MIRA INFORM REPORT

 

 

Report No. :

343628

Report Date :

07.10.2015

 

IDENTIFICATION DETAILS

 

Name :

METTUBE SDN. BHD.

 

 

Registered Office :

The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Level 18, 59200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

15.05.1989

 

 

Com. Reg. No.:

181893-H

 

 

Legal Form :

Private Limited (Limited by Share)

 

 

Line of Business :

Manufacturing of Copper Tubes and Copper Alloys Mill Products.

 

 

No. of Employees :

400 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

 

The NAJIB administration is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. As an oil and gas exporter, Malaysia has previously profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is trying to lessen its dependence on state oil producer Petronas.

 

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

 

Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

181893-H

COMPANY NAME

:

METTUBE SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

15/05/1989

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

2, PERSIARAN KUALA LANGAT, SECTION 27, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-51023288

FAX.NO.

:

03-51915405

EMAIL

:

MARKETING@METTUBE.COM

WEB SITE

:

WWW.METTUBE.COM

CONTACT PERSON

:

RAGHVENDRA MITTAL ( MANAGING DIRECTOR )

INDUSTRY CODE

:

25119

PRINCIPAL ACTIVITY

:

MANUFACTURING OF COPPER TUBES AND COPPER ALLOYS MILL PRODUCTS

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 37,000,000.00 DIVIDED INTO
ORDINARY SHARES 37,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 1,101,618,204 [2014]

NET WORTH

:

MYR 261,469,214 [2014]

M1000 OVERALL RANKING

:

465[2011]

M1000 INDUSTRY RANKING

:

18[2011]

STAFF STRENGTH

:

400 [2015]

BANKER (S)

:

CIMB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY/ BACKGROUND

 

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

 

The Subject is principally engaged in the (as a/ as an) manufacturing of copper tubes and copper alloys mill products.

 

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

 

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

 

 

YEAR

2011

2009

2008

2005

2004

OVERALL RANKING

465

290

323

672

553

INDUSTRY RANKING

18

14

13

15

11

 

The ultimate holding company of the Subject is METDIST S.A., a company incorporated in PANAMA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

21/05/2013

MYR 50,000,000.00

MYR 37,000,000.00

13/12/1989

MYR 50,000,000.00

MYR 27,710,000.00

23/05/1989

MYR 50,000,000.00

MYR 2.00

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

METTUBE MALAYSIA HOLDINGS S.A

PANAMA

XLZ000008104

37,000,000.00

100.00

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

------

37,000,000.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

Status

(%)

As At

513445T

MALAYSIA

METTUBE INTERNATIONAL SDN. BHD.

-

100.00

15/04/2015

304147V

MALAYSIA

INFINITIVE GROWTH SDN. BHD.

Disolved

100.00

26/11/2014



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. RAGHVENDRA MITTAL

Address

:

C-11-1, HIJAUAN KIARA CONDOMINIUM, 6, JALAN KIARA 5, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

Z1799505

Nationality

:

INDIAN

Date of Appointment

:

30/06/2013

 

DIRECTOR 2

 

Name Of Subject

:

AJAY PURI

Address

:

D-6-1, HIJAUAN KIARA, 6 JALAN KIARA 5, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

Z1808638

Nationality

:

INDIAN

Date of Appointment

:

01/11/2011

 

DIRECTOR 3

 

Name Of Subject

:

MR. CHOOI TAT CHEW

Address

:

112, JALAN C1, TAMAN MELAWATI, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

0612777

New IC No

:

440515-08-5779

Date of Birth

:

15/05/1944

Nationality

:

MALAYSIAN

Date of Appointment

:

30/07/2014



MANAGEMENT

 

 

1)

Name of Subject

:

RAGHVENDRA MITTAL

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

SUKHVINDER

Position

:

FINANCE MANAGER

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN RAKYAT, KUALA LUMPUR SENTRAL, LEVEL 15, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. WONG WAI FOONG

IC / PP No

:

A0379022

New IC No

:

660510-10-6838

Address

:

1164, JALAN 17/46, HAPPY GARDEN, 46400 PETALING JAYA, SELANGOR, MALAYSIA.

 

2)

Company Secretary

:

MS. THAM WAI YING

IC / PP No

:

A1008639

New IC No

:

680810-10-6360

Address

:

46, JALAN MIDAH 19-A, TAMAN MIDAH, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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

26/07/1990

N/A

UNITED ASIAN BANK BHD

MYR 75,000,000.00

Satisfied

2

04/06/1993

N/A

BANK OF COMMERCE M BHD

-

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


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

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

AUSTRALIA

ASIA

SAUDI ARABIA

FRANCE

Credit Term

:

30 - 60 DAYS

Payment Mode

:

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

 

 

OPERATIONS

 

Products manufactured

:

COPPER TUBES AND COPPER ALLOYS MILL PRODUCTS

Product Brand Name

:

METTUBE

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

Ownership of premises

:

OWNED

Shifts

:

3 (24 HOURS)

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011


GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

400

400

400

400

400

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of copper tubes and copper alloys mill products.

The Subject produces three types of copper tubes which include:
1) Level Wound Coils
2) Straight Lengths
3) Pancake Coils

The Subject's products are mainly for air-conditioning and refrigeration industries.

The products are used in brands namely CARRIER, LG, YORK, ACSON, PANASONIC and others.

Besides that the Subject also has ventured into the production of electrical tubes for power station usage.

The Subject uitlizes the advanced automated and semi-automated machineries to ensure production of high quality products.


RECENT DEVELOPMENT


Live Mint, 20th September 2015


Debt laden Hotel Leelaventure Ltd that runs Leela chain of luxury hotels has entered into a so-called business transfer agreement to sell The Leela, Goa, to Malaysia-based conglomerate MetTube Sdn Bhd for Rs.725 crore. The property is being sold through Ceres Hotels Pvt. Ltd, a unit of MetTube. Leelaventure will continue to operate the hotel under Leela brand for a management fee. The Goa hotel is currently under the control of financial services conglomerate JM Financial Group’s asset reconstruction firm JM Financial Asset Reconstruction Co. Pvt. Ltd. With 206 guest rooms and suites, The Leela Goa, built in 1991, is spread across 50 acres at Cavelossim on Mobor beach in South Goa. It is one of the best performing hotels of the group.


Vivek Nair, chairman and managing director, Hotel Leelaventure, said the disinvestment is part of the company’s road map to pare down its debt. “The disinvestment of the Goa hotel and retaining the management of the hotel under the Leela brand is in line with our strategy to restructure our debt, follow an asset-light strategy and manage more hotels, Nair said. Apart from selling its assets, the company is also looking at multiple options, including partnering with private equity firms, to reduce its debt. This investment signifies the group’s confidence in building and growing businesses in India, said Raghav Mittal, president and chief executive officer, MetTube. On 2 March, Hotel Leelaventure announced plans to sell its properties in Goa and Chennai to cut debt. The company said it plans to divest select hotels while continuing to grow through managing and operating new hotels.

The Sun Daily, 30th September 2014


Two scrap metal traders pleaded not guilty in the Sessions Court here today to the charge of cheating a company managing director (MD) to issue a cheque for over RM1.8 million for the payment of electricity bill in March, this year. S. Mahendran, 35, and P. Krishnamoorthy, 48, made the plea after the charge was read to them before judge G. Ramesh. The charge was for abetting the owner of a company, Eagle Services & Solutions, Wan Mahrom Shah Wan Musa in cheating the MD of Mettube Sdn Bhd, Sukhvinder Singh, to believe that Eagle Services & Solutions could get a two per discount from Tenaga Nasional Berhad for Mettube's electricity bill. This prompted Sukhvinder Singh to hand over a cheque for RM1,847,573.18 for electricity bill payment to Eagle Services & Solutions.

 

Mahendran and Krishnamoorthy are accused of committing the offence at Mettube, No. 2, Persiaran Kuala Langat, Section 27, here on March 29, 2014. The charge is under Section 420 of the Penal Code which provides for a jail term of between one year and 10 years and whipping together with a fine. Judge Ramesh allowed the two accused bail of RM6,000 in one surety each and fixed Oct 17 for case mention.


DPP Raimi Mohd Ramli appeared for the prosecution, while Mahendran was represented by counsel Suzana Norlihan Alias and Krishnamoorthy by counsel V. Kumar. – Bernama



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

0351023288

Current Telephone Number

:

03-51023288

Match

:

YES

Address Provided by Client

:

2, PERSIARAN KUALA LANGAT, SECTION 27,40400,SHAH ALAM,SELANGOR.

Current Address

:

2, PERSIARAN KUALA LANGAT, SECTION 27, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


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


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2014

]

Return on Shareholder Funds

:

Unfavourable

[

3.84%

]

Return on Net Assets

:

Unfavourable

[

4.58%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Liquidity

Current Ratio

:

Acceptable

[

1.12 Times

]

The Subject has an adequate 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

:

Unfavourable

[

1.54 Times

]

The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

Overall Assessment :

The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. 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's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : LIMITED

 

 

 

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

3.2

4.0

Unemployment Rate

3.3

3.2

3.0

2.9

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

4.00

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

6.85

-

Business Loans Disbursed( % )

15.3

32.2

-

56.0

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

43,486.6

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

49,144

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

6.1

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

21,753

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

(17.7)

-

Registration of New Business ( No. )

284,598

324,761

329,895

332,723

-

Registration of New Business ( % )

5.0

14.0

2.0

1.0

-

Business Dissolved ( No. )

20,121

20,380

18,161

21,436

-

Business Dissolved ( % )

1.9

1.3

(10.9)

18.0

-

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

63.2

-

Credit Cards Spending ( % )

15.6

12.6

-

13.5

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-



INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

3.0

-

Other Mining

-

-

-

46.6

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.4

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

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

1.4

-

Plastic Products

3.8

-

-

2.7

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

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

-

-

13.0

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

25119 : Manufacture of other structural metal products

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 1989, the Subject is a Private Limited company, focusing on manufacturing of copper tubes and copper alloys mill 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 37,000,000. We are confident with the Subject's business and its future growth prospect. With a strong backing from its shareholders, the Subject enjoys timely financial assistance should the needs arise.

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 400 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.

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 managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 261,469,214, the Subject should be able to maintain its business in the near terms.

The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

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

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

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

 



PROFIT AND LOSS ACCOUNT

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

METTUBE SDN. BHD.

 

Financial Year End

2014-12-31

2013-12-31

2012-12-31

2011-12-31

2010-12-31

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

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

1,101,618,204

1,066,829,640

1,176,733,557

1,303,550,265

1,161,558,293

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

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

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

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

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

Total Turnover

1,101,618,204

1,066,829,640

1,176,733,557

1,303,550,265

1,161,558,293

Costs of Goods Sold

-

(1,005,814,114)

(1,108,953,427)

(1,219,805,672)

(1,087,628,287)

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

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

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

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

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

Gross Profit

-

61,015,526

67,780,130

83,744,593

73,930,006

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

12,050,234

11,641,114

14,836,202

11,471,399

10,750,371

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

-

4,595,875

30,836,062

-

-

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

12,050,234

16,236,989

45,672,264

11,471,399

10,750,371

Taxation

(2,003,333)

(2,303,423)

(2,325,671)

(1,584,199)

(1,791,217)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

10,046,901

13,933,566

43,346,593

9,887,200

8,959,154

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

218,392,571

209,269,005

153,038,297

148,355,213

144,576,059

Prior year adjustment

-

-

-

(24,116)

-

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

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

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

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

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

As restated

218,392,571

209,269,005

153,038,297

148,331,097

144,576,059

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

228,439,472

223,202,571

196,384,890

158,218,297

153,535,213

TRANSFER TO RESERVES - General

-

-

17,694,115

-

-

DIVIDENDS - Ordinary (paid & proposed)

(4,810,000)

(4,810,000)

(4,810,000)

(5,180,000)

(5,180,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

223,629,472

218,392,571

209,269,005

153,038,297

148,355,213

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Term loan / Borrowing

-

309,486

52,662

274,414

488,088

Others

-

11,430,605

12,059,283

11,496,722

9,257,747

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

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

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

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

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

-

11,740,091

12,111,945

11,771,136

9,745,835

-

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

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

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

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

 

 

 

BALANCE SHEET

 

METTUBE SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

91,282,671

98,265,113

106,784,610

98,998,179

106,127,771

Associated companies

-

124,956,939

121,489,312

-

-

Investments

-

-

-

21,019,123

21,019,123

Deferred assets

-

4,365,604

5,497,417

7,770,541

9,413,894

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

124,151,767

129,322,543

126,986,729

28,789,664

30,433,017

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

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

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

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

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

TOTAL LONG TERM ASSETS

215,434,438

227,587,656

233,771,339

127,787,843

136,560,788

Stocks

-

151,056,181

108,634,707

114,651,716

186,586,080

Trade debtors

-

261,618,594

281,481,677

272,700,850

291,390,181

Other debtors, deposits & prepayments

-

10,700,680

10,839,317

11,833,618

11,109,776

Short term deposits

-

-

121,000

2,855,250

-

Cash & bank balances

-

51,409,972

20,979,173

28,695,789

23,709,589

Others

-

34,851

892,426

882,089

390,000

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

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

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

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

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

TOTAL CURRENT ASSETS

449,251,219

474,820,278

422,948,300

431,619,312

513,185,626

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

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

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

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

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

TOTAL ASSET

664,685,657

702,407,934

656,719,639

559,407,155

649,746,414

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

-

57,589,099

38,337,352

36,402,307

68,075,426

Other creditors & accruals

-

7,246,706

8,042,924

5,822,386

11,521,126

Bank overdraft

-

376,740

352,911

868,083

2,396,883

Short term borrowings/Term loans

-

2,904,000

380,176

1,989,839

8,527,101

Other borrowings

-

372,073,297

361,245,053

319,106,243

372,398,489

Provision for taxation

-

146,940

-

-

46,069

Dividends payable/proposed

-

-

-

5,180,000

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

401,755,882

440,336,782

408,358,416

369,368,858

462,965,094

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

47,495,337

34,483,496

14,589,884

62,250,454

50,220,532

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

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

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

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

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

TOTAL NET ASSETS

262,929,775

262,071,152

248,361,223

190,038,297

186,781,320

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

37,000,000

37,000,000

37,000,000

37,000,000

37,000,000

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

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

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

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

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

TOTAL SHARE CAPITAL

37,000,000

37,000,000

37,000,000

37,000,000

37,000,000

Exchange equalisation/fluctuation reserve

839,742

1,337,142

191,335

-

-

Retained profit/(loss) carried forward

223,629,472

218,392,571

209,269,005

153,038,297

148,355,213

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

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

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

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

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

TOTAL RESERVES

224,469,214

219,729,713

209,460,340

153,038,297

148,355,213

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

261,469,214

256,729,713

246,460,340

190,038,297

185,355,213

Long term loans

-

4,364,561

1,900,883

-

1,396,906

Deferred taxation

-

976,878

-

-

29,201

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,460,561

5,341,439

1,900,883

-

1,426,107

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

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

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

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

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

262,929,775

262,071,152

248,361,223

190,038,297

186,781,320

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

METTUBE SDN. BHD.

 

TYPES OF FUNDS

Cash

-

51,409,972

21,100,173

31,551,039

23,709,589

Net Liquid Funds

-

51,033,232

20,747,262

30,682,956

21,312,706

Net Liquid Assets

47,495,337

(116,572,685)

(94,044,823)

(52,401,262)

(136,365,548)

Net Current Assets/(Liabilities)

47,495,337

34,483,496

14,589,884

62,250,454

50,220,532

Net Tangible Assets

262,929,775

262,071,152

248,361,223

190,038,297

186,781,320

Net Monetary Assets

46,034,776

(121,914,124)

(95,945,706)

(52,401,262)

(137,791,655)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

-

27,977,080

57,784,209

23,242,535

20,496,206

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

-

27,977,080

57,784,209

23,242,535

20,496,206

BALANCE SHEET ITEMS

Total Borrowings

-

379,718,598

363,879,023

321,964,165

384,719,379

Total Liabilities

403,216,443

445,678,221

410,259,299

369,368,858

464,391,201

Total Assets

664,685,657

702,407,934

656,719,639

559,407,155

649,746,414

Net Assets

262,929,775

262,071,152

248,361,223

190,038,297

186,781,320

Net Assets Backing

261,469,214

256,729,713

246,460,340

190,038,297

185,355,213

Shareholders' Funds

261,469,214

256,729,713

246,460,340

190,038,297

185,355,213

Total Share Capital

37,000,000

37,000,000

37,000,000

37,000,000

37,000,000

Total Reserves

224,469,214

219,729,713

209,460,340

153,038,297

148,355,213

LIQUIDITY (Times)

Cash Ratio

-

0.12

0.05

0.09

0.05

Liquid Ratio

-

0.74

0.77

0.86

0.71

Current Ratio

1.12

1.08

1.04

1.17

1.11

WORKING CAPITAL CONTROL (Days)

Stock Ratio

-

52

34

32

59

Debtors Ratio

-

90

87

76

92

Creditors Ratio

-

21

13

11

23

SOLVENCY RATIOS (Times)

Gearing Ratio

-

1.48

1.48

1.69

2.08

Liabilities Ratio

1.54

1.74

1.66

1.94

2.51

Times Interest Earned Ratio

-

2.38

4.77

1.97

2.10

Assets Backing Ratio

7.11

7.08

6.71

5.14

5.05

PERFORMANCE RATIO (%)

Operating Profit Margin

1.09

1.52

3.88

0.88

0.93

Net Profit Margin

0.91

1.31

3.68

0.76

0.77

Return On Net Assets

4.58

10.68

23.27

12.23

10.97

Return On Capital Employed

4.58

10.66

23.23

12.17

10.83

Return On Shareholders' Funds/Equity

3.84

5.43

17.59

5.20

4.83

Dividend Pay Out Ratio (Times)

0.48

0.35

0.11

0.52

0.58

NOTES TO ACCOUNTS

Contingent Liabilities

-

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.39

UK Pound

1

Rs.99.05

Euro

1

Rs.73.19

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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.