MIRA INFORM REPORT

 

 

Report Date :

03.07.2014

 

IDENTIFICATION DETAILS

 

Name :

MSM METAL INDUSTRIES SDN. BHD.

 

 

Formerly Known As :

MANN SENG METAL INDUSTRIES SDN BHD

 

 

Registered Office :

Ssy Building @ Sentral, Level 2, 2a Jalan Usj Sentral 3, Usj Sentral, Persiaran Subang 1, 47620 Subang Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

13.05.1985

 

 

Com. Reg. No.:

139592-P

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

·         engaged in the manufacturing of Kitchen Equipment such as which include Speed Steamer & Electric Griddle & Food Processing Machinery. 

·         Subject is a manufacturer of Kitchen Equipment’s & Industry Equipment’s.

·         Subject is also involved in Engineering Works, Precision Metal Stamping and Metal Sheet Forming

·         Subject also Undertakes Stainless Steel for Kitchen in hotels.

·         Subject also Produces Gates for Houses & Companies 

 

Subject's business is divided into 2 lines;

1) Food service equipment
a) Standard & customized food service equipments.
b) Customized kitchen project.

2) Customized service
a) Metal fabrication
b) Laser cutting & Metal Sheet forming
c) Epoxy powder coating services

 

 

No of Employees :

100 [2014]

 

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 :

Unknown

 

 

Litigation :

Clear

 

NOTES :

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

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

malaysia ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 35% of government revenue in 2011. Bank Negera Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

 

 

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

139592-P

COMPANY NAME

:

MSM METAL INDUSTRIES SDN. BHD.

FORMER NAME

:

MANN SENG METAL INDUSTRIES SDN BHD (24/02/2004)

INCORPORATION DATE

:

13/05/1985

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SSY BUILDING @ SENTRAL, LEVEL 2, 2A JALAN USJ SENTRAL 3, USJ SENTRAL, PERSIARAN SUBANG 1, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 1909, JLN KPB5, KAWASAN PERINDUSTRIAN KAMPUNG BARU, 43300 BALAKONG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-89626618

FAX.NO.

:

03-89623353

EMAIL

:

MSM@MSMMGROUP.COM

WEB SITE

:

WWW.MSMMGROUP.COM

CONTACT PERSON

:

CHAN KEE SIENG ( MANAGING DIRECTOR )

INDUSTRY CODE

:

25

PRINCIPAL ACTIVITY

:

MANUFACTURING OF KITCHEN EQUIPMENT & FOOD PROCESSING MACHINERY

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 4,000,000.00 DIVIDED INTO 
ORDINARY SHARES 2,825,020 CASH AND 1,174,980 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 18,489,376 [2012]

NET WORTH

:

MYR 9,694,729 [2012]

STAFF STRENGTH

:

100 [2014]

BANKER (S)

:

OCBC BANK (MALAYSIA) BHD
PUBLIC BANK BHD
UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The Subject is principally engaged in the (as a / as an) manufacturing of kitchen equipment & food processing machinery.

 

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 5,000,000.00

MYR 4,000,000.00

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

MANN SENG METAL INTERNATIONAL LIMITED

80 ROBINSON ROAD, #02-00 SINGAPORE 068898

XLZ00215519

4,000,000.00

100.00

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

------

4,000,000.00

100.00

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

Name Of Subject

:

MR. CHAN WEN CHAU

Address

:

NO. 39, JALAN BUKIT MIDAH, TAMAN MIDAH, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A2857805

New IC No

:

740905-14-6033

Date of Birth

:

05/09/1974

Nationality

:

MALAYSIAN

Date of Appointment

:

18/03/2004

 

DIRECTOR 2

Name Of Subject

:

MS. LIM KOOI IM

Address

:

KG TASIK PERMAI, TASIK PERMAI, LEMBAH JAYA, 68000 AMPANG, SELANGOR, MALAYSIA.

IC / PP No

:

6002405

New IC No

:

600918-02-5236

Date of Birth

:

18/09/1960

Nationality

:

MALAYSIAN

Date of Appointment

:

12/04/1994

 

DIRECTOR 3

Name Of Subject

:

MR. CHAN KIT MOI

Address

:

NO.4, JALAN BS 10/1, TAMAN BUKIT SERDANG, SEKSYEN 10, 43300 BALAKONG, SELANGOR, MALAYSIA.

IC / PP No

:

4559714

New IC No

:

530327-10-5567

Date of Birth

:

27/03/1953

Nationality

:

MALAYSIAN

Date of Appointment

:

13/05/1985

 

DIRECTOR 4

Name Of Subject

:

MS. WONG SAU CHING

Address

:

39,JALAN BUKIT MIDAH, TAMAN MIDAH, 56100 KUALA LUMPUR, MALAYSIA.

IC / PP No

:

8010636

New IC No

:

520412-10-5714

Date of Birth

:

12/04/1952

Nationality

:

MALAYSIAN

Date of Appointment

:

12/04/1994

 

DIRECTOR 5

Name Of Subject

:

MR. CHAN KEE SIENG

Address

:

39, JALAN BUKIT MIDAH, TAMAN MIDAH, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

4256185

New IC No

:

520312-10-5573

Date of Birth

:

12/03/1952

Nationality

:

MALAYSIAN

Date of Appointment

:

13/05/1985



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHAN KEE SIENG

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

SSY PARTNERS

Auditor' Address

:

SSY BUILDING @ SENTRAL, LEVEL 1, 2A JALAN USJ SENTRAL 3, USJ SENTRAL, PERSIARAN SUBANG 1, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LEE HUEY PING

IC / PP No

:

A2546325

New IC No

:

731008-07-5058

Address

:

NO. 16, JALAN PUTRA PERMAI 10/3B, PUTRA HEIGHTS, 47650 SUBANG JAYA, SELANGOR, MALAYSIA.

 

2)

Company Secretary

:

MR. WONG MUN WAI

IC / PP No

:

5140225

New IC No

:

570415-10-6291

Address

:

20,JALAN SS 15/5G, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

OCBC BANK (MALAYSIA) BHD

 

2)

Name

:

PUBLIC BANK BHD

 

3)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

20/08/1997

N/A

OVERSEAS UNION BANK MALAYSIA BERHAD

MYR 950,000.00

Satisfied

2

16/05/2001

N/A

OCBC BANK MALAYSIA BERHAD

MYR 300,000.00

Satisfied

3

16/05/2001

N/A

OCBC BANK MALAYSIA BERHAD

MYR 480,000.00

Satisfied

4

16/05/2001

N/A

OCBC BANK MALAYSIA BERHAD

MYR 820,000.00

Satisfied

5

21/10/2002

N/A

OCBC BANK MALAYSIA BERHAD

MYR 7,870,000.00

Satisfied

6

21/10/2002

1ST LEGAL CHARGE

OCBC BANK MALAYSIA BERHAD

MYR 6,270,000.00

Satisfied

7

11/09/2003

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 1,950,000.00

Satisfied

8

11/09/2003

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 825,000.00

Satisfied

9

11/09/2003

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 3,000,000.00

Satisfied

10

28/02/2005

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 1,800,000.00

Satisfied

11

06/02/2006

N/A

PUBLIC BANK BHD

MYR 1,650,000.00

Satisfied

12

13/03/2006

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 1,700,000.00

Satisfied

13

13/03/2006

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 1,700,000.00

Satisfied

14

13/03/2006

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 1,430,000.00

Satisfied

15

13/03/2006

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 1,430,000.00

Satisfied

16

13/03/2006

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 1,940,000.00

Satisfied

17

13/03/2006

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 1,940,000.00

Satisfied

18

13/03/2006

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 5,000,000.00

Satisfied

19

13/03/2006

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 5,000,000.00

Satisfied

20

13/03/2006

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 1,250,000.00

Satisfied

21

09/07/2007

OPEN CHARGE

OCBC BANK (MALAYSIA) BHD

-

Satisfied

22

19/03/2008

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 2,000,000.00

Satisfied

23

19/03/2008

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 2,000,000.00

Satisfied

24

19/03/2008

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 2,000,000.00

Satisfied

25

10/12/2009

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

-

Satisfied

26

08/06/2010

OPEN CHARGE

PUBLIC BANK BHD

-

Unsatisfied

27

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 2,210,000.00

Unsatisfied

28

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 1,100,000.00

Unsatisfied

29

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 740,000.00

Unsatisfied

30

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 4,300,000.00

Unsatisfied

31

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 830,000.00

Unsatisfied

32

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 2,000,000.00

Unsatisfied

33

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 2,000,000.00

Unsatisfied

34

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 2,210,000.00

Unsatisfied

35

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 1,100,000.00

Unsatisfied

36

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 740,000.00

Unsatisfied

37

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 4,300,000.00

Unsatisfied

38

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 830,000.00

Unsatisfied

39

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 2,000,000.00

Unsatisfied

40

15/12/2010

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 2,000,000.00

Unsatisfied

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank against the Subject whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank. 

No winding up petition was found in our databank. 

 

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. 


No blacklisted record & debt collection case was found in our defaulters' databank. 

 

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

CHINA,KOREA

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

60%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

40%

Export Market

:

ASIA

EUROPE

UNITED STATES

SINGAPORE

THAILAND

Credit Term

:

30 DAYS

Payment Mode

:

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

Type of Customer

:

END USERS,WALK IN CUSTOMERS

 

 

OPERATIONS

 

Products manufactured

:

·         KITCHEN EQUIPMENT

·         FOOD PROCESSING MACHINERY

·         METAL FABRICATION

Product Brand Name

:

MSM

Award

:

1 ) SMALL MEDIUM BUSINESSES (SMB) RISING STARS AWARD BY SMI ASSOCIATION OF MALAYSIA Year :2005

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

MALAYSIA FOOD & BEVERAGE INDUSTRY

Ownership of premises

:

LEASED/RENTED

Shifts

:

3

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

100

120

100

100

110

 

Branch

:

NO

 

Other Information:

The Subject is principally engaged in the (as a / as an) manufacturing of kitchen equipment & food processing machinery. 

The Subject is a manufacturer of kitchen equipment’s, industry equipment’s, and others.

Besides, the Subject is also involved in engineering works, precision metal stamping and metal sheet forming

The Subject's business is divided into 2 lines;

1) Food service equipment

a) Standard & customized food service equipments.
b) Customized kitchen project.

2) Customized service

a) Metal fabrication
b) Laser cutting & Metal Sheet forming
c) Epoxy powder coating services

The Subject produces the kitchen equipments which include speed steamer & electric griddle

The Subject's marketing arm which is the related company; MSM Marketing Sdn Bhd, based in Kuala Lumpur.

The Subject has their own R & D Department to meet customers' requirements.

Most of the designs are custom-made.

According to the Subject, the demand for its kitchen equipment has good demand in the market.

The Subject also undertakes stainless steel for kitchen in hotels. Besides this, the Subject also produces gates for houses & companies 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

603 8962 6618

Current Telephone Number

:

03-89626618

Match

:

YES

Address Provided by Client

:

LOT 1909 JLN KPB 5 KAW. PERINDT KG. BARU BALAKONG 43300 SERI KEMBANGAN SELANGOR DARUL EHSAN

Current Address

:

LOT 1909, JLN KPB5, KAWASAN PERINDUSTRIAN KAMPUNG BARU, 43300 BALAKONG, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations

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

The given name MANN SENG METAL is the former name.

FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Decreased

[

2008 - 2012

]

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

Return on Shareholder Funds

:

Unfavourable

[

(5.05%)

]

Return on Net Assets

:

Unfavourable

[

(2.24%)

]

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject could be more efficient in controlling its operating costs and had managed to reduce its losses during the year. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

Liquidity

Current Ratio

:

Unfavourable

[

0.89 Times

]

Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject.

Solvency

Liability Ratio

:

Unfavourable

[

3.09 Times

]

The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

Overall Assessment :

Although the Subject's turnover decreased, its losses also decreased during the year. This could be the result of more efficient control in its operating costs. 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. The Subject's liabilities 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 : POOR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

* Estimate / Preliminary

** Forecast

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

 

INDUSTRY ANALYSIS

 

MSIC CODE

25 : MANUFACTURE OF FABRICATED METAL PRODUCTS EXCEPT MACHINERY AND EQUIPMENT 

INDUSTRY :

MANUFACTURING

The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domestic oriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand. 

Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first seven months of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domestic oriented industries continued to expand 8.6% while export-oriented industries grew 4.1%.

According to the Department of Statistics, the sales value of the Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion) to record RM52.4 billion as compared to RM48.8 billion reported in year 2012. Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2 billion) as compared with the preceding month. The sales value in December 2012 has been revised positive 7.5% year-on-year to record RM52.6 billion. 

Output of rubber products increased 3.6% in the first seven month of 2012 mainly supported by continuous demand for rubber gloves. Output of rubber gloves grew 5.9% on account of the expansion in the global healthcare industry and wider usage of gloves in other sectors. Similarly, output of catheters, especially for use in medical appliances, also registered a strong growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in tandem with slowing external demand from the automotive industry, especially China. 

Meanwhile, production of wood and wood products rebounded 4.6% largely supported by higher demand for wooden and cane furniture (33.5%). The positive performance was attributed to vibrant higher demand from major export destinations such as China and the United States (US) for Malaysian-made furniture. Demand from China accelerated further following the country’s rising income level and the implementation of zero import duty on Malaysian made-furniture. Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.

The output of chemicals and chemical products rose 9.9% in the first seven month of year 2012 on account of increasing demand for plastic products (11.8%) and basic chemicals (11.1%). External demand for plastic packaging materials surged during the early part of the year 2012, particularly from Japan and Thailand, as manufacturers resumed operations, which were interrupted by natural calamities and power outages. Chemical production are expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries. 

Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such assolar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

OVERALL INDUSTRY OUTLOOK : Average Growth

 


CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1985, the Subject is a Private Limited company, focusing on manufacturing of kitchen equipment & food processing machinery. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. The Subject is well backed by a listed company shareholders which would stimulate further growth for the Subject. Hence, the potential growth of the Subject is positive. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future. 

Over the years, the Subject has established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. Being a moderate size company, the Subject has a total workforce of 100 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. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to the Subject. 

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 9,694,729, the Subject should be able to maintain its business in the near terms. 

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources. 

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. 

 


PROFIT AND LOSS ACCOUNT

 

 

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

MSM METAL INDUSTRIES 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

SUMMARY

SUMMARY

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

18,489,376

22,517,993

40,703,098

27,344,290

34,110,048

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

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

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

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

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

Total Turnover

18,489,376

22,517,993

40,703,098

27,344,290

34,110,048

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

(400,538)

(487,537)

2,375,645

2,823,740

1,683,435

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

(400,538)

(487,537)

2,375,645

2,823,740

1,683,435

Taxation

(89,000)

348,135

(68,659)

(373,298)

(531,710)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(489,538)

(139,402)

2,306,986

2,450,442

1,151,725

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

6,184,267

6,673,669

4,766,952

2,496,510

1,344,785

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

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

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

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

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

As restated

6,184,267

6,673,669

4,766,952

2,496,510

1,344,785

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,694,729

6,534,267

7,073,938

4,946,952

2,496,510

DIVIDENDS - Ordinary (paid & proposed)

-

(350,000)

(400,269)

(180,000)

-

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

5,694,729

6,184,267

6,673,669

4,766,952

2,496,510

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

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

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

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

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

 

 

BALANCE SHEET

 

 

MSM METAL INDUSTRIES SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

15,039,231

15,753,263

14,506,209

18,657,353

13,679,941

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

5,279,727

5,292,654

5,220,601

0

7,014,523

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

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

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

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

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

TOTAL LONG TERM ASSETS

20,318,958

21,045,917

19,726,810

18,657,353

20,694,464

TOTAL CURRENT ASSETS

19,367,523

19,241,348

23,938,246

17,580,780

18,292,560

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

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

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

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

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

TOTAL ASSET

39,686,481

40,287,265

43,665,056

36,238,133

38,987,024

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

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

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

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

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

TOTAL CURRENT LIABILITIES

21,839,351

20,127,437

22,880,457

17,389,579

19,722,299

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

(2,471,828)

(886,089)

1,057,789

191,201

(1,429,739)

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

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

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

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

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

TOTAL NET ASSETS

17,847,130

20,159,828

20,784,599

18,848,554

19,264,725

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

4,000,000

4,000,000

4,000,000

4,000,000

4,000,000

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

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

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

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

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

TOTAL SHARE CAPITAL

4,000,000

4,000,000

4,000,000

4,000,000

4,000,000

Retained profit/(loss) carried forward

5,694,729

6,184,267

6,673,669

4,766,952

2,496,510

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

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

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

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

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

TOTAL RESERVES

5,694,729

6,184,267

6,673,669

4,766,952

2,496,510

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

9,694,729

10,184,267

10,673,669

8,766,952

6,496,510

LONG TERM LIABILITIES

-

-

-

10,081,602

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

8,152,401

9,975,561

10,110,930

10,081,602

12,768,215

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

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

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

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

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

17,847,130

20,159,828

20,784,599

18,848,554

19,264,725

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

MSM METAL INDUSTRIES SDN. BHD.

 

TYPES OF FUNDS

Net Liquid Assets

(2,471,828)

(886,089)

1,057,789

191,201

(1,429,739)

Net Current Assets/(Liabilities)

(2,471,828)

(886,089)

1,057,789

191,201

(1,429,739)

Net Tangible Assets

17,847,130

20,159,828

20,784,599

18,848,554

19,264,725

Net Monetary Assets

(10,624,229)

(10,861,650)

(9,053,141)

(9,890,401)

(14,197,954)

BALANCE SHEET ITEMS

Total Liabilities

29,991,752

30,102,998

32,991,387

27,471,181

32,490,514

Total Assets

39,686,481

40,287,265

43,665,056

36,238,133

38,987,024

Net Assets

17,847,130

20,159,828

20,784,599

18,848,554

19,264,725

Net Assets Backing

9,694,729

10,184,267

10,673,669

8,766,952

6,496,510

Shareholders' Funds

9,694,729

10,184,267

10,673,669

8,766,952

6,496,510

Total Share Capital

4,000,000

4,000,000

4,000,000

4,000,000

4,000,000

Total Reserves

5,694,729

6,184,267

6,673,669

4,766,952

2,496,510

LIQUIDITY (Times)

Current Ratio

0.89

0.96

1.05

1.01

0.93

SOLVENCY RATIOS (Times)

Liabilities Ratio

3.09

2.96

3.09

3.13

5.00

Assets Backing Ratio

4.46

5.04

5.20

4.71

4.82

PERFORMANCE RATIO (%)

Operating Profit Margin

(2.17)

(2.17)

5.84

10.33

4.94

Net Profit Margin

(2.65)

(0.62)

5.67

8.96

3.38

Return On Net Assets

(2.24)

(2.42)

11.43

14.98

8.74

Return On Capital Employed

(2.24)

(2.42)

11.43

14.98

8.74

Return On Shareholders' Funds/Equity

(5.05)

(1.37)

21.61

27.95

17.73

Dividend Pay Out Ratio (Times)

-

2.51

0.17

0.07

-





FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.97

UK Pound

1

Rs.102.89

Euro

1

Rs.82.02

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

MNL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

--

NB

                                       New Business

--

 

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

 

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

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

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

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