MIRA INFORM REPORT

 

 

Report Date :

20.04.2013

 

IDENTIFICATION DETAILS

 

Name :

SUGNOMAL SDN. BHD.

 

 

Registered Office :

29 Jalan, Tuanku Abdul Rahman, 50100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.10.2011

 

 

Date of Incorporation :

27.08.1993

 

      

Com. Reg. No.:

275098-U

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

LINE OF BUSINESS :

TRADING OF TEXTILES

 

 

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 :

No Complaints

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

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

275098-U

COMPANY NAME

:

SUGNOMAL SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

27/08/1993

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

29 JALAN TUANKU ABDUL RAHMAN, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

29 JLN TUANKU ABDUL RAHMAN, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-26935039

FAX.NO.

:

03-26930286

CONTACT PERSON

:

JAIKISHIN SUGNOMAL ASWANI ( DIRECTOR )

INDUSTRY CODE

:

46411

PRINCIPAL ACTIVITY

:

TRADING OF TEXTILES

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 4,700,000.00 DIVIDED INTO
ORDINARY SHARES 500,000 CASH AND 4,200,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 13,794,159 [2011]

NET WORTH

:

MYR 4,802,284 [2011]

STAFF STRENGTH

:

10 [2013]

BANKER (S)

:

AFFIN BANK BERHAD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

MYR 87,000 (USD 28,000)

 

 

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 textiles.

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. JAIKISHIN SUGNOMAL ASWANI +

29 JLN TUANKU ABDUL RAHMAN, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

470214-75-5027

4,699,999.00

100.00

SAMEER JAIKISHIN ASWANI +

29 JALAN TUANKU ABDUL RAHMAN, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

7534837A

1.00

0.00

 

 

 

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

------

 

 

 

4,700,000.00

100.00

 

 

 

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

=====

 

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

SAMEER JAIKISHIN ASWANI

Address

:

29 JALAN TUANKU ABDUL RAHMAN, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

7534837A

Date of Appointment

:

18/09/2006

 

DIRECTOR 2

 

Name Of Subject

:

MR. JAIKISHIN SUGNOMAL ASWANI

Address

:

29 JLN TUANKU ABDUL RAHMAN, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

470214-75-5027

Date of Birth

:

14/02/1947

Nationality

:

MALAYSIAN

Date of Appointment

:

27/08/1993



MANAGEMENT

 

 

 

1)

Name of Subject

:

JAIKISHIN SUGNOMAL ASWANI

 

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

SJ GRANT THORNTON

Auditor' Address

:

SHERATON IMPERIAL COURT, JALAN SULTAN ISMAIL, P O BOX 12337, LEVEL 11, 50774 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LING SIEW CHIN

 

New IC No

:

560206-10-5816

 

Address

:

7-3, JALAN CECAWI 6/19B, SECTION 6, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

AFFIN BANK BERHAD

 

 

 

 

 

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

 

 

ENCUMBRANCE (S)


ENCUMBRANCE 1

Date of Creation

:

19/08/1999

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BHD

 

Form 40 Dated

Registered and Numbered 1 In The Register of Charges


ENCUMBRANCE 2

Date of Creation

:

22/02/2012

Description Of Charge

:

N/A

 

Amount Secured

:

MYR950,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

CIMB BANK BERHAD

 

Form 40 Dated 06/03/2012

Registered and Numbered 4 In The Register of Charges


ENCUMBRANCE 3

Date of Creation

:

22/02/2012

Description Of Charge

:

N/A

 

Amount Secured

:

MYR950,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

CIMB BANK BERHAD

 

Form 40 Dated 06/03/2012

Registered and Numbered 5 In The Register of Charges


ENCUMBRANCE 4

Date of Creation

:

06/09/2002

Description Of Charge

:

N/A

 

Amount Secured

:

RM2,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

BUMIPUTRA-COMMERCE BANK BHD

 

Form 40 Dated

Registered and Numbered 2 In The Register of Charges


ENCUMBRANCE 5

Date of Creation

:

02/03/2005

Description Of Charge

:

N/A

 

Amount Secured

:

RM500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

BUMIPUTRA-COMMERCE BANK BHD

 

Form 40 Dated

Registered and Numbered 3 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


Majority of the SC's fabrics are sourced from overseas suppliers including from Japan, China, India, Taiwan and others. Besides this, the SC also sources from local suppliers.

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES

 

 

OPERATIONS

 

Goods Traded

:

FABRICS & TEXTILES

 

 

 

 

 

Total Number of Employees:

YEAR

2013

 

GROUP

N/A

 

COMPANY

10

 

 

Branch

:

NO

 

 

Other Information:


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

The SC is engaged in the trading of fabrics and textiles.

The SC sells variety of fabrics from various countries.

The SC also shows samples of the textiles traded for customers' view.

The SC sells fabrics such as cotton, linen 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

:

0326935039

Current Telephone Number

:

03-26935039

Match

:

YES

 

 

 

Address Provided by Client

:

29D JLN TUANKU ABDUL RAHMAN,50100,KUALA LUMPUR,WILAYAH PERSEKUTUAN.

Current Address

:

29 JLN TUANKU ABDUL RAHMAN, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 15th April 2013 we contacted one of the staff from the SC and she provided some information on the SC.

The SC has shifted from the address provided.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

3.50%

]

 

Return on Net Assets

:

Unfavourable

[

3.81%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Acceptable

[

1.12 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

1.76 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC'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 : LIMITED

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

<0.5>

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

<2.7>

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

<17.2>

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

<1.2>

Investment ( % )

8.0

2.8

<0.3>

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

<28,450>

<40,482>

<45,511>

<42,297>

<39,993>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<5.6>

<5.4>

<4.5>

<4.0>

Inflation ( % Change in Composite CPI)

<5.2>

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

<0.1>

6.2

3.0

<0.0>

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

<34.5>

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

<1.1>

<3.4>

10.8

<2.8>

-

Rubber

<19.8>

9.9

6.1

<0.6>

-

Forestry & Logging

<5.9>

<3.3>

<7.6>

<2.2>

-

Fishing

5.5

5.6

2.1

<0.7>

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

<3.8>

0.2

<5.7>

1.5

2.7

Oil & Gas

2.1

0.5

<1.7>

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

<9.4>

11.4

4.7

4.2

4.9

Exported-oriented Industries

<19.0>

12.1

2.8

4.1

-

Electrical & Electronics

<30.3>

28.4

<4.9>

1.6

-

Rubber Products

<10.1>

25.3

15.4

3.6

-

Wood Products

<24.1>

20.1

<4.9>

4.6

-

Textiles & Apparel

<19.5>

<0.4>

14.8

<7.1>

-

Domestic-oriented Industries

<9.8>

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

<7.7>

16.2

5.5

9.9

-

Plastic Products

<9.1>

2.4

3.8

-

-

Iron & Steel

<32.7>

29.3

2.4

-

-

Fabricated Metal Products

<2.5>

14.9

25.2

-

-

Non-metallic Mineral

<15.5>

20.2

27.1

6.6

-

Transport Equipment

<13.5>

36.5

<10.4>

13.7

-

Paper & Paper Products

<5.0>

18.7

14.8

<7.8>

-

Crude Oil Refineries

0.2

<11.4>

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

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

46411 : Wholesale of yarn and fabrics

 

 

INDUSTRY :

TRADING


According to the Retail Group Malaysia (RGM), the wholesale and retail trade sector forecast to grow to 6% in year 2013. During the first quarter of year 2013, RGM is estimating the retail industry to grow 6.9%. Many retailers have been enjoying better sales since the government handed out cash from mid-January of 2013 under the second round of Bantuan Rakyat 1Malaysia to more than 12 million Malaysians. Bookstores and related retail stores have also started enjoying rising sales since the RM250 1Malaysia Book Voucher was distributed to 1.3 million private and public university students. Besides, since early February 2013, handphone traders and retailers selling smartphone accessories have started to benefit from the RM200 rebate on smartphones for 1.5 million young adults aged between 21 and 30 years with a monthly income of not more than RM3,000.


The wholesale and retail trade sector grew 6.1% in the first half of the year 2012 driven by strong domestic consumption and the increasing number of large format stores operating in Malaysia, including 180 foreign hypermarkets, superstores and departmental stores as at end of August 2012. In addition, other indicators such as imports of consumption goods were higher by 15.2%.


In 2012, the wholesale and retail trade sector growth to 5.5% driven by higher consumption which benefited from Government initiatives under the 2012 Budget such as BR1M, Baucar Buku 1Malaysia (BB1M) and the RM100 assistance for all primary and secondary school students. The performance of the sector will also be supported by ongoing efforts to modernise the retail segment under the ETP. In 2012, 500 retail shops and 50 workshops are targeted to be modernised under the Retail Shop Transformation (TUKAR) and Automotive Workshop Modernisation (ATOM) programmes, respectively. As at end of July 2012, 95 workshops have been modernised, surpassing the yearly target, while 393 retail shops have been modernised.


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.


Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption, therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1993, the SC is a Private Limited company, focusing on trading of textiles. 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.


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 10 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


Financially, the SC registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 4,802,284, the SC should be able to maintain its business in the near terms.


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


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)

SUGNOMAL SDN. BHD.

 

Financial Year End

31/10/2011

31/10/2010

31/10/2009

31/10/2008

31/10/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

SUMMARY

SUMMARY

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

13,794,159

9,691,085

10,860,155

11,230,215

12,835,641

 

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

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

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

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

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

Total Turnover

13,794,159

9,691,085

10,860,155

11,230,215

12,835,641

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

234,408

275,659

207,814

165,149

305,165

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

234,408

275,659

207,814

165,149

305,165

Taxation

<66,181>

<107,603>

<76,190>

<87,126>

<22,159>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

168,227

168,056

131,624

78,023

283,006

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

<65,943>

<233,999>

<365,623>

<443,646>

<726,652>

 

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

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

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

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

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

As restated

<65,943>

<233,999>

<365,623>

<443,646>

<726,652>

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

102,284

<65,943>

<233,999>

<365,623>

<443,646>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

102,284

<65,943>

<233,999>

<365,623>

<443,646>

 

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

SUGNOMAL SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

5,298,480

5,321,943

5,179,118

5,215,023

5,230,129

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

-

-

0

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

5,298,480

5,321,943

5,179,118

5,215,023

5,230,129

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

TOTAL CURRENT ASSETS

7,969,468

7,013,493

7,782,144

8,058,227

8,473,545

 

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

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

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

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

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

TOTAL ASSET

13,267,948

12,335,436

12,961,262

13,273,250

13,703,674

 

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

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

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

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

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

CURRENT LIABILITIES

 

 

 

 

 

TOTAL CURRENT LIABILITIES

7,121,815

5,478,535

6,399,698

7,641,067

7,545,883

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

847,653

1,534,958

1,382,446

417,160

927,662

 

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

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

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

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

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

TOTAL NET ASSETS

6,146,133

6,856,901

6,561,564

5,632,183

6,157,791

 

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

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

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

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

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

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

4,700,000

4,700,000

4,700,000

4,700,000

4,700,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

4,700,000

4,700,000

4,700,000

4,700,000

4,700,000

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

102,284

<65,943>

<233,999>

<365,623>

<443,646>

 

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

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

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

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

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

TOTAL RESERVES

102,284

<65,943>

<233,999>

<365,623>

<443,646>

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

4,802,284

4,634,057

4,466,001

4,334,377

4,256,354

LONG TERM LIABILITIES

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,343,849

2,222,844

2,095,563

1,297,806

1,901,437

 

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

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

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

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

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

 

6,146,133

6,856,901

6,561,564

5,632,183

6,157,791

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

SUGNOMAL SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Net Liquid Assets

847,653

1,534,958

1,382,446

417,160

927,662

Net Current Assets/(Liabilities)

847,653

1,534,958

1,382,446

417,160

927,662

Net Tangible Assets

6,146,133

6,856,901

6,561,564

5,632,183

6,157,791

Net Monetary Assets

<496,196>

<687,886>

<713,117>

<880,646>

<973,775>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Liabilities

8,465,664

7,701,379

8,495,261

8,938,873

9,447,320

Total Assets

13,267,948

12,335,436

12,961,262

13,273,250

13,703,674

Net Assets

6,146,133

6,856,901

6,561,564

5,632,183

6,157,791

Net Assets Backing

4,802,284

4,634,057

4,466,001

4,334,377

4,256,354

Shareholders' Funds

4,802,284

4,634,057

4,466,001

4,334,377

4,256,354

Total Share Capital

4,700,000

4,700,000

4,700,000

4,700,000

4,700,000

Total Reserves

102,284

<65,943>

<233,999>

<365,623>

<443,646>

LIQUIDITY (Times)

 

 

 

 

 

Current Ratio

1.12

1.28

1.22

1.05

1.12

SOLVENCY RATIOS (Times)

 

 

 

 

 

Liabilities Ratio

1.76

1.66

1.90

2.06

2.22

Assets Backing Ratio

1.31

1.46

1.40

1.20

1.31

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.70

2.84

1.91

1.47

2.38

Net Profit Margin

1.22

1.73

1.21

0.69

2.20

Return On Net Assets

3.81

4.02

3.17

2.93

4.96

Return On Capital Employed

3.81

4.02

3.17

2.93

4.96

Return On Shareholders' Funds/Equity

3.50

3.63

2.95

1.80

6.65

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.03

UK Pound

1

Rs.82.43

Euro

1

Rs.70.49

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.