MIRA
INFORM REPORT
|
Report Date : |
25.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
MINIDECO SDN. BHD. |
|
|
|
|
Registered Office : |
Menara City One, Letter Box Cp5-01, 3, Jalan Munshi Abdullah, Level 5,
50100 Kuala Lumpur, Wilayah Persekutuan |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
31.12.1997 |
|
|
|
|
Com. Reg. No.: |
456083-X |
|
|
|
|
Legal Form : |
Private Limited (Limited By Share) |
|
|
|
|
Line of Business : |
Importer and Wholesaler of Diamonds |
|
|
|
|
No. of Employees : |
5 |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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. |
: |
456083-X |
|
COMPANY NAME |
: |
MINIDECO SDN. BHD. |
|
FORMER NAME |
: |
N/A |
|
INCORPORATION DATE |
: |
31/12/1997 |
|
COMPANY STATUS |
: |
EXIST |
|
LEGAL FORM |
: |
PRIVATE LIMITED (LIMITED BY SHARE) |
|
LISTED STATUS |
: |
NO |
|
REGISTERED ADDRESS |
: |
MENARA CITY ONE, LETTER BOX CP5-01, 3, JALAN MUNSHI ABDULLAH, LEVEL 5,
50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
BUSINESS ADDRESS |
: |
OFFICE SUITE UNIT A-23-3, TOWER A, MENARA UOA BANGSAR, 5, JALAN
BANGSAR UTAMA 1, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
TEL.NO. |
: |
03-22019192 |
|
FAX.NO. |
: |
03-22881230 |
|
CONTACT PERSON |
: |
UJJWAL MEHTA ( MANAGING DIRECTOR ) |
|
INDUSTRY CODE |
: |
46444 |
|
PRINCIPAL ACTIVITY |
: |
IMPORTER AND WHOLESALER OF DIAMONDS |
|
AUTHORISED CAPITAL |
: |
MYR 5,000,000.00 DIVIDED INTO |
|
ISSUED AND PAID UP CAPITAL |
: |
MYR 1,200,000.00 DIVIDED INTO |
|
SALES |
: |
MYR 19,215,739 [2011] |
|
NET WORTH |
: |
MYR 2,025,862 [2011] |
|
STAFF STRENGTH |
: |
5 [2013] |
|
BANKER (S) |
: |
MALAYAN BANKING BHD |
|
LITIGATION |
: |
CLEAR |
|
DEFAULTER CHECK |
: |
CLEAR |
|
FINANCIAL CONDITION |
: |
POOR |
|
PAYMENT |
: |
FAIR |
|
MANAGEMENT CAPABILITY |
: |
AVERAGE |
|
COMMERCIAL RISK |
: |
LOW |
|
CURRENCY EXPOSURE |
: |
MODERATE |
|
GENERAL REPUTATION |
: |
SATISFACTORY |
|
INDUSTRY OUTLOOK |
: |
AVERAGE GROWTH |
HISTORY / BACKGROUND
The SC is a private limited company and is allowed to have a minimum of
one and a maximum of forty-nine shareholders. As a private limited company, the
SC must have at least two directors. A private limited company is a separate
legal entity from its shareholders. As a separate legal entity, the SC is
capable of owning assets, entering into contracts, sue or be sued by other
companies. The liabilities of the shareholders are to the extent of the equity
they have taken up and the creditors cannot claim on shareholders' personal
assets even if the SC is insolvent. The SC is governed by the Companies Act,
1965 and the company must file its annual returns, together with its financial
statements with the Registrar of Companies.
The SC is principally engaged in the (as a / as an) importer and
wholesaler of diamonds.
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. BALA SUBRAMANIAN A/L MUTHAIAH + |
A-11-5, GREEN PARK, SRI PUTRAMAS, JALAN PUTRAMAS 1, 51200 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
701013-10-6173 A1693556 |
480,000.00 |
40.00 |
|
MS. ROKMINI BT MASANG + |
AG 1-3, JALAN PANDAN INDAH 3/3, PANDAN INDAH, 55100 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA. |
770702-12-5686 |
360,000.00 |
30.00 |
|
UJJWAL MEHTA + |
BLOK A 299-4-4, MENARA BANGSAR, JALAN MAAROF, BANGSAR, MALAYSIA. |
Z2110052 |
180,000.00 |
15.00 |
|
PRINCE SANCHETI + |
BLOCK A 299-4-4 MENARA BANGSAR, JALAN MAAROF, BANGSAR, 59100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
Z2109502 |
180,000.00 |
15.00 |
|
|
|
|
--------------- |
------ |
|
|
|
|
1,200,000.00 |
100.00 |
|
|
|
|
============ |
===== |
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject |
: |
UJJWAL MEHTA |
|
Address |
: |
BLOK A 299-4-4, MENARA BANGSAR, JALAN MAAROF, BANGSAR, MALAYSIA. |
|
IC / PP No |
: |
Z2110052 |
|
Date of Appointment |
: |
20/11/1998 |
DIRECTOR 2
|
Name Of Subject |
: |
PRINCE SANCHETI |
|
Address |
: |
BLOCK A 299-4-4 MENARA BANGSAR, JALAN MAAROF, BANGSAR, 59100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
IC / PP No |
: |
Z2109502 |
|
Nationality |
: |
INDIAN |
DIRECTOR 3
|
Name Of Subject |
: |
MS. ROKMINI BT MASANG |
|
Address |
: |
AG 1-3, JALAN PANDAN INDAH 3/3, PANDAN INDAH, 55100 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA. |
|
New IC No |
: |
770702-12-5686 |
|
Date of Birth |
: |
02/07/1977 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
15/12/2004 |
DIRECTOR 4
|
Name Of Subject |
: |
MR. BALA SUBRAMANIAN A/L MUTHAIAH |
|
Address |
: |
A-11-5, GREEN PARK, SRI PUTRAMAS, JALAN PUTRAMAS 1, 51200 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
IC / PP No |
: |
A1693556 |
|
New IC No |
: |
701013-10-6173 |
|
Date of Birth |
: |
13/10/1970 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
30/05/2006 |
MANAGEMENT
|
1) |
Name of Subject |
: |
UJJWAL MEHTA |
|
|
Position |
: |
MANAGING DIRECTOR |
AUDITOR
|
Auditor |
: |
WSJ & CO |
|
Auditor' Address |
: |
MENARA CITY ONE, LETTER BOX CPS-01, 3, JALAN MUNSHI ABDULLAH, LEVEL 5,
50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
COMPANY SECRETARIES
|
1) |
Company Secretary |
: |
MR. M RAMANATHAN A/L S M MEYYAPPAN |
|
|
IC / PP No |
: |
6057502 |
|
|
New IC No |
: |
600923-10-6815 |
|
|
Address |
: |
15, JALAN DATO ABDUL AZIZ 14/29, 46100 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)
ENCUMBRANCE 1
|
Date of Creation |
: |
03/08/2007 |
||
|
Description Of Charge |
: |
MEMO OF DEPOSIT OF FIXED DEPOSIT RECEIPT, NEGOTIABLE OF CERTIFICATE OF
DEPOSIT (1ST PARTY) & LETTER OF SETOFF
|
||
|
Amount Secured |
: |
RM800,000.00 |
||
|
Description Of Property Affected |
: |
ALL ASSETS OF THE COMPANY
|
||
|
Name & Address Of Chargee |
: |
|
||
|
Form 40 Dated 13/08/2007 |
||||
|
Registered and Numbered 1 In The Register of Charges |
||||
ENCUMBRANCE 2
|
Date of Creation |
: |
22/03/2010 |
||
|
Description Of Charge |
: |
THE ASSIGNMENT
|
||
|
Amount Secured |
: |
N/A |
||
|
Description Of Property Affected |
: |
THE FULL AND ENTIRE BENEFIT OF THE SALE AND PURCHASE AGREEMENT
|
||
|
Name & Address Of Chargee |
: |
|
||
|
Form 40 Dated 07/06/2010 |
||||
|
Registered and Numbered 2 In The Register of Charges |
||||
ENCUMBRANCE 3
|
Date of Creation |
: |
14/07/2011 |
||
|
Description Of Charge |
: |
N/A
|
||
|
Amount Secured |
: |
MYR700,000.00 |
||
|
Description Of Property Affected |
: |
N/A
|
||
|
Name & Address Of Chargee |
: |
|
||
|
Form 40 Dated 31/07/2012 |
||||
|
Registered and Numbered 3 In The Register of Charges |
||||
LEGAL CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the subject
has been involved in any litigation. Our databank consists of 99% of the wound
up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER CHECK AGAINST SC
* We have checked through the SC in our defaulters' database which comprised of
debtors that have been blacklisted by our customers and debtors that have been
placed or assigned to us for collection since 1990. Information was provided by
third party where the debt amount can be disputed. Please check with creditors
for confirmation as alleged debts may have been paid since recorded or are
being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT RECORD
|
SOURCES OF RAW MATERIALS: |
|||
|
Local |
: |
YES |
|
|
Overseas |
: |
YES |
|
|
Import Countries |
: |
INDIA |
|
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 |
[ |
|
] |
|
|
Fair 91-120 Days |
[ |
X |
] |
|
Poor >120 Days |
[ |
|
] |
|
|
|
|
|
|
CLIENTELE
|
Local |
: |
YES |
|||
|
Domestic Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
YES |
|
|
|
|
Export Market |
: |
HONG KONG |
|||
|
Credit Term |
: |
AS AGREED |
|||
|
|
|
|
|
|
|
|
Payment Mode |
: |
CASH |
|||
|
Type of Customer |
: |
JEWELLERY SHOP,AGENTS |
|||
OPERATIONS
|
Goods Traded |
: |
DIAMONDS
|
|
|
|
|
|
|
|
Ownership of premises |
: |
OWNED
|
|
Total Number of Employees: |
|
||||||||
|
YEAR |
2013 |
2010 |
2009 |
|
|||||
|
GROUP |
N/A |
N/A |
N/A |
|
|
|
|
|
|
|
COMPANY |
5 |
3 |
3 |
|
|
|
|
|
|
|
Branch |
: |
NO
|
Other Information:
The SC is principally engaged in the (as a / as an) importer and wholesaler of
diamonds.
We were informed that the SC sells a wide range of gems, colour precious stones
and diomonds.
The SC provides its products based on the customers' requirements.
Besides that the SC also has showroom located at the same premises.
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 |
: |
03-22019192 |
|
Match |
: |
N/A |
|
|
|
|
|
Address Provided by Client |
: |
MALAYSIA |
|
Current Address |
: |
OFFICE SUITE UNIT A-23-3, TOWER A, MENARA UOA BANGSAR, 5, JALAN
BANGSAR UTAMA 1, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
Match |
: |
NO |
|
|
|
|
|
Latest Financial Accounts |
: |
YES |
Other Investigations
On 10th April 2013 we contacted one of the staff from the SC and she provided
some information on the SC.
The address provided is incomplete.
FINANCIAL ANALYSIS
|
Profitability |
|
|
|
|
|
|
|
Turnover |
: |
Increased |
[ |
2007 - 2011 |
] |
|
|
Profit/(Loss) Before Tax |
: |
Decreased |
[ |
2007 - 2011 |
] |
|
|
Return on Shareholder Funds |
: |
Unfavourable |
[ |
3.44% |
] |
|
|
Return on Net Assets |
: |
Acceptable |
[ |
10.33% |
] |
|
|
|
|
|
|
|
|
|
|
The SC's turnover increased steadily as the demand for its products /
services increased due to the goodwill built up over the years.The SC's
profit fell sharply because of the high operating costs incurred. The
unfavourable return on shareholders' funds could indicate that the SC was
inefficient in utilising its assets to generate returns. |
||||||
|
|
|
|
|
|
|
|
|
Working Capital Control |
|
|
|
|
|
|
|
Stock Ratio |
: |
Favourable |
[ |
29 Days |
] |
|
|
Debtor Ratio |
: |
Unfavourable |
[ |
126 Days |
] |
|
|
Creditors Ratio |
: |
Unfavourable |
[ |
94 Days |
] |
|
|
|
|
|
|
|
|
|
|
The SC's stocks were moving fast thus reducing its holding cost. This
had reduced funds being tied up in stocks. 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 |
[ |
1.04 Times |
] |
|
|
Current Ratio |
: |
Unfavourable |
[ |
1.23 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 |
[ |
1.45 Times |
] |
|
|
Gearing Ratio |
: |
Unfavourable |
[ |
1.92 Times |
] |
|
|
|
|
|
|
|
|
|
|
The SC's interest cover was low. If its profits fall or when interest
rate rises, it may not be able to meet all its interest payment. The SC was
highly geared, thus it had a high financial risk. The SC was dependent on
loans to finance its business needs. In times of economic downturn and / or
high interest rate, the SC will become less profitable and competitive than
other firms in the same industry, which are lowly geared. This is because the
SC has to service the interest and to repay the loan, which will erode part
of its profits. The profits will fluctuate depending on the SC's turnover and
the interest it needs to pay. |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment : |
|
|
|
|
|
|
|
Although the SC's turnover had increased, its profits had declined
over the same corresponding period. This could be due to the stiffer market
competition and / or higher operating costs which lowered the SC's profit
margin. The SC was in good liquidity position with its total current
liabilities well covered by its total current assets. With its current net
assets, the SC should be able to repay its short term obligations. If there
is a fall in the SC's profit or any increase in interest rate, the SC may not
be able to generate sufficient cash-flow to service its interest. The SC's
gearing level was high and its going concern will be in doubt if there is no
injection of additional shareholders' funds in times of economic downturn and
/ or high interest rates. |
||||||
|
|
|
|
|
|
|
|
|
Overall financial condition of the SC : POOR |
||||||
MALAYSIA ECONOMIC / INDUSTRY
OUTLOOK
|
Major Economic Indicators: |
2009 |
2010 |
2011 |
2012* |
2013** |
|
|
|
|
|
|
|
|
Population ( Million) |
28.13 |
28.35 |
28.70 |
29.30 |
29.80 |
|
Gross Domestic Products ( % ) |
<0.5> |
7.2 |
5.1 |
5.6 |
5.3 |
|
Domestic Demand ( % ) |
2.9 |
6.3 |
8.2 |
9.4 |
5.6 |
|
Private Expenditure ( % ) |
<2.7> |
8.1 |
8.2 |
8.0 |
7.4 |
|
Consumption ( % ) |
0.7 |
6.7 |
7.1 |
1.0 |
5.7 |
|
Investment ( % ) |
<17.2> |
17.7 |
12.2 |
11.7 |
13.3 |
|
Public Expenditure ( % ) |
5.2 |
3.8 |
8.4 |
13.3 |
1.2 |
|
Consumption ( % ) |
3.1 |
0.2 |
16.1 |
11.3 |
<1.2> |
|
Investment ( % ) |
8.0 |
2.8 |
<0.3> |
15.9 |
4.2 |
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million ) |
89,650 |
118,356 |
116,058 |
106,300 |
110,700 |
|
Government Finance ( MYR Million ) |
<28,450> |
<40,482> |
<45,511> |
<42,297> |
<39,993> |
|
Government Finance to GDP / Fiscal Deficit ( % ) |
<4.8> |
<5.6> |
<5.4> |
<4.5> |
<4.0> |
|
Inflation ( % Change in Composite CPI) |
<5.2> |
5.1 |
3.1 |
1.6 |
2.5 |
|
Unemployment Rate |
4.5 |
3.9 |
3.3 |
3.2 |
3.0 |
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion ) |
331 |
329 |
415 |
427 |
- |
|
Average Risk-Weighted Capital Adequacy Ratio ( % ) |
2.87 |
2.20 |
3.50 |
2.20 |
- |
|
Average 3 Months of Non-performing Loans ( % ) |
11.08 |
15.30 |
14.80 |
14.70 |
- |
|
Average Base Lending Rate ( % ) |
5.53 |
6.30 |
6.60 |
6.53 |
- |
|
Business Loans Disbursed( % ) |
10.5 |
14.7 |
15.3 |
32.2 |
- |
|
Foreign Investment ( MYR Million ) |
22,156.8 |
22,517.9 |
23,546.1 |
26,230.4 |
- |
|
Consumer Loans ( % ) |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
Registration of New Companies ( No. ) |
41,578 |
44,148 |
45,455 |
45,441 |
- |
|
Registration of New Companies ( % ) |
<0.1> |
6.2 |
3.0 |
<0.0> |
- |
|
Liquidation of Companies ( No. ) |
39,075 |
25,585 |
132,476 |
- |
- |
|
Liquidation of Companies ( % ) |
39.6 |
<34.5> |
417.8 |
- |
- |
|
|
|
|
|
|
|
|
Registration of New Business ( No. ) |
312,581 |
271,414 |
284,598 |
324,761 |
- |
|
Registration of New Business ( % ) |
- |
- |
- |
- |
- |
|
Business Dissolved ( No. ) |
19,345 |
19,738 |
20,121 |
- |
- |
|
Business Dissolved ( % ) |
2.4 |
2.0 |
1.9 |
- |
- |
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit ) |
486.3 |
543.6 |
535.1 |
552.2 |
- |
|
Cellular Phone Subscribers ( Million ) |
30.1 |
32.8 |
35.3 |
38.5 |
- |
|
Tourist Arrival ( Million Persons ) |
23.6 |
24.6 |
24.7 |
25.0 |
- |
|
Hotel Occupancy Rate ( % ) |
58.0 |
63.0 |
60.6 |
62.4 |
- |
|
|
|
|
|
|
|
|
Credit Cards Spending ( % ) |
12.8 |
14.1 |
15.6 |
12.6 |
- |
|
Bad Cheque Offenders (No.) |
36,667 |
33,568 |
32,627 |
26,982 |
- |
|
Individual Bankruptcy ( No.) |
16,228 |
18,119 |
19,167 |
19,575 |
- |
|
Individual Bankruptcy ( % ) |
16.7 |
11.7 |
5.8 |
2.1 |
- |
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ): |
2009 |
2010 |
2011 |
2012* |
2013** |
|
|
|
|
|
|
|
|
Agriculture |
0.4 |
2.1 |
5.9 |
0.6 |
2.4 |
|
Palm Oil |
<1.1> |
<3.4> |
10.8 |
<2.8> |
- |
|
Rubber |
<19.8> |
9.9 |
6.1 |
<0.6> |
- |
|
Forestry & Logging |
<5.9> |
<3.3> |
<7.6> |
<2.2> |
- |
|
Fishing |
5.5 |
5.6 |
2.1 |
<0.7> |
- |
|
Other Agriculture |
9.0 |
7.9 |
7.1 |
6.4 |
- |
|
Industry Non-Performing Loans ( MYR Million ) |
413.7 |
508.4 |
634.1 |
- |
- |
|
% of Industry Non-Performing Loans |
1.3 |
2.1 |
3.2 |
- |
- |
|
|
|
|
|
|
|
|
Mining |
<3.8> |
0.2 |
<5.7> |
1.5 |
2.7 |
|
Oil & Gas |
2.1 |
0.5 |
<1.7> |
- |
- |
|
Other Mining |
- |
- |
- |
- |
- |
|
Industry Non-performing Loans ( MYR Million ) |
44.2 |
49.7 |
46.5 |
- |
- |
|
% of Industry Non-performing Loans |
0.1 |
0.1 |
0.1 |
- |
- |
|
|
|
|
|
|
|
|
Manufacturing # |
<9.4> |
11.4 |
4.7 |
4.2 |
4.9 |
|
Exported-oriented Industries |
<19.0> |
12.1 |
2.8 |
4.1 |
- |
|
Electrical & Electronics |
<30.3> |
28.4 |
<4.9> |
1.6 |
- |
|
Rubber Products |
<10.1> |
25.3 |
15.4 |
3.6 |
- |
|
Wood Products |
<24.1> |
20.1 |
<4.9> |
4.6 |
- |
|
Textiles & Apparel |
<19.5> |
<0.4> |
14.8 |
<7.1> |
- |
|
Domestic-oriented Industries |
<9.8> |
16.3 |
6.5 |
8.6 |
- |
|
Food, Beverages & Tobacco |
0.2 |
3.0 |
4.2 |
- |
- |
|
Chemical & Chemical Products |
<7.7> |
16.2 |
5.5 |
9.9 |
- |
|
Plastic Products |
<9.1> |
2.4 |
3.8 |
- |
- |
|
Iron & Steel |
<32.7> |
29.3 |
2.4 |
- |
- |
|
Fabricated Metal Products |
<2.5> |
14.9 |
25.2 |
- |
- |
|
Non-metallic Mineral |
<15.5> |
20.2 |
27.1 |
6.6 |
- |
|
Transport Equipment |
<13.5> |
36.5 |
<10.4> |
13.7 |
- |
|
Paper & Paper Products |
<5.0> |
18.7 |
14.8 |
<7.8> |
- |
|
Crude Oil Refineries |
0.2 |
<11.4> |
9.3 |
- |
- |
|
Industry Non-Performing Loans ( MYR Million ) |
6,007.3 |
6,217.5 |
6,537.2 |
- |
- |
|
% of Industry Non-Performing Loans |
18.3 |
23.8 |
25.7 |
- |
- |
|
|
|
|
|
|
|
|
Construction |
5.8 |
5.1 |
4.4 |
15.5 |
11.2 |
|
Industry Non-Performing Loans ( MYR Million ) |
3,241.8 |
4,038.5 |
3,856.9 |
- |
- |
|
% of Industry Non-Performing Loans |
9.9 |
10.7 |
10.2 |
- |
- |
|
|
|
|
|
|
|
|
Services |
2.6 |
6.5 |
6.4 |
5.5 |
5.6 |
|
Electric, Gas & Water |
0.4 |
8.5 |
5.6 |
4.8 |
- |
|
Transport, Storage & Communication |
1.6 |
7.7 |
6.5 |
7.3 |
- |
|
Wholesale, Retail, Hotel & Restaurant |
2.8 |
4.7 |
5.2 |
6.9 |
- |
|
Finance, Insurance & Real Estate |
3.8 |
6.1 |
6.3 |
6.5 |
- |
|
Government Services |
2.0 |
6.7 |
7.6 |
5.6 |
- |
|
Other Services |
4.4 |
4.2 |
5.4 |
5.7 |
- |
|
Industry Non-Performing Loans ( MYR Million ) |
6,631.3 |
7,384.6 |
6,825.2 |
- |
- |
|
% of Industry Non-Performing Loans |
20.2 |
25.7 |
23.4 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary |
|
|
|
|
|
|
** Forecast |
|
|
|
|
|
|
# Based On Manufacturing Production Index |
|||||
INDUSTRY ANALYSIS
|
MSIC CODE |
|
|
46444 : Wholesale of jewellery |
|
|
|
|
|
INDUSTRY : |
TRADING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth |
|
CREDIT RISK EVALUATION &
RECOMMENDATION
Incorporated in 1997, the SC is a Private Limited company, focusing on importer
and wholesaler of diamonds. 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 capital standing of the SC is fair. With an adequate share
capital, the SC has the potential of expanding its business in future.
Over the years, the SC has penetrated into both the local and overseas market.
The SC has positioned itself in the global market and is competing in the
industry. Its stable clientele base will enable the SC to further enhance its
business in the near term. Being a small company, the SC's business operation
is supported by 5 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.
Financially, the SC registered a higher turnover compared to previous year.
However, its profits showed a reverse trend. The lower profit achieved was a
result of higher operating cost and increased competition. 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. The high gearing ratio clearly implied that the SC was
supported by more debt than equity. Thus, the SC is exposed to high financial
risk. Given a positive net worth standing at MYR 2,025,862, the SC should be
able to maintain its business in the near terms.
The SC's supplier are from both the local and overseas countries. This will
eliminates the risk of dependency on deliveries from a number of key suppliers
and insufficient quantities of its raw materials. Overall the SC has a good
control over its resources.
The SC's overall payment habit is fair and this clearly implied a weak credit
control of the SC.
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) |
|
MINIDECO 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 |
FULL |
FULL |
FULL |
|
Currency |
MYR |
MYR |
MYR |
MYR |
MYR |
|
|
|
|
|
|
|
|
TURNOVER |
19,215,739 |
17,409,641 |
15,876,447 |
16,618,491 |
12,098,036 |
|
Other Income |
123,567 |
197,929 |
- |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
Total Turnover |
19,339,306 |
17,607,570 |
15,876,447 |
16,618,491 |
12,098,036 |
|
Costs of Goods Sold |
<18,344,546> |
<16,580,717> |
- |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
Gross Profit |
994,760 |
1,026,853 |
- |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS |
108,846 |
254,658 |
105,354 |
124,548 |
108,457 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT/(LOSS) BEFORE TAXATION |
108,846 |
254,658 |
105,354 |
124,548 |
108,457 |
|
Taxation |
<39,185> |
<31,266> |
<25,967> |
<33,092> |
<31,511> |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT/(LOSS) AFTER TAXATION |
69,661 |
223,392 |
79,387 |
91,456 |
76,946 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD |
|
|
|
|
|
|
As previously reported |
756,201 |
532,809 |
453,422 |
361,966 |
285,020 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
As restated |
756,201 |
532,809 |
453,422 |
361,966 |
285,020 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
825,862 |
756,201 |
532,809 |
453,422 |
361,966 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
825,862 |
756,201 |
532,809 |
453,422 |
361,966 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L) |
|
|
|
|
|
|
Bank overdraft |
23,553 |
17,175 |
- |
- |
- |
|
Hire purchase |
6,315 |
4,371 |
- |
1,944 |
811 |
|
Term loan / Borrowing |
56,887 |
51,537 |
- |
- |
- |
|
Others |
156,732 |
134,902 |
156,352 |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
243,487 |
207,985 |
156,352 |
1,944 |
811 |
BALANCE SHEET
|
MINIDECO SDN. BHD. |
|
ASSETS EMPLOYED: |
|
|
|
|
|
|
FIXED ASSETS |
1,572,990 |
1,664,106 |
688,860 |
725,892 |
759,620 |
|
|
|
|
|
|
|
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL LONG TERM ASSETS |
1,572,990 |
1,664,106 |
688,860 |
725,892 |
759,620 |
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
Stocks |
1,512,759 |
1,886,328 |
1,900,547 |
1,110,560 |
1,060,397 |
|
Trade debtors |
6,640,394 |
6,275,291 |
7,204,430 |
6,077,134 |
5,198,315 |
|
Other debtors, deposits & prepayments |
53,983 |
53,983 |
158,839 |
26,000 |
16,000 |
|
Short term deposits |
- |
- |
878,556 |
831,904 |
740,556 |
|
Deposits with financial institutions |
1,385,914 |
919,756 |
- |
- |
- |
|
Cash & bank balances |
301,223 |
34,827 |
26,946 |
253,823 |
137,499 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL CURRENT ASSETS |
9,894,273 |
9,170,185 |
10,169,318 |
8,299,421 |
7,152,767 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL ASSET |
11,467,263 |
10,834,291 |
10,858,178 |
9,025,313 |
7,912,387 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Trade creditors |
4,700,234 |
5,066,048 |
5,769,437 |
4,771,385 |
5,265,840 |
|
Other creditors & accruals |
172,559 |
466,910 |
755,901 |
979,662 |
24,650 |
|
Hire purchase & lease creditors |
143,576 |
180,071 |
55,623 |
12,156 |
12,156 |
|
Bank overdraft |
382,137 |
202,530 |
224,656 |
200,624 |
196,006 |
|
Short term borrowings/Term loans |
- |
- |
- |
54,000 |
54,000 |
|
Other borrowings |
1,986,000 |
1,590,106 |
1,610,000 |
1,271,738 |
509,462 |
|
Amounts owing to director |
643,524 |
390,966 |
492,414 |
351,537 |
522,171 |
|
Provision for taxation |
28,310 |
20,428 |
14,972 |
19,060 |
30,858 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL CURRENT LIABILITIES |
8,056,340 |
7,917,059 |
8,923,003 |
7,660,162 |
6,615,143 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
NET CURRENT ASSETS/(LIABILITIES) |
1,837,933 |
1,253,126 |
1,246,315 |
639,259 |
537,624 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL NET ASSETS |
3,410,923 |
2,917,232 |
1,935,175 |
1,365,151 |
1,297,244 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
|
|
|
|
|
|
SHARE CAPITAL |
|
|
|
|
|
|
Ordinary share capital |
1,200,000 |
1,200,000 |
1,000,000 |
500,000 |
500,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL SHARE CAPITAL |
1,200,000 |
1,200,000 |
1,000,000 |
500,000 |
500,000 |
|
|
|
|
|
|
|
|
RESERVES |
|
|
|
|
|
|
Retained profit/(loss) carried forward |
825,862 |
756,201 |
532,809 |
453,422 |
361,966 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL RESERVES |
825,862 |
756,201 |
532,809 |
453,422 |
361,966 |
|
|
|
|
|
|
|
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
SHAREHOLDERS' FUNDS/EQUITY |
2,025,862 |
1,956,201 |
1,532,809 |
953,422 |
861,966 |
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES |
|
|
|
|
|
|
Long term loans |
1,385,061 |
961,031 |
402,366 |
356,106 |
367,499 |
|
Hire purchase creditors |
- |
- |
- |
55,623 |
67,779 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL LONG TERM LIABILITIES |
1,385,061 |
961,031 |
402,366 |
411,729 |
435,278 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
3,410,923 |
2,917,232 |
1,935,175 |
1,365,151 |
1,297,244 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
|
|
|
|
|
FINANCIAL RATIO
|
MINIDECO SDN. BHD. |
|
TYPES OF FUNDS |
|
|
|
|
|
|
Cash |
301,223 |
34,827 |
905,502 |
1,085,727 |
878,055 |
|
Net Liquid Funds |
<80,914> |
<167,703> |
680,846 |
831,103 |
628,049 |
|
Net Liquid Assets |
325,174 |
<633,202> |
<654,232> |
<471,301> |
<522,773> |
|
Net Current Assets/(Liabilities) |
1,837,933 |
1,253,126 |
1,246,315 |
639,259 |
537,624 |
|
Net Tangible Assets |
3,410,923 |
2,917,232 |
1,935,175 |
1,365,151 |
1,297,244 |
|
Net Monetary Assets |
<1,059,887> |
<1,594,233> |
<1,056,598> |
<883,030> |
<958,051> |
|
BALANCE SHEET ITEMS |
|
|
|
|
|
|
Total Borrowings |
3,896,774 |
2,933,738 |
2,292,645 |
1,950,247 |
1,206,902 |
|
Total Liabilities |
9,441,401 |
8,878,090 |
9,325,369 |
8,071,891 |
7,050,421 |
|
Total Assets |
11,467,263 |
10,834,291 |
10,858,178 |
9,025,313 |
7,912,387 |
|
Net Assets |
3,410,923 |
2,917,232 |
1,935,175 |
1,365,151 |
1,297,244 |
|
Net Assets Backing |
2,025,862 |
1,956,201 |
1,532,809 |
953,422 |
861,966 |
|
Shareholders' Funds |
2,025,862 |
1,956,201 |
1,532,809 |
953,422 |
861,966 |
|
Total Share Capital |
1,200,000 |
1,200,000 |
1,000,000 |
500,000 |
500,000 |
|
Total Reserves |
825,862 |
756,201 |
532,809 |
453,422 |
361,966 |
|
LIQUIDITY (Times) |
|
|
|
|
|
|
Cash Ratio |
0.04 |
0.00 |
0.10 |
0.14 |
0.13 |
|
Liquid Ratio |
1.04 |
0.92 |
0.93 |
0.94 |
0.92 |
|
Current Ratio |
1.23 |
1.16 |
1.14 |
1.08 |
1.08 |
|
WORKING CAPITAL CONTROL (Days) |
|
|
|
|
|
|
Stock Ratio |
29 |
40 |
44 |
24 |
32 |
|
Debtors Ratio |
126 |
132 |
166 |
133 |
157 |
|
Creditors Ratio |
94 |
112 |
133 |
105 |
159 |
|
SOLVENCY RATIOS (Times) |
|
|
|
|
|
|
Gearing Ratio |
1.92 |
1.50 |
1.50 |
2.05 |
1.40 |
|
Liabilities Ratio |
4.66 |
4.54 |
6.08 |
8.47 |
8.18 |
|
Times Interest Earned Ratio |
1.45 |
2.22 |
1.67 |
65.07 |
134.73 |
|
Assets Backing Ratio |
2.84 |
2.43 |
1.61 |
1.14 |
1.08 |
|
PERFORMANCE RATIO (%) |
|
|
|
|
|
|
Operating Profit Margin |
0.57 |
1.46 |
0.66 |
0.75 |
0.90 |
|
Net Profit Margin |
0.36 |
1.28 |
0.50 |
0.55 |
0.64 |
|
Return On Net Assets |
10.33 |
15.86 |
13.52 |
9.27 |
8.42 |
|
Return On Capital Employed |
8.95 |
14.02 |
11.81 |
7.75 |
7.01 |
|
Return On Shareholders' Funds/Equity |
3.44 |
11.42 |
5.18 |
9.59 |
8.93 |
|
Dividend Pay Out Ratio (Times) |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
NOTES TO ACCOUNTS |
|
|
|
|
|
|
Contingent Liabilities |
0 |
0 |
0 |
0 |
0 |
DIAMOND INDUSTRY –
INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
-
The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
-
Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and
philanthropy.
-
Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
-
The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
-
Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
DIAMOND SAGA –
DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
-
Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.61 |
|
|
1 |
Rs.83.98 |
|
Euro |
1 |
Rs.71.94 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.