MIRA INFORM REPORT

 

 

Report No. :

325103

Report Date :

03.06.2015

 

IDENTIFICATION DETAILS

 

Name :

ALUMINIUM COMPANY OF MALAYSIA BHD

 

 

Formerly Known As :

ALCAN MALAYSIA BHD
ALCAN MALAYAN ALUMINIUM CO LTD
ALCAN MALAYAN ALUMINIUM CO SDN BHD

 

 

Registered Office :

3, Persiaran Waja, Kawasan Perindustrian Bukit Raja, 41050 Klang, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

18.07.1960

 

 

Com. Reg. No.:

3859-U

 

 

Legal Form :

Public

 

 

Line of Business :

Manufacturing of Aluminium Sheet and Foil Products.

 

 

No. of Employees :

350 [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 – 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.

:

3859-U

COMPANY NAME

:

ALUMINIUM COMPANY OF MALAYSIA BHD

FORMER NAME

:

ALCAN MALAYSIA BHD (20/04/1976)
ALCAN MALAYAN ALUMINIUM CO LTD
ALCAN MALAYAN ALUMINIUM CO SDN BHD

INCORPORATION DATE

:

18/07/1960

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PUBLIC

LISTED STATUS

:

YES

LISTED DATE

:

20/12/1969

REGISTERED ADDRESS

:

3, PERSIARAN WAJA, KAWASAN PERINDUSTRIAN BUKIT RAJA, 41050 KLANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

3, PERSIARAN WAJA, BUKIT RAJA INDUSTRIAL ESTATE, 41050 KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-33412311

FAX.NO.

:

03-33412793

WEB SITE

:

WWW.ALCOM.COM.MY

CONTACT PERSON

:

KOK WEE KIAT ( DIRECTOR )

INDUSTRY CODE

:

24202

PRINCIPAL ACTIVITY

:

MANUFACTURING OF ALUMINIUM SHEET AND FOIL PRODUCTS

AUTHORISED CAPITAL

:

MYR 200,000,000.00 DIVIDED INTO
ORDINARY SHARE 200,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 132,251,848.00 DIVIDED INTO
ORDINARY SHARES 132,251,848 CASH OF MYR 1.00 EACH.

SALES

:

MYR 259,169,000 [2014]

NET WORTH

:

MYR 176,858,000 [2014]

M1000 OVERALL RANKING

:

603[2009]

M1000 INDUSTRY RANKING

:

12[2009]

STAFF STRENGTH

:

350 [2015]

BANKER (S)

:

CITIBANK BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY/ BACKGROUND

 

As a public limited company, the Subject must have at least one shareholder but there is no limit on the maximum number of shareholders. The Subject must have at least two directors. A public 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, suing or be sued by other companies. The liabilities of the shareholders are only up 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 must file in its annual return, together with its financial statements with the Registrar of Companies. In Malaysia, all the companies seeking listing on the Bursa Malaysia (Malaysia Stock Exchange) must be public limited companies.

 

The Subject is principally engaged in the (as a / as an) manufacturing of aluminium sheet and foil products.

 

The Subject was listed on the Main Board of Bursa Malaysia Securities Bhd on 20/12/1969

 

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

 

 

YEAR

2009

2008

2005

2004

OVERALL RANKING

603

692

747

575

INDUSTRY RANKING

12

12

9

6

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/06/2014

MYR 200,000,000.00

MYR 132,251,848.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

NOVELIS INC.

-

4260139

78,234,054.00

59.16

MAYBANK NOMINEES (TEMPATAN) SDN. BHD. FOR PLEDGED SECURITIES ACCOUNT FOR ONG KOK THYE

-

258939H

1,196,300.00

0.90

MS. LEE YU YONG @ LEE YUEN YING

104, JALAN ATHINAHAPAN SATU, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

491002-05-5312 2008847

1,033,500.00

0.78

TOH KAM CHOY

171-14, SRI WANG SARIA CONDOMINIUM, JALAN ARA, BANGSAR, MALAYSIA.

340915-10-5419 2132334

1,029,000.00

0.78

LIM KIAN HUAT

11, JALAN PERISA 2, TAMAN GEMBIRA, KUCHAI LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

S0146959B

859,000.00

0.65

MR. YEOH AH TU

2A, CHANGKAT DATUK SULAIMAN 1, TTDI HILLS, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

510207-02-5265 7518222

742,200.00

0.56

PUBLIC NOMINEES (TEMPATAN) SDN. BHD. FOR PLEDGED SECURITIES ACCOUNT FOR ONG KOK THYE (E-SPI)

TB 304A & 304B, BLOCK 34, FAJAR COMPLEX, 91000 TAWAU, SABAH, MALAYSIA.

6464T

723,300.00

0.55

ADDEEN CONSULTANCY & MANAGEMENT SDN. BHD.

MALAYSIA

333030X

715,600.00

0.54

CHONG KOK FAH

124, JALAN BUNGA RAYA, EASTERN GARDEN, 83700 YONG PENG, JOHOR, MALAYSIA.

600422-01-5608 5858102

628,000.00

0.47

MR. YEOH KEAN HUA

25, MARKET STREET, 30000 IPOH, PERAK, MALAYSIA.

381021-08-5229

564,000.00

0.43

REMAINING SHAREHOLDERS

-

-

46,526,894.00

35.18

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

------

132,251,848.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

203469H

MALAYSIA

ALCOM NIKKEI SPECIALTY COATINGS SDN. BHD.

100.00

31/03/2014

523448D

MALAYSIA

AL DOTCOM SDN. BHD.

100.00

31/03/2014



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. HEON CHEE SHYONG

Address

:

31, JALAN ANGGERIK ARANDA 31/24, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

A0823101

New IC No

:

670930-10-5769

Date of Birth

:

30/09/1967

Nationality

:

MALAYSIAN

Date of Appointment

:

17/11/2014

 

DIRECTOR 2

 

Name Of Subject

:

MR. SHASHI KANT MAUDGAL

Address

:

SOMERSET PALACE SEOUL, 85, SUSONG-DONG, JUNGNO-GU, SEOUL, 110-885, SOUTH KOREA.

IC / PP No

:

Z2330563

Nationality

:

INDIAN

Date of Appointment

:

01/06/2012

 

DIRECTOR 3

 

Name Of Subject

:

Y.M. TENGKU YUNUS KAMARUDDIN

Address

:

PRICE WATERHOUSE, WISMA SIME DARBY, TINGKAT 5, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5989082

New IC No

:

401213-03-5133

Date of Birth

:

13/12/1940

Nationality

:

MALAYSIAN

Date of Appointment

:

27/12/2001

 

DIRECTOR 4

 

Name Of Subject

:

Y.A.M TUNKU IMRAN IBNI TUANKU JA'AFAR TAN SRI

Address

:

33, JALAN SEMANTAN 2, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5676668

New IC No

:

480321-05-5295

Date of Birth

:

21/03/1948

Nationality

:

MALAYSIAN

Date of Appointment

:

27/07/1987

 

DIRECTOR 5

 

Name Of Subject

:

MR. PAUL ALLEN STADNIKIA

Address

:

WILLOW 1902 HO, SK LEADER'S, VIEW NAMSAN, 206, HOEHYEON-DONG 1, GA, JOON-GU, SEOUL, 100-051, KOREA.

IC / PP No

:

473489849

Nationality

:

AMERICAN

Date of Appointment

:

01/06/2012

 

DIRECTOR 6

 

Name Of Subject

:

DATO' KOK WEE KIAT

Address

:

14, JALAN BALAU, BUKIT DAMANSARA, KUALA LUMPUR, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

0890430

New IC No

:

401106-05-5171

Date of Birth

:

06/11/1940

Nationality

:

MALAYSIAN

Date of Appointment

:

01/01/1996

 

DIRECTOR 7

 

Name Of Subject

:

JAMES F. MAKKI

Date of Appointment

:

27/05/2015


MANAGEMENT

 

 

 

1)

Name of Subject

:

KOK WEE KIAT

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1, SENTRAL, JALAN TRAVERS, KUALA LUMPUR CENTRAL, P.O.BOX 10192, LEVEL 15, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LAM LEE SAN

IC / PP No

:

A2855638

New IC No

:

740810-14-5740

Address

:

WISMA GOSEHEN, 60, 62 & 64, JALAN SS22/21, DAMANSARA JAYA, 2ND FLOOR, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

2)

Company Secretary

:

MS. LEE LAI FONG

IC / PP No

:

A2544372

New IC No

:

730809-14-5250

Address

:

47, JALAN USJ 11/2B, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CITIBANK BHD

 

2)

Name

:

MALAYAN BANKING BHD

 


 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

3

26/11/1981

N/A

SEE DOCUMENT

MYR 84,800,000.00

Satisfied

4

26/11/1981

N/A

SEE DOCUMENT

MYR 84,800,000.00

Satisfied

5

04/01/1982

N/A

SEE DOCUMENT

-

Satisfied

6

18/05/1983

N/A

MALAYAN BANKING BERHAD

MYR 9,500,000.00

Satisfied

7

18/05/1983

N/A

MALAYAN BANKING BERHAD

MYR 9,500,000.00

Satisfied

8

18/05/1983

N/A

THE BANK OF NOVA SCOTIABERHAD

MYR 11,500,000.00

Satisfied

9

18/05/1983

N/A

THE BANK OF NOVA SCOTIA BERHAD

MYR 11,500,000.00

Satisfied

10

18/05/1983

N/A

CITIBANK BERHAD

MYR 24,900,000.00

Satisfied

11

18/05/1983

N/A

CITIBANK BERHAD

MYR 24,900,000.00

Satisfied

12

18/05/1983

N/A

BANK BUMIPUTERA MALAYSIA BHD

MYR 5,000,000.00

Satisfied

13

18/05/1983

N/A

BANK BUMIPUTERA MALAYSIA BHD

MYR 5,000,000.00

Satisfied

14

18/05/1983

N/A

PERTANIAN BARING SANWA BHD

MYR 4,000,000.00

Satisfied

15

18/05/1983

N/A

PERTANIAN BARING SANWA BHD

MYR 4,000,000.00

Satisfied

16

16/08/1988

N/A

BANK BUMIPUTRA MALAYSIA BHD

MYR 6,000,000.00

Satisfied

17

01/09/1988

N/A

BUMIPUTRA MERCHANT BANKERS BHD

MYR 52,832,000.00

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

Overseas

:

YES

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

[

X

]

Good 31-60 Days

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

SINGAPORE

THAILAND

INDIA

TAIWAN

PHILIPPINES

BRUNEI DARUSSALAM

VIETNAM

JAPAN

CHINA

HONG KONG

MIDDLE EAST

AUSTRALIA

INDONESIA

JAPAN

PAKISTAN

SOUTH KOREA

UNITED KINGDOM

SRI LANKA

Credit Term

:

30 - 60 DAYS

Payment Mode

:

LETTER OF CREDIT (LC)
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

LICENCE MANUFACTURER WAREHOUSE (LMW),FREE TRADE ZONE (FTZ) COMPANIES

CUSTOMER(S)

:

1) GEORGE KENT (MALAYSIA) BHD

 

 

OPERATIONS

 

Products manufactured

:

ALUMINIUM SHEET AND FOIL PRODUCTS

Award

:

1 ) PRIME MINISTER QUALITY AWARD Year :2008
2 ) PRODUCT EXCELLENCE AWARD BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2008
3 ) OHSAS 18001 Year :2004
4 ) MS ISO 9001 : 2000 Year :2003
5 ) MS ISO 14001 Year :2001

Certification of Products

:

1) AASHTO M 180-89

Competitor(s)

:

SHOWA DENKO HD (MALAYSIA) SDN BHD

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

SMALL & MEDIUM ENTERPRISE

Ownership of premises

:

OWNED

Factory Size

:

12.1 HECTARES

Production Capacity

:

35,000 TONNES PER ANNUM

Shifts

:

3 (24 HOURS)

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011


GROUP

N/A

N/A

N/A

458

370

COMPANY

350

350

350

350

350

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of aluminium sheet and foil products.

The Subject (ALCOM) is widely known as the leader in aluminium rolled products in Malaysia and South East Asia. It is listed on the Kuala Lumpur Stock Exchange and a member of Novelis Inc., the world's largest manufacturer of aluminium rolled products. Products include:

* Foil
* Fin Stock
* Sheet
* Building Sheet


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that:

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-33412311

Match

:

N/A

Address Provided by Client

:

NO. 3, PERSIARAN WAJA, BUKIT RAJA INDUSTRIAL ESTATE,41050,KLANG,SELANGOR.

Current Address

:

3, PERSIARAN WAJA, BUKIT RAJA INDUSTRIAL ESTATE, 41050 KLANG, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


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


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2014

]

Return on Shareholder Funds

:

Unfavourable

[

(1.02%)

]

Return on Net Assets

:

Unfavourable

[

(1.21%)

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject could be more efficient in controlling its operating costs and had managed to reduce its losses during the year. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Acceptable

[

62 Days

]

Debtor Ratio

:

Favourable

[

33 Days

]

Creditors Ratio

:

Favourable

[

24 Days

]

The Subject kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Favourable

[

3.20 Times

]

Current Ratio

:

Favourable

[

4.94 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

:

Nil

[

0.00 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

Overall Assessment :

The Subject's turnover showed a volatile trend but its losses were lower when compared to the previous corresponding period. This could suggest that the Subject was more efficient in its operating cost control and was more competitive. 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 did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

Overall financial condition of the Subject : FAIR

 

 

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

24202 : Production of aluminium from alumina

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 1960, the Subject is a Public Listed company, focusing on manufacturing of aluminium sheet and foil products. 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 MYR 132,251,848. 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 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. The Subject is a fairly large and rapidly growing company with over 350 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to the Subject.

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 176,858,000, 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 . 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.

We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days.

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)

ALUMINIUM COMPANY OF MALAYSIA BHD

 

Financial Year End

2014-03-31

2013-03-31

2012-03-31

2011-03-31

2010-03-31

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

259,169,000

288,299,000

274,585,000

296,666,000

254,011,000

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

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

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

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

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

Total Turnover

259,169,000

288,299,000

274,585,000

296,666,000

254,011,000

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

(2,297,000)

(3,914,000)

2,412,000

7,979,000

6,785,000

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

(2,297,000)

(3,914,000)

2,412,000

7,979,000

6,785,000

Taxation

714,000

951,000

(725,000)

(1,829,000)

(1,096,000)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(1,583,000)

(2,963,000)

1,687,000

6,150,000

5,689,000

Pre-acquisition profit/(loss)

(223,000)

34,000

-

-

-

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

(1,806,000)

(2,929,000)

1,687,000

6,150,000

5,689,000

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

(1,806,000)

(2,929,000)

1,687,000

6,150,000

5,689,000

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

38,550,000

46,439,000

51,723,000

53,007,000

57,237,000

Prior year adjustment

-

(1,000)

468,000

5,000

-

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

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

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

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

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

As restated

38,550,000

46,438,000

52,191,000

53,012,000

57,237,000

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

36,744,000

43,509,000

53,878,000

59,162,000

62,926,000

DIVIDENDS - Ordinary (paid & proposed)

-

(4,959,000)

(7,439,000)

(7,439,000)

(9,919,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

36,744,000

38,550,000

46,439,000

51,723,000

53,007,000

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Others

-

-

308,000

352,000

383,000

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

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

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

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

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

-

-

308,000

352,000

383,000

-

-

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

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

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

DEPRECIATION (as per notes to P&L)

12,357,000

12,697,000

11,039,000

11,431,000

11,673,000

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

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

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

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

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

12,357,000

12,697,000

11,039,000

11,431,000

11,673,000

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

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

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

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

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

 

 

 

 

 

 

 

 

BALANCE SHEET

 

ALUMINIUM COMPANY OF MALAYSIA BHD

 

ASSETS EMPLOYED:

FIXED ASSETS

89,596,000

93,791,000

99,614,000

90,578,000

86,477,000

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

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

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

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

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

TOTAL LONG TERM ASSETS

89,596,000

93,791,000

99,614,000

90,578,000

86,477,000

Stocks

44,225,000

46,504,000

46,183,000

51,629,000

52,704,000

Trade debtors

23,490,000

35,443,000

35,466,000

34,373,000

35,561,000

Other debtors, deposits & prepayments

911,000

583,000

679,000

986,000

5,374,000

Short term deposits

45,117,000

30,549,000

36,084,000

48,485,000

41,345,000

Amount due from related companies

171,000

87,000

252,000

252,000

-

Cash & bank balances

10,584,000

5,519,000

723,000

2,880,000

1,223,000

Others

821,000

1,069,000

795,000

646,000

3,442,000

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

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

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

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

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

TOTAL CURRENT ASSETS

125,319,000

119,754,000

120,182,000

139,251,000

139,649,000

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

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

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

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

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

TOTAL ASSET

214,915,000

213,545,000

219,796,000

229,829,000

226,126,000

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

16,925,000

14,076,000

10,569,000

11,597,000

14,274,000

Other creditors & accruals

7,431,000

6,644,000

7,294,000

10,777,000

3,232,000

Amounts owing to related companies

999,000

409,000

60,000

14,000

225,000

Provision for taxation

-

-

-

758,000

-

Other liabilities

-

-

211,000

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

25,355,000

21,129,000

18,134,000

23,146,000

17,731,000

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

99,964,000

98,625,000

102,048,000

116,105,000

121,918,000

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

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

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

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

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

TOTAL NET ASSETS

189,560,000

192,416,000

201,662,000

206,683,000

208,395,000

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

134,331,000

134,331,000

134,331,000

134,331,000

134,331,000

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

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

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

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

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

TOTAL SHARE CAPITAL

134,331,000

134,331,000

134,331,000

134,331,000

134,331,000

RESERVES

Share premium

4,113,000

4,113,000

4,112,000

4,112,000

4,112,000

Revaluation reserve

-

-

-

2,138,000

2,138,000

Retained profit/(loss) carried forward

36,744,000

38,550,000

46,439,000

51,723,000

53,007,000

Capital redemption reserve

-

-

4,000,000

-

-

Others

1,670,000

1,670,000

(2,330,000)

-

-

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

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

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

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

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

TOTAL RESERVES

42,527,000

44,333,000

52,221,000

57,973,000

59,257,000

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

176,858,000

178,664,000

186,552,000

192,304,000

193,588,000

Deferred taxation

6,369,000

7,714,000

8,764,000

8,672,000

9,675,000

Retirement benefits provision

6,333,000

6,038,000

6,346,000

5,707,000

5,132,000

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

12,702,000

13,752,000

15,110,000

14,379,000

14,807,000

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

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

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

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

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

189,560,000

192,416,000

201,662,000

206,683,000

208,395,000

 

 

 

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

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

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

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

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

 

FINANCIAL RATIO

 

ALUMINIUM COMPANY OF MALAYSIA BHD

 

TYPES OF FUNDS

Cash

55,701,000

36,068,000

36,807,000

51,365,000

42,568,000

Net Liquid Funds

55,701,000

36,068,000

36,807,000

51,365,000

42,568,000

Net Liquid Assets

55,739,000

52,121,000

55,865,000

64,476,000

69,214,000

Net Current Assets/(Liabilities)

99,964,000

98,625,000

102,048,000

116,105,000

121,918,000

Net Tangible Assets

189,560,000

192,416,000

201,662,000

206,683,000

208,395,000

Net Monetary Assets

43,037,000

38,369,000

40,755,000

50,097,000

54,407,000

BALANCE SHEET ITEMS

Total Borrowings

0

0

0

0

0

Total Liabilities

38,057,000

34,881,000

33,244,000

37,525,000

32,538,000

Total Assets

214,915,000

213,545,000

219,796,000

229,829,000

226,126,000

Net Assets

189,560,000

192,416,000

201,662,000

206,683,000

208,395,000

Net Assets Backing

176,858,000

178,664,000

186,552,000

192,304,000

193,588,000

Shareholders' Funds

176,858,000

178,664,000

186,552,000

192,304,000

193,588,000

Total Share Capital

134,331,000

134,331,000

134,331,000

134,331,000

134,331,000

Total Reserves

42,527,000

44,333,000

52,221,000

57,973,000

59,257,000

LIQUIDITY (Times)

Cash Ratio

2.20

1.71

2.03

2.22

2.40

Liquid Ratio

3.20

3.47

4.08

3.79

4.90

Current Ratio

4.94

5.67

6.63

6.02

7.88

WORKING CAPITAL CONTROL (Days)

Stock Ratio

62

59

61

64

76

Debtors Ratio

33

45

47

42

51

Creditors Ratio

24

18

14

14

21

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

0.00

0.00

0.00

Liabilities Ratio

0.22

0.20

0.18

0.20

0.17

Times Interest Earned Ratio

0.00

0.00

8.83

23.67

18.72

Assets Backing Ratio

1.41

1.43

1.50

1.54

1.55

PERFORMANCE RATIO (%)

Operating Profit Margin

(0.89)

(1.36)

0.88

2.69

2.67

Net Profit Margin

(0.70)

(1.02)

0.61

2.07

2.24

Return On Net Assets

(1.21)

(2.03)

1.35

4.03

3.44

Return On Capital Employed

(1.21)

(2.03)

1.35

4.03

3.44

Return On Shareholders' Funds/Equity

(1.02)

(1.64)

0.90

3.20

2.94

Dividend Pay Out Ratio (Times)

0.00

1.69

4.41

1.21

1.74

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.83

UK Pound

1

Rs.97.10

Euro

1

Rs.69.74

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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.