MIRA
INFORM REPORT
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Report Date : |
8th March, 2007 |
IDENTIFICATION
DETAILS
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Name : |
D P S CAPITAL BHD |
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Formerly Known as: |
NITCOM CAPITAL BHD (01-10-2002) |
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Registered Office : |
Suite 1.00a, Wisma Yakin, Jalan Masjid India, 6th Floor, 50100 Kuala Lumpur, Malaysia. |
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Country : |
Malaysia. |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
29.11.2001 |
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Legal Form : |
Public Company |
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Line of Business : |
Trader in Telecommunication Products. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
EXECUTIVE SUMMARY
LOCAL NO : 565600-W
COMPANY NAME : D P S CAPITAL BHD
FORMER NAME : NITCOM CAPITAL BHD (01-10-2002)
INCORPORATION DATE : 29/11/2001
COMPANY STATUS : EXIST
LEGAL STATUS : PUBLIC COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : SUITE 1.00A, WISMA YAKIN, JALAN MASJID INDIA, 6TH
FLOOR, 50100 KUALA LUMPUR, MALAYSIA.
BUSINESS ADDRESS : 34 JALAN 11/16, OFF JALAN UNIVERSITY, 46200 PETALING
JAYA, SELANGOR, MALAYSIA.
TEL NO : 03 - 79586055
FAX NO : 03 - 79587055
CONTACT PERSON : PALANISASTRY A/L RAMAN (CHAIRMAN)
INDUSTRY CODE : 51511
PRINCIPAL ACTIVITY : TRADING OF TELECOMMUNICATION PRODUCT
AUTHORISED CAPITAL : MYR5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR2,000,000.00 DIVIDED INTO
ORDINARY SHARE 2,000,000 CASH OF MYR1.00 EACH.
SALES : MYR11,041,403 [2005]
NET WORTH : MYR1,682,257 [2005]
STAFF STRENGTH : 15 [2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : LIMITED
PAYMENT : N/A
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : HIGH
CURRENCY EXPOSURE : NIL
GENERAL REPUTATION : SATISFACTORY
INDUSTRY OUTLOOK : MARGINAL GROWTH
CREDIT RATING : B (please refer to appendix)
HISTORY / BACKGROUND
As a public limited company, the SC must have at least one shareholder but there is no limit on the maximum number of shareholders. The SC must have at least two directors. A public 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, suing or be sued by other companies. The liabilities of the shareholders are only up to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act,1965 and must file in its annual return, together with its financial statements with the Registrar of Companies. In Malaysia, all the companies seeking listing on the Bursa Malaysia (Malaysia Stock Exchange) must be public limited companies.
The SC is principally engaged in the (as a / as an) trading of telecommunication product.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is not qualified to be one of the Top Corporate Performers in the Malaysia 1000 (M1000) publication, a directory jointly published by Companies Commission of Malaysia (The Registrar Office), Minister of Domestic Trade and Consumer Affairs and our publication arm, BASIS Publications House Sdn Bhd.
The major shareholder(s) of the SC are shown as follows :
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Name |
Address |
IC/PP/Loc No: |
Shareholding |
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PALANISASTRY A/L
RAMAN + |
15, JALAN 11/6, 46000 PETALING JAYA, SELANGOR, MALAYSIA. |
630429-05-5087 |
1,999,999.00 |
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MR. V UNNIKRISHNAN
A/ VELAUTHAN |
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640330-06-5049 |
1.00 |
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2,000,000 |
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. JOTHY SAMSON SCHWARTZ
Address : 4 LORONG POKOK SERAYA 5/1F, TAMAN KHIDMAT,
KOLOMBONG, 88450 KOTA KINABALU, SABAH, MALAYSIA.
IC / PP No : N/A
New IC No : 490605-07-5027
Date of Birth : 05/06/1949
Nationality : MALAYSIAN OTHER
Date of Appointment : 15/05/2006
DIRECTOR 2
Name of Subject : DATO'' PALANISASTRY A/L RAMAN
Address : 15, JALAN 11/6, 46000 PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No : N/A
New IC No : 630429-05-5087
Date of Birth : 29/04/1963
Nationality : MALAYSIAN INDIAN
Date of Appointment : 29/11/2001
MANAGEMENT
1) Name of Subject : PALANISASTRY A/L RAMAN
Position : CHAIRMAN
AUDITOR
Auditor : RAVINDRA KRISHNA & ASSOCIATES
Auditors' Address : 98A-3, JALAN JEJAKA, TAMAN MALURI, CHERAS, 55100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MR. MANOHUR S/O K KUMARAN
IC / PP No. : 5857769
New IC No. : 600424-01-5847
Address : 12 JALAN 31/74A KOTA KEMUNING, 40460 SHAH ALAM,
SELANGOR, MALAYSIA.
Date of Appointment : 29/11/2001
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)
ENCUMBRANCE 1
Date of Creation : 25 Aug 2005
Description of Charge : N/A
Amount Secured : RM 500,000.00
Description of Property Affected : N/A
Name & Address of Chargee : BUMIPUTRA COMMERCE BANK BHD
Form 40 Dated
Registered and Numbered 2 In The Register of Charges
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 Malaysia back dated since 1900.
No legal action was found in our databank.
No winding up petition was found in our data bank
PAYMENT RECORD
The SC refused to furnish us with the suppliers' names. Without the financial accounts, we are not able to comment on the SC's payment habit.
CLIENTELE
Local : YES Percentage : 100%
Domestic Markets : MALAYSIA.
Overseas : NO Percentage : 0 %
Credit Term : 30 DAYS.
Payment Mode : CHEQUES.
Type of Customer : END USERS , CORPORATES .
OPERATIONS
Goods Traded : TELECOMMUNICATION PRODUCT
Total Number of Employees :
YEAR 2007
GROUP N/A
COMPANY 15
Branch : NO
Other Information :
The SC is principally engaged in the (as a / as an) trading of telecommunication product.
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 : 79586055
Current Telephone Number : 03-79586055
Match : YES
Address Provided By Client : 34 JALAN 11/16, OFF JALAN UNIVERSITY, 46200
PETALING JAYA, SELANGOR
Current Address : 34 JALAN 11/16, OFF JALAN UNIVERSITY, 46200
PETALING JAYA, SELANGOR, MALAYSIA.
Match : YES
Latest Financial Accounts : YES
Other Investigations
On 2nd March 2007, we conducted an interview with the SC's staff from Account Dept. She furnished us some information on the SC.
FINANCIAL COMMENTS
The financial summary of the SC in Year 2005 showed that it was financially LIMITED. Return on shareholders' funds of the SC is relatively low, indicating that the SC did not generate an acceptable amount of profits based on its existing shareholders' funds. The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. However the SC was in good liquidity position with its current liabilities well covered by its current assets. With its current net assets, the SC should be able to repay its short term obligations.
Overall financial
condition of the SC: LIMITED
COMMENTS
Established in 2001, the SC is principally engaged in the trading of telecommunication product. Throughout its year of establishment, the SC has slowly been building up contact with its clients and competing in the industry. At present the paid up capital of the SC stands at RM2,000,000.
The SC's business expansion opportunities is limited as it concentrates solely on the local market and it only has a work force of 15 throughout the years. The SC is vulnerable to the changes in the local market. The SC's business activities are overseen by its chairman Palanisastry and its management capability is average.
For the financial year ended 31 December 2005, the SC recorded pre-tax profit of R129,781 on the back of RM11,041,403 in turnover. Return on shareholders' funds of the SC was relatively low, indicating that the management was inefficient in utilising the assets to generate funds. Beside this the SC also posted a high gearing ratio indicating that the financial risk of the SC is high. However the SC was in good liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations. The SC should be able to maintain its business in the near term, given a positive net worth standing at RM1,682,257. It is clear of any litigation.
The industry is reaching its maturity stage and a marginal growth is expected. With the normal outlook of the industry performance, we believe that the SC has the potential of capturing a higher market shares.
In view of the above and based on our assessment we recommend credit be granted to the SC with guarantee.
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
PROFIT AND LOSS ACCOUNT
31-December-2005
Consolidated
Accounts : No
UnQualified Reports : Yes
RM
Turnover 11,041,403.00
Operating
Revenue 0.00
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Profit
/ (Loss) Before Tax 129,781.00
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Profit
/ (Loss) After Tax 99,366.00
Extraordinary
Item 0.00
Minority
Interest 0.00
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Profit/(Loss)
Attributable to Shareholders 99,366.00
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Prior
Period Adjustment 0.00
Net
Dividend 86,400.00
Transferred
To/From Reserved 0.00
Others 0.00
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Unappropriated
Profit/(Loss) Brought Forward <
330,709.00 >
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Unappropriated
Profit/(Loss) Carried Forward <
317,743.00 >
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BALANCE SHEET
31-December-2005
Consolidated Accounts : No
UnQualified Reports : Yes
RM
Fixed
Assets 24,880.00
Total
Investment 0.00
Amount
Owing By 0.00
Current
Assets 3,884,317.00
Intangible
Assets 0.00
Other
Assets 0.00
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Total
Assets 3,909,197.00
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Working
Capital 1,657,940.00
Issued
Capital 2,000,000.00
Paid
Up Capital 2,000,000.00
Share
Premium & Reserved 0.00
Unappropriated
Profit/(Loss) <
317,743.00 >
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Shareholder's
Fund/Equity 1,682,257.00
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Current
Liabilities 2,226,377.00
Amount
Owing To 0.00
Long-term
and Deferred Liabilities 563.00
Share
Application Account 0.00
Minority
Interest 0.00
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Total
Equity Liability 3,909,197.00
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Contingent
Liabilities 0.00
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
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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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<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%)