MIRA INFORM REPORT

 

 

Report Date :

20.02.2013

 

IDENTIFICATION DETAILS

 

Name :

KILANG RANTAI S.A. SDN BHD.

 

 

Registered Office :

2440,Lorong Perusahaan 10, Perai Industrial Estate, 13600 Prai, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

30.04.1984

 

 

Com. Reg. No.:

118880-W

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing of Motor Cycle Chains

 

 

No. of Employees :

60

 

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

(31.03.2012)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

malaysia - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. 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.

:

118880-W

COMPANY NAME

:

KILANG RANTAI S.A. SDN BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

30/04/1984

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

2440,LORONG PERUSAHAAN 10, PERAI INDUSTRIAL ESTATE, 13600 PRAI, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

2440, LORONG PERUSAHAAN 10, PRAI INDUSTRIAL ESTATE, 13600 PRAI, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-3907841

FAX.NO.

:

04-3991440

EMAIL

:

KRSA@PD.JARING.MY

WEB SITE

:

WWW.KILANGRANTAI.COM

CONTACT PERSON

:

LEE THIAN CHAI ( MANAGING DIRECTOR )

INDUSTRY CODE

:

29300

PRINCIPAL ACTIVITY

:

MANUFACTURING OF MOTOR CYCLE CHAINS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,250,000.00 DIVIDED INTO
ORDINARY SHARES 2,250,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 263,539,208 [2011]

NET WORTH

:

MYR 98,721,557 [2011]

STAFF STRENGTH

:

60 [2013]

BANKER (S)

:

HSBC BANK MALAYSIA BHD
MALAYAN BANKING BHD
RHB BANK BHD
SIME BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MATURE

 

 

 

 

 

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) manufacturing of motor cycle chains.

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. LEE THIAN CHAI +

11A LEBUH KURAU 11, TMN. CHAI LENG, 13700 PERAI, PULAU PINANG, MALAYSIA.

601004-01-6151

771,429.00

34.29

MR. ARSHAD BIN MD.ISA +

161,PENKALAN BANGOR, 13200 KEPALA BATAS, SEBERANG PRAI, MALAYSIA.

510428-07-5231

675,000.00

30.00

TARUNO SEMBODO (DECEASED)

 

00009246

270,000.00

12.00

T C LEE & G SDN. BHD.

51-13-A, MENARA BHL BANK, JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

687877

225,000.00

10.00

AGUS HARTONO +

JLN KERTAJAYA INDAH, BLK F/2, 241 SURABAYA, EAST JAWA, INDONESIAN.

E251942

180,000.00

8.00

MR. LEE CHENG TEE

197 JALAN TUNG YEN, 72000 KUALA PILAH, N.SEMBILAN, MALAYSIA.

630620-05-5827

128,571.00

5.71

 

 

 

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

------

 

 

 

2,250,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

The SC interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Company

(%)

As At

 

KILANG SPROCKET S.A. SDN BHD

51

31/12/2010



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

TAN TJIE THENG

Address

:

J1 PETOLONGAN 20, SEMARANG, INDONESIA

IC / PP No

:

R025670

Nationality

:

MALAYSIAN

Date of Appointment

:

12/04/2005

 

DIRECTOR 2

 

Name Of Subject

:

AGUS HARTONO

Address

:

JALAN KERTAJAYA INDAH, BLOK F 11/2, NO. 214, SURABAYA, INDONESIA

IC / PP No

:

V829888

Nationality

:

INDONESIAN

Date of Appointment

:

03/03/1998

 

DIRECTOR 3

 

Name Of Subject

:

MR. ARSHAD BIN MD.ISA

Address

:

161,PENKALAN BANGOR, 13200 KEPALA BATAS, SEBERANG PRAI, MALAYSIA.

New IC No

:

510428-07-5231

Date of Birth

:

28/04/1951

Nationality

:

MALAYSIAN

 

DIRECTOR 4

 

Name Of Subject

:

MR. LEE THIAN CHAI

Address

:

11A LEBUH KURAU 11, TMN. CHAI LENG, 13700 PERAI, PULAU PINANG, MALAYSIA.

New IC No

:

601004-01-6151

Date of Birth

:

04/10/1960

Nationality

:

MALAYSIAN

 


MANAGEMENT

 

 

 

1)

Name of Subject

:

LEE THIAN CHAI

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

TAN THIAN SIONG

 

Position

:

ACCOUNT MANAGER

 

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

GRANT THORNTON

Auditor' Address

:

51-8-A, MENARA BHL BANK, JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. LAI WOOI PING

 

New IC No

:

650602-02-5163

 

Address

:

7, GERBANG MIDLANDS, 10250 GEORGETOWN, PULAU PINANG, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

2)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

3)

Name

:

RHB BANK BHD

 

 

 

 

 

4)

Name

:

SIME 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

:

10/09/1987

Description Of Charge

:

N/A

 

Amount Secured

:

RM400,000.00

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 2

Date of Creation

:

08/09/1990

Description Of Charge

:

N/A

 

Amount Secured

:

RM670,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED MALAYAN BANKING CORP BHD

 

 

Form 40 Dated

Registered and Numbered 8 In The Register of Charges


ENCUMBRANCE 3

Date of Creation

:

04/11/1986

Description Of Charge

:

N/A

 

Amount Secured

:

MYR800,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYSIAN INDUSTRIAL FINANCE BHD

 

 

Form 40 Dated 24/11/1986

Registered and Numbered 1 In The Register of Charges


ENCUMBRANCE 4

Date of Creation

:

02/08/1993

Description Of Charge

:

N/A

 

Amount Secured

:

MYR400,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED MALAYAN BANKING CORPORATION BERHAD

 

 

Form 40 Dated 03/09/1993

Registered and Numbered 10 In The Register of Charges


ENCUMBRANCE 5

Date of Creation

:

02/08/1993

Description Of Charge

:

N/A

 

Amount Secured

:

MYR400,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BERHAD

 

 

Form 40 Dated 03/09/1993

Registered and Numbered 11 In The Register of Charges


ENCUMBRANCE 6

Date of Creation

:

12/05/1994

Description Of Charge

:

N/A

 

Amount Secured

:

MYR1,050,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED MALAYAN BANKING CORP BHD

 

 

Form 40 Dated 20/05/1994

Registered and Numbered 13 In The Register of Charges


ENCUMBRANCE 7

Date of Creation

:

06/03/1995

Description Of Charge

:

N/A

 

Amount Secured

:

MYR1,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED MALAYAN BANKING CORP BHD

 

 

Form 40 Dated 28/06/1995

Registered and Numbered 15 In The Register of Charges


ENCUMBRANCE 8

Date of Creation

:

19/12/1995

Description Of Charge

:

N/A

 

Amount Secured

:

MYR3,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED MALAYAN BANKING CORP BHD

 

 

Form 40 Dated 11/04/1996

Registered and Numbered 16 In The Register of Charges


ENCUMBRANCE 9

Date of Creation

:

19/12/1995

Description Of Charge

:

N/A

 

Amount Secured

:

MYR1,900,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED MALAYAN BANKING CORP BHD

 

 

Form 40 Dated 11/04/1996

Registered and Numbered 17 In The Register of Charges


ENCUMBRANCE 10

Date of Creation

:

19/12/1995

Description Of Charge

:

N/A

 

Amount Secured

:

MYR1,900,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BERHAD

 

 

Form 40 Dated 11/04/1996

Registered and Numbered 18 In The Register of Charges


ENCUMBRANCE 11

Date of Creation

:

02/01/1987

Description Of Charge

:

N/A

 

Amount Secured

:

MYR800,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYSIA INDUSTRIAL FINANCE BHD

 

 

Form 40 Dated 21/01/1987

Registered and Numbered 2 In The Register of Charges


ENCUMBRANCE 12

Date of Creation

:

05/06/1996

Description Of Charge

:

N/A

 

Amount Secured

:

MYR1,650,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BHD

 

 

Form 40 Dated 12/10/1996

Registered and Numbered 20 In The Register of Charges


ENCUMBRANCE 13

Date of Creation

:

19/06/1997

Description Of Charge

:

N/A

 

Amount Secured

:

MYR3,080,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

SIME BANK BHD

 

 

Form 40 Dated 01/07/1997

Registered and Numbered 21 In The Register of Charges


ENCUMBRANCE 14

Date of Creation

:

12/03/1998

Description Of Charge

:

N/A

 

Amount Secured

:

MYR1,350,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD

 

 

Form 40 Dated 10/04/1998

Registered and Numbered 23 In The Register of Charges


ENCUMBRANCE 15

Date of Creation

:

03/02/2004

Description Of Charge

:

N/A

 

Amount Secured

:

MYR3,360,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BERHAD

 

 

Form 40 Dated 19/05/2004

Registered and Numbered 24 In The Register of Charges


ENCUMBRANCE 16

Date of Creation

:

03/02/2004

Description Of Charge

:

N/A

 

Amount Secured

:

MYR100,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BERHAD

 

 

Form 40 Dated 19/05/2004

Registered and Numbered 25 In The Register of Charges


ENCUMBRANCE 17

Date of Creation

:

21/07/1987

Description Of Charge

:

N/A

 

Amount Secured

:

MYR800,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD

 

 

Form 40 Dated 18/08/1987

Registered and Numbered 3 In The Register of Charges


ENCUMBRANCE 18

Date of Creation

:

08/09/1990

Description Of Charge

:

N/A

 

Amount Secured

:

MYR600,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED MALAYAN BANKING CORPBHD

 

 

Form 40 Dated 08/11/1990

Registered and Numbered 5 In The Register of Charges


ENCUMBRANCE 19

Date of Creation

:

08/09/1990

Description Of Charge

:

N/A

 

Amount Secured

:

MYR600,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BERHAD

 

 

Form 40 Dated 08/11/1990

Registered and Numbered 6 In The Register of Charges


ENCUMBRANCE 20

Date of Creation

:

08/09/1990

Description Of Charge

:

N/A

 

Amount Secured

:

MYR670,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED MALAYAN BANKING CORPBHD

 

 

Form 40 Dated 08/11/1990

Registered and Numbered 7 In The Register of Charges


ENCUMBRANCE 21

Date of Creation

:

31/12/1992

Description Of Charge

:

N/A

 

Amount Secured

:

MYR1,500,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD

 

 

Form 40 Dated 03/05/1993

Registered and Numbered 9 In The Register of Charges


ENCUMBRANCE 22

Date of Creation

:

12/05/1994

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,050,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED MALAYAN BANKING CORP BHD

 

 

Form 40 Dated

Registered and Numbered 12 In The Register of Charges


ENCUMBRANCE 23

Date of Creation

:

06/03/1995

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED MALAYAN BANKING CORP BHD

 

 

Form 40 Dated

Registered and Numbered 14 In The Register of Charges


ENCUMBRANCE 24

Date of Creation

:

19/12/1995

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

RM3,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

UNITED MALAYAN BANKING CORP BHD

 

 

Form 40 Dated

Registered and Numbered 19 In The Register of Charges


ENCUMBRANCE 25

Date of Creation

:

19/06/1997

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

RM3,080,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

SIME BANK BHD

 

 

Form 40 Dated

Registered and Numbered 22 In The Register of Charges


ENCUMBRANCE 26

Date of Creation

:

18/09/2007

Description Of Charge

:

N/A

 

Amount Secured

:

RM8,100,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

RHB BANK BHD

 

 

Form 40 Dated

Registered and Numbered 26 In The Register of Charges


ENCUMBRANCE 27

Date of Creation

:

19/12/2008

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

 

 

Form 40 Dated

Registered and Numbered 27 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


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

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

MIDDLE EAST

EUROPE

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
CHEQUESTELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

MOTORCYCLE, CHAIN, BICYCLE CHAIN AND INDUSTRIAL CHAIN

 

 

 

Award

:

1 ) ENTERPRISE 50 AWARD Year :1999

 

 

 

 

Certification of Products

:

1 ) MS 996:PT. 1:1985(P)

 

 

 

 

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2012

2011

2010

2009

 

GROUP

N/A

200

200

200

200

 

 

 

 

COMPANY

60

50

60

53

60

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing of motor cycle chains.

The SC is pioneer in roller chain industry having most modern infrastructures and state of the art machineries.

The core business of SC is manufacturing of motorcycle chain, bicycle chain and industrial chain. Most of the chains produced at SC carry the renowned house brand RKM or SSS.

Some of the products are including Silent Chain, Roller Chain, O-ring Chain, Timing Chain, Heavy Duty Chain, Motorcross Racing Chain, Industrial Chain, Conveyor Chain, Bicycle Chain, Motorcycle Sprockets, Aluminium Racing Sprockets, Aluminium Rim and others.

Besides that the SC has established itself as a leader and successful manufacturer in the roller chain industry by supplying its products throughout whole Malaysia and Overseas.

The SC covers majority of the OEM market (HONDA, YAMAHA, SUZUKI, KAWASAKI and MODENAS)

The SC produces the chain according to its customers' orders.


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

:

04-3907841

Match

:

N/A

Address Provided by Client

:

2440, LORONG PERUSAHAAN 10, PRAI INDUSTRIAL ESTATE,13600,PRAI,PULAU PINANG.

Current Address

:

2440, LORONG PERUSAHAAN 10, PRAI INDUSTRIAL ESTATE, 13600 PRAI, PULAU PINANG, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 14th 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

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

11.44%

]

 

Return on Net Assets

:

Acceptable

[

13.75%

]

 

 

 

 

 

 

 

 

The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Current Ratio

:

Acceptable

[

1.34 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

[

1.44 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the SC's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the SC's profit margin. 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 : STABLE

 

 

 

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

29300 : Manufacture of parts and accessories for motor vehicles

 

 

INDUSTRY :

MOTOR VECHICLE


According to the Malaysian Automotive Association (MAA),the total industry volume (TIV) for first half 2012 was 301,224 units against 297,203 of first half 2011. This is an increase of 1.4% compared to first half 2012.The implimentation of the Bank Negara's guidelines on responsible financing practices from 1st January 2012 coused a slowdown in new vehicle purchase in first quarter 2012. However the market faced growth since April 2012 due to adjustment to the stricter requirements of the hire purchase loans application process.


Sales of passenger vehicles in the first half 2012 decreaced by a very small margin of 0.8% to 250,208 units compared to 252,200 units at the first half 2011. The decreace caused by lower prodcution volume of the passenger cars due to Thailands flood and distruction in Japanese supply chain. Sales of comercial vehicles in the first half 2012 increased by 50.3% to 31 852 units compared to 21,199 units at the first half 2012.


The TIV for second half 2012 forcasted 615 000 units against 600 123 of second half 2011. This is an increase of 2.5% compared to second half 2011. Sales of passenger vehicles in the second half 2012 forcasted increase by 2.2% to 547 000 units compared to 535113 units at the second half 2011. While sales of comercial vehicles in the second half 2012 forcasted to increase by 4.6% to 68 000 units compared to 65 010 units at the second half 2012.


Second half of 2012 could be challeging , where the world economy faces significants challenges due to the eurozone crisis and expected to slow down for the second half 2012 where would affect customer spending trend. But the government incentives towards robust motor vechicle industry expected to rose in the end of 2012 due to positif customer sentiment, the introdution of new models of vechiles, a longer working month and the extension of tax incentives for hybrids and electric vehicles to December 2013 under Budget 2012.

 

 

OVERALL INDUSTRY OUTLOOK : Mature



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1984, the SC is a Private Limited company, focusing on manufacturing of motor cycle chains. 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. With an adequate share capital, the SC has the potential of expanding its business in future. The business position much depend on directors abilities.


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 moderate size company, the SC has a total workforce of 60 employees in its business 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.


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 98,721,557, 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 has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the SC's growth prospect is very much depends on its capacity in sustaining its performance in the market.


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)

KILANG RANTAI S.A. 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

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

263,539,208

187,223,621

116,664,502

123,744,402

92,150,956

Other Income

-

1,816,624

2,736,369

-

-

 

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

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

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

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

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

Total Turnover

263,539,208

189,040,245

119,400,871

123,744,402

92,150,956

Costs of Goods Sold

-

<152,789,021>

<103,807,715>

-

-

 

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

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

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

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

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

Gross Profit

-

36,251,224

15,593,156

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

17,688,566

22,242,591

7,705,943

8,108,144

8,426,127

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED COMPANIES

-

1,045,052

547,523

<258,201>

<71,627>

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

17,688,566

23,287,643

8,253,466

7,849,943

8,354,500

Taxation

<1,955,598>

<2,839,700>

<816,570>

<663,091>

<349,872>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

15,732,968

20,447,943

7,436,896

7,186,852

8,004,628

Minority interests

<4,439,294>

<2,766,111>

<1,017,142>

<760,014>

<512,731>

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

11,293,674

17,681,832

6,419,754

6,426,838

7,491,897

 

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

11,293,674

17,681,832

6,419,754

6,426,838

7,491,897

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

67,525,368

50,968,536

46,798,782

42,621,944

37,380,047

 

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

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

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

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

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

As restated

67,525,368

50,968,536

46,798,782

42,621,944

37,380,047

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

78,819,042

68,650,368

53,218,536

49,048,782

44,871,944

DIVIDENDS - Ordinary (paid & proposed)

<1,125,000>

<1,125,000>

<2,250,000>

<2,250,000>

<2,250,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

77,694,042

67,525,368

50,968,536

46,798,782

42,621,944

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

-

9,225,582

1,018,526

946,883

520,345

 

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

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

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

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

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

 

-

9,225,582

1,018,526

946,883

520,345

 

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

KILANG RANTAI S.A. SDN BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

90,727,070

73,639,472

52,384,914

48,555,312

40,738,829

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Associated companies

-

921,054

1,817,606

2,365,129

2,556,682

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

921,054

1,817,606

2,365,129

2,556,682

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Others

-

15,200,000

-

-

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

-

15,200,000

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

90,727,070

89,760,526

54,202,520

50,920,441

43,295,511

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

-

72,839,854

30,770,422

41,567,177

32,006,130

Trade debtors

-

27,260,257

17,970,661

19,348,912

17,349,468

Other debtors, deposits & prepayments

-

6,262,080

1,600,792

1,406,726

774,336

Short term deposits

-

6,670,257

-

-

-

Amount due from associated companies

-

1,161,118

1,400,763

240,288

240,000

Cash & bank balances

-

11,757,388

4,464,357

3,417,114

3,141,546

Others

-

182,736

1,796,693

1,339,795

1,119,991

 

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

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

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

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

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

TOTAL CURRENT ASSETS

150,196,873

126,133,690

58,003,688

67,320,012

54,631,471

 

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

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

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

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

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

TOTAL ASSET

240,923,943

215,894,216

112,206,208

118,240,453

97,926,982

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

22,986,153

6,159,521

4,693,372

3,850,746

Other creditors & accruals

-

17,996,638

5,005,681

6,364,966

10,024,648

Hire purchase & lease creditors

-

-

-

-

6,716

Bank overdraft

-

-

-

66,047

66,156

Short term borrowings/Term loans

-

11,653,275

1,661,389

1,362,335

2,063,736

Bill & acceptances payable

-

32,855,634

24,303,135

39,187,892

20,287,686

Amounts owing to director

-

6,055,173

4,692,734

3,740,512

2,693,763

Other liabilities

-

1,867,206

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

112,285,292

93,414,079

41,822,460

55,415,124

38,993,451

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

37,911,581

32,719,611

16,181,228

11,904,888

15,638,020

 

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

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

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

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

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

TOTAL NET ASSETS

128,638,651

122,480,137

70,383,748

62,825,329

58,933,531

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

2,250,000

2,250,000

2,250,000

2,250,000

2,250,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

2,250,000

2,250,000

2,250,000

2,250,000

2,250,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

-

2,100,000

2,100,000

2,100,000

2,100,000

Retained profit/(loss) carried forward

77,694,042

67,525,368

50,968,536

46,798,782

42,621,944

Others

2,098,146

29,917

-

-

-

 

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

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

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

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

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

TOTAL RESERVES

79,792,188

69,655,285

53,068,536

48,898,782

44,721,944

 

 

 

 

 

 

MINORITY INTEREST

16,679,369

12,240,075

3,961,038

2,943,896

2,183,882

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

98,721,557

84,145,360

59,279,574

54,092,678

49,155,826

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

-

21,844,245

8,529,174

6,336,951

7,737,005

Hire purchase creditors

-

-

-

2,395,700

-

Deferred taxation

-

2,791,000

2,575,000

-

2,040,700

Retirement benefits provision

-

7,999,532

-

-

-

Others

-

5,700,000

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

29,917,094

38,334,777

11,104,174

8,732,651

9,777,705

 

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

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

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

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

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

 

128,638,651

122,480,137

70,383,748

62,825,329

58,933,531

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

KILANG RANTAI S.A. SDN BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

-

18,427,645

4,464,357

3,417,114

3,141,546

Net Liquid Funds

-

18,427,645

4,464,357

3,351,067

3,075,390

Net Liquid Assets

37,911,581

<40,120,243>

<14,589,194>

<29,662,289>

<16,368,110>

Net Current Assets/(Liabilities)

37,911,581

32,719,611

16,181,228

11,904,888

15,638,020

Net Tangible Assets

128,638,651

107,280,137

70,383,748

62,825,329

58,933,531

Net Monetary Assets

7,994,487

<78,455,020>

<25,693,368>

<38,394,940>

<26,145,815>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

-

33,497,520

10,190,563

10,161,033

9,873,613

Total Liabilities

142,202,386

131,748,856

52,926,634

64,147,775

48,771,156

Total Assets

240,923,943

215,894,216

112,206,208

118,240,453

97,926,982

Net Assets

128,638,651

122,480,137

70,383,748

62,825,329

58,933,531

Net Assets Backing

98,721,557

84,145,360

59,279,574

54,092,678

49,155,826

Shareholders' Funds

98,721,557

84,145,360

59,279,574

54,092,678

49,155,826

Total Share Capital

2,250,000

2,250,000

2,250,000

2,250,000

2,250,000

Total Reserves

79,792,188

69,655,285

53,068,536

48,898,782

44,721,944

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

-

0.20

0.11

0.06

0.08

Liquid Ratio

-

0.57

0.65

0.46

0.58

Current Ratio

1.34

1.35

1.39

1.21

1.40

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

-

142

96

123

127

Debtors Ratio

-

53

56

57

69

Creditors Ratio

-

55

22

14

15

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

-

0.40

0.17

0.19

0.20

Liabilities Ratio

1.44

1.57

0.89

1.19

0.99

Times Interest Earned Ratio

-

3.52

9.10

9.29

17.06

Assets Backing Ratio

57.17

47.68

31.28

27.92

26.19

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

6.71

12.44

7.07

6.34

9.07

Net Profit Margin

4.29

9.44

5.50

5.19

8.13

Return On Net Assets

13.75

26.55

13.17

14.00

15.06

Return On Capital Employed

12.17

21.69

12.47

13.36

14.50

Return On Shareholders' Funds/Equity

11.44

21.01

10.83

11.88

15.24

Dividend Pay Out Ratio (Times)

0.10

0.06

0.35

0.35

0.30

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

-

0

0

0

0

 

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.29

UK Pound

1

Rs.84.09

Euro

1

Rs.72.44

 

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.