MIRA
INFORM REPORT
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Report Date : |
26.09.2007 |
IDENTIFICATION DETAILS
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Name : |
ASASRAMA SDN BHD |
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Registered Office : |
40, Jalan Tunku Abdul Halim, 05100 Alor Setar, Kedah |
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Country : |
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Financials (as on) : |
31.01.2005 |
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Date of Incorporation : |
03/09/1992 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Recycling of Waste Plastic and Fibre |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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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 : 248228-A
COMPANY NAME : ASASRAMA SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 03/09/1992
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : 40, JALAN TUNKU ABDUL HALIM, 05100 ALOR SETAR,
BUSINESS ADDRESS :
MERU, BUKIT KAPAR, 42200 KLANG, SELANGOR,
TEL NO : 03 - 33929988
FAX NO : 03 - 33928989
CONTACT PERSON : ONG LENG CHUN (MANAGING DIRECTOR)
INDUSTRY CODE : 25209 51913
PRINCIPAL ACTIVITY : RECYCLING OF WASTE PLASTIC AND FIBRE
AUTHORISED CAPITAL : MYR100,000.00 DIVIDED INTO ORDINARY SHARE 100,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR100,000.00 DIVIDED INTO ORDINARY SHARE 100,000
CASH OF MYR1.00 EACH.
SALES : MYR7,943,970 [2005]
NET WORTH : MYR422,708 [2005]
STAFF STRENGTH : 16 [2007]
BANKER (S) : PUBLIC BANK BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : STABLE
PAYMENT : GOOD
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) recycling of waste plastic and fibre.
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. ONG LENG CHUN + 14, LORONG 10,
SUNGAI
PETANI,
MS. GOEY SIEW LEE + 14, LORONG 10,
SUNGAI
PETANI,
--------------------
100,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. ONG LENG CHUN
Address : 14, LORONG 10,
IC / PP No. : 5533582
New IC No : 581017-02-5713
Date of Birth : 17/10/1958
DIRECTOR 2
Name of Subject : MS. GOEY SIEW LEE
Address : 14, LORONG 10,
IC / PP No. : 5930919
New IC No : 600324-02-5634
Date of Birth : 24/03/1960
MANAGEMENT
1) Name of Subject : ONG LENG CHUN
Position : MANAGING DIRECTOR
AUDITOR
Auditor : CHANG KONG FOO & CO
Auditors' Address : 40-42, JALAN TUNKU ABDUL HALIM, 1ST FLOOR, 05100 ALOR SETAR,
COMPANY SECRETARY
1) Company Secretary : MS. TAN SWEE NEE
IC / PP No. : A2138724
New IC No. : 720425-02-5234
Address : 2175D,
2) Company Secretary : MS. WOON PAU YONG
IC / PP No. : A2322407
New IC No. : 721210-09-5168
Address : 2174D,
ALOR
SETAR,
Date of Appointment : 01/11/2006
BANKING
Banking relations are maintained principally with :
1) Banker Name : PUBLIC BANK 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 : 20 Oct 2005
Description of Charge : LEGAL CHARGE
Amount Secured : RM 900,000.00
Description of Property Affected : A PICE OF VACANT
AGRICULTURAL LAND GM 1853,
5444, MUKIM OF KAPAR, KLANG SELANGOR
Name & Address of Chargee : PUBLIC BANK BHD
28-32, PERSIARAN SULTAN IBRAHIM, GROUND FLOOR,
41300
KLANG,
Form 40 Dated 19 Dec 2005
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
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 : 90%
Overseas : YES Percentage : 10%
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 [ X ] Average [ ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES Percentage : 100%
Domestic Markets :
Overseas : NO Percentage : 0 %
Credit Term : 30 DAYS.
Payment Mode : LETTER OF CREDIT (LC).
Type of Customer : END USERS .
OPERATIONS
Products Manufactured : WASTE PLASTIC AND FIBRE
Competitor(s) : NYLEX (
TITAN PETCHEM (M) SDN BHD
INNOVATIVE
PLASTICS LNP
LUSTER INDUSTRIES SDN BHD
GREEN POINT PRECISION (M) SDN BHD
Ownership of premises : LEASED/RENTED
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 16 15 15
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 : 33929988
Current Telephone Number : 03-33929988
Match : YES
Address Provided By Client :
JALAN MERU, BUKIT KAPAR 42200 KLANG, SELANGOR
Current Address :
JALAN MERU, BUKIT KAPAR, 42200 KLANG, SELANGOR,
Match : YES
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with the SC's staff, Ms Rachel. She furnished us some information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ < 0.00% > ]
Profit / ( Loss ) before tax : Decreased [ < 0.00% > ]
Return on Shareholder Funds : Favourable [ 80.26% ]
Return on Net Assets : Unfavourable [ 95.85% ]
The higher turnover could be attributed to the favourable market condition. The management had succeeded in turning the SC into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.
Working Capital Control :
Stocks Ratio : Nil [ 0 Days ]
Debtors Ratio : Favourable [ 3 Days ]
Creditors Ratio : Favourable [ 1 Days ]
As the SC is a service oriented company, the SC does not need to keep stocks. 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 : Acceptable [ 0.96 Times ]
Current Ratio : Unfavourable [ 0.96 Times ]
The SC's liquid ratio was slightly low. This could indicate that the SC's working capital was slightly deficient. The SC will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.
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 :
The higher turnover had helped to reduce the SC's losses. The SC's liquidity was at an acceptable range. If the SC is able to obtain further short term financing, it should be able to meet all its short term obligations. 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: STABLE
COMMENTS
As a private limited company, the SC is principally engaged in the recycling of waste and fibre. Over the years of its establishment, the SC has been building up contacts with its clients and competing in the industry. Being a relatively small company with issued and paid up capital of RM100,000, the SC's shareholders structure consists of 2 individual shareholders.
The SC's business expansion opportunities is limited as it concentrates solely on the local market and it only has a work force of 16 throughout the years. The SC is vulnerable to the changes in the local market. However, with its stable customers base its business risk is diversified. The SC's business activities are overseen by its Managing Director, Ong Leng Chunt and overall management capability of the SC is average.
Based on the latest financial year 2005, the SC posted pre-tax profit of RM425,579 and its turnover stood at RM7.94 million. Return on shareholders' funds of the SC was high indicating that the SC was efficient in utilising its shareholders' funds to generate favourable returns. Besides this, it also has an adequate liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations. Moreover, 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.
Investigation revealed that the SC sources its raw materials from both local and overseas countries. As a result, the SC is exposed to foreign currency fluctuation risk.
Based on our historical financial data, we concluded that the SC's payment is good. This implies a good credit control and the SC could be taking advantage of the cash discounts and maintain a good reputation with its creditors.
The industry remains robust with continuing strong global demand for its products. The steady growth in the country's economy will further enhance its business and there will be more business opportunities available for the SC in the future. In this competitive industry, the SC may face stiff competition from other players.
In view of the above we recommend credit be granted to the SC normally.
THE FINANCIAL
STATEMENTS WERE PREPARED
IN ACCORDANCE WITH
STANDARD.
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-January-2005
ASASRAMA
SDN BHD
2005 2004
MYR MYR
TURNOVER 7,943,970 0
=========== ===========
PROFIT/(LOSS)
FROM OPERATIONS 425,579 <1,164>
SHARE OF PROFITS/(LOSSES) OF
ASSOCIATED
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PROFIT/(LOSS)
BEFORE TAXATION 425,579 <1,164>
Taxation <86,300> -
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PROFIT/(LOSS)
AFTER TAXATION 339,279 <1,164>
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 339,279 <1,164>
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PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 339,279 <1,164>
RETAINED PROFIT/(ACCUMULATED LOSS)
BROUGHT
FORWARD
As
previously reported <16,571> <15,407>
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As
restated <16,571> <15,407>
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PROFIT
AVAILABLE FOR APPROPRIATIONS 322,708 <16,571>
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RETAINED PROFIT/(ACCUMULATED LOSS)
CARRIED
FORWARD 322,708 <16,571>
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RETAINED
BY: The Company 322,708 <16,571>
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322,708 <16,571>
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INTEREST
EXPENSE (as per notes to P&L)
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BALANCE SHEET
As
At 31-January-2005
ASASRAMA
SDN BHD
2005 2004
MYR MYR
ASSETS EMPLOYED:
FIXED
ASSETS 466,608 -
LONG
TERM INVESTMENTS/OTHER ASSETS
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INTANGIBLE
ASSETS
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TOTAL
LONG TERM ASSETS 466,608 -
CURRENT
ASSETS
Trade
debtors 70,123 -
Other
debtors, deposits & prepayments 34,900 -
Items in transit between head
office & branches
Amount
due from director - 88,245
Cash
& bank balances 377,792 2
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TOTAL
CURRENT ASSETS 482,815 88,247
CURRENT
LIABILITIES
Trade
creditors 19,000 -
Other
creditors & accruals 3,199 4,818
Amounts
owing to director 422,216 -
Provision
for taxation 61,000 -
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TOTAL
CURRENT LIABILITIES 505,415 4,818
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NET CURRENT
ASSETS/(LIABILITIES) <22,600> 83,429
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TOTAL
NET ASSETS 444,008 83,429
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FINANCED
BY:
SHARE
CAPITAL
Ordinary
share capital 100,000 100,000
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TOTAL
SHARE CAPITAL 100,000 100,000
RESERVES
Retained profit/(Accumulated loss)
carried
forward 322,708 <16,571>
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TOTAL
RESERVES 322,708 <16,571>
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SHAREHOLDERS'
FUNDS/EQUITY 422,708 83,429
LONG
TERM & DEFERRED LIABILITIES & PROVISIONS
Deferred
taxation 21,300 -
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TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 21,300 -
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444,008 83,429
=========== ===========
FINANCIAL RATIOS
As
At 31-January-2005
ASASRAMA
SDN BHD
2005 2004
MYR MYR
TYPES OF FUNDS
Cash 377,792 2
Net
Liquid Funds 377,792 2
Net
Liquid Assets <22,600> 83,429
Net
Current Assets/(Liabilities) <22,600> 83,429
Net
Tangible Assets 444,008 83,429
Net
Monetary Assets <43,900> 83,429
BALANCE
SHEET ITEMS
Total
Borrowings 0 0
Total
Liabilities 526,715 4,818
Total
Assets 949,423 88,247
Net
Assets 444,008 83,429
Net
Assets Backing 422,708 83,429
Shareholders''
Funds 422,708 83,429
Total
Share Capital 100,000 100,000
Total
Reserves 322,708 <16,571>
LIQUIDITY
(Times)
Cash
Ratio 0.75 0.00
Liquid
Ratio 0.96 18.32
Current
Ratio 0.96 18.32
WORKING
CAPITAL CONTROL (Days)
Stock
Ratio 0 0
Debtors
Ratio 3 0
Creditors
Ratio 1 0
SOLVENCY
RATIOS (Times)
Gearing
Ratio 0 0
Liabilities
Ratio 1.25 0.06
Times
Interest Earned Ratio 0 0
PERFORMANCE
RATIO (%)
Operating
Profit Margin 5.36 0
Net
Profit Margin 4.27 0
Return
On Net Assets 95.85 <1.40>
Return
On Capital Employed 95.85 <1.40>
Return
On Shareholders'' Funds/Equity 80.26 <1.40>
Dividend
Pay Out Ratio (Times) 0 0
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 |
|
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 |
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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%)