MIRA INFORM REPORT

 

 

Report Date :

01.02.2013

 

IDENTIFICATION DETAILS

 

Name :

FEDERAL IRON WORKS SDN BHD

 

 

Formerly Known As :

FEDERAL IRON WORKS LTD (15/04/1966)

 

 

Registered Office :

3 Jalan Kelulu Satu, Kawasan Perindustrian Bukit Raja Selatan, 40000 Shah Alam, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

11.07.1960

 

 

Com. Reg. No.:

3835-P

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacture & Sale of Zinc Cozted Steel Sheets, Fire Extinguishers, LPG Cylinders & Pre-Painted Galvanized Iron Sheet/Coils

 

 

No. of Employees :

220

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

 

NOTES :

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

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA


 


* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

3835-P

COMPANY NAME

:

FEDERAL IRON WORKS SDN BHD

FORMER NAME

:

FEDERAL IRON WORKS LTD (15/04/1966)

INCORPORATION DATE

:

11/07/1960

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

3 JALAN KELULU SATU, KAWASAN PERINDUSTRIAN BUKIT RAJA SELATAN, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

3, JALAN KELULI SATU, KAWASAN PERINDUSTRIAN BUKIT RAJA SELATAN, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-33431177

FAX.NO.

:

03-33426721

EMAIL

:

fc.kong@fiw.com.my

WEB SITE

:

www.fiw.com.my

CONTACT PERSON

:

LOH MENG KIAT ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

24101

PRINCIPAL ACTIVITY

:

MANUFACTURE & SALE OF ZINC COZTED STEEL SHEETS, FIRE EXTINGUISHERS, LPG CYLINDERS & PRE-PAINTED GALVANIZED IRON SHEET/COILS

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 39,752,679.00 DIVIDED INTO
ORDINARY SHARES 12,127,679 CASH AND 27,625,000 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 224,628,973 [2011]

NET WORTH

:

MYR 250,170,069 [2011]

 

 

 

STAFF STRENGTH

:

220 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

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) manufacture & sale of zinc cozted steel sheets, fire extinguishers, lpg cylinders & pre-painted galvanized iron sheet/coils.

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

(%)

SUMITOMO CORPORATION ASIA PTE LTD

 

XLZ00215076

13,230,000.00

33.28

YEW LIAN PROPERTY & INVESTMENT PTE LTD

 

00005161

12,420,000.00

31.24

AMANAH RAYA BERHAD SKIM AMANAH SAHAM BUMIPUTRA

 

00020283

11,065,179.00

27.84

LIM LAY TIN JENNIE

 

E0473712N

368,750.00

0.93

LIM TECK HOCK DANIEL

 

E09070324H

368,750.00

0.93

LIM TECK LEONG DAVID

 

E2485352E

368,750.00

0.93

LIM POH TIN EILEEN

 

E2817191K

368,750.00

0.93

LIM SIOH TIN AMY

 

E2847065E

368,750.00

0.93

LIM KWEE TIN ESTHER

 

S01535911

368,750.00

0.93

GOH GEOK KHIM +

10, ASTRID HILL, 1026, FOREIGN, SINGAPORE.

0797052H

300,000.00

0.75

LIM CHIN HIN

 

000000310

57,000.00

0.14

SINNEO SDN. BHD.

SUITE 2303, WISMA TUN SAMBANTHAN, 2, JALAN SULTAN SULAIMAN, 23RD FLOOR, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

30188

50,000.00

0.13

GOH GEOK BENG

 

N1014377

30,000.00

0.08

ONG SU PIN

1 RAMSGATE ROAD, 1543, SINGAPORE.

1375851D

30,000.00

0.08

GOH GEOK LOO +

1, WESTLAKE AVENUE, 2057, SINGAPORE.

S1042589A

30,000.00

0.08

GOH GEOK CHUAN +

10 EVERGREEN AVENUE, 468926, FOREIGN, SINGAPORE.

0797016A

30,000.00

0.08

GOH GEOK SOO

25 DELAMERE AVENUE, SPRINGFIELD, 5062, SOUTH AUSTRALIA.

T564176

30,000.00

0.08

GOH GEOK LING +

37 JALAN KAMPONG CHANTEK, 588615, SINGAPORE.

S0040556F

30,000.00

0.08

LIM CHEE NEO

1RAMSGATE ROAD, 1543, SINGAPORE.

02800243J

27,000.00

0.07

GOH GEOK LAN

 

0386549E

15,000.00

0.04

GOH GEOK SIEW

 

T39172O

15,000.00

0.04

KHOR GEOK LIAN

21 TRAMINER WAY, AULDANA SOUTH, 5072, AUSTRALIA.

L8473342

15,000.00

0.04

HSU CHIA CHI

35 SIGLAP BANK, 456244, SINGAPORE.

1190786E

15,000.00

0.04

GOH GEOK BENG @ TAN GEOK ENG

6, JALAN TUA KONG, 04-08, CRESCENDO PARK, 457269, SINGAPORE.

S07970571

15,000.00

0.04

GOH GEOK BEE

84 THOMSON RIDGE, 2057, SINGAPORE.

0048318D

15,000.00

0.04

WOO HENG LI HENY (DECEASED)

 

00009532

14,250.00

0.04

WOO PEI LI PERRY

 

1163482F

14,250.00

0.04

WOO BIH LI

 

S002582F

14,250.00

0.04

WOO TOONG LI

 

S0157474D

14,250.00

0.04

HSU HWEI FEN

 

0145400E

14,000.00

0.04

HSU HWEI FONG

1 FRANKEL CLOSE, 458115, SINGAPORE.

1225874G

14,000.00

0.04

HSU CHIA JONG

79 FARRER DRIVE, 10-2, 259283, SINGAPORE.

1522233F

14,000.00

0.04

EDWIN TAN TIAT HENG

 

1745898A

7,500.00

0.02

KAREN TAN TIAT JOO

 

S1654261Z

7,500.00

0.02

MS. LIM CHENG NEO

D-4-5 SRI KENNY CONDOMINIUM, NO 28 JLN TUN ISMAIL, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

210422-71-5192

7,000.00

0.02

 

 

 

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

------

 

 

 

39,752,679.00

100.00

 

 

 

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

=====


+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

YUKIO SHIOZAWA

Address

:

13A-4, IZEN KIARA 2 CONDO, 1 JALAN KIARA, MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

TH5811522

 

 

 

Date of Birth

:

02/10/1957

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

21/06/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

OTOMICHI YANO

Address

:

407, 9-1 TSUTUJIGAOKA AOBA-KU, YOKOHAMA CITY, YOKOHAMA, FOREIGN, JAPAN.

IC / PP No

:

TH3386389

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

07/05/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

TOSHITAKA SAKATA

Address

:

UNIT 1-06-3, SAUJANA VILLA, SAUJANA RESORT, SEKSYEN U2, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

TH1874637

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

02/04/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MS. KHUZAIMAH BINTI BASRAN @ TOHA

Address

:

65, JALAN SUADAMAI 2/3, BANDAR TUN HUSSEIN ONN, 43200 KAJANG, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

680122-01-5270

Date of Birth

:

22/01/1968

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

19/03/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

MR. LOH MENG KIAT

Address

:

2 JALAN SS 24/24, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

390414-71-5337

Date of Birth

:

14/04/1939

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/01/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

GOH GEOK LOO

Address

:

1, WESTLAKE AVENUE, 2057, FOREIGN, SINGAPORE.

IC / PP No

:

1042589A

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

16/11/1981

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 7

 

Name Of Subject

:

KEITA HORAI

Address

:

3-290-4-902, MATSUGAOKA, NAGAREYAMA, CHIBA, PO: 2700141, FOREIGN, JAPAN.

IC / PP No

:

TK2650774

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

21/06/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 8

 

Name Of Subject

:

GOH GEOK LING

Address

:

37 JALAN KAMPONG CHANTEK, 588615, SINGAPORE.

IC / PP No

:

S0040556F

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

25/01/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 9

 

Name Of Subject

:

GOH GEOK CHUAN

Address

:

10 EVERGREEN AVENUE, 468926, FOREIGN, SINGAPORE.

IC / PP No

:

0797016A

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

23/10/1961

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 10

 

Name Of Subject

:

GOH GEOK KHIM

Address

:

10, ASTRID HILL, 1026, FOREIGN, SINGAPORE.

IC / PP No

:

0797052H

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

07/04/1964

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

LOH MENG KIAT

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

TASLIMAN

 

Position

:

ADMIN MANAGER

 

 

 

 

 

3)

Name of Subject

:

STEPHENIE SIEW

 

Position

:

FINANCE MANAGER

 

 

 

 

 

4)

Name of Subject

:

KONG FOO CHEE

 

Position

:

MARKETING MANAGER

 

 

 

 

 

5)

Name of Subject

:

LOW HUA KEANG

 

Position

:

PRODUCTION MANAGER

 

 

 

 

 

AUDITOR

 

Auditor

:

FOLKS DFK & CO

Auditor' Address

:

WISMA TUN SAMBANTHAN, 2 JALAN SULTAN SULAIMAN, 12TH FLOOR, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHIEW LIYAH

 

 

 

 

 

New IC No

:

760106-14-5446

 

Address

:

NO.12 JALAN MUHIBBAH 8, TAMAN MUHIBBAH, 43300 BALAKONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

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

 

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

:

YES

Percentage

:

60%

Overseas

:

YES

Percentage

:

40%

Import Countries

:

JAPAN,TAIWAN




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

[

X

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

90%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

10%

Export Market

:

AUSTRALIA, SINGAPORE, ASIA

Credit Term

:

30 - 60 DAYS,AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES,TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

STEEL PRODUCTS

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2002

 

 

 

 

Competitor(s)

:

AMSTEEL MILLS SDN BHD
ANN JOO STEEL BERHAD
MEGASTEEL SDN. BHD.
PERWAJA STEEL SDN BHD
POSCO-MALAYSIA SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN IRON AND STEEL INDUSTRY FEDERATION (MISIF)

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

Ownership of premises

:

OWNED

 

Factory Size

:

21 ACRES

 

Production Capacity

:

ZINC COATED STEEL COILS: 200,000 METRICTON AND PREPAINTED ZINC COATED STEEL:60,000 METRIC TON PER YEAR

 

Shifts

:

3

 

 

 

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

2008

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

220

220

250

300

196

206

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacture & sale of zinc cozted steel sheets, fire extinguishers, lpg cylinders & pre-painted galvanized iron sheet/coils.

The SC produces a wide range of products including galvanised iron sheets, roofing sheets, LPG cylinders, hot dipped galvanish coils & sheets (prepainted), zinc coated steel coils & sheets and etc.



In galvanizing process the SC process plain coil according to it foam. After that the coil form undergo corugating process and will be cut according to its clients requirements.



The SC's products are mainly used in the mechanical, electrical and construction industry especially for roofing and cladding work.



The SC has a modernised factory equipped with continuous production lines. The technology originated from USA and the SC's factory is known as the "Non-Oxidised Furnace Plant".


PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

0333431177

Current Telephone Number

:

03-33431177

Match

:

YES

 

 

 

Address Provided by Client

:

3, JALAN KELULI SATU, KAWASAN PERINDUSTRIAN BUKIT RAJA SELATAN,40000,SHAH ALAM,SELANGOR.

Current Address

:

3, JALAN KELULI SATU, KAWASAN PERINDUSTRIAN BUKIT RAJA SELATAN, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the Accounts Department. She provided some information on the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

5.50%

]

 

Return on Net Assets

:

Unfavourable

[

6.72%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

118 Days

]

 

Debtor Ratio

:

Acceptable

[

57 Days

]

 

Creditors Ratio

:

Favourable

[

15 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The SC's management was quite efficient in handling its debtors. The SC's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

9.36 Times

]

 

Current Ratio

:

Favourable

[

15.79 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was nil as it did not pay any interest during the year. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the SC : FAIR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 



 

 

INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

 

 

 

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

24101 : Production of pig iron and spiegeleisen in pigs, blocks or other primary forms

 

 

INDUSTRY :

MANUFACTURING

 

 

 


The manufacturing sector is expected to be driven by higher value-added activities in Malaysia.The GDP growth for first quarter 2012 indicating manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia recorded a 12% jump in approved investments in the manufacturing sector in the first quarter of 2012 compared with the corresponding period 2011. According to Federation of Malaysian Manufacturers (FMM), manufacturing sector expected to improve in the third quarter 2012 despite concerns over external developments and the rising cost of production.


The rubber products sub-sector is expected to remain resilient supported by continuous improvements in medical and healthcare standards in emerging markets as well as demand from niche markets such as the oil and gas sector for rubber hoses. Malaysia rubber exports are forecast to grow at 10%, at the end of 2012 driven by global demand for medical gloves as well as rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber shipments in Malaysia due to hospitals and clinics place more intrest on rising health and hygiene awareness.


The 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.


Chemical production are expected to show 6.2% in year 2012 and 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.


According to Malaysian Iron and Steel Industry Federation, first half of 2012 would remain weak for the local steel industry due to eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries. At first quarter 2012, the average local steel price is trading atRM2,300 per tonne compared with the average international price of US$740 (RM2,331) per tonne.


According to the Department of Statistics, Malaysia during the first quarter 2012, the manufacturing output increased due to activities in major sub-sectors such as petroleum, chemical, rubber and plastic products (10.5 %), and non-metallic mineral products, basic metal and fabricated metal products (3.9 %). Meanwhile, it's also announced that the manufacturing sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared with RM47.7 billion in May 2011. The Industrial Production Index (IPI ) increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %).


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 as solar 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

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1960, the SC is a Private Limited company, focusing on manufacture & sale of zinc cozted steel sheets, fire extinguishers, lpg cylinders & pre-painted galvanized iron sheet/coils. The SC has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having strong support from its shareholder has enabled the SC to remain competitive despite the challenging business environment. The SC is a large entity with strong capital position. We are confident with the SC's business and its future growth prospect.


Apart from supplying its products to the local market, the SC also exports to overseas countries. Its ability to penetrate into the global market has benefited the SC in terms of higher profitability and well diversified its business risk. Hence, better growth prospect can be expected. The SC is a fairly large and rapidly growing company with over 220 staff in its operations 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. To improve its quality products and services, we noted that the SC has received a number of certifications & awards. This will improve the customer's confidence level to the SC.


The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 250,170,069, 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.


Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


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 promptly.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

FEDERAL IRON WORKS 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

GROUP

GROUP

GROUP

GROUP

GROUP

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

224,628,973

229,317,435

206,699,004

238,579,093

185,083,267

Other Income

1,831,349

-

-

-

-

 

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

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

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

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

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

Total Turnover

226,460,322

229,317,435

206,699,004

238,579,093

185,083,267

Costs of Goods Sold

<202,695,934>

<195,011,284>

<174,726,040>

<214,810,774>

<162,782,238>

 

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

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

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

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

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

Gross Profit

23,764,388

34,306,151

31,972,964

23,768,319

22,301,029

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

17,366,484

33,836,412

41,199,397

25,375,976

30,968,131

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

17,366,484

33,836,412

41,199,397

25,375,976

30,968,131

Taxation

<3,605,124>

<4,836,784>

<7,569,074>

<6,138,754>

<5,231,685>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

13,761,360

28,999,628

33,630,323

19,237,222

25,736,446

Minority interests

-

-

<2,307,992>

<180,512>

32,723

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

13,761,360

28,999,628

31,322,331

19,056,710

25,769,169

 

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

13,761,360

28,999,628

31,322,331

19,056,710

25,769,169

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

211,894,946

212,965,888

187,246,459

175,543,995

152,502,933

Prior year adjustment

-

<256,061>

-

-

-

 

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

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

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

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

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

As restated

211,894,946

212,709,827

187,246,459

175,543,995

152,502,933

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

225,656,306

241,709,455

218,568,790

194,600,705

178,272,102

- General

-

-

360,000

-

3,075,784

DIVIDENDS - Ordinary (paid & proposed)

<5,962,902>

<29,814,509>

<5,962,902>

<7,354,246>

<5,803,891>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

219,693,404

211,894,946

212,965,888

187,246,459

175,543,995

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

-

-

4,041

5,023

5,665

 

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

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

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

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

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

 

-

-

4,041

5,023

5,665

 

 

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

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

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

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

 

 

 

 

BALANCE SHEET

 

 

FEDERAL IRON WORKS SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

58,024,867

59,660,353

55,676,282

48,904,589

35,789,015

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Associated companies

32,382,245

5,538,237

5,538,237

27,266,870

27,300,350

Investments

46,000

46,000

46,000

46,000

46,000

Deferred assets

-

-

-

-

519,825

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

32,428,245

5,584,237

5,584,237

27,312,870

27,866,175

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Deferred/Expenditure carried forward

251,045

-

-

-

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

251,045

-

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

90,704,157

65,244,590

61,260,519

76,217,459

63,655,190

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

72,925,358

79,022,005

71,048,909

75,656,788

62,497,417

Trade debtors

34,800,368

34,098,535

23,740,877

19,360,586

17,210,763

Other debtors, deposits & prepayments

2,093,192

5,649,197

4,045,510

2,947,178

5,770,293

Short term deposits

39,000,000

41,800,000

79,000,000

59,000,000

62,500,000

Short term loan to financial institutions

21,692,262

-

-

-

-

Amount due from associated companies

3,396,926

3,812,721

3,233,699

3,482,912

5,556,307

Cash & bank balances

4,180,106

3,123,324

5,364,998

5,388,358

9,417,849

Others

990,208

237,356

791,901

1,545,212

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

179,078,420

167,743,138

187,225,894

167,381,034

162,952,629

 

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

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

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

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

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

TOTAL ASSET

269,782,577

232,987,728

248,486,413

243,598,493

226,607,819

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

8,372,849

3,641,963

15,936,283

6,834,061

2,445,905

Other creditors & accruals

2,969,076

4,037,360

6,071,073

4,773,799

2,973,157

Provision for taxation

-

-

-

-

1,212,182

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

11,341,925

7,679,323

22,007,356

11,607,860

6,631,244

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

167,736,495

160,063,815

165,218,538

155,773,174

156,321,385

 

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

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

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

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

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

TOTAL NET ASSETS

258,440,652

225,308,405

226,479,057

231,990,633

219,976,575

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

39,752,679

39,752,679

39,752,679

39,752,679

39,752,679

 

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

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

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

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

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

TOTAL SHARE CAPITAL

39,752,679

39,752,679

39,752,679

39,752,679

39,752,679

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Capital reserve

-

-

-

1,263,574

1,263,574

Exchange equalisation/fluctuation reserve

-

-

-

<2,354,946>

<2,081,840>

Retained profit/(loss) carried forward

219,693,404

211,894,946

212,965,888

187,246,459

175,543,995

Others

<9,276,014>

<33,568,911>

<31,922,479>

-

-

 

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

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

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

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

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

TOTAL RESERVES

210,417,390

178,326,035

181,043,409

186,155,087

174,725,729

 

 

 

 

 

 

MINORITY INTEREST

-

-

-

808,293

627,781

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

250,170,069

218,078,714

220,796,088

226,716,059

215,106,189

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Deferred taxation

3,500,000

2,350,000

832,771

254,072

-

Retirement benefits provision

4,770,583

4,879,691

4,850,198

5,020,502

4,870,386

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

8,270,583

7,229,691

5,682,969

5,274,574

4,870,386

 

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

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

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

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

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

 

258,440,652

225,308,405

226,479,057

231,990,633

219,976,575

 

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

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

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

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

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

 

 

 

 

 

 

Contingent Liabilities

4,960,400

2,724,740

1,123,050

1,378,550

3,216,850

 

 

 

FINANCIAL RATIO

 

 

FEDERAL IRON WORKS SDN BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

43,180,106

44,923,324

84,364,998

64,388,358

71,917,849

Net Liquid Funds

43,180,106

44,923,324

84,364,998

64,388,358

71,917,849

Net Liquid Assets

94,811,137

81,041,810

94,169,629

80,116,386

93,823,968

Net Current Assets/(Liabilities)

167,736,495

160,063,815

165,218,538

155,773,174

156,321,385

Net Tangible Assets

258,189,607

225,308,405

226,479,057

231,990,633

219,976,575

Net Monetary Assets

86,540,554

73,812,119

88,486,660

74,841,812

88,953,582

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

0

0

0

Total Liabilities

19,612,508

14,909,014

27,690,325

16,882,434

11,501,630

Total Assets

269,782,577

232,987,728

248,486,413

243,598,493

226,607,819

Net Assets

258,440,652

225,308,405

226,479,057

231,990,633

219,976,575

Net Assets Backing

250,170,069

218,078,714

220,796,088

226,716,059

215,106,189

Shareholders' Funds

250,170,069

218,078,714

220,796,088

226,716,059

215,106,189

Total Share Capital

39,752,679

39,752,679

39,752,679

39,752,679

39,752,679

Total Reserves

210,417,390

178,326,035

181,043,409

186,155,087

174,725,729

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

3.81

5.85

3.83

5.55

10.85

Liquid Ratio

9.36

11.55

5.28

7.90

15.15

Current Ratio

15.79

21.84

8.51

14.42

24.57

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

118

126

125

116

123

Debtors Ratio

57

54

42

30

34

Creditors Ratio

15

7

33

12

5

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

0.00

Liabilities Ratio

0.08

0.07

0.13

0.07

0.05

Times Interest Earned Ratio

0.00

0.00

10,196.35

5,052.96

5,467.57

Assets Backing Ratio

6.49

5.67

5.70

5.84

5.53

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

7.73

14.76

19.93

10.64

16.73

Net Profit Margin

6.13

12.65

15.15

7.99

13.92

Return On Net Assets

6.72

15.02

18.19

10.94

14.08

Return On Capital Employed

6.71

15.02

18.19

10.90

14.04

Return On Shareholders' Funds/Equity

5.50

13.30

14.19

8.41

11.98

Dividend Pay Out Ratio (Times)

0.43

1.03

0.19

0.39

0.23

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

4,960,400

2,724,740

1,123,050

1,378,550

3,216,850



 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.29

UK Pound

1

Rs.84.22

Euro

1

Rs.72.23

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.