MIRA INFORM REPORT

 

 

Report Date :

16.01.2013

 

IDENTIFICATION DETAILS

 

Name :

EMAS KIARA INDUSTRIES BHD

 

 

Formerly Known As :

EMAS KIARA INDUSTRIES SDN BHD (17/06/2003)

 

 

Registered Office :

The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Level 18, 59200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

30.04.1996

 

 

Com. Reg. No.:

485144-H

 

 

Legal Form :

Public

 

 

Line of Business :

Manufacturing and Trading and Installation of Geosynthetic Products and Lightings , Property Development and Investment Holding

 

 

No. of Employees :

30

 

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

 

Maximum Credit Limit:

USD 3,185,000

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.

:

485144-H

COMPANY NAME

:

EMAS KIARA INDUSTRIES BHD

FORMER NAME

:

EMAS KIARA INDUSTRIES SDN BHD (17/06/2003)

INCORPORATION DATE

:

30/04/1996

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PUBLIC

LISTED STATUS

:

YES

LISTED DATE

:

30/03/2004

 

 

 

 

 

 

REGISTERED ADDRESS

:

THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 13, JALAN RP3, RAWANG INDUSTRIAL ESTATE, 48000 RAWANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-60929898

FAX.NO.

:

03-60926602

WEB SITE

:

www.emaskiara.com

CONTACT PERSON

:

WONG KONG FOO ( CHAIRMAN )

 

 

 

INDUSTRY CODE

:

47510 68104 64200

PRINCIPAL ACTIVITY

:

MANUFACTURING AND TRADING AND INSTALLATION OF GEOSYNTHETIC PRODUCTS AND LIGHTINGS , PROPERTY DEVELOPMENT AND INVESTMENT HOLDING

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO
ORDINARY SHARE 100,000,000.00 OF MYR 0.50 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 44,622,400.00 DIVIDED INTO
ORDINARY SHARES 89,244,800 CASH OF MYR 0.50 EACH.

 

 

 

SALES

:

MYR 44,030,746 [2011]

NET WORTH

:

MYR 91,568,271 [2011]

 

 

 

STAFF STRENGTH

:

30 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

MYR 10,033,000 (USD 3,185,000)

 

 

HISTORY / BACKGROUND


As a public limited company, the SC must have at least one shareholder but there is no limit on the maximum number of shareholders. The SC must have at least two directors. A public 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, suing or be sued by other companies. The liabilities of the shareholders are only up 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 must file in its annual return, together with its financial statements with the Registrar of Companies. In Malaysia, all the companies seeking listing on the Bursa Malaysia (Malaysia Stock Exchange) must be public limited companies.

The SC is principally engaged in the (as a / as an) manufacturing and trading and installation of geosynthetic products and lightings , property development and investment holding.

The SC was listed on the Main Board of Bursa Malaysia Securities Bhd on 30/03/2004


 

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



Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. WONG KONG FOO +

A-29-A,SUASANA SENTRAL CONDOMINIUM, JALAN STESEN SENTRAL 5, KUALA LUMPUR SENTRAL, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

600701-10-7281

15,979,028.00

17.90

MR. SEE CHII WEI

3B, PERSIARAN KUANTAN, SETAPAK, 53200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

690909-10-5439 A1389197

7,120,456.00

7.98

INTAN KUALA LUMPUR SDN.BHD.

BLOCK E, SOUTH WING, PLAZA MONT KIARA, 2 JALAN KIARA, LEVEL 16, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

37292

6,810,804.00

7.63

TAN SRI DATO' KAMARUZZAMAN BIN SHARIFF +

 

 

6,561,411.00

7.35

EASTERN COURTYARD SDN. BHD.

6-2, JALAN SOLARIS 3, SOLARIS MONT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

826767

5,129,000.00

5.75

MR. LIM YEW HOE +

9 SOLOK RAJAWALI, TAMAN BUKIT RAJA, 41150 KLANG, SELANGOR, MALAYSIA.

680618-10-5165 A0997790

4,611,120.00

5.17

WHE BINA SDN. BHD.

NO. 6-2, JALAN SOLARIS 3, SOLARIS MONT' KIARA, , 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

596181

3,274,388.00

3.67

RIVIERA COLLECTION SDN. BHD.

LOT 11096, BATU 8, JALAN KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

757162

3,168,000.00

3.55

IMPIANA VENTURE SDN. BHD.

6-2, JALAN SOLARIS 3, SOLARIS MONT KIARA,, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

610871

3,150,000.00

3.53

SANDANASAMY RICHARD DOUGLAS

 

S0158165A

2,885,081.00

3.23

MR. NEOH CHENG AIK

15,JALAN ATHINAHAPAN 4, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

481130-71-5291 2799702

2,689,322.00

3.01

MS. GOH SIEW BEE

A-29-4,SUASANA SENTRAL CONDO, JALAN SETESEN SENTRAL 5, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

620713-10-6284 6812237

2,210,000.00

2.48

MIDLANE ENTITY SDN. BHD.

 

398804

1,645,000.00

1.84

TEMA MESTIKA SDN. BHD.

 

646617

1,079,400.00

1.21

REMAINING SHAREHOLDERS

 

 

22,931,790.00

25.70

 

 

 

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

------

 

 

 

89,244,800.00

100.00

 

 

 

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

=====


+ Also Director


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



Local No

Company

(%)

As At

 

NOBLECORP LANDS SDN BHD

100

31/12/2011

 

 

 

 

 

 

INNOVATIVE INDUSTRIAL TEXTILES SDN BHD

100

31/12/2011

 

 

 

 

 

 

222368

FIBRE INNOVATION TECHNOLOGY SDN BHD

100

31/12/2011

 

 

 

 

 

 

35172

ADVANCE TECHNICAL FABRIC SDN BHD

100

31/12/2011

 

 

 

 

 

 

226612

EMAS KIARA MARKETING SDN BHD

100

31/12/2011

 

 

 

 

 

 

382558

KIARA TEX SDN BHD

70

31/12/2011

 

 

 

 

 

 




 

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. SIEW KAH TOONG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

HJ ABD TALIB BIN BABA

Address

:

25 JALAN SS4A/3, KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

2729321

New IC No

:

451017-04-5065

Date of Birth

:

17/10/1945

 

 

 

Nationality

:

MALAYSIAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. YAHYA BIN YA'ACOB

Address

:

1, JALAN SS 1/35, KAMPUNG TUNKU, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

2776653

New IC No

:

440112-01-5071

Date of Birth

:

12/01/1944

 

 

 

Nationality

:

MALAYSIAN

 

 

 

 

 

 

Qualification

:

B.A.(HONS) FROM UM & MASTER'S DEGREE IN BUSS MGTE FROM ASIAN INSTITUTE OF MGTE, MANILA, PHILLIPINES

Working Experience

:

IN 1967, WITH THE FINANCE DIVISION, FEDERAL TREASURY OF MALAYSIA SECRETARY GENERAL OF THE MINISTRY OF INFORMATION IN OCT 1991 & MINISTRY OF WORKS FROM JULY 1994 - JAN 199

Other Info

:

Y.BHG DATUK HAJI

 

DIRECTOR 4

 

Name Of Subject

:

MR. LIM YEW HOE

Address

:

9 SOLOK RAJAWALI, TAMAN BUKIT RAJA, 41150 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

A0997790

New IC No

:

680618-10-5165

Date of Birth

:

18/06/1968

 

 

 

Nationality

:

MALAYSIAN

 

 

 

 

 

 

Qualification

:

BACHELOR OF SCIENCE DEGREE IN ACCOUNTING FROM SUMMIT UNIVERSITY, US IN 1999. MASTERS IN BUSINESS ADMINISTRATION FROM GREENWICH UNIVERSITY, AUSTRALIA IN 2001

Working Experience

:

HE HAS MORE THAN 10 YEARS EXPERIENCE IN THE GEOSYNTHETIC INDUSTRY. HE STARTED HIS CAREER AS AN ASSISTANT ACCOUNTANT OF VITCO (M) SDN BHD ("VITCO") IN 1989 HE WAS PROMOTED TO OPERATIONS MANAGER OF AMPRESS (M) SDN BHD, A SUBSIDIARY COMPANY OF VITCO INVOLVED IN TRADING OF GEOSYNTHETICS IN 1992

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

TAN SRI DATO' KAMARUZZAMAN BIN SHARIFF

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nationality

:

MALAYSIAN MALAY

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

MR. WONG KONG FOO

Address

:

A-29-A,SUASANA SENTRAL CONDOMINIUM, JALAN STESEN SENTRAL 5, KUALA LUMPUR SENTRAL, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

600701-10-7281

Date of Birth

:

01/07/1960

 

 

 

Nationality

:

MALAYSIAN

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

WONG KONG FOO

 

Position

:

CHAIRMAN

 

 

 

 

 

2)

Name of Subject

:

SYLVIA NG

 

Position

:

FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

LEE

 

Position

:

MARKETING MANAGER

 

 

 

 

 

AUDITOR

 

Auditor

:

CROWE HORWATH

Auditor' Address

:

TOWER C, MEGAN AVENUE II, 12 JALAN YAP KWAN SENG, LEVEL 16, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LIM HOOI MOOI

 

IC / PP No

:

5584641

 

New IC No

:

590814-10-6262

 

Address

:

28,JALAN 20/7, 46300 PETALING JAYA, 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

:

N/A

Overseas

:

N/A

 

 

 


The SC has no trade suppliers.

The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

SINGAPORE

 

 

 

 

 

 

 

 

 

 

 

 

Payment Mode

:

CHEQUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Services

:

INVESTMENT HOLDING

 

 

 

 

Competitor(s)

:

CARPET PLUS SDN BHD
KAMDAR GROUP (M) BHD
MADRAS STORE SDN BHD
NEW CENTURY CONCEPTS SDN BHD
PONEY GARMENTS SDN BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2011

2008

 

 

 

 

 

 


 

GROUP

30

300

300

 

 

 

 

 

 

COMPANY

N/A

0

0

 

 

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing and trading and installation of geosynthetic products and lightings , property development and investment holding.

The Group's core business activity was in manufacturing of geosynthetic products and technical fabrics for technical, engineering and industrial application. However since 2011 it sold this business to TenCate Geosynthetics Asia Sdn Bhd since 2011. Currently the SC only undertakes installation and trading of geosynthetic products ,lightings and others.

Besides this, the SC also involved in property development business.

PROJECTS


No projects found in our databank

RECENT DEVELOPMENT


23 July 2012.

The Board of Directors of Emas Kiara Industries Berhad wishes to announce that the Company has, via its wholly-owned subsidiary, Innovative Industrial Textiles Sdn Bhd (221690-V) acquired two (2) ordinary shares of RM1.00 each, representing 100% of the issued and paid-up share capital in Asian Culture Food Sdn Bhd (formerly known as Beringin Leisure Park Sdn Bhd) (969397-W), a dormant company, from the non-related third parties for a total cash consideration of RM2.00 on 23 July 2012.

Upon the completion of the above acquisition of shares, Asian Culture Food Sdn Bhd (formerly known as Beringin Leisure Park Sdn Bhd) shall become a wholly-owned subsidiary of EKIB Group.

None of the Directors, major shareholders of the Company and/or persons connected with them has any interest, direct and/or indirect in the above acquisition of shares.

14 May 2012

The Board of Directors of Emas Kiara Industries Berhad is pleased to announce that Noblecorp Sdn Bhd (formerly known as Bold Universal Sdn Bhd) (Company No. 953731-H) (Purchaser), a wholly-owned subsidiary of EKIB Group, had on 11 May 2012 entered into a Sale and Purchase Agreement (SPA) with Creative City Development Sdn Bhd (Company No. 832735-W) of Lot 2902, Jalan Kempas Baru, 81200 Tampoi, Johor (Vendor) for the acquisition of a piece of land held under H.S.(D) 33103 PTD 46986, Mukim Kulai, Daerah Kulaijaya, Negeri Johor measuring 194,740.48 square feet (18,092 square metres) (Land) for a total purchase consideration of RM5,257,992.96 (Acquisition of Land).

Mar 21 2011

TenCate Geosynthetics Asia has acquired of the geosynthetics activities of Emas Kiara Industries Berhad, based in Rawang, Malaysia. The addition of Emas Kiara production capabilities, employees and product brands is intended to provide TenCate Geosynthetics with a greater capacity to supply the Southeast Asian market. Emas Kiara Industries is a producer and supplier of geosynthetic products, targeted at customers in Asia. TenCate geosynthetics business in the region is currently concentrated on environmental, infrastructure and water management applications, including Geotube used for coast protection, land reclamation and environmental dewatering projects. Wally Moore, global group director TenCate Geosynthetics, said: In combination with the existing production activities of TenCate Geosynthetics in Malaysia and China, and the existing pan-Asian market activities, TenCate is expanding its leading market position. As a result of this acquisition, TenCate substantially increases the revenues of geosynthetics in this region.

Emas Kiara will continue non-geosynthetic related business, as well as maintaining their geosynthetic construction and installation activities with product supply from TenCate.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

+60 66771988

Current Telephone Number

:

03-60929898

Match

:

NO

 

 

 

Address Provided by Client

:

LOT 6, JALAN BUNGA TANJONG 1, SENAWANG INDUSTRIAL PARK, 70400 SEREMBAN, NEGERI SEMBILAN,

Current Address

:

LOT 13, JALAN RP3, RAWANG INDUSTRIAL ESTATE, 48000 RAWANG, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the SC and she provided some information on the SC.

TenCate Geosynthetics Asia Sdn Bhd has acquired of the geosynthetics activities of Emas Kiara Industries Berhad

The address and contact number provided belongs to the fomer manufacturing plant of the SC.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

<12.55%>

]

 

Return on Net Assets

:

Unfavourable

[

<11.80%>

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC incurred losses during the year due to the inefficient control of its operating costs. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

93 Days

]

 

Debtor Ratio

:

Unfavourable

[

256 Days

]

 

Creditors Ratio

:

Unfavourable

[

112 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 debtors ratio was high. The SC should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

3.58 Times

]

 

Current Ratio

:

Favourable

[

4.00 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

[

0.02 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was nil as it did not pay any interest during the year. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC's losses increased but its turnover showed a fluctuating trend. This indicate the SC was slowly losing its market share due to its competitors. 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 as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

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

47510 : Retail sale of textiles in specialized stores

68104 : Development of building projects for own operation, i.e. for renting of space in these buildings

64200 : Activities of holding companies

 

 

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 Public Listed company, focusing on manufacturing and trading and installation of geosynthetic products and lightings , property development and investment holding. 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. The SC is a large entity with strong capital position.


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. Overall, we regard that the SC's management capability is average.


Due to the challenging market conditions, the SC's business performance seems to be deteriorating and losses incurred. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. However, 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 lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 91,568,271, the SC should be able to maintain its business in the near terms.


The SC's payment habit is average.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.


Based on the above condition, we recommend credit be granted to the SC normally.

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

EMAS KIARA INDUSTRIES 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

44,030,746

146,846,751

137,451,786

150,257,792

102,939,927

Other Income

10,178,368

1,714,531

-

-

-

 

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

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

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

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

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

Total Turnover

54,209,114

148,561,282

137,451,786

150,257,792

102,939,927

Costs of Goods Sold

<44,610,884>

<136,325,903>

-

-

-

 

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

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

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

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

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

Gross Profit

9,598,230

12,235,379

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

<10,997,646>

1,463,754

10,855,935

13,262,997

5,213,384

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

<10,997,646>

1,463,754

10,855,935

13,262,997

5,213,384

Taxation

<656,022>

<733,171>

<2,830,224>

<2,776,692>

<1,294,355>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

<11,653,668>

730,583

8,025,711

10,486,305

3,919,029

Minority interests

163,665

7,147

1,519,755

708,883

674,046

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

<11,490,003>

737,730

9,545,466

11,195,188

4,593,075

Extraordinary items

28,321,664

6,835,900

55,316

-

-

 

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

16,831,661

7,573,630

9,600,782

11,195,188

4,593,075

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

39,531,030

33,280,417

24,939,875

13,744,687

9,151,612

Prior year adjustment

-

<87,841>

-

-

-

 

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

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

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

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

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

As restated

39,531,030

33,192,576

24,939,875

13,744,687

9,151,612

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

56,362,691

40,766,206

34,540,657

24,939,875

13,744,687

- General

-

25,064

-

-

-

DIVIDENDS - Ordinary (paid & proposed)

<10,709,376>

<1,260,240>

<1,260,240>

-

-

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

45,653,315

39,531,030

33,280,417

24,939,875

13,744,687

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

-

-

62

26,316

3,076

Hire purchase

-

-

463,605

511,465

126,447

Term loan / Borrowing

-

-

151,976

227,607

315,560

Others

-

-

4,005,663

690,965

569,443

 

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

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

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

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

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

 

-

-

4,621,306

1,456,353

1,014,526

 

 

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

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

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

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

 

 

 

BALANCE SHEET

 

 

EMAS KIARA INDUSTRIES BHD

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

11,104,494

9,707,027

69,484,460

72,430,196

60,372,615

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investment properties

-

-

171,139

174,793

178,447

Deferred assets

-

-

99,000

320,000

448,000

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

270,139

494,793

626,447

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Own goodwill

-

-

3,102,796

-

-

Goodwill on consolidation

-

-

-

3,185,873

3,185,873

Others

140,000

-

-

-

-

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

140,000

-

3,102,796

3,185,873

3,185,873

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

11,244,494

9,707,027

72,857,395

76,110,862

64,184,935

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

11,261,728

32,261,089

31,907,830

31,380,500

26,082,018

Trade debtors

30,875,109

61,257,572

62,587,851

37,282,714

36,711,944

Other debtors, deposits & prepayments

2,854,932

4,286,493

7,450,890

4,646,969

5,315,904

Short term deposits

47,686,609

19,309,896

11,378,010

15,131,672

9,477,827

Cash & bank balances

15,201,277

4,838,316

17,137,982

10,299,240

6,881,962

Others

1,443,332

69,766,130

12,022,655

459,640

676,873

 

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

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

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

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

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

TOTAL CURRENT ASSETS

109,322,987

191,719,496

142,485,218

99,200,735

85,146,528

 

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

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

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

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

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

TOTAL ASSET

120,567,481

201,426,523

215,342,613

175,311,597

149,331,463

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

13,706,220

18,207,516

38,025,994

12,717,770

9,449,897

Other creditors & accruals

11,099,427

11,504,235

10,780,827

6,731,040

5,612,308

Hire purchase & lease creditors

454,282

2,726,642

2,161,737

1,845,739

622,615

Short term borrowings/Term loans

11,400

60,446,696

61,144,152

16,470,166

2,287,090

Other borrowings

-

-

-

5,000,000

2,300,000

Bill & acceptances payable

-

-

-

-

5,753,000

Provision for taxation

2,084,602

922,695

1,162,074

738,433

267,781

Other liabilities

10

-

92,488

40,000,000

40,000,000

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

27,355,941

93,807,784

113,367,272

83,503,148

66,292,691

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

81,967,046

97,911,712

29,117,946

15,697,587

18,853,837

 

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

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

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

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

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

TOTAL NET ASSETS

93,211,540

107,618,739

101,975,341

91,808,449

83,038,772

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

44,622,400

42,730,100

42,008,000

42,008,000

42,008,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

44,622,400

42,730,100

42,008,000

42,008,000

42,008,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

3,175,414

2,968,756

2,889,896

2,889,896

2,889,896

Capital reserve

-

4,096

4,096

4,096

4,096

Exchange equalisation/fluctuation reserve

<2,278,019>

<1,265,924>

<639,898>

<270,705>

<201,019>

Retained profit/(loss) carried forward

45,653,315

39,531,030

33,280,417

24,939,875

13,744,687

Others

21,294

65,338

-

-

-

 

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

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

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

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

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

TOTAL RESERVES

46,572,004

41,303,296

35,534,511

27,563,162

16,437,660

 

 

 

 

 

 

MINORITY INTEREST

373,867

537,532

1,016,330

2,422,885

3,131,768

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

91,568,271

84,570,928

78,558,841

71,994,047

61,577,428

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

257,298

4,925,187

5,307,268

1,557,227

2,197,519

Hire purchase creditors

1,213,673

4,210,804

4,474,770

4,926,715

1,735,060

Deferred taxation

172,298

3,911,820

3,634,462

3,330,460

2,528,765

Others

-

10,000,000

10,000,000

10,000,000

15,000,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,643,269

23,047,811

23,416,500

19,814,402

21,461,344

 

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

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

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

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

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

 

93,211,540

107,618,739

101,975,341

91,808,449

83,038,772

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

EMAS KIARA INDUSTRIES BHD

 

TYPES OF FUNDS

 

 

 

 

 

Cash

62,887,886

24,148,212

28,515,992

25,430,912

16,359,789

Net Liquid Funds

62,887,886

24,148,212

28,515,992

25,430,912

16,359,789

Net Liquid Assets

70,705,318

65,650,623

<2,789,884>

<15,682,913>

<7,228,181>

Net Current Assets/(Liabilities)

81,967,046

97,911,712

29,117,946

15,697,587

18,853,837

Net Tangible Assets

93,071,540

107,618,739

98,872,545

88,622,576

79,852,899

Net Monetary Assets

69,062,049

42,602,812

<26,206,384>

<35,497,315>

<28,689,525>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

1,936,653

72,309,329

73,087,927

29,799,847

9,142,284

Total Liabilities

28,999,210

116,855,595

136,783,772

103,317,550

87,754,035

Total Assets

120,567,481

201,426,523

215,342,613

175,311,597

149,331,463

Net Assets

93,211,540

107,618,739

101,975,341

91,808,449

83,038,772

Net Assets Backing

91,568,271

84,570,928

78,558,841

71,994,047

61,577,428

Shareholders' Funds

91,568,271

84,570,928

78,558,841

71,994,047

61,577,428

Total Share Capital

44,622,400

42,730,100

42,008,000

42,008,000

42,008,000

Total Reserves

46,572,004

41,303,296

35,534,511

27,563,162

16,437,660

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

2.30

0.26

0.25

0.30

0.25

Liquid Ratio

3.58

1.70

0.98

0.81

0.89

Current Ratio

4.00

2.04

1.26

1.19

1.28

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

93

80

85

76

92

Debtors Ratio

256

152

166

91

130

Creditors Ratio

112

49

101

31

34

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.02

0.86

0.93

0.41

0.15

Liabilities Ratio

0.32

1.38

1.74

1.44

1.43

Times Interest Earned Ratio

0.00

0.00

3.35

10.11

6.14

Assets Backing Ratio

1.07

1.23

1.13

1.01

0.91

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

<24.98>

1.00

7.90

8.83

5.06

Net Profit Margin

<26.10>

0.50

6.94

7.45

4.46

Return On Net Assets

<11.80>

1.36

15.18

16.03

7.50

Return On Capital Employed

<11.68>

1.32

14.30

14.83

6.92

Return On Shareholders' Funds/Equity

<12.55>

0.87

12.15

15.55

7.46

Dividend Pay Out Ratio (Times)

0.93

1.71

0.13

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0



 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.54

UK Pound

1

Rs.87.69

Euro

1

Rs.72.85

 

 

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.