MIRA INFORM REPORT

 

 

Report Date :

24.04.2013

 

IDENTIFICATION DETAILS

 

Name :

MTS DIDACTIC SDN. BHD.

 

 

Registered Office :

33-2b, Jalan 4/93, Off Jalan Lombong, Taman Miharja, 2 1/2 Mile, Jalan Cheras, 55200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

20.01.2004

 

 

Com. Reg. No.:

640353-P

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading, consultancy and training of engineering equipment

 

 

No. of Employees :

Not available 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate  

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear 

 

NOTES:

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

 

ECGC Country Risk Classification List – 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. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. 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 about 35% of government revenue in 2011. Bank Negera Malaysia (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.

:

640353-P

COMPANY NAME

:

MTS DIDACTIC SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

20/01/2004

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

33-2B, JALAN 4/93, OFF JALAN LOMBONG, TAMAN MIHARJA, 2 1/2 MILE, JALAN CHERAS, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

12, JALAN MERANTI JAYA 7, TAMAN PERINDUSTRIAN MERANTI JAYA, 47100 PUCHONG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-80616881

FAX.NO.

:

03-80615887

EMAIL

:

MTS@MTSDIDACTIC.COM

WEB SITE

:

WWW.MTSDIDACTIC.COM

CONTACT PERSON

:

KHIEW JU MENG ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

711

PRINCIPAL ACTIVITY

:

TRADING, CONSULTANCY AND TRAINING OF ENGINEERING EQUIPMENT

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 2,879,991 [2011]

NET WORTH

:

MYR 65,595 [2011]

 

 

 

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

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

 

The SC is principally engaged in the (as a / as an) trading, consultancy and training of engineering equipment.

 

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. KHIEW JU MENG +

43, JALAN BAKAWALI 1, TAMAN JOHOR JAYA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

691014-01-5453 A1423984

499,995.00

100.00

MS. LEE VAN FANG +

17, JALAN TUNGKU IBRAHIM, 05000 ALOR SETAR, KEDAH, MALAYSIA.

721024-09-5068

5.00

0.00

 

 

 

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

------

 

 

 

500,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

Name Of Subject

:

MS. LEE VAN FANG

Address

:

17, JALAN TUNGKU IBRAHIM, 05000 ALOR SETAR, KEDAH, MALAYSIA.

 

 

 

New IC No

:

721024-09-5068

Date of Birth

:

24/10/1972

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

20/01/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

Name Of Subject

:

MR. KHIEW JU MENG

Address

:

43, JALAN BAKAWALI 1, TAMAN JOHOR JAYA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

A1423984

New IC No

:

691014-01-5453

Date of Birth

:

14/10/1969

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

20/01/2004

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

KHIEW JU MENG

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

LEE VAN FANG

 

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

STEVEN LIM & ASSOCIATES

Auditor' Address

:

33-2, JALAN 4/93, TAMAN MIHARJA, CHERAS, LEVEL 2, 5520 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. WONG HEE KEE

 

IC / PP No

:

A1535353

 

New IC No

:

700429-10-6543

 

Address

:

5, JALAN MARGOSA SD 10/1D, BANDAR SERI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

BANKING


No Banker found in our databank. 

ENCUMBRANCE (S)



ENCUMBRANCE 1

Date of Creation

:

11/08/2010

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BERHAD

 

 

 

 

 

 

 

Form 40 Dated 13/08/2010

Registered and Numbered 1 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 supplier. 

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

[

 

]

 

Fair 91-120 Days

[

X

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

MIDDLE EAST

SOUTH AMERICA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

TELEGRAPHIC TRANSFER (TT)
LETTER OF CREDIT (LC)

Type of Customer

:

UNIVERSITIES,SCHOOL

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Services

:

OFFER ENGINEERING SERVICES

 

 

 

 

Award

:

1 ) ISO 9001 Year :2008

 

 

 

 

 

Branch

:

YES

 

 

Other Information:

The SC is principally engaged in the (as a / as an) trading, consultancy and training of engineering equipment. 

The SC is an educational engineering consultant in the field of Mechanical and Mechatronics, especially in CNC (Computer Numerical Control) technology, offering services to our esteemed clients consisting of Universities, Institutes, Colleges, Technical or Vocational Schools, etc .

The SC also collaborating with universities or institutions for cultivating the healthy industrial-academic bond in building up strong frame and backbone of global industry.

Moreover, SC also involve is supply wide range of products :

- CNC Simulation System

- EDU CNC Studio Emulator

- EDU VR1 CNC Machine Series

- EDU VR1 Lathe

- EDU VR1 Mill

- EDU VR1 CNC Controller Troubleshooting Board

- EDU MWX (Machinery Wiring Experiences)

- EDU VR1-TB CNC Machine Series

- EDU VR1 Lathe - TB

- EDU VR1 Mill - TB

- EDU VR1.5 CNC Machine Series

- EDU VR1.5 Lathe

- EDU VR1.5 Mill (with Optional ATC)

- EDU Mini CNC Machine Series

- EDU Mini Lathe

- EDU Mini Mill

- EDU MAXSPEED Mill-330

- Industrial CNC Machine series

- SPINNER Universal Lathe: TC400-42

- SPINNER Universal Machining Center : MVC650-A

- SPINNER CNC Multi-axis Lathe:TC600-52

- SPINNER CNC 5-axis Milling:U5-620

- EDU Smart CIM / FMS Series

- EDU VR2 SMART CIM - 200

- EDU VR1 SMART FMS - 120

- EDU VR1 SMART CIM -110

- EDU CKD SMART FMS - 120

- EDU VR1 SMART CIM-108

- EDU VR1 SMART CIM- 120 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

603-8061 6881

Current Telephone Number

:

03-80616881

Match

:

YES

 

 

 

Address Provided by Client

:

NO. 12 JALAN MARANTI JAYA 7 TAMAN PERINDUSTRIAN MERANTI JAYA

47100 PUCHONG SELA

Current Address

:

12, JALAN MERANTI JAYA 7, TAMAN PERINDUSTRIAN MERANTI JAYA, 47100 PUCHONG, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

we contacted the SC and she provide some information on SC.

The address provided is incomplete.

The SC refused to disclose its banker and number of employees.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

<1,067.38%>

]

 

Return on Net Assets

:

Unfavourable

[

<29.46%>

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC incurred losses during the year due to the inefficient control of its operating costs. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Nil

[

0 Days

]

 

Debtor Ratio

:

Unfavourable

[

96 Days

]

 

Creditors Ratio

:

Unfavourable

[

120 Days

]

 

 

 

 

 

 

 

 

As the SC is a service oriented company, the SC does not need to keep stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Unfavourable

[

0.72 Times

]

 

Current Ratio

:

Unfavourable

[

0.72 Times

]

 

 

 

 

 

 

 

 

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

<6.73 Times>

]

 

Gearing Ratio

:

Unfavourable

[

32.92 Times

]

 

 

 

 

 

 

 

 

The SC incurred losses in the year. It did not generate sufficient income to service its interest. If the situation does not improve, the SC may be vulnerable to default in servicing the interest. The SC was highly geared, thus it had a high financial risk. The SC was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the SC will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the SC has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the SC's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC's losses increased but its turnover showed a fluctuating trend. This indicate the SC was slowly losing its market share due to its competitors. 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 interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The SC's gearing 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:

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

711 : Architectural and engineering activities and related technical consultancy

 

 

INDUSTRY :

BUSINESS SERVICES

 

 

 


The services sector is expected to continue playing an important role in driving the malaysia economy. The services activity might slow down going forward, considering that at the global level, the services sector has already taken some hits. The sector's output expansion was the weakest in the 2010 to 2012 growth period.


The services sector is projected to continue to drive growth in 2012. Growth will be supported by consumer-related sub-sectors, which is likely to cushion the effects of slower trade-related activity during the year 2012. In the wholesale and retail service sub-sector, growth will be led by the retail segment, in line with the trend in private consumption. However, growth in the wholesale services expected to be lower. Growth in the finance and insurance sub-sector is expected to remain firm, supported by bank lending activity. In the insurance segment, growth is expected to emanate from the general insurance business, following favourable motor vehicle sales and the implementation of the new motor cover framework which will enhance efficiency in the motor insurance and takaful sector.


Growth in the communication sub-sector is projected to be sustained, amidst margin compression resulting from rising competition among service providers. Growth will be supported by the expected launch of advanced wireless technology, the ongoing widening of the High-Speed Broadband (HSBB) infrastructure and Government initiatives to promote broadband services nationwide. In the year 2012, Communication service sector expanded to 9.3% propelled by the higher consumption in mobile phone services and data communication. Meanwhile, growth in the transport and storage sub-sector is anticipated to moderate, amidst the uncertain external outlook. Malaysia's banking sector had seen quite an overhaul in the past decade and was now a model of stability. While it seemed likely that the international situation would slow lending somewhat in 2012, it would still rise at a respectable rate, and the long-term path should see further growth and reform.


In year 2012, Services sector recorded a growth of 5.8% underpinned by Wholesale & Retail and Communication. The growth of 5.7% in Wholesale & Retail Trade service was supported by the expansion in retail segment particularly in household appliances & equipments, pharmaceutical products and personal care products services.


Accroding to Ministry of Finance, the services sector are expected to remain upbeat in 2013, with the accelerated implementation with major initiatives under the National Key Result Areas and continued investment in the seven services subsectors under the National Key Economic Areas. It said that these initiatives are expected to drive the wholesale and retail trade, finance and insurance, and communication subsectors, which are expected to grow 6.8%, 5.2% and 8.2% respectively.


The Business Services sector is a key one which continues to accelerate changes within specialised areas in many developed nations and consequently drive higher economic growth and greater efficiency. According to the Minister of Human Resource, the Business Services sector has a unique role to play in driving the competitiveness of a wide range of business segments, industries and professional services. Therefore, the Malaysian business services sector is on track to contribute RM78.7 billion to the gross national income (GNP) by 2020. The growth of the service sector are also expected to create 107,000 new jobs by 2020.


Malaysian government has used various measures to promote the development of its service industries. Policies pursued by the government of Malaysia in promoting consolidation within the banking sector, encouraging the development of private hospitals, and investing in port facilities could seek to strengthen the industries. The Malaysian government has liberalized some barriers to the foreign provision of services, and recent liberalization could result in an increase of contribution of services sector to the economy growth of the country.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 2004, the SC is a Private Limited company, focusing on trading, concultancy and training of engineering equipment. Having been in business for 10 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. With a weak shareholders' backing, the SC's capital position is weak. Inadequate capital may be a constraint to the SC as it limits its ability to expand its business in future. The capital standing of the SC is weak. The SC may face difficulties to expand its business compared to other large corporation. Without a strong capital, the business expansion opportunities of the SC is limited.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. 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.


Due to the challenging market conditions, the SC's business performance seems to be deteriorating and losses incurred. 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 high gearing ratio clearly implied that the SC was supported by more debt than equity. Thus, the SC is exposed to high financial risk.


Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.


The SC's overall payment habit is fair and this clearly implied a weak credit control of the SC.


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 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)

MTS DIDACTIC SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

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

FULL

FULL

FULL

FULL

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

2,879,991

9,973,884

2,193,050

1,319,744

1,173,736

Other Income

45,391

215,566

303

3,008

-

 

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

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

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

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

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

Total Turnover

2,925,382

10,189,450

2,193,353

1,322,752

1,173,736

Costs of Goods Sold

<2,205,645>

<8,345,348>

<1,371,646>

<861,002>

-

 

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

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

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

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

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

Gross Profit

719,737

1,844,102

821,707

461,750

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

<708,420>

384,776

13,861

10,991

46,489

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

<708,420>

384,776

13,861

10,991

46,489

Taxation

8,275

<109,818>

<18,646>

<9,561>

<6,177>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

<700,145>

274,958

<4,785>

1,430

40,312

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

265,740

<9,218>

<4,433>

<5,863>

<46,175>

 

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

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

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

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

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

As restated

265,740

<9,218>

<4,433>

<5,863>

<46,175>

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<434,405>

265,740

<9,218>

<4,433>

<5,863>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<434,405>

265,740

<9,218>

<4,433>

<5,863>

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

25,866

12,451

2,001

1,376

-

Term loan / Borrowing

65,771

15,869

-

-

-

 

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

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

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

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

 

 

91,637

28,320

2,001

1,376

 

 

 

 

BALANCE SHEET

 

 

MTS DIDACTIC SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

3,146,013

2,084,354

288,452

90,247

64,688

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

3,146,013

2,084,354

288,452

90,247

64,688

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

-

109,612

-

-

-

Trade debtors

759,979

1,996,188

372,234

1,013,910

-

Other debtors, deposits & prepayments

545,175

317,383

201,632

247,855

-

Short term deposits

25,000

230,000

-

-

-

Amount due from director

-

-

293,915

8,923

-

Cash & bank balances

1,304,371

98,548

961,980

118,815

-

Others

44,756

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

2,679,281

2,751,731

1,829,761

1,389,503

997,074

 

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

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

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

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

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

TOTAL ASSET

5,825,294

4,836,085

2,118,213

1,479,750

1,061,762

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

725,033

936,132

809,024

1,181,970

-

Other creditors & accruals

270,345

150,091

967,000

143,930

-

Hire purchase & lease creditors

79,778

48,910

30,125

9,903

-

Short term borrowings/Term loans

51,766

34,572

-

-

-

Deposits & balances of banks & agents

-

982,991

-

-

-

Amounts owing to director

2,604,954

570,910

-

-

-

Provision for taxation

-

770

17,178

9,566

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

3,731,876

2,724,376

1,823,327

1,345,369

963,248

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<1,052,595>

27,355

6,434

44,134

33,826

 

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

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

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

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

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

TOTAL NET ASSETS

2,093,418

2,111,709

294,886

134,381

98,514

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

500,000

500,000

100,000

100,000

100,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

500,000

500,000

100,000

100,000

100,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

<434,405>

265,740

<9,218>

<4,433>

<5,863>

 

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

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

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

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

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

TOTAL RESERVES

<434,405>

265,740

<9,218>

<4,433>

<5,863>

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

65,595

765,740

90,782

95,567

94,137

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

1,689,693

970,841

-

-

-

Hire purchase creditors

338,130

357,028

204,104

37,529

-

Deferred taxation

-

18,100

-

1,285

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

2,027,823

1,345,969

204,104

38,814

4,377

 

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

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

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

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

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

 

2,093,418

2,111,709

294,886

134,381

98,514

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

MTS DIDACTIC SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

1,329,371

328,548

961,980

118,815

-

Net Liquid Funds

1,329,371

328,548

961,980

118,815

-

Net Liquid Assets

<1,052,595>

<82,257>

6,434

44,134

33,826

Net Current Assets/(Liabilities)

<1,052,595>

27,355

6,434

44,134

33,826

Net Tangible Assets

2,093,418

2,111,709

294,886

134,381

98,514

Net Monetary Assets

<3,080,418>

<1,428,226>

<197,670>

5,320

29,449

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

2,159,367

1,411,351

234,229

47,432

-

Total Liabilities

5,759,699

4,070,345

2,027,431

1,384,183

967,625

Total Assets

5,825,294

4,836,085

2,118,213

1,479,750

1,061,762

Net Assets

2,093,418

2,111,709

294,886

134,381

98,514

Net Assets Backing

65,595

765,740

90,782

95,567

94,137

Shareholders' Funds

65,595

765,740

90,782

95,567

94,137

Total Share Capital

500,000

500,000

100,000

100,000

100,000

Total Reserves

<434,405>

265,740

<9,218>

<4,433>

<5,863>

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.36

0.12

0.53

0.09

-

Liquid Ratio

0.72

0.97

1.00

1.03

-

Current Ratio

0.72

1.01

1.00

1.03

1.04

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

0

4

0

0

-

Debtors Ratio

96

73

62

280

-

Creditors Ratio

120

41

215

501

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

32.92

1.84

2.58

0.50

-

Liabilities Ratio

87.81

5.32

22.33

14.48

10.28

Times Interest Earned Ratio

<6.73>

14.59

7.93

8.99

-

Assets Backing Ratio

4.19

4.22

2.95

1.34

0.99

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

<24.60>

3.86

0.63

0.83

3.96

Net Profit Margin

<24.31>

2.76

<0.22>

0.11

3.43

Return On Net Assets

<29.46>

19.56

5.38

9.20

47.19

Return On Capital Employed

<28.38>

19.12

4.88

8.57

47.19

Return On Shareholders' Funds/Equity

<1,067.38>

35.91

<5.27>

1.50

42.82

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

 





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.30

UK Pound

1

Rs.82.88

Euro

1

Rs.70.80

 

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.