MIRA INFORM REPORT

 

 

Report Date :

14.12.2013

 

IDENTIFICATION DETAILS

 

Name :

MACWORLD INDUSTRIES LIMITED

 

 

Registered Office :

U0195 Jalan Merdeka, Federal Territory Of Labuan, 87007 Labuan, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Date of Incorporation :

04.08.2011

 

 

Com. Reg. No.:

LL08375-L

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Administration Services and Offshore Trading

 

 

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 :

Unknown

 

 

Litigation :

Clear

 

NOTES :

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

 

ECGC Country Risk Classification List – September 30th, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

LL08375-L

COMPANY NAME

:

MACWORLD INDUSTRIES LIMITED

FORMER NAME

:

N/A

INCORPORATION DATE

:

04/08/2011

COMPANY STATUS

:

EXIST

LEGAL FORM

:

LIMITED COMPANY

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

U0195 JALAN MERDEKA, FEDERAL TERRITORY OF LABUAN,, 87007 LABUAN, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

N/A

TEL.NO.

:

N/A

FAX.NO.

:

N/A

CONTACT PERSON

:

N/A

INDUSTRY CODE

:

74101

PRINCIPAL ACTIVITY

:

ADMINISTRATION SERVICES AND OFFSHORE TRADING

AUTHORISED CAPITAL

:

N/A

ISSUED AND PAID UP CAPITAL

:

N/A

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

WEAK

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

POOR

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

The SC is principally engaged in the (as a / as an) administration services and offshore trading.

 

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).

CHARACTERISTICS OF OFFSHORE COMPANIES

To participate in the offshore activities and enjoy the special tax advantage provided under the Labuan Offshore Business Activity Tax Act 1990, an entity must be an offshore company.

An offshore company in Labuan shall have the following characteristics:

(a) It must be a company limited by shares (sec 14(3) of the Offshore Companies Act 1990);

(b) Any person may form an offshore company by subscribing to a memorandum;

(c) It is required to engage a trust company which is a company registered under the Labuan Trust Companies Act 1990 to discharge its statutory duties since all documents required to be filed with the Labuan Financial Services Authority must be filed through a trust company;

(d) There is no minimum capital requirement;

(e) It can be alter its share capital by a special resolution (sec. 51(10 of the Offshore Companies Act 1990);

(f) It can reduce its share capita special resolution (sec.51(10 of the Offshore Companies Act 1990);

(g) It may purchase its own shares (sec. 48(2)(3) of the Offshore Companies Act 1990); and;

(h) There is no restriction in issuing share warrants.

PROHIBITED ACTIVITES

Offshore companies are prohibited from carrying on the following activities:

(a) the business of banking or insurance or any such similar business unless it is licensed so to do under the relevant laws currently in force in Malaysia;
(b) it must only carry on business in, from or through Labuan;
(c) it must not:

(1) except as permitted by the Offshore Banking Act 1990 or by the Labuan Financial Services Authority carry on business with a resident of Malaysia;

(2) except as permitted by the Offshore Banking Act 1990, carry on banking business;

(3) Except for defraying its administrative and statutory expenses and where Sec. 147 of the Offshore Companies Act 1990 applies, carry on business in Malaysian currency;

(4) Except as permitted by the Offshore Insurance Act 1990, carry on business as an insurance or a reinsurance company;

(5) Carry on shipping or petroleum operations in Malaysia; or

(6) Carry on any business of a trust company.

PERMITTED ACTIVIES

An offshore company may do the following:

(a) Make or maintain deposits with a person carrying on business within Malaysia;

(b) Make or maintain professional contacts with any counsel and attorney, accountant, book-keeper, trust company, domestic company wholly owned by a trust company made available by the trust company to act or be appointed as a resident director or a resident secretary of an offshore company;

(c) Prepare or maintain books and record with Malaysia;

(d) Hold, within Malaysia, meetings of its directors or members;

(e) Acquire or hold any lease of any property for the purpose of its operation or as accommodation for its offices or employees; or

(f) Hold shares, debt obligations or other securities for the purposes of a transaction entered into in the ordinary course of business in connection with the lending of money.

No shareholders was found in our databank at the time of investigation



DIRECTOR


No director found in our databank.

 

MANAGEMENT


No data found in our databank.

 

AUDITOR


No Auditor found in our databank

 

COMPANY SECRETARIES


No company secretary was found in our databank.



BANKING


No Banker found in our databank.



ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

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 staff from the registered company refused to disclose the SC's suppliers.



CLIENTELE

 

Local

:

N/A

Overseas

:

N/A


The staff from the registered company refused to disclose any information on the SC's clientele.

 

 

OPERATIONS

 

Services

:

ADMINISTRATION SERVICES AND OFFSHORE TRADING

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) administration services and offshore trading.

The SC is an offshore trading company registered in Labuan. The staff from the SC's Registered Company, EC Trust (Labuan) Bhd, informed us that she is unable to reveal any information on the SC as it is confidential.

The SC is a related company of MAC WORLD INDUSTRIES SDN BHD located in Petaling Jaya dealing in the followings:

* Palm Oil & Palm Products (Edible)
* Industrial Grade Palm Oil
* Soft Oils (In consumer packs)
* Flavors & Colors
* Commodities
* Oleo Chemicals
* Coconut Oil

 

PROJECTS


No projects found in our databank

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

N/A

Match

:

N/A

 

 

 

Address Provided by Client

:

U 0195, JALAN MERDEKA, 87007 FEDERAL TERRITORY OF LABUAN

Current Address

:

N/A

Match

:

NO

 

 

 

Latest Financial Accounts

:

NO


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

 

 

Other Investigations


we contacted one of the staff from the SC's registered company. She only provided limited information on the SC.


She however refused to disclose information on the SC's number of employees and bankers.


The address provided belongs to the SC's registered company. However it is incomplete.


The staff from the MAC WORLD INDUSTRIES SDN BHD also refused to disclose any information on the SC.



FINANCIAL ANALYSIS

 

 

No latest financial accounts are available at the Registry Office, thus we are not able to comment on the SC's financial performance.

 

 

 

 

 

 

 

Overall financial condition of the SC : N/A

 

 

 

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

74101 : Activities of interior decorators

 

 

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.

 

According 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 2011, the SC is a company, focusing on administration services and offshore trading. Having been in the business for only 2 year, the SC's position in the market is not stable. The SC has yet to build up its own image and market shares.

We regard that the SC's management capability is weak. Without capable management, the SC is unlikely to be successful and often contribute to unacceptable levels of accountability. Weak management can affect productivity, profitability, sales growth and ultimately can result in the failure of a business.

No financial accounts are available for analysis. As such, we are not able to comment on the SC's current financial standing.

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 unfavourable condition, we regard granting credit to the SC to be quite risky. Hence, credit is not recommended.

 

 


FINANCIAL ACCOUNT


No latest financial accounts are available at the Registry Office.


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.13

UK Pound

1

Rs.101.53

Euro

1

Rs.85.41

 

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.