MIRA INFORM REPORT

 

 

Report Date :

12.12.2014

 

IDENTIFICATION DETAILS

 

Name :

KOM TECHNOLOGIES (M) SDN. BHD.

 

 

Formerly Known As :

SUNRISE MASTERPIECE SDN. BHD.

 

 

Registered Office :

Suite 702, Wisma Hangsam, Jalan Hang Lekir, 7th Floor, 50000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

14.07.2009

 

 

Com. Reg. No.:

864504-X

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of Precast Concrete.

 

 

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 :

Slow

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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.

:

864504-X

COMPANY NAME

:

KOM TECHNOLOGIES (M) SDN. BHD.

FORMER NAME

:

SUNRISE MASTERPIECE SDN. BHD. (14/09/2009)

INCORPORATION DATE

:

14/07/2009

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE 702, WISMA HANGSAM, JALAN HANG LEKIR, 7TH FLOOR, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

PLO 68, JALAN TEKNOLOGI 2/5, KAWASAN PERINDUSTRIAN IKS, 86200 SIMPANG RENGAM, JOHOR, MALAYSIA.

TEL.NO.

:

07-7559390

FAX.NO.

:

07-7559392

CONTACT PERSON

:

CHONG LAN SIN ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

23952

PRINCIPAL ACTIVITY

:

MANUFACTURING OF PRECAST CONCRETE

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 5,400,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH AND 5,300,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 28,106,271 [2013]

NET WORTH

:

MYR 2,840,604 [2013]

 

 

 

STAFF STRENGTH

:

N/A

BANKER (S)

:

OCBC BANK (MALAYSIA) BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

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) manufacturing of precast concrete.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/06/2014

MYR 10,000,000.00

MYR 5,400,000.00

15/02/2013

MYR 5,000,000.00

MYR 2,400,000.00

19/09/2010

MYR 1,000,000.00

MYR 1,000,000.00

23/06/2010

MYR 1,000,000.00

MYR 100,000.00

14/07/2009

MYR 100,000.00

MYR 2.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. CHONG LAN SIN +

15, JALAN USJ 2/4F, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

480225-05-5201 1160239

2,748,000.00

50.89

DATO' OU KWEE HUA +

52, JALAN LAKSAMANA 2, TAMAN UNGKU TUN FATIMAH, 81300 SKUDAI, JOHOR, MALAYSIA.

640626-01-6131 7377907

1,620,000.00

30.00

MR. CHONG TUN YEN +

C 0107, BLOCK C, SUNWAY SUTERA CONDO, JALAN TROPICANA UTARA, PJU 3, SUNWAY DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

760822-14-5535 A3310872

480,000.00

8.89

MR. ALVIN LIM CHUN FOOK

C-4-9, GREENFIELDS APARTMENT, JALAN 1/155B, BUKIT JALIL, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

650907-07-5487 A0202540

480,000.00

8.89

MR. ENG TUCK KUM

26, JALAN PULAI 35, TAMAN PULAI UTAMA, 81300 SKUDAI, JOHOR, MALAYSIA.

630303-01-5493 7069359

72,000.00

1.33

 

 

 

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

------

 

 

 

5,400,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. OU CHIN HUA

Address

:

15, JALAN SERI AMIRA 7, TAMAN AMIRA, 81200 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

A0523894

New IC No

:

660916-01-6437

Date of Birth

:

16/09/1966

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

11/09/2014

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHONG TUN YEN

Address

:

C 0107, BLOCK C, SUNWAY SUTERA CONDO, JALAN TROPICANA UTARA, PJU 3, SUNWAY DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A3310872

New IC No

:

760822-14-5535

Date of Birth

:

22/08/1976

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

11/09/2014

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

DATO' OU KWEE HUA

Address

:

52, JALAN LAKSAMANA 2, TAMAN UNGKU TUN FATIMAH, 81300 SKUDAI, JOHOR, MALAYSIA.

IC / PP No

:

7377907

New IC No

:

640626-01-6131

Date of Birth

:

26/06/1964

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

07/09/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. CHONG LAN SIN

Address

:

15, JALAN USJ 2/4F, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

1160239

New IC No

:

480225-05-5201

Date of Birth

:

25/02/1948

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

07/09/2009

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHONG LAN SIN

 

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

AHMAD ABDULLAH & GOH

Auditor' Address

:

SUITE 701, WISMA HANGSAM, JALAN HANG LEKIRM, 17TH FLOOR, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SUNANNAH A/P K.P.S CHANDRADASAN

 

IC / PP No

:

A1151757

 

New IC No

:

690119-01-5658

 

Address

:

267, JALAN RJ 1/3, TAMAN RASAH JAYA, 70300 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

27/12/2010

LETTER OF PLEDGING FIXED DEPOSIT RECEIPT AND LETTER OF SET OFF

PUBLIC BANK BERHAD

MYR 42,000.00

Unsatisfied

2

31/05/2011

1ST PARTY MEMORANDUM OF DEPOSIT AND LETTER OF SET OFF

MALAYAN BANKING BHD

-

Unsatisfied

3

27/12/2012

DEED OF ASSIGNMENT

OCBC BANK (MALAYSIA) BHD

-

Unsatisfied

4

31/01/2013

DEED OF ASSIGNMENT OF PROCEEDS

HONG LEONG BANK BERHAD

-

Unsatisfied

5

25/02/2013

FIRST LEGAL CHARGE

HONG LEONG BANK BERHAD

-

Unsatisfied

6

13/01/2014

LETTER PLEDGING FIXED DEPOSIT RECEIPT

PUBLIC BANK BERHAD

-

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

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

X

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

N/A

 

 

 

Overseas

:

N/A

 

 

 

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Subject refused to disclose it's clientele.

 

 

OPERATIONS

 

Products manufactured

:

PRECAST CONCRETE

 

 

 

 

Branch

:

NO

 

 

Other Information:


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

The Subject refused to disclose it's business operation.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that:

 

Telephone Number Provided By Client

:

6 07 755 9390/+6 07 755 9391

Current Telephone Number

:

07-7559390

Match

:

YES

 

 

 

Address Provided by Client

:

PLO 68, JALAN TEKNOLOGI 2/5, KAWASAN PERINDUSTRIAN IKS 86200 SIMPANG RENGGAM, JOHOR

Current Address

:

PLO 68, JALAN TEKNOLOGI 2/5, KAWASAN PERINDUSTRIAN IKS, 86200 SIMPANG RENGAM, JOHOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the Subject and he only provided limited information on the Subject.

The address provided is incomplete.

The Subject refused to disclose it's number of employees.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2010 - 2013

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2013

]

 

Return on Shareholder Funds

:

Acceptable

[

21.87%

]

 

Return on Net Assets

:

Unfavourable

[

9.47%

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

15 Days

]

 

Debtor Ratio

:

Unfavourable

[

141 Days

]

 

Creditors Ratio

:

Unfavourable

[

130 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Acceptable

[

0.94 Times

]

 

Current Ratio

:

Unfavourable

[

1.02 Times

]

 

 

 

 

 

 

 

 

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

2.74 Times

]

 

Gearing Ratio

:

Unfavourable

[

1.40 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 was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The higher turnover had helped to reduce the Subject's losses. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all 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 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 Subject : FAIR

 

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 



INDUSTRY ANALYSIS

 

MSIC CODE

23952 : Manufacture of precast concrete, cement or artificial stone articles for use in construction

 

 

INDUSTRY :

CONSTRUCTION

 

 

 

The construction sector consists of four subsectors: residential, non-residential, civil engineering and special trade works. During a period of rapid economic expansion, the sector generally outperforms Gross Domestic Product (GDP) growth.

 

In 2014, the construction sector is expected to further expand by 12.7% and contribute 4% to GDP, supported by the civil engineering and residential subsectors. The civil engineering subsector will be driven by oil and gas (O&G) as well as transportation projects. Meanwhile, growth in the residential subsector is mainly due to the construction of private residential projects ranging from medium to high-end properties. The sector is expected to benefit from the acceleration of ongoing construction activities, particularly from the Economic Transformation Programme (ETP) construction-related projects. In 2015, the construction sector is expected to grow by 10.7% supported by commencement of O&G related projects such as RAPID as well as ongoing transportation related infrastructure projects.

 

On the other hand, civil engineering subsector expanded 6.3% during the first half of 2014, but growth has moderated following the completion of some major projects, including KLIA2, Second Penang Bridge and Manjung coal-power plant. However, ongoing civil engineering projects, particularly O&G related activities and expansion of electricity power stations and transmission lines, will still contribute significantly to the subsector. These include the development of Floating Liquefied Natural Gas 1 Project (FLNG 1) and Sabah Ammonia Urea Plant (SAMUR) projects, and electricity power plants in Manjung and Seberang Prai. Other key projects which will boost growth in the subsector include the ongoing MRT Line 1 project and LRT extension, clean water supply and electrification expansion projects to rural areas especially of Kuantan Port, extension of DUKE and construction of West Coast Expressway the Central Spine Road from Bentong to Kuala Krai.

 

Besides, growth in the non-residential subsector turned around sharply by 14% in line with healthy business activity during the first half of 2014. This was reflected by increased construction activities especially for commercial buildings with the incoming supply of shops. The subsector is expected to remain stable in 2015 supported by encouraging demand for industrial and commercial buildings. Major commercial building projects such as the 118-storey Menara Warisan and Bukit Bintang City Centre are expected to contribute to the growth of the sector.

 

Moreover, the residential subsector expanded strongly by 22.1% during the first half of 2014 supported by higher growth in incoming supply. Meanwhile, new housing approvals increased significantly by 32.6%. Despite the decline in housing starts at 5.3%, residential activity is expected to remain stable. The subsector is expected to remain strong in view of the increased demand for housing in 2015, particularly from the middle-income group. Demand for affordable housing will remain favorable amid several Government initiatives such as PR1MA.

 

Under budget 2015, Government will allocate the total of RM48.25 billion for the construction cost of Sungai Besi - Ulu Klang Expressway (SUKE), West Coast Expressway from Taiping to Banting, Damansara - Shah Alam Highway (DASH), Eastern Klang Valley Expressway (EKVE), upgrading the East Coast railway line, Second MRT Line from Selayang to Putrajaya, and LRT 3 Project. Besides, the Government intends to start construction of the 1,663-km Pan-Borneo Highway comprising 936 km in Sarawak and 727 km in Sabah at a total construction cost of RM27 billion. Other than that, Government will also allocate RM3 billion for the construction of Air Langat 2 Water Treatment Plant to resolve the problem of water supply shortage in the Klang Valley.

 

Starting from 1st April, 2015, all types of construction services including construction of residential houses or agricultural buildings and building materials are subject to 6% of Goods and Services Tax. According to Real Estate and Housing Developers' Association Malaysia (Rehda), home prices will raise once the goods and services tax (GST) comes into play and it will have an impact on construction industry.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 2009, the Subject is a Private Limited company, focusing on manufacturing of precast concrete. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. A paid up capital of MYR 5,400,000 allows the Subject to expand its business more comfortably. However, the Subject does not have strong shareholders’ backing. Without a strong shareholders' backing, the opportunity of the Subject to expand its business is limited.

 

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.


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at a favourable range which indicated that the management was efficient in utilising its funds to generate income. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at MYR 2,840,604, the Subject should be able to maintain its business in the near terms.


The poor payment habit may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies


The industry shows an upward trend and this trend is very likely to sustain in the near terms.


In view of the above, we recommend credit be granted to the Subject with close monitoring.

 



PROFIT AND LOSS ACCOUNT

 

 

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

KOM TECHNOLOGIES (M) SDN. BHD.

 

Financial Year End

2013-12-31

2012-09-30

2011-09-30

2010-09-30

Months

15

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

28,106,271

7,719,624

7,262,358

-

Other Income

142,353

86,562

-

-

 

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

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

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

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

Total Turnover

28,248,624

7,806,186

7,262,358

-

Costs of Goods Sold

(22,969,159)

(7,967,194)

-

-

 

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

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

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

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

Gross Profit

5,279,465

(161,008)

-

-

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

560,029

(2,345,440)

(630,784)

(133,901)

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

560,029

(2,345,440)

(630,784)

(133,901)

Taxation

61,187

38,169

(108,656)

-

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

621,216

(2,307,271)

(739,440)

(133,901)

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

(3,180,612)

(873,341)

(133,901)

-

 

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

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

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

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

As restated

(3,180,612)

(873,341)

(133,901)

-

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(2,559,396)

(3,180,612)

(873,341)

(133,901)

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(2,559,396)

(3,180,612)

(873,341)

(133,901)

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Bank overdraft

17,126

8,893

-

-

Bankers' acceptance

36,907

-

-

-

Hire purchase

25,142

22,768

-

-

Term loan / Borrowing

165,347

-

-

-

Others

76,900

-

-

-

 

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

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

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

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

 

321,422

31,661

-

-

 

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

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

 

 

 

 

 

BALANCE SHEET

 

 

KOM TECHNOLOGIES (M) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

8,955,898

4,435,480

4,468,472

4,058,734

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

8,955,898

4,435,480

4,468,472

4,058,734

 

 

 

 

 

Stocks

1,193,407

353,506

-

-

Trade debtors

10,839,891

1,545,704

-

-

Other debtors, deposits & prepayments

377,740

782,498

-

-

Short term deposits

1,268,935

1,228,741

-

-

Cash & bank balances

722,340

118,164

-

-

 

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

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

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

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

TOTAL CURRENT ASSETS

14,402,313

4,028,613

5,306,141

168,329

 

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

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

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

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

TOTAL ASSET

23,358,211

8,464,093

9,774,613

4,227,063

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

8,202,631

1,232,555

-

-

Other creditors & accruals

2,094,525

1,097,154

-

-

Hire purchase & lease creditors

73,732

65,451

-

-

Bank overdraft

207,659

-

-

-

Short term borrowings/Term loans

229,117

-

-

-

Bill & acceptances payable

433,030

-

-

-

Amounts owing to director

2,804,975

6,575,772

-

-

Provision for taxation

9,300

70,487

-

-

 

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

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

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

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

TOTAL CURRENT LIABILITIES

14,054,969

9,041,419

7,941,048

3,360,964

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

347,344

(5,012,806)

(2,634,907)

(3,192,635)

 

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

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

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

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

TOTAL NET ASSETS

9,303,242

(577,326)

1,833,565

866,099

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

5,400,000

2,400,000

2,400,000

1,000,000

 

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

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

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

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

TOTAL SHARE CAPITAL

5,400,000

2,400,000

2,400,000

1,000,000

 

 

 

 

 

Retained profit/(loss) carried forward

(2,559,396)

(3,180,612)

(873,341)

(133,901)

 

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

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

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

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

TOTAL RESERVES

(2,559,396)

(3,180,612)

(873,341)

(133,901)

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

2,840,604

(780,612)

1,526,659

866,099

 

 

 

 

 

Long term loans

2,659,917

-

-

-

Hire purchase creditors

376,508

203,286

-

-

Others

3,426,213

-

-

-

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

6,462,638

203,286

306,906

-

 

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

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

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

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

 

9,303,242

(577,326)

1,833,565

866,099

 

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

KOM TECHNOLOGIES (M) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

Cash

1,991,275

1,346,905

-

-

Net Liquid Funds

1,350,586

1,346,905

-

-

Net Liquid Assets

(846,063)

(5,366,312)

(2,634,907)

(3,192,635)

Net Current Assets/(Liabilities)

347,344

(5,012,806)

(2,634,907)

(3,192,635)

Net Tangible Assets

9,303,242

(577,326)

1,833,565

866,099

Net Monetary Assets

(7,308,701)

(5,569,598)

(2,941,813)

(3,192,635)

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

3,979,963

268,737

-

-

Total Liabilities

20,517,607

9,244,705

8,247,954

3,360,964

Total Assets

23,358,211

8,464,093

9,774,613

4,227,063

Net Assets

9,303,242

(577,326)

1,833,565

866,099

Net Assets Backing

2,840,604

(780,612)

1,526,659

866,099

Shareholders' Funds

2,840,604

(780,612)

1,526,659

866,099

Total Share Capital

5,400,000

2,400,000

2,400,000

1,000,000

Total Reserves

(2,559,396)

(3,180,612)

(873,341)

(133,901)

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.14

0.15

-

-

Liquid Ratio

0.94

0.41

-

-

Current Ratio

1.02

0.45

0.67

0.05

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

15

17

-

-

Debtors Ratio

141

73

-

-

Creditors Ratio

130

56

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

1.40

(0.34)

-

-

Liabilities Ratio

7.22

(11.84)

5.40

3.88

Times Interest Earned Ratio

2.74

(73.08)

-

-

Assets Backing Ratio

1.72

(0.24)

0.76

0.87

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

1.99

(30.38)

(8.69)

-

Net Profit Margin

2.21

(29.89)

(10.18)

-

Return On Net Assets

9.47

400.78

(34.40)

(15.46)

Return On Capital Employed

9.20

452.02

(34.40)

(15.46)

Return On Shareholders' Funds/Equity

21.87

295.57

(48.44)

(15.46)

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.62.21

UK Pound

1

Rs.97.80

Euro

1

Rs.77.48

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIT

 

               

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.