MIRA
INFORM REPORT
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Report Date : |
08.06.2007 |
IDENTIFICATION DETAILS
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Name : |
BINAPURI SAKTI SDN BHD |
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Registered Office : |
28, Lorong Tapah, Off Jalan Goh Hock Huat, 41400 Klang |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
18/07/2003 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trading of Industrial & Agro Chemicals |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
* Adopted abbreviations : SC - Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 622118-W
COMPANY NAME : BINAPURI SAKTI SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 18/07/2003
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : 28, LORONG TAPAH, OFF JALAN GOH HOCK
HUAT, 41400
BUSINESS ADDRESS : LOT 5, JALAN PERIGI NENAS 7/3, FASA
1A, PULAU INDAH
INDUSTRIAL
PARK, PELABUHAN KLANG, 42920 PULAU
LUMUT,
TEL NO : 03 - 31013333
FAX NO : 03 - 31013231
CONTACT PERSON : RONNY NG (DIRECTOR)
INDUSTRY CODE : 51499
PRINCIPAL ACTIVITY : TRADING OF INDUSTRIAL & AGRO
CHEMICALS
AUTHORISED CAPITAL : MYR100,000.00 DIVIDED INTO ORDINARY
SHARE 100,000
OF
MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR2.00 DIVIDED INTO ORDINARY SHARE 2
CASH OF
MYR1.00
EACH.
SALES : MYR422,646 [2005]
NET WORTH : < MYR26,739 > [2005]
STAFF STRENGTH : 10
[2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : POOR
PAYMENT : N/A
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : HIGH
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : SATISFACTORY
INDUSTRY OUTLOOK : AVERAGE GROWTH
HISTORY / BACKGROUND
The SC 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
SC must have at least two directors. A private limited company is a separate
legal entity from its shareholders. As a separate legal entity, the SC 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 SC is insolvent. The SC 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 SC is principally engaged in the (as a / as an) trading of
industrial & agro chemicals.
The SC is not listed on
The SC is not qualified to be one of the Top Corporate Performers in the
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
MR. RONNY NG + 26, JALAN KAYU PAUH, KIJANG 1, BATU 2, 780525-10-5105
1
JALAN
MERU, 41060 KLANG, SELANGOR,
MS. KENG KIM KEE + 3, LORONG JELAI, OFF JALAN KIM CHUAN, 571110-10-5110 1
42000
PELABUHAN KLANG, SELANGOR,
--------------------
2
============
+ Also
Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. RONNY NG
Address : 26, JALAN KAYU PAUH, KIJANG 1, BATU
2, JALAN MERU, 41060
KLANG,
IC / PP No. : N/A
New IC No : 780525-10-5105
Date of Birth : 25/05/1978
Nationality : MALAYSIAN
CHINESE
DIRECTOR 2
Name of Subject : MS. KENG KIM KEE
Address : 3, LORONG JELAI, OFF JALAN KIM CHUAN,
42000 PELABUHAN
KLANG,
IC / PP No. : N/A
New IC No : 571110-10-5110
Date of Birth : 10/11/1957
Nationality : MALAYSIAN CHINESE
MANAGEMENT
1) Name of Subject : RONNY NG
Position : DIRECTOR
AUDITOR
Auditor : W S TAN & ASSOCIATES
Auditors' Address : 28B, LORONG TAPAH, OFF JALAN GOH HOCK
HUAT, 41400 KLANG,
COMPANY SECRETARY
1) Company Secretary : MS.
SHOON KUAN HO
IC / PP No. : A0815518
New IC No. : 671129-08-5082
Address : 11, JALAN DAYANG 5,
KLANG,
2) Company Secretary : MS.
CHOW POH BENG
New IC No. : 730413-10-5746
Address : 5, LORONG RAJA NONG 12B, OFF JALAN RAJA NONG, 41000
KLANG,
BANKING
Banking relations are maintained principally with :
1) Banker Name : MALAYAN
BANKING BHD
The SC enjoys normal banking routine with above mentioned banker(s).
No adverse record was found during our investigation.
ENCUMBRANCE (S)
No encumbrance was found in our databank at the time of investigation.
LEGAL CHECK AGAINST
THE SC
* A check has been
conducted in our databank against the SC whether the subject has been
involved in any
litigation. Our databank consists of 99% of the wound up companies in
back dated since 1900.
No legal action was found in our databank.
No winding up petition was found in our data bank
PAYMENT RECORD
SOURCES OF RAW MATERIALS :
Local : YES Percentage : 60%
Overseas : YES Percentage : 40%
Import Countries :
The SC 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 :
CLIENTELE
Local : YES Percentage : 100%
Domestic Markets :
Overseas : NO Percentage : 0
%
Credit Term : 15 DAYS.
Payment Mode : CASH , CHEQUES.
Type of Customer : DEALERS .
OPERATIONS
Goods Traded : INDUSTRIAL & AGRO CHEMICALS
Competitor(s) : TITAN TRADING CORP. SDN BHD
TEXCHEM
MATERIALS SDN BHD
TAIKO
MARKETING SDN BHD
MALAYSIAN
INTERNATIONAL TRADING CORPORATION SDN BHD
SAMCHEM
SDN BHD
Ownership of premises : LEASED/RENTED
Total Number of Employees :
YEAR 2007
GROUP N/A
COMPANY 10
Branch : NO
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA) database, but no latest
development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
Telephone Number Provided By Client : N/A
Current Telephone Number : 03-31013333
Match : N/A
Address Provided By Client : 28, LORONG TAPAH OFF JLN GOH HOCK
HIN, 41400 KLG
Current Address : LOT 5, JALAN PERIGI NENAS 7/3, FASA
1A, PULAU
42920
PULAU LUMUT,
Match : NO
Latest Financial Accounts : YES
Other Investigations
On 8th June 2007, we conducted an interview with the SC's staff, Ms
Nana. She furnished us some information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Decreased [ 29.38% ]
Profit / ( Loss ) before tax : Decreased [ 306.75% ]
Return on Shareholder Funds : Unfavourable [ 106.61% ]
Return on Net Assets : Unfavourable [ < 8.23%
> ]
The lower turnover could be due to the intense market competition. The
SC incurred losses during the year due to the inefficient control of its
operating costs. Although the SC's returns showed positive figures it is not
reflective of the true situation. The SC incurred losses during the year and
its shareholders' funds have turned
red. The positive returns on shareholders' funds is the result of losses
divided by negative shareholders' funds. The SC's management was inefficient in
utilizing the assets to generate returns.
Working Capital Control :
Stocks Ratio : Nil [ 0 Days ]
Debtors Ratio : Favourable [ 0 Days ]
Creditors Ratio : Favourable [ 0 Days ]
As the SC is a service oriented company, the SC does not need to keep
stocks. The favourable debtors' days could be due to the good credit control
measures implemented by the SC. The SC had a favourable creditors' ratio as
evidenced by its favourable collection days. The SC could be taking advantage
of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity :
Liquid Ratio : Unfavourable [ 0.59 Times ]
Current Ratio : Unfavourable [ 0.59 Times ]
A low liquid ratio means that the SC may be facing working capital
deficiency. If the SC cannot obtain additional financing or injection of fresh
capital, it may face difficulties in meeting its short term obligations.
Solvency :
Interest Cover : Unfavourable [ < 0.50 Times > ]
Gearing Ratio : Unfavourable [ < 5.60 Times > ]
The SC incurred losses in the year. It did not generate sufficient
income to service its interest. If the
situation does not improve, the SC may be vulnerable to default in servicing
the interest. The SC's gearing was negative during the year as its
shareholders' funds was in the red. This means the SC is running its business
using borrowed money. We consider the SC as facing high financial risks.
Overall Assessment :
The SC's losses could be attributed to the lower turnover which in turn
could be the result of unfavourable market conditions. Due to its weak
liquidity position, the SC will be faced with problems in meeting all its short
term obligations if no short term loan is obtained or additional capital
injected into the SC. The SC's interest cover was negative, indicating that it
did not generate sufficient income to service its interest. If its result does
not show impressive improvements or succeed obtaining short term financing or capital
injection, it may not be able to service its interest and repay the loans. The
SC has high financial risks. If its shareholders do not inject more capital
into the company or if its business performance does not improve, its going
concern may be in question.
Overall financial condition of the SC: POOR
COMMENTS
Established in 2003, the SC is principally engaged in the trading of
industrial and agro chemicals.
Throughout its year of establishment, the SC has slowly been building up
contacts with its clients and competing in the industry. Being a relatively
small company with issued and paid up capital of RM2.00, the SC's shareholders
structure consists of 2 individual shareholders. Without a strong shareholders'
backing, the SC may face difficulties in its attempt to further expand its
business in the future.
At present, local market remains the SC's biggest market. It depends
solely on the sales in the domestic market to achieve profitability. As such,
its business risk is high compared to the export oriented company. The
management of the SC is headed by Director Ronny Ng and assisted by 10 staffs.
Overall the management capability of the SC is average.
During the financial under review, turnover of the SC dropped by 29.38%
to RM422,646 in 2005. The SC recorded a pre-tax losses of RM23,820 for the
year. Due to the losses, the SC has generated an unfavourable return on
shareholders' funds which indicated that the management was inefficient in
utilising its shareholders' funds to generate returns. Moreover, the SC is in
weak liquidity position with its current liabilities well exceeding its current
assets. Thus, it may faces difficulties in meeting its short term obligations
if no short term loan is obtained or additional capital injected. Beside that
we also noted that the SC also had a deficit in shareholder's equity of
RM26,739. The SC as on going concern is uncertain. Overall the financial standing of the SC is
POOR.
Investigation revealed that the SC's supplies are sourced from both
local and overseas suppliers. Hence, the
SC is subjected to currency fluctuation risk and high operating costs.
Based on our historical financial data, the SC's payment is average. The
SC should be able to meet its small and medium commitments. Some caution needed
for big transactions. The SC is clear of litigation.
The industry remains robust with continuing strong demand for its
products. The steady growth in the country's economy will further enhance its
business and there will be more business opportunities available for the SC in
the future. In this competitive industry, the SC may face stiff competition
from other players. Hence, the SC should improve its management capability and
explore more new markets segments in order to have a stable standing in the
industry.
Despite showing a positive growth of the industry, we however noted that
granting of credit to the SC could be quite risky in view of poor financial
standing. Hence, we do not recommend the credit to be proceeded to the SC.
THE FINANCIAL
STATEMENTS WERE PREPARED
IN ACCORDANCE WITH
STANDARD.
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-December-2005
BINAPURI
SAKTI SDN BHD
18
month
2005 2004
MYR MYR
TURNOVER 422,646 598,520
=========== ===========
PROFIT/(LOSS)
FROM OPERATIONS <23,820> 11,521
SHARE OF PROFITS/(LOSSES) OF
ASSOCIATED
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PROFIT/(LOSS)
BEFORE TAXATION <23,820> 11,521
Taxation <4,687> <9,755>
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PROFIT/(LOSS)
AFTER TAXATION <28,507> 1,766
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS <28,507> 1,766
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PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS <28,507> 1,766
RETAINED PROFIT/(ACCUMULATED LOSS)
BROUGHT
FORWARD
As previously
reported 1,766 -
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As restated 1,766 -
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PROFIT
AVAILABLE FOR APPROPRIATIONS <26,741> 1,766
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RETAINED PROFIT/(ACCUMULATED LOSS)
CARRIED
FORWARD <26,741> 1,766
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RETAINED
BY: The Company <26,741> 1,766
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<26,741> 1,766
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INTEREST
EXPENSE (as per notes to P&L)
Hire purchase 15,899 7,042
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15,899 7,042
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BALANCE SHEET
As At 31-December-2005
BINAPURI SAKTI SDN BHD
18
month
2005 2004
MYR MYR
ASSETS EMPLOYED:
FIXED ASSETS 171,758 229,011
LONG TERM
INVESTMENTS/OTHER ASSETS
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INTANGIBLE
ASSETS
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TOTAL LONG
TERM ASSETS 171,758 229,011
CURRENT
ASSETS
Other
debtors, deposits & prepayments 3,623 4,216
Items in transit between head
office & branches
Cash &
bank balances 105,537 101,009
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TOTAL CURRENT
ASSETS 109,160 105,225
CURRENT
LIABILITIES
Other
creditors & accruals 155,604 3,670
Hire purchase
& lease creditors 26,894 28,576
Amounts owing
to director - 150,000
Provision for
taxation 2,187 9,755
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TOTAL CURRENT
LIABILITIES 184,685 192,001
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NET CURRENT
ASSETS/(LIABILITIES) <75,525> <86,776>
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TOTAL NET
ASSETS 96,233 142,235
=========== ===========
FINANCED BY:
SHARE CAPITAL
Ordinary
share capital 2 2
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TOTAL SHARE
CAPITAL 2 2
RESERVES
Retained profit/(Accumulated loss)
carried
forward <26,741> 1,766
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TOTAL
RESERVES <26,741> 1,766
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SHAREHOLDERS'
FUNDS/EQUITY <26,739> 1,768
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Hire purchase
creditors 122,972 140,467
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 122,972 140,467
------------------- -------------------
96,233 142,235
=========== ===========
FINANCIAL RATIOS
As At 31-December-2005
BINAPURI SAKTI SDN BHD
18
month
2005 2004
MYR MYR
TYPES OF FUNDS
Cash 105,537 101,009
Net Liquid
Funds 105,537 101,009
Net Liquid
Assets <75,525> <86,776>
Net Current Assets/(Liabilities) <75,525> <86,776>
Net Tangible
Assets 96,233 142,235
Net Monetary
Assets <198,497> <227,243>
BALANCE SHEET
ITEMS
Total
Borrowings 149,866 169,043
Total
Liabilities 307,657 332,468
Total Assets 280,918 334,236
Net Assets 96,233 142,235
Net Assets
Backing <26,739> 1,768
Shareholders''
Funds <26,739> 1,768
Total Share
Capital 2 2
Total
Reserves <26,741> 1,766
LIQUIDITY
(Times)
Cash Ratio 0.57 0.53
Liquid Ratio 0.59 0.55
Current Ratio 0.59 0.55
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 0 0
Debtors Ratio 0 0
Creditors
Ratio 0 0
SOLVENCY
RATIOS (Times)
Gearing Ratio <5.60> 95.61
Liabilities
Ratio <11.51> 188.05
Times
Interest Earned Ratio <0.50> 2.64
PERFORMANCE
RATIO (%)
Operating
Profit Margin <5.64> 1.92
Net Profit
Margin <6.74> 0.30
Return On Net
Assets <8.23> 13.05
Return On
Capital Employed <6.43> 10.87
Return On
Shareholders'' Funds/Equity 106.61 99.89
Dividend Pay
Out Ratio (Times) 0 0
NOTES TO
ACCOUNTS
Contingent
Liabilities 0 0
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)