MIRA INFORM REPORT

 

 

Report Date :

18.03.2013

 

IDENTIFICATION DETAILS

 

Name :

ISBEC SDN. BHD.

 

 

Registered Office :

5-4-2, Jalan 2/50, Diamond Square Off Jalan Gombak, 53000 Kuala Lumpur, Wilayah Persekutuan, Malaysia

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

28.12.1998

 

 

Com. Reg. No.:

474591-D

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading of Textiles, Towels & Others

 

 

No. of Employees :

15

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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.

:

474591-D

COMPANY NAME

:

ISBEC SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

28/12/1998

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

5-4-2, JALAN 2/50, DIAMOND SQUARE OFF JALAN GOMBAK, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

NO.2A JALAN CAMAR 4/3, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-61575916

FAX.NO.

:

03-61575917

EMAIL

:

ISBECCORP88@HOTMAIL.COM

WEB SITE

:

WWW.ISBECCORP.COM

CONTACT PERSON

:

SHAFIQURRAHMAN BIN HJ SHAMSUDDIN ( MANAGING DIRECTOR )

INDUSTRY CODE

:

47510

PRINCIPAL ACTIVITY

:

TRADING OF TEXTILES, TOWELS & OTHERS

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 300,000.00 DIVIDED INTO
ORDINARY SHARES 300,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 2,171,915 [2011]

NET WORTH

:

MYR 1,016,041 [2011]

STAFF STRENGTH

:

15 [2013]

BANKER (S)

:

AFFIN BANK BERHAD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

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 textiles, towels & others.

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. SHAFIQURRAHMAN BIN HAJI SHAMSUDDIN @ JAAFAR +

15, JALAN CECAWI 6/15, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

730621-71-5039 A2590902

225,000.00

75.00

MS. KHIRIYAH BINTI HASHIM +

A1-31, RUMAH PANGSA KAYU ARA, DAMANSARA UTAMAN, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

471203-02-5218 3370924

75,000.00

25.00

 

 

 

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

------

 

 

 

300,000.00

100.00

 

 

 

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

=====

 

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. KHIRIYAH BINTI HASHIM

Address

:

A1-31, RUMAH PANGSA KAYU ARA, DAMANSARA UTAMAN, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

3370924

New IC No

:

471203-02-5218

Date of Birth

:

03/12/1947

Nationality

:

MALAYSIAN

Date of Appointment

:

01/07/2010

 

DIRECTOR 2

 

Name Of Subject

:

MR. SHAFIQURRAHMAN BIN HAJI SHAMSUDDIN @ JAAFAR

Address

:

15, JALAN CECAWI 6/15, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

A2590902

New IC No

:

730621-71-5039

Date of Birth

:

21/06/1973

Nationality

:

MALAYSIAN

Date of Appointment

:

28/12/1998


MANAGEMENT

 

 

 

1)

Name of Subject

:

SHAFIQURRAHMAN BIN HJ SHAMSUDDIN

 

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

AZMAN AHMAD & CO.

Auditor' Address

:

LOT 03-17B,TINGKAT 3, KOMPLEKS PKNS, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. MOHD ZAKRI BIN MOHD RAZALI

 

IC / PP No

:

A2253355

 

New IC No

:

720628-08-5755

 

Address

:

47-5-18, MENARA ORKID, JALAN 3/48A, BANDAR BARU SENTUL, 51000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

2)

Company Secretary

:

MR. JAAFAR @ AHMAD RUSTAM BIN ALI

 

IC / PP No

:

A2967372

 

New IC No

:

750210-11-5467

 

Address

:

42,JALAN MEWAH 2/9, TAMAN PANDAN MEWAH, 68000 AMPANG, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

AFFIN BANK BERHAD

 

 

 

 

 

2)

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)


ENCUMBRANCE 1

Date of Creation

:

08/09/2003

Description Of Charge

:

N/A

 

Amount Secured

:

RM200,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BERHAD

 

Form 40 Dated

Registered and Numbered 1 In The Register of Charges


ENCUMBRANCE 2

Date of Creation

:

30/06/2011

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

PUBLIC BANK BERHAD

 

Form 40 Dated 29/07/2011

Registered and Numbered 10 In The Register of Charges


ENCUMBRANCE 3

Date of Creation

:

26/09/2011

Description Of Charge

:

N/A

 

Amount Secured

:

MYR644,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BERHAD

 

Form 40 Dated 27/09/2011

Registered and Numbered 11 In The Register of Charges


ENCUMBRANCE 4

Date of Creation

:

01/06/2012

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Form 40 Dated 24/07/2012

Registered and Numbered 12 In The Register of Charges


ENCUMBRANCE 5

Date of Creation

:

12/02/2004

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,600,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BERHAD

 

Form 40 Dated

Registered and Numbered 2 In The Register of Charges


ENCUMBRANCE 6

Date of Creation

:

15/03/2005

Description Of Charge

:

N/A

 

Amount Secured

:

RM1,650,000.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

MALAYAN BANKING BERHAD

 

Form 40 Dated

Registered and Numbered 3 In The Register of Charges


ENCUMBRANCE 7

Date of Creation

:

27/09/2005

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

Form 40 Dated

Registered and Numbered 4 In The Register of Charges


ENCUMBRANCE 8

Date of Creation

:

10/07/2006

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

 

 

 

Form 40 Dated

Registered and Numbered 5 In The Register of Charges


ENCUMBRANCE 9

Date of Creation

:

10/07/2006

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

Form 40 Dated

Registered and Numbered 6 In The Register of Charges


ENCUMBRANCE 10

Date of Creation

:

10/07/2006

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

Form 40 Dated

Registered and Numbered 7 In The Register of Charges


ENCUMBRANCE 11

Date of Creation

:

10/07/2006

Description Of Charge

:

N/A

 

Amount Secured

:

N/A

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

Form 40 Dated

Registered and Numbered 8 In The Register of Charges


ENCUMBRANCE 12

Date of Creation

:

22/08/2006

Description Of Charge

:

N/A

 

Amount Secured

:

RM262,600.00

Description Of Property Affected

:

N/A

 

Name & Address Of Chargee

:

AFFIN BANK BERHAD

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 9 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.

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

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

Credit Term

:

N/A

Payment Mode

:

CASH

 

 

OPERATIONS

 

Goods Traded

:

TEXTILES, TOWELS & OTHERS

 

 

Total Number of Employees:

 

YEAR

2013

2009

2008

 

GROUP

N/A

N/A

N/A

 

 

 

 

 

 

COMPANY

15

12

12

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) trading of textiles, towels & others.


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

:

77264918

Current Telephone Number

:

03-61575916

Match

:

NO

 

 

 

Address Provided by Client

:

474591-D NO 2A JALAN CAMAR 4/3 KOTA DAMANSARA 47810 PETALINGH JAYTA SELANGOR DAR

Current Address

:

NO.2A JALAN CAMAR 4/3, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 15th March 2013 we contacted one of the staff from the SC and she provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

<18.57%>

]

 

Return on Net Assets

:

Unfavourable

[

<14.56%>

]

 

 

 

 

 

 

 

 

The continuous fall in turnover could be due to the lower demand for the SC's products / services.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

:

Favourable

[

8 Days

]

 

Debtor Ratio

:

Favourable

[

43 Days

]

 

Creditors Ratio

:

Unfavourable

[

126 Days

]

 

 

 

 

 

 

 

 

The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. 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

[

1.69 Times

]

 

Current Ratio

:

Unfavourable

[

1.72 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

:

Unfavourable

[

<9.24 Times>

]

 

Gearing Ratio

:

Favourable

[

0.17 Times

]

 

 

 

 

 

 

 

 

The SC incurred losses in the year. It did not generate sufficient income to service its interest. If the situation does not improve, the SC may be vulnerable to default in servicing the interest. 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 could be attributed to the lower turnover which in turn could be the result of unfavourable market conditions. 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 interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. 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 : LIMITED

 

 

 

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

 

 

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 1998, the SC is a Private Limited company, focusing on trading of textiles, towels & others. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Presently, paid up capital of the SC stand at MYR 300,000.


Over the years, the SC should have build up its clientele base and received supports from its regular customers. Investigation revealed that the SC's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the SC's business performance. Being a small company, the SC's business operation is supported by 15 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


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. 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 1,016,041, 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 payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.


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)

ISBEC SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

2,171,915

2,620,247

4,136,325

62,446,862

8,845,163

 

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

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

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

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

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

Total Turnover

2,171,915

2,620,247

4,136,325

62,446,862

8,845,163

Costs of Goods Sold

<1,717,034>

<1,945,948>

-

-

-

 

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

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

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

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

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

Gross Profit

454,881

674,299

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

<188,675>

62,865

108,278

185,455

85,134

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

<188,675>

62,865

108,278

185,455

85,134

Taxation

-

<12,573>

<51,176>

<74,029>

<44,064>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

<188,675>

50,292

57,102

111,426

41,070

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

904,716

854,424

797,322

685,896

644,826

 

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

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

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

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

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

As restated

904,716

854,424

797,322

685,896

644,826

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

716,041

904,716

854,424

797,322

685,896

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

716,041

904,716

854,424

797,322

685,896

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Hire purchase

1,050

5,130

-

-

-

Others

17,380

40,708

-

-

-

 

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

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

 

 

 

 

18,430

45,838

 

 

 

 

 

BALANCE SHEET

 

 

ISBEC SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

216,751

10,231

46,639

120,792

194,344

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

216,751

10,231

46,639

120,792

194,344

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

50,458

98,526

-

-

-

Trade debtors

253,004

22,922

-

-

-

Other debtors, deposits & prepayments

337,011

302,725

-

-

-

Amount due from related companies

625,109

966,065

-

-

-

Amount due from director

225,691

-

-

-

-

Cash & bank balances

554,404

643,203

-

-

-

Others

222,858

546,883

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

2,268,535

2,580,324

5,831,281

7,480,182

7,871,321

 

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

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

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

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

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

TOTAL ASSET

2,485,286

2,590,555

5,877,920

7,600,974

8,065,665

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

592,586

625,387

-

-

-

Other creditors & accruals

240,923

266,090

-

-

-

Hire purchase & lease creditors

36,000

19,296

-

-

-

Provision for taxation

446,258

446,257

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

1,315,767

1,357,030

4,633,630

6,377,849

6,916,373

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

952,768

1,223,294

1,197,651

1,102,333

954,948

 

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

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

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

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

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

TOTAL NET ASSETS

1,169,519

1,233,525

1,244,290

1,223,125

1,149,292

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

300,000

300,000

300,000

300,000

300,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

300,000

300,000

300,000

300,000

300,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

716,041

904,716

854,424

797,322

685,896

 

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

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

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

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

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

TOTAL RESERVES

716,041

904,716

854,424

797,322

685,896

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,016,041

1,204,716

1,154,424

1,097,322

985,896

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Hire purchase creditors

138,000

13,332

-

-

-

Deferred taxation

15,478

15,477

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

153,478

28,809

89,866

125,803

163,396

 

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

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

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

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

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

 

1,169,519

1,233,525

1,244,290

1,223,125

1,149,292

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

ISBEC SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

554,404

643,203

-

-

-

Net Liquid Funds

554,404

643,203

-

-

-

Net Liquid Assets

902,310

1,124,768

1,197,651

1,102,333

954,948

Net Current Assets/(Liabilities)

952,768

1,223,294

1,197,651

1,102,333

954,948

Net Tangible Assets

1,169,519

1,233,525

1,244,290

1,223,125

1,149,292

Net Monetary Assets

748,832

1,095,959

1,107,785

976,530

791,552

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

174,000

32,628

-

-

-

Total Liabilities

1,469,245

1,385,839

4,723,496

6,503,652

7,079,769

Total Assets

2,485,286

2,590,555

5,877,920

7,600,974

8,065,665

Net Assets

1,169,519

1,233,525

1,244,290

1,223,125

1,149,292

Net Assets Backing

1,016,041

1,204,716

1,154,424

1,097,322

985,896

Shareholders' Funds

1,016,041

1,204,716

1,154,424

1,097,322

985,896

Total Share Capital

300,000

300,000

300,000

300,000

300,000

Total Reserves

716,041

904,716

854,424

797,322

685,896

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.42

0.47

-

-

-

Liquid Ratio

1.69

1.83

-

-

-

Current Ratio

1.72

1.90

1.26

1.17

1.14

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

8

14

-

-

-

Debtors Ratio

43

3

-

-

-

Creditors Ratio

126

117

-

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.17

0.03

-

-

-

Liabilities Ratio

1.45

1.15

4.09

5.93

7.18

Times Interest Earned Ratio

<9.24>

2.37

-

-

-

Assets Backing Ratio

3.90

4.11

4.15

4.08

3.83

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

<8.69>

2.40

2.62

0.30

0.96

Net Profit Margin

<8.69>

1.92

1.38

0.18

0.46

Return On Net Assets

<14.56>

8.81

8.70

15.16

7.41

Return On Capital Employed

<14.12>

8.68

8.70

15.16

7.41

Return On Shareholders' Funds/Equity

<18.57>

4.17

4.95

10.15

4.17

Dividend Pay Out Ratio (Times)

0.00

0.00

-

-

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.16

UK Pound

1

Rs.81.74

Euro

1

Rs.70.50

 

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.