MIRA
INFORM REPORT
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Report Date : |
29.08.2011 |
IDENTIFICATION DETAILS
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Name : |
PRESTAR STORAGE SYSTEM SDN. BHD. |
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Formerly Known As : |
COMPETITIVE SCALE SDN. BHD. |
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Registered Office : |
Lot 39, Rawang Industrial Estate 16 1/2 Miles, Jalan Ipoh Rawang Selangor Darul Ehsan 48000 |
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Country : |
Malaysia |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
07.02.2001 |
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Com. Reg. No.: |
538520-A |
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Legal Form : |
Private Limited Company Limited By Shares |
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Line of Business : |
Manufacture and installation of all kinds of material handling equipment, structural steel works and pallet racking system. |
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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Maximum Credit Limit : |
USD 270,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Malaysia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
IDENTIFICATION DETAILS
Verified Address
Subject name : PRESTAR STORAGE SYSTEM SDN. BHD.
Business address : Lot
39, Rawang Industrial Estate
16 1/2 Miles, Jalan Ipoh
Town : Rawang
Province : Selangor Darul Ehsan
Zip/postal code : 48000
Country : Malaysia
Tel : +60 3 60929200
Fax : +60 3 60925202
Email : info@prestar.com.my
Website : www.prestar.com.my
Registered address : C/o
SECURITIES SERVICES (HOLDINGS) SDN. BHD.
Level 7, Menara Milenium
Jalan Damanlela, Pusat Bandar Damansara
Town : Kuala Lumpur Province : Wilayah
Persekutuan Zip/postal code : 50490
Country : Malaysia
SUMMARY DETAILS
Executive Summary
Date founded or registered : 07/02/2001
Legal form : Private Limited Company Limited By
Shares
Chief executive :
Toh Yew Kar
Issued & paid up capital : MYR 8,500,000
Sales
turnover : MYR 22,438,319 (Non-consolidated 12
months, 31/12/2009) Net income : MYR 1,188,236 (Non-consolidated 12
months, 31/12/2009) Total fixed assets : MYR 8,902,830 (Non-consolidated 12
months, 31/12/2009)
Line of business : Manufacture and installation of all
kinds of material handling equipment, structural steel works and pallet racking
system.
Staff employed : 150 employees (Subject)
CREDIT RISK OPINION
Credit Risk Interpretation
Credit risk rating :
MODEST
Credit risk theory : Sufficient financial and operational
base. Small credits may be considered with some confidence that commitments
will be sustained under normal circumstances. This is based on criterions such
as years of establishment, number of employees, sales turnover, profit after
tax, total assets, reserve, and others. A cautious credit control policy
applies.
Company Analysis
Country risk : Country risk is minimal
Operation trend : Operational trend is progressing
Management experience : Management is reasonably experienced
Financial performance : Financial performance is fair
Organisation structure : Organisational structure is acceptable
Detrimental : No detrimental records found
Payment history : No payment delays noted
Credit amount suggestion : USD 270,000
Credit amount asked : Not described.
Comments : For
larger credit transactions it would be beneficial to obtain a guarantee from
the Subject's Parent Company Prestar Resources Berhad as the Subject has been
facing losses in previous years and stability was affected.
STATUTORY DETAILS
Registry Data
Registration date :
07/02/2001
Legal form : Private Limited Company Limited By
Shares
Registration no 538520-A
Registered authority : Companies
Commission of Malaysia
Registry status :
Live/Active
Previous name : The Subject was established under the
name COMPETITIVE SCALE SDN. BHD. on 07-02-2001 and changed to current style on
04-07-2007.
Change of legal form : None reported.
MANAGEMENT / DIRECTORS
Key Management
Name : Toh Yew Kar Designation : Managing Director Name : Toh Yew Seng Designation : Director
BOARD OF DIRECTORS/ OTHER APPOINTMENTS
Appointments
Name : Toh Yew Keat Designation : Director Identification no : 470509-07-5061
Appointment date : 14/06/01
Address : 65-A,Perak Road
10150 Penang
Malaysia
Biography : Mr. Toh Yew Keat is Group Executive
Chairman of the Board of
Prestar Resources Berhad. He was appointed to the Board on July
12, 1984. He is one of the founders of the
Company. He has more than 30 years of experience in importation and
distribution of material handling equipment, hardware products and building
material. He is actively involved in formulating and implementing the Company's
business policies and corporate strategies and contributes to the continued
growth and profitability of the Company by identifying new business ventures.
He sits on the Board of Directors of the Company's subsidiaries and several
other private limited companies
Name : Toh Yew Kar
Designation : Managing Director
Identification no : 581003 07 5517
Appointment date : 02/10/02
Address : 50, Jalan 3/1D Taman Intan Baiduri
52100, Kepong Kuala Lumpur Malaysia
Biography : Mr. Toh Yew Kar is Marketing Director and Group Executive Director of Prestar Resources Berhad since July 12, 1984. Prior to his involvement in the Company, he has obtained substantial experience & exposure in sales and marketing with a trading company, in Osaka, Japan. He is responsible for the marketing affairs of the Company and is actively involved in the implementation of marketing strategies and development of new products and markets. He sits on the Board of the Company's subsidiaries and several other private limited companies
Name : Toh Yew Seng
Designation : Director
Identification no : 610805-07-5447
Appointment date : 14/06/01
Address : Lot 17494, 8 1/2 Miles
Jalan Ipoh, Selayang Industrial Estate
68100 Batu Caves Selangor Darul Ehsan Malaysia
Biography : Mr. Toh Yew Seng is Group Executive Director of Prestar Resources Berhad since January 31, 1986. He was General Manager of the Company from 1984 to 1985 prior to his appointment as Executive Director. He obtained his Bachelor of Arts majoring in Business Administration from Tunghai University, Taiwan. He oversees and manages the manufacturing activities of the Company where he is responsible for the planning and formulating of manufacturing strategies which include setting up of manufacturing facilities within the Company. He sits on the Board of the Company's subsidiaries and several other private limited companies.
Name : Chua Siew Chuan
Designation : Company Secretary
Identification no : 580826-05-5408
Appointment date : 14/06/01
Address : 6 Jln SS 14/8E
Subang Jaya 47500, Petaling Jaya
Selangor Darul Ehsan
Malaysia
Name : Koay Kah Ee
Designation : Company Secretary
Identification no : 590416-07-6133
Appointment date : 20/05/05
Address : 41 Jalan BU 1/3
Bandar Utama, Damansara
47800 Petaling Jaya Selangor Darul Ehsan Malaysia
Staff employed : 150 employees (Subject)
Key Advisors
Auditors : BDO
Chartered Accountants
12th Floor, Menara Uni.Asia
1008, Jalan Sultan Ismail
50250 Kuala Lumpur
Malaysia
SHARE CAPITAL
Composition
Authorized Capital :
MYR 10,000,000
No of shares : 10,000,000 Ordinary Shares
Share par value :
MYR 1
Issued capital : MYR 8,500,000
Paid up capital :
MYR 8,500,000
Changed in capital : The Subject increased its share capital
from MYR 5,000,000 to MYR 10,000,000 on 29-12-2010.
OWNERSHIP / SHAREHOLDERS
How listed : Full List
Composition
Shareholder name : PRESTAR RESOURCES BERHAD
Address : Lot 1298 Rawang Industrial Estate
16 1/2 Miles, Jalan Ipoh
48000 Rawang Selangor Darul Ehsan Malaysia
No. of shares : 8,150,000 ordinary shares
Shareholder name : PRESTAR MANUFACTURING SDN. BHD.
Address : Lot 1298 Rawang Industrial Estate
16 1/2 Miles, Jalan Ipoh
48000 Rawang Selangor Darul Ehsan Malaysia
No. of shares : 350,000 ordinary shares
Ownership / Shareholding comment : Subject is a subsidiary of PRESTAR RESOURCES BHD. PRESTAR RESOURCES BERHAD (PRB), was incorporated under Malaysian Companies Act 1965 on 12 July 1984 under the name of Prestar Industries Sdn Bhd as a private company. It was subsequently converted into a Public Limited Company on 27 June 1994 and was listed on the Second Board of BURSA Malaysia on 20
September 1995. On 1 October 2003, PRB was successfully transferred its listing status to the Main Board of Bursa Malaysia.
RELATED COMPANIES &
CORPORATE AFFILIATIONS
Structure
Name : PRESTAR RESOURCES BHD
Affiliation type : Parent Company
Address : Lot 1298 Rawang
Industrial Estate
16 1/2 Miles, Jalan Ipoh
48000 Rawang Selangor Darul Ehsan Malaysia
Comments : PRESTAR
RESOURCES BHD is principally an investment holding company with subsidiary
companies mainly engaged in the steel-processing & steel-products
manufacturing activities with factories in Malaysia & Vietnam.
PRB started its manufacturing activities in 1984 involved in the
manufacturing of
Wheelbarrows, Hand Trucks, Castors & Platform Truck and etc.
After its successful Public
Listing in 1995, PRB had gradually diversified and expanded by moving upstream into
reprocessing of steel mother coils into slitted coils / sheets (Coil Center)
for the supply to Automotive, Electrical & Electronic industries. This Coil
Center is a joint-venture between PRB and POSCO, the world third largest steel
mill from Korea.
Meanwhile, PRB had also
expanded into the manufacturing of Carbon and Stainless Steel Pipes / Hollow
Sections, Steel Highway Guardrial, Steel Flat-bars, Steel Purlins, Steel
Shelving and Racking for storage usage.
Today, PRB has transformed into a leading steel-processing /
manufacturing
Group focusing on the following main activities :
1. Slitting & shearing
of Carbon & Stainless Steel mother coils into slitted coils / sheets for
Automotive, Electrical & Electronic, Office Equipment, Metal Stamping
industries
2. Roll-forming of Carbon Steel Pipes & Hollow Sections
3. Roll-forming of Stainless Steel Pipes & Hollow Sections
4. Manufacturing of Steel Flat Bars, Steel Purlins
5. Manufacturing of Wheelbarrows & Platform Hand Trucks
6. Manufacturing of Steel Shelving & Pallet Racking and other
storage equipment
7. Manufacturing of Highway Guardrails
The manufacturing
activities of Prestar Group are mainly carried out on two manufacturing plants
with a total built-up area of 60,000 sq.meter (650,000 Sq. ft.) on a 90,000
sq.meter (1million sq.ft) industrial land in Rawang Industrial Estate which
houses its subsidiary companies Prestar Manufacturing Sdn Bhd, Prestar
Precision Tubes Sdn Bhd, Prestar Steel Pipes Sdn Bhd, Prestar Storage Systems
Sdn.Bhd., Prestar Engineering Sdn Bhd, Prestar Tooling Sdn Bhd and Prestar
Metal Galvanising Sdn Bhd. and its associated company POSCO-MKPC Sdn Bhd ( a
joint-venture company between Prestar & Posco, Korea).
Another manufacturing facility of the Group is situated at Penang,
northern part of
Peninsular Malaysia, with a built-up area of 24,000 sq.meter (260,000
sq.ft) on a
40,000 sq.meter (430,000
sq.ft) industrial land which houses its subsidiary company Tashin Steel Sdn
Bhd.
Name : PRESTAR MANUFACTURING SDN. BHD.
Affiliation type : Minority Shareholder
Address : Lot 1298 Rawang Industrial Estate
16 1/2 Miles, Jalan Ipoh
48000 Rawang Selangor Darul Ehsan Malaysia
Comments : Manufacture and export of material
handling equipment such as wheelbarrows and hand trucks. The company is 100%
owned by Prestar Resources Berhad.
Name : DAI DONG STEEL SDN. BHD. Affiliation
type : Sister Company
Address : Malaysia
Comments : Import and trading of steel materials
and general hardware products.
Name : PRESTAR MARKETING SDN. BHD. Affiliation
type : Sister Company
Address : Malaysia
Comments : Importer and distributor of general
hardware, tools and material handling equipment.
Name : PRESTAR STEEL PIPES SDN. BHD.
Affiliation type : Sister Company
Address : Malaysia
Comments : Supply of carbon steel pipes and
related products.
Name : PRESTAR PRECISION TUBE SDN. BHD.
Affiliation type : Sister Company
Address : Malaysia
Comments : Manufacture wide range of steel pipes
and tube.
Name : PRESTAR INDUSTRIES (VIETNAM) CO., LTD.
Affiliation type : Sister Company
Address : Vietnam
Comments : Manufacture and process all kind of
steel products such as material handling equipment, highway guardrails and
building materials and other steel processed products.
Name : PRESTAR ENGINEERING SDN. BHD.
Affiliation type : Sister Company
Address : Malaysia
Comments : Manufacture and supply of guardrails and
related products.
Name : PRESTAR GALVANISING SDN. BHD.
Affiliation type : Sister Company
Address : Malaysia
Comments : General hot-dip galvanising and coating
of metal products and threaded items.
Related companies and corporate
affiliations comments : Other
companies of Prestar Group should be considered affiliates of the Subject.
BANK & MORTGAGES
Bank Details
Name of bank : RHB Bank Berhad
Address : Malaysia
Account details : Current Account
Name of bank : AmBank (M) Berhad
Address : Malaysia
Account details : Current Account
Name of bank : CIMB Bank Berhad
Address : Malaysia
Account details : Current Account
Comments : It is generally not the policy of local banks to provide credit status information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.
Mortgages : None reported.
Legal Fillings
Bankruptcy fillings : None reported.
Court judgements : None reported.
Tax liens : None reported.
Others : None reported.
FINANCIAL DATA
Description
Source of financial statement :
Commercial Registry Filings
Financial statement date : 31/12/09
Type of accounts :
Full audited
Currency : Malaysia, Ringgit (MYR)
Exchange rate :
1 USD = MYR 2.99 as of 25-08-2011
Summarized Financial
Information
Consolidation type : Non Consolidated Non Consolidated Group Consolidated Currency : Malaysia, Ringgit (MYR) Malaysia, Ringgit (MYR) Malaysia, Ringgit (MYR) Denomination : (x1) One (x1) One (x1)
One
Date of financial year end : 31/12/09 31/12/08 31/12/10
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Length of
accounts : |
12 months |
12 months |
12 months |
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Sale turnover /
Income : |
22,438,319 |
12,909,309 |
553,633,000 |
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Gross profit : |
3,790,084 |
1,395,556 |
52,519,000 |
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Profit before
tax : |
1,188,236 |
-1,230,748 |
14,808,000 |
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Net income : |
1,188,236 |
-1,230,748 |
12,044,000 |
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Non current
assets : |
2,456,418 |
2,943,670 |
204,017,000 |
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Current assets : |
6,446,412 |
7,282,073 |
304,084,000 |
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Inventories : |
3,383,375 |
3,222,847 |
142,097,000 |
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Total assets : |
8,902,830 |
10,225,743 |
508,101,000 |
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Current
liabilities : |
7,752,269 |
13,749,101 |
261,025,000 |
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Non current liabilities : |
4,025 |
19,833 |
22,330,000 |
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Total
liabilities : |
7,756,294 |
13,768,934 |
283,355,000 |
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Share equity : |
1,146,536 |
-3,543,191 |
224,746,000 |
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Reserve : |
|
|
79,679,000 |
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Retained earning : |
-7,353,464 |
-8,543,191 |
|
Comments : The non-consolidated financial
information above relates to the Subject only.
The group’s consolidated
financial information above relates to the Subject’s Ultimate Holding Company Prestar
Resources Berhad and all its subsidiaries which include the Subject.
OPERATION DETAILS
Main activities : Subject principally engages in
manufacturing and installation of all kinds of material handling equipment,
structural steel works and pallet racking system.
The Subject is part of
Prestar Resources Berhad, an investment holding company, engages in the
manufacture of steel related products and rental of properties primarily in Malaysia.
The company manufactures, supplies, and exports material handling equipment,
including wheelbarrows and hand trucks; guardrails and related products; carbon
steel pipes and related products; precision steel pipes and tubes; building
materials; and other steel processed products. It also involves in the import
and distribution of general hardware, tools, and steel materials; molding,
fabrication, maintenance,
and installation of machinery; and general hot-dip galvanizing and coating of
metal products and threaded items. In addition, the company engages in
manufacturing and installing structural steel works and pallet racking systems;
and rental of building and office premises. The company was formerly known as
Prestar Industries Berhad. Prestar Resources Berhad was incorporated in 1984
and is based in Rawang, Malaysia.
Product & services :
1) Racking system (pallet racking and
accessories, selective, drive-in, multi tier, mobile pallet, long span )
2)Shelving (boltless diy,
rivet type, 2in1 boltless rack, clip shelf system, rivet type, bn 2000,
portable racks)
3) Safety & protection
(post protector, stor guard protection, wire decking panel )
Purchases
Local : Yes
International : Mainly from India, China, United
States, Indonesia
Sales
Local : Yes
International : USA , Sri Lanka, Canada, India,
Australia, Trinidad & Tobago, New Zealand, Bangladesh, Singapore, Pakistan,
Indonesia, UAE, Philippines, Saudi Arabia, Thailand, Yemen, Vietnam, Bahrain,
Brunei, Qatar, Batam Island and Lebanon.
Group key events :
Prestar secures RM60m loan, mainly to
repay debt notes
Friday, 05 August 2011
KUALA LUMPUR: PRESTAR
RESOURCES BHD has secured Islamic banking facilities not exceeding RM60 million
from AmIslamic bank Bhd.
The company said on Friday,
Aug 5 that RM50 million would be used to repay the balance outstanding amount
of Prestar’s seven years commercial papers, which expire on Sept 7, 2012. The
debt notes were
raised and underwritten by the RHB Bank Bhd.
The tenure for RM30 million
of RM50 million debt notes would be from the first day of the following month
from the date of full disbursement.
Apart from the RM50
million, the remaining RM10 million would be for working capital.
Prestar said the Islamic banking
facilities would be secured by a first party first fixed charge over a parcel
of freehold land with factory buildings and office, measuring 517,948 sq feet
in built-up area, in the Rawang industrial estate.
Property & Assets
Premises : The Subject operates from group
headquarters located at the verified heading address consisting of
administrative office, production facilities, warehouse.
Branches : None reported.
SUMMARIZED COUNTRY RISK
Gross Domestic Products (GDP)
& Economic Overview
Central bank : Central Bank of Malaysia
Reserve of foreign exchange & gold : US$
136.1 billion as of 15 August 2011
Gross domestic product - GDP :
US$ 247.781 billion
GPP (Purchasing power parity) :
442.01 billion of International dollars
GDP per capita - current prices :
US$ 8,624
GDP - composition by sector : agriculture: 9.4% industry: 40.9% services: 49.7%
Inflation : 2008: 5.4%
2009: 0.6%
2010: 1.7%
Unemployment rate : 2008: 3.3%
2009: 3.6%
2010:3.3%
Public debt
(General Government gross
debt as a % GDP) : 2008:
42.8%
2009: 55.4%
2010: 54.2%
Government bond ratings : Standard & Poor's: A-/Stable/A-2
Moody's rating: A3
Moody's outlook : STA
Market value of publicly traded shares : US$420 billion
Largest
companies in the country : CIMB Group Holdings (Banking), Sime
Darby (Conglomerates), Public Bank (Banking), Maybank (Banking), Tenaga
Nasional (Utilities), Petronas Chemicals, Maxis Berhad
Trade & Competitiveness
Overview
Total exports : US$210.3 billion
Exports commodities : electronic equipment, petroleum and liquefied natural gas, wood and woodproducts, palm oil, rubber, textiles, chemicals
Total imports : US$156.2 billion
Imports commodities : electronics, machinery, petroleum products, plastics, vehicles, iron andsteel products, chemicals
Export - major partners : US 15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand 5%, HongKong 4.6%
Import - major partners : Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan
5.7%,Thailand 5.3%, South Korea 4.9%, Germany 4.6%, Indonesia 4.2%
FDI Inflows : 2007: US$8,538 million
2008: US$7,318 million
2009: US$1,381 million
FDI Outflows : 2007: US$11,280 million
2008: US$14,988 million
2009: US$8,038 million
Best countries for doing business : 21 out of 183 countries
Global competitiveness ranking : 26 (ranking by country on a basis of 133, the first is the best)
Country and Population Overview
Total population : 28.23 million
Total area : 329,847 km2
Capital : Kuala Lumpur
Currency : Malaysia Ringgits (MYR)
Internet users as % of total population: 57.61%
PAYMENT HISTORY
Purchase Term
Local : Cash against document, Prepayment,
Credit up to 60 days
International : L/C, Prepayment, Credit up to 60 days
Sales Term
Local : Cash against document, Prepayment,
Credit up to 60 days
International : L/C, Prepayment, Credit up to 60 days
Trade Reference/ Payment
Behaviour
Comments : As local and international trade
references were not supplied, the Subject's payment track record history cannot
be appropriately determined but based on our research, payments are believed to
be met without delay.
Investigation Note
Sources : Interviews and material provided by the
Subject
: Other official and local
business sources
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.05 |
|
|
1 |
Rs.75.19 |
|
Euro |
1 |
Rs.66.47 |
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 |
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 |
|
-- |
NB |
New Business |
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.