MIRA INFORM REPORT

 

 

Report Date :

11.02.2013

 

IDENTIFICATION DETAILS

 

Name :

KVS INDUSTRIES SDN. BHD.

 

 

Registered Office :

No.12 & 14,Tingkat Kerjasama 4, Tmn.Kerajasama, Bkt.Tengah,Bkt.Mertajam, 14000 Bukit Tengah, Pulau Pinang,

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

13.12.1996

 

 

Com. Reg. No.:

413551-A

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading of Prayer Products

 

 

No. of Employees :

15

 

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 :

Not Complaints

Litigation :

Clear

 

NOTES:

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

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Malaysia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

malaysia - ECONOMIC OVERVIEW

 

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

 

Source : CIA

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

413551-A

COMPANY NAME

:

KVS INDUSTRIES SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

13/12/1996

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

NO.12 & 14,TINGKAT KERJASAMA 4, TMN.KERAJASAMA, BKT.TENGAH,BKT.MERTAJAM, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

12 & 14, TINGKAT KERJASAMA 4, TAMAN KERJASAMA,BKT TENGAH, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-5073776

FAX.NO.

:

04-5073776

CONTACT PERSON

:

VIRACHAMI S/O CHALAYA ( MANAGING DIRECTOR )

INDUSTRY CODE

:

521

PRINCIPAL ACTIVITY

:

TRADING OF PRAYER PRODUCTS

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 680,000.00 DIVIDED INTO
ORDINARY SHARES 680,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 4,785,825 [2011]

NET WORTH

:

MYR 540,401 [2011]

STAFF STRENGTH

:

15 [2013]

BANKER (S)

:

RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

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

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

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

 

The major shareholder(s) of the SC are shown as follows :

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. VACHAMI A/L CHALAYA +

20,LRG.KERJASAMA DUA, TMN KERJASAMA, BKT TENGAH;14000 B.M., MALAYSIA.

560909-07-5131

360,000.00

52.94

MR. MOGANADASS A/L VACHAMI +

7, TINGKAT KERJASAMA 4, TAMAN KERJASAMA, BUKIT TENGAH, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

811217-07-5011

160,000.00

23.53

MS. SAROJA DEVI A/P SUBRAMANIAM +

12 TGKT KERJASAMA 4, TMN KERJASAMA, JLN BKT TENGAH;14000 B.M, MALAYSIA.

611202-07-5178

160,000.00

23.53

 

 

 

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

------

 

 

 

680,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 


DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MR. MOGANADASS A/L VACHAMI

Address

:

7, TINGKAT KERJASAMA 4, TAMAN KERJASAMA, BUKIT TENGAH, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

New IC No

:

811217-07-5011

Date of Birth

:

17/12/1981

Nationality

:

MALAYSIAN

Date of Appointment

:

27/02/2012

 

DIRECTOR 2

 

Name Of Subject

:

MS. SAROJA DEVI A/P SUBRAMANIAM

Address

:

12 TGKT KERJASAMA 4, TMN KERJASAMA, JLN BKT TENGAH;14000 B.M, MALAYSIA.

New IC No

:

611202-07-5178

Date of Birth

:

02/12/1961

Nationality

:

MALAYSIAN

Date of Appointment

:

10/09/2004

 

DIRECTOR 3

 

Name Of Subject

:

MR. VACHAMI A/L CHALAYA

Address

:

20,LRG.KERJASAMA DUA, TMN KERJASAMA, BKT TENGAH;14000 B.M., MALAYSIA.

New IC No

:

560909-07-5131

Date of Birth

:

09/09/1956

Nationality

:

MALAYSIAN

Date of Appointment

:

13/12/1996



MANAGEMENT

 

 

 

1)

Name of Subject

:

VIRACHAMI S/O CHALAYA

 

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

HISHAM & CO.

Auditor' Address

:

44A,TKT.1,JLN.TODAK 2,BDR.SEBERANG JAYA,13800 PRAI, PULAU PINANG, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. SUBRAMANIYAM A/L NARAYANASWAMY

 

New IC No

:

630621-07-5731

 

Address

:

36 LRG PERMAI DUA, BUKIT GAMBIER, 11700 GELUGOR, MALAYSIA.

 

 

 

 

 

2)

Company Secretary

:

MR. LIM SIN CHUAN

 

 

 

 

 

New IC No

:

651023-07-5689

 

Address

:

H-23,TMN FREE SCHOOL, 10460 PULAU PINANG, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

RHB BANK BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

ENCUMBRANCE (S)


ENCUMBRANCE 1

Date of Creation

:

09/01/2001

Description Of Charge

:

N/A

 

Amount Secured

:

RM136,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

Form 40 Dated

Registered and Numbered 1 In The Register of Charges


ENCUMBRANCE 2

Date of Creation

:

22/11/2011

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BERHAD

 

 

Form 40 Dated 25/11/2011

Registered and Numbered 7 In The Register of Charges


ENCUMBRANCE 3

Date of Creation

:

23/08/2012

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BERHAD

 

 

Form 40 Dated 29/08/2012

Registered and Numbered 8 In The Register of Charges


ENCUMBRANCE 4

Date of Creation

:

13/09/2012

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BERHAD

 

 

Form 40 Dated 21/09/2012

Registered and Numbered 9 In The Register of Charges


ENCUMBRANCE 5

Date of Creation

:

24/10/2002

Description Of Charge

:

N/A

 

Amount Secured

:

RM130,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

Form 40 Dated

Registered and Numbered 2 In The Register of Charges


ENCUMBRANCE 6

Date of Creation

:

22/07/2005

Description Of Charge

:

N/A

 

Amount Secured

:

RM300,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

Form 40 Dated

Registered and Numbered 3 In The Register of Charges


ENCUMBRANCE 7

Date of Creation

:

18/06/2008

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

Form 40 Dated

Registered and Numbered 4 In The Register of Charges


ENCUMBRANCE 8

Date of Creation

:

17/11/2009

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BHD

 

 

Form 40 Dated

Registered and Numbered 5 In The Register of Charges


ENCUMBRANCE 9

Date of Creation

:

04/08/2010

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

Form 40 Dated

Registered and Numbered 6 In The Register of Charges



LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES



CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
CHEQUESTELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

PRAYER PRODUCTS

 

 

 

 

 

Total Number of Employees:

YEAR

2013

2010

 

GROUP

N/A

N/A

 

 

 

 

 

 

 

COMPANY

15

13

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


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

The SC sells praying materials.

The SC also undertakes packaging for the products.

 

 

PROJECTS

 

No projects found in our databank

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

045073776

Current Telephone Number

:

04-5073776

Match

:

YES

 

 

 

Address Provided by Client

:

12 & 14, TINGKAT KERJASAMA 4, TAMAN KERJASAMA,BKT TENGAH,14000,BUKIT MERTAJAM,PULAU PINANG.

Current Address

:

12 & 14, TINGKAT KERJASAMA 4, TAMAN KERJASAMA,BKT TENGAH, 14000 BUKIT TENGAH, PULAU PINANG, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 8th February 2013 we contacted one of the staff from the SC and she provided some information on the SC.


 



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

11.59%

]

 

Return on Net Assets

:

Acceptable

[

11.24%

]

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC's management have been efficient in controlling its operating costs. The SC's management had generated acceptable return for its shareholders using its assets.

Liquidity

 

 

 

 

 

 

Current Ratio

:

Acceptable

[

1.06 Times

]

 

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

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

3.88 Times

]

 

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

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the SC : 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

521 : Warehousing and storage

 

 

INDUSTRY :

TRADING

 

 

 


The wholesale and retail trade sector grew 7.1% in the first half of the year 2011 supported by strong consumer spending amid favourable labour market conditions and sustained disposable income. This was reflected in the higher distributive trade index which increased 15.9%, with wholesale and retail trade indices increasing 19.2% and 7.8%, respectively.


It is anticipated that the retail industry will grow 6.0 per cent in the year 2012.


Malaysia's retail sector for 2011 is expected to grow 6 per cent or RM81.59 billion worth of retail sales, similar to the year 2010, due to concerns of high oil prices, declining purchasing power and high cost of doing business. The Middle East and North Africa civil wars have caused the world oil prices to climb. This has led to further rise in the cost of running retail businesses, especially in terms of transportation cost. Many retailers have no choice but to pass the increased cost to end consumers. At the same time, natural disasters (tsunamis, floods, droughts, snow storms, tornadoes and earthquakes) that occurred in all parts of the world has also led to a shortage in the supply of food and raw materials. The phenomenon has pushed retail prices up.In addition, the continual removal of government subsidies since 2010 has pushed inflation upwards. Consequently, rising prices of retail goods contributed to an expectation of moderate performance.


During the first seven months of 2011, other consumption indicators such as imports of consumption goods and credit card spending increased 12.8% and 11.8%, respectively. Sales of motor vehicles declined 3% on account of supply chain disruptions following devastating March 2011 earthquake and tsunami in Japan.


Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.


Meanwhile, the Government has introduced the Retail Shop Transformation (TUKAR) programme. Under this programme, selected large format retailers will assist small retailers to improve their premises and layout which include attractive product display shelves, enhanced lighting and point-of-sales system to manage product inventory,

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1996, the SC is a Private Limited company, focusing on trading of prayer products. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Presently, issued and paid up capital of the SC stand at RM680,000.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a small company, the SC's business operation is supported by 15 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The SC managed to maintain an adequate liquidity level, indicating that the SC has the ability to meet its financial obligations. The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 540,401, the SC should be able to maintain its business in the near terms.


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.


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.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

KVS INDUSTRIES SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

SUMMARY

SUMMARY

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

4,785,825

4,217,399

4,113,423

4,004,491

3,536,740

 

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

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

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

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

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

Total Turnover

4,785,825

4,217,399

4,113,423

4,004,491

3,536,740

Costs of Goods Sold

-

<4,217,399>

-

<4,004,491>

<3,536,740>

 

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

110,785

105,768

85,202

32,288

24,696

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

110,785

105,768

85,202

32,288

24,696

Taxation

<48,126>

<22,325>

<10,186>

<14,943>

<14,987>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

62,659

83,443

75,016

17,345

9,709

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

177,742

94,299

19,283

1,938

<7,771>

 

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

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

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

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

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

As restated

177,742

94,299

19,283

1,938

<7,771>

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

240,401

177,742

94,299

19,283

1,938

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

240,401

177,742

94,299

19,283

1,938

 

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

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

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

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

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

 

 

BALANCE SHEET

 

 

KVS INDUSTRIES SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

889,147

965,933

861,298

624,318

565,895

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

0

-

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

889,147

965,933

861,298

624,318

565,895

CURRENT ASSETS

 

 

 

 

 

TOTAL CURRENT ASSETS

1,747,242

1,584,457

1,428,306

1,245,655

1,075,135

 

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

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

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

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

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

TOTAL ASSET

2,636,389

2,550,390

2,289,604

1,869,973

1,641,030

 

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

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

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

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

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

CURRENT LIABILITIES

 

 

 

 

 

TOTAL CURRENT LIABILITIES

1,650,960

1,651,367

1,503,850

1,482,213

1,288,493

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

96,282

<66,910>

<75,544>

<236,558>

<213,358>

 

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

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

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

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

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

TOTAL NET ASSETS

985,429

899,023

785,754

387,760

352,537

 

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

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

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

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

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

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

300,000

300,000

300,000

100,000

100,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

300,000

300,000

300,000

100,000

100,000

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

240,401

177,742

94,299

19,283

1,938

 

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

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

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

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

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

TOTAL RESERVES

240,401

177,742

94,299

19,283

1,938

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

540,401

477,742

394,299

119,283

101,938

LONG TERM LIABILITIES

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

445,028

421,281

391,455

268,477

250,599

 

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

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

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

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

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

 

985,429

899,023

785,754

387,760

352,537

 

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

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

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

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

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

 

 

FINANCIAL RATIO

 

 

KVS INDUSTRIES SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Net Liquid Assets

96,282

<66,910>

<75,544>

<236,558>

<213,358>

Net Current Assets/(Liabilities)

96,282

<66,910>

<75,544>

<236,558>

<213,358>

Net Tangible Assets

985,429

899,023

785,754

387,760

352,537

Net Monetary Assets

<348,746>

<488,191>

<466,999>

<505,035>

<463,957>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Liabilities

2,095,988

2,072,648

1,895,305

1,750,690

1,539,092

Total Assets

2,636,389

2,550,390

2,289,604

1,869,973

1,641,030

Net Assets

985,429

899,023

785,754

387,760

352,537

Net Assets Backing

540,401

477,742

394,299

119,283

101,938

Shareholders' Funds

540,401

477,742

394,299

119,283

101,938

Total Share Capital

300,000

300,000

300,000

100,000

100,000

Total Reserves

240,401

177,742

94,299

19,283

1,938

LIQUIDITY (Times)

 

 

 

 

 

Current Ratio

1.06

0.96

0.95

0.84

0.83

SOLVENCY RATIOS (Times)

 

 

 

 

 

Liabilities Ratio

3.88

4.34

4.81

14.68

15.10

Assets Backing Ratio

3.28

3.00

2.62

3.88

3.53

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

2.31

2.51

2.07

0.81

0.70

Net Profit Margin

1.31

1.98

1.82

0.43

0.27

Return On Net Assets

11.24

11.76

10.84

8.33

7.01

Return On Capital Employed

11.24

11.76

10.84

8.33

7.01

Return On Shareholders' Funds/Equity

11.59

17.47

19.03

14.54

9.52

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.57

UK Pound

1

Rs.84.25

Euro

1

Rs.71.78

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.