721

Total Assets

2,889,733,000

2,977,003,000

2,599,759,000

2,163,336,000

2,019,857,332

Net Assets

2,045,426,000

1,984,103,000

1,602,428,000

1,350,453,000

1,196,714,538

Net Assets Backing

2,037,050,000

1,977,966,000

1,595,920,000

1,343,490,000

1,162,256,611

Shareholders' Funds

2,037,050,000

1,977,966,000

1,595,920,000

1,343,490,000

1,162,256,611

Total Share Capital

276,254,000

276,254,000

276,254,000

276,254,000

276,254,561

Total Reserves

1,735,293,000

1,679,830,000

1,296,986,000

1,044,572,000

863,414,349

LIQUIDITY (Times)

Cash Ratio

1.36

0.95

0.83

0.83

0.42

Liquid Ratio

2.03

1.68

1.44

1.45

1.09

Current Ratio

2.67

2.30

2.02

1.94

1.72

WORKING CAPITAL CONTROL (Days)

Stock Ratio

42

60

67

59

67

Debtors Ratio

26

54

52

56

55

Creditors Ratio

44

50

75

68

39

SOLVENCY RATIOS (Times)

Gearing Ratio

0.01

0.03

0.02

0.07

0.19

Liabilities Ratio

0.42

0.51

0.63

0.61

0.74

Times Interest Earned Ratio

484.57

317.27

128.19

42.32

36.87

Assets Backing Ratio

7.14

6.92

5.54

4.63

4.07

PERFORMANCE RATIO (%)

Operating Profit Margin

11.04

10.85

11.13

9.63

9.76

Net Profit Margin

8.31

8.83

9.46

7.86

7.41

Return On Net Assets

25.14

20.26

22.30

17.92

23.70

Return On Capital Employed

23.98

19.34

21.05

16.74

21.95

Return On Shareholders' Funds/Equity

18.96

16.49

18.90

14.35

18.01

Dividend Pay Out Ratio (Times)

0.25

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0




 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.38

UK Pound

1

Rs.101.63

Euro

1

Rs.83.57

 

INFORMATION DETAILS

 

Analysis Done by :

Ras

 

 

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.