MIRA INFORM REPORT

 

 

Report Date :

17.12.2012

 

IDENTIFICATION DETAILS

 

Name :

RIKEVITA (MALAYSIA) SDN. BHD.

 

 

Registered Office :

Suite 6.1a, Menara Pelangi, Jalan Kuning, Taman Kuning,Level 6, 80400 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

02.01.1991

 

 

Reg. No.:

210381-U

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturer of Food Ingredients

 

 

No. of Employees :

300

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

malaysia - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

210381-U

COMPANY NAME

:

RIKEVITA (MALAYSIA) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

02/01/1991

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 6.1A, MENARA PELANGI, JALAN KUNING, TAMAN KUNING,LEVEL 6, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

NO 11, JALAN BAYU, 81200 JOHOR BAHRU, JOHOR, MALAYSIA.

TEL.NO.

:

07-2381733

FAX.NO.

:

07-2381737

CONTACT PERSON

:

TAKEO YOTSUZUKA ( MANAGER )

INDUSTRY CODE

:

15499

PRINCIPAL ACTIVITY

:

MANUFACTURER OF FOOD INGREDIENTS

AUTHORISED CAPITAL

:

MYR 150,000,000.00 DIVIDED INTO
ORDINARY SHARE 150,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 126,000,000.00 DIVIDED INTO
ORDINARY SHARES 126,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 207,615,207 [2011]

NET WORTH

:

MYR 95,422,093 [2011]

STAFF STRENGTH

:

300 [2012]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

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) manufacturer of food ingredients.

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

The immediate holding company of the SC is RIKEN VITAMIN CO. LTD, a company incorporated in JAPAN.

The ultimate holding company of the SC is RIKEN VITAMIN CO.LTD, a company incorporated in JAPAN.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

RIKEN VITAMIN CO. LTD

XLZ000008242

113,400,000.00

90.00

MITSUBISHI CORPORATION

XLZ000000203

12,600,000.00

10.00

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

------

126,000,000.00

100.00

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

=====

 

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

TSUTOMU MOJIZUKI

Address

:

NICE URBAN MIYAZAKI-DAI, FALCHION 403, 2-12-9 MIYAZAKI, MIYAMEE-KU, KAWASAKI-SHI, KANAGAWA-KEN 216-0033, JAPAN, MALAYSIA.

IC / PP No

:

TZ0545732

Date of Birth

:

02/03/1962

Nationality

:

JAPANESE

Date of Appointment

:

07/06/2011

 

DIRECTOR 2

 

Name Of Subject

:

YUJI YAMAGUCHI

Address

:

20-8-E, AZAMINO 3-CHOME, AOBA-KU YOKOHAMA-SHI, KANAGAWA, 225-0011, JAPAN, FOREIGN, MALAYSIA.

IC / PP No

:

TZ0403792

Date of Birth

:

11/11/1968

Nationality

:

MALAYSIAN

Date of Appointment

:

25/11/2011

 

DIRECTOR 3

 

Name Of Subject

:

TAKEO YOTSUZUKA

Address

:

NO. 11, BUKIT KESENANGAN, JALAN ABDUL SAMAD, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

TK1838478

Date of Birth

:

05/01/1966

Nationality

:

JAPANESE

Date of Appointment

:

03/07/2008

 

DIRECTOR 4

 

Name Of Subject

:

MASANORI YOSHIYAMA

Address

:

D 502, STULANG VIEW CONDOMINIUM, JALAN KUNING, TAMAN PELANGI, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

TG0183897

Date of Birth

:

16/01/1972

Nationality

:

JAPANESE

Date of Appointment

:

01/10/2006



MANAGEMENT

 

 

 

1)

Name of Subject

:

TAKEO YOTSUZUKA

Position

:

MANAGER

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

MENARA ANSAR, 65, JALAN TRUS, LEVEL 16, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SHAHNIZA ANOM BTE ELIAS

New IC No

:

680929-01-5802

Address

:

63,JLN.TEMBAGA MERAH 9, TAMAN SRI SKUDAI, 81300 JOHOR BHARU, JOHOR, MALAYSIA.

 

2)

Company Secretary

:

MS. LEONG SIEW FOONG

New IC No

:

671205-10-5330

Address

:

NO. 3, JALAN BAYAM, TAMAN KOTA BESAR, 81900 KOTA TINGGI, JOHOR, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our investigation.

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

LEGAL CHECK AGAINST 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

Import Countries

:

ASIA,EUROPE


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

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

UNITED KINGDOM, UNITED STATES, AUSTRALIA, CHINA, CANADA, EUROPE, MIDDLE EAST, ASIA

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES, LETTER OF CREDIT (LC),TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

FOOD MANUFACTURERS

 

 

OPERATIONS

 

Products manufactured

:

FOOD EMULSIFIERS AND FATTY ACID ESTERS

Competitor(s)

:

AJINOMOTO (MALAYSIA) BHD
DANISCO MALAYSIA SDN BHD
LONDON BISCUITS BHD
MAMEE - DOUBLE DECKER (M) BHD
THREE-A RESOURCES BHD

Member(s) / Affiliate(s)

:

MALAYSIA FOOD & BEVERAGE INDUSTRY

Ownership of premises

:

OWNED

Factory Size

:

11 ACRES

Production Line

:

3

Production Capacity

:

27,000 TONNES PER YEAR

Shifts

:

3 (24 HOURS OPERATING)

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

2007

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

COMPANY

300

300

300

257

261

244

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturer of food ingredients.

The SC's products have wide applications mainly in the processing and manufacturing of foods includes cakes, ice-cream, biscuits, food powder (chicken and prawn) etc.

The SC's emulsifiers are the key ingredients used to improve the quality of food products, fats and oils, which are also used in the cosmetic and plastic industries.

According to the SC, it has Sales Office based in Singapore.

The SC utilizes the advanced automated and semi-automated machineries to ensure production of high quality products.


PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

60 0 7 232-1737

Current Telephone Number

:

07-2381733

Match

:

NO

Address Provided by Client

:

NO 11, JALAN BAYU,81200,JOHOR BAHRU,JOHOR.

Current Address

:

NO 11, JALAN BAYU, 81200 JOHOR BAHRU, JOHOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 10th December 2012 we contacted one of the staff from the Admin Department.She provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

12.27%

]

Profit/(Loss) Before Tax

:

Increased

[

20.00%

]

Return on Shareholder Funds

:

Unfavourable

[

2.21%

]

Return on Net Assets

:

Unfavourable

[

4.21%

]

The higher turnover could be attributed to the favourable market condition and the SC could be gaining the market share progressively.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

[

37 Days

]

Debtor Ratio

:

Favourable

[

5 Days

]

Creditors Ratio

:

Favourable

[

43 Days

]

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Unfavourable

[

0.51 Times

]

Current Ratio

:

Unfavourable

[

0.91 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

:

Unfavourable

[

1.73 Times

]

Gearing Ratio

:

Favourable

[

0.36 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 lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

Overall Assessment :

Generally, the SC's performance has improved with higher turnover and profit. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. 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 as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

Overall financial condition of the SC : POOR

 

 

 

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

15499 : Manufacture of other food products, n.e.c.

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 1991, the SC is a Private Limited company, focusing on manufacturer of food ingredients. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The SC is a large entity with strong capital position.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. The SC is a fairly large and rapidly growing company with over 300 staff in its operations 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. 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. However, being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 95,422,093, 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. Overall the SC has a good control over its resources.


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.


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)

RIKEVITA (MALAYSIA) SDN. BHD.

 

Financial Year End

31/03/2011

31/03/2010

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

207,615,207

184,922,964

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

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

Total Turnover

207,615,207

184,922,964

Costs of Goods Sold

<191,068,615>

<162,966,561>

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

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

Gross Profit

16,546,592

21,956,403

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

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

PROFIT/(LOSS) FROM OPERATIONS

2,110,746

1,759,015

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

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

PROFIT/(LOSS) BEFORE TAXATION

2,110,746

1,759,015

Taxation

<4,748>

<247,311>

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

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

PROFIT/(LOSS) AFTER TAXATION

2,105,998

1,511,704

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

6,316,095

5,104,391

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

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

As restated

6,316,095

5,104,391

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

8,422,093

6,616,095

DIVIDENDS - Ordinary (paid & proposed)

<1,000,000>

<300,000>

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

7,422,093

6,316,095

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

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

INTEREST EXPENSE (as per notes to P&L)

Lease interest

-

3,020

Term loan / Borrowing

1,586,188

1,346,322

Others

1,287,072

2,163,030

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

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

2,873,260

3,512,372

 

 

 

 

 

 

BALANCE SHEET

 

 

RIKEVITA (MALAYSIA) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

122,878,097

123,569,372

LONG TERM INVESTMENTS/OTHER ASSETS

Others

15,000

15,000

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

15,000

15,000

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

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

TOTAL LONG TERM ASSETS

122,893,097

123,584,372

CURRENT ASSETS

Stocks

21,210,238

18,234,543

Trade debtors

2,665,113

2,322,278

Other debtors, deposits & prepayments

2,623,589

1,895,575

Amount due from holding company

882,588

840,622

Amount due from related companies

18,629,986

9,734,462

Cash & bank balances

2,030,427

8,294,191

Others

487,248

397,116

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

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

TOTAL CURRENT ASSETS

48,529,189

41,718,787

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

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

TOTAL ASSET

171,422,286

165,303,159

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

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

CURRENT LIABILITIES

Trade creditors

22,750,986

13,620,049

Other creditors & accruals

1,559,615

1,546,100

Short term borrowings/Term loans

17,457,143

6,732,143

Amounts owing to holding company

959,525

846,627

Amounts owing to related companies

268,953

296,181

Dividends payable/proposed

1,000,000

300,000

Other liabilities

9,072,200

12,855,750

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

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

TOTAL CURRENT LIABILITIES

53,068,422

36,196,850

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

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

NET CURRENT ASSETS/(LIABILITIES)

<4,539,233>

5,521,937

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

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

TOTAL NET ASSETS

118,353,864

129,106,309

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

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

SHARE CAPITAL

Ordinary share capital

88,000,000

88,000,000

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

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

TOTAL SHARE CAPITAL

88,000,000

88,000,000

RESERVES

Retained profit/(loss) carried forward

7,422,093

6,316,095

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

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

TOTAL RESERVES

7,422,093

6,316,095

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

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

SHAREHOLDERS' FUNDS/EQUITY

95,422,093

94,316,095

LONG TERM LIABILITIES

Long term loans

17,178,571

19,035,714

Others

5,753,200

15,754,500

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

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

TOTAL LONG TERM LIABILITIES

22,931,771

34,790,214

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

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

118,353,864

129,106,309

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

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

 

 

 

FINANCIAL RATIO

 

 

RIKEVITA (MALAYSIA) SDN. BHD.

 

TYPES OF FUNDS

Cash

2,030,427

8,294,191

Net Liquid Funds

2,030,427

8,294,191

Net Liquid Assets

<25,749,471>

<12,712,606>

Net Current Assets/(Liabilities)

<4,539,233>

5,521,937

Net Tangible Assets

118,353,864

129,106,309

Net Monetary Assets

<48,681,242>

<47,502,820>

BALANCE SHEET ITEMS

Total Borrowings

34,635,714

25,767,857

Total Liabilities

76,000,193

70,987,064

Total Assets

171,422,286

165,303,159

Net Assets

118,353,864

129,106,309

Net Assets Backing

95,422,093

94,316,095

Shareholders' Funds

95,422,093

94,316,095

Total Share Capital

88,000,000

88,000,000

Total Reserves

7,422,093

6,316,095

LIQUIDITY (Times)

Cash Ratio

0.04

0.23

Liquid Ratio

0.51

0.65

Current Ratio

0.91

1.15

WORKING CAPITAL CONTROL (Days)

Stock Ratio

37

36

Debtors Ratio

5

5

Creditors Ratio

43

31

SOLVENCY RATIOS (Times)

Gearing Ratio

0.36

0.27

Liabilities Ratio

0.80

0.75

Times Interest Earned Ratio

1.73

1.50

Assets Backing Ratio

1.34

1.47

PERFORMANCE RATIO (%)

Operating Profit Margin

1.02

0.95

Net Profit Margin

1.01

0.82

Return On Net Assets

4.21

4.08

Return On Capital Employed

4.21

4.08

Return On Shareholders' Funds/Equity

2.21

1.60

Dividend Pay Out Ratio (Times)

0.47

0.20

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.87.78

Euro

1

Rs.71.29

 

 

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.