|
Report Date : |
28.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
RECRON (MALAYSIA) SDN. BHD. |
|
|
|
|
Formerly Known As : |
REAL AIM DEVELOPMENT SDN BHD (20/08/2007) |
|
|
|
|
Registered Office : |
Suite 7.01 - 7.03, Wisma Goldhill, 67 Jalan Raja Chulan, Level 7,
50200 Kuala Lumpur, Wilayah Persekutuan |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
20.07.2007 |
|
|
|
|
Com. Reg. No.: |
781769-K |
|
|
|
|
Legal Form : |
Private Limited |
|
|
|
|
Line of Business : |
Manufacturing of Textiles and Fibre Products |
|
|
|
|
No. of Employees : |
7,500 |
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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 |
|
REGISTRATION NO. |
: |
781769-K |
|
COMPANY NAME |
: |
RECRON (MALAYSIA) SDN. BHD. |
|
FORMER NAME |
: |
REAL AIM DEVELOPMENT SDN BHD (20/08/2007) |
|
INCORPORATION DATE |
: |
20/07/2007 |
|
COMPANY STATUS |
: |
EXIST |
|
LEGAL FORM |
: |
PRIVATE LIMITED |
|
LISTED STATUS |
: |
NO |
|
REGISTERED ADDRESS |
: |
SUITE 7.01 - 7.03, WISMA GOLDHILL, 67 JALAN RAJA CHULAN, LEVEL 7,
50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
BUSINESS ADDRESS |
: |
7, LEVEL 8 & LEVEL 9, WISMA GOLDHILL, 67 JALAN RAJA CHULAN, 50200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
TEL.NO. |
: |
03-20316000 |
|
FAX.NO. |
: |
03-20315000 |
|
WEB SITE |
: |
WWW.RECRONMALAYSIA.COM |
|
CONTACT PERSON |
: |
VINAY ( CHIEF OPERATING OFFICER ) |
|
INDUSTRY CODE |
: |
13990 |
|
PRINCIPAL ACTIVITY |
: |
MANUFACTURING OF TEXTILES AND FIBRE PRODUCTS |
|
AUTHORISED CAPITAL |
: |
MYR 50,000,000.00 DIVIDED INTO |
|
ISSUED AND PAID UP CAPITAL |
: |
MYR 2,500,000.00 DIVIDED INTO |
|
SALES |
: |
MYR 3,106,020,000 [2012] |
|
NET WORTH |
: |
MYR 836,970,000 [2012] |
|
M1000 OVERALL RANKING |
: |
135[2011] |
|
M1000 INDUSTRY RANKING |
: |
1[2011] |
|
BANKER (S) |
|
ICICI BANK LTD |
|
STAFF STRENGTH |
: |
7,500 [2013] |
|
LITIGATION |
: |
CLEAR |
|
DEFAULTER CHECK |
: |
CLEAR |
|
FINANCIAL CONDITION |
: |
POOR |
|
PAYMENT |
: |
AVERAGE |
|
MANAGEMENT CAPABILITY |
: |
AVERAGE |
|
COMMERCIAL RISK |
: |
LOW |
|
CURRENCY EXPOSURE |
: |
HIGH |
|
GENERAL REPUTATION |
: |
SATISFACTORY |
|
INDUSTRY OUTLOOK |
: |
AVERAGE GROWTH |
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) manufacturing of
textiles and fibre products.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
|
According to the Malaysia 1000 publication, the SC's ranking are as
follows: |
|||
|
|
|
|
|
|
YEAR |
2011 |
|
|
|
OVERALL RANKING |
135 |
|
|
|
INDUSTRY RANKING |
1 |
|
|
The immediate holding company of the SC is RELIANCE GLOBAL BUSINESS
B.V., a company incorporated in NETHERLANDS.
The ultimate holding company of the SC is RELIANCE INDUSTRIES LIMITED, a
company incorporated in INDIA.
The major shareholder(s) of the SC are shown as follows :
|
Name |
Address |
IC/PP/Loc No |
Shareholding |
(%) |
|
RELIANCE GLOBAL BUSINESS B.V. |
SOPHIALAAN 1A, 2514 JP, THE HAGUE, NETHERLANDS. |
RGB781769 |
2,500,000.00 |
100.00 |
|
|
|
|
--------------- |
------ |
|
|
|
|
2,500,000.00 |
100.00 |
|
|
|
|
============ |
===== |
+ Also Director
DIRECTOR 1
|
Name Of Subject |
: |
JAIN PRAVEEN KUMAR |
|
Address |
: |
UNIT A-26-06, MONT KIARA MERIDIN, 19, JALAN DUTA KIARA, MONT KIARA,
50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
IC / PP No |
: |
Z1808929 |
|
Nationality |
: |
INDIAN |
|
Date of Appointment |
: |
22/08/2007 |
DIRECTOR 2
|
Name Of Subject |
: |
KULKARNI VINAY RAMCHANDRA |
|
Address |
: |
N-8-1, SURIA STONOR CONDOMINIUM, 2, LORONG STONOR, 50450 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA. |
|
IC / PP No |
: |
501336910 |
|
Nationality |
: |
BRITISH |
|
Date of Appointment |
: |
26/04/2011 |
DIRECTOR 3
|
Name Of Subject |
: |
UDESHI RAJEN DWARKADAS |
|
Address |
: |
502, SHANTI APARTMENTS, 98, WALKESHWAR ROAD, 400006, BOMBAY, INDIA. |
|
IC / PP No |
: |
Z21705096 |
|
Nationality |
: |
INDIAN |
|
Date of Appointment |
: |
22/08/2007 |
DIRECTOR 4
|
Name Of Subject |
: |
MAN MOHAN |
|
Address |
: |
41, BAKHTAWAR ANNEXE, 22, NARAYAN DABHOLKAR ROAD, MALABAR HILL,
400006, BOMBAY, INDIA. |
|
IC / PP No |
: |
Z1777776 |
|
Nationality |
: |
INDIAN |
|
Date of Appointment |
: |
22/08/2007 |
DIRECTOR 5
|
Name Of Subject |
: |
RAJBANSHI ANIL KUMAR |
|
Address |
: |
A-402, CHAITANYA TOWERS, APPASAHAB MARATHE MARG, PRABHADEVI MUMBAI,
40002, INDIA. |
|
IC / PP No |
: |
Z1877333 |
|
Nationality |
: |
INDIAN |
|
Date of Appointment |
: |
05/02/2008 |
|
1) |
Name of Subject |
: |
VINAY |
|
|
Position |
: |
CHIEF OPERATING OFFICER |
|
|
|
|
|
|
2) |
Name of Subject |
: |
LAM SOON HOCK |
|
|
Position |
: |
ADMIN MANAGER |
|
|
|
|
|
|
3) |
Name of Subject |
: |
YOONG YIEN PING |
|
|
Position |
: |
ASSISTANT FINANCE MANAGER |
|
|
|
|
|
|
4) |
Name of Subject |
: |
SENGUPTA |
|
|
Position |
: |
FINANCE MANAGER |
|
|
|
|
|
|
5) |
Name of Subject |
: |
AMIT DAMANI |
|
|
Position |
: |
MARKETING MANAGER |
|
|
|
|
|
|
6) |
Name of Subject |
: |
KU CHOY HA |
|
|
Position |
: |
PRODUCTION MANAGER |
|
Auditor |
: |
PRICEWATERHOUSECOOPERS |
|
Auditor' Address |
: |
1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, PO BOX 10192, LEVEL
10, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
1) |
Company Secretary |
: |
MS. CATHERINE MAH SUIK CHING |
|
|
IC / PP No |
: |
5588928 |
|
|
New IC No |
: |
600421-10-6364 |
|
|
Address |
: |
19, JALAN BK 3/8D, BANDAR KINRARA , 47180 PUCHONG, SELANGOR, MALAYSIA. |
|
|
|
|
|
|
2) |
Company Secretary |
: |
MS. TIA HWEI PING |
|
|
|
|
|
|
|
New IC No |
: |
820813-10-5728 |
|
|
Address |
: |
118, JALAN SENTOSA 63, KAWASAN 19, 41050 KLANG, SELANGOR, MALAYSIA. |
Banking relations are maintained principally with :
|
1) |
Name |
: |
ICICI BANK LTD |
|
|
|
|
|
|
2) |
Name |
: |
MALAYAN BANKING BHD |
|
|
|
|
|
|
Charge No |
Creation Date |
Charge Description |
Chargee Name |
Total Charge |
Status |
|
1 |
25/10/2010 |
DEBENTURE |
- |
USD 25,000,000.00 |
Unsatisfied |
|
2 |
25/10/2010 |
MEMORANDUM OF CHARGE |
ICICI BANK LIMITED, SINGAPORE BRANCH |
USD 1,250,000.00 |
Unsatisfied |
|
3 |
11/10/2011 |
FIXED CHARGE |
MALAYAN BANKING BHD |
USD 30,000,000.00 |
Unsatisfied |
|
4 |
07/12/2012 |
THE CHARGE MADE BETWEEN THE COMPANY AND MALAYAN BANKING BERHAD |
MALAYAN BANKING BHD |
USD 10,625,000.00 |
Unsatisfied |
* 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.
* 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.
|
SOURCES OF RAW MATERIALS: |
|
||||
|
Local |
: |
YES |
Percentage |
: |
40% |
|
Overseas |
: |
YES |
Percentage |
: |
60% |
|
Import Countries |
: |
ASIA |
|||
The SC refused to provide any name of trade/service supplier and we are unable
to conduct any trade enquiry. However, from financial historical data we
conclude that :
|
OVERALL PAYMENT HABIT |
||||||||||||||
|
Prompt 0-30 Days |
[ |
|
] |
|
Good 31-60 Days |
[ |
|
] |
|
Average 61-90 Days |
[ |
X |
] |
|
|
Fair 91-120 Days |
[ |
|
] |
|
Poor >120 Days |
[ |
|
] |
|
|
|
|
|
|
|
Local |
: |
YES |
Percentage |
: |
10% |
|
Domestic Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
YES |
Percentage |
: |
90% |
|
Export Market |
: |
SOUTHEAST ASIA |
|||
|
Credit Term |
: |
30 - 60 DAYS |
|||
|
Payment Mode |
: |
CHEQUES |
|||
|
Type of Customer |
: |
TEXTILES AND GARMENT INDUSTRIES,RETAIL |
|||
|
Products manufactured |
: |
|
|
|
|
|
|
|
|
Ownership of premises |
: |
OWNED
|
|
Total Number of Employees: |
|
||||||||
|
YEAR |
2013 |
2012 |
2011 |
2010 |
2009 |
|
|||
|
GROUP |
N/A |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
|
COMPANY |
7,500 |
7,500 |
7,500 |
7,350 |
7,300 |
|
|
|
|
|
Branch |
: |
YES
|
||||||||
|
No of Branches |
: |
2
|
||||||||
|
|
|
|
||||||||
|
Branch(es) |
: |
LOT 2322, TANGGA BATU INDUSTRIAL ESTATE,
76400 TANJONG KLING, MELAKA, MALAYSIA.
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of textiles
and fibre products.
The SC is one of largest intergrated polyester and Textile Company with world
class manufacturing facilities at Nilai and Melaka in Malaysia.
The SC's products ranges are as follows:
1) Polyester Polymer Production
2) Nylon Polymer Production
3) Polyester Staple Fibre
4) Spun Yarns
5) Polyester Filament Yarns
6) PET bottle grade Resins
7) Fabrics
The SC produces annually over 500,000 tons of Polyester Products, 36,000 tons
of Nylon Products and 500 million meters of Fabrics.
The products are used for making ready made garments, home furnishings, curtain
materials and others.
The SC's vertically integrated production units have state of art machines and
equipment. Its biggest asset is its highly skilled and dedicated work force.
No projects found in our databank
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
Latest fresh investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client |
: |
N/A |
|
Current Telephone Number |
: |
03-20316000 |
|
Match |
: |
N/A |
|
Address Provided by Client |
: |
LEVEL 9, LEVEL 9 WISMA GOLDHILL 67, JALAN RAJA CHULAN 50200 |
|
Current Address |
: |
7, LEVEL 8 & LEVEL 9, WISMA GOLDHILL, 67 JALAN RAJA CHULAN, 50200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
Match |
: |
NO |
|
Latest Financial Accounts |
: |
YES |
Other Investigations
We contacted one of the staff from the SC and she provided some information on
the SC.
The address provided is incomplete.
|
Profitability |
|
|
|
|
|
|
|
Turnover |
: |
Erratic |
[ |
2008 - 2012 |
] |
|
|
Profit/(Loss) Before Tax |
: |
Decreased |
[ |
2008 - 2012 |
] |
|
|
Return on Shareholder Funds |
: |
Unfavourable |
[ |
<8.10%> |
] |
|
|
Return on Net Assets |
: |
Unfavourable |
[ |
<7.84%> |
] |
|
|
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 |
: |
Favourable |
[ |
45 Days |
] |
|
|
Debtor Ratio |
: |
Favourable |
[ |
9 Days |
] |
|
|
Creditors Ratio |
: |
Favourable |
[ |
19 Days |
] |
|
|
The SC's stocks were moving fast thus reducing its holding cost. This
had reduced funds being tied up in stocks. The favourable debtors' days could
be due to the good credit control measures implemented by the SC. The SC had
a favourable creditors' ratio where the SC could be taking advantage of the
cash discounts and also wanting to maintain goodwill with its creditors. |
||||||
|
Liquidity |
|
|
|
|
|
|
|
Liquid Ratio |
: |
Unfavourable |
[ |
0.14 Times |
] |
|
|
Current Ratio |
: |
Unfavourable |
[ |
0.66 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 |
[ |
<5.14 Times> |
] |
|
|
Gearing Ratio |
: |
Acceptable |
[ |
0.92 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's gearing was
slightly high. The SC is utilising the leverage concept to fund its expansion.
However, the high gearing has added financial risks to the SC. It will be
more vulnerable in times of economy downturn. |
||||||
|
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 was
slightly high and its financial risk was also high. If no plans are made to
reduce its gearing, the SC's performance may deteriorate in the coming year. |
||||||
|
Overall financial condition of the SC : POOR |
||||||
|
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 |
|||||
|
MSIC CODE |
|
|
13990 : Manufacture of other textiles n.e.c. |
|
|
|
|
|
INDUSTRY : |
MANUFACTURING |
|
|
|
|
The Manufacturing sector is one of the important sectors to the growth
of the Malaysian economy. According to Ministry of Finance, the manufacturing
sector is expected to grow 4.9% in year 2013. Export oriented-industries are
expected to benefit from the higher growth of global trade, while
domesticoriented industries expand in line with the better consumer sentiment
and business confidence. The resource-based industries are envisaged to grow
steadily attributed to improved demand for petroleum, chemical, rubber and plastic
products. With better job prospects and higher disposable income, the
transportation equipment subsector, in particular, the passenger car segment
is expected to expand. |
|
|
Value-added of the manufacturing sector expanded 5% during the first
half of 2012. Output of the sector rose 5.2% during the first sevenmonths of
2012 in line with the increase in sales value of manufactured products by
6.5% to RM363.1 billion. Output from domesticoriented industries continued to
expand 8.6% while export-oriented industries grew 4.1%. |
|
|
According to the Department of Statistics, the sales value of the
Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion)
to record RM52.4 billion as compared to RM48.8 billion reported in year 2012.
Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2
billion) as compared with the preceding month. The sales value in December
2012 has been revised positive 7.5% year-on-year to record RM52.6 billion. |
|
|
Output of rubber products increased 3.6% in the first seven month of
2012 mainly supported by continuous demand for rubber gloves. Output of
rubber gloves grew 5.9% on account of the expansion in the global healthcare
industry and wider usage of gloves in other sectors. Similarly, output of catheters,
especially for use in medical appliances, also registered a strong growth of
12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in
tandem with slowing external demand from the automotive industry, especially
China. |
|
|
Meanwhile, production of wood and wood products rebounded 4.6% largely
supported by higher demand for wooden and cane furniture (33.5%). The
positive performance was attributed to vibrant higher demand from major
export destinations such as China and the United States (US) for
Malaysian-made furniture. Demand from China accelerated further following the
country's rising income level and the implementation of zero import duty on
Malaysian made-furniture. Malaysia government has growth target of 6.5% for
wood based furniture where estimated to reach up to RM53 billion by year
2020.The government providing pioneer status for tax exemption and investment
tax allowance for this industry as a boost up step towards produce good
quality product and to meet the world demand. |
|
|
The output of chemicals and chemical products rose 9.9% in the first
seven month of year 2012 on account of increasing demand for plastic products
(11.8%) and basic chemicals (11.1%). External demand for plastic packaging
materials surged during the early part of the year 2012, particularly from
Japan and Thailand, as manufacturers resumed operations, which were
interrupted by natural calamities and power outages. Chemical production are
expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest
contributor in world Chemicals & Chemical industries. |
|
|
Tax and non-tax incentives provided by goverment encourage
manufacturers to move up the value chain of manufacturing industry. The new
growth initiatives by goverment in the manufacturing sector such assolar and
medial services can be important drivers of growth apart from helping to
diversify the manufacturing base and contributing to the resilience of the
sector. |
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth |
|
Incorporated in 2007, the SC is a Private Limited company, focusing on
manufacturing of textiles and fibre products. Having been in business for 6
years, the SC has established a remarkable clientele base for itself which has
contributed to its business growth. Having strong support from its holding
company has enabled the SC to remain competitive despite the challenging
business environment. The capital standing of the SC is fair. With an adequate
share capital, the SC has the potential of expanding its business in future.
Over the years, the SC has established an extensive clientele base in the
market. Besides catering to the local market, the SC has penetrated into other
countries. With the contribution of both local and overseas customers, the SC
is likely to be exposed to lower commercial risk. Hence, we believe that the SC
has better business expansion opportunities in the future. Being a large
entity, the SC has a steady workforce of 7,500 personnel to support its
business operations. Its future prospects seem to be fairly good as its
business operations are running relatively stable. 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 gearing level of
the SC is slightly high, therefore it faces moderate financial risk.
Nevertheless, given a positive net worth standing at MYR 836,970,000, the SC
should be able to maintain its business in the near terms.
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 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.
Overall the SC has a good control over its resources.
We regard that the SC's overall payment habit is average.
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.
Based on the above condition, we recommend credit be granted to the SC
normally.
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN
FINANCIAL REPORTING STANDARDS(FRS) |
|
RECRON (MALAYSIA) SDN. BHD. |
|
Financial Year End |
31/12/2012 |
31/12/2011 |
31/12/2010 |
31/12/2009 |
31/12/2008 |
|
Months |
12 |
12 |
12 |
12 |
17 |
|
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 |
FULL |
|
Currency |
MYR |
MYR |
MYR |
MYR |
MYR |
|
|
|
|
|
|
|
|
TURNOVER |
3,106,020,000 |
3,807,050,000 |
3,192,020,000 |
2,888,960,000 |
2,932,020,000 |
|
Other Income |
1,260,000 |
5,430,000 |
- |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
Total Turnover |
3,107,280,000 |
3,812,480,000 |
3,192,020,000 |
2,888,960,000 |
2,932,020,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS |
<115,700,000> |
44,290,000 |
144,620,000 |
11,710,000 |
45,700,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT/(LOSS) BEFORE TAXATION |
<115,700,000> |
44,290,000 |
144,620,000 |
11,710,000 |
45,700,000 |
|
Taxation |
47,940,000 |
<8,250,000> |
<21,810,000> |
4,700,000 |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT/(LOSS) AFTER TAXATION |
<67,760,000> |
36,040,000 |
122,810,000 |
16,410,000 |
45,700,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD |
|
|
|
|
|
|
As previously reported |
220,960,000 |
184,920,000 |
62,110,000 |
45,700,000 |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
As restated |
220,960,000 |
184,920,000 |
62,110,000 |
45,700,000 |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
153,200,000 |
220,960,000 |
184,920,000 |
62,110,000 |
45,700,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
153,200,000 |
220,960,000 |
184,920,000 |
62,110,000 |
45,700,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L) |
|
|
|
|
|
|
Bank overdraft |
10,570,000 |
8,260,000 |
11,160,000 |
11,410,000 |
- |
|
Term loan / Borrowing |
8,270,000 |
8,130,000 |
9,020,000 |
19,910,000 |
30,130,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
18,840,000 |
16,390,000 |
20,180,000 |
31,320,000 |
30,130,000 |
|
BALANCE SHEET |
|
RECRON (MALAYSIA) SDN. BHD. |
|
ASSETS EMPLOYED: |
|
|
|
|
|
|
FIXED ASSETS |
1,478,190,000 |
1,547,530,000 |
1,481,940,000 |
1,579,120,000 |
1,617,770,000 |
|
|
|
|
|
|
|
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL LONG TERM ASSETS |
1,478,190,000 |
1,547,530,000 |
1,481,940,000 |
1,579,120,000 |
1,617,770,000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
Stocks |
381,210,000 |
465,570,000 |
452,260,000 |
449,240,000 |
494,930,000 |
|
Trade debtors |
78,470,000 |
136,750,000 |
136,800,000 |
142,430,000 |
111,360,000 |
|
Other debtors, deposits & prepayments |
15,870,000 |
15,560,000 |
48,500,000 |
7,480,000 |
15,390,000 |
|
Short term deposits |
3,820,000 |
3,970,000 |
3,870,000 |
- |
- |
|
Cash & bank balances |
400,000 |
120,000 |
1,400,000 |
70,000 |
370,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL CURRENT ASSETS |
479,770,000 |
621,970,000 |
642,830,000 |
599,220,000 |
622,050,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL ASSET |
1,957,960,000 |
2,169,500,000 |
2,124,770,000 |
2,178,340,000 |
2,239,820,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Trade creditors |
158,530,000 |
117,000,000 |
132,460,000 |
111,700,000 |
75,260,000 |
|
Other creditors & accruals |
40,590,000 |
45,840,000 |
48,130,000 |
48,370,000 |
41,210,000 |
|
Bank overdraft |
204,910,000 |
183,460,000 |
128,540,000 |
235,080,000 |
254,820,000 |
|
Short term borrowings/Term loans |
91,750,000 |
95,310,000 |
661,610,000 |
654,000,000 |
658,930,000 |
|
Other borrowings |
121,090,000 |
103,950,000 |
100,000,000 |
165,000,000 |
191,130,000 |
|
Other liabilities |
105,050,000 |
117,320,000 |
6,450,000 |
15,300,000 |
35,360,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL CURRENT LIABILITIES |
721,920,000 |
662,880,000 |
1,077,190,000 |
1,229,450,000 |
1,256,710,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
NET CURRENT ASSETS/(LIABILITIES) |
<242,150,000> |
<40,910,000> |
<434,360,000> |
<630,230,000> |
<634,660,000> |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL NET ASSETS |
1,236,040,000 |
1,506,620,000 |
1,047,580,000 |
948,890,000 |
983,110,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
SHARE CAPITAL |
|
|
|
|
|
|
Ordinary share capital |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL SHARE CAPITAL |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
|
RESERVES |
|
|
|
|
|
|
Capital reserve |
681,270,000 |
727,190,000 |
773,110,000 |
819,040,000 |
864,970,000 |
|
Retained profit/(loss) carried forward |
153,200,000 |
220,960,000 |
184,920,000 |
62,110,000 |
45,700,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL RESERVES |
834,470,000 |
948,150,000 |
958,030,000 |
881,150,000 |
910,670,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
SHAREHOLDERS' FUNDS/EQUITY |
836,970,000 |
950,650,000 |
960,530,000 |
883,650,000 |
913,170,000 |
|
LONG TERM LIABILITIES |
|
|
|
|
|
|
Long term loans |
351,710,000 |
460,670,000 |
- |
- |
- |
|
Deferred taxation |
47,360,000 |
95,300,000 |
87,050,000 |
65,240,000 |
69,940,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL LONG TERM LIABILITIES |
399,070,000 |
555,970,000 |
87,050,000 |
65,240,000 |
69,940,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
1,236,040,000 |
1,506,620,000 |
1,047,580,000 |
948,890,000 |
983,110,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
RECRON (MALAYSIA) SDN. BHD. |
|
TYPES OF FUNDS |
|
|
|
|
|
|
Cash |
4,220,000 |
4,090,000 |
5,270,000 |
70,000 |
370,000 |
|
Net Liquid Funds |
<200,690,000> |
<179,370,000> |
<123,270,000> |
<235,010,000> |
<254,450,000> |
|
Net Liquid Assets |
<623,360,000> |
<506,480,000> |
<886,620,000> |
<1,079,470,000> |
<1,129,590,000> |
|
Net Current Assets/(Liabilities) |
<242,150,000> |
<40,910,000> |
<434,360,000> |
<630,230,000> |
<634,660,000> |
|
Net Tangible Assets |
1,236,040,000 |
1,506,620,000 |
1,047,580,000 |
948,890,000 |
983,110,000 |
|
Net Monetary Assets |
<1,022,430,000> |
<1,062,450,000> |
<973,670,000> |
<1,144,710,000> |
<1,199,530,000> |
|
BALANCE SHEET ITEMS |
|
|
|
|
|
|
Total Borrowings |
769,460,000 |
843,390,000 |
890,150,000 |
1,054,080,000 |
1,104,880,000 |
|
Total Liabilities |
1,120,990,000 |
1,218,850,000 |
1,164,240,000 |
1,294,690,000 |
1,326,650,000 |
|
Total Assets |
1,957,960,000 |
2,169,500,000 |
2,124,770,000 |
2,178,340,000 |
2,239,820,000 |
|
Net Assets |
1,236,040,000 |
1,506,620,000 |
1,047,580,000 |
948,890,000 |
983,110,000 |
|
Net Assets Backing |
836,970,000 |
950,650,000 |
960,530,000 |
883,650,000 |
913,170,000 |
|
Shareholders' Funds |
836,970,000 |
950,650,000 |
960,530,000 |
883,650,000 |
913,170,000 |
|
Total Share Capital |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
|
Total Reserves |
834,470,000 |
948,150,000 |
958,030,000 |
881,150,000 |
910,670,000 |
|
LIQUIDITY (Times) |
|
|
|
|
|
|
Cash Ratio |
0.01 |
0.01 |
0.00 |
0.00 |
0.00 |
|
Liquid Ratio |
0.14 |
0.24 |
0.18 |
0.12 |
0.10 |
|
Current Ratio |
0.66 |
0.94 |
0.60 |
0.49 |
0.49 |
|
WORKING CAPITAL CONTROL (Days) |
|
|
|
|
|
|
Stock Ratio |
45 |
45 |
52 |
57 |
62 |
|
Debtors Ratio |
9 |
13 |
16 |
18 |
14 |
|
Creditors Ratio |
19 |
11 |
15 |
14 |
9 |
|
SOLVENCY RATIOS (Times) |
|
|
|
|
|
|
Gearing Ratio |
0.92 |
0.89 |
0.93 |
1.19 |
1.21 |
|
Liabilities Ratio |
1.34 |
1.28 |
1.21 |
1.47 |
1.45 |
|
Times Interest Earned Ratio |
<5.14> |
3.70 |
8.17 |
1.37 |
2.52 |
|
Assets Backing Ratio |
494.42 |
602.65 |
419.03 |
379.56 |
393.24 |
|
PERFORMANCE RATIO (%) |
|
|
|
|
|
|
Operating Profit Margin |
<3.73> |
1.16 |
4.53 |
0.41 |
1.56 |
|
Net Profit Margin |
<2.18> |
0.95 |
3.85 |
0.57 |
1.56 |
|
Return On Net Assets |
<7.84> |
4.03 |
15.73 |
4.53 |
7.71 |
|
Return On Capital Employed |
<6.72> |
3.59 |
14.01 |
3.63 |
6.13 |
|
Return On Shareholders' Funds/Equity |
<8.10> |
3.79 |
12.79 |
1.86 |
5.00 |
|
Dividend Pay Out Ratio (Times) |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
NOTES TO ACCOUNTS |
|
|
|
|
|
|
Contingent Liabilities |
0 |
0 |
0 |
0 |
0 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.68.36 |
|
|
1 |
Rs.106.03 |
|
Euro |
1 |
Rs.91.47 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.