MIRA
INFORM REPORT
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Report Date : |
07.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
MINIDECO SDN BHD |
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Registered Office : |
Menara City One, 3 Jalan Munshi Abdullah, Level 5, 50100 Kuala Lumpur, Wilayah Persekutuan |
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Country : |
Malaysia |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
31.12.1997 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Wholesaler of Diamonds |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 : |
No Complaints |
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Litigation : |
Clear |
EXECUTIVE SUMMARY
LOCAL NO : 456083-X
COMPANY
NAME : MINIDECO SDN BHD
FORMER
NAME : N/A
INCORPORATION
DATE : 31/12/1997
COMPANY
STATUS : EXIST
LEGAL
STATUS : PRIVATE LIMITED COMPANY
LISTED
STATUS : NO
REGISTERED ADDRESS : MENARA CITY
ONE, 3 JALAN MUNSHI ABDULLAH, LEVEL 5,
50100
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
BUSINESS
ADDRESS : MENARA BANGSAR, BLOCK A, UNIT 299-4-4, JALAN
MAAROF,
BANGSAR,
59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
TEL
NO : 03 - 20961230
FAX
NO : 03 - 20947326
CONTACT
PERSON : UJJWAL MEHTA (MANAGING DIRECTOR)
INDUSTRY CODE : 51393
PRINCIPAL
ACTIVITY : WHOLESALER OF DIAMONDS
AUTHORISED CAPITAL : MYR500,000.00
DIVIDED INTO
ORDINARY
SHARE 500,000 OF MYR1.00 EACH.
ISSUED
AND PAID UP CAPITAL : MYR500,000.00 DIVIDED INTO
ORDINARY
SHARE 500,000 CASH OF MYR1.00 EACH.
SALES : MYR4,679,475
[2005]
NET
WORTH : MYR680,062
[2005]
STAFF STRENGTH : 1
[2007]
BANKER
(S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL
CONDITION : FAIR
PAYMENT : FAIR
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) wholesaler of
diamonds.
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
MS. ROKMINI BTE MASIRANG +AG1-3, JALAN PANDAN INDAH 3/3, PANDAN 10617006 350,000
INDAH, 55100 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
UJJWAL MEHTA + BLOK A299-4-4, MENARA
BANGSAR, JALAN 10641181 150,000
[APPOINTED AS MD ON
MAAROF, BANGSAR, 59100 KUALA LUMPUR, Z1415601
2/2/2000] WILAYAH PERSEKUTUAN, MALAYSIA.
--------------------
500,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MS.
ROKMINI BTE MASIRANG
Address :
AG1-3, JALAN PANDAN INDAH 3/3, PANDAN INDAH, 55100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No. :
N/A
New IC No :
770702-12-5686
Date of Birth :
02/07/1977
Nationality :
MALAYSIAN MALAY
Date of Appointment :
15/12/2004
DIRECTOR 2
Name of Subject :UJJWAL
MEHTA
Address :
BLOK A299-4-4, MENARA BANGSAR, JALAN MAAROF, BANGSAR,
59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No. :
Z1415601
Date of Birth :
05/04/1975
Nationality :
INDIAN
Date of Appointment :
20/11/1998
Remark :
APPOINTED AS MD ON 2/2/2000
DIRECTOR 3
Name of Subject :MR.
BALA SUBRAMANIAN A/L MUTHAIAH
Address :
14, JALAN 18/48, TAMAN SENTUL JAYA, 51000 KUALA LUMPUR,
WILAYAH
PERSEKUTUAN, MALAYSIA.
IC / PP No. :
A1693556
New IC No :
701013-10-6173
Date of Birth :
13/10/1970
Nationality :
MALAYSIAN INDIAN
DIRECTOR 4
Name of Subject : PRINCE
SANCHETI
Address :
BLOCK A299-4-4, MENARA BANGSAR, JALAN MAAROF,
BANGSAR, 59100 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
IC / PP No. :
E1757269
Date of Birth :
24/11/1983
Nationality :
INDIAN
MANAGEMENT
1) Name of Subject : UJJWAL MEHTA
Position : MANAGING
DIRECTOR
AUDITOR
Auditor :
CHS TAN & CO
Auditors' Address : PUSAT
DAGANGAN PHILEO DAMANSARA 2, BLOCK A, UNIT A8-08,
JALAN 16/11, OFF JALAN DAMANSARA, 8TH FLOOR,
46350 PETALING
JAYA, SELANGOR, MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MR. M RAMANATHAN S/O S M MEYYAPPAN
IC / PP No. : 6057502
New IC No. : 600923-10-6815
Address : 15, JALAN DATO' ABDUL
AZIZ 14/29, 46100 PETALING JAYA,
SELANGOR, MALAYSIA.
Date of Appointment : 10/08/2000
BANKING
Banking relations are maintained principally with :
1) 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 : 03
Aug 2007
Description of Charge :
MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT,
NEGOTIABLE OF CERTIFICATE OF DEPOSIT (1ST
PARTY) &
LETTER OF SETOFF
Amount Secured :
RM 800,000.00
Description of Property Affected :
ALL ASSETS OF THE COMPANY
Name & Address of Chargee :
MALAYAN BANKING BHD
JALAN TUN PERAK BUSINESS CENTRE, MENARA
MAYBANK, WEST WING, 100 JALAN TUN PERAK, 37TH
FLOOR, 50050 KUALA LUMPUR, WILAYAH
PERSEKUTUAN,
MALAYSIA.
Form 40 Dated 13 Aug 2007
Registered and Numbered 1 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
Import Countries : INDIA.
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 [ ]
Fair [ X ] Poor [ ]
CLIENTELE
Local :
YES Percentage : 100%
Domestic Markets :
MALAYSIA.
Overseas : NO Percentage :
0 %
Credit Term : AS
AGREED.
Payment Mode : CASH,
CHEQUES.
Type of Customer :
JEWELLERY SHOP , AGENTS .
OPERATIONS
Goods Traded :
DIAMONDS
Competitor(s) :
PUSAT EMAS & PERMATA AHMAD ISMAIL SDN BHD
KAH HONG TRADING SDN BHD
POH KONG JEWELLERS SDN BHD
MMC (1976) BHD
MALAYSIAN INDUSTRIAL DIAMOND &
SYNTHESIZING SDN BHD
Ownership of premises :
LEASED/RENTED
Total Number of Employees:
YEAR 2007 2006
GROUP N/A N/A
COMPANY 1 2
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 : 03-20961230
Match
: N/A
Address Provided By Client : BLOCK A, 299-4-4 MENARA BANGSAR,
JALAN
MAAROF, BANGSAR 59100 KUALA LUMPUR
Current Address :
MENARA BANGSAR, BLOCK A,UNIT 299-4-
4,JALA MAAROF, BANGSAR, 59100 KUALA LUMPUR WILAYAH PERSEKUTUAN,
MALAYSIA.
Match : YES
Latest Financial Accounts
: YES
Other Investigations
We conducted an interview with Mr. Ujjwal Mehta the SC's Managing
Director. He revealed some information pertaining to the SC.
FINANCIAL COMMENTS
Profitability :
Turnover :
Increased [ 1.96% ]
Profit / ( Loss ) before tax :
Increased [ 20.66% ]
Return on Shareholder Funds :
Unfavourable [ 8.20% ]
Return on Net Assets : Acceptable [ 10.96% ]
The higher turnover could be attributed to the favourable market
condition. The SC's management have been efficient in controlling its operating
costs. 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 [ 111 Days ]
Debtors Ratio :
Unfavourable [ 144 Days ]
Creditors Ratio :
Unfavourable [ 159 Days ]
The SC could be incurring higher holding cost. As its capital was tied
up in stocks, it could face liquidity problems. The SC's debtors ratio was
high. The SC should tighten its credit control and improve its collection
period. The unfavourable creditors' ratio could be due to the SC taking
advantage of the credit granted by its suppliers. However this may affect the
goodwill between the SC and its suppliers and the SC may inadvertently have to
pay more for its future supplies.
Liquidity
Liquid Ratio :
Unfavourable [ 0.75 Times ]
Current Ratio :
Unfavourable [ 1.23 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 :
Favourable [ 33.07 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. 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. With the favourable interest cover,
the SC could be able to service all the accrued interest without facing any
difficultiesThe SC was a zero gearing company, it was solely dependant on its
shareholders to provide funds to finance its business. The SC has good chance
of getting loans, if the needs arise.
Overall financial condition of
the SC
FAIR
COMMENTS
Established in 1997, the SC is principally engaged as a wholesaler of
diamonds. As a private limited company, the SC has a paid up capital of RM500,000.
With a small paid up capital, the SC may face difficulties in expanding its
business when the needs arise. Having been in the industry for almost 10 years,
the SC should have built up its reputation and image in the market. We
considered that the SC's business position in the market is much dependent on
the abilities of its shareholders.
Our investigation revealed that the SC only serves local customers. This
narrow market segment limit sits business expansion opportunities and lowers
its growth prospect. Being dependent on one market segment, the SC may lose its
competitiveness against other export-oriented companies. As the SC's products
are recognised as luxury items, it faces high business risk. The SC is
recognised as a small entity with a work force of 1 employee in the operations.
Overall, the SC's management capability is considered average.
During the financial year 2005, the SC's turnover and pre-tax profit had
increased to RM4,679,475 and RM72,311 respectively. Return on shareholders' funds
of the SC is relatively low, indicating that the SC's management was
inefficient in utilising its funds to generate return. Besides that, the SC is
in a weak liquidity position. It may face working capital deficiency in meeting
its short term obligations.
Fortunately, a zero gearing ratio has placed the SC at low financial
risk. The overall financial performance of the SC is fair.
We noted that the SC sources its products locally and also from overseas
market. Being involved in import activities, the SC is exposed to foreign
exchange risk.
Based on its financial historical data, the SC's payment record is fair.
The SC should paid its suppliers on time in order to maintain good relationship
with its suppliers. There are no legal suit against the SC.
The spending spree is expected to continue in year 2007. With this
promising outlook of the industry, the SC's business potential should be
favourable. However, being a small entity, the SC faces keen competition from
other well established players in the same field.
In view of the above, we only recommend credit be granted to the SC with
close monitoring.
THE FINANCIAL STATEMENTS WERE PREPARED IN
ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
PROFIT AND LOSS ACCOUNT
For The Year Ended 31-December-2005
MINIDECO SDN BHD
2005 2004
MYR MYR
TURNOVER 4,679,475 4,589,690
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PROFIT/(LOSS) FROM OPERATIONS 72,311 59,930
SHARE
OF PROFITS/(LOSSES) OF ASSOCIATED
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PROFIT/(LOSS)
BEFORE TAXATION 72,311 59,930
Taxation <16,573> <13,460>
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PROFIT/(LOSS)
AFTER TAXATION 55,738 46,470
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 55,738 46,470
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PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 55,738 46,470
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As
previously reported 124,324 77,854
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As
restated 124,324 77,854
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PROFIT
AVAILABLE FOR APPROPRIATIONS 180,062 124,324
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RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 180,062 124,324
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RETAINED BY:
The Company 180,062 124,324
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180,062 124,324
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INTEREST
EXPENSE (as per notes to P&L)
Hire
purchase 2,255 2,256
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2,255 2,256
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BALANCE SHEET
As At 31-December-2005
MINIDECO SDN BHD
2005 2004
MYR MYR
ASSETS
EMPLOYED:
FIXED
ASSETS 7,003 22,686
LONG
TERM INVESTMENTS/OTHER ASSETS
------------------- -------------------
INTANGIBLE
ASSETS
------------------- -------------------
------------------- -------------------
TOTAL
LONG TERM ASSETS 7,003 22,686
CURRENT
ASSETS
Stocks 1,426,530 1,635,520
Trade
debtors 1,841,041 2,113,576
Other
debtors, deposits & prepayments 16,000 71,014
Short
term deposits 300,000 -
Items
in transit between head office & branches
Cash
& bank balances 44,255 18,558
------------------- -------------------
TOTAL
CURRENT ASSETS 3,627,826 3,838,668
CURRENT
LIABILITIES
Trade
creditors 2,038,576 2,668,398
Other
creditors & accruals 23,350 11,750
Hire
purchase & lease creditors 2,250 9,000
Amounts
owing to director 535,847 539,218
Provision
for taxation 11,958 6,414
trust
receipts 342,786 -
------------------- -------------------
TOTAL
CURRENT LIABILITIES 2,954,767 3,234,780
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NET
CURRENT ASSETS/(LIABILITIES) 673,059 603,888
------------------- -------------------
TOTAL
NET ASSETS 680,062 626,574
=========== ===========
FINANCED BY:
SHARE
CAPITAL
Ordinary
share capital 500,000 500,000
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TOTAL
SHARE CAPITAL 500,000 500,000
RESERVES
Retained profit/(Accumulated loss) carried
forward 180,062 124,324
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TOTAL
RESERVES 180,062 124,324
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SHAREHOLDERS'
FUNDS/EQUITY 680,062 624,324
LONG
TERM & DEFERRED LIABILITIES & PROVISIONS
Hire
purchase creditors - 2,250
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS - 2,250
------------------- -------------------
680,062 626,574
=========== ===========
FINANCIAL RATIOS
As At 31-December-2005
2005 2004
MYR MYR
TYPES OF
FUNDS
Cash 344,255 18,558
Net Liquid Funds 344,255 18,558
Net Liquid
Assets <753,471> <1,031,632>
Net Current
Assets/(Liabilities) 673,059 603,888
Net Tangible
Assets 680,062 626,574
Net Monetary
Assets <753,471> <1,033,882>
BALANCE
SHEET ITEMS
Total
Borrowings 2,250 11,250
Total Liabilities 2,954,767 3,237,030
Total Assets 3,634,829 3,861,354
Net Assets 680,062 626,574
Net Assets
Backing 680,062 624,324
Shareholders''
Funds 680,062 624,324
Total Share
Capital 500,000 500,000
Total
Reserves 180,062 124,324
LIQUIDITY
(Times)
Cash Ratio 0.12 0.01
Liquid Ratio 0.74 0.68
Current Ratio 1.23 1.19
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 111 130
Debtors Ratio 144 168
Creditors
Ratio 159 212
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.00 0.02
Liabilities
Ratio 4.34 5.18
Times
Interest Earned Ratio 33.07 27.56
PERFORMANCE
RATIO (%)
Operating
Profit Margin 1.55 1.31
Net Profit
Margin 1.19 1.01
Return On Net
Assets 10.96 9.92
Return On
Capital Employed 10.93 9.78
Return On
Shareholders'' Funds/Equity 8.20 7.44
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. |
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%)