MIRA INFORM REPORT

 

 

Report Date :

02.10.2013

 

IDENTIFICATION DETAILS

 

Name :

IEI ENVIRONMENTAL MANAGEMENT (M) SDN. BHD.

 

 

Registered Office :

Suite 1.00a, Wisma Yakin, Jalan Masjid India, 6th Floor, 50100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

11.03.2004

 

 

Com. Reg. No.:

645229-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in Providing engineering and consultancy services for the water treatment and environmental protection.

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Slow

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. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. 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 about 35% of government revenue in 2011. Bank Negera Malaysia (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.

:

645229-M

COMPANY NAME

:

IEI ENVIRONMENTAL MANAGEMENT (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

11/03/2004

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SUITE 1.00A, WISMA YAKIN, JALAN MASJID INDIA, 6TH FLOOR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

D5-3A-5,SOLARIS DUTAMAS, JALAN DUTAMAS 1, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-62055479

FAX.NO.

:

03-62054479

WEB SITE

:

WWW.IONINDIA.COM

CONTACT PERSON

:

ANIL MANOCHA ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

71109

PRINCIPAL ACTIVITY

:

PROVIDING ENGINEERING AND CONSULTANCY SERVICES FOR THE WATER TREATMENT AND ENVIRONMENTAL PROTECTION

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARE 1,000,000.00 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 923,067 [2013]

NET WORTH

:

MYR <102,380> [2013]

 

 

 

STAFF STRENGTH

:

N/A

BANKER (S)

:

CIMB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

WEAK

 

 

 

COMMERCIAL RISK

:

MODERATE

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) providing engineering and consultancy services for the water treatment and environmental protection.

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

(%)

ION EXCHANGE (INDIA) LTD

TIECICON HOUSE, DR.E.MOSES ROAD, MAHALAXMI, MUMBAI-400011, INDIA.

1114258

150,000.00

60.00

IEI WATER-TECH (M) SDN. BHD.

SUITE 1.00A, WISMA YAKIN, JALAN MASJID INDIA, 6TH FLOOR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

591941K

100,000.00

40.00

 

 

 

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

------

 

 

 

250,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

ANKUR PATNI

Address

:

P.491, CTI SCHEME XI VII, KEYATALLA LANE, CALCUTTA-29, INDIA.

IC / PP No

:

A9043138

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

19/08/2005

Remark

:

ALTERNATE DIRECTOR TO MAHABIR PRASAD PATNI

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MAHABIR PRASAD PATNI

Address

:

7A, LALA LAJPAT RAI SARANI, CULCUTTA-20, INDIA.

IC / PP No

:

F2961015

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

19/08/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

ANIL MANOCHA

Address

:

2-23, JALAN AMPANG TENGAH, SRI MAHKOTA CONDO, 55000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

Z1586389

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

10/05/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

RAJESH SHARMA

Address

:

32, VIDHANZ APARTMENT, NARAYAN DABHOLKAR ROAD, CUMBALLA HILL, GAMDEUZ-MUMBAI 6, INDIA.

IC / PP No

:

Z1463686

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

10/05/2004

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

PURANDARE YOGESH WAMAN

Address

:

10-7-1, ROBSON CONDOMINIUM, PERSIARAN SYED PUTRA 2, 500740, MALAYSIA.

IC / PP No

:

Z1113580

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

21/08/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 6

 

Name Of Subject

:

DINESH SHARMA

Address

:

E-107 11, NARAINA VIHAR, NEW DELHI-28, INDIA.

IC / PP No

:

Z1402229

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

19/08/2005

Remark

:

ALTERNATE DIRECTOR TO RAJESH SHARMA

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

ANIL MANOCHA

 

Position

:

DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

RAVINDRA KRISHNA & ASSOCIATES

Auditor' Address

:

10-2-2, QUEEN'S AVENUE, BLOCK 10, JALAN BAYAM, 2ND FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. MANOHUR A/L K.KUMARAN

 

IC / PP No

:

5857769

 

New IC No

:

600424-01-5847

 

Address

:

12, JALAN 31/74A, KOTA KEMUNING, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation. 

 

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank. 

No winding up petition was found in our databank. 



DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. 

No blacklisted record & debt collection case was found in our defaulters' databank. 

 

PAYMENT RECORD

 

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A

 

 

 


The SC is a service provider and it does not deal with trade suppliers. 

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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

X

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

ASIA

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

OPERATIONS

 

Services

:

PROVIDING ENGINEERING AND CONSULTANCY SERVICES FOR THE WATER TREATMENT AND ENVIRONMENTAL PROTECTION

 

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) providing engineering and consultancy services for the water treatment and environmental protection. 

The SC is a premier company in water and environment management.

The SC provides water treatment solution and environmental protection services. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-62055479

Match

:

N/A

 

 

 

Address Provided by Client

:

MALAYSIA

Current Address

:

D5-3A-5,SOLARIS DUTAMAS, JALAN DUTAMAS 1, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 26th September 2013 we contacted one of the staff from the SC and she provided some information on the SC.

The address provided is incomplete.

The SC refused to disclose its number of employees.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Unfavourable

[

100.07%

]

 

Return on Net Assets

:

Unfavourable

[

126.08%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The SC could be more efficient in controlling its operating costs and had managed to reduce its losses during the year. Although the SC's returns showed positive figures it is not reflective of the true situation. The SC incurred losses during the year and its shareholders' funds have turned red. The positive returns on shareholders' funds is the result of losses divided by negative shareholders' funds. The SC's management was inefficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

45 Days

]

 

Debtor Ratio

:

Unfavourable

[

146 Days

]

 

Creditors Ratio

:

Favourable

[

0 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 SC had a favourable creditors' ratio where the SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Unfavourable

[

0.62 Times

]

 

Current Ratio

:

Unfavourable

[

0.75 Times

]

 

 

 

 

 

 

 

 

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was nil as it did not pay any interest during the year. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The SC's turnover showed a volatile trend but its losses were lower when compared to the previous corresponding period. This could suggest that the SC was more efficient in its operating cost control and was more competitive. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

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 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

 

 

 

 



INDUSTRY ANALYSIS

 

MSIC CODE

71109 : Other architectural and engineering activities and related technical consultancy n.e.c.

 

 

INDUSTRY :

CONSTRUCTION

 

 

 

The construction sector consists of four subsectors: residential, non-residential, civil engineering and special trade works. During a period of rapid economic expansion, the sector generally outperforms Gross Domestic Product (GDP) growth. 

 

Construction's contribution to gross domestic product (GDP) is expected to fall to 11.2% in 2013 from 15 % in 2012, with all subsectors registering steady growth. The sector is expected to benefit from the acceleration of ongoing construction activities, particularly from the Economic Transformation Programme (ETP) and Second Rolling Plan (RP2) construction-related projects. Of significance, exploration activities in O&G industries and major projects such as the electrified double-tracking between lpoh -Padang Besar, LPT2 Jabur - Kuala Terengganu, MRT and the River of Life are expected to drive the growth of the civil engineering subsector. The non-residential subsector is expected to expand spurred by the industrial building segment and the commencement of construction of the Tun Razak Exchange (TRX). The residential subsector is also projected to expand, albeit at a moderate pace, after recording several years of strong growth. Key housing development projects, particularly in Sungai Buloh and Bandar Malaysia in Sungai Besi, which are expected to commence in 2013, will support residential construction activities. According to the Minister of Finance, the domestic demand is expected to grow at 5.6% and will remain the main driver of growth in 2013 underpinned by strong private sector expenditure.

 

The industry is set to receive a further boost from a wave of new developments earmarked for 2013, including rail projects worth an estimated $52 billion that should be launched in the coming year. It was predicted that the growth in other sectors will largely drive Malaysia's economy but the construction sector's contribution to GDP could still remain stable. However, while the construction sector is expected to have a solid 2013, it remains hampered by a shortage of skilled labourers, with rapid growth in recent years triggering a drain on its workforce. In late November of 2012, the Builders Association Malaysia (MBAM) request the government to do more to facilitate the training of building workers or run the risk of supplyside bottlenecks delaying new projects.

 

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2004, the SC is a Private Limited company, focusing on providing engineering and consultancy services for the water treatment and environmental protection. Having been in business for 9 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. The capital standing of the SC is weak. The SC may face difficulties to expand its business compared to other large corporation. Without a strong capital, the business expansion opportunities of the SC is limited. 

Our investigation revealed that the SC serves both local and overseas clients. Penetrating into the overseas countries has well diversified its business risk. However, being a loss making company indicates that the SC faces difficulties in the market. Overall, we regard that the SC's management capability is weak. Without capable management, the SC is unlikely to be successful and often contribute to unacceptable levels of accountability. Weak management can affect productivity, profitability, sales growth and ultimately can result in the failure of a business. 

Despite the higher turnover, the SC suffered pre-tax losses which reflected a highly competitive business environment. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. The SC's unfavourable financial performance over the years has wiped out its shareholders' funds to a deficit of MYR 102,380. Therefore, the SC as a going concern is much dependent on its ability to generate sufficient cash flow and obtain additional financing to meet its future obligations. 

Without a strong assets backing, the SC may face difficulties in getting loans for its future expansion and continued growth. 

We regard that the SC's overall payment habit is fair. With poor financial condition, the SC may unable to pay its creditors on the given period of time. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. However, the SC does not take any advantage from this favourable condition as it is making losses in this few years. The SC should adopt more competitive strategies to retain its business position in the market. 

Based on the above unfavourable condition, we regard granting credit to the SC to be quite risky. Hence, credit is not recommended.

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

IEI ENVIRONMENTAL MANAGEMENT (M) SDN. BHD.

 

Financial Year End

2013-03-31

2012-03-31

2011-03-31

2010-03-31

2009-03-31

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

923,067

270,566

358,532

484,436

382,667

 

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

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

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

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

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

Total Turnover

923,067

270,566

358,532

484,436

382,667

Costs of Goods Sold

<692,236>

<208,243>

-

-

-

 

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

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

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

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

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

Gross Profit

230,831

62,323

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

<129,085>

<192,489>

7,366

4,635

14,499

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

<129,085>

<192,489>

7,366

4,635

14,499

Taxation

26,633

35,621

<456>

<2,217>

<3,901>

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

<102,452>

<156,868>

6,910

2,418

10,598

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

<249,928>

<93,060>

<99,970>

<102,388>

<112,986>

 

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

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

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

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

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

As restated

<249,928>

<93,060>

<99,970>

<102,388>

<112,986>

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

<352,380>

<249,928>

<93,060>

<99,970>

<102,388>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<352,380>

<249,928>

<93,060>

<99,970>

<102,388>

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

IEI ENVIRONMENTAL MANAGEMENT (M) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

64,630

66,674

61,063

23,449

55,616

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Deferred assets

68,012

41,379

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

68,012

41,379

-

-

-

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

132,642

108,053

61,063

23,449

55,616

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

114,060

70,003

-

-

-

Trade debtors

370,025

315,727

-

-

-

Other debtors, deposits & prepayments

171,619

88,259

-

-

-

Cash & bank balances

35,092

13,720

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

690,796

487,709

394,161

626,832

371,498

 

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

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

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

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

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

TOTAL ASSET

823,438

595,762

455,224

650,281

427,114

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Other creditors & accruals

95,801

206,045

-

-

-

Amounts owing to holding company

830,017

389,645

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

925,818

595,690

281,291

483,345

250,395

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<235,022>

<107,981>

112,870

143,487

121,103

 

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

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

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

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

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

TOTAL NET ASSETS

<102,380>

72

173,933

166,936

176,719

 

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

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

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

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

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

 

 

 

 

 

 

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

<352,380>

<249,928>

<93,060>

<99,970>

<102,388>

 

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

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

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

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

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

TOTAL RESERVES

<352,380>

<249,928>

<93,060>

<99,970>

<102,388>

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

<102,380>

72

156,940

150,030

147,612

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

TOTAL LONG TERM LIABILITIES

-

-

16,993

16,906

29,107

 

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

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

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

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

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

 

<102,380>

72

173,933

166,936

176,719

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

IEI ENVIRONMENTAL MANAGEMENT (M) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

35,092

13,720

-

-

-

Net Liquid Funds

35,092

13,720

-

-

-

Net Liquid Assets

<349,082>

<177,984>

112,870

143,487

121,103

Net Current Assets/(Liabilities)

<235,022>

<107,981>

112,870

143,487

121,103

Net Tangible Assets

<102,380>

72

173,933

166,936

176,719

Net Monetary Assets

<349,082>

<177,984>

95,877

126,581

91,996

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

-

-

-

Total Liabilities

925,818

595,690

298,284

500,251

279,502

Total Assets

823,438

595,762

455,224

650,281

427,114

Net Assets

<102,380>

72

173,933

166,936

176,719

Net Assets Backing

<102,380>

72

156,940

150,030

147,612

Shareholders' Funds

<102,380>

72

156,940

150,030

147,612

Total Share Capital

250,000

250,000

250,000

250,000

250,000

Total Reserves

<352,380>

<249,928>

<93,060>

<99,970>

<102,388>

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.04

0.02

-

-

-

Liquid Ratio

0.62

0.70

-

-

-

Current Ratio

0.75

0.82

1.40

1.30

1.48

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

45

94

-

-

-

Debtors Ratio

146

426

-

-

-

Creditors Ratio

0

0

-

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

-

-

-

Liabilities Ratio

<9.04>

8,273.47

1.90

3.33

1.89

Times Interest Earned Ratio

0.00

0.00

-

-

-

Assets Backing Ratio

<0.41>

0.00

0.70

0.67

0.71

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

<13.98>

<71.14>

2.05

0.96

3.79

Net Profit Margin

<11.10>

<57.98>

1.93

0.50

2.77

Return On Net Assets

126.08

<267,345.83>

4.23

2.78

8.20

Return On Capital Employed

126.08

<267,345.83>

4.23

2.78

8.20

Return On Shareholders' Funds/Equity

100.07

<217,872.22>

4.40

1.61

7.18

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.62.36

UK Pound

1

Rs.101.20

Euro

1

Rs.84.54

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.