MIRA INFORM REPORT

 

 

Report Date :

24.09.2012

 

 

 

IDENTIFICATION DETAILS

 

Name :

BHAVANI IMPEX SDN BHD

 

 

Formerly Known As :

BAVANI STORES SDN BHD (08/07/2000)

Registered Office :

Rm 101, 102c Bangunan Persatuan Yap Selangor, Jalan Tun H S Lee, 3rd Floor, 50000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

11.05.1987

 

 

Com. Reg. No.:

161423-W

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Importers, Wholesalers and Distributors of General Food Merchandise and Job-Stick

 

 

No. of Employees :

15

 

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 but correct

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

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.

:

161423-W

COMPANY NAME

:

BHAVANI IMPEX SDN BHD

FORMER NAME

:

BAVANI STORES SDN BHD (08/07/2000)

INCORPORATION DATE

:

11/05/1987

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

RM 101, 102C BANGUNAN PERSATUAN YAP SELANGOR, JALAN TUN H S LEE, 3RD FLOOR, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

28, JALAN SBC 8, TAMAN SRI BATU CAVES, 68100 BATU CAVES, SELANGOR, MALAYSIA.

TEL.NO.

:

03-61869205

FAX.NO.

:

03-61869217

CONTACT PERSON

:

RATHINASABAPATHY A/L SACHITHANANTHAM ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

51239

PRINCIPAL ACTIVITY

:

IMPORTERS, WHOLESALERS AND DISTRIBUTORS OF GENERAL FOOD MERCHANDISE AND JOB-STICK

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,600,000.00 DIVIDED INTO 
ORDINARY SHARES 260,002 CASH AND 1,339,998 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 8,124,200 [2011]

NET WORTH

:

MYR 1,630,747 [2011]

 

 

 

STAFF STRENGTH

:

15 [2012]

BANKER (S)

:

HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

HIGH

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) importers, wholesalers and distributors of general food merchandise and job-stick.

 

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

(%)

KALAVATHY RATHINASABAPATHY

4 4 SINGAPORE 1024, SINGAPORE.

2170189J

1,599,999.00

100.00

MR.RATHINASABAPATHY S/O SACHITHANANTHAM +

28, JALAN SBC 8, TAMAN SRI BATU CAVES, 68100 BATU CAVES, SELANGOR, MALAYSIA.

S1062423A

1.00

0.00

 

 

 

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

------

 

 

 

1,600,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

KAILASAM SHANMUGASUNDARAM

Address

:

28, TAMAN SRI, 68100 BATU CAVES, SELANGOR, MALAYSIA.

IC / PP No

:

F7267904

 

 

 

 

 

 

 

 

 

Nationality

:

N/A

Date of Appointment

:

09/05/2002

 

DIRECTOR 2

 

Name Of Subject

:

RATHINASABAPATHY S/O SACHITHANANTHAM

Address

:

28, TAMAN SRI, 68100 BATU CAVES, SELANGOR, MALAYSIA.

IC / PP No

:

E2007850J

 

 

 

 

 

 

 

 

 

Nationality

:

N/A

Date of Appointment

:

11/05/1987

 

DIRECTOR 3

 

Name Of Subject

:

MS. SARATHA A/P K. MUNIAN

Address

:

4, JALAN 2, 40160 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

A3685888

New IC No

:

770911-10-5892

Date of Birth

:

11/09/1977

 

 

 

Nationality

:

MALAYSIAN INDIAN

Date of Appointment

:

08/08/2010



MANAGEMENT

 

 

 

1)

Name of Subject

:

RATHINASABAPATHY A/L SACHITHANANTHAM

 

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

TCMK ASSOCIATED

Auditor' Address

:

102C, BANGUNAN PERSATUAN YAP SELANGOR, JALAN TUN H.S. LEE, 3RD FLOOR, 50050 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. KRISHNAN A/L KS MANIAM

 

IC / PP No

:

8179547

 

New IC No

:

550201-10-6693

 

Address

:

10, JALAN WIRAWATI 7, CHERAS, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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

 

 

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 010 In The Register of Charges



ENCUMBRANCE 2

 

 

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 011 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

:

YES

Overseas

:

YES

Import Countries

:

INDIA



The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

BLACKGRAM, FRIEDGRAM, GRAMDHAL, AND PAPPADUM

 

 

 

Competitor(s)

:

AURIC CHUN YIP SDN BHD
HARPERS TRADING (MALAYSIA) SDN BHD
LUCKY FROZEN SDN BHD
PGEO GROUP SDN BHD
THYE HUAT CHAN SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

15

15

13

13

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) importers, wholesalers and distributors of general food merchandise and job-stick.

The SC mainly sells traditional Indian food products as well as prayers items.

The SC keeps stock of the products.

The SC has its own transport to deliver the products to its customers' destinations. 

 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

+60-3-20700744

Current Telephone Number

:

03-61869205

Match

:

NO

 

 

 

Address Provided by Client

:

NO. 28 JALAN SBC 8, TAMAN SRI BATU CAVES BATU CAVES SELANGORE

Current Address

:

28, JALAN SBC 8, TAMAN SRI BATU CAVES, 68100 BATU CAVES, SELANGOR, 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 is incomplete.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

1.46%

]

 

Return on Net Assets

:

Unfavourable

[

6.63%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC's management have been efficient in controlling its operating costs. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Unfavourable

[

0.62 Times

]

 

 

 

 

 

 

 

 

Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

2.77 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. 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 : POOR

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

 

 

 

 

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

51239 : Wholesale of other foodstuffs e.g mee,kueh teow, wantan skin and related products,cooking oil, tinned food, etc

 

 

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 1987, the SC is a Private Limited company, focusing on importers, wholesalers and distributors of general food merchandise and job-stick. With over 2 decades of experience in the business, the SC has fairly rich experiences in the business and has achieved a certain market share. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.


Investigation revealed that the SC concentrates only on the local market. This narrow market segment has placed the SC at high business risk and limits its business expansion opportunities. Any adverse changes to the local economy might have a negative impact on the SC's business performance. 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. However, the SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Overall, the SC posted a poor financial performance.


The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. 


The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.


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)

BHAVANI IMPEX SDN BHD

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

SUMMARY

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

8,124,200

6,631,226

6,305,801

6,241,540

 

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

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

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

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

Total Turnover

8,124,200

6,631,226

6,305,801

6,241,540

 

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

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

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

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

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

185,643

166,804

55,099

283,574

 

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

185,643

166,804

55,099

283,574

Taxation

<161,890>

<50,000>

<36,880>

<89,697>

 

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

23,753

116,804

18,219

193,877

 

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

6,994

93,107

354,888

161,011

 

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

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

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

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

As restated

6,994

93,107

354,888

161,011

 

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

30,747

209,911

373,107

354,888

CAPITALISATION FOR BONUS ISSUES

-

<202,917>

-

-

DIVIDENDS - Ordinary (paid & proposed)

-

-

<280,000>

-

 

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

30,747

6,994

93,107

354,888

 

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

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

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

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

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Bank overdraft

-

-

40,483

33,590

Hire purchase

-

-

13,420

13,116

Term loan / Borrowing

-

-

93,965

113,952

Trust receipts

-

-

75,436

64,858

Others

-

258,570

-

-

 

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

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

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

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

 

-

258,570

223,304

225,516

 

 

 

BALANCE SHEET

 

 

BHAVANI IMPEX SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

4,076,648

4,058,746

3,761,804

2,814,577

 

 

 

 

 

 

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

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

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

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

TOTAL LONG TERM ASSETS

4,076,648

4,058,746

3,761,804

2,814,577

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

-

142,775

223,119

528,086

Trade debtors

-

196,128

222,869

698,277

Other debtors, deposits & prepayments

-

934,068

447,441

867,285

Amount due from director

-

-

5,238

741,191

Cash & bank balances

-

12,738

613

1,947

Others

-

68,908

-

-

 

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

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

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

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

TOTAL CURRENT ASSETS

2,071,329

1,354,617

899,280

2,836,786

 

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

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

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

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

TOTAL ASSET

6,147,977

5,413,363

4,661,084

5,651,363

 

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

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

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

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

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

-

841,164

435,172

894,402

Other creditors & accruals

-

28,105

9,733

68,720

Hire purchase & lease creditors

-

54,153

71,388

76,712

Bank overdraft

-

562,254

573,420

537,294

Short term borrowings/Term loans

-

92,893

86,344

77,743

Other borrowings

-

922,543

927,802

911,036

Provision for taxation

-

-

37,172

139,392

 

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

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

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

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

TOTAL CURRENT LIABILITIES

3,348,580

2,501,112

2,141,031

2,705,299

 

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<1,277,251>

<1,146,495>

<1,241,751>

131,487

 

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

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

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

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

TOTAL NET ASSETS

2,799,397

2,912,251

2,520,053

2,946,064

 

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

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

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

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

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

1,600,000

1,600,000

1,000,000

1,000,000

 

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

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

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

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

TOTAL SHARE CAPITAL

1,600,000

1,600,000

1,000,000

1,000,000

 

 

 

 

 

RESERVES

 

 

 

 

Retained profit/(loss) carried forward

30,747

6,994

93,107

354,888

 

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

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

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

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

TOTAL RESERVES

30,747

6,994

93,107

354,888

 

 

 

 

 

 

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,630,747

1,606,994

1,093,107

1,354,888

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

-

1,180,370

1,297,835

1,394,313

Hire purchase creditors

-

26,464

80,688

152,076

Deferred taxation

-

98,423

48,423

44,787

 

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,168,650

1,305,257

1,426,946

1,591,176

 

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

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

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

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

 

2,799,397

2,912,251

2,520,053

2,946,064

 

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

BHAVANI IMPEX SDN BHD

 

TYPES OF FUNDS

 

 

 

 

Cash

-

12,738

613

1,947

Net Liquid Funds

-

<549,516>

<572,807>

<535,347>

Net Liquid Assets

<1,277,251>

<1,289,270>

<1,464,870>

<396,599>

Net Current Assets/(Liabilities)

<1,277,251>

<1,146,495>

<1,241,751>

131,487

Net Tangible Assets

2,799,397

2,912,251

2,520,053

2,946,064

Net Monetary Assets

<2,445,901>

<2,594,527>

<2,891,816>

<1,987,775>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

-

2,838,677

3,037,477

3,149,174

Total Liabilities

4,517,230

3,806,369

3,567,977

4,296,475

Total Assets

6,147,977

5,413,363

4,661,084

5,651,363

Net Assets

2,799,397

2,912,251

2,520,053

2,946,064

Net Assets Backing

1,630,747

1,606,994

1,093,107

1,354,888

Shareholders' Funds

1,630,747

1,606,994

1,093,107

1,354,888

Total Share Capital

1,600,000

1,600,000

1,000,000

1,000,000

Total Reserves

30,747

6,994

93,107

354,888

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

-

0.01

0.00

0.00

Liquid Ratio

-

0.48

0.32

0.85

Current Ratio

0.62

0.54

0.42

1.05

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

-

8

13

31

Debtors Ratio

-

11

13

41

Creditors Ratio

-

46

25

52

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

-

1.77

2.78

2.32

Liabilities Ratio

2.77

2.37

3.26

3.17

Times Interest Earned Ratio

-

1.65

1.25

2.26

Assets Backing Ratio

1.75

1.82

1.58

1.84

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

2.29

2.52

0.87

4.54

Net Profit Margin

0.29

1.76

0.29

3.11

Return On Net Assets

6.63

14.61

11.05

17.28

Return On Capital Employed

6.63

12.05

8.80

14.30

Return On Shareholders' Funds/Equity

1.46

7.27

1.67

14.31

Dividend Pay Out Ratio (Times)

-

0.00

15.37

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

-

0

0

0

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.90

UK Pound

1

Rs.87.60

Euro

1

Rs.70.01

 

 

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.