MIRA INFORM REPORT

 

 

Report No. :

357152

Report Date :

31.12.2015

 

IDENTIFICATION DETAILS

 

Name :

DAIKIN MALAYSIA SDN. BHD.

 

 

Formerly Known As :

O.Y.L. MANUFACTURING COMPANY SDN. BHD.

SEMICON ADVANCED TECHNOLOGY (MALAYSIA) SDN BHD

NEW AVENUES SDN BHD

 

 

Registered Office :

Jalan Pengapit 15/19, 40000 Shah Alam, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

04.01.1984

 

 

Com. Reg. No.:

112531-W

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacture Of Single & Multiple Split Air-Conditioners & Packaged & Plant Air-Conditioning Equipment.

 

 

No. of Employee :

2,000 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration 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. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. As an oil and gas exporter, Malaysia has previously 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 strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is trying to lessen its dependence on state oil producer Petronas.

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB 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.

:

112531-W

COMPANY NAME

:

DAIKIN MALAYSIA SDN. BHD.

FORMER NAME

:

O.Y.L. MANUFACTURING COMPANY SDN. BHD. (15/12/2015)
SEMICON ADVANCED TECHNOLOGY (MALAYSIA) SDN BHD (21/12/1991)
NEW AVENUES SDN BHD (25/02/1984)

INCORPORATION DATE

:

04/01/1984

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

JALAN PENGAPIT 15/19, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 60334, PERSIARAN BUKIT RAHMAN PUTRA 3, TAMAN PERINDUSTRIAN BUKIT RAHMAN PUTRA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

TEL.NO.

:

03-61458600

FAX.NO.

:

03-61412286

EMAIL

:

ANGELINELEE@OYL.COM.MY

WEB SITE

:

WWW.OYL.COM.MY

CONTACT PERSON

:

KATSUHIKO TAKAGI ( DIRECTOR )

INDUSTRY CODE

:

28191

PRINCIPAL ACTIVITY

:

MANUFACTURE OF SINGLE & MULTIPLE SPLIT AIR-CONDITIONERS & PACKAGED & PLANT AIR-CONDITIONING EQUIPMENT

AUTHORISED CAPITAL

:

MYR 300,000,000.00 DIVIDED INTO
ORDINARY SHARE 299,998,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 2,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 276,254,567.00 DIVIDED INTO
ORDINARY SHARES 2 CASH AND 276,254,565 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 2,599,130,000 [2015]

NET WORTH

:

MYR 1,677,191,000 [2015]

M1000 OVERALL RANKING

:

158[2011]

M1000 INDUSTRY RANKING

:

5[2011]

STAFF STRENGTH

:

2,000 [2015]

BANKER (S)

:

HONG LEONG BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

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) manufacture of single & multiple split air-conditioners & packaged & plant air-conditioning equipment.

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

 

According to the Malaysia 1000 publication, the Subject's ranking are as follows:

 

 

YEAR

2011

2008

2005

2004

OVERALL RANKING

158

358

338

301

INDUSTRY RANKING

5

21

22

23

 

The immediate holding company of the Subject is DAIKIN INDUSTRIES LTD., a company incorporated in JAPAN.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/09/2014

MYR 300,000,000.00

MYR 276,254,567.00

16/05/2006

MYR 100,000,000.00

MYR 50,001,600.00

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

DAIKIN INDUSTRIES LTD.

UMEDA CENTER BUILDING, 4-12 NAKAZAKI-NISHI, 2-CHOME, KITA-KU OSAKA, 530-8323 JAPAN

XLZ00214313

276,254,567.00

100.00

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

------

276,254,567.00

100.00

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

=====

+ Also Director


Former Shareholder(s) :

Name

Country

IC/PP/Loc No

Shareholding

Last Updated

GROUP ASSOCIATED (C & L) SDN.BHD.

MALAYSIA

109719M

1,600.00

21/10/2009

O.Y.L. INDUSTRIES BHD.

MALAYSIA

17306W

276,254,567.00

21/10/2009

 

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

 

Local No

Country

Company

Status

(%)

As At

34543W

MALAYSIA

J & E HALL REFRIGERATION SDN. BHD.

-

100.00

26/11/2014

129688D

MALAYSIA

ACSON MALAYSIA SALES & SERVICE SDN. BHD.

-

100.00

26/11/2014

222359H

MALAYSIA

O.Y.L. RESEARCH & DEVELOPMENT CENTRE SDN. BHD.

-

100.00

31/07/2015

209388K

MALAYSIA

O.Y.L. TECHNOLOGY SDN. BHD.

-

100.00

14/12/2015

370237T

MALAYSIA

J & E HALL (MALAYSIA) SDN. BHD.

-

100.00

26/11/2014

347391P

MALAYSIA

MCQUAY (MALAYSIA) SDN. BHD.

-

100.00

26/11/2014

109719M

MALAYSIA

GROUP ASSOCIATED (C & L) SDN.BHD.

-

100.00

26/11/2014

137508X

MALAYSIA

AMERICAN AIR FILTER MANUFACTURING SDN. BHD.

-

100.00

03/03/2015

132332V

MALAYSIA

O.Y.L. STEEL CENTRE SDN. BHD.

-

75.00

10/03/2015

168496T

MALAYSIA

YORK (MALAYSIA) SALES & SERVICE SDN. BHD.

-

70.00

26/11/2014

31113U

MALAYSIA

YORK (MALAYSIA) MANUFACTURING SDN. BHD.

-

51.00

11/06/2015



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. OOI CHENG SUAN

Address

:

12, JALAN IBU KOTA 8, TAMAN IBU KOTA, GOMBAK, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Other Address(es)

:

JLN 5/60, SEKSYEN 5 SELATAN, BUKIT GASING, PETALING JAYA SELATAN, MALAYSIA.

New IC No

:

670213-02-5029

Date of Birth

:

13/02/1967

Nationality

:

MALAYSIAN

Date of Appointment

:

18/07/2013

 

DIRECTOR 2

 

Name Of Subject

:

YOSHIHIRO MINENO

Address

:

3-4-1-803, FURUEDAI, SUITA-SHI, OSAKA 565-0874, JAPAN.

Other Address(es)

:

NO.17-9-3, MONT KIARA PALMA, MAJESTIC TOWER, 9TH FLOOR, JALAN KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

TK3274849

Nationality

:

JAPANESE

Date of Appointment

:

10/03/2008

 

DIRECTOR 3

 

Name Of Subject

:

MR. BENNY LIOW WOON KHIN

Address

:

10, LEGENDA PUTERI 3, DAMANSARA LEGENDA, 46410 PETALING JAYA, SELANGOR, MALAYSIA.

Other Address(es)

:

19,JLN 31/79A, KOTA KEMUNING, SELANGOR, MALAYSIA.

IC / PP No

:

5197971

New IC No

:

570318-02-5879

Date of Birth

:

18/03/1957

Nationality

:

MALAYSIAN

Date of Appointment

:

22/06/2009

 

DIRECTOR 4

 

Name Of Subject

:

MS. CHEN VOON PING

Address

:

27, SS23/6B, TAMAN SEA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

Other Address(es)

:

JLN SS 23/6B, SS 23, DAMANSARA UTAMA, PETALING JAYA UTARA

IC / PP No

:

A0295788

New IC No

:

651225-07-5556

Date of Birth

:

25/12/1965

Nationality

:

MALAYSIAN

Date of Appointment

:

05/08/2015

 

DIRECTOR 5

 

Name Of Subject

:

CHING KHIM HUAT

Address

:

37, JALAN HITAM MANIS, 278451, SINGAPORE.

IC / PP No

:

E5435411F

Date of Appointment

:

05/08/2015

 

DIRECTOR 6

 

Name Of Subject

:

FANG YUAN

Address

:

FLAT G, 61/F, STAR SKY, THE CULLINAN, ELEMENTS, KOWLOON, HONGKONG

IC / PP No

:

G50673062

Date of Appointment

:

23/10/2015




MANAGEMENT

 

 

 

1)

Name of Subject

:

KATSUHIKO TAKAGI

Position

:

DIRECTOR

 

2)

Name of Subject

:

RAGHAVAN

Position

:

FINANCE MANAGER

 

3)

Name of Subject

:

OOI CHENG SUAN

Position

:

CHIEF OPERATING OFFICER

 

 

 

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE

Auditor' Address

:

MENARA LGB, 1 JALAN WAN KADIR, TAMAN TUN DR. ISMAIL, LEVEL 16, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. NG HENG KEE

IC / PP No

:

A0960438

New IC No

:

680205-10-6266

Address

:

83, JALAN WAWASAN 3/1, PUSAT BANDAR PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HONG LEONG BANK BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

26/01/1995

N/A

BANK OF AMERICA NT SA

-

Satisfied

 

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

:

YES

Percentage

:

40%

Overseas

:

YES

Percentage

:

60%

Import Countries

:

ASIA,EUROPE



The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

40%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

60%

Export Market

:

UNITED STATES

AUSTRALIA

SINGAPORE

MIDDLE EAST

ASIA

CANADA

UNITED KINGDOM

EUROPE

Credit Term

:

30 - 60 DAYS

Payment Mode

:

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

Type of Customer

:

AGENTS,DISTRIBUTORS

No of Customer

:

60

 

 

OPERATIONS

 

Products manufactured

:

SINGLE & MULTIPLE SPLIT AIR-CONDITIONERS & PACKAGED & PLANT AIR-CONDITIONING EQUIPMENT

Product Brand Name

:

ACSON, MC QUAY,YORK

Award

:

1 ) SPECIAL AWARD FOR INNOVATIVE PRODUCT BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2006
2 ) MS ISO 9002 Year :0

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMALL & MEDIUM ENTERPRISE

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

Ownership of premises

:

OWNED

Shifts

:

3

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

2,000

2000

2000

1,400

1,400

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacture of single & multiple split air-conditioners & packaged & plant air-conditioning equipment.

The Subject is under the OYL Industries Berhad which is engaged in the business of heating, ventilation, air-conditioning, refrigeration and air filtration.

The Group owns several major International brand names including McQuay ( heating, ventilation and air-conditioning), American Air Filters (air-filtration, machine intake, air pollution control), J&E Hall (refrigeration) and Acson (our home-grown air-conditioning brand).

The Subject produces a wide range of products which includes:

1) Wall mounted/ Exposed - 6 models

2) Ceiling convertible - has three models which are A, D & C series

3) Ceiling cassette

4) Ceiling concealed - has two models namely CC & CX

5) Static blower

6) Multi split condenser

The Subject produces air-conditioners in various type of sizes and models.

We were informed that the Subject's air-conditioners mainly for homes, offices, factories, hospitals and others.

The Subject is equipped with both automated and semi-automated machineries at the production site.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

03-61458500,

Current Telephone Number

:

03-61458600

Match

:

NO

Address Provided by Client

:

LOT 60334 PERSIARAN BUKIT RAHMAN PUTRA 3, TAMAM PERINDUSTRIAN BUKIT RAHMAN PUTRA 47000, SUNGAI BULOH, SELANGOR DARUL EHSAN MALAYSIA.

Current Address

:

LOT 60334, PERSIARAN BUKIT RAHMAN PUTRA 3, TAMAN PERINDUSTRIAN BUKIT RAHMAN PUTRA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 30th December 2015 we contacted one of the staff from the Subject and she provided some information.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Decreased

[

2013 - 2015

]

Profit/(Loss) Before Tax

:

Decreased

[

2013 - 2015

]

Return on Shareholder Funds

:

Acceptable

[

16.93%

]

Return on Net Assets

:

Acceptable

[

20.44%

]

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.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.

Liquidity

Current Ratio

:

Favourable

[

2.83 Times

]

The Subject was in good liquidity position with its current  liabilities  well covered by its current assets. With its net current assets, the Subject should be able to repay its short term obligations.

Solvency

Liability Ratio

:

Favourable

[

0.45 Times

]

A low liabilities ratio has minimised the Subject's financial risk.

Overall Assessment :

The Subject's performance deteriorated over the years with lower turnover and profit. 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 has a low liabilities ratio. It's liabilities were low and was not vulnerable to the financial risk.

Overall financial condition of the Subject : STRONG

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.0

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

4.7

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

82,480

85,258

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

3.2

4.0

Unemployment Rate

3.3

3.2

3.0

2.9

3.2

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

4.00

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

6.85

-

Business Loans Disbursed( % )

15.3

32.2

-

56.0

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

43,486.6

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

49,203

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

6.1

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

21,753

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

(17.7)

-

Registration of New Business ( No. )

284,598

324,761

329,895

332,723

-

Registration of New Business ( % )

5.0

14.0

2.0

1.0

-

Business Dissolved ( No. )

20,121

20,380

18,161

21,436

-

Business Dissolved ( % )

1.9

1.3

(10.9)

18.0

-

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

44.0

44.2

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

27.4

29.4

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

63.6

58.8

Credit Cards Spending ( % )

15.6

12.6

-

13.5

-

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)

1.0

0.7

0.7

2.8

Oil & Gas

(1.7)

-

-

3.0

-

Other Mining

-

-

-

46.6

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.4

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

5.3

Electrical & Electronics

(4.0)

12.7

6.9

13.3

7.9

Rubber Products

20.7

3.0

11.7

(0.3)

3.4

Wood Products

(5.1)

8.7

(2.7)

5.1

7.1

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

7.2

Domestic-oriented Industries

10.7

1.7

6.8

9.4

3.3

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

8.90

Chemical & Chemical Products

10.0

10.8

5.6

1.4

-

Plastic Products

3.8

-

-

2.7

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

3.6

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

7.2

Transport Equipment

12.0

3.4

13.8

22.9

7.6

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

13.0

-

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

28191 : Manufacture of refrigerating or freezing industrial 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

 

 


Incorporated in 1984, the Subject is a Private Limited company, focusing on manufacture of single & multiple split air-conditioners & packaged & plant air-conditioning equipment. 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 a large entity with strong capital position of SGD 276,254,567. We are confident with the Subject's business and its future growth prospect. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment.

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 large entity, the Subject has a steady workforce of 2,000 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. 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.

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 an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. A low liabilities ratio has minimised the Subject's financial risk. Given a positive net worth standing at MYR 1,677,191,000, the Subject should be able to maintain its business in the near terms.

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.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

The industry 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)

 

Financial Year End

2015-03-31

2014-03-31

2013-03-31

2011-12-31

2010-12-31

Months

12

12

15

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

NO

YES

YES

YES

YES

Financial Type

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

2,599,130,000

2,956,404,000

4,646,849,000

3,691,853,000

3,186,965,000

Other Income

-

45,026,000

73,753,000

42,108,000

49,681,000

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

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

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

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

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

Total Turnover

2,599,130,000

3,001,430,000

4,720,602,000

3,733,961,000

3,236,646,000

Costs of Goods Sold

-

(2,409,363,000)

(3,641,321,000)

(2,940,913,000)

(2,559,238,000)

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

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

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

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

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

Gross Profit

-

592,067,000

1,079,281,000

793,048,000

677,408,000

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

344,856,000

356,833,000

513,069,000

400,717,000

354,597,000

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

344,856,000

356,833,000

513,069,000

400,717,000

354,597,000

Taxation

(60,899,000)

(79,641,000)

(114,539,000)

(67,108,000)

(41,766,000)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

283,957,000

277,192,000

398,530,000

333,609,000

312,831,000

Minority interests

-

(8,147,000)

(12,312,000)

(7,506,000)

(11,268,000)

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

283,957,000

269,045,000

386,218,000

326,103,000

301,563,000

Extraordinary items

-

-

(181,519,000)

-

(574,000)

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

283,957,000

269,045,000

204,699,000

326,103,000

300,989,000

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

1,149,175,000

1,710,160,000

1,608,370,000

1,286,196,000

994,321,000

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

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

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

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

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

As restated

1,149,175,000

1,710,160,000

1,608,370,000

1,286,196,000

994,321,000

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,433,132,000

1,979,205,000

1,813,069,000

1,612,299,000

1,295,310,000

TRANSFER TO RESERVES - General

33,635,000

(510,093,000)

(6,220,000)

(3,929,000)

(9,114,000)

DIVIDENDS - Ordinary (paid & proposed)

(86,283,000)

(319,937,000)

(96,689,000)

-

-

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,380,484,000

1,149,175,000

1,710,160,000

1,608,370,000

1,286,196,000

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bankers' acceptance

-

-

304,000

479,000

476,000

Term loan / Borrowing

-

468,000

220,000

345,000

507,000

Others

-

218,000

537,000

443,000

1,805,000

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

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

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

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

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

-

686,000

1,061,000

1,267,000

2,788,000

-

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

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

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

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

DEPRECIATION (as per notes to P&L)

-

48,913,000

63,456,000

60,813,000

60,535,000

AMORTIZATION

-

207,000

614,000

555,000

569,000

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

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

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

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

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

-

49,120,000

64,070,000

61,368,000

61,104,000

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

336,897,000

321,718,000

465,011,000

491,079,000

434,681,000

Investments

-

52,182,000

43,304,000

42,963,000

55,000

Deferred assets

-

21,329,000

36,221,000

63,230,000

43,736,000

Others

-

13,844,000

22,337,000

25,643,000

29,445,000

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

55,000

87,355,000

101,862,000

131,836,000

73,236,000

Goodwill on consolidation

-

8,106,000

72,691,000

72,691,000

72,691,000

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

-

8,106,000

72,691,000

72,691,000

72,691,000

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

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

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

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

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

TOTAL LONG TERM ASSETS

336,952,000

417,179,000

639,564,000

695,606,000

580,608,000

Stocks

-

395,388,000

534,297,000

611,248,000

582,857,000

Trade debtors

-

320,152,000

329,438,000

551,226,000

454,290,000

Other debtors, deposits & prepayments

-

39,226,000

51,453,000

53,271,000

46,804,000

Short term deposits

-

490,169,000

689,585,000

474,792,000

534,335,000

Amount due from related companies

-

120,600,000

183,094,000

118,457,000

104,603,000

Cash & bank balances

-

288,627,000

457,688,000

468,548,000

294,484,000

Others

-

235,000

4,614,000

3,855,000

1,778,000

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

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

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

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

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

TOTAL CURRENT ASSETS

2,089,710,000

1,654,397,000

2,250,169,000

2,281,397,000

2,019,151,000

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

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

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

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

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

TOTAL ASSET

2,426,662,000

2,071,576,000

2,889,733,000

2,977,003,000

2,599,759,000

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

-

276,629,000

439,582,000

405,426,000

515,873,000

Other creditors & accruals

-

229,905,000

241,715,000

361,798,000

310,568,000

Short term borrowings/Term loans

-

9,234,000

9,284,000

844,000

5,370,000

Other borrowings

-

-

8,123,000

59,022,000

15,868,000

Bill & acceptances payable

-

-

570,000

-

11,414,000

Amounts owing to related companies

-

36,772,000

58,142,000

48,873,000

50,751,000

Provision for taxation

-

811,000

14,788,000

31,669,000

18,879,000

Other liabilities

-

60,805,000

72,103,000

85,268,000

68,608,000

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

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

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

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

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

TOTAL CURRENT LIABILITIES

739,546,000

614,156,000

844,307,000

992,900,000

997,331,000

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,350,164,000

1,040,241,000

1,405,862,000

1,288,497,000

1,021,820,000

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

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

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

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

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

TOTAL NET ASSETS

1,687,116,000

1,457,420,000

2,045,426,000

1,984,103,000

1,602,428,000

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

276,254,000

276,254,000

276,254,000

276,254,000

276,254,000

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

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

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

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

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

TOTAL SHARE CAPITAL

276,254,000

276,254,000

276,254,000

276,254,000

276,254,000

Exchange equalisation/fluctuation reserve

-

(580,000)

3,891,000

40,776,000

(10,767,000)

General reserve

-

2,321,000

21,240,000

30,682,000

21,555,000

Retained profit/(loss) carried forward

1,380,484,000

1,149,175,000

1,710,160,000

1,608,370,000

1,286,196,000

Capital redemption reserve

-

2,000

2,000

2,000

2,000

Others

13,227,000

-

-

-

-

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

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

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

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

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

TOTAL RESERVES

1,393,711,000

1,150,918,000

1,735,293,000

1,679,830,000

1,296,986,000

MINORITY INTEREST

7,226,000

18,710,000

25,503,000

21,882,000

22,680,000

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,677,191,000

1,445,882,000

2,037,050,000

1,977,966,000

1,595,920,000

Deferred taxation

-

4,682,000

2,617,000

409,000

235,000

Retirement benefits provision

-

6,856,000

5,759,000

5,728,000

6,273,000

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

9,925,000

11,538,000

8,376,000

6,137,000

6,508,000

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

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

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

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

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

1,687,116,000

1,457,420,000

2,045,426,000

1,984,103,000

1,602,428,000

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

-

778,796,000

1,147,273,000

943,340,000

828,819,000

Net Liquid Funds

-

778,796,000

1,146,703,000

943,340,000

817,405,000

Net Liquid Assets

1,350,164,000

644,853,000

871,565,000

677,249,000

438,963,000

Net Current Assets/(Liabilities)

1,350,164,000

1,040,241,000

1,405,862,000

1,288,497,000

1,021,820,000

Net Tangible Assets

1,687,116,000

1,449,314,000

1,972,735,000

1,911,412,000

1,529,737,000

Net Monetary Assets

1,340,239,000

633,315,000

863,189,000

671,112,000

432,455,000

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

-

357,519,000

514,130,000

401,984,000

357,385,000

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

-

406,639,000

578,200,000

463,352,000

418,489,000

BALANCE SHEET ITEMS

Total Borrowings

-

9,234,000

17,977,000

59,866,000

32,652,000

Total Liabilities

749,471,000

625,694,000

852,683,000

999,037,000

1,003,839,000

Total Assets

2,426,662,000

2,071,576,000

2,889,733,000

2,977,003,000

2,599,759,000

Net Assets

1,687,116,000

1,457,420,000

2,045,426,000

1,984,103,000

1,602,428,000

Net Assets Backing

1,677,191,000

1,445,882,000

2,037,050,000

1,977,966,000

1,595,920,000

Shareholders' Funds

1,677,191,000

1,445,882,000

2,037,050,000

1,977,966,000

1,595,920,000

Total Share Capital

276,254,000

276,254,000

276,254,000

276,254,000

276,254,000

Total Reserves

1,393,711,000

1,150,918,000

1,735,293,000

1,679,830,000

1,296,986,000

LIQUIDITY (Times)

Cash Ratio

-

1.27

1.36

0.95

0.83

Liquid Ratio

-

2.05

2.03

1.68

1.44

Current Ratio

2.83

2.69

2.67

2.30

2.02

WORKING CAPITAL CONTROL (Days)

Stock Ratio

-

49

42

60

67

Debtors Ratio

-

40

26

54

52

Creditors Ratio

-

42

44

50

74

SOLVENCY RATIOS (Times)

Gearing Ratio

-

0.01

0.01

0.03

0.02

Liabilities Ratio

0.45

0.43

0.42

0.51

0.63

Times Interest Earned Ratio

-

521.16

484.57

317.27

128.19

Assets Backing Ratio

6.11

5.25

7.14

6.92

5.54

PERFORMANCE RATIO (%)

Operating Profit Margin

13.27

12.07

11.04

10.85

11.13

Net Profit Margin

10.93

9.10

8.31

8.83

9.46

Return On Net Assets

20.44

24.53

25.14

20.26

22.30

Return On Capital Employed

20.35

24.09

23.98

19.34

21.05

Return On Shareholders' Funds/Equity

16.93

18.61

18.96

16.49

18.90

Dividend Pay Out Ratio (Times)

0.30

1.19

0.25

0

0

NOTES TO ACCOUNTS

Contingent Liabilities

-

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.42

UK Pound

1

Rs.98.55

Euro

1

Rs.72.60

MYR

1

Rs.15.39

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 


 

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.