MIRA
INFORM REPORT
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Report Date : |
17.09.2007 |
IDENTIFICATION DETAILS
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Name : |
JAL DIAM SDN BHD |
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Registered Office : |
Cp 5-01, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
29/09/2001 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trading and Precious Stones, Shape 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 : |
Slow but 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 : 560270-K
COMPANY NAME : JAL DIAM SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 29/09/2001
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : CP 5-01, MENARA CITY ONE, 3 JALAN
MUNSHI ABDULLAH,
LEVEL
5, 50100
BUSINESS ADDRESS : 109, 23-3, JALAN PUTRA, 50350
TEL NO : 03 - 40472768
FAX NO : 03 - 40472769
CONTACT PERSON : JIGNESH RAMESH KUMAR JHAVERI (EXECUTIVE
DIRECTOR)
INDUSTRY CODE : 52392
PRINCIPAL ACTIVITY : TRADING AND PRECIOUS STONES, SHAPE OF
DIAMONDS
AUTHORISED CAPITAL : MYR5,000,000.00 DIVIDED INTO ORDINARY
SHARE
5,000,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR350,000.00 DIVIDED INTO ORDINARY
SHARE 350,000
CASH
OF MYR1.00 EACH.
SALES : MYR5,301,980 [2005]
NET WORTH : MYR407,883 [2005]
STAFF STRENGTH : 2
[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) trading and precious
stones, shape of diamonds.
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
MS. A MAHESWARY D/O S BLOCK C, C01-08,
ARJUNA + CONDOMINIUM,
JALAN BERHALA,
BRICKFIELDS,
50470
WILAYAH
MS. SITI SUHANA BTE 3432,
JALAN 18/60B,
MOHAMED OTHMAN 43400
SERDANG,
JIGNESH RAMESHKUMAR 109-23-3,
1/64D, OFF JALAN PUTRA, BISTARI Z012926 105,000
JHAVERI + CONDOMINIUM,
50350
[OLD P/P:Z1477237] WILAYAH
--------------------
350,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MS. A MAHESWARY D/O S ARJUNA
Address : BLOCK C, C01-08,
BRICKFIELDS,
50470
IC / PP No. : N/A
New IC No : 660818-10-6180
Date of Birth : 18/08/1966
Nationality : MALAYSIAN INDIAN
Date of Appointment : 29/09/2001
DIRECTOR 2
Name of Subject : JIGNESH RAMESHKUMAR JHAVERI
Address : 109-23-3, 1/64D, OFF JALAN PUTRA,
BISTARI CONDOMINIUM,
50350
IC / PP No. : Z012926
Date of Birth : 06/01/1973
Nationality : INDIAN
Remark : OLD P/P:Z1477237
DIRECTOR 3
Name of Subject : MS. INDRA DEVI D/O JAGASUNDARA BOSE
Address : 15, JALAN PERDANA 9/5, PANDAN
PERDANA, CHERAS, 55300
IC / PP No. : A2235281
New IC No : 720501-14-5810
Date of Birth : 01/05/1972
Nationality : MALAYSIAN INDIAN
MANAGEMENT
1) Name of Subject : JIGNESH
RAMESH KUMAR JHAVERI
Position : EXECUTIVE DIRECTOR
AUDITOR
Auditor : CHS TAN & CO
Auditors' Address : PUSAT DAGANGAN PHILEO DAMANSARA 2,
BLOCK A, JALAN 16/11,
OFF
JALAN DAMANSARA, 8TH FLOOR (UNIT A8-08), 46350 PETALING
JAYA,
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,
Date of Appointment : 29/09/2001
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)
No encumbrance was found in our databank at the time of investigation.
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 : 20%
Overseas : YES Percentage : 80%
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 [ ]
Fair [ X ] Poor [ ]
CLIENTELE
Local : YES Percentage : 100%
Domestic Markets :
Overseas : NO Percentage : 0
%
Credit Term : AS AGREED.
Payment Mode : CHEQUES, CASH.
Type of Customer : END USERS .
OPERATIONS
Goods Traded : PRECIOUS STONES, SHAPE OF DIAMONDS
Competitor(s) : TOMEI CONSOLIDATED BHD
WOO
HING BROTHERS (
PAJAK
GADAI THYE FOH SDN BHD
CHOPARD
(
TIME
GALERIE (M) SDN BHD
Ownership of premises : LEASED/RENTED
Total Number of Employees :
YEAR 2007 2006
GROUP N/A N/A
COMPANY 2 1
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 : 40472768
Current Telephone Number : 03-40472768
Match : YES
Address Provided By Client : 109, 23-3, JLN PUTRA, KL
Current Address : 109, 23-3, JALAN PUTRA, 50350
WILAYAH
Match : YES
Latest Financial Accounts : YES
Other Investigations
We contacted the SC's Director, Mr Jignesh, one of the SC's Director. He
provided some information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 2003-2005 ]
Profit / ( Loss ) before tax : Increased [ 2003-2005 ]
Return on Shareholder Funds : Unfavourable [ 6.80% ]
Return on Net Assets : Unfavourable [ 8.53% ]
The SC's turnover increased steadily as the demand for its products /
services increased due to the goodwill built up over the years. 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 [ 72 Days ]
Debtors Ratio : Unfavourable [ 161 Days ]
Creditors Ratio : Unfavourable [ 153 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 [ 0.78 Times ]
Current Ratio : Unfavourable [ 1.13 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 : Nil [ 0.00 Times ]
Gearing Ratio : Favourable [ 0.00 Times ]
The SC's interest cover was nil as it did not pay any interest during
the year. 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. The SC did not make any interest payment during the year. The SC
was dependent on its shareholders' funds to finance its business needs. The 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 arises.
Overall financial condition of the SC: FAIR
COMMENTS
Incorporated in 2001, as a private limited company, the SC is
principally engaged in the trading and precious stones. The SC also involved in
shape of diamonds. Over the years, the SC has started to stabilize itself in
the market. It should have a moderate clientele base in competing in this
market. With a small paid up capital of RM350,000, the SC may face difficulties
in expanding its business when the needs arise.
The SC's business operations are predominantly in
During the financial year 2005, the SC's turnover and pre-tax profit had
increased to RM5,301,980 and RM34,775 respectively. However, return on
shareholders' funds of the SC is low, indicating that the SC failed to generate
an acceptable amount of profit based on its shareholders' funds. Besides that,
due to its weak liquidity position, the SC faces problems in meeting its short
term obligations. Fortunately, being a zero geared company, the SC virtually
has no financial risk. The overall financial performance of the SC is fair.
We noted that only 20% of the SC's products are sourced locally whilst the
rest are import from overseas market. As an import-oriented company, the SC
faces foreign exchange risk.
Based on its financial historical data, the SC's payment record is fair.
This may jeopardized the relationship with its suppliers if the SC is unable to
pay them on time. The SC is clear of litigation.
The industry continues to be attractive with encouraging global and
domestic demand for its products. With the promising outlook of the industry,
the SC should be able to further enhance its business. As a small entity, the
SC is required to adopt more competitive strategies to strengthen its position
in the market.
In view of the above, we recommend credit be granted to the SC with
close monitoring.
THE FINANCIAL
STATEMENTS WERE PREPARED
IN ACCORDANCE WITH
STANDARD.
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-December-2005
JAL
DIAM SDN BHD
2005 2004 2003
MYR MYR MYR
TURNOVER 5,301,980 4,975,033 3,338,745
=========== =========== ===========
PROFIT/(LOSS) FROM OPERATIONS 34,775 25,354 10,643
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
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PROFIT/(LOSS)
BEFORE TAXATION 34,775 25,354 10,643
Taxation <7,036> <5,307> <2,028>
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PROFIT/(LOSS)
AFTER TAXATION 27,739 20,047 8,615
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 27,739 20,047 8,615
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PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 27,739 20,047 8,615
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported 30,144 10,097 1,482
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As restated 30,144 10,097 1,482
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PROFIT
AVAILABLE FOR APPROPRIATIONS 57,883 30,144 10,097
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RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 57,883 30,144 10,097
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RETAINED BY:
The Company 57,883 30,144 10,097
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57,883 30,144 10,097
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INTEREST
EXPENSE (as per notes to P&L)
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BALANCE SHEET
As
At 31-December-2005
2005 2004 2003
MYR MYR MYR
ASSETS
EMPLOYED:
FIXED ASSETS 26,652 24,909 27,460
LONG TERM
INVESTMENTS/OTHER ASSETS
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INTANGIBLE
ASSETS
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TOTAL LONG
TERM ASSETS 26,652 24,909 27,460
CURRENT
ASSETS
Stocks 1,044,960 1,032,971 586,982
Trade debtors 2,331,832 1,836,920 1,347,103
Other
debtors, deposits & prepayments 3,750 3,750 9,250
Items in
transit between head office & branches
Cash &
bank balances 50,138 142,101 62,607
------------------- ------------------- -------------------
TOTAL CURRENT
ASSETS 3,430,680 3,015,742 2,005,942
CURRENT
LIABILITIES
Trade
creditors 2,218,473 1,898,085 1,488,784
Other
creditors & accruals 17,425 13,803 8,680
Amounts owing
to director 806,515 744,724 173,725
Provision for
taxation 7,036 3,895 2,116
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TOTAL CURRENT
LIABILITIES 3,049,449 2,660,507 1,673,305
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NET CURRENT
ASSETS/(LIABILITIES) 381,231 355,235 332,637
------------------- ------------------- -------------------
TOTAL NET
ASSETS 407,883 380,144 360,097
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FINANCED
BY:
SHARE CAPITAL
Ordinary
share capital 350,000 350,000 350,000
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TOTAL SHARE
CAPITAL 350,000 350,000 350,000
RESERVES
Retained
profit/(Accumulated loss) carried forward 57,883 30,144
10,097
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TOTAL
RESERVES 57,883 30,144 10,097
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SHAREHOLDERS'
FUNDS/EQUITY 407,883 380,144 360,097
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
------------------- ------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
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407,883 380,144 360,097
=========== =========== ===========
FINANCIAL RATIOS
As
At 31-December-2005
2005 2004 2003
MYR MYR MYR
TYPES OF
FUNDS
Cash 50,138 142,101 62,607
Net Liquid
Funds 50,138 142,101 62,607
Net Liquid
Assets <663,729> <677,736> <254,345>
Net Current
Assets/(Liabilities) 381,231 355,235 332,637
Net Tangible
Assets 407,883 380,144 360,097
Net Monetary
Assets <663,729> <677,736> <254,345>
BALANCE
SHEET ITEMS
Total
Borrowings 0 0 0
Total
Liabilities 3,049,449 2,660,507 1,673,305
Total Assets 3,457,332 3,040,651 2,033,402
Net Assets 407,883 380,144 360,097
Net Assets
Backing 407,883 380,144 360,097
Shareholders''
Funds 407,883 380,144 360,097
Total Share
Capital 350,000 350,000 350,000
Total
Reserves 57,883 30,144 10,097
LIQUIDITY
(Times)
Cash Ratio 0.02 0.05 0.04
Liquid Ratio 0.78 0.75 0.85
Current Ratio 1.13 1.13 1.20
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 72 76 64
Debtors Ratio 161 135 147
Creditors
Ratio 153 139 163
SOLVENCY
RATIOS (Times)
Gearing Ratio 0 0 0
Liabilities
Ratio 7.48 7.00 4.65
Times
Interest Earned Ratio 0 0 0
PERFORMANCE
RATIO (%)
Operating
Profit Margin 0.66 0.51 0.32
Net Profit
Margin 0.52 0.40 0.26
Return On Net
Assets 8.53 6.67 2.96
Return On
Capital Employed 8.53 6.67 2.96
Return On
Shareholders'' Funds/Equity 6.80 5.27 2.39
Dividend Pay
Out Ratio (Times) 0 0 0
NOTES
TO ACCOUNTS
Contingent
Liabilities 0 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. |
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%)