MIRA INFORM REPORT

 

 

Report Date :

09.04.2014

 

IDENTIFICATION DETAILS

 

Name :

STYLON DESIGN (M) SDN. BHD.

 

 

Registered Office :

38, Lorong Yap Hin, Off Jalan Pasar, 55100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

21.12.1990

 

 

Com. Reg. No.:

209973-K

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

engaged in the interior designing and consultation services.

 

 

No. of Employees

20 [2014]

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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.

:

209973-K

COMPANY NAME

:

STYLON DESIGN (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

21/12/1990

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

38, LORONG YAP HIN, OFF JALAN PASAR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

1, JALAN SERINDIT 3, BANDAR PUCHONG JAYA, , 47170 PUCHONG JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-58916870

FAX.NO.

:

03-58916871

CONTACT PERSON

:

LEONG FAT MEN ( DIRECTOR )

INDUSTRY CODE

:

74101

PRINCIPAL ACTIVITY

:

INTERIOR DECORATION

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 230,003.00 DIVIDED INTO 
ORDINARY SHARES 3 CASH AND 230,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 18,319,877 [2012]

NET WORTH

:

MYR 1,430,733 [2012]

STAFF STRENGTH

`

20 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) interior decoration.

 

The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 500,000.00

MYR 230,003.00

20/05/1994

MYR 500,000.00

MYR 130,003.00

21/12/1990

MYR 100,000.00

MYR 3.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. FOO HEE KUAN +

300-3-11, BLOCK M, OBD GARDEN, TOWER CONDOMINIUM, JALAN DESA UTAMA, TAMAN DESA, OFF JALAN KELANG LAMA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

571103-10-5569 5306249

80,501.00

35.00

MR. LEONG FAT MEN +

C-07-12, JALAN 1/155B, GREENFIELD APARTMENT, BUKIT JALIL, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

560615-05-5477 4966497

80,501.00

35.00

MR. ANG KOK KWANG +

78, JALAN JALIL PERKASA 9, TAMAN ESPLANAD, BUKIT JALIL, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

561110-10-5859 5190745

69,001.00

30.00

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

------

230,003.00

100.00

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

=====

+ Also Director


DIRECTORS


DIRECTOR 1

Name Of Subject

:

MR. ANG KOK KWANG

Address

:

78, JALAN JALIL PERKASA 9, TAMAN ESPLANAD, BUKIT JALIL, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5190745

New IC No

:

561110-10-5859

Date of Birth

:

10/11/1956

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

21/12/1990

 

DIRECTOR 2

Name Of Subject

:

MR. LEONG FAT MEN

Address

:

C-07-12, JALAN 1/155B, GREENFIELD APARTMENT, BUKIT JALIL, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

4966497

New IC No

:

560615-05-5477

Date of Birth

:

15/06/1956

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

21/12/1990

 

DIRECTOR 3

Name Of Subject

:

MR. FOO HEE KUAN

Address

:

300-3-11, BLOCK M, OBD GARDEN, TOWER CONDOMINIUM, JALAN DESA UTAMA, TAMAN DESA, OFF JALAN KELANG LAMA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5306249

New IC No

:

571103-10-5569

Date of Birth

:

03/11/1957

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

21/12/1990




 


MANAGEMENT

 

 

 

1)

Name of Subject

:

LEONG FAT MEN

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

ALLAN CHOONG & CO.

Auditor' Address

:

32A, LORONG YAP HIN, OFF JALAN PASAR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. CHEONG SIEW KEONG

IC / PP No

:

0491247

New IC No

:

460516-10-5127

Address

:

10, JALAN BADAM 7, TAMAN RAKYAT, CHERAS, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

2)

Company Secretary

:

MR. CHOONG BOON GAN

IC / PP No

:

7311622

New IC No

:

640220-10-7615

Address

:

101A, VILLA LAMAN TASIK, 16, JALAN 7/106, BANDAR SRI PERMAISURI, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

15/02/1994

LOAN AGREEMENT & ASSIGNMENT

UNITED OVERSEAS BANK MALAYSIA BHD

MYR 185,000.00

Satisfied

2

02/09/1996

N/A

DEUTSCHE BANK MALAYSIA BERHAD

-

Satisfied

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank against the Subject 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 SUBJECT


* We have checked through the Subject 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


The Subject 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

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Services

:

INTERIOR DECORATION

 

Total Number of Employees:

YEAR

2014


GROUP

N/A

COMPANY

20

 

Branch

:

NO

 

Other Information:

The Subject is principally engaged in the (as a / as an) interior decoration. 

The Subject is engaged in the interior designing and consultation services.

The Subject mostly provides its services for the cosmetic business. 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

60 3 5891 6870

Current Telephone Number

:

03-58916870

Match

:

YES

Address Provided by Client

:

1 JALAN SERINDIT 3 BANDAR PUCHONG JAYA PUCHONG SELANGOR DARUL EHSAN MALAYSIA

Current Address

:

1, JALAN SERINDIT 3, BANDAR PUCHONG JAYA, , 47170 PUCHONG JAYA, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations

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

FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Erratic

[

2008 - 2012

]

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

Return on Shareholder Funds

:

Acceptable

[

10.56%

]

Return on Net Assets

:

Acceptable

[

16.76%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Favourable

[

1 Days

]

Debtor Ratio

:

Favourable

[

43 Days

]

Creditors Ratio

:

Unfavourable

[

93 Days

]

The Subject'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 Subject. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

Liquidity

Liquid Ratio

:

Favourable

[

1.11 Times

]

Current Ratio

:

Unfavourable

[

1.12 Times

]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Acceptable

[

8.27 Times

]

Gearing Ratio

:

Favourable

[

0.49 Times

]

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

Overall Assessment :

Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject 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 Subject : FAIR

 

 

 

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

74101 : Activities of interior decorators

INDUSTRY :

BUSINESS SERVICES

The services sector is expected to continue playing an important role in driving the malaysia economy. The services activity might slow down going forward, considering that at the global level, the services sector has already taken some hits. The sector's output expansion was the weakest in the 2010 to 2012 growth period.

The services sector is projected to continue to drive growth in 2012. Growth will be supported by consumer-related sub-sectors, which is likely to cushion the effects of slower trade-related activity during the year 2012. In the wholesale and retail service sub-sector, growth will be led by the retail segment, in line with the trend in private consumption. However, growth in the wholesale services expected to be lower. Growth in the finance and insurance sub-sector is expected to remain firm, supported by bank lending activity. In the insurance segment, growth is expected to emanate from the general insurance business, following favourable motor vehicle sales and the implementation of the new motor cover framework which will enhance efficiency in the motor insurance and takaful sector.

Growth in the communication sub-sector is projected to be sustained, amidst margin compression resulting from rising competition among service providers. Growth will be supported by the expected launch of advanced wireless technology, the ongoing widening of the High-Speed Broadband (HSBB) infrastructure and Government initiatives to promote broadband services nationwide. In the year 2012, Communication service sector expanded to 9.3% propelled by the higher consumption in mobile phone services and data communication. Meanwhile, growth in the transport and storage sub-sector is anticipated to moderate, amidst the uncertain external outlook. Malaysia’s banking sector had seen quite an overhaul in the past decade and was now a model of stability. While it seemed likely that the international situation would slow lending somewhat in 2012, it would still rise at a respectable rate, and the long-term path should see further growth and reform.

In year 2012, Services sector recorded a growth of 5.8% underpinned by Wholesale & Retail and Communication. The growth of 5.7% in Wholesale & Retail Trade service was supported by the expansion in retail segment particularly in household appliances & equipments, pharmaceutical products and personal care products services.

Accroding to Ministry of Finance, the services sector are expected to remain upbeat in 2013, with the accelerated implementation with major initiatives under the National Key Result Areas and continued investment in the seven services subsectors under the National Key Economic Areas. It said that these initiatives are expected to drive the wholesale and retail trade, finance and insurance, and communication subsectors, which are expected to grow 6.8%, 5.2% and 8.2% respectively.

The Business Services sector is a key one which continues to accelerate changes within specialised areas in many developed nations and consequently drive higher economic growth and greater efficiency. According to the Minister of Human Resource, the Business Services sector has a unique role to play in driving the competitiveness of a wide range of business segments, industries and professional services. Therefore, the Malaysian business services sector is on track to contribute RM78.7 billion to the gross national income (GNP) by 2020. The growth of the service sector are also expected to create 107,000 new jobs by 2020.

Malaysian government has used various measures to promote the development of its service industries. Policies pursued by the government of Malaysia in promoting consolidation within the banking sector, encouraging the development of private hospitals, and investing in port facilities could seek to strengthen the industries. The Malaysian government has liberalized some barriers to the foreign provision of services, and recent liberalization could result in an increase of contribution of services sector to the economy growth of the country.

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1990, the Subject is a Private Limited company, focusing on interior decoration. With over 2 decades of experience in the business, the Subject has fairly rich experiences in the business and has achieved a certain market share. With a small paid up capital of MYR 230,003, the Subject should put more efforts on its business to gain higher market share while competing aggressively in the market. 

Over the years, the Subject should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. Being a small company, the Subject's business operation is supported by 20 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject 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 Subject 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 1,430,733, the Subject should be able to maintain its business in the near terms. 

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject'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 Subject has a good control over its resources. 

The Subject's overall payment habit is fair and this clearly implied a weak credit control of the Subject. 

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

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

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

STYLON DESIGN (M) SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

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

18,319,877

14,217,476

15,164,526

11,769,740

11,808,608

Other Income

127,936

63,526

-

-

-

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

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

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

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

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

Total Turnover

18,447,813

14,281,002

15,164,526

11,769,740

11,808,608

Costs of Goods Sold

(13,418,085)

(9,748,382)

-

-

-

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

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

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

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

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

Gross Profit

5,029,728

4,532,620

-

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

287,852

282,238

461,037

417,026

114,932

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

287,852

282,238

461,037

417,026

114,932

Taxation

(136,786)

(79,135)

(107,100)

(108,781)

(51,313)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

151,066

203,103

353,937

308,245

63,619

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

1,049,664

846,561

492,624

483,383

419,764

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

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

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

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

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

As restated

1,049,664

846,561

492,624

483,383

419,764

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,200,730

1,049,664

846,561

791,628

483,383

DIVIDENDS - Ordinary (paid & proposed)

-

-

-

(299,004)

-

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,200,730

1,049,664

846,561

492,624

483,383

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Hire purchase

38,283

8,980

-

-

-

Term loan / Borrowing

-

45

-

-

-

Others

1,316

2,554

-

-

-

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

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

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

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

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

39,599

11,579

-

-

-

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

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

 

 

 

BALANCE SHEET

 

 

STYLON DESIGN (M) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

1,323,957

859,195

788,972

642,795

810,342

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

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

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

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

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

TOTAL LONG TERM ASSETS

1,323,957

859,195

788,972

642,795

810,342

CURRENT ASSETS

Stocks

37,560

33,246

-

-

-

Trade debtors

2,171,672

2,704,901

-

-

-

Other debtors, deposits & prepayments

941,771

994,557

-

-

-

Short term deposits

1,009,587

904,412

-

-

-

Amount due from director

1,724,753

1,397,666

-

-

-

Cash & bank balances

207,400

436,038

-

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

6,092,743

6,470,820

5,029,015

4,460,106

3,586,188

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

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

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

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

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

TOTAL ASSET

7,416,700

7,330,015

5,817,987

5,102,901

4,396,530

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

3,401,104

2,819,070

-

-

-

Other creditors & accruals

1,860,723

2,890,087

-

-

-

Hire purchase & lease creditors

176,163

76,008

-

-

-

Provision for taxation

25,519

20,869

-

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

5,463,509

5,806,034

4,598,101

4,330,132

3,539,468

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

629,234

664,786

430,914

129,974

46,720

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

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

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

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

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

TOTAL NET ASSETS

1,953,191

1,523,981

1,219,886

772,769

857,062

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

230,003

230,003

230,003

230,003

230,003

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

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

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

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

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

TOTAL SHARE CAPITAL

230,003

230,003

230,003

230,003

230,003

RESERVES

Retained profit/(loss) carried forward

1,200,730

1,049,664

846,561

492,624

483,383

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

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

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

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

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

TOTAL RESERVES

1,200,730

1,049,664

846,561

492,624

483,383

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,430,733

1,279,667

1,076,564

722,627

713,386

LONG TERM LIABILITIES

Hire purchase creditors

522,458

244,314

-

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

522,458

244,314

143,322

50,142

143,676

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

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

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

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

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

1,953,191

1,523,981

1,219,886

772,769

857,062

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

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

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

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

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

 


 

 

FINANCIAL RATIO

 

 

STYLON DESIGN (M) SDN. BHD.

 

TYPES OF FUNDS

Cash

1,216,987

1,340,450

-

-

-

Net Liquid Funds

1,216,987

1,340,450

-

-

-

Net Liquid Assets

591,674

631,540

430,914

129,974

46,720

Net Current Assets/(Liabilities)

629,234

664,786

430,914

129,974

46,720

Net Tangible Assets

1,953,191

1,523,981

1,219,886

772,769

857,062

Net Monetary Assets

69,216

387,226

287,592

79,832

(96,956)

BALANCE SHEET ITEMS

Total Borrowings

698,621

320,322

-

-

-

Total Liabilities

5,985,967

6,050,348

4,741,423

4,380,274

3,683,144

Total Assets

7,416,700

7,330,015

5,817,987

5,102,901

4,396,530

Net Assets

1,953,191

1,523,981

1,219,886

772,769

857,062

Net Assets Backing

1,430,733

1,279,667

1,076,564

722,627

713,386

Shareholders' Funds

1,430,733

1,279,667

1,076,564

722,627

713,386

Total Share Capital

230,003

230,003

230,003

230,003

230,003

Total Reserves

1,200,730

1,049,664

846,561

492,624

483,383

LIQUIDITY (Times)

Cash Ratio

0.22

0.23

-

-

-

Liquid Ratio

1.11

1.11

-

-

-

Current Ratio

1.12

1.11

1.09

1.03

1.01

WORKING CAPITAL CONTROL (Days)

Stock Ratio

1

1

-

-

-

Debtors Ratio

43

69

-

-

-

Creditors Ratio

93

106

-

-

-

SOLVENCY RATIOS (Times)

Gearing Ratio

0.49

0.25

-

-

-

Liabilities Ratio

4.18

4.73

4.40

6.06

5.16

Times Interest Earned Ratio

8.27

25.37

-

-

-

Assets Backing Ratio

8.49

6.63

5.30

3.36

3.73

PERFORMANCE RATIO (%)

Operating Profit Margin

1.57

1.99

3.04

3.54

0.97

Net Profit Margin

0.82

1.43

2.33

2.62

0.54

Return On Net Assets

16.76

19.28

37.79

53.97

13.41

Return On Capital Employed

15.38

18.36

37.79

53.97

13.41

Return On Shareholders' Funds/Equity

10.56

15.87

32.88

42.66

8.92

Dividend Pay Out Ratio (Times)

0.00

0.00

-

0.97

-

NOTES TO ACCOUNTS

Contingent Liabilities

0

0




FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.95

UK Pound

1

Rs.99.36

Euro

1

Rs.82.15

                

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

MNL

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

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

 

Unlimited

 

71-85

Aa

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

 

Large

 

56-70

A

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

 

Fairly Large

 

41-55

Ba

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

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

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

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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

 

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

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

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

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