MIRA INFORM REPORT

 

 

Report Date :

04.12.2014

 

IDENTIFICATION DETAILS

 

Name :

SHAMAWAR ELEKTRIKA SDN. BHD.

 

 

Formerly Known As :

MAXLANE SDN. BHD. (15/08/2011)

 

 

Registered Office :

17-4-1, Jalan 3/50, Diamond Square Commercial Centre, Off Jalan Gombak, 53000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

16.10.1997

 

 

Com. Reg. No.:

450225-V

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Electrical Switches

 

 

No. of Employees :

55

 

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 :

Satisfactory

Payment Behaviour :

Slow but correct

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara 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 earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

 

Source : CIA

 

 

 

 


EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

450225-V

COMPANY NAME

:

SHAMAWAR ELEKTRIKA SDN. BHD.

FORMER NAME

:

MAXLANE SDN. BHD. (15/08/2011)

INCORPORATION DATE

:

16/10/1997

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

17-4-1, JALAN 3/50, DIAMOND SQUARE COMMERCIAL CENTRE, OFF JALAN GOMBAK, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

30, JALAN PERKAKA 8/4, SECTION 8, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-61418364

FAX.NO.

:

03-61418367

EMAIL

:

INQUIRIES@SHAMAWARELEKTRIKA.COM.MY

WEB SITE

:

WWW.SHAMAWARELEKTRIKA.COM.MY

CONTACT PERSON

:

ANI MAWAR BT ABDULLAH ( CEO )

INDUSTRY CODE

:

27

PRINCIPAL ACTIVITY

:

MANUFACTURING OF ELECTRICAL SWITCHES

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 350,000.00 DIVIDED INTO
ORDINARY SHARES 10,100 CASH AND 339,900 OTHERWISE OF MYR 1.00 EACH.

BANKER (S)

 

BANK PERUSAHAAN KECIL & SEDERHANA MALAYSIA BHD
PUBLIC BANK BHD

SALES

:

MYR 11,645,026 [2012]

NET WORTH

:

MYR 3,138,799 [2012]

STAFF STRENGTH

:

55 [2014]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

SATISFACTORY

PAYMENT

:

SLOW BUT CORRECT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL 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) manufacturing of electrical switches.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 500,000.00

MYR 350,000.00

02/05/2003

MYR 100,000.00

MYR 100,000.00

19/03/2003

MYR 100,000.00

MYR 16,579.00

15/10/2002

MYR 100,000.00

MYR 6,579.00

16/10/1997

MYR 100,000.00

MYR 100.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

DATIN ANI MAWAR BINTI ABDULLAH +

12A, JALAN KENYALANG 11/15F, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

690207-08-5840 A1205218

245,000.00

70.00

DATO' SHAKIR HUSEIN BIN KALID

12A, JALAN KENYALANG 11/15F, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

680220-04-5529 A0982311

105,000.00

30.00

 

 

 

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

------

 

 

 

350,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

DATO' SHAKIR HUSEIN BIN KALID

Address

:

12A, JALAN KENYALANG 11/15F, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A0982311

New IC No

:

680220-04-5529

Date of Birth

:

20/02/1968

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

11/01/2002

 

DIRECTOR 2

 

Name Of Subject

:

DATIN ANI MAWAR BINTI ABDULLAH

Address

:

12A, JALAN KENYALANG 11/15F, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A1205218

New IC No

:

690207-08-5840

Date of Birth

:

07/02/1969

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

11/01/2002

 


MANAGEMENT

 

 

 

1)

Name of Subject

:

ANI MAWAR BT ABDULLAH

 

Position

:

CEO

 

 

 

AUDITOR

 

Auditor

:

KHAIRUDDIN,HASYUDEEN & RAZI

Auditor' Address

:

B-5-7, MEGAN AVENUE II, 12, JALAN YAP KWAN SENG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. MOHAMAD ROSDI BIN IBRAHIM

 

IC / PP No

:

7202025

 

New IC No

:

630904-02-5291

 

Address

:

43, JALAN 3/27, SEKSYEN 3, 43650 BANDAR BARU BANGI, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

BANK PERUSAHAAN KECIL & SEDERHANA MALAYSIA BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

10/01/2005

DEED OF ASSIGNMENT OF CONTRACT PAYMENT

BANK PEMBANGUNAN DAN INFRASTRUKTUR MALAYSIA BERHAD

MYR 700,000.00

Unsatisfied

2

30/05/2005

MEMO OF DEPOSIT (OF FIXED DEPOSIT RECEIPT & BY WAY OF SINKING FUND), LETTER OF AUTHORISATION TO UPLIFT THE FIXED DEPOSIT & THE SINKING FUND

BUMIPUTRA-COMMERCE BANK BHD

MYR 500,000.00

Unsatisfied

3

24/10/2005

FACILITY AGREEMENT & DEED OF AGREEMENT

MALAYSIA BUILDING SOCIETY BERHAD

-

Satisfied

4

30/03/2006

N/A

PERBADANAN USAHAWAN NASIONAL BERHAD

-

Satisfied

5

30/03/2006

N/A

PERBADANAN USAHAWAN NASIONAL BERHAD

-

Satisfied

6

26/07/2007

1ST LEGAL CHARGE

BANK SIMPANAN NASIONAL

-

Unsatisfied

7

19/11/2007

DEED OF ASSIGNMENT OF PROJECT ACCOUNT

BANK PERUSAHAAN KECIL & SEDERHANA MALAYSIA BHD

-

Unsatisfied

8

16/05/2008

MEMORANDUM OF DEPOSITED

BANK PERUSAHAAN KECIL & SEDERHANA MALAYSIA BHD

-

Unsatisfied

9

19/01/2010

FACILITY AGREEMENT

PUBLIC BANK BHD

-

Unsatisfied

10

20/03/2012

GENERAL DEED OF ASSIGNMENT

BANK PERUSAHAAN KECIL & SEDERHANA MALAYSIA BHD

-

Unsatisfied

11

20/03/2012

GUARANTEE FACILITY AGREEMENT

BANK PERUSAHAAN KECIL & SEDERHANA MALAYSIA BHD

-

Unsatisfied

12

20/03/2012

FACILITY AGREEMENT

BANK PERUSAHAAN KECIL & SEDERHANA MALAYSIA BHD

-

Unsatisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt 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.

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 Subject refused to disclose it's suppliers.

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

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

N/A

 

 

OPERATIONS

 

Products manufactured

:

ELECTRICAL SWITCHES

 

 

 

Product Brand Name

:

SMI, MCF, MX-NEFW, RX, SH-HRCS01

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2013

2011

2010

2009

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

55

20

18

18

18

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of electrical switches.

The Subject supplies a wide variety of transmission, substation, OEM and telecommunications products.

The Subject strives to provide ingenious electrical and power solutions to meet its client's requirements.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0361418364

Current Telephone Number

:

03-61418364

Match

:

YES

 

 

 

Address Provided by Client

:

30 JLN PEAKA 814 KOTA DAMANSARA 47810 PETALING JAYA MALAYSIA

Current Address

:

30, JALAN PERKAKA 8/4, SECTION 8, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 2nd December 2014 we contacted one of the staff from the Subject and she provided some information on the Subject.

The address provided is as per stated in the report.

 

 

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

11.19%

]

 

Return on Net Assets

:

Acceptable

[

18.74%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Acceptable

[

60 Days

]

 

Debtor Ratio

:

Acceptable

[

65 Days

]

 

Creditors Ratio

:

Favourable

[

19 Days

]

 

 

 

 

 

 

 

 

The Subject kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. The Subject's management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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

[

1.15 Times

]

 

Current Ratio

:

Unfavourable

[

1.69 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

:

Unfavourable

[

2.98 Times

]

 

Gearing Ratio

:

Acceptable

[

0.82 Times

]

 

 

 

 

 

 

 

 

The Subject'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 Subject's gearing was slightly high. The Subject is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the Subject. It will be more vulnerable in times of economy downturn.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the Subject's performance may deteriorate in the coming year.

 

 

 

 

 

 

 

Overall financial condition of the Subject : LIMITED

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

 

 

 

 

 

 

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

 

 

 

 

 

 

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.3

4.0

Unemployment Rate

3.3

3.2

3.0

3.0

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

-

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

-

-

Business Loans Disbursed( % )

15.3

32.2

-

-

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

-

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

45,455

45,441

46,321

-

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

-

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

-

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

284,598

324,761

329,895

-

-

Registration of New Business ( % )

5.0

14.0

2.0

-

-

Business Dissolved ( No. )

20,121

20,380

18,161

-

-

Business Dissolved ( % )

1.9

1.3

(10.9)

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

-

-

 

 

 

 

 

 

Credit Cards Spending ( % )

15.6

12.6

-

-

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

 

 

 

 

 

 

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

 

 

 

 

 

 

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

 

 

 

 

 

 

Manufacturing #

4.7

4.8

3.4

6.6

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

-

-

Plastic Products

3.8

-

-

-

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

 

 

 

 

 

 

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

 

 

 

 

 

 

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

 

 

 

 



INDUSTRY ANALYSIS

 

MSIC CODE

27 : MANUFACTURE OF ELECTRICAL EQUIPMENT

 

 

INDUSTRY :

ELECTRICAL & ELECTRONIC

 

 

 

The electrical & electronics (E&E) industry is the leading subsector in Malaysia's manufacturing sector, contributing significantly to the country's exports (32.8 %) and employment (27.2 %) in 2013. E&E products have been the largest traded items for Malaysia for several decades since the industry inception in the 1960s. The E&E industry in Malaysia is focused on strengthening the three major ecosystems of semiconductors, solar and LED technologies.

 

In the E&E subsector, production grew more strongly by 13.3% during the first seven months of 2014 mainly driven by electronic components, communication equipment and domestic appliances. The output of printed circuit boards and semiconductor devices rose in line with the growing demand for consumer electronics, particularly mobile devices, as well as improving global PC sales. Early in 2014, global PC sales rose on a moderating trend due to the replacement of PCs with a new operating system. Prices of PCs are also falling, narrowing the price differential with tablets. In contrast, the output of general-purpose machinery decreased 8.8% on account of the decline in manufacture of air-conditioning machine as well as lifting and handling equipment.

 

Malaysia being a part of the global E&E production network that stands to gain from the stronger growth in worldwide semiconductor sales. In 2015, the export-oriented industries, particularly the E&E subsector will benefit from the improvement in external conditions in line with improving global growth. The E&E subsector is expected to grow further driven by higher demand of semiconductors, electronic components, communication and computer peripherals with the upswing of global electronics demand.

 

Receipts from E&E products grew at an impressive 10.6% in the first seven months of 2014, rebounding from a contraction of 2.9% in the corresponding period last year. The steady improvement in the global economy, coupled with a pickup in the ICT industry led a surge of 20.1% in export of semiconductor devices. In addition, the robust demand for mid- to low-end smartphones and tablets, notably in emerging markets has driven higher shipments of telecommunication equipment and parts, which turned around with a stronger growth of 30.9% to the US, Netherlands, Singapore and Mexico.

 

According to Ministry of International Trade and Industry, the healthy growth in the E&E sector will help boost the country's economy. The E&E sector is important to Malaysia. Exports of manufactured goods for September 2014 rose by 2.2 % to RM49.14 billion compared with September 2013, driven by higher exports of E&E products. Hence, gross exports are expected to grow 3.2% in 2015 mainly supported by E&E.

 

The growth of semiconductor will continue to spearhead the growth of the E&E industry in Malaysia and has benefited from the global demand in the usage of mobile devices, storage devices, and optoelectronics (photonics, fibre optics, LEDs) and embedded technology integrated circuits, PCBs, LEDs. The E&E industry is targeted under the National Key Economic Areas (NKEA) to gear the nation towards high-income economy by focusing on high-value and high-growth manufacturing activities.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1997, the Subject is a Private Limited company, focusing on manufacturing of electrical switches. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Presently, the issued and paid up capital of the Subject stands at MYR 350,000. Under the control of its directors, we considered that the Subject's business position in the market is much dependent on their abilities.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a moderate size company, the Subject has a total workforce of 55 employees in its business operations. 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.


Despite the lower turnover, the Subject'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. 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. The gearing level of the Subject is slightly high, therefore it faces moderate financial risk. Given a positive net worth standing at MYR 3,138,799, 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.


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 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 Subject'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 Subject normally.

 



 

PROFIT AND LOSS ACCOUNT

 

 

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

SHAMAWAR ELEKTRIKA 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

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

11,645,026

14,565,475

9,556,878

4,570,268

5,940,840

Other Income

1,544,129

960,643

-

-

-

 

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

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

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

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

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

Total Turnover

13,189,155

15,526,118

9,556,878

4,570,268

5,940,840

Costs of Goods Sold

(9,542,189)

(12,419,623)

-

-

-

 

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

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

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

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

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

Gross Profit

3,646,966

3,106,495

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

534,151

141,299

95,414

370,203

301,943

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

534,151

141,299

95,414

370,203

301,943

Taxation

(182,942)

(6,130)

(50,000)

(125,000)

(13,400)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

351,209

135,169

45,414

245,203

288,543

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

2,437,590

2,302,421

2,257,007

2,011,804

1,723,261

 

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

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

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

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

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

As restated

2,437,590

2,302,421

2,257,007

2,011,804

1,723,261

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

2,788,799

2,437,590

2,302,421

2,257,007

2,011,804

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,788,799

2,437,590

2,302,421

2,257,007

2,011,804

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

1,176

1,748

-

-

-

Letter of credit

128,248

162,448

-

-

-

Term loan / Borrowing

108,238

119,757

-

-

-

Others

32,007

110,981

-

-

-

 

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

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

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

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

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

 

269,669

394,934

-

-

-

 

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

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

 

 

 

 

 

 

BALANCE SHEET

 

 

SHAMAWAR ELEKTRIKA SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

1,833,153

1,966,500

2,019,998

1,986,609

2,055,817

 

 

 

 

 

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

148,000

468,000

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

1,833,153

1,966,500

2,167,998

2,454,609

2,055,817

 

 

 

 

 

 

Stocks

1,924,008

2,215,366

-

-

-

Trade debtors

2,060,015

3,622,430

-

-

-

Other debtors, deposits & prepayments

719,457

549,321

-

-

-

Cash & bank balances

609,935

199,488

-

-

-

Others

699,032

95,434

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

6,012,447

6,682,039

4,864,116

3,202,075

3,381,725

 

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

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

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

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

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

TOTAL ASSET

7,845,600

8,648,539

7,032,114

5,656,684

5,437,542

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

493,186

1,764,462

-

-

-

Other creditors & accruals

1,186,969

1,010,450

-

-

-

Hire purchase & lease creditors

10,498

11,004

-

-

-

Short term borrowings/Term loans

119,830

152,412

-

-

-

Other borrowings

623,248

107,489

-

-

-

Bill & acceptances payable

661,652

1,127,169

-

-

-

Amounts owing to director

290,110

260,110

-

-

-

Provision for taxation

170,795

67,753

-

-

-

Other liabilities

-

110,060

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

3,556,288

4,610,909

2,933,217

1,483,318

1,650,045

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

2,456,159

2,071,130

1,930,899

1,718,757

1,731,680

 

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

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

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

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

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

TOTAL NET ASSETS

4,289,312

4,037,630

4,098,897

4,173,366

3,787,497

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

350,000

350,000

350,000

350,000

350,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

350,000

350,000

350,000

350,000

350,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

2,788,799

2,437,590

2,302,421

2,257,007

2,011,804

 

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

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

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

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

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

TOTAL RESERVES

2,788,799

2,437,590

2,302,421

2,257,007

2,011,804

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,138,799

2,787,590

2,652,421

2,607,007

2,361,804

 

 

 

 

 

 

Long term loans

1,150,513

1,237,719

-

-

-

Hire purchase creditors

-

12,321

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,150,513

1,250,040

1,446,476

1,566,359

1,425,693

 

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

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

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

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

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

 

4,289,312

4,037,630

4,098,897

4,173,366

3,787,497

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

SHAMAWAR ELEKTRIKA SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

609,935

199,488

-

-

-

Net Liquid Funds

(51,717)

(927,681)

-

-

-

Net Liquid Assets

532,151

(144,236)

1,930,899

1,718,757

1,731,680

Net Current Assets/(Liabilities)

2,456,159

2,071,130

1,930,899

1,718,757

1,731,680

Net Tangible Assets

4,289,312

4,037,630

4,098,897

4,173,366

3,787,497

Net Monetary Assets

(618,362)

(1,394,276)

484,423

152,398

305,987

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

2,565,741

2,648,114

-

-

-

Total Liabilities

4,706,801

5,860,949

4,379,693

3,049,677

3,075,738

Total Assets

7,845,600

8,648,539

7,032,114

5,656,684

5,437,542

Net Assets

4,289,312

4,037,630

4,098,897

4,173,366

3,787,497

Net Assets Backing

3,138,799

2,787,590

2,652,421

2,607,007

2,361,804

Shareholders' Funds

3,138,799

2,787,590

2,652,421

2,607,007

2,361,804

Total Share Capital

350,000

350,000

350,000

350,000

350,000

Total Reserves

2,788,799

2,437,590

2,302,421

2,257,007

2,011,804

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.17

0.04

-

-

-

Liquid Ratio

1.15

0.97

-

-

-

Current Ratio

1.69

1.45

1.66

2.16

2.05

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

60

56

-

-

-

Debtors Ratio

65

91

-

-

-

Creditors Ratio

19

52

-

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.82

0.95

-

-

-

Liabilities Ratio

1.50

2.10

1.65

1.17

1.30

Times Interest Earned Ratio

2.98

1.36

-

-

-

Assets Backing Ratio

12.26

11.54

11.71

11.92

10.82

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

4.59

0.97

1.00

8.10

5.08

Net Profit Margin

3.02

0.93

0.48

5.37

4.86

Return On Net Assets

18.74

13.28

2.33

8.87

7.97

Return On Capital Employed

18.69

13.24

2.33

8.87

7.97

Return On Shareholders' Funds/Equity

11.19

4.85

1.71

9.41

12.22

Dividend Pay Out Ratio (Times)

0.00

0.00

-

-

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.87

UK Pound

1

Rs.96.83

Euro

1

Rs.76.57

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SDA

 


               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

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

 

Unlimited

 

71-85

Aa

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

 

Large

 

56-70

A

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

 

Fairly Large

 

41-55

Ba

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

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

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

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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

 

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

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

 

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

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