|
Report No. : |
317297 |
|
Report Date : |
18.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
DEMCO INDUSTRIES SDN. BHD. |
|
|
|
|
Registered Office : |
9-2b, Jalan Pju 1/3 D, Sunwaymas Commercial Centre, 47301 Petaling Jaya, Selangor |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
11.12.1981 |
|
|
|
|
Com. Reg. No.: |
78989-T |
|
|
|
|
Legal Form : |
Private Limited |
|
|
|
|
Line of Business : |
Subject is principally engaged in the manufacturing and marketing of
firefighting equipment and fire detectors. |
|
|
|
|
No. of Employees : |
Not Available |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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. Falling global oil
prices in the second half of 2014 have shrunk Malaysia’s current account
surplus and put downward pressure on the ringgit. 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.
Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade
agreement negotiations and, with the nine other ASEAN members, will form the
ASEAN Economic Community in 2015.
|
Source
: CIA |
EXECUTIVE
SUMMARY
|
|
REGISTRATION NO. |
: |
78989-T |
||||
|
COMPANY NAME |
: |
DEMCO INDUSTRIES SDN. BHD. |
||||
|
FORMER NAME |
: |
N/A |
||||
|
INCORPORATION DATE |
: |
11/12/1981 |
||||
|
COMPANY STATUS |
: |
EXIST |
||||
|
LEGAL FORM |
: |
PRIVATE LIMITED |
||||
|
LISTED STATUS |
: |
NO |
||||
|
REGISTERED ADDRESS |
: |
9-2B, JALAN PJU 1/3 D, SUNWAYMAS COMMERCIAL CENTRE, 47301 PETALING
JAYA, SELANGOR, MALAYSIA. |
||||
|
BUSINESS ADDRESS |
: |
LOT 3928, JALAN KERETAPI LAMA, OFF JALAN KAPAR 5 ½ MILES, 42100
KLANG, SELANGOR, MALAYSIA. |
||||
|
TEL.NO. |
: |
03-32903333 |
||||
|
FAX.NO. |
: |
03-32902288 |
||||
|
EMAIL |
: |
SALES@DEMCOALARM.COM |
||||
|
WEB SITE |
: |
WWW.DEMCOALARM.COM |
||||
|
CONTACT PERSON |
: |
CHAN ENG GUAN ( CEO ) |
||||
|
INDUSTRY CODE |
: |
26600 |
||||
|
PRINCIPAL ACTIVITY |
: |
MANUFACTURING AND MARKETING OF FIRE FIGHTING EQUIPMENT AND FIRE
DETECTORS |
||||
|
AUTHORISED CAPITAL |
: |
MYR 200,000.00 DIVIDED INTO |
||||
|
ISSUED AND PAID UP CAPITAL |
: |
MYR 175,004.00 DIVIDED INTO |
||||
|
SALES |
: |
MYR 6,723,605 [2013] |
||||
|
NET WORTH |
: |
MYR 4,863,702 [2013] |
||||
|
STAFF STRENGTH |
: |
N/A |
||||
|
||||||
|
LITIGATION |
: |
CLEAR |
||||
|
DEFAULTER CHECK |
: |
CLEAR |
||||
|
FINANCIAL CONDITION |
: |
STABLE |
||||
|
PAYMENT |
: |
GOOD |
||||
|
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
and marketing of fire fighting equipment and fire detectors.
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 200,000.00 |
MYR 175,004.00 |
|
14/05/1982 |
MYR 48,000.00 |
MYR 0.00 |
|
12/05/1982 |
MYR 27,000.00 |
MYR 0.00 |
The major shareholder(s) of the Subject are shown as follows :
Name |
Address |
IC/PP/Loc No |
Shareholding |
(%) |
|
MR. CHAN ENG GUAN + |
27, JALAN KAMPAR, OFF JALAN LANDASAN, 41300 KLANG, SELANGOR, MALAYSIA. |
660506-10-6835 A0402392 |
116,670.00 |
66.67 |
|
MR. CHAN WEI MENG + |
27, JALAN KAMPAR, OFF JALAN LANDASAN, 41300 KLANG, SELANGOR, MALAYSIA. |
340723-05-5269 4074046 |
58,334.00 |
33.33 |
|
--------------- |
------ |
|||
|
175,004.00 |
100.00 |
|||
|
============ |
===== |
+ Also Director
DIRECTORS
|
DIRECTOR 1
|
Name Of Subject |
: |
MR. CHAN WEI MENG |
|
Address |
: |
27, JALAN KAMPAR, OFF JALAN LANDASAN, 41300 KLANG, SELANGOR, MALAYSIA. |
|
IC / PP No |
: |
4074046 |
|
New IC No |
: |
340723-05-5269 |
|
Date of Birth |
: |
23/07/1934 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
10/09/2007 |
DIRECTOR 2
|
Name Of Subject |
: |
MR. CHAN ENG GUAN |
|
Address |
: |
27, JALAN KAMPAR, OFF JALAN LANDASAN, 41300 KLANG, SELANGOR, MALAYSIA. |
|
IC / PP No |
: |
A0402392 |
|
New IC No |
: |
660506-10-6835 |
|
Date of Birth |
: |
06/05/1966 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
12/09/2007 |
MANAGEMENT
|
|
1) |
Name of Subject |
: |
CHAN ENG GUAN |
|
Position |
: |
CEO |
|
|
2) |
Name of Subject |
: |
VIVIAN |
|
Position |
: |
ACCOUNTANT |
|
AUDITOR
|
|
Auditor |
: |
SANG & CO. |
|
Auditor' Address |
: |
46A, LORONG ANGSA, TAMAN BERKELEY, 41150 KLANG, SELANGOR, MALAYSIA. |
COMPANY
SECRETARIES
|
|
1) |
Company Secretary |
: |
MS. LAU CHIN LEE |
|
IC / PP No |
: |
A2805776 |
|
|
New IC No |
: |
740501-11-5214 |
|
|
Address |
: |
72, JALAN CENGAL PASIR, SIERRAMAS, 47000 PETALING JAYA, SELANGOR,
MALAYSIA. |
|
|
2) |
Company Secretary |
: |
MS. NG PHOOI YUEN |
|
IC / PP No |
: |
A0828529 |
|
|
New IC No |
: |
671205-10-5082 |
|
|
Address |
: |
18, JALAN SS 3/74, 47300 PETALING JAYA, SELANGOR, MALAYSIA. |
|
BANKING
|
Banking relations are maintained principally with :
|
1) |
Name |
: |
RHB BANK BHD |
|
2) |
Name |
: |
MALAYAN BANKING BHD |
|
3) |
Name |
: |
AFFIN BANK BERHAD |
ENCUMBRANCE
(S)
|
|
Charge No |
Creation Date |
Charge Description |
Chargee Name |
Total Charge |
Status |
|
1 |
12/06/1990 |
CHARGE |
MALAYAN BANKING BERHAD |
MYR 140,000.00 |
Satisfied |
|
2 |
22/06/2005 |
N/A |
AFFIN BANK BERHAD |
- |
Satisfied |
|
3 |
12/12/2006 |
MEMORANDUM OF DEPOSIT |
MALAYAN BANKING BHD |
MYR 20,000.00 |
Satisfied |
|
4 |
01/12/2008 |
THIRD PARTY FIRST LEGAL CHARGE |
RHB BANK BHD |
- |
Unsatisfied |
|
5 |
29/05/2009 |
LEGAL CHARGE |
CIMB BANK BERHAD |
MYR 350,000.00 |
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 its suppliers.
The Subject refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data we
conclude that :
|
OVERALL PAYMENT HABIT |
||||||||||||||
|
Prompt 0-30 Days |
[ |
] |
Good 31-60 Days |
[ |
X |
] |
Average 61-90 Days |
[ |
] |
|||||
|
Fair 91-120 Days |
[ |
] |
Poor >120 Days |
[ |
] |
|||||||||
CLIENTELE
|
|
Local |
: |
N/A |
|
Overseas |
: |
N/A |
The Subject refuse to disclose its clientele.
OPERATIONS
|
|
Products manufactured |
: |
|
||
|
Product Brand Name |
: |
|
||
|
Competitor(s) |
: |
B. BRAUN MEDICAL INDUSTRIES SDN BHD |
||
|
Member(s) / Affiliate(s) |
: |
THE ELECTRICAL AND ELECTRONICS ASSOCIATION OF MALAYSIA (TEEAM) MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE) |
||
|
Total Number of Employees: |
|
||||||||
|
YEAR |
2014 |
2012 |
2011 |
2010 |
|||||
|
GROUP |
52 |
52 |
52 |
52 |
|||||
|
COMPANY |
N/A |
0 |
0 |
0 |
|||||
|
Branch |
: |
NO |
Other Information:
The Subject is principally engaged in the (as a / as an) manufacturing and
marketing of fire fighting equipment and fire detectors.
The Subject's manufacturing company specializing in designing, developing
distribution and exporting of fire detection, fire alarm and fire fighting
products and accessories for use in commercial, industrial, institutional as
well as residential buildings.
The Subject Demco alarm bells are professionally designed to meet the needs of
fire fighting and detection system with central control equipment.
CURRENT
INVESTIGATION
|
Latest fresh investigations carried out on the Subject indicated that :
|
Telephone Number Provided By Client |
: |
N/A |
|
Current Telephone Number |
: |
03-32903333 |
|
Match |
: |
N/A |
|
Address Provided by Client |
: |
LOT 3928, JALAN KERETAPI LAMA, OFF JALAN KAPAR 5 1/2
MILES,42100,KLANG,SELANGOR. |
|
Current Address |
: |
LOT 3928, JALAN KERETAPI LAMA, OFF JALAN KAPAR 5 ½ MILES, 42100
KLANG, SELANGOR, MALAYSIA. |
|
Match |
: |
YES |
|
Latest Financial Accounts |
: |
YES |
Other Investigations
We contacted one of the staff from the Subject and he provided some
information.
He refused to disclose the number of employees.
FINANCIAL
ANALYSIS
|
|
Profitability |
||||||
|
Turnover |
: |
Increased |
[ |
2009 - 2013 |
] |
|
|
Profit/(Loss) Before Tax |
: |
Decreased |
[ |
2009 - 2013 |
] |
|
|
Return on Shareholder Funds |
: |
Unfavourable |
[ |
6.67% |
] |
|
|
Return on Net Assets |
: |
Unfavourable |
[ |
8.08% |
] |
|
|
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 unfavourable return on
shareholders' funds could indicate that the Subject was inefficient in
utilising its assets to generate returns. |
||||||
|
Working Capital Control |
||||||
|
Stock Ratio |
: |
Favourable |
[ |
45 Days |
] |
|
|
Debtor Ratio |
: |
Unfavourable |
[ |
159 Days |
] |
|
|
Creditors Ratio |
: |
Favourable |
[ |
34 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 Subject had a favourable creditors' ratio where the
Subject could be taking advantage of the cash discounts and also wanting to
maintain goodwill with its creditors. |
||||||
|
Liquidity |
||||||
|
Liquid Ratio |
: |
Favourable |
[ |
2.06 Times |
] |
|
|
Current Ratio |
: |
Favourable |
[ |
2.51 Times |
] |
|
|
A minimum liquid ratio of 1 should be maintained by the Subject in
order to assure its creditors of its ability to meet short term obligations and
the Subject was in a good liquidity position. Thus, we believe the Subject is
able to meet all its short term obligations as and when they fall due. |
||||||
|
Solvency |
||||||
|
Interest Cover |
: |
Acceptable |
[ |
3.58 Times |
] |
|
|
Gearing Ratio |
: |
Favourable |
[ |
0.71 Times |
] |
|
|
The Subject's interest cover was slightly low. If there is no sharp
fall in its profit or sudden increase in the interest rates, we believe the Subject
is able to generate sufficient income to service its interest and repay the
loans. The Subject was lowly geared thus it had a low financial risk. The
Subject was mainly financed by its shareholders' funds and internally
generated funds. In times of economic slowdown / downturn, the Subject being
a lowly geared company, will be able to compete better than those companies
which are highly geared in the same industry. |
||||||
|
Overall Assessment : |
||||||
|
The higher turnover had helped to reduce the Subject's losses. The
Subject was in good liquidity position with its total current liabilities
well covered by its total current assets. With its current net assets, the
Subject should be able to repay its short term obligations. The Subject had
an acceptable interest cover. If there is no sudden sharp increase in
interest rate or fall in the Subject's profit, we do believe the Subject is
able to generate sufficient cash flow to service its interest payment. The
Subject as a lowly geared company, will be more secured compared to those
highly geared companies. It has the ability to meet all its long term
obligations. |
||||||
|
Overall financial condition of the Subject : 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 |
|||||
|
# Based On Manufacturing Production Index |
|||||
INDUSTRY
ANALYSIS
|
|
MSIC CODE |
|
|
26600 : Manufacture of irradiation, electro medical and
electrotherapeutic equipment |
|
|
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
|
|
|
|
|
PROFIT
AND LOSS ACCOUNT
|
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN
FINANCIAL REPORTING STANDARDS(FRS) |
|
DEMCO INDUSTRIES SDN. BHD. |
|
Financial Year End |
2013-12-31 |
2012-12-31 |
2011-12-31 |
2010-12-31 |
2009-12-31 |
|
Months |
12 |
12 |
12 |
12 |
12 |
|
Consolidated Account |
Company |
Company |
Company |
Company |
Company |
|
Audited Account |
YES |
YES |
YES |
YES |
YES |
|
Unqualified Auditor's Report (Clean Opinion) |
YES |
YES |
YES |
YES |
YES |
|
Financial Type |
FULL |
FULL |
FULL |
SUMMARY |
SUMMARY |
|
Currency |
MYR |
MYR |
MYR |
MYR |
MYR |
|
TURNOVER |
6,723,605 |
5,116,895 |
4,323,284 |
3,897,876 |
3,831,882 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Total Turnover |
6,723,605 |
5,116,895 |
4,323,284 |
3,897,876 |
3,831,882 |
|
Costs of Goods Sold |
(4,713,319) |
(3,788,648) |
(3,097,357) |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Gross Profit |
2,010,286 |
1,328,247 |
1,225,927 |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) FROM OPERATIONS |
474,407 |
(79,010) |
(8,693) |
(922,498) |
153,372 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) BEFORE TAXATION |
474,407 |
(79,010) |
(8,693) |
(922,498) |
153,372 |
|
Taxation |
(150,094) |
20,209 |
(127,503) |
92,126 |
(71,199) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) AFTER TAXATION |
324,313 |
(58,801) |
(136,196) |
(830,372) |
82,173 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD |
|||||
|
As previously reported |
4,364,385 |
4,423,186 |
4,559,382 |
5,389,754 |
5,307,581 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
As restated |
4,364,385 |
4,423,186 |
4,559,382 |
5,389,754 |
5,307,581 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
4,688,698 |
4,364,385 |
4,423,186 |
4,559,382 |
5,389,754 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
4,688,698 |
4,364,385 |
4,423,186 |
4,559,382 |
5,389,754 |
|
============= |
============= |
============= |
============= |
============= |
|
|
INTEREST EXPENSE (as per notes to P&L) |
|||||
|
Hire purchase |
6,498 |
8,977 |
11,835 |
- |
- |
|
Term loan / Borrowing |
175,068 |
185,156 |
190,630 |
- |
- |
|
Others |
2,533 |
4,070 |
1,117 |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
184,099 |
198,203 |
203,582 |
- |
- |
|
|
============= |
============= |
============= |
- |
- |
|
|
DEPRECIATION (as per notes to P&L) |
309,510 |
286,506 |
295,970 |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
309,510 |
286,506 |
295,970 |
- |
- |
|
|
============= |
============= |
============= |
|||
|
|
|
|
|
|
|
BALANCE
SHEET
|
|
DEMCO INDUSTRIES SDN. BHD. |
|
ASSETS EMPLOYED: |
|||||
|
FIXED ASSETS |
5,364,699 |
5,396,835 |
5,496,961 |
5,237,519 |
5,425,046 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM ASSETS |
5,364,699 |
5,396,835 |
5,496,961 |
5,237,519 |
5,425,046 |
|
Stocks |
834,526 |
684,958 |
748,440 |
- |
- |
|
Trade debtors |
2,931,771 |
2,617,919 |
2,632,112 |
- |
- |
|
Other debtors, deposits & prepayments |
161,196 |
167,440 |
209,288 |
- |
- |
|
Cash & bank balances |
708,537 |
487,700 |
490,697 |
- |
- |
|
Others |
- |
25,305 |
67,582 |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT ASSETS |
4,636,030 |
3,983,322 |
4,148,119 |
3,888,794 |
4,984,661 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL ASSET |
10,000,729 |
9,380,157 |
9,645,080 |
9,126,313 |
10,409,707 |
|
============= |
============= |
============= |
============= |
============= |
|
|
CURRENT LIABILITIES |
|||||
|
Trade creditors |
434,812 |
405,169 |
572,073 |
- |
- |
|
Other creditors & accruals |
619,908 |
367,941 |
155,210 |
- |
- |
|
Hire purchase & lease creditors |
65,675 |
52,238 |
66,491 |
- |
- |
|
Short term borrowings/Term loans |
204,051 |
193,555 |
183,606 |
- |
- |
|
Amounts owing to director |
492,908 |
462,025 |
414,972 |
- |
- |
|
Provision for taxation |
30,747 |
- |
- |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT LIABILITIES |
1,848,101 |
1,480,928 |
1,392,352 |
751,074 |
964,986 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
NET CURRENT ASSETS/(LIABILITIES) |
2,787,929 |
2,502,394 |
2,755,767 |
3,137,720 |
4,019,675 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL NET ASSETS |
8,152,628 |
7,899,229 |
8,252,728 |
8,375,239 |
9,444,721 |
|
============= |
============= |
============= |
============= |
============= |
|
|
SHARE CAPITAL |
|||||
|
Ordinary share capital |
175,004 |
175,004 |
175,004 |
175,004 |
175,004 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL SHARE CAPITAL |
175,004 |
175,004 |
175,004 |
175,004 |
175,004 |
|
Retained profit/(loss) carried forward |
4,688,698 |
4,364,385 |
4,423,186 |
4,559,382 |
5,389,754 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL RESERVES |
4,688,698 |
4,364,385 |
4,423,186 |
4,559,382 |
5,389,754 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
SHAREHOLDERS' FUNDS/EQUITY |
4,863,702 |
4,539,389 |
4,598,190 |
4,734,386 |
5,564,758 |
|
Long term loans |
3,026,856 |
3,230,635 |
3,423,780 |
- |
- |
|
Hire purchase creditors |
149,952 |
89,478 |
141,716 |
- |
- |
|
Deferred taxation |
112,118 |
39,727 |
89,042 |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM LIABILITIES |
3,288,926 |
3,359,840 |
3,654,538 |
3,640,853 |
3,879,963 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
8,152,628 |
7,899,229 |
8,252,728 |
8,375,239 |
9,444,721 |
|
|
============= |
============= |
============= |
============= |
============= |
|
FINANCIAL
RATIO
|
|
DEMCO INDUSTRIES SDN. BHD. |
|
TYPES OF FUNDS |
|||||
|
Cash |
708,537 |
487,700 |
490,697 |
- |
- |
|
Net Liquid Funds |
708,537 |
487,700 |
490,697 |
- |
- |
|
Net Liquid Assets |
1,953,403 |
1,817,436 |
2,007,327 |
3,137,720 |
4,019,675 |
|
Net Current Assets/(Liabilities) |
2,787,929 |
2,502,394 |
2,755,767 |
3,137,720 |
4,019,675 |
|
Net Tangible Assets |
8,152,628 |
7,899,229 |
8,252,728 |
8,375,239 |
9,444,721 |
|
Net Monetary Assets |
(1,335,523) |
(1,542,404) |
(1,647,211) |
(503,133) |
139,712 |
|
PROFIT & LOSS ITEMS |
|||||
|
Earnings Before Interest & Tax (EBIT) |
658,506 |
119,193 |
194,889 |
- |
- |
|
Earnings Before Interest, Taxes, Depreciation And Amortization
(EBITDA) |
968,016 |
405,699 |
490,859 |
- |
- |
|
BALANCE SHEET ITEMS |
|||||
|
Total Borrowings |
3,446,534 |
3,565,906 |
3,815,593 |
- |
- |
|
Total Liabilities |
5,137,027 |
4,840,768 |
5,046,890 |
4,391,927 |
4,844,949 |
|
Total Assets |
10,000,729 |
9,380,157 |
9,645,080 |
9,126,313 |
10,409,707 |
|
Net Assets |
8,152,628 |
7,899,229 |
8,252,728 |
8,375,239 |
9,444,721 |
|
Net Assets Backing |
4,863,702 |
4,539,389 |
4,598,190 |
4,734,386 |
5,564,758 |
|
Shareholders' Funds |
4,863,702 |
4,539,389 |
4,598,190 |
4,734,386 |
5,564,758 |
|
Total Share Capital |
175,004 |
175,004 |
175,004 |
175,004 |
175,004 |
|
Total Reserves |
4,688,698 |
4,364,385 |
4,423,186 |
4,559,382 |
5,389,754 |
|
LIQUIDITY (Times) |
|||||
|
Cash Ratio |
0.38 |
0.33 |
0.35 |
- |
- |
|
Liquid Ratio |
2.06 |
2.23 |
2.44 |
- |
- |
|
Current Ratio |
2.51 |
2.69 |
2.98 |
5.18 |
5.17 |
|
WORKING CAPITAL CONTROL (Days) |
|||||
|
Stock Ratio |
45 |
49 |
63 |
- |
- |
|
Debtors Ratio |
159 |
187 |
222 |
- |
- |
|
Creditors Ratio |
34 |
39 |
67 |
- |
- |
|
SOLVENCY RATIOS (Times) |
|||||
|
Gearing Ratio |
0.71 |
0.79 |
0.83 |
- |
- |
|
Liabilities Ratio |
1.06 |
1.07 |
1.10 |
0.93 |
0.87 |
|
Times Interest Earned Ratio |
3.58 |
0.60 |
0.96 |
- |
- |
|
Assets Backing Ratio |
46.59 |
45.14 |
47.16 |
47.86 |
53.97 |
|
PERFORMANCE RATIO (%) |
|||||
|
Operating Profit Margin |
7.06 |
(1.54) |
(0.20) |
(23.67) |
4.00 |
|
Net Profit Margin |
4.82 |
(1.15) |
(3.15) |
(21.30) |
2.14 |
|
Return On Net Assets |
8.08 |
1.51 |
2.36 |
(11.01) |
1.62 |
|
Return On Capital Employed |
8.01 |
1.50 |
2.34 |
(11.01) |
1.62 |
|
Return On Shareholders' Funds/Equity |
6.67 |
(1.30) |
(2.96) |
(17.54) |
1.48 |
|
Dividend Pay Out Ratio (Times) |
0.00 |
0.00 |
0.00 |
- |
- |
|
NOTES TO ACCOUNTS |
|||||
|
Contingent Liabilities |
0 |
0 |
0 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.35 |
|
|
1 |
Rs.93.10 |
|
Euro |
1 |
Rs.67.13 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.