MIRA INFORM REPORT

 

 

Report No. :

328424

Report Date :

26.06.2015

 

IDENTIFICATION DETAILS

 

Name :

TROX MALAYSIA SDN. BHD.

 

 

Formerly Known As :

TROX (MALAYSIA) SDN BHD

 

 

Registered Office :

Lot 20, Persiaran Bunga Tanjung (1), Kawasan Perindustrian Senawang, 70400 Seremban, Negeri Sembilan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

08.10.1993

 

 

Com. Reg. No.:

278360-V

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing and sale of air-conditioning components.

 

 

No. of Employee :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

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. 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 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 also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplied about 29% of government revenue in 2014. 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.

:

278360-V

COMPANY NAME

:

TROX MALAYSIA SDN. BHD.

FORMER NAME

:

TROX (MALAYSIA) SDN BHD (05/10/2006)

INCORPORATION DATE

:

08/10/1993

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LOT 20, PERSIARAN BUNGA TANJUNG (1), KAWASAN PERINDUSTRIAN SENAWANG, 70400 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

BUSINESS ADDRESS

:

20, PERSIARAN BUNGA TANJUNG 1, SENAWANG NEW INDUSTRIAL PARK, 70400 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

TEL.NO.

:

06-6788188

FAX.NO.

:

06-6788288

WEB SITE

:

WWW.TROXMAL.COM.MY

CONTACT PERSON

:

CHIN SIEW VOON ( EXECUTIVE DIRECTOR )

INDUSTRY CODE

:

28191

PRINCIPAL ACTIVITY

:

MANUFACTURING AND SALE OF AIR-CONDITIONING COMPONENTS

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 41,500,000.00 DIVIDED INTO
ORDINARY SHARES 14,000,000 CASH AND 27,500,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 50,027,988 [2013]

NET WORTH

:

MYR 29,046,532 [2013]

STAFF STRENGTH

:

N/A

BANKER (S)

:

CIMB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

 

HISTORY / BACKGROUND

 

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

 

The Subject is principally engaged in the (as a / as an) manufacturing and sale of air-conditioning components.

 

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 50,000,000.00

MYR 41,500,000.00

 

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

TROX GMBH, HRB 1071

HEINRICH-TROX-PLATZ, NEUKIRCHEN-VLUYN, 47506, GERMANY.

XLZ00216870

39,000,000.00

93.98

KEE HUP HOLDINGS BHD.

MALAYSIA

45866K

2,500,000.00

6.02

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

------

41,500,000.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS

DIRECTOR 1

 

Name Of Subject

:

DATO' TONG SO HAN

Address

:

7, JALAN 14/50, 46100 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

4672997

New IC No

:

540815-10-5629

Date of Birth

:

15/08/1954

Nationality

:

MALAYSIAN

Date of Appointment

:

24/03/1994

 

DIRECTOR 2

 

Name Of Subject

:

TORSTEN OTTO JAGDT

Address

:

RICHARD-WAGNER-STRASSE 21, MANNHEIM, 68165, GERMANY.

IC / PP No

:

600709879

Date of Appointment

:

20/12/2012

 

DIRECTOR 3

 

Name Of Subject

:

PIETER CORNELIUS JOOSTE

Address

:

21, TOP LAKE VIEW, 68 FURONG STREET, SIP SUZHOU, 215006, CHINA.

IC / PP No

:

M00029457

Date of Appointment

:

01/07/2003

 

DIRECTOR 4

 

Name Of Subject

:

PHILIP RICHARD LEA

Address

:

776, PERSIARAN LAVENDER HEIGHTS 22/3, LAVENDER HEIGHTS, SENAWANG, 70400 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

IC / PP No

:

761234949

Date of Appointment

:

01/07/2004

 

DIRECTOR 5

 

Name Of Subject

:

MR. GNANASAKARAN A/L RAJAPPAN

Address

:

38A, USJ 17/3C, SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

8258510

New IC No

:

570531-06-5415

Date of Birth

:

31/05/1957

Nationality

:

MALAYSIAN

Date of Appointment

:

24/12/2001

 

DIRECTOR 6

 

Name Of Subject

:

DR. DIRK MULLER

Address

:

52074, AACHEN, GALATERSTR 77, GERMANY.

IC / PP No

:

250456005

Date of Appointment

:

06/10/2011

 

DIRECTOR 7

 

Name Of Subject

:

MR. CHIN SIEW VOON

Address

:

832, JALAN LAVENDER HEIGHTS 23, TAMAN LAVENDER HEIGHTS, SENAWANG, 70400 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

IC / PP No

:

5358817

New IC No

:

580623-04-5007

Date of Birth

:

23/06/1958

Nationality

:

MALAYSIAN

Date of Appointment

:

01/07/2004

 

DIRECTOR 8

 

Name Of Subject

:

BERND WILHELM HUBER

Address

:

KREUTZKAMPSWIESE 23, SELM, 59379, MALAYSIA.

IC / PP No

:

575015685

Date of Appointment

:

01/04/2005

 

DIRECTOR 9

 

Name Of Subject

:

MICHAEL HEINRICH BAUER

Address

:

LAERCHENWEG 3, 74679 WEISSBACH, GERMANY.

IC / PP No

:

C8LNNZVV8

Date of Appointment

:

15/10/2014

 

DIRECTOR 10

 

Name Of Subject

:

GORDON CARL FLORES

Address

:

LOT 19, JALAN PINANG UTAMA, BEVERLY ROW BUNAGLOWS, IOI RESORT, 62502 PUTRAJAYA, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

420756245

Date of Appointment

:

15/10/2014




MANAGEMENT

 

 

1)

Name of Subject

:

CHIN SIEW VOON

Position

:

EXECUTIVE DIRECTOR

 

2)

Name of Subject

:

GNANASAKARAN

Position

:

FINANCE 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

:

MR. GNANASAKARAN A/L RAJAPPAN

IC / PP No

:

8258510

New IC No

:

570531-06-5415

Address

:

38A, USJ 17/3C, SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

27/12/1994

N/A

DEUTSCHE BANK MALAYSIA BERHAD

MYR 2,800,000.00

Satisfied

2

27/12/1994

LOAN AGREEMENT & DEBENTURE

SOUTHERN BANK BERHAD

MYR 4,200,000.00

Unsatisfied

3

20/01/1995

N/A

SOUTHERN BANK BERHAD

MYR 4,200,000.00

Satisfied

4

22/06/2001

DEBENTURE & 1ST PARTY CHARGE

BUMIPUTRACOMMERCE BANK BERHAD

MYR 8,000,000.00

Unsatisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

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

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

AIR CONDITIONING COMPONENTS

Product Brand Name

:

TROX

Member(s) / Affiliate(s)

:

SMALL & MEDIUM ENTERPRISE

Ownership of premises

:

OWNED

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing and sale of air-conditioning components.

The Subject is the manufacturing and trading of air-conditioning components.

The Subject is manufacturing air conditioning components which are air diffusers,air water systems,fire dampers and smoke detectors,control units and silencers and air filters and filters units.

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

60 6 6788 188-201

Current Telephone Number

:

06-6788188

Match

:

NO

Address Provided by Client

:

20 PERSIARAN BUNGA TG 1, SENAWANG NEW INDUSTRIAL PARK,70400,SEREMBAN,NEGERI SEMBILAN.

Current Address

:

20, PERSIARAN BUNGA TANJUNG 1, SENAWANG NEW INDUSTRIAL PARK, 70400 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 22nd June 2015 we contacted one of the staff from the Subject and he provided some information.

He refused to disclose the number of employees.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2013

]

Return on Shareholder Funds

:

Unfavourable

[

6.57%

]

Return on Net Assets

:

Unfavourable

[

5.22%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Liquidity

Current Ratio

:

Favourable

[

1.58 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

[

0.73 Times

]

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

Overall Assessment :

Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. 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

30.3

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

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 1993, the Subject is a Private Limited company, focusing on manufacturing and sale of air-conditioning components. 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. With a large issued and paid up capital of MYR 41,500,000 and strong backing from its shareholders, the Subject enjoys timely financial assistance should the needs arise. These favourable conditions has minimised its risk in the industry compared to other players.

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. 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.

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. 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. A low liabilities ratio has minimised the Subject's financial risk. Given a positive net worth standing at MYR 29,046,532, 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.

The industry shows an upward trend and this trend is very likely to sustain in the near terms.

Based on the above condition, we recommend credit be granted to the Subject normally.

 



PROFIT AND LOSS ACCOUNT

 

 

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

SUMMARY

SUMMARY

SUMMARY

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

50,027,988

49,699,067

40,224,777

29,721,051

51,316,779

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

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

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

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

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

Total Turnover

50,027,988

49,699,067

40,224,777

29,721,051

51,316,779

Costs of Goods Sold

-

-

-

(20,520,586)

(31,930,267)

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

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

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

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

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

Gross Profit

-

-

-

9,200,465

19,386,512

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

1,521,437

4,917,534

603,805

2,058,641

4,319,042

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,521,437

4,917,534

603,805

2,058,641

4,319,042

Taxation

385,533

(1,127,134)

(163,149)

166,291

4,211,219

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,906,970

3,790,400

440,656

2,224,932

8,530,261

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(14,360,438)

(18,150,838)

(18,591,494)

(20,816,426)

(29,346,687)

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

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

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

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

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

As restated

(14,360,438)

(18,150,838)

(18,591,494)

(20,816,426)

(29,346,687)

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(12,453,468)

(14,360,438)

(18,150,838)

(18,591,494)

(20,816,426)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(12,453,468)

(14,360,438)

(18,150,838)

(18,591,494)

(20,816,426)

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Hire purchase

-

-

-

5,038

5,038

Others

-

-

-

95,779

404,481

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

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

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

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

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

-

-

-

100,817

409,519

-

-

-

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

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

DEPRECIATION (as per notes to P&L)

-

-

-

738,215

676,749

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

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

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

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

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

-

-

-

738,215

676,749

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

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

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

 

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

16,809,100

15,869,149

11,586,634

11,786,260

11,538,969

Deferred assets

-

-

-

4,787,196

4,620,685

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

-

4,787,196

4,620,685

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

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

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

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

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

TOTAL LONG TERM ASSETS

16,809,100

15,869,149

11,586,634

16,573,456

16,159,654

Stocks

-

-

-

5,643,655

4,259,865

Trade debtors

-

-

-

6,574,020

7,695,106

Other debtors, deposits & prepayments

-

-

-

188,762

238,853

Amount due from related companies

-

-

-

1,494,301

873,276

Cash & bank balances

-

-

-

2,767,164

8,705,379

Others

-

-

-

-

220

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

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

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

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

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

TOTAL CURRENT ASSETS

33,476,754

21,200,220

25,839,249

16,667,902

21,772,699

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

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

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

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

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

TOTAL ASSET

50,285,854

37,069,369

37,425,883

33,241,358

37,932,353

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

-

-

-

2,252,514

1,208,462

Other creditors & accruals

-

-

-

6,900,336

8,821,621

Hire purchase & lease creditors

-

-

-

25,333

31,958

Amounts owing to related companies

-

-

-

820,724

1,284,054

Other liabilities

-

-

-

283,870

5,832,304

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

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

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

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

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

TOTAL CURRENT LIABILITIES

21,129,161

9,640,521

14,057,541

10,282,777

17,178,399

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

12,347,593

11,559,699

11,781,708

6,385,125

4,594,300

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

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

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

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

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

TOTAL NET ASSETS

29,156,693

27,428,848

23,368,342

22,958,581

20,753,954

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

41,500,000

41,500,000

41,500,000

41,500,000

41,500,000

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

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

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

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

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

TOTAL SHARE CAPITAL

41,500,000

41,500,000

41,500,000

41,500,000

41,500,000

Retained profit/(loss) carried forward

(12,453,468)

(14,360,438)

(18,150,838)

(18,591,494)

(20,816,426)

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

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

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

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

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

TOTAL RESERVES

(12,453,468)

(14,360,438)

(18,150,838)

(18,591,494)

(20,816,426)

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

29,046,532

27,139,562

23,349,162

22,908,506

20,683,574

Hire purchase creditors

-

-

-

50,075

70,380

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

110,161

289,286

19,180

50,075

70,380

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

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

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

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

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

29,156,693

27,428,848

23,368,342

22,958,581

20,753,954

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

-

-

-

2,767,164

8,705,379

Net Liquid Funds

-

-

-

2,767,164

8,705,379

Net Liquid Assets

12,347,593

11,559,699

11,781,708

741,470

334,435

Net Current Assets/(Liabilities)

12,347,593

11,559,699

11,781,708

6,385,125

4,594,300

Net Tangible Assets

29,156,693

27,428,848

23,368,342

22,958,581

20,753,954

Net Monetary Assets

12,237,432

11,270,413

11,762,528

691,395

264,055

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

-

-

-

2,159,458

4,728,561

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

-

-

-

2,897,673

5,405,310

BALANCE SHEET ITEMS

Total Borrowings

-

-

-

75,408

102,338

Total Liabilities

21,239,322

9,929,807

14,076,721

10,332,852

17,248,779

Total Assets

50,285,854

37,069,369

37,425,883

33,241,358

37,932,353

Net Assets

29,156,693

27,428,848

23,368,342

22,958,581

20,753,954

Net Assets Backing

29,046,532

27,139,562

23,349,162

22,908,506

20,683,574

Shareholders' Funds

29,046,532

27,139,562

23,349,162

22,908,506

20,683,574

Total Share Capital

41,500,000

41,500,000

41,500,000

41,500,000

41,500,000

Total Reserves

(12,453,468)

(14,360,438)

(18,150,838)

(18,591,494)

(20,816,426)

LIQUIDITY (Times)

Cash Ratio

-

-

-

0.27

0.51

Liquid Ratio

-

-

-

1.07

1.02

Current Ratio

1.58

2.20

1.84

1.62

1.27

WORKING CAPITAL CONTROL (Days)

Stock Ratio

-

-

-

69

30

Debtors Ratio

-

-

-

81

55

Creditors Ratio

-

-

-

40

14

SOLVENCY RATIOS (Times)

Gearing Ratio

-

-

-

0.00

0.00

Liabilities Ratio

0.73

0.37

0.60

0.45

0.83

Times Interest Earned Ratio

-

-

-

21.42

11.55

Assets Backing Ratio

0.70

0.66

0.56

0.55

0.50

PERFORMANCE RATIO (%)

Operating Profit Margin

3.04

9.89

1.50

6.93

8.42

Net Profit Margin

3.81

7.63

1.10

7.49

16.62

Return On Net Assets

5.22

17.93

2.58

9.41

22.78

Return On Capital Employed

5.22

17.93

2.58

9.40

22.75

Return On Shareholders' Funds/Equity

6.57

13.97

1.89

9.71

41.24

Dividend Pay Out Ratio (Times)

-

-

-

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

-

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.61

UK Pound

1

Rs.99.79

Euro

1

Rs.71.17

 

 

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.