MIRA
INFORM REPORT
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Report Date : |
28.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
ALAM RA'I SDN BHD |
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Registered Office : |
28-1, Jalan Usj
1/1b, Regalia Business Centre, Usj 1, 47620 Subang Jaya |
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Country : |
Malaysia |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
25/01/1996 |
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Legal Form : |
Private Limited
Company |
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Line of Business : |
Exporting of Wood
and Wood related products |
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 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
* Adopted abbreviations : SC - Subject Company ( the company enquired
by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 375316-V
COMPANY NAME : ALAM RA'I SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 25/01/1996
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : 28-1, JALAN USJ 1/1B, REGALIA BUSINESS CENTRE, USJ 1,
47620
SUBANG JAYA, MALAYSIA.
BUSINESS ADDRESS : 10-B, USJ 10/1-B, 47620 SUBANG JAYA,
SELANGOR,
MALAYSIA.
TEL NO : 03 - 56386857
FAX NO : 03 - 56375258
EMAIL : sales@alamrai.com
WEB SITE : www.alamrai.com
CONTACT PERSON : ASIF AKTHAR SIDDIQUI MOHAMMAD HANIF
AHMAD
(DIRECTOR)
INDUSTRY CODE : 51431
PRINCIPAL ACTIVITY : EXPORTING OF WOOD AND WOOD RELATED
PRODUCTS
AUTHORISED CAPITAL : MYR1,000,000.00
DIVIDED INTO
ORDINARY
SHARE 1,000,000 OF MYR1.00 EACH.
ISSUED AND PAID UP
CAPITAL : MYR1,000,000.00 DIVIDED INTO ORDINARY
SHARE
1,000,000
CASH OF MYR1.00 EACH.
SALES : MYR6,972,371 [2005]
NET WORTH : MYR1,768,655 [2005]
STAFF STRENGTH : 2
[2007]
BANKER (S) : HSBC BANK MALAYSIA BHD
: STANDARD
CHARTERED BANK MALAYSIA BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : STABLE
PAYMENT : PROMPT
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : SATISFACTORY
INDUSTRY OUTLOOK : MARGINAL 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) exporting of wood and wood related
products.
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 :
Name Address IC/PP/Loc
No:
Shareholding
MR. ASIF AKHTAR SIDDIQUI A-PH-1 INDERA SUBANG CONDO, JALAN USJ G759670 575,000
MOHAMMAD HANIF AHMAD + 6/2L, UEP SUBANG JAYA, 47600 SUBANG
JAYA,
SELANGOR, MALAYSIA.
MS. JUHAIRA BTE F4-00-11
SUBANG PERDANA COURT 6, A1124976 350,000
KAMARUDDIN + PERSIARAN
KEWAJIPAN, 47610 PETALING 681003-08-5326
JAYA,
SELANGOR, MALAYSIA.
MR. NASREEN AKHTAR A-PH-1,
INDERA SUBANG CONDO, JALAN USJ F434125 75,000
SIDDIQUI + 6/2L,
UEP SUBANG JAYA, 47600 SUBANG
JAYA,
SELANGOR, MALAYSIA.
--------------------
1,000,000
===========
DIRECTORS
DIRECTOR 1
Name of Subject : MR.
ASIF AKHTAR SIDDIQUI MOHAMMAD HANIF AHMAD
Address : A-PH-1 INDERA SUBANG CONDO, JALAN USJ 6/2L, UEP SUBANG
JAYA,
47600 SUBANG JAYA, SELANGOR, MALAYSIA.
IC / PP No. : G759670
Nationality : PAKISTANI
DIRECTOR 2
Name of Subject : MS.
JUHAIRA BTE KAMARUDDIN
Address : F4-00-11 SUBANG PERDANA COURT 6, PERSIARAN KEWAJIPAN,
47610
PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No. : A1124976
New IC No : 681003-08-5326
Nationality : MALAYSIAN MALAY
DIRECTOR 3
Name of Subject : MR.
NASREEN AKHTAR SIDDIQUI
Address : A-PH-1, INDERA SUBANG CONDO, JALAN USJ 6/2L, UEP SUBANG
JAYA,
47600 SUBANG JAYA, SELANGOR, MALAYSIA.
IC / PP No. : F434125
Nationality : PAKISTANI
MANAGEMENT
1) Name of Subject : ASIF
AKTHAR SIDDIQUI MOHAMMAD HANIF AHMAD
Position : DIRECTOR
2) Name of
Subject : JUHAIRA BTE KAMARUDDIN
Position : DIRECTOR
AUDITOR
Auditor : Y K CHEE & CO
Auditors' Address : 12-2,
JALAN PJU 8/5C, PERDANA BUSINESS CENTRE, BANDAR
DAMANSARA PERDANA, 47820 PETALING
JAYA, SELANGOR,
MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MS.
CHITRA A/P THIAGARAJAH
IC / PP No. : A0122326
New IC No. : 640728-10-6410
Address : 14
LORONG EMAS 1, TAMAN MELAWIS, 41000 KLANG,
SELANGOR,
MALAYSIA.
BANKING
Banking relations
are maintained principally with :
1) Banker Name : HSBC BANK
MALAYSIA BHD
2) Banker Name : STANDARD
CHARTERED BANK MALAYSIA BHD
The SC enjoys normal
banking routine with above mentioned banker(s).
The SC has bank
charges with above mentioned banker(s).
ENCUMBRANCE (S)
ENCUMBRANCE 1
Date of Creation : 02
Apr 2001
Description of
Charge : N/A
Amount Secured : O/D
Description of
Property Affected : N/A
Name & Address
of Chargee : HSBC BANK MALAYSIA BHD
Form 40 Dated
Registered and
Numbered 1 In The Register of Charges
ENCUMBRANCE 2
Date of Creation : 28
Mar 2006
Description of
Charge : CHARGE
Amount Secured : RM 2,550,000.00
Description of
Property Affected : HSD 98173, PT 30359, MUKIM SUNGAI
BULOH, PETALING
SELANGOR
Name & Address
of Chargee : STANDARD CHARTERED BANK MALAYSIA BHD
MENARA
STANDARD CHATERED, LEVEL 16, 50250 KUALA
LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
Form 40 Dated 13 Apr
2006
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
SOURCES OF RAW
MATERIALS :
Local : YES
Overseas : YES
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 :
OVERALL PAYMENT
HABIT
Prompt [ X ] Good [ ] Average [ ]
Fair [ ] Poor [ ]
CLIENTELE
Local : NO Percentage : 0
%
Overseas : YES Percentage : 100%
Export Market : SAUDI ARABIA , MALDIVES , PAKISTAN , UNITED ARAB EMIRATES
,
MAURITIUS
, SOUTH AFRICA , AUSTRALIA , TUNISIA , UNITED KINGDOM.
Credit Term : 30 - 60 DAYS , 60 - 90 DAYS.
Payment Mode : CHEQUES
, LETTER OF CREDIT (LC) , TELEGRAPHIC TRANSFER (TT).
Type of Customer : AGENTS
, DEALERS .
OPERATIONS
Goods Traded : WOOD AND WOOD RELATED PRODUCTS
Competitor(s) : MERBOK MDF SDN BHD
KPS
PLYWOOD SDN BHD
COSTRACO
SDN BHD
SHIN
YANG TRADING SDN BHD
ASIAPRIMA
RESOURCES SDN BHD
Ownership of
premises : LEASED/RENTED
Total Number of
Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 2 1 1
Branch : NO
Other Information :
The SC is
principally engaged in the (as a / as an) exporting of wood and wood related
products.
The SC's core
business is exporting wood and wood related products but occasionally it does
involve in export of other items such as tiles, bathroom fittings, electrodes
etc.
The SC offers a wide
range of wood and wood products which include :-
* Sawn timber (MLH
& Hardwoods)
* Flooring (Wooden
and HDF)
* Wooden Doors
(Solid and Hollow)
* Plywood
* Other items
(electrodes, safety shoes, ceramic tiles, bathroom fittings)
The SC is not just
selling wood, it’s selling the makings for homes, furniture, cabinets and so
on.
We were informed
that the SC has its own warehouse at the same premises to keep stock and
materials.
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 : 03-56386857
Match : N/A
Address Provided By
Client : 10-B, USJ 10/1-B, 47620 SUBANG JAYA
SELANGOR
Current Address : 10-B, USJ 10/1-B, 47620 SUBANG JAYA,
SELANGOR,
MALAYSIA.
Match : YES
Latest Financial
Accounts : YES
Other Investigations
On 25th April 2007, we
conducted an interview with one of the SC's Senior staff from Admin & Sales
Department. She revealed some relevant information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 4.10% ]
Profit / ( Loss )
before tax : Increased [ 49.17% ]
Return on
Shareholder Funds : Acceptable [ 27.09% ]
Return on Net Assets : Favourable [ 34.46% ]
The higher turnover
could be attributed to the favourable market condition. The higher profit could
be attributed to the increase in turnover. The SC's management had generated
acceptable return for its shareholders using its assets.
Working Capital
Control :
Stocks Ratio : Favourable [ 18 Days ]
Debtors Ratio : Unfavourable [ 67 Days ]
Creditors Ratio : Favourable [ 9
Days ]
The SC's stocks were
moving fast thus reducing its holding cost. This had reduced funds being tied
up in stocks. The high debtors' ratio could indicate that the SC was weak in
its credit control. However, the SC could also giving longer credit periods to
its customers in order to boost its sales or to capture / retain its market
share. 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 : Favourable [ 1.10 Times ]
Current Ratio : Unfavourable [ 1.24 Times ]
A minimum liquid
ratio of 1 should be maintained by the SC in order to assure its creditors of
its ability to meet short term obligations and the SC was in a good liquidity
position. Thus, we believe the SC is able to meet all its short term
obligations as and when they fall due.
Solvency :
Interest Cover : Favourable [ 1216.69
Times ]
Gearing Ratio : Favourable [ 0.00
Times ]
The interest cover showed
that the SC was able to service the interest. The favourable interest cover
could indicate that the SC was making enough profit to pay for the interest
accrued. The SC had no gearing and hence it had virtually no financial risk.
The SC was financed by its shareholders' funds and internally generated fund.
During the economic downturn, the SC, having a zero gearing, will be able to
compete better than those which are highly geared in the same industry.
Overall Assessment :
Generally, the SC's
performance has improved with higher turnover and profit. The SC was in good
liquidity position with its total current liabilities well covered by its total
current assets. With its current net assets, the SC should be able to repay its
short term obligations. With the favourable interest cover, the SC could be
able to service all the accrued interest without facing any difficulties. The
SC's gearing 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 SC: STABLE
COMMENTS
Established in 1996,
the SC is principally engaged in the exporting of wood and wood related
products. With its long presence in the industry coupled with its vast
experiences in the business, the SC should have built up a certain goodwill
with its client over times. The SC is a private limited company with the paid
up capital of RM1,000,000.
Our investigation
revealed that the SC is solely concentrated on the overseas market. With the
full concentration on the overseas market, the SC is unlikely to be affected by
the uncertainties in the local economy and this has benefited the SC in terms
of higher earnings. However, being an international player, the SC is subjected
to certain inherent risks of foreign currencies fluctuation and stiff
competition from the international market. As a whole, the commercial risk of
the SC is moderate. The SC is considered as a small entity with the workforce of
2 and overall management capability of the SC can be regarded as average.
During the financial
year 2005, the SC's turnover improved by 4.09% from RM6,697,964 to RM6,972,371
with a total SC's revenue of RM609,059. The SC managed to generate an acceptable
return of 27.09% for its shareholders which indicated that the management was
efficient in utilising its funds to generate income. Besides, the SC's
liquidity position remained healthy as it has sufficient working capital to
meet its short term financial obligations. Being a zero geared company, the SC
virtually has no financial risk as it is mainly dependent on its internal funds
to finance its business. The SC should be able to maintain its business in the
near term, given a positive net worth standing at RM1,768,655.
Investigation
revealed that the SC's supplies are sourced locally and imported from overseas
countries. Thus, it eliminates the risk of dependency on deliveries from a
number of key suppliers and shortage of its raw materials.
Based on the
historical financial data, we concluded that the SC's payment record is prompt.
The SC is clear of 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.
Based on above
circumstances we recommend credit be granted to the SC normally.
THE FINANCIAL STATEMENTS
WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-December-2005
ALAM
RA'I SDN BHD
2005 2004
MYR MYR
TURNOVER 6,972,371 6,697,964
=========== ===========
PROFIT/(LOSS)
FROM OPERATIONS 609,059 408,296
SHARE OF PROFITS/(LOSSES) OF
ASSOCIATED
------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 609,059 408,296
Taxation <129,916> <89,590>
------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 479,143 318,706
------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 479,143 318,706
------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 479,143 318,706
RETAINED PROFIT/(ACCUMULATED LOSS)
BROUGHT
FORWARD
As previously
reported 289,512 <29,194>
------------------- -------------------
As restated 289,512 <29,194>
------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 768,655 289,512
------------------- -------------------
RETAINED PROFIT/(ACCUMULATED LOSS)
CARRIED
FORWARD 768,655 289,512
=========== ===========
RETAINED
BY: The Company 768,655 289,512
------------------- -------------------
768,655 289,512
=========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Bank
overdraft 501 22,388
------------------- -------------------
501 22,388
=========== ===========
BALANCE SHEET
As
At 31-December-2005
ALAM
RA'I SDN BHD
2005 2004
MYR MYR
ASSETS EMPLOYED:
FIXED ASSETS 1,178,756 855,193
------------------- -------------------
TOTAL LONG
TERM ASSETS 1,178,756 855,193
CURRENT
ASSETS
Stocks 347,766 -
Trade debtors 1,272,905 1,269,815
Other
debtors, deposits & prepayments 138,587 409,348
Short term
deposits - 400,000
Items in transit between head
office & branches
Amount due
from director 1,169,215 247,041
Cash &
bank balances 87,647 3,241
------------------- -------------------
TOTAL CURRENT
ASSETS 3,016,120 2,329,445
CURRENT
LIABILITIES
Trade
creditors 174,891 330,435
Other
creditors & accruals 1,238,415 680,414
Bank
overdraft 9 481,116
Bill &
acceptances payable 758,000 -
Amounts owing
to director - 278,171
Provision for
taxation 254,906 124,990
------------------- -------------------
TOTAL CURRENT
LIABILITIES 2,426,221 1,895,126
------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) 589,899 434,319
------------------- -------------------
TOTAL NET
ASSETS 1,768,655 1,289,512
=========== ===========
FINANCED BY:
SHARE CAPITAL
Ordinary
share capital 1,000,000 1,000,000
------------------- -------------------
TOTAL SHARE
CAPITAL 1,000,000 1,000,000
RESERVES
Retained profit/(Accumulated loss)
carried
forward 768,655 289,512
------------------- -------------------
TOTAL
RESERVES 768,655 289,512
------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 1,768,655 1,289,512
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
------------------- -------------------
1,768,655 1,289,512
=========== ===========
FINANCIAL
RATIOS
As
At 31-December-2005
ALAM
RA'I SDN BHD
2005 2004
MYR MYR
TYPES OF FUNDS
Cash 87,647 403,241
Net Liquid
Funds 87,638 <77,875>
Net Liquid
Assets 242,133 434,319
Net Current
Assets/(Liabilities) 589,899 434,319
Net Tangible
Assets 1,768,655 1,289,512
Net Monetary
Assets 242,133 434,319
BALANCE SHEET
ITEMS
Total
Borrowings 9 481,116
Total
Liabilities 2,426,221 1,895,126
Total Assets 4,194,876 3,184,638
Net Assets 1,768,655 1,289,512
Net Assets
Backing 1,768,655 1,289,512
Shareholders''
Funds 1,768,655 1,289,512
Total Share
Capital 1,000,000 1,000,000
Total
Reserves 768,655 289,512
LIQUIDITY
(Times)
Cash Ratio 0.04 0.21
Liquid Ratio 1.10 1.23
Current Ratio 1.24 1.23
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 18 0
Debtors Ratio 67 69
Creditors
Ratio 9 18
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.00 0.37
Liabilities
Ratio 1.37 1.47
Times
Interest Earned Ratio 1,216.69 19.24
PERFORMANCE
RATIO (%)
Operating
Profit Margin 8.74 6.10
Net Profit
Margin 6.87 4.76
Return On Net
Assets 34.46 33.40
Return On
Capital Employed 34.46 24.32
Return On
Shareholders'' Funds/Equity 27.09 24.72
Dividend Pay
Out Ratio (Times) 0 0
NOTES TO
ACCOUNTS
Contingent
Liabilities 0 0
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 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)