MIRA INFORM REPORT

 

 

Report Date :

19.12.2014

 

IDENTIFICATION DETAILS

 

Name :

TEREX MALAYSIA SDN. BHD.

 

 

Formerly Known As :

JAQUES (INTERNATIONAL) SDN. BHD.

 

 

Registered Office :

23A, Lorong Bunga Matahari 1b, Taman Maju Jaya, Cheras, 56100 Kuala Lumpur, Wilayah Persekutuan,

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

19.02.1975

 

 

Com. Reg. No.:

22037-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacture Of Heavy Industrial Machinery

 

 

No. of Employees :

80 [2014]

 

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 :

No complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Malaysia

A1

A1

 

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

Company name and address

 

 

REGISTRATION NO.

:

22037-K

COMPANY NAME

:

TEREX MALAYSIA SDN. BHD.

FORMER NAME

:

JAQUES (INTERNATIONAL) SDN. BHD. (24/07/2014)

INCORPORATION DATE

:

19/02/1975

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

23A, LORONG BUNGA MATAHARI 1B, TAMAN MAJU JAYA, CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 53674, PERSIARAN SUBANG INDAH, SUNGAI PENAGA INDUSTRIAL ESTATE, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-56316199/56226185

FAX.NO.

:

03-56316187

CONTACT PERSON

:

KUA BOON SONG ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

28220

PRINCIPAL ACTIVITY

:

MANUFACTURE OF HEAVY INDUSTRIAL MACHINERY

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 776,621.00 DIVIDED INTO
ORDINARY SHARES 500,000 CASH AND 276,621 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 119,393,800 [2012]

NET WORTH

:

MYR 24,062,717 [2012]

 

 

 

STAFF STRENGTH

:

80 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

NO COMPLAINTS

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

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) manufacture of heavy industrial machinery.

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

 

The immediate holding company of the Subject is JACQUES INTERNATIONAL HOLDING PROPERTY LIMITED, a company incorporated in AUSTRALIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

01/04/2014

MYR 1,000,000.00

MYR 776,621.00

01/09/1989

MYR 1,000,000.00

MYR 500,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

JACQUES INTERNATIONAL HOLDING PROPERTY LIMITED

10, HAZALHURST STREET, KEWDALE, 6105, AUSTRALIA.

004075978

500,000.00

64.38

TEREX AUSTRALIA PTY LTD

585, CURTIN AVENUE EAST, EAGLE FARM, QUEENSLAND, 4009, AUSTRALIA.

010671048

276,621.00

35.62

 

 

 

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

------

 

 

 

776,621.00

100.00

 

 

 

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

=====

 

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

 

Local No

Country

Company

(%)

As At

25720V

MALAYSIA

SEMPURNA ENTERPRISE (M) SDN. BHD.

100.00

31/12/2012

 

 

 

 

 



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. ERIC I COHEN

Address

:

32, BURNHAM HILL ROAD, WESTPORT, CT, 06880, UNITED STATES.

IC / PP No

:

110979413

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

14/03/2001

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. QUEK BOON KIM

Address

:

23B, LORONG BUNGA MATAHARI 1B, TAMAN MAJU JAYA, CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

4130484

New IC No

:

511010-10-6541

Date of Birth

:

10/10/1951

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

19/12/1975

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. KUA BOON SONG

Address

:

41, JALAN TEMPUA 5, BANDAR PUCHONG JAYA, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

671204-01-5755

Date of Birth

:

04/12/1967

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

10/11/2010

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

KUA BOON SONG

 

Position

:

DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1, SENTRAL, JALAN TRAVERS, LEVEL 10, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. QUEK BOON KIM

 

IC / PP No

:

4130484

 

New IC No

:

511010-10-6541

 

Address

:

23B, LORONG BUNGA MATAHARI 1B, TAMAN MAJU JAYA, CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

26/03/1985

MEMO OF DEPOSIT

HONGKONG SHANGHAI BANKING CORPORATION

MYR 78,100.00

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

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

AUSTRALIA

ASIA

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

HEAVY INDUSTRIAL MACHINERY

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2014

2013

2011

2010

2009

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

80

80

80

80

70

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacture of heavy industrial machinery.

The Subject's related company is Terex Corporation, USA. Terex markets more than 50 diverse and well-respected brands, which cover a broad range of equipment for the construction, infrastructure, quarrying, recycling, mining, shipping, transportation, refining, utility, and maintenance industries.

The Subject undertakes assembly of heavy quarry machineries.

Besides that the Subject also sells the related spare parts and accessories.

The Subject provides repair and maintenance services for the machineries.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-56316199/56226185

Match

:

N/A

 

 

 

Address Provided by Client

:

(22037-K), LOT 53674, PERSIARAN, SUBANG, INDAH, SUNGAI, PENAGA INDUSTRIAL ESTATE, SUBANG JAYA, SENALGOR, MALAYSIA.

Current Address

:

LOT 53674, PERSIARAN SUBANG INDAH, SUNGAI PENAGA INDUSTRIAL ESTATE, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided is incomplete.


FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

24.51%

]

 

Return on Net Assets

:

Favourable

[

30.51%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

88 Days

]

 

Debtor Ratio

:

Favourable

[

10 Days

]

 

Creditors Ratio

:

Favourable

[

49 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

:

Acceptable

[

0.82 Times

]

 

Current Ratio

:

Unfavourable

[

1.26 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

:

Favourable

[

15.89 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 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 recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the Subject : STABLE

 

 

 

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

 

 

 

 

 




 

INDUSTRY ANALYSIS

 

MSIC CODE

28220 : Manufacture of metal-forming machinery and machine tools

 

 

INDUSTRY :

MACHINERY

 

 

 

Malaysia is presently the leading manufacturer of automation machinery and equipment (M&E) 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.

 

Growth of the domestic-oriented industries such as machinery and transportation equipment is expected to remain favourable in 2014, in line with resilient domestic consumption and robust private investment. However, the output of general-purpose machinery decreased 8.8% in the first seven moths of 2014 (January - July 2013: -1.8%) due to the decline in manufacture of air-conditioning machine (-17.9%) as well as lifting and handling equipment (-8.2%).

 

Besides, shipments of machinery, appliances and parts continued to expand rapidly by 12.5% in the first seven months of 2014 (January - July 2013: 1.4%) with stronger demand from Singapore, the US, China and Australia. Growth was mainly contributed by specialized machinery for specific industries (16.3%), particularly for civil engineering and manufacture of semiconductors as well as general industrial machinery and equipment (9.2%) such as heating and cooling equipment and parts as well as mechanical handling equipment and parts.

 

According to the World Bank's Doing Business 2014 Report, Malaysia improved to 15th from 25th position in the 2014 Foreign Direct Investment Confidence Index, with highlighted Malaysia's efforts in building its competitive position in electronics, automotive, and machinery manufacturing to move up the value chain into high technology and skill-intensive segments.

 

The Government has identified the M&E industry to be one of the key areas for growth and development. The growth will focus on the manufacture of high value-added and high technology M&E. For the further development of the M&E industry, six strategic thrusts have been set during the Third Industrial Master Plan (IMP3), 2006 - 2020 period:-

- Promoting Malaysia as a regional production, trading and distribution centre for M&E

- Rising the development and promotion of selected specialized and high technology M&E

- Strengthening the engineering support industries and support services

- Developing Malaysian Standards for machinery and equipment

- Developing sufficient highly skilled workforce

- Strengthening the institutional support for the further development of the industry

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth




 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1975, the Subject is a Private Limited company, focusing on manufacture of heavy industrial machinery. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. A paid up capital of MYR 776,621 allows the Subject to expand its business more comfortably. With a strong backing from its holding company, the Subject enjoys timely financial assistance should the needs arise.

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 80 employees in its business operations. The Subject has a good  management capability. Its capable management team has enabled the Subject to keep its business on going. Hence, the future prospect of the Subject is bright.

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. 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. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 24,062,717, 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 payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

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

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

 




 

PROFIT AND LOSS ACCOUNT

 

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

TEREX MALAYSIA 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

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

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

119,393,800

123,857,468

117,614,710

35,135,020

59,093,633

Other Income

510,267

170,637

52,861

1,185,722

-

 

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

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

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

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

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

Total Turnover

119,904,067

124,028,105

117,667,571

36,320,742

59,093,633

Costs of Goods Sold

(106,930,711)

(106,159,124)

(103,226,262)

(30,099,663)

-

 

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

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

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

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

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

Gross Profit

12,973,356

17,868,981

14,441,309

6,221,079

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

7,096,243

7,808,678

5,713,647

1,215,505

3,772,147

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

7,096,243

7,808,678

5,713,647

1,215,505

3,772,147

Taxation

(1,198,313)

(2,313,472)

(1,562,254)

(946,828)

(889,052)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

5,897,930

5,495,206

4,151,393

268,677

2,883,095

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

17,247,116

11,751,910

7,600,517

7,331,840

4,448,745

 

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

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

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

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

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

As restated

17,247,116

11,751,910

7,600,517

7,331,840

4,448,745

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

23,145,046

17,247,116

11,751,910

7,600,517

7,331,840

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

23,145,046

17,247,116

11,751,910

7,600,517

7,331,840

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Term loan / Borrowing

476,430

718,078

-

-

-

Others

-

-

26,993

-

-

 

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

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

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

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

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

 

476,430

718,078

26,993

-

-

 

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

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

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

 

 

 

 

 

BALANCE SHEET

 

 

TEREX MALAYSIA SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

7,355,888

6,990,907

6,845,737

6,660,501

6,191,782

 

 

 

 

 

 

Investments

-

-

10,002

10,002

-

Deferred assets

540,481

446,104

-

-

-

Others

10,002

10,002

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

550,483

456,106

10,002

10,002

10,002

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

7,906,371

7,447,013

6,855,739

6,670,503

6,201,784

 

 

 

 

 

 

Stocks

28,739,973

33,743,367

49,986,164

34,700,029

-

Trade debtors

3,188,749

6,235,024

3,724,246

2,594,860

-

Other debtors, deposits & prepayments

955,690

796,835

1,398,303

1,757,050

-

Amount due from holding company

2,883,362

3,590,520

2,033,564

3,382,646

-

Amount due from related companies

29,916,774

28,086,315

29,892,414

9,870,067

-

Cash & bank balances

16,458,146

19,641,887

14,536,245

7,789,370

-

Others

951,673

-

1,209,531

205,214

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

83,094,367

92,093,948

102,780,467

60,299,236

47,939,711

 

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

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

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

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

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

TOTAL ASSET

91,000,738

99,540,961

109,636,206

66,969,739

54,141,495

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

14,365,643

12,705,816

31,527,580

5,430,090

-

Other creditors & accruals

668,326

660,953

306,409

291,778

-

Hire purchase & lease creditors

-

32,452

46,486

43,318

-

Amounts owing to related companies

49,545,613

54,745,694

51,331,085

49,449,865

-

Provision for taxation

-

1,177,229

-

107,041

-

Dividends payable/proposed

-

-

1,600,000

1,600,000

-

Other liabilities

1,604,903

11,291,275

884,624

672,445

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

66,184,485

80,613,419

85,696,184

57,594,537

45,101,572

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

16,909,882

11,480,529

17,084,283

2,704,699

2,838,139

 

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

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

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

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

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

TOTAL NET ASSETS

24,816,253

18,927,542

23,940,022

9,375,202

9,039,923

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

500,000

500,000

500,000

500,000

500,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

500,000

500,000

500,000

500,000

500,000

 

 

 

 

 

 

Revaluation reserve

417,671

417,671

417,671

417,671

417,671

Retained profit/(loss) carried forward

23,145,046

17,247,116

11,751,910

7,600,517

7,331,840

 

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

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

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

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

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

TOTAL RESERVES

23,562,717

17,664,787

12,169,581

8,018,188

7,749,511

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

24,062,717

18,164,787

12,669,581

8,518,188

8,249,511

 

 

 

 

 

 

Hire purchase creditors

-

-

29,310

75,821

-

Deferred taxation

753,536

762,755

1,055,907

781,193

-

Others

-

-

10,185,224

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

753,536

762,755

11,270,441

857,014

790,412

 

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

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

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

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

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

 

24,816,253

18,927,542

23,940,022

9,375,202

9,039,923

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

TEREX MALAYSIA SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

16,458,146

19,641,887

14,536,245

7,789,370

-

Net Liquid Funds

16,458,146

19,641,887

14,536,245

7,789,370

-

Net Liquid Assets

(11,830,091)

(22,262,838)

(32,901,881)

(31,995,330)

2,838,139

Net Current Assets/(Liabilities)

16,909,882

11,480,529

17,084,283

2,704,699

2,838,139

Net Tangible Assets

24,816,253

18,927,542

23,940,022

9,375,202

9,039,923

Net Monetary Assets

(12,583,627)

(23,025,593)

(44,172,322)

(32,852,344)

2,047,727

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

32,452

75,796

119,139

-

Total Liabilities

66,938,021

81,376,174

96,966,625

58,451,551

45,891,984

Total Assets

91,000,738

99,540,961

109,636,206

66,969,739

54,141,495

Net Assets

24,816,253

18,927,542

23,940,022

9,375,202

9,039,923

Net Assets Backing

24,062,717

18,164,787

12,669,581

8,518,188

8,249,511

Shareholders' Funds

24,062,717

18,164,787

12,669,581

8,518,188

8,249,511

Total Share Capital

500,000

500,000

500,000

500,000

500,000

Total Reserves

23,562,717

17,664,787

12,169,581

8,018,188

7,749,511

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.25

0.24

0.17

0.14

-

Liquid Ratio

0.82

0.72

0.62

0.44

-

Current Ratio

1.26

1.14

1.20

1.05

1.06

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

88

99

155

360

-

Debtors Ratio

10

18

12

27

-

Creditors Ratio

49

44

111

66

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.01

0.01

-

Liabilities Ratio

2.78

4.48

7.65

6.86

5.56

Times Interest Earned Ratio

15.89

11.87

212.67

0.00

-

Assets Backing Ratio

49.63

37.86

47.88

18.75

18.08

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

5.94

6.30

4.86

3.46

6.38

Net Profit Margin

4.94

4.44

3.53

0.76

4.88

Return On Net Assets

30.51

45.05

23.98

12.97

41.73

Return On Capital Employed

30.51

44.97

23.93

12.91

41.73

Return On Shareholders' Funds/Equity

24.51

30.25

32.77

3.15

34.95

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.32

UK Pound

1

Rs.98.68

Euro

1

Rs.78.11

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.