MIRA INFORM REPORT

 

 

Report Date :

04.09.2012

 

 

IDENTIFICATION DETAILS

 

Name :

PADIBERAS NASIONAL BHD

 

 

Formerly Known As :

SYARIKAT PADIBERAS NASIONAL BHD (30/03/1995)

 

 

 

Registered Office :

Menara Hla, 3 Jalan Kia Peng, Level 31, 50450 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

14.04.1994

 

 

Com. Reg. No.:

295514-U

 

 

Legal Form :

Public

 

 

Line of Business :

Import & Distribution of Rice and Growing of Paddy

 

 

No. of Employees :

2,800

 

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 :

Good

Payment Behaviour :

Regular

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

 

 

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

 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

295514-U

COMPANY NAME

:

PADIBERAS NASIONAL BHD

FORMER NAME

:

SYARIKAT PADIBERAS NASIONAL BHD (30/03/1995)

INCORPORATION DATE

:

14/04/1994

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PUBLIC

LISTED STATUS

:

YES

LISTED DATE

:

25/08/1997

 

 

 

 

 

 

REGISTERED ADDRESS

:

MENARA HLA, 3 JALAN KIA PENG, LEVEL 31, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

MENARA HLA, LEVEL 27, 3 JALAN KIA PENG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-21749777

FAX.NO.

:

03-21611887

EMAIL

:

information@bernas.com.my

WEB SITE

:

www.bernas.com.my

CONTACT PERSON

:

WIRA SYED ABDUL JABBAR,BIN SYED HASSAN ( CHAIRMAN )

 

 

 

INDUSTRY CODE

:

01111 51231

PRINCIPAL ACTIVITY

:

IMPORT & DISTRIBUTION OF RICE AND GROWING OF PADDY

AUTHORISED CAPITAL

:

MYR 1,000,000,001.00 DIVIDED INTO
ORDINARY SHARE 1,000,000,001.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 470,401,501.00 DIVIDED INTO
ORDINARY SHARES 470,401,501 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 3,530,732,000 [2011]

NET WORTH

:

MYR 1,196,755,000 [2011]

M1000 OVERALL RANKING

:

115[2011]

M1000 INDUSTRY RANKING

:

6[2011]

 

 

 

STAFF STRENGTH

:

2,800 [2012]

BANKER (S)

:

ALLIANCE BANK MALAYSIA BHD
BANK ISLAM MALAYSIA BHD
BANK SIMPANAN NASIONAL BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

HISTORY / BACKGROUND

As a public limited company, the SC must have at least one shareholder but there is no limit on the maximum number of shareholders. The SC must have at least two directors. A public 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, suing or be sued by other companies. The liabilities of the shareholders are only up 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 must file in its annual return, together with its financial statements with the Registrar of Companies. In Malaysia, all the companies seeking listing on the Bursa Malaysia (Malaysia Stock Exchange) must be public limited companies.

The SC is principally engaged in the (as a / as an) import & distribution of rice and growing of paddy.

The SC was listed on the Main Board of Bursa Malaysia Securities Bhd on 25/08/1997

According to the Malaysia 1000 publication, the SC's ranking are as follows:

 

 

 

 

 

 

YEAR

2011

2009

2008

2005

2004

 

OVERALL RANKING

115

148

135

116

94

 

INDUSTRY RANKING

6

13

9

9

6

 

 

The immediate holding company of the SC is MAYBAN NOMINEES (TEMPATAN) SDN BHD, a company incorporated in MALAYSIA.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MAYBAN NOMINEES (TEMPATAN) SDN BHD
[TRADEWINDS (M) BERHAD]

 

258939

341,375,471.00

72.57

AIBB NOMINEES (TEMPATAN) SDN BHD
[BATU BARA RESOURCES CORPORATION SDN BHD]

 

242231

20,096,000.00

4.27

PERTUBUHAN PELADANG KEBANGSAAN

LOT 9, JALAN 241, SECTION 51A, 46100 PETALING JAYA, SELANGOR, MALAYSIA.

 

17,472,006.00

3.71

PERSATUAN NELAYAN KEBANGSAAN (NEKMAT)

 

 

16,092,006.00

3.42

CITIGROUP NOMINEES (TEMPATAN) SDN BHD
[AMERICAN INTERNATIONAL ASSURANCE BHD]

 

 

9,048,300.00

1.92

HLG NOMINEE (TEMPATAN) SDN BHD
[ILUSTRASI HIKMAT SDN BHD]

 

250650

5,598,003.00

1.19

CITIGROUP NOMINESS (TEMPATAN) SDN BHD
[ING INSURANCE BHD]

 

 

2,381,800.00

0.51

CIMSEC NOMINEES (TEMPATAN) SDN BHD
[BATU BARA RESOURCES CORPORATION SDN BHD]

COMMERCE SQUARE, JALAN SEMANTAN, DAMANSARA HEIGHTS, 10TH FLOOR, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

2,000,000.00

0.43

MAYBANK NOMINEES (TEMPATAN) SDN BHD
[MAYBANK INVESTMENT MANAGEMENT SDN BHD]

 

 

1,687,500.00

0.36

MAYBANK NOMINEE (TEMPATAN) SDN BHD
[MAYBANK INVESTMENT MANAGEMENT SDN BHD]

 

 

1,687,500.00

0.36

REMAINING SHAREHOLDERS

 

 

52,962,915.00

11.26

 

 

 

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

------

 

 

 

470,401,501.00

100.00

 

 

 

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

=====

 

+ Also Director

 

The SC interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Company

(%)

As At

480493

BERAS CORPORATION SDN BHD

100

31/12/2011

 

 

 

 

 

 

BERNAS PROJECT & DEVELOPMENT SDN BHD

100

31/12/2011

 

 

 

 

 

 

428934

BERNAS PRODUCTION SDN BHD

100

31/12/2011

 

 

 

 

 

 

378561

BERNAS DOMINALS SDN BHD

100

31/12/2011

 

 

 

 

 

 

 

BERNAS AGROTECH SDN BHD

100

31/12/2011

 

 

 

 

 

 

 

BERNAS SEED PRO SDN BHD

100

31/12/2011

 

 

 

 

 

 

 

BERNAS OVERSEAS (L) LIMITED

100

31/12/2011

 

 

 

 

 

 

390534

EDARAN BERNAS NASIONAL SDN BHD

80

31/12/2011

 

 

 

 

 

 

162356

JASMINE FOOD CORPORATION SDN BHD

61

31/12/2011

 

 

 

 

 

 

472357

ERA BAYAM KOTA SDN BHD

60

31/12/2011

 

 

 

 

 

 

452413

YHL HOLDING SDN BHD

51

31/12/2011

 

 

 

 

 

 

247191

SYARIKAT FAIZA SDN BHD

51

31/12/2011

 

 

 

 

 

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. SYED ABU BAKAR BIN S MOHSIN ALMOHDZAR

Address

:

1 LENGKOK AMINUDDIN BAKI, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

3761167

New IC No

:

510104-03-5145

Date of Birth

:

04/01/1951

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

22/11/2005

 

 

 

 

 

 

Working Experience

:

PREVIOUSLY A GROUP VICE PRESIDENT OF PERBADANAN. JOINED PERBADANAN IN 1974 & HAS HELD SEVERAL SENIOR POSITIONS IN THE PERBADANAN GROUP

Other Info

:

ACCA, UK HON SECRETARY OF THE EQUETRIAN ASSOCIATION OF MALAYSIA

 

DIRECTOR 2

 

Name Of Subject

:

MR. BAKRY BIN HAMZAH

Address

:

1 JALAN 22/62, BANDAR MENJALARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5525704

New IC No

:

571019-08-6203

Date of Birth

:

19/10/1957

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

14/09/2005

 

 

 

Qualification

:

B.A (HONS) UM IN 1980.

Working Experience

:

ASST DIRECTOR OF MARKETING AT NATIONAL RICE & PADDY BOARD, KNOWN AS SYARIKAT PADI & BERAS NASIONAL (BERNAS) FROM 1980 TO 1984. FROM 1984 TO 1987, OPERATIONS MANAGER AT BUKHARY HOLDINGS SDN BHD

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

DATUK AZIZAN BIN AYOB

Address

:

7, JALAN PRIA 5, TAMAN MALURI, CHERAS, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

0115926

New IC No

:

460714-02-5195

Date of Birth

:

14/07/1946

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

30/09/2003

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

ABDUL RAHMAN BIN DATUH HAJI DAHLAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nationality

:

MALAYSIAN MALAY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

DATO' WIRA SYED ABDUL JABBAR BIN SYED HASSAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nationality

:

MALAYSIAN MALAY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

DATO' MOHD HASHIM BIN ABDULLAH

Address

:

6, JALAN CAMAR 6/2C, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

4206803

New IC No

:

511216-08-5213

Date of Birth

:

16/12/1951

 

 

 

Nationality

:

MALAYSIAN MALAY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 7

 

Name Of Subject

:

DATO' DR MOHD IRWAN SERIGAR BIN ABDULLAH

Address

:

60, JALAN USJ 9/3B, UEP SUBANG JAYA, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

8205048

New IC No

:

570307-03-5529

Date of Birth

:

07/03/1957

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

26/08/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 8

 

Name Of Subject

:

DATIN NAIMAH BINTI RAMLI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

20/12/2011

Remark

:

ALT DIR TO DATO' MOHD HASHIM BIN ABDULLAH

 

 

 

 

 

 

 

 

 



 



MANAGEMENT

 

 

 

1)

Name of Subject

:

WIRA SYED ABDUL JABBAR,BIN SYED HASSAN

 

Position

:

CHAIRMAN

 

 

 

 

 

2)

Name of Subject

:

SABRINA BTE YUN

 

Position

:

GENERAL MANAGER

 

 

 

 

 

3)

Name of Subject

:

BAKRY BIN HAMZAH

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

4)

Name of Subject

:

AHMAD TARMIZI BIN MOHAMED HARIRI

 

Position

:

CHIEF FINANCE OFFICER

 

 

 

 

 

5)

Name of Subject

:

MOHAMMAD YUSSOF

 

Position

:

CREDIT CONTROLLER

 

 

 

 

 

6)

Name of Subject

:

WAN RAZIF BIN WAN MUSA

 

Position

:

GENERAL MANAGER

 

 

 

 

 

7)

Name of Subject

:

ABDUL RAHMAN MOHD NASRI

 

Position

:

HEAD OF MARKETING

 

 

 

 

 

8)

Name of Subject

:

WAN RAMLAH

 

Position

:

ADMIN & HUMAN RESOURCE MANAGER

 

 

 

 

 

9)

Name of Subject

:

MOHAMAD BAHARI ALUAN

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

10)

Name of Subject

:

AHMAD FASOL BN ABU RAHMAN

 

Position

:

CORPORATE AFFAIRS MANAGER

 

 

 

 

 

 

AUDITOR

 

Auditor

:

HANAFIAH RASLAN & MOHAMAD

Auditor' Address

:

MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, LEVEL 23A, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. NASLIZA BTE MOHD NASIR

 

IC / PP No

:

A1446602

 

New IC No

:

691009-10-6080

 

Address

:

52, JALAN NOVA U5/60, SUBANG BESTARI, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

ALLIANCE BANK MALAYSIA BHD

 

 

 

 

 

2)

Name

:

BANK ISLAM MALAYSIA BHD

 

 

 

 

 

3)

Name

:

BANK SIMPANAN NASIONAL BHD

 

 

 

 

 

4)

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

Percentage

:

30%

Overseas

:

YES

Percentage

:

70%

Import Countries

:

INDIA,PAKISTAN,THAILAND



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

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Percentage

:

0%

 

 

 

 

 

 

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,CASH

Type of Customer

:

DEALERS,RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

RICE AND GROWING OF PADDY

 

 

 

 

Brand Name

:

BERNAS,SAGA, JATI,SAKURA,SIAMBEST, PEARL,SUNWHITE,SUNFLOWER,ROYAL UMBRELLA, MAHKOTA, TAJ MAHAL, KERIS

 

 

 

 

Competitor(s)

:

HIDUP BERPAKAT SDN BHD
HOCK BEAN BEE RICE MILL (KUALA PERLIS) SDN BHD
KILANG BERAS BAGAN SERAI SDN BHD
PERUSAHAAN PADI (INTEGRATED) SEBERANG SDN BHD
PJP PELITA LUNDU PLANTATION SDN BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

2,800

2,800

2,000

2,000

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) import & distribution of rice and growing of paddy.

The SC involved in the procurement and processing of paddy, as well as the importation, warehousing, distribution and marketing of rice in Malaysia.

To increase its presence along the entire industry supply chain, the SC also involved in seed and farming activities, international rice joint venture, as well as rice complementary businesses.

The SC continues to fulfill its obligations under a Privatisation Agreement signed with the Government in 1996. These obligations include maintenance of the nation's rice stockpile, acting as the buyer of last resort for paddy farmers, managing the Bumiputera Rice Millers Scheme and the distribution of Paddy Price Subsidies to farmers on behalf of the Government.

The SC offers a wide range of rice including Brown rice, Fragrant rice, Glutinuous rice, Broken rice, Local White rice, Imported White rice, Basmati rice, Parboiled rice and others.

 

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-21749777

Match

:

N/A

 

 

 

Address Provided by Client

:

LEVEL-27 MENARA HLA NO-3 JALAN KIA PENJ 50450 KUALA LUMPUR MALAYSIA

Current Address

:

MENARA HLA, LEVEL 27, 3 JALAN KIA PENG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


we contacted one of the staff from the SC and she provided some information on the SC.

The address provided by client is incorrect. It is at JALAN KIA PENG.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

13.75%

]

 

Return on Net Assets

:

Acceptable

[

14.28%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

79 Days

]

 

Debtor Ratio

:

Favourable

[

29 Days

]

 

Creditors Ratio

:

Favourable

[

8 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

[

1.63 Times

]

 

Current Ratio

:

Favourable

[

2.62 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

:

Acceptable

[

5.38 Times

]

 

Gearing Ratio

:

Favourable

[

0.66 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. 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 :

 

 

 

 

 

 

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. 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. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. 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 : STABLE

 

 

 

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

01111 : Growing of paddy

51231 : Wholesale of rice, other grains, flour and sugar

 

 

INDUSTRY :

AGRICULTURE

 

 

 


The agricultural sector has contributed to the growth and be major contributors to national income and export earnings.The agricultural sector initially derived from the increase in the production of livestock, fisheries, and other miscellaneous crops. The agricultural industry more valuable with the increase in earnings from major commodities such as palm oil, rubber and food commodities.


Palm oil production expected to growth 13.2% at the year 2015/16 which 20.6million tonnes while Poultry production expected to 9.9% at the year 2015/16 which 1.35million tonnes in 2015/16. The 10th Malaysia Economic Plan will boost growth in this industry by attracte more investment. Moreover, sugar consumption expected to reach 7.5% due to contribution of greater disposable income from an average 5.4% real GDP growth over the year 2013-2016 where will allow Malaysians to spend more on processed foods with high sugar content such as soft drinks and sugar confectionery.


The Agriculture sector expanded with a slower pace of 2.1% at the second quarter 2012 compared to 6.9% in the first quarter 2012. The slower growth was attributed by the decline in the production of Rubber and Fishing. However, Livestock showed favourable growth of 11.0% while Forestry turned around to 5.4% as compared to negative 6.3% in the first quarter. Oil Palm registered a growth of 3.5% in second quarter 2012.


The agriculture is a strong contributer to Malaysia's GDP, employment, export revenue, export tax and duty, as well as the economic development. This sector provide income, employment and good investment to the rural areas where enhance the community. Hence, the Government of Malaysia allocated RM1.1bil under the longterm projects (2011-2020) budget 2012 for the development of the agriculture sector and increase productivity and generate higher returns in this sector.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 


CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1994, the SC is a Public Listed company, focusing on import & distribution of rice and growing of paddy. With experiences for about 18 years in the industry, the SC's operation has been running relatively stable since it has built up a relatively sound and stable clientele base which has contributed to its good business growth. Having strong support from its company shareholders has enabled the SC to remain competitive despite the challenging business environment. Moreover, with a large issued and paid up capital of MYR 470,401,501, the SC's business has been expanding comfortably over the years. We are confident with the SC's business and its future growth prospect.


Information revealed that the SC solely focuses on domestic market rather than overseas market. We believe that this narrow market segment would limit the SC's business opportunities and the SC is likely to be affected by the uncertainties in local economy. However, its long presence in the market has enabled the SC to gain certain market shares and established good rapport with its clients. Thus, its business risk is diversified. Being a large entity, the SC has a steady workforce of 2,800 personnel to support its business operations. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


Financially, the SC registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. Return on shareholders' funds of the SC was at an acceptable range 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 to meet its short term financial obligations. 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 1,196,755,000, 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. However, investigation revealed that the SC's raw materials are sourced from both local and overseas suppliers. Hence, the SC is subjected to currency fluctuation risk and high operating costs. Overall the SC has a good control over its resources.


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 potential growth for the industry is marginal and it is quite competitive. With this normal outlook of industry, the SC still has opportunities to enhance its business. As a well established company, the SC should have strong competitive edge against other players in the same fields.


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

 


PROFIT AND LOSS ACCOUNT

 

 

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

PADIBERAS NASIONAL BHD

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

Months

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

3,530,732,000

3,172,973,000

3,259,876,000

2,501,954,000

Other Income

24,761,000

17,057,000

-

-

 

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

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

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

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

Total Turnover

3,555,493,000

3,190,030,000

3,259,876,000

2,501,954,000

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

211,721,000

211,911,000

199,788,000

<142,282,000>

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

27,012,000

33,870,000

38,538,000

47,953,000

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

238,733,000

245,781,000

238,326,000

<94,329,000>

Taxation

<67,377,000>

<59,620,000>

<58,789,000>

36,857,000

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

171,356,000

186,161,000

179,537,000

<57,472,000>

Minority interests

<6,783,000>

<8,623,000>

<10,276,000>

<18,546,000>

 

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

164,573,000

177,538,000

169,261,000

<76,018,000>

 

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

164,573,000

177,538,000

169,261,000

<76,018,000>

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

569,813,000

527,645,000

369,307,000

468,996,000

Prior year adjustment

-

<8,362,000>

-

-

 

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

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

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

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

As restated

569,813,000

519,283,000

369,307,000

468,996,000

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

734,386,000

696,821,000

538,568,000

392,978,000

- General

-

-

<338,000>

-

DIVIDENDS - Ordinary (paid & proposed)

<116,424,000>

<127,008,000>

<10,585,000>

<23,671,000>

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

617,962,000

569,813,000

527,645,000

369,307,000

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Term loan / Borrowing

54,559,000

27,009,000

-

-

Others

-

-

24,196,000

23,051,000

 

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

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

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

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

 

54,559,000

27,009,000

24,196,000

23,051,000

 

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

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

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

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

 

BALANCE SHEET

 

 

PADIBERAS NASIONAL BHD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

392,822,000

381,098,000

357,346,000

361,284,000

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

Subsidiary companies

-

-

232,323,000

-

Associated companies

320,672,000

242,363,000

40,000

210,508,000

Investments

36,462,000

-

-

40,000

Deferred assets

47,089,000

62,704,000

51,454,000

78,205,000

 

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

404,223,000

305,067,000

283,817,000

288,753,000

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

Goodwill on consolidation

139,000

139,000

139,000

210,000

 

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

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

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

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

TOTAL INTANGIBLE ASSETS

139,000

139,000

139,000

210,000

 

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

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

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

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

TOTAL LONG TERM ASSETS

797,184,000

686,304,000

641,302,000

650,247,000

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

766,878,000

583,877,000

552,929,000

371,501,000

Trade debtors

278,073,000

271,554,000

279,198,000

385,662,000

Other debtors, deposits & prepayments

595,782,000

614,610,000

497,929,000

394,654,000

Short term deposits

262,757,000

108,854,000

51,242,000

3,859,000

Deposits with financial institutions

-

-

36,150,000

61,071,000

Cash & bank balances

115,746,000

135,018,000

111,423,000

147,670,000

Money at call & short notice

-

-

-

15,201,000

Others

15,825,000

1,916,000

4,870,000

4,276,000

 

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

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

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

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

TOTAL CURRENT ASSETS

2,035,061,000

1,715,829,000

1,533,741,000

1,383,894,000

 

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

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

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

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

TOTAL ASSET

2,832,245,000

2,402,133,000

2,175,043,000

2,034,141,000

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

77,293,000

96,400,000

64,232,000

46,020,000

Other creditors & accruals

134,106,000

127,166,000

130,570,000

84,939,000

Hire purchase & lease creditors

2,659,000

2,815,000

4,082,000

3,337,000

Bank overdraft

2,035,000

4,234,000

3,959,000

4,340,000

Short term borrowings/Term loans

3,020,000

4,774,000

3,392,000

2,356,000

Other borrowings

9,000,000

4,364,000

-

5,634,000

Bill & acceptances payable

539,934,000

499,190,000

749,135,000

843,126,000

Amounts owing to associated companies

657,000

304,000

338,000

-

Provision for taxation

3,762,000

20,825,000

22,853,000

12,699,000

Other liabilities

5,543,000

4,428,000

3,968,000

3,018,000

 

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

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

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

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

TOTAL CURRENT LIABILITIES

778,009,000

764,500,000

982,529,000

1,005,469,000

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,257,052,000

951,329,000

551,212,000

378,425,000

 

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

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

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

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

TOTAL NET ASSETS

2,054,236,000

1,637,633,000

1,192,514,000

1,028,672,000

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

470,402,000

470,402,000

470,402,000

470,402,000

 

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

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

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

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

TOTAL SHARE CAPITAL

470,402,000

470,402,000

470,402,000

470,402,000

 

 

 

 

 

RESERVES

 

 

 

 

Share premium

7,085,000

7,085,000

7,085,000

-

Capital reserve

2,864,000

2,864,000

2,864,000

-

Exchange equalisation/fluctuation reserve

<3,279,000>

<3,768,000>

<2,262,000>

-

Retained profit/(loss) carried forward

617,962,000

569,813,000

527,645,000

369,307,000

Capital redemption reserve

12,520,000

12,520,000

-

-

Others

<11,000>

-

12,520,000

21,546,000

 

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

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

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

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

TOTAL RESERVES

637,141,000

588,514,000

547,852,000

390,853,000

 

 

 

 

 

MINORITY INTEREST

89,212,000

83,640,000

70,019,000

63,655,000

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,196,755,000

1,142,556,000

1,088,273,000

924,910,000

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

16,341,000

6,211,000

7,937,000

7,541,000

Other long term borrowings

747,750,000

398,372,000

-

-

Hire purchase creditors

5,778,000

4,901,000

4,854,000

5,244,000

Deferred taxation

19,965,000

19,604,000

28,083,000

32,500,000

Retirement benefits provision

67,647,000

65,989,000

63,367,000

58,477,000

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

857,481,000

495,077,000

104,241,000

103,762,000

 

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

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

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

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

 

2,054,236,000

1,637,633,000

1,192,514,000

1,028,672,000

 

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

PADIBERAS NASIONAL BHD

 

TYPES OF FUNDS

 

 

 

 

Cash

378,503,000

243,872,000

162,665,000

151,529,000

Net Liquid Funds

376,468,000

239,638,000

158,706,000

147,189,000

Net Liquid Assets

490,174,000

367,452,000

<1,717,000>

6,924,000

Net Current Assets/(Liabilities)

1,257,052,000

951,329,000

551,212,000

378,425,000

Net Tangible Assets

2,054,097,000

1,637,494,000

1,192,375,000

1,028,462,000

Net Monetary Assets

<367,307,000>

<127,625,000>

<105,958,000>

<96,838,000>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

786,583,000

425,671,000

24,224,000

28,452,000

Total Liabilities

1,635,490,000

1,259,577,000

1,086,770,000

1,109,231,000

Total Assets

2,832,245,000

2,402,133,000

2,175,043,000

2,034,141,000

Net Assets

2,054,236,000

1,637,633,000

1,192,514,000

1,028,672,000

Net Assets Backing

1,196,755,000

1,142,556,000

1,088,273,000

924,910,000

Shareholders' Funds

1,196,755,000

1,142,556,000

1,088,273,000

924,910,000

Total Share Capital

470,402,000

470,402,000

470,402,000

470,402,000

Total Reserves

637,141,000

588,514,000

547,852,000

390,853,000

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.49

0.32

0.17

0.15

Liquid Ratio

1.63

1.48

1.00

1.01

Current Ratio

2.62

2.24

1.56

1.38

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

79

67

62

54

Debtors Ratio

29

31

31

56

Creditors Ratio

8

11

7

7

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.66

0.37

0.02

0.03

Liabilities Ratio

1.37

1.10

1.00

1.20

Times Interest Earned Ratio

5.38

10.10

10.85

<3.09>

Assets Backing Ratio

4.37

3.48

2.53

2.19

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

6.76

7.75

7.31

<3.77>

Net Profit Margin

4.66

5.60

5.19

<3.04>

Return On Net Assets

14.28

16.66

22.01

<6.93>

Return On Capital Employed

13.65

15.78

20.66

<6.48>

Return On Shareholders' Funds/Equity

13.75

15.54

15.55

<8.22>

Dividend Pay Out Ratio (Times)

0.71

0.72

0.06

0.31

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.45

UK Pound

1

Rs.87.98

Euro

1

Rs.69.69

 

 

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.