MIRA INFORM REPORT

 

 

Report Date :

27.07.2012

 

IDENTIFICATION DETAILS

 

Name :

GEGAS POTENSI SDN BHD

 

 

Registered Office :

2-1a, Jalan Pandan 2/2, Pandan Jaya, Cheras, 55100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.09.2011

 

 

Date of Incorporation :

05.05.2010

 

 

Com. Reg. No.:

1000901-M

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Assembly of Plastic Injection Moulding Machines

 

 

No. of Employees :

10

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

           

RATING

STATUS

PROPOSED CREDIT LINE

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

                                   

Status :

Moderate

Payment Behaviour :

Slow

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.

:

1000901-M

COMPANY NAME

:

GEGAS POTENSI SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

05/05/2010

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

2-1A, JALAN PANDAN 2/2, PANDAN JAYA, CHERAS, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

2-1A, JALAN PANDAN 2/2, PANDAN JAYA, CHERAS, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

N/A

FAX.NO.

:

03-80681900

CONTACT PERSON

:

MAZLAN ( MANAGING DIRECTOR )

INDUSTRY CODE

:

25206

PRINCIPAL ACTIVITY

:

ASSEMBLY OF PLASTIC INJECTION MOULDING MACHINES

AUTHORISED CAPITAL

:

MYR 100,000.00 DIVIDED INTO 
ORDINARY SHARE 100,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2.00 DIVIDED INTO 
ORDINARY SHARES 2 CASH OF MYR 1.00 EACH.

SALES

:

MYR 1,615,450 [2011]

NET WORTH

:

MYR <1,119> [2011]

 

 

 

STAFF STRENGTH

:

10 [2012]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

WEAK

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

POOR

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) assembly of plastic injection moulding machines.

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

(%)

MS. JERA ANAK AMIT +

KAMPUNG SUNGAI RASAU, BATU 14, 47100 PUCHONG, SELANGOR, MALAYSIA.

530301-10-6182 4916659

1.00

50.00

MR. MAZLAN BIN MOHD YASIM +

C-G-12, BLOCK C, APARTMENT DAHLIA, JALAN PUTRA PERDANA 3B, TAMAN PUTRA PERDANA, 47100 PUCHONG, SELANGOR, MALAYSIA.

681226-10-5355 A1318057

1.00

50.00

 

 

 

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

------

 

 

 

2.00

100.00

 

 

 

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

=====

 

+ Also Director

 

 

DIRECTORS



DIRECTOR 1

Name Of Subject

:

MS. JERA ANAK AMIT

Address

:

KAMPUNG SUNGAI RASAU, BATU 14, 47100 PUCHONG, SELANGOR, MALAYSIA.

IC / PP No

:

4916659

New IC No

:

530301-10-6182

Date of Birth

:

01/03/1953

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

01/06/2010

 

DIRECTOR 2

 

Name Of Subject

:

MR. MAZLAN BIN MOHD YASIM

Address

:

C-G-12, BLOCK C, APARTMENT DAHLIA, JALAN PUTRA PERDANA 3B, TAMAN PUTRA PERDANA, 47100 PUCHONG, SELANGOR, MALAYSIA.

IC / PP No

:

A1318057

New IC No

:

681226-10-5355

Date of Birth

:

26/12/1968

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

01/06/2010

 

MANAGEMENT

 

 

1)

Name of Subject

:

MAZLAN

 

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

Y. S. KOH & CO

Auditor' Address

:

91M, JALAN SS21/37, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. ONG THIEM HENG

 

IC / PP No

:

5151023

 

New IC No

:

570213-08-6587

 

Address

:

297, JALAN B-8, TAMAN MELAWATI, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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

                            


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

[

X

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

 

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

                                                                                                                                                   

                                                                                                                                                   

                                                                                                                                                   

 

OPERATIONS

 

Products manufactured

:

PLASTIC INJECTION MOULDING MACHINES

 

 

 

Competitor(s)

:

GE-SHEN CORPORATION BHD
HIL INDUSTRIES BHD
LCTH CORPORATION BHD
PETROL ONE RESOURCES BHD
V S INDUSTRY BHD

 

 

 

 

 

 

 

 

 

Total Number of Employees:

 

YEAR

2012

 

 

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

10

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) assembly of plastic injection moulding machines.

The SC undertakes assembly of plastic injection moulding machines.

The SC's warehouse is located in Puchong.

The SC however refused to disclose more information on its operation. 

 

 

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

:

2-1A, JALAN PANDAN, 2/2 PANDAN JAYA CHERAS 55100, KUALA LUMPUR

Current Address

:

2-1A, JALAN PANDAN 2/2, PANDAN JAYA, CHERAS, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


we contacted Ms Wong, the in-charge person of the SC. She provided some information on the SC.


The SC can only be contacted via Ms Wong's mobile at 019-3110457


FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Return on Shareholder Funds

:

Unfavourable

[

100.18%

]

 

Return on Net Assets

:

Unfavourable

[

100.18%

]

 

 

 

 

 

 

 

 

Although the SC's returns showed positive figures it is not reflective of the true situation. The SC incurred losses during the year and its shareholders' funds have turned red. The positive returns on shareholders' funds is the result of losses divided by negative shareholders' funds. The SC's management was inefficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Nil

[

0 Days

]

 

Debtor Ratio

:

Favourable

[

0 Days

]

 

Creditors Ratio

:

Favourable

[

7 Days

]

 

 

 

 

 

 

 

 

As the SC is a service oriented company, the SC does not need to keep stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Acceptable

[

0.98 Times

]

 

Current Ratio

:

Unfavourable

[

0.98 Times

]

 

 

 

 

 

 

 

 

The SC's liquid ratio was slightly low. This could indicate that the SC's working capital was slightly deficient. The SC will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was nil as it did not pay any interest during the year. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC's liquidity was at an acceptable range. If the SC is able to obtain further short term financing, it should be able to meet all its short term obligations. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the SC : 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

 

25206 : Manufacture of plastic injection moulded components

 

 

INDUSTRY :

MANUFACTURING

 

 


The manufacturing sector expanded by 5.1% in the third quarter ended September 30,2011 on a year-on-year basis as supply-chain disruptions were reduced and following higher output of domestic-related industries as well as a weaker external environment. Investments in Malaysia's manufacturing sector reached RM40.7 billion in the first 10 months of 2011 and the full-year figure is expected to surpass year 2010's numbers.


The E&E sub-sector is expected to moderate in the second half of 2011, due to the increasingly uncertain external environment. Output of E&E contracted 4.9% during the first seven months of 2011 largely due to the global supply chain disruptions and lower global chip sales. Lower orders for notebooks and personal computers arising from increased preference for smartphones and media tables coupled with uncertainties over the US and European economies, adversely affected the sub-sector.


The wood and wood products sub-sector, on the other hand, is expected to rebound when Japan's reconstruction efforts gain momentum and new housing projects start in the Middle East after the month of Ramadhan in the year 2011. Production of wood and wood products contracted 7% during the first half of the year 2011, largely due to slower output of wooden and cane furniture as well as veneer sheets and plywood.


The rubber products sub-sector is expected to remain resilient supported by continuous improvements in medical and healthcare standards in emerging markets as well as demand from niche markets such as the oil and gas sector for rubber hoses. Output of rubber products increased 15.4% during the first seven months of 2011, supported by continuos demand for rubber gloves as well as rubber tyres and tubes.


For the textiles, apparel and footwear sub-sector, the local industry players's ability to produce quality designs and diversification of product lines to cater to different market segments as well as market under their own labels are expected to sustain the growth of this sub-sector. Furthermore, the upcoming 2012 Olympic Games is anticipated to boost demand for sports attire and strengthen the sub-sector's growth further. Production of textiles, apparel and foorwear grew 14.8% during the first half of the year 2011 led by higher output of wearing apparel and footwear.


During the first seven months of 2011, production of chemicals and chemical products rose 5.6%. While output of basic chemicals contracted 8.2%, other chemical and plastic products recorded a positive growth of 30% and 20.7% respectively. On the domestic front, output of construction related materials as a group grew strongly by 20% following robust housing construction activities and aided by ongoing implementation of civil engineering projects. The manufacture of transport equipment shrank 9.4% as a result of supply chain disruptions caused by the earthquake and tsunami in Japan. In addition, production of food rose 2.4% driven by the manufacture of refined palm oil processed and preserved fish products and other food products. Specifically, production of beverages increased 12.6% while tobacco declined 2.3%.


Going forward, the manufacturing sector is expected to be driven by higher value-added activities. In this regard, further tax and non-tax incentives will be provided to encourage manufacturers to move up the value chain. The new growth initiatives in the manufacturing sector such as solar and medial services would be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

Incorporated in 2010, the SC is a Private Limited company, focusing on assembly of plastic injection moulding machines. The SC has been in business for 2 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. With a weak shareholders' backing, the SC's capital position is weak. Inadequate capital may be a constraint to the SC as it limits its ability to expand its business in future. We noted that the SC's issued and paid up capital stands at only MYR 2. This means that its creditors are only able to recover a limited amount. Hence, caution is advised.


Although the SC has been in the business for less than a decade, it has established an extensive marketing network to support its business operation. Penetrating into the overseas countries has well diversified its business risk. However, the SC faces fierce competition from other well established company. Being a small company, the SC's business operation is supported by 10 employees. An unfavourable return on shareholders' funds implies that the SC's management capability is weak. Without capable management, the SC is unlikely to be successful and often contribute to unacceptable levels of accountability. Weak management can affect productivity, profitability, sales growth and ultimately can result in the failure of a business.


The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC however managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. Unfortunately, the SC's unfavourable financial performance over the years has wiped out its shareholders' funds to a deficit of MYR 1,119. Therefore, the SC as a going concern is much dependent on its ability to generate sufficient cash flow and obtain additional financing to meet its future obligations.


Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth. 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. 


Based on the historical financial data, we concluded that the SC's payment habit is fair. With poor financial condition, the SC may unable to pay its creditors on the given period of time.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. However, the SC does not take any advantage from this favourable condition as it is making losses. The SC should adopt more competitive strategies to retain its business position in the market.


Based on the above unfavourable condition, we regard granting credit to the SC to be quite risky. Hence, credit is not recommended.

 

PROFIT AND LOSS ACCOUNT

 

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

GEGAS POTENSI SDN BHD

 

Financial Year End

30/09/2011

Months

16

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

FULL

Currency

MYR

 

 

TURNOVER

1,615,450

Other Income

146

 

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

Total Turnover

1,615,596

Costs of Goods Sold

<1,447,547>

 

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

Gross Profit

168,049

 

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

 

 

PROFIT/(LOSS) FROM OPERATIONS

<1,121>

 

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

PROFIT/(LOSS) BEFORE TAXATION

<1,121>

 

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

PROFIT/(LOSS) AFTER TAXATION

<1,121>

 

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<1,121>

 

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<1,121>

 

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

                                                                                                              

 

BALANCE SHEET

 

GEGAS POTENSI SDN BHD

 

ASSETS EMPLOYED:

 

FIXED ASSETS

1,950

 

 

 

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

TOTAL LONG TERM ASSETS

1,950

 

 

CURRENT ASSETS

 

Other debtors, deposits & prepayments

77,586

Amount due from director

2

Cash & bank balances

106,297

 

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

TOTAL CURRENT ASSETS

183,885

 

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

TOTAL ASSET

185,835

 

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

 

 

CURRENT LIABILITIES

 

Trade creditors

27,974

Other creditors & accruals

158,980

 

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

TOTAL CURRENT LIABILITIES

186,954

 

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

NET CURRENT ASSETS/(LIABILITIES)

<3,069>

 

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

TOTAL NET ASSETS

<1,119>

 

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

 

 

SHARE CAPITAL

 

Ordinary share capital

2

 

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

TOTAL SHARE CAPITAL

2

 

 

RESERVES

 

Retained profit/(loss) carried forward

<1,121>

 

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

TOTAL RESERVES

<1,121>

 

 

 

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

SHAREHOLDERS' FUNDS/EQUITY

<1,119>

 

 

 

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

 

<1,119>

 

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

 

 

FINANCIAL RATIO

 

TYPES OF FUNDS

 

Cash

106,297

Net Liquid Funds

106,297

Net Liquid Assets

<3,069>

Net Current Assets/(Liabilities)

<3,069>

Net Tangible Assets

<1,119>

Net Monetary Assets

<3,069>

BALANCE SHEET ITEMS

 

Total Borrowings

0

Total Liabilities

186,954

Total Assets

185,835

Net Assets

<1,119>

Net Assets Backing

<1,119>

Shareholders' Funds

<1,119>

Total Share Capital

2

Total Reserves

<1,121>

LIQUIDITY (Times)

 

Cash Ratio

0.57

Liquid Ratio

0.98

Current Ratio

0.98

WORKING CAPITAL CONTROL (Days)

 

Stock Ratio

0

Debtors Ratio

0

Creditors Ratio

7

SOLVENCY RATIOS (Times)

 

Gearing Ratio

0.00

Liabilities Ratio

<167.07>

Times Interest Earned Ratio

0.00

Assets Backing Ratio

<559.50>

PERFORMANCE RATIO (%)

 

Operating Profit Margin

<0.07>

Net Profit Margin

<0.07>

Return On Net Assets

100.18

Return On Capital Employed

100.18

Return On Shareholders' Funds/Equity

100.18

Dividend Pay Out Ratio (Times)

0.00

NOTES TO ACCOUNTS

 

Contingent Liabilities

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.95

UK Pound

1

Rs.86.56

Euro

1

Rs.67.95

 

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.