MIRA INFORM REPORT

 

 

Report Date :

10.08.2012

 

IDENTIFICATION DETAILS

 

Name :

HASIRIA SDN BHD

 

 

Registered Office :

15-1, Jalan Pjs 3/34, Taman Sri Manja, Ground Floor, 46000 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

17.03.1992

 

 

Com. Reg. No.:

236382-U

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trading of textiles, spices

 

 

No. of Employees :

11 [2012]

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

 

N/A - Not Applicable

 

 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

236382-U

COMPANY NAME

:

HASIRIA SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

17/03/1992

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

15-1, JALAN PJS 3/34, TAMAN SRI MANJA, GROUND FLOOR, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

15-1, JALAN PJS3/34, TAMAN SRI MANJA, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-77859786

FAX.NO.

:

03-77854786

CONTACT PERSON

:

MOHAMED RAVOOF ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

51311

PRINCIPAL ACTIVITY

:

TRADING OF TEXTILES, SPICES

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 750,000 CASH AND 250,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

 

SALES

:

MYR 10,711,423 [2010]

NET WORTH

:

MYR 1,276,949 [2010]

 

 

 

STAFF STRENGTH

:

11 [2012]

BANKER (S)

:

BANK ISLAM MALAYSIA BHD
MALAYAN BANKING BHD
OCBC BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

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) trading of textiles, spices.

 

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

 

The SC's latest available financial accounts with the Registrar of Companies are for the year 2003 only.

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. ABDUL KADIR BIN M E SIKKANDAR +

362, JALAN SAGA, KAMPUNG LIKAS, MILE 4 1/2, JALAN TUARAN, 88100 KOTA KINABALU, SABAH, MALAYSIA.

570605-08-5487 8274596

510,000.00

51.00

MR. MOHAMED RAVOOF MOHAMED SHARBUDEEN +

BLOCK B, 608 JALAN 5/58C, MAXWELL TOWER CONDOMINIUM, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

620815-75-5015

490,000.00

49.00

 

 

 

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

------

 

 

 

1,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

Name Of Subject

:

MR. MOHAMED RAVOOF MOHAMED SHARBUDEEN

Address

:

BLOCK B, 608 JALAN 5/58C, MAXWELL TOWER CONDOMINIUM, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

620815-75-5015

Date of Birth

:

15/08/1962

 

 

 

Nationality

:

MALAYSIAN OTHER

Date of Appointment

:

02/12/1999

 

 

 

DIRECTOR 2

Name Of Subject

:

MR. ABDUL KADIR BIN M E SIKKANDAR

Address

:

362, JALAN SAGA, KAMPUNG LIKAS, MILE 4 1/2, JALAN TUARAN, 88100 KOTA KINABALU, SABAH, MALAYSIA.

IC / PP No

:

8274596

New IC No

:

570605-08-5487

Date of Birth

:

05/06/1957

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

05/04/1994

 

 

MANAGEMENT

 

1)

Name of Subject

:

MOHAMED RAVOOF

 

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

TCMK ASSOCIATED

Auditor' Address

:

102C, BANGUNAN YAP SELANGOR, JALAN TUN H S LEE, 3RD FLOOR, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. KRISHNAN S/O KS MANIAM

 

IC / PP No

:

8179547

 

New IC No

:

550201-10-6693

 

Address

:

10, JALAN WIRAWATI 7, TAMAN MALURI, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

BANK ISLAM MALAYSIA BHD

 

 

 

 

 

2)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

3)

Name

:

OCBC BANK (MALAYSIA) 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

:

14/10/2003

Description Of Charge

:

N/A

 

Amount Secured

:

RM300,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

BANK ISLAM MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

27/11/2004

Description Of Charge

:

N/A

 

Amount Secured

:

RM600,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

BANK ISLAM MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 2 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

13/04/2006

Description Of Charge

:

N/A

 

Amount Secured

:

RM700,164.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

BANK ISLAM MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 4 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

03/07/2007

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

RM588,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

29/11/2007

Description Of Charge

:

N/A

 

Amount Secured

:

RM700,164.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

BANK ISLAM MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 6 In The Register of Charges



ENCUMBRANCE 6

Date of Creation

:

20/06/2008

Description Of Charge

:

N/A

 

Amount Secured

:

RM300,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AL RAJHI BANKING & INVESTMENT CORP (M) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 7 In The Register of Charges




ENCUMBRANCE 7

Date of Creation

:

16/06/2009

Description Of Charge

:

N/A

 

Amount Secured

:

RM300,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AL RAJHI BANKING & INVESTMENT CORP (M) BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 8 In The Register of Charges



ENCUMBRANCE 8

Date of Creation

:

15/11/2010

Description Of Charge

:

CASH DEPOSIT AGREEMENT

 

Amount Secured

:

N/A

Description Of Property Affected

:

FIXED DEPOSIT

 

Name & Address Of Chargee

:

OCBC BANK (MALAYSIA) BHD
2 JALAN PUTERI 1/1, DATARAN PUTERI, BANDAR PUTERI, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 19/11/2010

Registered and Numbered 9 In The Register of Charges



ENCUMBRANCE 9

Date of Creation

:

02/03/2011

Description Of Charge

:

MEMO OF DEPOSIT, LETTER OF SET-OFF, DEED OF ASSIGNMENT

 

Amount Secured

:

RM1,200,000.00

Description Of Property Affected

:

FIXED DEPOSIT

 

 

 

 

 

 

 

Form 40 Dated 25/03/2011

Registered and Numbered 10 In The Register of Charges



ENCUMBRANCE 10

Date of Creation

:

23/11/2011

Description Of Charge

:

MEMORANDUM OF DEPOSIT OF FIXED DEPOSIT

 

Amount Secured

:

RM600,000.00

Description Of Property Affected

:

MEMORANDUM OF DEPOSIT OF FIXED DEPOSIT

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD
11, JALAN 51A/222, 46100 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 30/11/2011

Registered and Numbered 11 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

:

YES

Overseas

:

YES

 

 

 


The SC refused discloses any information on its overseas supplier.

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

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Percentage

:

0%

 

 

 

 

 

 

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES

Type of Customer

:

DEALERS,END USERS

 

OPERATIONS

 

Goods Traded

:

TEXTILES

 

 

 

 

Competitor(s)

:

APCOT (M) SDN BHD
APPAREL WORLD (M) SDN BHD
CNLT (FAR EAST) BHD
KIMA SDN BHD
RETAILWORKS SDN BHD

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2012

2011

 

 

 

GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

11

5

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:

The SC is principally engaged in the (as a / as an) trading of textiles, spices.
The SC is engaged in the trading of textiles.
The SC sells a wide range of textiles and garments.
Besides this, the SC also sells spices. 

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

:

03-77859786

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 15-1 GR. FLR, JALAN, PJS 3/34 TAMAN SRI, MANJA 46000 PETALING JAYA MALAYSIA

Current Address

:

15-1, JALAN PJS3/34, TAMAN SRI MANJA, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

we contacted one of the staff from the Admin Department. She provided some information on the SC.
The address provided is incorrect.

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2010

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2010

]

 

Return on Shareholder Funds

:

Unfavourable

[

7.50%

]

 

Return on Net Assets

:

Acceptable

[

12.07%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC's management have been efficient in controlling its operating costs. 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

:

Favourable

[

10 Days

]

 

Debtor Ratio

:

Unfavourable

[

119 Days

]

 

Creditors Ratio

:

Favourable

[

60 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. 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

:

Favourable

[

1.44 Times

]

 

Current Ratio

:

Unfavourable

[

1.53 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

1.86 Times

]

 

Gearing Ratio

:

Unfavourable

[

1.45 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. The SC was highly geared, thus it had a high financial risk. The SC was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the SC will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the SC has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the SC's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. The SC's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the SC : FAIR

 

 

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

 

51311 : Wholesale of textiles, clothing, house linens, towels and blankets

 

 

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 1992, the SC is a Private Limited company, focusing on trading of textiles and spices. Having been in the industry for 2 decades, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.


At present, the local market remains the SC's biggest market. It depends solely on the sales in the domestic market to achieve its profitability. With the only concentration in the local market, the SC is vulnerable to the changes in the local events. We noted that the demand for the SC's products is on the rise due to the continuing growth of its sales volume and profitability. Hence, the SC's business potential remains favourable. Being a small company, the SC's business operation is supported by 11 employees. Overall, we regard that the SC's management capability is average. 


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The high gearing ratio clearly implied that the SC was supported by more debt than equity. However, the SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Given a positive net worth standing at MYR 1,276,949, the SC should be able to maintain its business in the near terms.


The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. 


The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.


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. The SC however faces moderate business risk as it has to compete with many well established players in the same field.


Based on the above condition, we recommend credit be granted to the SC normally.

 

PROFIT AND LOSS ACCOUNT

 

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

HASIRIA SDN BHD

 

Financial Year End

31/12/2010

31/12/2009

31/12/2008

Months

12

12

12

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

FULL

FULL

FULL

Currency

MYR

MYR

MYR

 

 

 

 

TURNOVER

10,711,423

10,510,317

9,192,062

Other Income

60,499

126,060

31,700

 

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

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

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

Total Turnover

10,771,922

10,636,377

9,223,762

Costs of Goods Sold

<9,767,194>

<9,709,122>

<8,309,178>

 

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

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

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

Gross Profit

1,004,728

927,255

914,584

 

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

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

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

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

131,386

122,951

78,286

 

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

131,386

122,951

78,286

Taxation

<35,669>

<34,702>

<25,197>

 

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

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

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

PROFIT/(LOSS) AFTER TAXATION

95,717

88,249

53,089

 

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

As previously reported

181,232

92,983

39,894

 

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

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

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

As restated

181,232

92,983

39,894

 

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

276,949

181,232

92,983

 

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

276,949

181,232

92,983

 

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

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

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

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

Bank overdraft

38,549

36,991

33,147

Hire purchase

5,292

11,823

10,474

Letter of credit

21,806

17,185

24,406

Term loan / Borrowing

86,875

77,523

52,862

 

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

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

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

 

152,522

143,522

120,889

 

 

BALANCE SHEET

 

HASIRIA SDN BHD

 

ASSETS EMPLOYED:

 

 

 

FIXED ASSETS

662,693

709,858

757,459

 

 

 

 

 

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

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

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

TOTAL LONG TERM ASSETS

662,693

709,858

757,459

 

 

 

 

CURRENT ASSETS

 

 

 

Stocks

286,395

462,356

469,286

Trade debtors

3,490,784

3,053,025

2,857,300

Other debtors, deposits & prepayments

109,200

203,335

132,948

Short term deposits

399,000

350,000

530,214

Amount due from director

-

-

150,872

Cash & bank balances

434,241

519,330

6,907

Others

178,000

106,000

28,000

 

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

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

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

TOTAL CURRENT ASSETS

4,897,620

4,694,046

4,175,527

 

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

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

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

TOTAL ASSET

5,560,313

5,403,904

4,932,986

 

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

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

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

 

 

 

 

CURRENT LIABILITIES

 

 

 

Trade creditors

1,595,640

1,642,888

1,333,007

Other creditors & accruals

53,857

68,165

355,680

Hire purchase & lease creditors

25,860

25,860

45,939

Bank overdraft

406,536

550,351

592,110

Short term borrowings/Term loans

349,510

269,974

482,785

Bill & acceptances payable

271,669

95,806

302,817

Amounts owing to director

485,402

522,872

-

Provision for taxation

19,338

21,955

16,203

 

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

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

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

TOTAL CURRENT LIABILITIES

3,207,812

3,197,871

3,128,541

 

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,689,808

1,496,175

1,046,986

 

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

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

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

TOTAL NET ASSETS

2,352,501

2,206,033

1,804,445

 

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

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

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

 

 

 

 

SHARE CAPITAL

 

 

 

Ordinary share capital

1,000,000

1,000,000

750,000

 

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

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

750,000

 

 

 

 

RESERVES

 

 

 

Retained profit/(loss) carried forward

276,949

181,232

92,983

 

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

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

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

TOTAL RESERVES

276,949

181,232

92,983

 

 

 

 

 

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,276,949

1,181,232

842,983

 

 

 

 

LONG TERM LIABILITIES

 

 

 

Long term loans

982,071

905,460

814,927

Hire purchase creditors

93,481

119,341

146,535

 

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

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

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

TOTAL LONG TERM LIABILITIES

1,075,552

1,024,801

961,462

 

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

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

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

 

2,352,501

2,206,033

1,804,445

 

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

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

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

 

 

 

 

 

 

FINANCIAL RATIO

 

HASIRIA SDN BHD

 

TYPES OF FUNDS

 

 

 

Cash

833,241

869,330

537,121

Net Liquid Funds

426,705

318,979

<54,989>

Net Liquid Assets

1,403,413

1,033,819

577,700

Net Current Assets/(Liabilities)

1,689,808

1,496,175

1,046,986

Net Tangible Assets

2,352,501

2,206,033

1,804,445

Net Monetary Assets

327,861

9,018

<383,762>

BALANCE SHEET ITEMS

 

 

 

Total Borrowings

1,857,458

1,870,986

2,082,296

Total Liabilities

4,283,364

4,222,672

4,090,003

Total Assets

5,560,313

5,403,904

4,932,986

Net Assets

2,352,501

2,206,033

1,804,445

Net Assets Backing

1,276,949

1,181,232

842,983

Shareholders' Funds

1,276,949

1,181,232

842,983

Total Share Capital

1,000,000

1,000,000

750,000

Total Reserves

276,949

181,232

92,983

LIQUIDITY (Times)

 

 

 

Cash Ratio

0.26

0.27

0.17

Liquid Ratio

1.44

1.32

1.18

Current Ratio

1.53

1.47

1.33

WORKING CAPITAL CONTROL (Days)

 

 

 

Stock Ratio

10

16

19

Debtors Ratio

119

106

113

Creditors Ratio

60

62

59

SOLVENCY RATIOS (Times)

 

 

 

Gearing Ratio

1.45

1.58

2.47

Liabilities Ratio

3.35

3.57

4.85

Times Interest Earned Ratio

1.86

1.86

1.65

Assets Backing Ratio

2.35

2.21

1.80

PERFORMANCE RATIO (%)

 

 

 

Operating Profit Margin

1.23

1.17

0.85

Net Profit Margin

0.89

0.84

0.58

Return On Net Assets

12.07

12.08

11.04

Return On Capital Employed

10.19

9.58

8.15

Return On Shareholders' Funds/Equity

7.50

7.47

6.30

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

Contingent Liabilities

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.17

UK Pound

1

Rs.86.43

Euro

1

Rs.68.27

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.