MIRA INFORM REPORT

 

 

Report Date :

21.09.2012

 

IDENTIFICATION DETAILS

 

Name :

MDF TRADING (M) SDN BHD

 

 

 

 

Formerly Known As :

VISUAL NIRWANA SDN BHD (01/03/2010)

 

 

 

 

Registered Office :

22-1a, Jalan 2 Batu Caves Centre Point, 68100 Batu Caves, Selangor

 

 

 

 

Country :

Malaysia

 

 

 

 

Financials (as on) :

30.06.2010

 

 

 

 

Date of Incorporation :

25.07.2006

 

 

 

 

Com. Reg. No.:

742057-M

 

 

 

 

Legal Form :

Private Limited

 

 

 

 

Line of Business :

Trading of Food Products

 

 

 

 

No. of Employees :

10

 

 

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 :

Slow

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

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.

:

742057-M

COMPANY NAME

:

MDF TRADING (M) SDN BHD

FORMER NAME

:

VISUAL NIRWANA SDN BHD (01/03/2010)

INCORPORATION DATE

:

25/07/2006

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

22-1A, JALAN 2 BATU CAVES CENTRE POINT, 68100 BATU CAVES, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

51, JALAN TS 6/2, TAMAN INDUSTRI, 47510 SUBANG JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-56366369

FAX.NO.

:

03-56364202

CONTACT PERSON

:

AZIZ KHAN ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

522

PRINCIPAL ACTIVITY

:

TRADING OF FOOD PRODUCTS

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 2 CASH AND 999,998 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 31,255 [2010]

NET WORTH

:

MYR 463,689 [2010]

 

 

 

STAFF STRENGTH

:

10 [2012]

BANKER (S)

:

MALAYAN BANKING 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 of food products.

 

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

(%)

MR. AZIZ KHAN BIN MEERDAD +

22, JALAN 5/1A, TAMAN SERI RAYA, TASEK TAMBAHAN, 68000 AMPANG, SELANGOR, MALAYSIA.

590723-10-6013 5729816

550,000.00

55.00

EMAN SHAH NIAT SHAH +

12A, JALAN 3A/8, USJ 3A, 48600 PETALING JAYA, SELANGOR, MALAYSIA.

KG817358

350,000.00

35.00

MS. SATHIAVANI A/P RAJAGOPAL +

8, JALAN PJS 3/32, TAMAN SRI MANJA, JALAN KLANG LAMA, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

690802-10-6052 A1364142

100,000.00

10.00

 

 

 

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

------

 

 

 

1,000,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. SATHIAVANI A/P RAJAGOPAL

Address

:

8, JALAN PJS 3/32, TAMAN SRI MANJA, JALAN KLANG LAMA, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A1364142

New IC No

:

690802-10-6052

Date of Birth

:

02/08/1969

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

31/05/2010

 

DIRECTOR 2

 

Name Of Subject

:

EMAN SHAH NIAT SHAH

Address

:

12A, JALAN 3A/8, USJ 3A, 48600 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

KG817358

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

18/01/2007

 

DIRECTOR 3

 

Name Of Subject

:

MR. AZIZ KHAN BIN MEERDAD

Address

:

22, JALAN 5/1A, TAMAN SERI RAYA, TASEK TAMBAHAN, 68000 AMPANG, SELANGOR, MALAYSIA.

IC / PP No

:

5729816

New IC No

:

590723-10-6013

Date of Birth

:

23/07/1959

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

06/10/2010



MANAGEMENT

 

 

 

1)

Name of Subject

:

AZIZ KHAN

 

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

AZMAN AHMAD & CO

Auditor' Address

:

03-17B, KOMPLEKS PKNS, 3RD FLOOR, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. FITRU AZHANI NUBLI BIN MUHAMMAD

 

IC / PP No

:

A3486667

 

New IC No

:

760925-11-5259

 

Address

:

38, JALAN PUTERI HEIGHTS 16, PUTERI HEIGHTS, 43020 RAWANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. IRDIANI BINTI MOHAMED SAFAR

 

IC / PP No

:

A3689692

 

New IC No

:

771125-14-5744

 

Address

:

392-39 KAMPUNG TENGAH 7, GOMBAK, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

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

 

ENCUMBRANCE (S)


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

LEGAL CHECK AGAINST SC


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

No legal action was found in our databank. 

No winding up petition was found in our databank. 

DEFAULTER CHECK AGAINST SC


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

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

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A

 

 

 


The SC refused to disclose its suppliers. 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Goods Traded

:

FOOD PRODUCTS

 

 

 

 

Competitor(s)

:

ABDUL RAHMAN PANDAK ISMAIL SDN BHD
AURIC PACIFIC (M) SDN BHD
GOLDEN DONUTS SDN BHD
O' GOURMET SDN BHD
YEON TAK COLDSTORAGE SDN BHD

 

 

 

 

 

 

 

 

 

Total Number of Employees:

YEAR

2012

 

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

10

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


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

The SC sells dry fruits 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

:

03-56366369

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 51 JALAN TS 6/2 TAMAN INDUSTRI SUBANG 47510 SUBANG JAYA SELANGOR

Current Address

:

51, JALAN TS 6/2, TAMAN INDUSTRI, 47510 SUBANG JAYA, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Return on Shareholder Funds

:

Unfavourable

[

<6.07%>

]

 

Return on Net Assets

:

Unfavourable

[

<6.07%>

]

 

 

 

 

 

 

 

 

The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Favourable

[

76.83 Times

]

 

 

 

 

 

 

 

 

The SC was in good 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

:

Favourable

[

0.01 Times

]

 

 

 

 

 

 

 

 

A low liabilities ratio has minimised the SC's financial risk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

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 has high financial risks. If its shareholders do not inject more capital into the company or if its business performance does not improve, its going concern may be in question.

 

 

 

 

 

 

 

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

522 : Retail Sale of Food, Beverages and Tobacco In Specialized Stores

 

 

INDUSTRY :

TRADING

 

 

 


The wholesale and retail trade sector grew 7.1% in the first half of the year 2011 supported by strong consumer spending amid favourable labour market conditions and sustained disposable income. This was reflected in the higher distributive trade index which increased 15.9%, with wholesale and retail trade indices increasing 19.2% and 7.8%, respectively. 


It is anticipated that the retail industry will grow 6.0 per cent in the year 2012.


Malaysia's retail sector for 2011 is expected to grow 6 per cent or RM81.59 billion worth of retail sales, similar to the year 2010, due to concerns of high oil prices, declining purchasing power and high cost of doing business. The Middle East and North Africa civil wars have caused the world oil prices to climb. This has led to further rise in the cost of running retail businesses, especially in terms of transportation cost. Many retailers have no choice but to pass the increased cost to end consumers. At the same time, natural disasters (tsunamis, floods, droughts, snow storms, tornadoes and earthquakes) that occurred in all parts of the world has also led to a shortage in the supply of food and raw materials. The phenomenon has pushed retail prices up.In addition, the continual removal of government subsidies since 2010 has pushed inflation upwards. Consequently, rising prices of retail goods contributed to an expectation of moderate performance.


During the first seven months of 2011, other consumption indicators such as imports of consumption goods and credit card spending increased 12.8% and 11.8%, respectively. Sales of motor vehicles declined 3% on account of supply chain disruptions following devastating March 2011 earthquake and tsunami in Japan.


Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.


Meanwhile, the Government has introduced the Retail Shop Transformation (TUKAR) programme. Under this programme, selected large format retailers will assist small retailers to improve their premises and layout which include attractive product display shelves, enhanced lighting and point-of-sales system to manage product inventory,

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 2006, the SC is a Private Limited company, focusing on trading of food products. Having been in business for 6 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a small company, the SC's business operation is supported by 10 employees. Overall, we regard that the SC's management capability is average.


In year 2010, the SC has recorded a turnover of MYR 31,255 and it has suffered pre-tax losses of MYR 28,141. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Fortunately, 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. A low liabilities ratio has minimised the SC's financial risk. Given a positive net worth standing at MYR 463,689, the SC should be able to maintain its business in the near terms.


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. The SC however faces moderate business risk as it has to compete with many well established players in the same field.


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

 


PROFIT AND LOSS ACCOUNT

 

 

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

MDF TRADING (M) SDN BHD

 

Financial Year End

30/06/2010

Months

12

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

SUMMARY

Currency

MYR

 

 

TURNOVER

31,255

 

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

Total Turnover

31,255

 

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

 

 

PROFIT/(LOSS) FROM OPERATIONS

<28,141>

 

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

PROFIT/(LOSS) BEFORE TAXATION

<28,141>

Taxation

0

 

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

PROFIT/(LOSS) AFTER TAXATION

<28,141>

 

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

As previously reported

<8,170>

 

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

As restated

<8,170>

 

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<36,311>

 

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<36,311>

 

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

 

 

 

 

 

BALANCE SHEET

 

 

MDF TRADING (M) SDN BHD

 

ASSETS EMPLOYED:

 

FIXED ASSETS

0

 

 

CURRENT ASSETS

 

TOTAL CURRENT ASSETS

469,804

 

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

TOTAL ASSET

469,804

 

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

 

 

CURRENT LIABILITIES

 

TOTAL CURRENT LIABILITIES

6,115

 

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

NET CURRENT ASSETS/(LIABILITIES)

463,689

 

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

TOTAL NET ASSETS

463,689

 

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

 

 

SHARE CAPITAL

 

Ordinary share capital

500,000

 

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

TOTAL SHARE CAPITAL

500,000

 

 

RESERVES

 

Retained profit/(loss) carried forward

<36,311>

 

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

TOTAL RESERVES

<36,311>

 

 

 

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

SHAREHOLDERS' FUNDS/EQUITY

463,689

 

 

 

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

 

463,689

 

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

 

 

 

 

 

FINANCIAL RATIO

 

 

MDF TRADING (M) SDN BHD

 

TYPES OF FUNDS

 

Net Liquid Assets

463,689

Net Current Assets/(Liabilities)

463,689

Net Tangible Assets

463,689

Net Monetary Assets

463,689

 

 

BALANCE SHEET ITEMS

 

Total Liabilities

6,115

Total Assets

469,804

Net Assets

463,689

Net Assets Backing

463,689

Shareholders' Funds

463,689

Total Share Capital

500,000

Total Reserves

<36,311>

 

 

LIQUIDITY (Times)

 

Current Ratio

76.83

 

 

SOLVENCY RATIOS (Times)

 

Liabilities Ratio

0.01

Assets Backing Ratio

0.46

 

 

PERFORMANCE RATIO (%)

 

Operating Profit Margin

<90.04>

Net Profit Margin

<90.04>

Return On Net Assets

<6.07>

Return On Capital Employed

<6.07>

Return On Shareholders' Funds/Equity

<6.07>

 

 

 

 

 

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%)

 

MIRA INFORM REPORT

 

 

Report Date :

21.09.2012

 

IDENTIFICATION DETAILS

 

Name :

MDF TRADING (M) SDN BHD

 

 

 

 

Formerly Known As :

VISUAL NIRWANA SDN BHD (01/03/2010)

 

 

 

 

Registered Office :

22-1a, Jalan 2 Batu Caves Centre Point, 68100 Batu Caves, Selangor

 

 

 

 

Country :

Malaysia

 

 

 

 

Financials (as on) :

30.06.2010

 

 

 

 

Date of Incorporation :

25.07.2006

 

 

 

 

Com. Reg. No.:

742057-M

 

 

 

 

Legal Form :

Private Limited

 

 

 

 

Line of Business :

Trading of Food Products

 

 

 

 

No. of Employees :

10

 

 

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 :

Slow

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

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.

:

742057-M

COMPANY NAME

:

MDF TRADING (M) SDN BHD

FORMER NAME

:

VISUAL NIRWANA SDN BHD (01/03/2010)

INCORPORATION DATE

:

25/07/2006

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

22-1A, JALAN 2 BATU CAVES CENTRE POINT, 68100 BATU CAVES, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

51, JALAN TS 6/2, TAMAN INDUSTRI, 47510 SUBANG JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-56366369

FAX.NO.

:

03-56364202

CONTACT PERSON

:

AZIZ KHAN ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

522

PRINCIPAL ACTIVITY

:

TRADING OF FOOD PRODUCTS

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 2 CASH AND 999,998 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 31,255 [2010]

NET WORTH

:

MYR 463,689 [2010]

 

 

 

STAFF STRENGTH

:

10 [2012]

BANKER (S)

:

MALAYAN BANKING 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 of food products.

 

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

(%)

MR. AZIZ KHAN BIN MEERDAD +

22, JALAN 5/1A, TAMAN SERI RAYA, TASEK TAMBAHAN, 68000 AMPANG, SELANGOR, MALAYSIA.

590723-10-6013 5729816

550,000.00

55.00

EMAN SHAH NIAT SHAH +

12A, JALAN 3A/8, USJ 3A, 48600 PETALING JAYA, SELANGOR, MALAYSIA.

KG817358

350,000.00

35.00

MS. SATHIAVANI A/P RAJAGOPAL +

8, JALAN PJS 3/32, TAMAN SRI MANJA, JALAN KLANG LAMA, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

690802-10-6052 A1364142

100,000.00

10.00

 

 

 

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

------

 

 

 

1,000,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. SATHIAVANI A/P RAJAGOPAL

Address

:

8, JALAN PJS 3/32, TAMAN SRI MANJA, JALAN KLANG LAMA, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A1364142

New IC No

:

690802-10-6052

Date of Birth

:

02/08/1969

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

31/05/2010

 

DIRECTOR 2

 

Name Of Subject

:

EMAN SHAH NIAT SHAH

Address

:

12A, JALAN 3A/8, USJ 3A, 48600 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

KG817358

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

18/01/2007

 

DIRECTOR 3

 

Name Of Subject

:

MR. AZIZ KHAN BIN MEERDAD

Address

:

22, JALAN 5/1A, TAMAN SERI RAYA, TASEK TAMBAHAN, 68000 AMPANG, SELANGOR, MALAYSIA.

IC / PP No

:

5729816

New IC No

:

590723-10-6013

Date of Birth

:

23/07/1959

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

06/10/2010



MANAGEMENT

 

 

 

1)

Name of Subject

:

AZIZ KHAN

 

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

AZMAN AHMAD & CO

Auditor' Address

:

03-17B, KOMPLEKS PKNS, 3RD FLOOR, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. FITRU AZHANI NUBLI BIN MUHAMMAD

 

IC / PP No

:

A3486667

 

New IC No

:

760925-11-5259

 

Address

:

38, JALAN PUTERI HEIGHTS 16, PUTERI HEIGHTS, 43020 RAWANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. IRDIANI BINTI MOHAMED SAFAR

 

IC / PP No

:

A3689692

 

New IC No

:

771125-14-5744

 

Address

:

392-39 KAMPUNG TENGAH 7, GOMBAK, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

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

 

ENCUMBRANCE (S)


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

LEGAL CHECK AGAINST SC


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

No legal action was found in our databank. 

No winding up petition was found in our databank. 

DEFAULTER CHECK AGAINST SC


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

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

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A

 

 

 


The SC refused to disclose its suppliers. 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Goods Traded

:

FOOD PRODUCTS

 

 

 

 

Competitor(s)

:

ABDUL RAHMAN PANDAK ISMAIL SDN BHD
AURIC PACIFIC (M) SDN BHD
GOLDEN DONUTS SDN BHD
O' GOURMET SDN BHD
YEON TAK COLDSTORAGE SDN BHD

 

 

 

 

 

 

 

 

 

Total Number of Employees:

YEAR

2012

 

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

10

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


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

The SC sells dry fruits 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

:

03-56366369

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 51 JALAN TS 6/2 TAMAN INDUSTRI SUBANG 47510 SUBANG JAYA SELANGOR

Current Address

:

51, JALAN TS 6/2, TAMAN INDUSTRI, 47510 SUBANG JAYA, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Return on Shareholder Funds

:

Unfavourable

[

<6.07%>

]

 

Return on Net Assets

:

Unfavourable

[

<6.07%>

]

 

 

 

 

 

 

 

 

The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Favourable

[

76.83 Times

]

 

 

 

 

 

 

 

 

The SC was in good 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

:

Favourable

[

0.01 Times

]

 

 

 

 

 

 

 

 

A low liabilities ratio has minimised the SC's financial risk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

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 has high financial risks. If its shareholders do not inject more capital into the company or if its business performance does not improve, its going concern may be in question.

 

 

 

 

 

 

 

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

522 : Retail Sale of Food, Beverages and Tobacco In Specialized Stores

 

 

INDUSTRY :

TRADING

 

 

 


The wholesale and retail trade sector grew 7.1% in the first half of the year 2011 supported by strong consumer spending amid favourable labour market conditions and sustained disposable income. This was reflected in the higher distributive trade index which increased 15.9%, with wholesale and retail trade indices increasing 19.2% and 7.8%, respectively. 


It is anticipated that the retail industry will grow 6.0 per cent in the year 2012.


Malaysia's retail sector for 2011 is expected to grow 6 per cent or RM81.59 billion worth of retail sales, similar to the year 2010, due to concerns of high oil prices, declining purchasing power and high cost of doing business. The Middle East and North Africa civil wars have caused the world oil prices to climb. This has led to further rise in the cost of running retail businesses, especially in terms of transportation cost. Many retailers have no choice but to pass the increased cost to end consumers. At the same time, natural disasters (tsunamis, floods, droughts, snow storms, tornadoes and earthquakes) that occurred in all parts of the world has also led to a shortage in the supply of food and raw materials. The phenomenon has pushed retail prices up.In addition, the continual removal of government subsidies since 2010 has pushed inflation upwards. Consequently, rising prices of retail goods contributed to an expectation of moderate performance.


During the first seven months of 2011, other consumption indicators such as imports of consumption goods and credit card spending increased 12.8% and 11.8%, respectively. Sales of motor vehicles declined 3% on account of supply chain disruptions following devastating March 2011 earthquake and tsunami in Japan.


Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.


Meanwhile, the Government has introduced the Retail Shop Transformation (TUKAR) programme. Under this programme, selected large format retailers will assist small retailers to improve their premises and layout which include attractive product display shelves, enhanced lighting and point-of-sales system to manage product inventory,

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 2006, the SC is a Private Limited company, focusing on trading of food products. Having been in business for 6 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a small company, the SC's business operation is supported by 10 employees. Overall, we regard that the SC's management capability is average.


In year 2010, the SC has recorded a turnover of MYR 31,255 and it has suffered pre-tax losses of MYR 28,141. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Fortunately, 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. A low liabilities ratio has minimised the SC's financial risk. Given a positive net worth standing at MYR 463,689, the SC should be able to maintain its business in the near terms.


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. The SC however faces moderate business risk as it has to compete with many well established players in the same field.


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

 


PROFIT AND LOSS ACCOUNT

 

 

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

MDF TRADING (M) SDN BHD

 

Financial Year End

30/06/2010

Months

12

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

SUMMARY

Currency

MYR

 

 

TURNOVER

31,255

 

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

Total Turnover

31,255

 

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

 

 

PROFIT/(LOSS) FROM OPERATIONS

<28,141>

 

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

PROFIT/(LOSS) BEFORE TAXATION

<28,141>

Taxation

0

 

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

PROFIT/(LOSS) AFTER TAXATION

<28,141>

 

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

As previously reported

<8,170>

 

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

As restated

<8,170>

 

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<36,311>

 

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<36,311>

 

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

 

 

 

 

 

BALANCE SHEET

 

 

MDF TRADING (M) SDN BHD

 

ASSETS EMPLOYED:

 

FIXED ASSETS

0

 

 

CURRENT ASSETS

 

TOTAL CURRENT ASSETS

469,804

 

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

TOTAL ASSET

469,804

 

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

 

 

CURRENT LIABILITIES

 

TOTAL CURRENT LIABILITIES

6,115

 

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

NET CURRENT ASSETS/(LIABILITIES)

463,689

 

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

TOTAL NET ASSETS

463,689

 

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

 

 

SHARE CAPITAL

 

Ordinary share capital

500,000

 

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

TOTAL SHARE CAPITAL

500,000

 

 

RESERVES

 

Retained profit/(loss) carried forward

<36,311>

 

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

TOTAL RESERVES

<36,311>

 

 

 

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

SHAREHOLDERS' FUNDS/EQUITY

463,689

 

 

 

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

 

463,689

 

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

 

 

 

 

 

FINANCIAL RATIO

 

 

MDF TRADING (M) SDN BHD

 

TYPES OF FUNDS

 

Net Liquid Assets

463,689

Net Current Assets/(Liabilities)

463,689

Net Tangible Assets

463,689

Net Monetary Assets

463,689

 

 

BALANCE SHEET ITEMS

 

Total Liabilities

6,115

Total Assets

469,804

Net Assets

463,689

Net Assets Backing

463,689

Shareholders' Funds

463,689

Total Share Capital

500,000

Total Reserves

<36,311>

 

 

LIQUIDITY (Times)

 

Current Ratio

76.83

 

 

SOLVENCY RATIOS (Times)

 

Liabilities Ratio

0.01

Assets Backing Ratio

0.46

 

 

PERFORMANCE RATIO (%)

 

Operating Profit Margin

<90.04>

Net Profit Margin

<90.04>

Return On Net Assets

<6.07>

Return On Capital Employed

<6.07>

Return On Shareholders' Funds/Equity

<6.07>

 

 

 

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%)