MIRA
INFORM REPORT
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Report Date : |
04.05.2007 |
IDENTIFICATION DETAILS
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Name : |
MAY EXIM SDN BHD |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
26/08/1997 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trading in Telecommunication Equipment and related services |
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 : |
Slow but correct |
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Litigation : |
Exists |
* Adopted
abbreviations : SC - Subject Company ( the company enquired
by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 444728-K
COMPANY NAME : MAY EXIM SDN BHD
FORMER NAME : MAY IMPEX SDN BHD (12-10-2001)
: MAY LOGISTICS (M) SDN BHD
(08-12-2000)
: MAY MAPOD (M) SDN BHD (02-12-1998)
: MAY PROPERTIES (M) SDN BHD
(20-06-1998)
INCORPORATION DATE : 26/08/1997
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS :
FLOOR,
50100
BUSINESS ADDRESS : 34, JALAN 11/6, OFF
JAYA,
TEL NO : 03 - 79586055
FAX NO : 03 - 79587055
CONTACT PERSON : MANIMEKALAR A/P VEERAYAN (DIRECTOR)
INDUSTRY CODE : 51511
PRINCIPAL ACTIVITY : TRADING IN TELECOMMUNCATION EQUIPMENT
AND
RELATED
SERVICES
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 : MYR9,127,564 [2005]
NET WORTH : MYR2,013,414 [2005]
STAFF STRENGTH : 20
[2007]
BANKER (S) : BUMIPUTRA-COMMERCE BANK BHD
: MALAYAN BANKING BHD
LITIGATION : TRACED
FINANCIAL CONDITION : LIMITED
PAYMENT : AVERAGE
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) trading in
telecommunication equipment and related services.
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
DATIN MANIMEKALAR A/P 15, JALAN 11/6, 46000 PETALING JAYA, 6189648 1,999,999
VEERAYAN +
DATO' PALANISASTRY A/L 15, JALAN 11/6, 46000 PETALING JAYA, 630429-05-5087 1
RAMAN +
--------------------
2,000,000
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DIRECTORS
DIRECTOR 1
Name of Subject : DATIN MANIMEKALAR A/P VEERAYAN
Address : 15, JALAN 11/6, 46000 PETALING JAYA,
IC / PP No. : 6189648
New IC No : 610606-10-5092
Date of Birth : 06/06/1961
DIRECTOR 2
Name of Subject : DATO' PALANISASTRY A/L RAMAN
Address : 15, JALAN 11/6, 46000 PETALING JAYA,
IC / PP No. : N/A
New IC No : 630429-05-5087
Date of Birth : 29/04/1963
MANAGEMENT
1) Name of Subject : MANIMEKALAR
A/P VEERAYAN
Position : DIRECTOR
2) Name of Subject : SAMSON
SCHWARTZ
Position : SALES MANAGER
AUDITOR
Auditor : RAVINDRA KRISHNA & ASSOCIATES
Auditors' Address : 98B, JALAN JEJAKA,
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
BANKING
Banking relations are maintained principally with :
1) Banker Name : BUMIPUTRA-COMMERCE
BANK BHD
2) Banker Name : MALAYAN
BANKING 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 : 13 Jan 2005
Description of Charge : MEMO OF DEPOSIT OF FIXED DEPOSIT
RECEIPTS
Amount Secured : RM 300,000.00
Description of Property Affected : ALL MONIES HELD UNDER THE FIXED
DEPOSIT RECEIPT
OR
ANY RENEWAL/S THEREOF REFERRED TO IN THE SAID
MEMO
OF DEPOSIT OF FIXED DEPOSIT RECEIPTS
Name & Address of Chargee : MALAYAN BANKING BHD
MENARA
MAYBANK, 100 JALAN TUN PERAK, 14TH FLOOR,
50050
Form 40 Dated 25 Jan 2005
Registered and Numbered 1 In The
Register of Charges
ENCUMBRANCE 2
Date of Creation : 02 Mar 2005
Description of Charge : LETTERS OF AUTHORISATION
Amount Secured : RM 1,000,000.00
Description of Property Affected : VARIOUS SUMS OF MONEY IN THE FORM OF
MARGINAL
DEPOSIT/
SINKING FUND PLACED IN THE BANK UNDER
FIXED
(DEPOSIT)
Name & Address of Chargee : BUMIPUTRA-COMMERCE BANK BHD
6,
JALAN TUN PERAK, 50050
Form 40 Dated 09 Mar 2005
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
back dated since 1900.
Court No : HIGH COURT
Solicitor Ref : SIDEK TEOH WONG & DENNIS
Plaintiff : RHB BANK BHD
Defendants : MAY EXIM SDN BHD (444728)
50100
MANIMEKALAR
D/O VEERAYAN (6189648/610606-10-5092)
15
JLN 11/06, OFF JLN UNIVERSITI, 46200 PETALING JAYA, SELANGOR.
RAJENDRAN
S/O VEERAYAN (7219404/631129-10-5075)
27 JLN 43, SELAYANG BARU, 68100 BT
CAVES, SELANGOR.
Amount Claimed : 302,443.15
Nature of Claim : LOAN
No winding up petition was found in our data bank
PAYMENT RECORD
SOURCES OF RAW MATERIALS :
Local : YES
Overseas : YES
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 :
OVERALL PAYMENT HABIT
Prompt [ ] Good [ ] Average [ X ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES Percentage : 100%
Domestic Markets :
Overseas : NO Percentage : 0
%
Credit Term : AS AGREED.
Payment Mode : CHEQUES.
Type of Customer : END USERS.
OPERATIONS
Goods Traded : TELECOMMUNICATION EQUIPMENT
Ownership of premises : LEASED/RENTED
Total Number of Employees :
YEAR 2007 2006 2005 2004
GROUP N/A N/A N/A N/A
COMPANY 20 N/A N/A 11
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 : 60379566055
Current Telephone Number : 03-79586055
Match : YES
Address Provided By Client : NO 34 JALAN 11/6 OFF
PETALING
JAYA SELANGOR DARUL EHSAN
Current Address : 34, JALAN 11/6, OFF
PETALING
JAYA,
Match : YES
Latest Financial Accounts : YES
Other Investigations
On 30th April 2007, we conducted an interview with Ms Yoges from the
SC's Admin Department. She revealed some information pertaining to the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 3.63% ]
Profit / ( Loss ) before tax : Increased [ 60.67% ]
Return on Shareholder Funds : Unfavourable [ 1.36% ]
Return on Net Assets : Unfavourable [ 3.22% ]
The higher turnover could be attributed to the favourable market
condition. The higher profit could be attributed to the increase in turnover.
The unfavourable return on shareholders' funds and net assets could indicate
that the SC's management was inefficient in utilising its assets to generate
returns.
Working Capital Control :
Stocks Ratio : Unfavourable [ 69 Days ]
Debtors Ratio : Favourable [ 23 Days ]
Creditors Ratio : Favourable [ 0 Days ]
The SC could be incurring higher holding cost. As its capital was tied
up in stocks, it could face liquidity problems. 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 : Favourable [ 1.11 Times ]
Current Ratio : Favourable [ 2.02 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 : Unfavourable [ 2.71 Times ]
Gearing Ratio : Favourable [ 0.32 Times ]
The SC's interest cover was low. If its profits fall or when interest
rate rises, it may not be able to meet all
its interest payment. The SC was lowly geared thus it had a low financial risk.
The SC was mainly financed by its shareholders' funds and internally generated
funds. In times of economic slowdown / downturn, the SC being a lowly geared
company, will be able to compete better than those companies 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. If there is a fall in the
SC's profit or any increase in interest rate, the SC may not be able to
generate sufficient cash-flow to service its interest. The SC, as a lowly
geared company, will be more secured compared to those highly geared companies.
It has the ability to meet all its long term obligations.
Overall financial condition of the SC: LIMITED
COMMENTS
Incorporated in 1997 as a private limited company, the SC is principally
engaged in the trading of telecommunication equipment and related services.
With an issued and paid up capital of RM2,000,000, the SC does not have strong
shareholders' backing. Thus, it may face difficulties in its attempt to further
expand its business.
Having been in the industry for almost a decade, the SC should have
built up a relatively sound and stable clientele base. We noted that most of
the SC's products are sold locally and it only handling the end users. With
full concentration in the local market, it is likely to be influenced by the
local economic situation. Currently, the SC has about 20 employees in its
business operations. Head by Manimekalar, the SC's management capability is
average.
During the financial year 2005, the SC's turnover grew by 3.6% from
RM8,808,167 to RM9,127,564 whilst its pre-tax profit rose 60.67% to RM42,438.
However, the SC has generated an unfavourable return on shareholders' funds
which indicated that the SC was inefficient in utilising its shareholders'
funds to generate return. However, the SC has an acceptable liquid ratio and it
should be able to meet all its short term obligations. A low gearing ratio has
minimised its financial risk. Overall, the financial standing of the SC is
limited.
Investigation revealed that the SC's supplies are sourced locally and
imported from overseas countries such as
Based on the historical financial data, we concluded that the SC's
payment record is average.
In line with the robust growth in the telecommunication industry, the
demand for the SC's products and services are on the rise. However, being in a
competitive industry involving a large number of well-established players, the SC faces stiff competition in
capturing higher market shares.
In view of the above, we only recommend credit be granted to the SC with
guarantee.
THE FINANCIAL STATEMENTS
WERE PREPARED IN ACCORDANCE WITH
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-December-2005
MAY
EXIM SDN BHD
2005 2004
MYR MYR
TURNOVER 9,127,564 8,808,167
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PROFIT/(LOSS) FROM OPERATIONS 42,438 26,413
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
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PROFIT/(LOSS)
BEFORE TAXATION 42,438 26,413
Taxation <15,120> <10,797>
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PROFIT/(LOSS)
AFTER TAXATION 27,318 15,616
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 27,318 15,616
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PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 27,318 15,616
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported 14,896 28,080
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As restated 14,896 28,080
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PROFIT
AVAILABLE FOR APPROPRIATIONS 42,214 43,696
DIVIDENDS -
Ordinary (paid & proposed) <28,800> <28,800>
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RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 13,414 14,896
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RETAINED BY: The Company 13,414 14,896
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13,414 14,896
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INTEREST
EXPENSE (as per notes to P&L)
Bank
overdraft 7,496 3,188
Hire purchase 17,284 13,453
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24,780 16,641
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BALANCE SHEET
As At 31-December-2005
MAY EXIM SDN BHD
2005 2004
MYR MYR
ASSETS
EMPLOYED:
FIXED ASSETS 153,365 205,925
LONG
TERM INVESTMENTS/OTHER ASSETS
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INTANGIBLE
ASSETS
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TOTAL LONG
TERM ASSETS 153,365 205,925
CURRENT
ASSETS
Stocks 1,721,027 1,434,111
Trade debtors 571,700 556,009
Short term
deposits 926,685 -
Items in
transit between head office & branches
Amount due
from director 530,330 -
Cash &
bank balances 75,145 27,249
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TOTAL CURRENT
ASSETS 3,824,887 2,017,369
CURRENT
LIABILITIES
Other
creditors & accruals 14,897 155,280
Hire purchase
& lease creditors 45,376 45,595
Bank
overdraft 469,343 99,100
Other
borrowings 55,366 -
Bill &
acceptances payable 1,300,000 300,000
Provision for
taxation 3,865 10,297
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TOTAL CURRENT
LIABILITIES 1,888,847 610,272
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NET CURRENT
ASSETS/(LIABILITIES) 1,936,040 1,407,097
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TOTAL NET
ASSETS 2,089,405 1,613,022
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FINANCED
BY:
SHARE CAPITAL
Ordinary
share capital 2,000,000 400,000
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TOTAL SHARE
CAPITAL 2,000,000 400,000
RESERVES
Retained profit/(Accumulated loss) carried
forward 13,414 14,896
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TOTAL
RESERVES 13,414 14,896
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SHAREHOLDERS'
FUNDS/EQUITY 2,013,414 414,896
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Hire purchase
creditors 75,991 127,408
amount owing
to director - 1,070,718
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 75,991 1,198,126
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2,089,405 1,613,022
=========== ===========
FINANCIAL
RATIOS
As At 31-December-2005
MAY EXIM SDN BHD
2005 2004
MYR MYR
TYPES OF
FUNDS
Cash 1,001,830 27,249
Net Liquid
Funds 532,487 <71,851>
Net Liquid
Assets 215,013 <27,014>
Net Current
Assets/(Liabilities) 1,936,040 1,407,097
Net Tangible
Assets 2,089,405 1,613,022
Net Monetary
Assets 139,022 <1,225,140>
BALANCE
SHEET ITEMS
Total
Borrowings 646,076 272,103
Total
Liabilities 1,964,838 1,808,398
Total Assets 3,978,252 2,223,294
Net Assets 2,089,405 1,613,022
Net Assets
Backing 2,013,414 414,896
Shareholders''
Funds 2,013,414 414,896
Total Share
Capital 2,000,000 400,000
Total
Reserves 13,414 14,896
LIQUIDITY
(Times)
Cash Ratio 0.53 0.04
Liquid Ratio 1.11 0.96
Current Ratio 2.02 3.31
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 69 59
Debtors Ratio 23 23
Creditors
Ratio 0 0
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.32 0.66
Liabilities
Ratio 0.98 4.36
Times
Interest Earned Ratio 2.71 2.59
PERFORMANCE
RATIO (%)
Operating
Profit Margin 0.46 0.30
Net Profit
Margin 0.30 0.18
Return On Net
Assets 3.22 2.67
Return On
Capital Employed 2.58 2.45
Return On
Shareholders'' Funds/Equity 1.36 3.76
Dividend Pay
Out Ratio (Times) 1.05 1.84
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 |
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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%)