MIRA
INFORM REPORT
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Report Date : |
05.09.2007 |
IDENTIFICATION DETAILS
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Name : |
BABA PRODUCTS (M) SDN BHD |
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Registered Office : |
Lot 46911, Block C, Taman |
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Country : |
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Financials (as on) : |
28.02.2006 |
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Date of Incorporation : |
24/10/1990 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Distributor of Curry Powder and Powdered Food Product |
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. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
* Adopted abbreviations : SC - Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 206780-X
COMPANY NAME : BABA PRODUCTS (M) SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 24/10/1990
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : LOT 46911, BLOCK C,
68100
BUSINESS ADDRESS : BLOCK C, LOT 46911,
68100
TEL NO : 03 - 61371514
FAX NO : 03 - 61387809/4053
EMAIL : babas@babas.com.my
WEB SITE : www.babas.com.my
CONTACT PERSON : PAGALAVAN A/L RANGASAMY (MANAGING DIRECTOR)
INDUSTRY CODE : 15494 15312
PRINCIPAL ACTIVITY : MANUFACTURER, DISTRIBUTOR OF CURRY POWDER AND
POWDERED FOOD PRODUCT
AUTHORISED CAPITAL : MYR10,000,000.00 DIVIDED INTO ORDINARY SHARE
10,000,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR10,000,000.00 DIVIDED INTO ORDINARY SHARE 500,000
CASH AND 9,500,000 OTHERWISE OF MYR1.00 EACH.
SALES : MYR118,462,779 [2006]
NET WORTH : MYR57,294,435 [2006]
STAFF STRENGTH : 514 [2007]
BANKER (S) : UNITED OVERSEAS BANK (
LITIGATION : CLEAR
FINANCIAL CONDITION : POOR
PAYMENT : N/A
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
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) manufacturer, distributor of curry powder and powdered food product.
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. PAGALAVAN S/O C 41, JALAN SJ 22,
RANGASAMI +
[APPOINTED AS MD ON
01/05/1992]
MS. RAJASULOCHANA W/O 41, JALAN SJ 22,
PAGALAVAN +
--------------------
10,000,000
===========
+
Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. PAGALAVAN S/O C RANGASAMI
Address : 41, JALAN SJ 22, TAMAN SELAYANG JAYA,
IC / PP No. : 7855530
New IC No : 471123-71-5139
Date of Birth : 23/11/1947
Nationality : MALAYSIAN INDIAN
Date of Appointment : 24/10/1990
Remark : APPOINTED AS MD ON 01/05/1992
DIRECTOR 2
Name of Subject : MS. RAJASULOCHANA W/O PAGALAVAN
Address : 41, JALAN SJ 22, TAMAN SELAYANG JAYA,
IC / PP No. : 8316651
New IC No : 580106-71-5068
Date of Birth : 06/01/1958
Nationality : MALAYSIAN CHINESE
Date of Appointment : 24/10/1990
DIRECTOR 3
Name of Subject : MR. SURESH S/O PAGALAVAN
Address : 41, JALAN SJ 22, TAMAN SELAYANG JAYA,
68100
IC / PP No. : N/A
New IC No : 781030-14-5417
Date of Birth : 30/10/1978
Nationality : MALAYSIAN INDIAN
Date of Appointment : 03/10/2001
Remark : ALT DIR TO PAGALAVAN
DIRECTOR 4
Name of Subject : MR. REGU S/O PAGALAVAN
Address : 41, JALAN SJ 22, TAMAN SELAYANG JAYA,
68100
IC / PP No. : N/A
New IC No : 800719-14-5645
Date of Birth : 19/07/1980
Nationality : MALAYSIAN INDIAN
Date of Appointment : 27/12/2001
Remark : ALT DIR TO RAJASULOCHANA
MANAGEMENT
1) Name of Subject : PAGALAVAN A/L RANGASAMY
Position : MANAGING DIRECTOR
2) Name of Subject : ALAGARSAMY A/L KALIMUTHU
Position : FINANCE MANAGER
3) Name of Subject : SIVASUBRAMANIAM A/L KARUPPAIH
Position : OPERATIONS MANAGER
AUDITOR
Auditor : VELOO & CO
Auditors' Address : BLOCK A, WISMA YAKIN, JALAN MASJID
COMPANY SECRETARY
1) Company Secretary : MR. PUSPA DAS S/O MARIA SANJIVI
IC / PP No. : 3677496
New IC No. : 400626-10-5449
Address : 142, JALAN BUKIT DESA 5,
52100
Date of Appointment : 24/10/1990
BANKING
Banking relations are maintained principally with :
1) Banker Name : UNITED
OVERSEAS BANK (
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 May 1991
Description of Charge : OPEN CHARGE
Amount Secured : O/D
Description of Property Affected : FIXED & FLOATING CHARGE
Name & Address of Chargee : OVERSEAS UNION BANK LTD
Form 40 Dated
Registered and Numbered 1 In The Register of Charges
ENCUMBRANCE 2
Date of Creation : 12 Jun 1995
Description of Charge : CHARGE & DEBENTURE
Amount Secured : RM 4,510,000.00
Description of Property Affected : HS(D) 16878 LOT 46911 (PT 16418), MK BT, DIST GOMBAK,
SELANGOR
G29075
FIXED & FLOATING CHARGE
Name & Address of Chargee : UNITED
OVERSEAS BANK (
Form 40 Dated 08 Jul 1995
Registered and Numbered 2 In The Register of Charges
ENCUMBRANCE 3
Date of Creation : 26 May 2000
Description of Charge : OPEN CHARGE
Amount Secured : O/D
Description of Property Affected : N/A
Name & Address of Chargee : UNITED
OVERSEAS BANK (
Form 40 Dated
Registered and Numbered 3 In The Register of Charges
ENCUMBRANCE 4
Date of Creation : 31 Jan 2002
Description of Charge : OPEN CHARGE
Amount Secured : O/D
Description of Property Affected : HS(D) 21844-21847, PT 6614-6617, MK RAWANG, DIST
GOMBAK, SELANGOR
Name & Address of Chargee : UNITED
OVERSEAS BANK (
Form 40 Dated 21 Oct 2002
Registered and Numbered 5 In The Register of Charges
ENCUMBRANCE 5
Date of Creation : 20 Apr 2004
Description of Charge : N/A
Amount Secured : RM 270,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : UNITED
OVERSEAS BANK (
Form 40 Dated
Registered and Numbered 6 In The Register of Charges
ENCUMBRANCE 6
Date of Creation : 20 Apr 2004
Description of Charge : N/A
Amount Secured : RM 27,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : UNITED
OVERSEAS BANK (
Form 40 Dated
Registered and Numbered 7 In The Register of Charges
ENCUMBRANCE 7
Date of Creation : 20 Apr 2004
Description of Charge : N/A
Amount Secured : RM 27,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : UNITED
OVERSEAS BANK (
Form 40 Dated
Registered and Numbered 8 In The Register of Charges
ENCUMBRANCE 8
Date of Creation : 20 Apr 2004
Description of Charge : OPEN CHARGE
Amount Secured : O/D
Description of Property Affected : N/A
Name & Address of Chargee : UNITED
OVERSEAS BANK (
Form 40 Dated
Registered and Numbered 9 In The Register of Charges
ENCUMBRANCE 9
Date of Creation : 20 Apr 2004
Description of Charge : N/A
Amount Secured : RM 27,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : UNITED
OVERSEAS BANK (
Form 40 Dated
Registered and Numbered 10 In The Register of Charges
ENCUMBRANCE 10
Date of Creation : 20 Apr 2004
Description of Charge : N/A
Amount Secured : RM 27,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : UNITED
OVERSEAS BANK (
Form 40 Dated
Registered and Numbered 11 In The Register of Charges
ENCUMBRANCE 11
Date of Creation : 20 Apr 2004
Description of Charge : N/A
Amount Secured : RM 27,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : UNITED
OVERSEAS BANK (
Form 40 Dated
Registered and Numbered 12 In The Register of Charges
ENCUMBRANCE 12
Date of Creation : 28 Sep 2004
Description of Charge : N/A
Amount Secured : RM 2,360,000.00
Description of Property Affected : N/A
Name & Address of Chargee : AFFIN BANK BHD
Form 40 Dated
Registered and Numbered 13 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.
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 : 50%
Overseas : YES Percentage : 50%
Import Countries : ASIA,
CLIENTELE
Local : YES Percentage : 60%
Domestic Markets :
Overseas : YES Percentage : 40%
Export Market :
Credit Term : 30 - 60 DAYS.
Payment Mode : CHEQUES , TELEGRAPHIC TRANSFER (TT) , LETTER OF CREDIT (LC).
Type of Customer : DISTRIBUTORS , DEALERS , AGENTS .
OPERATIONS
Products Manufactured : CURRY POWDER, SPICES AND GRAIN MILL PRODUCTS
Brand Name : BABA'S
Competitor(s) : GABAN SPICE MANUFACTURING (M) SDN BHD
BESTA CORPORATION SDN BHD
ADABI CONSUMER INDUSTRIES SDN BHD
S.M.N. FOODS (M) SDN BHD
ALAGAPPA FLOUR MILLS SDN BHD
Member(s) / Affiliate(s) : FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)
Total Number of Employees :
YEAR 2007
GROUP N/A
COMPANY 514
Branch : YES
No of Branches : 1
Branch(es) : 9 JALAN 11A, SELAYANG BARU, 68100
Tel No : 03 - 61385955
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 : 03-61371514
Match : N/A
Address Provided By Client : BLOCK C, LOT 46911,
68100
Current Address : BLOCK C, LOT 46911,
68100
Match : YES
Latest Financial Accounts : YES
Other Investigations
We contacted one of the Senior staff from the Sales Department. She provided some information on the SC.
On the same day we contacted another Supervisor from the Production for more information on the SC.
FINANCIAL COMMENTS
The financial summary of the SC in Year 2006 showed that it was financially poor. The SC has generated an unfavourable return on its shareholders' funds, indicating that the SC did not generate an acceptable amount of profits based on its existing shareholders' funds. Beside this 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 has high liabilities ratio and it may face financial difficulties if no additional capital is injected.
Overall financial condition of the SC: POOR
COMMENTS
Established in 1990, the SC is principally engaged as a manufacturer, distributor of curry powder and powdered food products. 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. With RM10 million in issued and paid up capital, the SC has the potential of capturing a higher market shares as it is competing aggressively in the market.
Over the years, the SC
has established an extensive clientele base in the market. Besides
catering to the local market, the SC has penetrated into other countries such
as
Referring to the financial statements as at 28 February 2006, the SC reported pre-tax profit of RM5.52 million on the back of RM118.46 million in turnover. 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. Moreover, the SC is in weak liquidity position with its current liabilities well exceeding its current assets. Thus, it may face difficulties in meeting its short term obligations if no short term loan is obtained or additional capital injected. Beside this, the SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Nonetheless, with the comfortable networth standing at RM57.29 million, the SC is able to sustain its business performance in the near terms.
The SC sources its raw materials from both local and overseas suppliers. Being involved in import and export activities, the SC might be exposed to foreign currency fluctuation risk.
The rising population, improvement in quality of life and higher propensity to consume will further increase the demand for food products. We believe that the encouraging demand for the SC's products would present more business opportunities for the SC. However, the SC is facing increasing competition from other companies. Hence, the SC should improve its management capability and explore more new market segments in order to have a stable standing in the industry.
In view of the above we recommend credit be granted to the SC with monitoring.
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH
PROFIT
AND LOSS ACCOUNT
BABA
PRODUCTS (M) SDN BHD
28-February-2006
Consolidated
Accounts : No
UnQualified
Reports : Yes
RM
Turnover 118,462,779.00
Operating
Revenue 0.00
----------------------------
Profit
/ (Loss) Before Tax 5,522,292.00
----------------------------
Profit
/ (Loss) After Tax 4,546,254.00
Extraordinary
Item 0.00
Minority
Interest 0.00
----------------------------
Profit/(Loss)
Attributable to Shareholders 4,546,254.00
----------------------------
Prior
Period Adjustment 0.00
Net
Dividend 2,000,000.00
Transferred
To/From Reserved 0.00
Others 0.00
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Unappropriated
Profit/(Loss) Brought Forward 44,748,181.00
----------------------------
Unappropriated
Profit/(Loss) Carried Forward 47,294,435.00
================
BALANCE SHEET
BABA
PRODUCTS (M) SDN BHD
28-February-2006
Consolidated
Accounts : No
UnQualified
Reports : Yes
RM
Fixed
Assets 102,377,260.00
Total
Investment 0.00
Amount
Owing By 0.00
Current
Assets 21,958,795.00
Intangible
Assets 0.00
Other
Assets 0.00
----------------------------
Total
Assets 124,336,055.00
================
Working
Capital <
7,050,878.00 >
Issued
Capital 10,000,000.00
Paid
Up Capital 10,000,000.00
Share
Premium & Reserved 0.00
Unappropriated
Profit/(Loss) 47,294,435.00
----------------------------
Shareholder's
Fund/Equity 57,294,435.00
----------------------------
Current
Liabilities 29,009,673.00
Amount
Owing To 0.00
Long-term
and Deferred Liabilities 38,031,947.00
Share
Application Account 0.00
Minority
Interest 0.00
----------------------------
Total
Equity Liability 124,336,055.00
================
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 |
|
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 |
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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 |
|
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%)