MIRA INFORM REPORT

 

 

Report Date :

09.08.2012

 

IDENTIFICATION DETAILS

 

Name :

UNI GEMS SDN BHD

 

 

Registered Office :

11-2, Kompleks Udarama, Jalan 1/64a, Off Jalan Ipoh, 1st Floor, 51200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

15.04.2003

 

 

Com. Reg. No.:

612428-X

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Dealer In Precious and Semi Precious Stones and All Kinds of Jewellery

 

 

No. of Employees :

3

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

No Complaints

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

612428-X

COMPANY NAME

:

UNI GEMS SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

15/04/2003

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

11-2, KOMPLEKS UDARAMA, JALAN 1/64A, OFF JALAN IPOH, 1ST FLOOR, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

107-24-02, BISTARI CONDOMINIUM, JALAN 1/64D, OFF JALAN PUTRA, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

N/A

FAX.NO.

:

N/A

CONTACT PERSON

:

KRISHNAN KUMAR GUPTA ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

51393

PRINCIPAL ACTIVITY

:

DEALER IN PRECIOUS AND SEMI PRECIOUS STONES AND ALL KINDS OF JEWELLERY

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARES 1,000,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 3,986,591 [2010]

NET WORTH

:

MYR 1,129,613 [2010]

STAFF STRENGTH

:

3 [2012]

BANKER (S)

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

HIGH

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) dealer in precious and semi precious stones and all kinds of jewellery.

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).

 

The major shareholder(s) of the SC are shown as follows :

Name

Address

IC/PP/Loc No

Shareholding

(%)

ASHOK KUMAR GUPTA

57, DEVI PATH, KANOTA BAG, JAIPUR, INDIA.

V374174

500,000.00

50.00

ARUN GUPTA

57, DEVI PATH, KANOTA BAG, JAIPUR, INDIA.

Z1009470

500,000.00

50.00

 

 

 

---------------

------

 

 

 

1,000,000.00

100.00

 

 

 

============

=====

 

 

+ Also Director

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

KRISHAN KUMAR GUPTA

Address

:

107-24-02, BISTARI CONDOMINIUM, JALAN 1/64D, OFF JALAN PUTRA, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

H1613161

 

 

 

Date of Birth

:

06/09/1978

 

 

 

Nationality

:

INDIAN

 

DIRECTOR 2

 

Name Of Subject

:

AMIT JHALANI

Address

:

107-24-02, BISTARI CONDOMINIUM, JALAN 1/64D, OFF JALAN PUTRA, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

G7734534

 

 

 

Date of Birth

:

19/12/1984

 

 

 

Nationality

:

INDIAN

 

DIRECTOR 3

 

Name Of Subject

:

NORFAEZAH BINTI ASMUDIN

Address

:

LOT 2041, JALAN JAMBU, MERU, 41050 KLANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

861023-43-5694

Date of Birth

:

23/10/1986

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

29/09/2011

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

KRISHNAN KUMAR GUPTA

 

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

CROWE HORWATH

Auditor' Address

:

52A-1, LEBUH ENGGANG, 41150 KLANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. NG SAY OR

 

IC / PP No

:

4537146

 

New IC No

:

531118-10-6103

 

Address

:

6, SOLOK PEGAGA SATU, OFF JALAN PEGAGA, TAMAN CHI LIUNG, 41200 KLANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. ACIS YEW ING CHUO

 

IC / PP No

:

K0055981

 

New IC No

:

650606-13-5888

 

Address

:

52A, LEBUH ENGGANG, 41150 KLANG, SELANGOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

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

:

07/02/2011

Description Of Charge

:

FIRDT PARTY FIRST LEGAL CHARGE, MEMORANDUM OF DEPOSIT OF FIXED DEPOSIT RECEIPT AND LETTER OF SET OFF

 

Amount Secured

:

RM272,000.00

Description Of Property Affected

:

FIXED DEPOSIT

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD
MAYBANK TOWER, DATARAN MAYBANK, 1 JALAN MAAROF, LEVEL 8, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 10/02/2011

Registered and Numbered 1 In The Register of Charges



LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank. 

No winding up petition was found in our databank. 

 

DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. 

No blacklisted record & debt collection case was found in our defaulters' databank. 

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

NO

Percentage

:

0%

Overseas

:

YES

Percentage

:

100%

 

 

 

 

 

 



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 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

X

]

 

 

 

 

 

 

 

 

 

CLIENTELE

 

 

Local

:

NO

Percentage

:

0%

 

 

 

 

 

 

Overseas

:

YES

Percentage

:

100%

Export Market

:

CHINA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

DEALERS,JEWELLERY SHOP

 

 

OPERATIONS

 

Competitor(s)

:

KAH HONG TRADING SDN BHD
LS GOLD BULLION SDN BHD
MALAYSIAN INDUSTRIAL DIAMOND & SYNTHESIZING SDN BHD
PUSAT EMAS & PERMATA AHMAD ISMAIL SDN BHD
WAH CHAN CONSOLIDATED SDN BHD

 

 

 

 

 

 

 

 

Factory / Premises

:

11-2, KOMPLEKS UDARAMAN, JALAN 1/64A, OFF JALAN IPOH, 1ST FLOOR, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Tel No: 03-40420760
Fax No: 03-40429941

 

 

 

 

 

Total Number of Employees:

YEAR

2012

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

3

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) dealer in precious and semi precious stones and all kinds of jewellery.

The SC engage in export of all kinds of jewellery.

Follows are the type of jewellery provideD by the SC:

1) Hair ornaments like hairpins

2) Head ornaments like crowns and tiaras

3) Neck like necklaces and chokers

4) Arms like armlets (upper arm bracelets), bracelets, cuff links and bangles

5) Rings

6) Body like belly chains

7) Legs and Feet like anklets (ankle bracelets) and toe rings


PROJECTS


No projects found in our databank 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

N/A

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 11-2, 1ST FLOOR, KOMPLEKS UDARAMA, JALAN 1/64A, OFF JALAN IPOH, MALAYSIA

Current Address

:

107-24-02, BISTARI CONDOMINIUM, JALAN 1/64D, OFF JALAN PUTRA, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


we contacted the SC's director, Mr. Krishnan. He provided some information on the SC.

The SC only can be contact via 0122615487

The address provided belongs to the SC's branch.

The SC does not have fax facilities.

 

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

61.99%

]

 

Profit/(Loss) Before Tax

:

Decreased

[

13.67%

]

 

Return on Shareholder Funds

:

Unfavourable

[

2.45%

]

 

Return on Net Assets

:

Unfavourable

[

2.75%

]

 

 

 

 

 

 

 

 

The increase in turnover could be due to the SC adopting an aggressive marketing strategy.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

569 Days

]

 

Debtor Ratio

:

Unfavourable

[

97 Days

]

 

Creditors Ratio

:

Unfavourable

[

457 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

[

0.20 Times

]

 

Current Ratio

:

Unfavourable

[

1.11 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 :

 

 

 

 

 

 

Although the SC's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the SC's profit margin. 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 : LIMITED

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 
(Source : Department of Statistics / Economic Report / Bank Negara Report)



INDUSTRY ANALYSIS

 

MSIC CODE

51393 : Wholesale of jewellery, watches, clocks and silverware

 

 

INDUSTRY :

TRADING


The wholesale and retail trade sector grew 7.1% in the first half of the year 2011 supported by strong consumer spending amid favourable labour market conditions and sustained disposable income. This was reflected in the higher distributive trade index which increased 15.9%, with wholesale and retail trade indices increasing 19.2% and 7.8%, respectively. 


It is anticipated that the retail industry will grow 6.0 per cent in the year 2012.


Malaysia's retail sector for 2011 is expected to grow 6 per cent or RM81.59 billion worth of retail sales, similar to the year 2010, due to concerns of high oil prices, declining purchasing power and high cost of doing business. The Middle East and North Africa civil wars have caused the world oil prices to climb. This has led to further rise in the cost of running retail businesses, especially in terms of transportation cost. Many retailers have no choice but to pass the increased cost to end consumers. At the same time, natural disasters (tsunamis, floods, droughts, snow storms, tornadoes and earthquakes) that occurred in all parts of the world has also led to a shortage in the supply of food and raw materials. The phenomenon has pushed retail prices up.In addition, the continual removal of government subsidies since 2010 has pushed inflation upwards. Consequently, rising prices of retail goods contributed to an expectation of moderate performance.


During the first seven months of 2011, other consumption indicators such as imports of consumption goods and credit card spending increased 12.8% and 11.8%, respectively. Sales of motor vehicles declined 3% on account of supply chain disruptions following devastating March 2011 earthquake and tsunami in Japan.


Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.


Meanwhile, the Government has introduced the Retail Shop Transformation (TUKAR) programme. Under this programme, selected large format retailers will assist small retailers to improve their premises and layout which include attractive product display shelves, enhanced lighting and point-of-sales system to manage product inventory,

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 2003, the SC is a Private Limited company, focusing on dealing of precious and semi precious stones and all kinds of jewellery. Having been in business for 9 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.


The SC focuses only on overseas market. This global approach has enabled the SC to generate a better growth sales. Being an export-oriented company, the SC however is subjected to certain inherent risk of global economy slowdown, foreign currencies fluctuations and stiff competition in the international market. Being a small company, the SC's business operation is supported by 3 employees. Overall, we regard that the SC's management capability is average. 


Financially, the SC registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. A zero gearing ratio indicates that the SC is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 1,129,613, the SC should be able to maintain its business in the near terms.


Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth. Investigation revealed that the SC's supplies are 100% sourced from overseas countries. As an imported oriented company, its forex exposure is high. The SC faces foreign currency fluctuation which may affect its overall operating costs.


The poor payment habit may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry. Nonetheless, the SC should adopt better competitive strategies in order to sustain its business position and to compete with other well established players in the same industry.


In view of the above, we recommend credit be granted to the SC with close monitoring.

 

 

PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

UNI GEMS SDN BHD

 

Financial Year End

31/12/2010

31/12/2009

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

 

 

 

TURNOVER

3,986,591

2,460,995

 

----------------

----------------

Total Turnover

3,986,591

2,460,995

Costs of Goods Sold

<3,812,652>

<1,997,150>

 

----------------

----------------

Gross Profit

173,939

463,845

 

----------------

----------------

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

31,036

35,951

 

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

31,036

35,951

Taxation

<3,342>

<5,962>

 

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

27,694

29,989

 

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

101,919

71,930

 

----------------

----------------

As restated

101,919

71,930

 

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

129,613

101,919

 

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

129,613

101,919

 

=============

=============

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

368,994

-

 

 

 

 

----------------

----------------

TOTAL LONG TERM ASSETS

368,994

-

 

 

 

CURRENT ASSETS

 

 

Stocks

6,213,136

5,866,332

Trade debtors

1,058,123

169,188

Other debtors, deposits & prepayments

11,892

23,689

Short term deposits

10,000

-

Amount due from director

8,614

631

Cash & bank balances

260,795

63,715

 

----------------

----------------

TOTAL CURRENT ASSETS

7,562,560

6,123,555

 

----------------

----------------

TOTAL ASSET

7,931,554

6,123,555

 

=============

=============

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

4,772,673

4,373,681

Other creditors & accruals

82,703

71,659

Amounts owing to director

-

8,371

Provision for taxation

10,832

10,690

Other liabilities

1,935,733

553,235

 

----------------

----------------

TOTAL CURRENT LIABILITIES

6,801,941

5,017,636

 

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

760,619

1,105,919

 

----------------

----------------

TOTAL NET ASSETS

1,129,613

1,105,919

 

=============

=============

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

1,000,000

1,000,000

 

----------------

----------------

TOTAL SHARE CAPITAL

1,000,000

1,000,000

 

 

 

RESERVES

 

 

Retained profit/(loss) carried forward

129,613

101,919

 

----------------

----------------

TOTAL RESERVES

129,613

101,919

 

 

 

 

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

1,129,613

1,101,919

 

 

 

LONG TERM LIABILITIES

 

 

Deferred taxation

-

4,000

 

----------------

----------------

TOTAL LONG TERM LIABILITIES

-

4,000

 

----------------

----------------

 

1,129,613

1,105,919

 

=============

=============

 

 

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

Cash

270,795

63,715

Net Liquid Funds

270,795

63,715

Net Liquid Assets

<5,452,517>

<4,760,413>

Net Current Assets/(Liabilities)

760,619

1,105,919

Net Tangible Assets

1,129,613

1,105,919

Net Monetary Assets

<5,452,517>

<4,764,413>

BALANCE SHEET ITEMS

 

 

Total Borrowings

0

0

Total Liabilities

6,801,941

5,021,636

Total Assets

7,931,554

6,123,555

Net Assets

1,129,613

1,105,919

Net Assets Backing

1,129,613

1,101,919

Shareholders' Funds

1,129,613

1,101,919

Total Share Capital

1,000,000

1,000,000

Total Reserves

129,613

101,919

LIQUIDITY (Times)

 

 

Cash Ratio

0.04

0.01

Liquid Ratio

0.20

0.05

Current Ratio

1.11

1.22

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

569

870

Debtors Ratio

97

25

Creditors Ratio

457

799

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.00

0.00

Liabilities Ratio

6.02

4.56

Times Interest Earned Ratio

0.00

0.00

Assets Backing Ratio

1.00

1.00

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

0.78

1.46

Net Profit Margin

0.69

1.22

Return On Net Assets

2.75

3.25

Return On Capital Employed

2.75

3.25

Return On Shareholders' Funds/Equity

2.45

2.72

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0

 

 

DIAMOND INDUSTRY – INDIA

 

-          From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-          The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-          The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-          Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-          Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-          Excerpts from Times of India dated 30th October 2010 is as under –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.15

UK Pound

1

Rs.86.00

Euro

1

Rs.68.31

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.