|
|
REGISTRATION
NO.
|
:
|
811430-H
|
|
COMPANY NAME
|
:
|
BAHRU
STAINLESS SDN. BHD.
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION
DATE
|
:
|
27/03/2008
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
REGISTERED
ADDRESS
|
:
|
PTD 4069 (PLO
108), JALAN RUMBIA 4, TANJUNG LANGSAT INDUSTRIAL COMPLEX, 81700 PASIR
GUDANG, JOHOR, MALAYSIA.
|
|
BUSINESS
ADDRESS
|
:
|
PTD 4069 (PLO 108),
JALAN RUMBIA 4, TANJUNG LANGSAT INDUSTRIAL COMPLEX, 81700 PASIR GUDANG,
JOHOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
07-2546440
|
|
FAX.NO.
|
:
|
07-2513186
|
|
WEB SITE
|
:
|
WWW.ACERINOX.COM
|
|
CONTACT PERSON
|
:
|
LUCIEN MAURICE
MATTHEWS ( MANAGING DIRECTOR )
|
|
|
|
|
INDUSTRY CODE
|
:
|
24102 24102
|
|
PRINCIPAL
ACTIVITY
|
:
|
MANUFACTURING
OF STAINLESS STEEL AND OTHER METAL PRODUCTS, HARDWARE, WAREHOUSING
ACTIVITIES
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
1,151,600,000.00 DIVIDED INTO
ORDINARY SHARE 1,151,600.00 OF MYR 1,000.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
1,151,600,000.00 DIVIDED INTO
ORDINARY SHARES 1,151,600 CASH OF MYR 1,000.00 EACH.
|
|
|
|
|
SALES
|
:
|
MYR
791,083,000 [2013]
|
|
NET WORTH
|
:
|
MYR 986,374,000
[2013]
|
|
|
|
|
STAFF STRENGTH
|
:
|
100 [2015]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER
CHECK
|
:
|
CLEAR
|
|
FINANCIAL
CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT
CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
COMMERCIAL
RISK
|
:
|
MODERATE
|
|
CURRENCY
EXPOSURE
|
:
|
MODERATE
|
|
GENERAL
REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY
OUTLOOK
|
:
|
AVERAGE GROWTH
|
|
|
|
|
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 stainless steel
and other metal products, hardware, warehousing activities.
The Subject is
not listed on Bursa Malaysia (Malaysia Stock Exchange).
The immediate
and ultimate holding company of the Subject is ACERINOX, S. A., a company
incorporated in SPAIN.
Share Capital
History
|
Date
|
Authorised
Shared Capital
|
Issue &
Paid Up Capital
|
|
20/06/2013
|
MYR
1,151,600,000.00
|
MYR
1,151,600,000.00
|
|
01/11/2010
|
MYR
1,151,600,000.00
|
MYR 701,600,000.00
|
|
30/03/2009
|
MYR
551,600,000.00
|
MYR
397,000,000.00
|
|
24/12/2008
|
MYR
1,000,000,000.00
|
MYR
106,000,000.00
|
|
10/12/2008
|
MYR
1,000,000,000.00
|
MYR
16,000,000.00
|
|
27/03/2008
|
MYR 100,000.00
|
MYR 2.00
|
The major shareholder(s)
of the Subject are shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
ACERINOX, S.
A.
|
SANTIAGO DE
COMPOSTELA, 100, MADRID, 28035, SPAIN.
|
28250777
|
771,572.00
|
67.00
|
|
NISSHIN STEEL
CO. LTD.
|
4-1, MARUNOUCHI
3-CHOME, CHIYODA-KU, TOKYO, JAPAN.
|
0199-01-023784
|
345,480.00
|
30.00
|
|
METAL ONE
CORPORATION
|
CELESTINE
SHIBA MITSUI BUILDING, 3-23-1, SHIBA, MINATO-KU, TOKYO, 105-0014, JAPAN.
|
0104-01-049321
|
34,548.00
|
3.00
|
|
|
|
---------------
|
------
|
|
|
|
1,151,600.00
|
100.00
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTOR 1
|
Name Of
Subject
|
:
|
NAOTO
HIRAMATSU
|
|
Address
|
:
|
9, JALAN
RUMBIA, 11-14, THE IMPERIAL, 239620, SINGAPORE.
|
|
IC / PP No
|
:
|
MZ0715473
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
JAPANESE
|
|
Date of
Appointment
|
:
|
07/06/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of
Subject
|
:
|
MR. LUCIEN
MAURICE MATTHEWS
|
|
Address
|
:
|
170, JALAN MOLEK
2/17, TAMAN MOLEK, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.
|
|
IC / PP No
|
:
|
M00097633
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
AFRICAN
|
|
Date of
Appointment
|
:
|
18/11/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of
Subject
|
:
|
MR. BENJAMIN
RAMOS FLORES
|
|
Address
|
:
|
51, JALAN
PONDEROSA 1/10, TAMAN PONDEROSA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.
|
|
IC / PP No
|
:
|
XDA918292
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
SPANIARD
|
|
Date of
Appointment
|
:
|
27/03/2008
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of
Subject
|
:
|
BERNARDO
VELAZQUEZ HERREROS
|
|
Address
|
:
|
SOPELANA, 9,
CASA 4, MADRID, 28023, SPAIN.
|
|
IC / PP No
|
:
|
AAI151372
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
SPANIARD
|
|
Date of
Appointment
|
:
|
07/04/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 5
|
Name Of
Subject
|
:
|
MR. HIROYUKI
MIZUMOTO
|
|
Address
|
:
|
UNIT 14-E2,
BLOCK D, THE STRAITS, VIEW CONDOMINIUM, JALAN PERMAS, SELATAN, 81750 MASAI,
JOHOR, MALAYSIA.
|
|
IC / PP No
|
:
|
MZ0697921
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
JAPANESE
|
|
Date of
Appointment
|
:
|
16/04/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 6
|
Name Of
Subject
|
:
|
DANIEL TOMAS
AZPITARTE ZEMP
|
|
Address
|
:
|
C / JUAN DE HERRERA
14, 401, SAN SEBASTIAN DE LOS, REYES, MADRID, 28703, SPAIN.
|
|
IC / PP No
|
:
|
AAA159226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of
Appointment
|
:
|
19/06/2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
Name of
Subject
|
:
|
BENJAMIN RAMOS
FLORES
|
|
Position
|
:
|
MANAGING
DIRECTOR
|
|
|
|
|
|
2)
|
Name of
Subject
|
:
|
HIROYUKI
MIZUMOTO
|
|
Position
|
:
|
MANAGING
DIRECTOR
|
|
|
|
|
|
3)
|
Name of
Subject
|
:
|
LUCIEN MAURICE
MATTHEWS
|
|
Position
|
:
|
MANAGING DIRECTOR,
MANAGING DIRECTOR
|
|
|
|
|
|
Auditor
|
:
|
KPMG
|
|
Auditor'
Address
|
:
|
MENARA ANSAR,
65, JALAN TRUS, LEVEL 14, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.
|
|
|
|
|
|
|
|
1)
|
Company
Secretary
|
:
|
MS. JERRY YIN
WA
|
|
IC / PP No
|
:
|
A0397689
|
|
New IC No
|
:
|
660629-01-5634
|
|
Address
|
:
|
20, JALAN
MOLEK 3/16, TAMAN MOLEK, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN
BANKING BHD
|
|
|
|
|
|
|
|
|
No encumbrance was found in our databank at the time of investigation.
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.
|
|
|
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
|
[
|
|
]
|
|
|
|
|
|
|
|
Local
|
:
|
YES
|
|
Domestic
Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA
|
|
Credit Term
|
:
|
N/A
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
TELEGRAPHIC TRANSFER (TT)
|
|
Type of
Customer
|
:
|
STEEL INDUSTRY
|
|
No of Customer
|
:
|
N/A
|
|
|
|
|
|
|
|
Products
manufactured
|
:
|
|
|
|
|
|
Production
Line
|
:
|
N/A
|
|
Production
Capacity
|
:
|
|
|
Shifts
|
:
|
N/A
|
|
|
|
|
Total Number
of Employees:
|
|
|
YEAR
|
2015
|
2014
|
2013
|
2012
|
2011
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
COMPANY
|
100
|
100
|
100
|
100
|
150
|
|
|
|
|
Other Information:
The Subject is principally engaged in the (as a / as an) manufacturing of stainless
steel and other metal products, hardware, warehousing activities.
The Subject started its production in December 2010.
The Subject mainly focuses on cold rolled stainless steel sheets and other
metal product and hardware.
The Subject utilizes advanced automated and semi automated machinery to
ensure production of high quality products.
4 Sep 2012
KUB (M) Bhd's unit KUB Power Sdn Bhd has accepted a contract award from Bahru
Stainless Sdn Bhd for a project worth RM33.9 million.
In a filing to Bursa Malaysia today, KUB said the project to "Supply,
Install, Lay, Erect, Test and Commission A 275V Outdoor Conventional Single
Busbar Electrical System" is at the stainless steel integrated plant in
Tanjung Langsat, Pasir Gudang, Johor.
"The contract tenure is for a period of 365 days," it said, adding
it will contribute positively to the group‘s earnings and earnings per share
of KUB Group for the financial year ending Dec 31, 2012.
Latest fresh investigations
carried out on the Subject indicated that :
|
Telephone
Number Provided By Client
|
:
|
N/A
|
|
Current
Telephone Number
|
:
|
07-2546440
|
|
Match
|
:
|
N/A
|
|
|
|
|
Address
Provided by Client
|
:
|
PTD 4069
JOHOR.
|
|
Current
Address
|
:
|
PTD 4069 (PLO
108), JALAN RUMBIA 4, TANJUNG LANGSAT INDUSTRIAL COMPLEX, 81700 PASIR
GUDANG, JOHOR, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
Latest
Financial Accounts
|
:
|
YES
|
Other
Investigations
On 25th February 2015, we contacted one of the staff from the Subject and she
provided some information on the Subject.
The address provided is incomplete.
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Increased
|
[
|
2009 - 2013
|
]
|
|
|
Profit/(Loss)
Before Tax
|
:
|
Increased
|
[
|
2009 - 2013
|
]
|
|
|
Return on
Shareholder Funds
|
:
|
Unfavourable
|
[
|
(10.58%)
|
]
|
|
|
Return on Net
Assets
|
:
|
Unfavourable
|
[
|
(8.47%)
|
]
|
|
|
|
|
|
|
|
|
|
The Subject's turnover
increased steadily as the demand for its products / services increased due
to the goodwill built up over the years.Higher losses before tax during the
year could be due to the higher operating costs incurred. The Subject's
unfavourable returns on shareholders' funds indicate the management's
inefficiency in utilising its assets to generate returns.
|
|
|
|
|
|
|
|
|
Working
Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Favourable
|
[
|
55 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Unfavourable
|
[
|
81 Days
|
]
|
|
|
Creditors
Ratio
|
:
|
Favourable
|
[
|
23 Days
|
]
|
|
|
|
|
|
|
|
|
|
The Subject's
stocks were moving fast thus reducing its holding cost. This had reduced
funds being tied up in stocks. The high debtors' ratio could indicate that the
Subject was weak in its credit control. However, the Subject could also
giving longer credit periods to its customers in order to boost its sales
or to capture / retain its market share. 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
|
:
|
Unfavourable
|
[
|
0.21 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.27 Times
|
]
|
|
|
|
|
|
|
|
|
|
A low liquid
ratio means that the Subject may be facing working capital deficiency. If
the Subject cannot obtain additional financing or injection of fresh capital,
it may face difficulties in meeting its short term obligations.
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Unfavourable
|
[
|
(11.37 Times)
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.22 Times
|
]
|
|
|
|
|
|
|
|
|
|
The Subject
incurred losses in the year. It did not generate sufficient income to
service its interest. If the situation does not improve, the Subject
may be vulnerable to default in servicing the interest. 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 :
|
|
|
|
|
|
|
|
Although the
Subject's turnover increased its profits however showed a reverse trend. The
losses could be due to the management's failure to maintain its
competitiveness in the market. 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. The Subject's interest cover was negative,
indicating that it did not generate sufficient income to service its
interest. If its result does not show impressive improvements or succeed
obtaining short term financing or capital injection, it may not be able to
service its interest and repay the loans. 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 : POOR
|
|
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
|
|
MSIC CODE
|
|
24102 :
Production of bars and rods of stainless steel or other alloy steel
|
|
24102 :
Production of bars and rods of stainless steel or other alloy steel
|
|
|
|
INDUSTRY :
|
MANUFACTURING
|
|
|
|
|
The
manufacturing sector is expected to grow by 5.5% in 2015. It will be bolstered
by strong domestic and export-oriented industries in line with growing
investment activities and favorable external demand. Moreover, in 2014, the
manufacturing sectors have spearheading growth. The manufacturing sector is
estimated to grow at a faster pace in 2014 on higher exports of electronics
and electrical (E&E) products as external demand improves.
|
|
|
The
manufacturing sector expanded strongly during the first half of 2014, the
highest growth in three years, spurred by higher global semiconductor
sales. Value-added of the manufacturing sector expanded 7.1% during the
first half of 2014. Production of the sector rose 6.6% in the first seven
months of 2014 supported by resilient domestic demand and recovery in the
external sector during the first seven months of the years. The sales value
of manufactured products rebounded by 7.7% in the first seven months of
2014. The strong performance of the sector was on account of higher output
at 9.4% from the domestic-oriented industries, particularly transport
equipment, food and beverage.
|
|
|
The
manufacturing sector continued to attract domestic and foreign investment
with investment approved by Malaysian Investment Development Authority (MIDA)
totaling RM47.4 billion during the first six months of 2014, mainly from
Japan, China and Germany. Meanwhile, the capacity utilization rate remained
steady at 80.4% during the second quarter of 2014 while average wage per
employee and productivity improved to RM2,772 per month and 5.9%,
respectively during the first seven months of 2014. Boosted by favorable
domestic economic activity and recovery in the external sector, the
manufacturing sector is expected to record a better performance with growth
of 6.4% in 2014.
|
|
|
In the
meantime, production of wood products rebounded by 5.1% largely supported
by higher output in the saw-milling and planning of wood segment at 25.9%
during the first seven months of 2014. The positive performance was
attributed to vibrant residential and commercial construction activities
which contributed to increased use of timber frame and glued laminated
timber for cost savings compared to the use of concrete and steel.
Increased demand from major export destination such as the US, Japan and
Australia for Malaysian made furniture contributed to the higher output,
particularly wooden and cane furniture which rebounded by 2.2%.
|
|
|
Production of
rubber products contracted 0.3% in the first seven months of 2014 on
account of slower demand for rubber gloves and rubber tyres. The decline in
rubber tyres for vehicles was due to the weaker external demand from the
automotive industry, particularly from China. Output of other rubber
products contracted 3.8% following the product shift from rubber-based to
plastics, silicones and metal alloys in the manufacture of medical devices.
|
|
|
Besides,
exports of manufactured products are expected to grow 6.1% in 2014 boosted by
the growing demand from advanced economies. However, during the first seven
months of 2014, manufactured exports surged 11.4%. The robust growth was
buoyed by strengthening demand in the US and EU, reflecting significant
exposure of Malaysian exports to the economic performance in the advance
economies. The strength in export was broad-based with robust growth in
both E&E and non- E&E subsectors.
|
|
|
Under budget
2015, the Government will provide incentive in the form of capital
allowance on automation expenditure to encourage automation in the
manufacturing sector, which may help in the manufacturing sector.
|
|
|
|
OVERALL
INDUSTRY OUTLOOK : Average Growth
|
CREDIT RISK EVALUATION &
RECOMMENDATION
|
|
Incorporated in 2008, the Subject is a Private Limited company, focusing on
manufacturing of stainless steel and other metal products, hardware,
warehousing activities. Having been in business for more than 5 years, the
Subject has established a remarkable clientele base for itself which has
contributed to its business growth. Presently, the issued and paid up
capital of the Subject stands at MYR 1,151,600,000. The Subject have a
strong support from its holding company.
Over the years, the Subject has penetrated into both the local and overseas
market. The Subject has positioned itself in the global market and is
competing in the industry. Its stable clientele base will enable the
Subject to further enhance its business in the near term. Being a moderate
size company, the Subject has a total workforce of 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.
Despite the higher turnover, the Subject suffered pre-tax losses which
reflected a highly competitive business environment. 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. Being a lowly geared company, the
Subject is exposed to low financial risk as it is mainly dependent on its
internal funds to finance its business needs. Given a positive net worth
standing at MYR 986,374,000, the Subject should be able to maintain its
business in the near terms.
Without a strong assets backing, the Subject may face difficulties in
getting loans for its future expansion and continued growth .
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.
In view of the above, we recommend credit be granted to the Subject with
close monitoring.
|
|
|
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING
STANDARDS(FRS)
|
|
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
|
FULL
|
FULL
|
|
Currency
|
MYR
|
MYR
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
TURNOVER
|
791,083,000
|
535,403,000
|
74,789,000
|
-
|
-
|
|
Other Income
|
4,247,000
|
6,979,000
|
490,000
|
21,000
|
513,864
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
795,330,000
|
542,382,000
|
75,279,000
|
21,000
|
513,864
|
|
Costs of Goods
Sold
|
(823,973,000)
|
(593,293,000)
|
(82,565,000)
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
(28,643,000)
|
(50,911,000)
|
(7,286,000)
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
FROM OPERATIONS
|
(104,364,000)
|
(94,053,000)
|
(21,372,000)
|
(16,899,000)
|
(7,074,983)
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS)
BEFORE TAXATION
|
(104,364,000)
|
(94,053,000)
|
(21,372,000)
|
(16,899,000)
|
(7,074,983)
|
|
Taxation
|
0
|
136,000
|
(136,000)
|
(38,000)
|
(213,667)
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS)
AFTER TAXATION
|
(104,364,000)
|
(93,917,000)
|
(21,508,000)
|
(16,937,000)
|
(7,288,650)
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED
PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As previously
reported
|
(139,811,000)
|
(45,894,000)
|
(24,385,712)
|
(7,448,712)
|
(160,062)
|
|
Prior year
adjustment
|
-
|
-
|
(288)
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
(139,811,000)
|
(45,894,000)
|
(24,386,000)
|
(7,448,712)
|
(160,062)
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT
AVAILABLE FOR APPROPRIATIONS
|
(244,175,000)
|
(139,811,000)
|
(45,894,000)
|
(24,385,712)
|
(7,448,712)
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED
PROFIT/(LOSS) CARRIED FORWARD
|
(244,175,000)
|
(139,811,000)
|
(45,894,000)
|
(24,385,712)
|
(7,448,712)
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
INTEREST
EXPENSE (as per notes to P&L)
|
|
|
|
|
|
|
Others
|
8,437,000
|
8,843,000
|
214,000
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
8,437,000
|
8,843,000
|
214,000
|
-
|
-
|
|
=============
|
=============
|
=============
|
|
|
|
BAHRU
STAINLESS SDN. BHD.
|
|
ASSETS
EMPLOYED:
|
|
|
|
|
|
|
FIXED ASSETS
|
2,540,068,000
|
2,112,568,000
|
1,560,119,000
|
1,145,081,000
|
516,314,000
|
|
|
|
|
|
|
|
Computer
software
|
982,000
|
1,625,000
|
2,071,000
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL
INTANGIBLE ASSETS
|
982,000
|
1,625,000
|
2,071,000
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG
TERM ASSETS
|
2,541,050,000
|
2,114,193,000
|
1,562,190,000
|
1,145,081,000
|
516,314,000
|
|
|
|
|
|
|
|
Stocks
|
119,034,000
|
126,520,000
|
92,247,000
|
820,000
|
-
|
|
Trade debtors
|
174,849,000
|
144,490,000
|
-
|
-
|
-
|
|
Other debtors,
deposits & prepayments
|
47,310,000
|
45,850,000
|
45,926,000
|
43,033,000
|
323,000
|
|
Short term
deposits
|
4,841,000
|
111,031,000
|
189,921,000
|
236,910,000
|
50,019,000
|
|
Amount due
from holding company
|
10,000
|
27,000
|
443,000
|
289,000
|
132,000
|
|
Amount due
from related companies
|
66,415,000
|
73,281,000
|
28,134,000
|
221,000
|
38,000
|
|
Cash & bank
balances
|
104,318,000
|
39,619,000
|
23,657,000
|
20,717,000
|
20,706,000
|
|
Others
|
-
|
303,000
|
166,000
|
166,000
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT
ASSETS
|
516,777,000
|
541,121,000
|
380,494,000
|
302,156,000
|
71,218,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
3,057,827,000
|
2,655,314,000
|
1,942,684,000
|
1,447,237,000
|
587,532,000
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
Trade
creditors
|
52,534,000
|
19,451,000
|
3,902,000
|
-
|
-
|
|
Other
creditors & accruals
|
98,961,000
|
271,820,000
|
61,376,000
|
92,915,000
|
41,392,000
|
|
Hire purchase
& lease creditors
|
63,000
|
50,000
|
-
|
-
|
-
|
|
Short term
borrowings/Term loans
|
48,644,000
|
11,334,000
|
-
|
-
|
-
|
|
Other
borrowings
|
21,000,000
|
-
|
-
|
-
|
-
|
|
Amounts owing to
holding company
|
1,460,381,000
|
830,150,000
|
516,165,000
|
475,581,000
|
517,000
|
|
Amounts owing
to related companies
|
243,806,000
|
326,063,000
|
59,792,000
|
5,670,000
|
1,422,000
|
|
Provision for
taxation
|
-
|
-
|
-
|
-
|
50,000
|
|
Other liabilities
|
-
|
14,447,000
|
-
|
-
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT
LIABILITIES
|
1,925,389,000
|
1,473,315,000
|
641,235,000
|
574,166,000
|
43,381,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT
ASSETS/(LIABILITIES)
|
(1,408,612,000)
|
(932,194,000)
|
(260,741,000)
|
(272,010,000)
|
27,837,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET
ASSETS
|
1,132,438,000
|
1,181,999,000
|
1,301,449,000
|
873,071,000
|
544,151,000
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
|
Ordinary share
capital
|
1,151,600,000
|
1,151,600,000
|
1,151,600,000
|
701,600,000
|
551,600,000
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE
CAPITAL
|
1,151,600,000
|
1,151,600,000
|
1,151,600,000
|
701,600,000
|
551,600,000
|
|
|
|
|
|
|
|
Retained
profit/(loss) carried forward
|
(244,175,000)
|
(139,811,000)
|
(45,894,000)
|
(24,385,712)
|
(7,448,712)
|
|
Others
|
78,949,000
|
(11,326,000)
|
(18,503,000)
|
(18,266,288)
|
(288)
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
(165,226,000)
|
(151,137,000)
|
(64,397,000)
|
(42,652,000)
|
(7,449,000)
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS'
FUNDS/EQUITY
|
986,374,000
|
1,000,463,000
|
1,087,203,000
|
658,948,000
|
544,151,000
|
|
|
|
|
|
|
|
Long term
loans
|
145,930,000
|
181,339,000
|
199,616,000
|
194,386,000
|
-
|
|
Lease
obligations
|
134,000
|
197,000
|
-
|
-
|
-
|
|
Others
|
-
|
-
|
14,630,000
|
19,737,000
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG
TERM LIABILITIES
|
146,064,000
|
181,536,000
|
214,246,000
|
214,123,000
|
-
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
1,132,438,000
|
1,181,999,000
|
1,301,449,000
|
873,071,000
|
544,151,000
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
|
|
Cash
|
109,159,000
|
150,650,000
|
213,578,000
|
257,627,000
|
70,725,000
|
|
Net Liquid
Funds
|
109,159,000
|
150,650,000
|
213,578,000
|
257,627,000
|
70,725,000
|
|
Net Liquid
Assets
|
(1,527,646,000)
|
(1,058,714,000)
|
(352,988,000)
|
(272,830,000)
|
27,837,000
|
|
Net Current
Assets/(Liabilities)
|
(1,408,612,000)
|
(932,194,000)
|
(260,741,000)
|
(272,010,000)
|
27,837,000
|
|
Net Tangible
Assets
|
1,131,456,000
|
1,180,374,000
|
1,299,378,000
|
873,071,000
|
544,151,000
|
|
Net Monetary
Assets
|
(1,673,710,000)
|
(1,240,250,000)
|
(567,234,000)
|
(486,953,000)
|
27,837,000
|
|
BALANCE SHEET
ITEMS
|
|
|
|
|
|
|
Total Borrowings
|
215,771,000
|
192,920,000
|
199,616,000
|
194,386,000
|
0
|
|
Total
Liabilities
|
2,071,453,000
|
1,654,851,000
|
855,481,000
|
788,289,000
|
43,381,000
|
|
Total Assets
|
3,057,827,000
|
2,655,314,000
|
1,942,684,000
|
1,447,237,000
|
587,532,000
|
|
Net Assets
|
1,132,438,000
|
1,181,999,000
|
1,301,449,000
|
873,071,000
|
544,151,000
|
|
Net Assets
Backing
|
986,374,000
|
1,000,463,000
|
1,087,203,000
|
658,948,000
|
544,151,000
|
|
Shareholders'
Funds
|
986,374,000
|
1,000,463,000
|
1,087,203,000
|
658,948,000
|
544,151,000
|
|
Total Share
Capital
|
1,151,600,000
|
1,151,600,000
|
1,151,600,000
|
701,600,000
|
551,600,000
|
|
Total Reserves
|
(165,226,000)
|
(151,137,000)
|
(64,397,000)
|
(42,652,000)
|
(7,449,000)
|
|
LIQUIDITY
(Times)
|
|
|
|
|
|
|
Cash Ratio
|
0.06
|
0.10
|
0.33
|
0.45
|
1.63
|
|
Liquid Ratio
|
0.21
|
0.28
|
0.45
|
0.52
|
1.64
|
|
Current Ratio
|
0.27
|
0.37
|
0.59
|
0.53
|
1.64
|
|
WORKING
CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Stock Ratio
|
55
|
86
|
450
|
0
|
0
|
|
Debtors Ratio
|
81
|
99
|
0
|
0
|
0
|
|
Creditors
Ratio
|
23
|
12
|
17
|
0
|
0
|
|
SOLVENCY
RATIOS (Times)
|
|
|
|
|
|
|
Gearing Ratio
|
0.22
|
0.19
|
0.18
|
0.29
|
0.00
|
|
Liabilities
Ratio
|
2.10
|
1.65
|
0.79
|
1.20
|
0.08
|
|
Times Interest
Earned Ratio
|
(11.37)
|
(9.64)
|
(98.87)
|
0.00
|
0.00
|
|
Assets Backing
Ratio
|
0.98
|
1.02
|
1.13
|
1.24
|
0.99
|
|
PERFORMANCE
RATIO (%)
|
|
|
|
|
|
|
Operating
Profit Margin
|
(13.19)
|
(17.57)
|
(28.58)
|
0.00
|
0.00
|
|
Net Profit
Margin
|
(13.19)
|
(17.54)
|
(28.76)
|
0.00
|
0.00
|
|
Return On Net
Assets
|
(8.47)
|
(7.21)
|
(1.63)
|
(1.94)
|
(1.30)
|
|
Return On
Capital Employed
|
(8.46)
|
(7.20)
|
(1.62)
|
(1.94)
|
(1.30)
|
|
Return On
Shareholders' Funds/Equity
|
(10.58)
|
(9.39)
|
(1.98)
|
(2.57)
|
(1.34)
|
|
Dividend Pay Out
Ratio (Times)
|
0.00
|
0.00
|
0.00
|
0.00
|
0.00
|
|
NOTES TO
ACCOUNTS
|
|
|
|
|
|
|
Contingent
Liabilities
|
0
|
0
|
0
|
0
|
0
|
|