MIRA INFORM REPORT

 

 

Report Date :

21.09.2012

 

IDENTIFICATION DETAILS

 

Name :

MALBEN POLYMER SDN BHD

 

 

 

Registered Office :

Suite 1005, Kompleks Selangor Jalan Sultan 10th Floor,, 50000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

26.03.2010

 

 

Com. Reg. No.:

895459-X

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading in Commodities

 

 

No. of Employees :

2

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Unknown

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.

:

895459-X

COMPANY NAME

:

MALBEN POLYMER SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

26/03/2010

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE 1005, KOMPLEKS SELANGOR JALAN SULTAN 10TH FLOOR,, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

A21-3A, BLOK A,JLN TKS 1, TAMAN KAJANG SENTRAL, 43000 KAJANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-87345488

FAX.NO.

:

03-87349588

CONTACT PERSON

:

MELWIN MATHEWS ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

51211

PRINCIPAL ACTIVITY

:

TRADING IN COMMODITIES

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARES 1,000,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 20,990,676 [2011]

NET WORTH

:

MYR 1,008,191 [2011]

 

 

 

STAFF STRENGTH

:

2 [2012]

BANKER (S)

:

HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) trading in commodities.

 

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

(%)

MELWIN MATHEWS +

MALAYA RAINBOW CASTLE, JAWAHARKANEHRU ERNAKULAN KERALA

H7837225

250,000.00

25.00

MATHEW THAZHATHUKUNNEL THOMAS +

MALAYA RAINBOW CASTLE POO, PALARIVATTOM PO ERNAKULAM KERALA, 682025

H5194398

249,999.00

25.00

MEGHA MATHEWS +

MALAYA RAINBOW CASTLE, JAWAHARLANEHRU ERNAKULAN KERALA

H8245006

249,999.00

25.00

LIYA MATHEW

 

H6937919

125,000.00

12.50

LAWRENCE ERIC NETTO A/L A A NETTO +

5 JALAN DUA NO 5, JALAN DUA JALAN BUKIT, 43000 KAJANG, SELANGOR, MALAYSIA.

500107-01-5327

1.00

0.00

MR. ALFRED NETTO +

5, JALAN DUA NO 5, JALAN DUA JALAN BUKIT, 43000 KAJANG, SELANGOR, MALAYSIA.

881003-05-5537

1.00

0.00

MALAYA TRADE IMPEX PVT. LTD.

 

 

125,000.00

12.50

 

 

 

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

------

 

 

 

1,000,000.00

100.00

 

 

 

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

=====

 

+ Also Director

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. ALFRED NETTO

Address

:

5, JALAN DUA NO 5, JALAN DUA JALAN BUKIT, 43000 KAJANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

881003-05-5537

Date of Birth

:

03/10/1988

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

28/02/2011

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

LAWRENCE ERIC NETTO A/L A A NETTO

Address

:

5 JALAN DUA NO 5, JALAN DUA JALAN BUKIT, 43000 KAJANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

500107-01-5327

Date of Birth

:

07/01/1950

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

26/03/2010

 

DIRECTOR 3

 

Name Of Subject

:

MATHEW THAZHATHUKUNNEL THOMAS

Address

:

MALAYA RAINBOW CASTLE POO, PALARIVATTOM PO ERNAKULAM KERALA, 682025

IC / PP No

:

H5194398

Date of Appointment

:

26/03/2010

 

DIRECTOR 4

 

Name Of Subject

:

MEGHA MATHEWS

Address

:

MALAYA RAINBOW CASTLE, JAWAHARLANEHRU ERNAKULAN KERALA

IC / PP No

:

H8245006

Date of Appointment

:

27/12/2011

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MELWIN MATHEWS

Address

:

MALAYA RAINBOW CASTLE, JAWAHARKANEHRU ERNAKULAN KERALA

IC / PP No

:

H7837225

 

 

 

Date of Appointment

:

27/12/2011



MANAGEMENT

 

 

 

1)

Name of Subject

:

MELWIN MATHEWS

 

Position

:

DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

C C POH &CO

Auditor' Address

:

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

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

LUAH HEAN KEE @ KOAY HEAN KEE

 

IC / PP No

:

4092141

 

New IC No

:

501224-07-5171

 

Address

:

45 JALAN SS 24/1, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

 

ENCUMBRANCE (S)


ENCUMBRANCE 1

Date of Creation

:

26/01/2011

Description Of Charge

:

N/A

 

Amount Secured

:

OPEN CHARGE

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 001 In The Register of Charges

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank. 

No winding up petition was found in our databank. 

DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. 

No blacklisted record & debt collection case was found in our defaulters' databank. 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A


The SC refused to disclose its suppliers. 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

INDIA, MIDDLE EAST

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

RUBBER

 

 

 

 

Competitor(s)

:

B.C SEKHAR RESEARCH CENTRE SDN BHD
FILATI LASTEX SDN BHD
GENTING PLANTATIONS BHD
JOHOR FRANCHISE DEVELOPMENT SDN BHD
SUNGEI ARA HOLDINGS SDN BHD

 

 

 

 

 

 

 

 

 

Total Number of Employees:

YEAR

2012

 

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

2

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) trading in commodities.

The SC dealing with rubber.

The SC however refused to reveal 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

:

03-87345488

Match

:

N/A

 

 

 

Address Provided by Client

:

SENTRAL BUSINESS PARK NO. AZI-3A JALAN TKSI TAMAN KAJANG SENTRAL 43000 KALANG SEFANGOR

Current Address

:

A21-3A, BLOK A,JLN TKS 1, TAMAN KAJANG SENTRAL, 43000 KAJANG, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided is incorrect.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

66.52%

]

 

Profit/(Loss) Before Tax

:

Decreased

[

<189.73%>

]

 

Return on Shareholder Funds

:

Acceptable

[

16.98%

]

 

Return on Net Assets

:

Acceptable

[

18.27%

]

 

 

 

 

 

 

 

 

The increase in turnover could be due to the SC adopting an aggressive marketing strategy.The management had succeeded in turning the SC into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Acceptable

[

1.21 Times

]

 

 

 

 

 

 

 

 

The SC has an adequate liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

4.63 Times

]

 

 

 

 

 

 

 

 

The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The higher turnover had helped to reduce the SC's losses. 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's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the SC : FAIR

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 


INDUSTRY ANALYSIS

 

MSIC CODE

51211 : Wholesale of rubber

 

 

INDUSTRY :

MANUFACTURING

 

 

 


The manufacturing sector is expected to be driven by higher value-added activities in Malaysia.The GDP growth for first quarter 2012 indicating manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia recorded a 12% jump in approved investments in the manufacturing sector in the first quarter of 2012 compared with the corresponding period 2011. According to Federation of Malaysian Manufacturers (FMM), manufacturing sector expected to improve in the third quarter 2012 despite concerns over external developments and the rising cost of production.


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. Malaysia rubber exports are forecast to grow at 10%, at the end of 2012 driven by global demand for medical gloves as well as rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber shipments in Malaysia due to hospitals and clinics place more intrest on rising health and hygiene awareness.


The Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.


Chemical production are expected to show 6.2% in year 2012 and 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.


According to Malaysian Iron and Steel Industry Federation, first half of 2012 would remain weak for the local steel industry due to eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries. At first quarter 2012, the average local steel price is trading atRM2,300 per tonne compared with the average international price of US$740 (RM2,331) per tonne.


According to the Department of Statistics, Malaysia during the first quarter 2012, the manufacturing output increased due to activities in major sub-sectors such as petroleum, chemical, rubber and plastic products (10.5 %), and non-metallic mineral products, basic metal and fabricated metal products (3.9 %). Meanwhile, it's also announced that the manufacturing sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared with RM47.7 billion in May 2011. The Industrial Production Index (IPI ) increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %). 


Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such as solar and medial services can 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 trading in commodities. 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. With an adequate share capital of MYR 1,000,000, the SC has the potential of expanding its business in future.


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 2 employees. Overall, we regard that the SC's management capability is average. 


We noted that both the turnover and profits have increased compared to the previous year. 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 managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. However, the SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. 


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


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. Nonetheless, the SC should adopt better competitive strategies in order to sustain its business position and to compete with other well established players in the same industry.


In view of the above, we recommend credit be granted to the SC with close monitoring.

 

PROFIT AND LOSS ACCOUNT

 

 

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

MALBEN POLYMER SDN BHD

 

Financial Year End

31/12/2011

31/12/2010

Months

12

9

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

SUMMARY

SUMMARY

Currency

MYR

MYR

 

 

 

TURNOVER

20,990,676

12,605,217

 

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

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

Total Turnover

20,990,676

12,605,217

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

184,869

<206,030>

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

184,869

<206,030>

Taxation

<13,672>

0

 

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

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

PROFIT/(LOSS) AFTER TAXATION

171,197

<206,030>

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

<206,030>

0

 

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

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

As restated

<206,030>

-

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<34,833>

<206,030>

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<34,833>

<206,030>

 

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

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

 

 

 

BALANCE SHEET

 

 

MALBEN POLYMER SDN BHD

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

54,375

64,303

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

54,375

64,303

 

 

 

CURRENT ASSETS

 

 

TOTAL CURRENT ASSETS

5,621,163

877,675

 

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

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

TOTAL ASSET

5,675,538

941,978

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

TOTAL CURRENT LIABILITIES

4,663,597

104,984

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

957,566

772,691

 

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

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

TOTAL NET ASSETS

1,011,941

836,994

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

1,000,000

1,000,000

 

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

 

 

 

RESERVES

 

 

Retained profit/(loss) carried forward

<34,833>

<206,030>

Others

43,024

43,024

 

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

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

TOTAL RESERVES

8,191

<163,006>

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,008,191

836,994

 

 

 

LONG TERM LIABILITIES

 

 

TOTAL LONG TERM LIABILITIES

3,750

-

 

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

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

 

1,011,941

836,994

 

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

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

 

 

 

 

FINANCIAL RATIO

 

 

MALBEN POLYMER SDN BHD

 

TYPES OF FUNDS

 

 

Net Liquid Assets

957,566

772,691

Net Current Assets/(Liabilities)

957,566

772,691

Net Tangible Assets

1,011,941

836,994

Net Monetary Assets

953,816

772,691

 

 

 

BALANCE SHEET ITEMS

 

 

Total Liabilities

4,667,347

104,984

Total Assets

5,675,538

941,978

Net Assets

1,011,941

836,994

Net Assets Backing

1,008,191

836,994

Shareholders' Funds

1,008,191

836,994

Total Share Capital

1,000,000

1,000,000

Total Reserves

8,191

<163,006>

 

 

 

LIQUIDITY (Times)

 

 

Current Ratio

1.21

8.36

 

 

 

SOLVENCY RATIOS (Times)

 

 

Liabilities Ratio

4.63

0.13

Assets Backing Ratio

1.01

0.84

 

 

 

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

0.88

<1.63>

Net Profit Margin

0.82

<1.63>

Return On Net Assets

18.27

<24.62>

Return On Capital Employed

18.27

<24.62>

Return On Shareholders' Funds/Equity

16.98

<24.62>

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.34

UK Pound

1

Rs.87.91

Euro

1

Rs.70.57

 

 

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.