MIRA INFORM REPORT

 

 

Report Date :

09.03.2013

 

IDENTIFICATION DETAILS

 

Name :

BENWOOD FINE TRENDZ SDN. BHD.

 

 

Formerly Known As :

Fine trendz sdn. Bhd.

 

 

Registered Office :

15-A Jalan Bakri Jaya 1, Taman Bakri Jaya, 84200 Muar, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.10.2011

 

 

Date of Incorporation :

25.11.1991

 

 

Com. Reg. No.:

229694-a

 

 

Legal Form :

Private limited (limited by share)

 

 

Line of Business :

Trading of yarn

 

 

No. of Employees :

Not available 

 

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

 

 


* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

 

N/A - Not Applicable

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

229694-A

COMPANY NAME

:

BENWOOD FINE TRENDZ SDN. BHD.

FORMER NAME

:

FINE TRENDZ SDN. BHD. (30/07/2007)

INCORPORATION DATE

:

25/11/1991

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

15-A JALAN BAKRI JAYA 1, TAMAN BAKRI JAYA, 84200 MUAR, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

7, JALAN GEMILANG 8/2, TAMAN BANDAR BANANG JAYA, 83000 BATU PAHAT, JOHOR, MALAYSIA.

TEL.NO.

:

07-4287668

FAX.NO.

:

07-4288669

CONTACT PERSON

:

SUBRAMANIAM ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

46411

PRINCIPAL ACTIVITY

:

TRADING OF YARN

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

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

 

 

 

SALES

:

MYR 1,466,746 [2011]

NET WORTH

:

MYR 1,682,317 [2011]

 

 

 

STAFF STRENGTH

:

N/A

BANKER (S)

:

HONG LEONG BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

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 yarn.

 

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. SUBRAMANIAM A/L RAMAIYA +

1 JALAN PERDANA 7, TAMAN PERDANA, 83000 BATU PAHAT, JOHOR, MALAYSIA.

541219-10-5555

200,000.00

80.00

KALLIAMAL A/P SIVASAMY +

1 JALAN PERDANA 7, TAMAN PERDANA, 83000 BATU PAHAT, JOHOR, MALAYSIA.

4285931

50,000.00

20.00

 

 

 

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

------

 

 

 

250,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

Name Of Subject

:

MS. KALLIAMAL A/P SIVASAMY

Address

:

1 JALAN PERDANA 7, TAMAN PERDANA, 83000 BATU PAHAT, JOHOR, MALAYSIA.

 

 

 

New IC No

:

520715-07-5014

Date of Birth

:

15/07/1952

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

17/01/1992

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

KALLIAMAL A/P SIVASAMY

Address

:

1 JALAN PERDANA 7, TAMAN PERDANA, 83000 BATU PAHAT, JOHOR, MALAYSIA.

IC / PP No

:

4285931

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

17/01/1992

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. SUBRAMANIAM A/L RAMAIYA

Address

:

1 JALAN PERDANA 7, TAMAN PERDANA, 83000 BATU PAHAT, JOHOR, MALAYSIA.

 

 

 

New IC No

:

541219-10-5555

Date of Birth

:

19/12/1954

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

17/01/1992

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

SUBRAMANIAM

 

Position

:

DIRECTOR

   

                                

 

AUDITOR

 

Auditor

:

LEE & TAN ASSOCIATES.

Auditor' Address

:

3A, JALAN SETIA JAYA, TAMAN SETIA JAYA, OFF JALAN TAN SWEE HOE, 83000 BATU PAHAT, JOHOR, MALAYSIA.

 

 

 

 

                              

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. TAN SAY KANG

 

 

 

 

 

New IC No

:

790530-01-5701

 

Address

:

LOT 3826-1, JALAN UTARA, BUKIT BAKRI, 84200 MUAR, JOHOR, MALAYSIA.

 

 

 

 

 

 

 

 

   

                                     

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HONG LEONG BANK BHD

 

 

 

 

 

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

 

ENCUMBRANCE (S)



ENCUMBRANCE 1

Date of Creation

:

14/12/1997

Description Of Charge

:

N/A

 

Amount Secured

:

MYR1,000,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

BANK OF COMMERCE M BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated 21/01/1998

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

10/11/2003

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

HONG LEONG BANK BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated 12/11/2003

Registered and Numbered 3 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

22/02/2012

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

HONG LEONG BANK BERHAD

 

 

 

 

 

 

 

 

Form 40 Dated 24/02/2012

Registered and Numbered 4 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

:

N/A

Overseas

:

N/A

 

 

 


The SC refused to disclose its suppliers. 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

 

 

 

 

 

 

Overseas

:

NO

 

 

 

 

 

 

 

 

 

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

YARN

 

 

 

 

Brand Name

:

COTTONZ, KALIAMMA,, SWEATBUSTER

 

 

 

 

 

Branch

:

NO

 

 

 

Other Information:

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

The SC refused to disclose any information on its operation. 

 

 

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

:

07-4287668

Match

:

N/A

 

 

 

Address Provided by Client

:

NO. 7, JALAN GEMILANG 8/2 TAMA

Current Address

:

7, JALAN GEMILANG 8/2, TAMAN BANDAR BANANG JAYA, 83000 BATU PAHAT, JOHOR, MALAYSIA.

Match

:

N/A

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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

The SC refused to disclose its number of employees.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

22.53%

]

 

Return on Net Assets

:

Acceptable

[

28.65%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.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.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

77 Days

]

 

Debtor Ratio

:

Favourable

[

34 Days

]

 

Creditors Ratio

:

Favourable

[

0 Days

]

 

 

 

 

 

 

 

 

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

3.22 Times

]

 

Current Ratio

:

Favourable

[

4.06 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

:

Favourable

[

92.29 Times

]

 

Gearing Ratio

:

Favourable

[

0.03 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. 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 :

 

 

 

 

 

 

Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. 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 : STRONG

 

 

 

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

46411 : Wholesale of yarn and fabrics

 

 

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 1991, the SC is a Private Limited company, focusing on trading of yarn. The SC has been in business for over two decades. Its impressive track record shows that the SC has been able to keep its business going despite the passing of two decades of highs and lows in the local economy.


Information revealed that the SC solely focuses on domestic market rather than overseas market. We believe that this narrow market segment would limit the SC's business opportunities and the SC is likely to be affected by the uncertainties in local economy. However, its long presence in the market has enabled the SC to gain certain market shares and established good rapport with its clients. Thus, its business risk is diversified. 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.


Despite the lower turnover, the SC's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. 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 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 1,682,317, 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 industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.


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

 

PROFIT AND LOSS ACCOUNT

 

 

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

BENWOOD FINE TRENDZ SDN. BHD.

 

Financial Year End

31/10/2011

31/10/2010

31/10/2009

31/10/2008

31/10/2007

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

FULL

FULL

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

1,466,746

1,620,924

726,591

747,550

948,665

 

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

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

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

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

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

Total Turnover

1,466,746

1,620,924

726,591

747,550

948,665

Costs of Goods Sold

<984,278>

<1,015,895>

-

-

-

 

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

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

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

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

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

Gross Profit

482,468

605,029

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

477,442

440,676

147,790

139,175

307,384

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

477,442

440,676

147,790

139,175

307,384

Taxation

<98,353>

<92,236>

<33,894>

<36,454>

<57,844>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

379,089

348,440

113,896

102,721

249,540

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

1,128,228

779,788

665,892

563,171

678,631

 

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

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

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

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

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

As restated

1,128,228

779,788

665,892

563,171

678,631

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,507,317

1,128,228

779,788

665,892

928,171

DIVIDENDS - Ordinary (paid & proposed)

<75,000>

-

-

-

<365,000>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,432,317

1,128,228

779,788

665,892

563,171

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

169

-

-

-

-

Bankers' acceptance

-

7,990

-

-

-

Hire purchase

-

3,570

-

-

-

Term loan / Borrowing

4,459

9,521

-

-

-

Others

602

2,094

-

-

-

 

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

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

 

 

 

 

5,230

23,175

 

 

 

 

 

 

BALANCE SHEET

 

 

BENWOOD FINE TRENDZ SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

310,613

319,997

344,591

364,281

417,211

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Associated companies

250,000

250,000

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

250,000

250,000

250,000

250,000

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

560,613

569,997

594,591

614,281

417,211

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

308,595

302,298

-

-

-

Trade debtors

137,526

669,350

-

-

-

Other debtors, deposits & prepayments

56,880

7,344

-

-

-

Deposits with financial institutions

393,179

382,900

-

-

-

Amount due from associated companies

43,801

19,506

-

-

-

Amount due from director

500,763

376,159

-

-

-

Cash & bank balances

28,759

76,808

-

-

-

Others

21,505

21,505

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

1,491,008

1,855,870

1,034,241

891,052

1,161,018

 

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

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

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

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

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

TOTAL ASSET

2,051,621

2,425,867

1,628,832

1,505,333

1,578,229

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

600,711

-

-

-

Other creditors & accruals

41,763

42,126

-

-

-

Bank overdraft

56,687

-

-

-

-

Short term borrowings/Term loans

-

35,778

-

-

-

Amounts owing to director

249,303

251,382

-

-

-

Provision for taxation

19,385

38,596

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

367,138

968,593

488,145

436,218

564,015

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,123,870

887,277

546,096

454,834

597,003

 

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

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

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

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

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

TOTAL NET ASSETS

1,684,483

1,457,274

1,140,687

1,069,115

1,014,214

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

250,000

250,000

250,000

250,000

250,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

250,000

250,000

250,000

250,000

250,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

1,432,317

1,128,228

779,788

665,892

563,171

 

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

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

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

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

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

TOTAL RESERVES

1,432,317

1,128,228

779,788

665,892

563,171

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,682,317

1,378,228

1,029,788

915,892

813,171

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

-

77,518

-

-

-

Deferred taxation

2,166

1,528

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

2,166

79,046

110,899

153,223

201,043

 

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

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

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

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

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

 

1,684,483

1,457,274

1,140,687

1,069,115

1,014,214

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

BENWOOD FINE TRENDZ SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

28,759

76,808

-

-

-

Net Liquid Funds

<27,928>

76,808

-

-

-

Net Liquid Assets

815,275

584,979

546,096

454,834

597,003

Net Current Assets/(Liabilities)

1,123,870

887,277

546,096

454,834

597,003

Net Tangible Assets

1,684,483

1,457,274

1,140,687

1,069,115

1,014,214

Net Monetary Assets

813,109

505,933

435,197

301,611

395,960

 

 

 

 

 

 

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

56,687

113,296

-

-

-

Total Liabilities

369,304

1,047,639

599,044

589,441

765,058

Total Assets

2,051,621

2,425,867

1,628,832

1,505,333

1,578,229

Net Assets

1,684,483

1,457,274

1,140,687

1,069,115

1,014,214

Net Assets Backing

1,682,317

1,378,228

1,029,788

915,892

813,171

Shareholders' Funds

1,682,317

1,378,228

1,029,788

915,892

813,171

Total Share Capital

250,000

250,000

250,000

250,000

250,000

Total Reserves

1,432,317

1,128,228

779,788

665,892

563,171

 

 

 

 

 

 

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.08

0.08

-

-

-

Liquid Ratio

3.22

1.60

-

-

-

Current Ratio

4.06

1.92

2.12

2.04

2.06

 

 

 

 

 

 

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

77

68

-

-

-

Debtors Ratio

34

151

-

-

-

Creditors Ratio

-

216

-

-

-

 

 

 

 

 

 

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.03

0.08

-

-

-

Liabilities Ratio

0.22

0.76

0.58

0.64

0.94

Times Interest Earned Ratio

92.29

20.02

-

-

-

Assets Backing Ratio

6.74

5.83

4.56

4.28

4.06

 

 

 

 

 

 

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

32.55

27.19

20.34

18.62

32.40

Net Profit Margin

25.85

21.50

15.68

13.74

26.30

Return On Net Assets

28.65

31.83

12.96

13.02

30.31

Return On Capital Employed

27.72

31.83

12.96

13.02

30.31

Return On Shareholders' Funds/Equity

22.53

25.28

11.06

11.22

30.69

Dividend Pay Out Ratio (Times)

0.20

-

-

-

1.46

 

 

 

 

 

 




FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.40

UK Pound

1

Rs.81.57

Euro

1

Rs.71.24

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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

 

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

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

 

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

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