MIRA INFORM REPORT

 

 

Report Date :

27.09.2012

 

IDENTIFICATION DETAILS

 

Name :

UNIVERSAL FASHIONS & AGRO PRODUCTS SDN BHD

 

 

Formerly Known As :

UNIVERSAL FASHIONS SDN BHD

 

 

Registered Office :

160-4-5, Kompleks Maluri, Jalan Jejaka, Taman Maluri, 55100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2008

 

 

Date of Incorporation :

08.07.2000

 

 

Com. Reg. No.:

519479-A

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trading of textile and garment

 

 

No. of Employees :

05 [2012]

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

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.

:

519479-A

COMPANY NAME

:

UNIVERSAL FASHIONS & AGRO PRODUCTS SDN BHD

FORMER NAME

:

UNIVERSAL FASHIONS SDN BHD (21/02/2006)

INCORPORATION DATE

:

08/07/2000

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

160-4-5, KOMPLEKS MALURI, JALAN JEJAKA, TAMAN MALURI, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

5GM, JALAN PERDANA 6/8, PANDAN PERDANA, 55300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-92845811

FAX.NO.

:

03-92835811

CONTACT PERSON

:

RAMANSUARI D/O MUNUSAMY ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

51311

PRINCIPAL ACTIVITY

:

TRADING OF TEXTILE AND GARMENT

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

 

 

 

SALES

:

MYR 5,762,273 [2008]

NET WORTH

:

MYR 1,118,143 [2008]

 

 

 

STAFF STRENGTH

:

5 [2012]

BANKER (S)

:

HSBC BANK MALAYSIA BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

HIGH

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

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

The SC is principally engaged in the (as a / as an) trading of textile and garment.

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. MUHAMMED FAHEEM NOOR BIN MOHAMED FAZAL NOOR

 

871009-35-5259

1,500,000.00

30.00

RAMAMURTHY SUNDAR RAMAN +
[OLD PP: F1040967]

B-12-2, JALAN 1/91 B, OFF JALAN PERDANA 3/1, BUKIT PANDAN 2, PANDAN PERDANA, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Z1808172

797,999.00

15.96

MS. RAMASUARI A/P MUNUSAMY

 

630508-08-5866

700,000.00

14.00

SANATH KUMAR SUNDAR RAMAN +

B-12-2 JALAN 1/91B, OFF JALAN PERDANA 3/1, BUKIT PERDANA 2, PANDAN PERDANA, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Z1808174

700,000.00

14.00

MS. VARALAKSHMI A/P SREENIVASAN +

B-12-2 JALAN 1/91B, OFF JALAN PERDANA 3/1, BUKIT PERDANA 2, PANDAN PERDANA, 55300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

850104-08-6162

550,000.00

11.00

MR. BALA SUBRAMANIAM A/L E KANDASAMY

 

400704-10-5197

400,000.00

8.00

MS. JINADEVI KANDASAMY A/P SUBRAMANIAM

 

661107-10-5784

250,000.00

5.00

GOPAL KRISHNAN GAJENDRA

 

E5074297

100,000.00

2.00

MS. SIVAMALAR D/O MURUGASOO

3 JALAN MANGGA, BATU 2 1/4, JALAN IPOH, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

520409-10-5916 8010556

1,000.00

0.02

MS. FAZIAH BTE MOHAMED OMAR

5 JALAN RAMBUTAN, SECTION 4/6A, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

560316-08-6142 5053511

1,000.00

0.02

MR. GOBI KRISHNAN SUBRAMANIAM

 

A4617761

1.00

0.00

 

 

 

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

------

 

 

 

5,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. VARALAKSHMI A/P SREENIVASAN

Address

:

B-12-2 JALAN 1/91B, OFF JALAN PERDANA 3/1, BUKIT PERDANA 2, PANDAN PERDANA, 55300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

850104-08-6162

Date of Birth

:

04/01/1985

 

 

 

Nationality

:

MALAYSIAN INDIAN

Date of Appointment

:

17/10/2011

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

SANATH KUMAR SUNDAR RAMAN

Address

:

B-12-2 JALAN 1/91B, OFF JALAN PERDANA 3/1, BUKIT PERDANA 2, PANDAN PERDANA, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

Z1808174

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

14/04/2008

DIRECTOR 3

Name Of Subject

:

RAMAMURTHY SUNDAR RAMAN

Address

:

B-12-2, JALAN 1/91 B, OFF JALAN PERDANA 3/1, BUKIT PANDAN 2, PANDAN PERDANA, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

Z1808172

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

08/07/2000

Remark

:

OLD PP: F1040967

 

 

MANAGEMENT

 

1)

Name of Subject

:

RAMANSUARI D/O MUNUSAMY

 

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

KIRU & CO

Auditor' Address

:

102C, BANGUNAN YAP, JALAN TUN H.S. LEE, TINGKAT 3, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. KRISHNAN S/O K S 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

 

 

 

 

 

2)

Name

:

MALAYAN BANKING 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

:

18/06/2007

Description Of Charge

:

N/A

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

30/12/2008

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 2 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

28/05/2009

Description Of Charge

:

N/A

 

Amount Secured

:

RM700,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 3 In The Register of Charges

 

ENCUMBRANCE 4

Date of Creation

:

07/04/2011

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,200,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 4 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

07/04/2011

Description Of Charge

:

N/A

 

Amount Secured

:

RM900,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 6

Date of Creation

:

07/04/2011

Description Of Charge

:

N/A

 

Amount Secured

:

RM800,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 6 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

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Percentage

:

0%

 

 

 

 

 

 

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES

 

OPERATIONS

 

Goods Traded

:

TEXTILES & GARMENTS

 

 

 

 

Competitor(s)

:

APCOT (M) SDN BHD
APPAREL WORLD (M) SDN BHD
CNLT (FAR EAST) BHD
KIMA SDN BHD
RETAILWORKS SDN BHD

 

 

 

 

 

 

 

 

 

Total Number of Employees:

 

YEAR

2012

 

 

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

5

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of textile and garment.

The SC sells towerls, curtains and other furnishing materials.

The SC sells the products according to its customers' orders. 

 

 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0392845811

Current Telephone Number

:

03-92845811

Match

:

YES

 

 

 

Address Provided by Client

:

NO. 85A, JALAN 10/91 TAMAN SHAMELIN PERKASA 55100, KUALA LUMPUR

Current Address

:

5GM, JALAN PERDANA 6/8, PANDAN PERDANA, 55300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

NO


We have contacted the SC's Accountant and its Company Secretary for the latest financial accounts. However they have rejected our request in view of the confidentiality of the documents.

 

 

Other Investigations

we contacted one of the staff from the SC and she provided some information on the SC.
The SC had shifted from the address provided.


FINANCIAL ANALYSIS

 

The SC's latest financial accounts are up to 2008 which is out dated in our opinion. Therefore, our comment on the SC financial performance is restricted thereto.

 

 

 

 

 

 

 

Overall financial condition of the SC : N/A

 

 

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

 

51311 : Wholesale of textiles, clothing, house linens, towels and blankets

 

 

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 2000, the SC is a Private Limited company, focusing on trading of textile and garment. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future. However, the SC does not have strong shareholders' backing.


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. Being a small company, the SC's business operation is supported by 5 employees. Overall, we regard that the SC's management capability is average. 


No latest financial accounts were filed with the Registry office during our inspection. Therefore, our comment on the SC's overall financial performance are restricted thereto.


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. However, we are of the opinion that there are a large number of other companies in the same industry. In another word, we believe that the SC faces stiff competitions from other local players.


In view of the above, we only recommend credit be proceeded to the SC with guarantee.



PROFIT AND LOSS ACCOUNT

 

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

UNIVERSAL FASHIONS & AGRO PRODUCTS SDN BHD

 

Financial Year End

31/12/2008

31/12/2007

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

SUMMARY

SUMMARY

Currency

MYR

MYR

 

 

 

TURNOVER

5,762,273

5,056,612

 

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

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

Total Turnover

5,762,273

5,056,612

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

10,855

117,122

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

10,855

117,122

Taxation

<5,044>

<26,262>

 

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

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

PROFIT/(LOSS) AFTER TAXATION

5,811

90,860

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

112,332

21,472

 

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

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

As restated

112,332

21,472

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

118,143

112,332

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

118,143

112,332

 

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

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

 

 

 

 

BALANCE SHEET

 

UNIVERSAL FASHIONS & AGRO PRODUCTS SDN BHD

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

87,389

97,251

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

87,389

97,251

 

 

 

CURRENT ASSETS

 

 

TOTAL CURRENT ASSETS

6,324,273

3,147,129

 

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

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

TOTAL ASSET

6,411,662

3,244,380

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

TOTAL CURRENT LIABILITIES

5,250,699

2,081,788

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,073,574

1,065,341

 

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

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

TOTAL NET ASSETS

1,160,963

1,162,592

 

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

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

 

 

 

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

118,143

112,332

 

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

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

TOTAL RESERVES

118,143

112,332

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,118,143

1,112,332

 

 

 

LONG TERM LIABILITIES

 

 

TOTAL LONG TERM LIABILITIES

42,820

50,260

 

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

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

 

1,160,963

1,162,592

 

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

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

 

 

 

 

FINANCIAL RATIO

 

UNIVERSAL FASHIONS & AGRO PRODUCTS SDN BHD

 

TYPES OF FUNDS

 

 

Net Liquid Assets

1,073,574

1,065,341

Net Current Assets/(Liabilities)

1,073,574

1,065,341

Net Tangible Assets

1,160,963

1,162,592

Net Monetary Assets

1,030,754

1,015,081

 

 

 

BALANCE SHEET ITEMS

 

 

Total Liabilities

5,293,519

2,132,048

Total Assets

6,411,662

3,244,380

Net Assets

1,160,963

1,162,592

Net Assets Backing

1,118,143

1,112,332

Shareholders' Funds

1,118,143

1,112,332

Total Share Capital

1,000,000

1,000,000

Total Reserves

118,143

112,332

 

 

 

LIQUIDITY (Times)

 

 

Current Ratio

1.20

1.51

 

 

 

SOLVENCY RATIOS (Times)

 

 

Liabilities Ratio

4.73

1.92

Assets Backing Ratio

0.23

0.23

 

 

 

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

0.19

2.32

Net Profit Margin

0.10

1.80

Return On Net Assets

0.93

10.07

Return On Capital Employed

0.93

10.07

Return On Shareholders' Funds/Equity

0.52

8.17

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.58

UK Pound

1

Rs.86.60

Euro

1

Rs.68.94

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.