MIRA INFORM REPORT

 

 

Report Date :

30.06.2012

 

 

 

Tel. No.:

604-633-4988

Fax No.:

604-642-7787

 

IDENTIFICATION DETAILS

 

Name :

DELL GLOBAL BUSINESS CENTER SDN BHD

 

 

Registered Office :

Suite 21.01, The Gardens South Tower, Mid Valley City, Lingkaran Syed Putra, Level 21, 59200 Kuala Lumpur, Wilayah Persekutuan,

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.01.2011

 

 

Date of Incorporation :

28.07.2006

 

 

Com. Reg. No.:

742481-H

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Global Business Support Centre

 

 

No. of Employees :

1,000

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

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.

:

742481-H

COMPANY NAME

:

DELL GLOBAL BUSINESS CENTER SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

28/07/2006

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE 21.01, THE GARDENS SOUTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 21, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

PLOT P27, BAYAN LEPAS INDUSTRIAL ZONE, PHASE IV, 11900 BAYAN LEPAS, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-6334888

FAX.NO.

:

04-6337135

WEB SITE

:

www.dell.com.my

CONTACT PERSON

:

YURI WAHAB ( COUNTRY MANAGER )

 

 

 

INDUSTRY CODE

:

72900

PRINCIPAL ACTIVITY

:

BUSINESS OF OPERATING A GLOBAL BUSINESS SUPPORT CENTRE

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 570,531,011 [2011]

NET WORTH

:

MYR 71,189,509 [2011]

 

 

 

STAFF STRENGTH

:

1,000 [2012]

BANKER (S)

:

CIMB BANK BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

N/A

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) business of operating a global business support centre.

 

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

 

The immediate holding company of the SC is DELL GLOBAL BV, a company incorporated in NETHERLANDS.

 

The ultimate holding company of the SC is DELL INC, a company incorporated in UNITED STATES.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

DELL GLOBAL BV

TRANSFORMATORWEG 38-72, 1014 AK AMSTERDAM, NETHERLANDS.

33238739

500,000.00

100.00

 

 

 

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

------

 

 

 

500,000.00

100.00

 

 

 

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

=====

 

 

+ Also Director

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. CHAN SOON TAT

Address

:

10-20, GURNEY PALACE CONDOMINIUM, JALAN CONCORDIA, 10250 GEORGETOWN, PULAU PINANG, MALAYSIA.

IC / PP No

:

5112426

New IC No

:

570220-07-5819

Date of Birth

:

20/02/1957

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

16/03/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. JANET BAWCOM WRIGHT

Address

:

1314 SHANNON OAKS TRAIL, AUSTIN TEXAS 78746, UNITED STATES.

IC / PP No

:

P455939644

 

 

 

Date of Birth

:

19/09/1964

 

 

 

Nationality

:

AMERICAN

Date of Appointment

:

30/04/2008

Remark

:

OLD PP: P133015385

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. TANG CHING SIANG

Address

:

TANJONG BUNGAH, 10 TINGKAT LAUT, 11200 TANJONG TOKONG, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

611009-02-5507

Date of Birth

:

09/10/1961

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

29/03/2012

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

YURI WAHAB

 

Position

:

COUNTRY MANAGER

 

 

 

 

 

2)

Name of Subject

:

AZRIN ABDUL SHUKOR

 

Position

:

GENERAL MANAGER

 

 

 

 

 

3)

Name of Subject

:

ADNAN ZANAL ABIDIN

 

Position

:

GENERAL MANAGER

 

 

 

 

 

4)

Name of Subject

:

SIMON WONG WOON KEONG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

5)

Name of Subject

:

JOHNNY ONG

 

Position

:

FINANCIAL CONTROLLER

 

 

 

 

 

6)

Name of Subject

:

JASMIN BEGUM

 

Position

:

CORPORATE COMMUNICATIONS MANAGER

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

BANGUNAN KWSP, JALAN SULTAN AHMAD SHAH, PO BOX 856, 10810 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. LIM POH SENG

 

IC / PP No

:

A1846175

 

New IC No

:

710228-10-5519

 

Address

:

22, JALAN SS 3/22, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

2)

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

:

NO

Percentage

:

0%

Overseas

:

NO

Percentage

:

0%

 

 

 

 

 

 


The SC does not have trade supplier as it is a service provider company. 

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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

60%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

40%

Export Market

:

EUROPE, ASIA

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

INFORMATION TECHNOLOGY INDUSTRY

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Services

:

GLOBAL BUSINESS SUPPORT CENTRE

 

 

 

 

Competitor(s)

:

ARIANTEC GLOBAL BHD
MULTIMEDIA DEVELOPMENT CORPORATION SDN BHD
PRIVASIA TECHNOLOGY BHD
WIPRO LTD
YTL E-SOLUTIONS BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

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

1,000

1,000

1,000

800

520

490

 

 

 

 

Branch

:

YES

 

Branch(es)

:

2900 PERSIARAN APEC, 63000 CYBERJAYA, SELANGOR, MALAYSIA.
Tel No: 03-83101888
Fax No: 03-83180618

 

 

 

 

 

 

 

Other Information:


The SC is principally engaged in the (as a / as an) business of operating a global business support centre.

The SC acts a Global Business Support Centre to provide various outsourced services to other Dell entitities globally.

The services includes Information Technology, customer contact centre support, global financial services and other related services.

We were informed that the SC acts as the Headquarters and it has another branch based in Cyberjaya.

Besides that the SC is sharing the working premises with its related company, Dell Asia Pacific Sdn.Bhd.


PROJECTS

No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

604-6334988

Current Telephone Number

:

04-6334888

Match

:

YES

 

 

 

Address Provided by Client

:

PLOT P27, BAYAN LEPAS INDUSTRIAL ZONE, PHASE IV, 11900, BAYAN LEPAS

Current Address

:

PLOT P27, BAYAN LEPAS INDUSTRIAL ZONE, PHASE IV, 11900 BAYAN LEPAS, PULAU PINANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the SC staff and she provided some information regarding to the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

9.13%

]

 

Profit/(Loss) Before Tax

:

Increased

[

0.15%

]

 

Return on Shareholder Funds

:

Favourable

[

43.85%

]

 

Return on Net Assets

:

Acceptable

[

17.90%

]

 

 

 

 

 

 

 

 

The higher turnover could be attributed to the favourable market condition.The SC's management have been efficient in controlling its operating costs. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Nil

[

0 Days

]

 

Debtor Ratio

:

Favourable

[

0 Days

]

 

Creditors Ratio

:

Favourable

[

0 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

:

Favourable

[

2.15 Times

]

 

Current Ratio

:

Favourable

[

2.15 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

:

Favourable

[

51.17 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. 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 :

 

 

 

 

 

 

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. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. 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 : STRONG

 

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

72900 : Other computer related activities

 

 

INDUSTRY :

INFORMATION TECHNOLOGY

 


Malaysia's information and communication technology (ICT) industry is expected to achieve a significant milestone in 2011 with the transformation of the country into a net ICT exporter.The ICT industry in Malaysia estimated to provide 50,000 total jobs and RM5.5billion investments by 2015.


The ICT services sector is expected to continue to play a crucial role in contributing to Malaysia's aim of achieving high income status by 2020. In the 2012 Budget, projects to drive demand were announced, including RM51.2 billion of development expenditure.


Software market is expected to grow to US$857 million in 2011, consolidating a recovery in 2010 but businesses remain cautious and focused on Return on Investment (ROI). By 2015, software spending forcasts to rise healthily to US$1.3 billion.


Currently, there are more than 1,900 ICT companies operating within the Multimedia Super Corridor (MSC) Malaysia area, ranging from Internet-based business solutions and services providers to software application and services providers. 


Some of the sectors where Malaysian ICT companies can provide world-class applications include Financial Services Industry (FSI), Telecommunications (Telco) and e-Government services. MSC Malaysia industry development programs have produced globally competitive ICT companies delivering award winning solutions and world class services. This will also see the transformation of Malaysia into a knowledge-based society using ICT as an 'enabler' across all economic sectors to drive the country's productivity and innovations to become a vibrant hub for creation of ICT solutions.


The companies in Malaysia are beginning to appreciate the value of "cloud computing" as a means to reduce their operational costs, while increasing mobility and productivity. Apart from cloud computing, data centre and desktop virtualisation will continue to be the enabling technologies that support the expansion of local businesses.


Starting from 2011 and the years ahead will be pivotal, as the decisions ICT leaders make will not only have an impact on how they compete but also the long-term success of their businesses. Visionary ICT leaders will see opportunities in the explosion of data as new sources of innovation and they must take advantage of technology to rethink and re-architect business infrastructure.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 


CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2006, the SC is a Private Limited company, focusing on business of operating a global business support centre. Having been in business for 6 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. 


Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. Being a large entity, the SC has a steady workforce of 1,000 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright.


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. Based on the higher profitability, the SC has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. 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. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 71,189,509, the SC should be able to maintain its business in the near terms.


Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. 


We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. 


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.


In view of the above favourable condition, we recommend credit be proceeded to the SC with favourable term.


PROFIT AND LOSS ACCOUNT

 

 

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

DELL GLOBAL BUSINESS CENTER SDN BHD

 

Financial Year End

31/01/2011

31/01/2010

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

570,531,011

522,777,377

Other Income

35,561,963

33,636,330

 

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

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

Total Turnover

606,092,974

556,413,707

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

31,272,863

31,225,386

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

31,272,863

31,225,386

Taxation

<57,225>

<80,787>

 

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

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

PROFIT/(LOSS) AFTER TAXATION

31,215,638

31,144,599

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

39,473,871

8,329,272

 

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

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

As restated

39,473,871

8,329,272

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

70,689,509

39,473,871

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

70,689,509

39,473,871

 

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

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

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

Others

623,314

-

 

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

 

 

623,314

 

 

 

 

BALANCE SHEET

 

 

DELL GLOBAL BUSINESS CENTER SDN BHD

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

84,626,872

116,428,999

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

84,626,872

116,428,999

 

 

 

CURRENT ASSETS

 

 

Trade debtors

31,808

-

Other debtors, deposits & prepayments

11,416,572

6,269,728

Short term deposits

10,825,605

29,578,135

Amount due from related companies

12,077,866

11,896,404

Cash & bank balances

23,531,324

8,201,902

Others

116,952,646

56,450,936

 

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

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

TOTAL CURRENT ASSETS

174,835,821

112,397,105

 

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

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

TOTAL ASSET

259,462,693

228,826,104

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Other creditors & accruals

78,265,891

66,295,993

Amounts owing to related companies

3,015,793

3,578,150

 

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

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

TOTAL CURRENT LIABILITIES

81,281,684

69,874,143

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

93,554,137

42,522,962

 

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

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

TOTAL NET ASSETS

178,181,009

158,951,961

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

500,000

500,000

 

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

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

TOTAL SHARE CAPITAL

500,000

500,000

 

 

 

RESERVES

 

 

Retained profit/(loss) carried forward

70,689,509

39,473,871

 

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

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

TOTAL RESERVES

70,689,509

39,473,871

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

71,189,509

39,973,871

 

 

 

LONG TERM LIABILITIES

 

 

Others

106,991,500

118,978,090

 

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

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

TOTAL LONG TERM LIABILITIES

106,991,500

118,978,090

 

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

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

 

178,181,009

158,951,961

 

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

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

 

 

 

 

 

 

FINANCIAL RATIO

 

 

DELL GLOBAL BUSINESS CENTER SDN BHD

 

TYPES OF FUNDS

 

 

Cash

34,356,929

37,780,037

Net Liquid Funds

34,356,929

37,780,037

Net Liquid Assets

93,554,137

42,522,962

Net Current Assets/(Liabilities)

93,554,137

42,522,962

Net Tangible Assets

178,181,009

158,951,961

Net Monetary Assets

<13,437,363>

<76,455,128>

BALANCE SHEET ITEMS

 

 

Total Borrowings

0

0

Total Liabilities

188,273,184

188,852,233

Total Assets

259,462,693

228,826,104

Net Assets

178,181,009

158,951,961

Net Assets Backing

71,189,509

39,973,871

Shareholders' Funds

71,189,509

39,973,871

Total Share Capital

500,000

500,000

Total Reserves

70,689,509

39,473,871

LIQUIDITY (Times)

 

 

Cash Ratio

0.42

0.54

Liquid Ratio

2.15

1.61

Current Ratio

2.15

1.61

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

0

0

Debtors Ratio

0

0

Creditors Ratio

0

0

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.00

0.00

Liabilities Ratio

2.64

4.72

Times Interest Earned Ratio

51.17

0.00

Assets Backing Ratio

356.36

317.90

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

5.48

5.97

Net Profit Margin

5.47

5.96

Return On Net Assets

17.90

19.64

Return On Capital Employed

17.90

19.64

Return On Shareholders' Funds/Equity

43.85

77.91

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.56.31

UK Pound

1

Rs.88.06

Euro

1

Rs.70.91

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.