MIRA INFORM REPORT

 

 

Report Date :

30.04.2014

 

IDENTIFICATION DETAILS

 

Name :

KAMDAR SDN. BERHAD

 

 

Registered Office :

Suite 1603, Wisma Lim Foo Yong, 86, Jalan Raja Chulan, 16th Floor, 50200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

14.06.1972

 

 

Com. Reg. No.:

12300-T

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Retailer of textile and garments

 

 

No of Employees :

1500

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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

 

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

12300-T

COMPANY NAME

:

KAMDAR SDN. BERHAD

FORMER NAME

:

N/A

INCORPORATION DATE

:

14/06/1972

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 1603, WISMA LIM FOO YONG, 86, JALAN RAJA CHULAN, 16TH FLOOR, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

113, JALAN TUANKU ABDUL RAHMAN, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-26938988

FAX.NO.

:

03-26988400

EMAIL

:

ENQUIRIES@KAMDAR.COM.MY

WEB SITE

:

WWW.KAMDAR.COM.MY

CONTACT PERSON

:

KAMAL KUMAR KISHORCHANA KAMDAR ( DIRECTOR )

INDUSTRY CODE

:

46411

PRINCIPAL ACTIVITY

:

RETAIL OF TEXTILE AND GARMENTS

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 8,800,000.00 DIVIDED INTO
ORDINARY SHARES 3,860,000 CASH AND 4,940,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 198,428,060 [2012]

NET WORTH

:

MYR 83,031,320 [2012]

STAFF STRENGTH

:

1500 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

TRACED

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

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) retail of textile and garments.

 

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

 

The immediate and ultimate holding company of the Subject is KAMDAR GROUP (M) BERHAD, a company incorporated in MALAYSIA.

 

Share Capital History

 

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 10,000,000.00

MYR 8,800,000.00

05/08/1996

MYR 10,000,000.00

MYR 6,600,000.00

31/12/1995

MYR 10,000,000.00

MYR 6,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

KAMDAR GROUP (M) BERHAD

113, JALAN TUANKU ABDUL RAHMAN, 5TH FLOOR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

577740A

8,800,000.00

100.00

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

------

8,800,000.00

100.00

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

=====

+ Also Director

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. KAMAL KUMAR KISHORCHANDRA KAMDAR

Address

:

2, LORONG CENDERAI, TAMAN LUCKY, BANGSAR BARU, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A3603369

New IC No

:

700510-71-6031

Date of Birth

:

10/05/1970

Nationality

:

MALAYSIAN INDIAN

Date of Appointment

:

26/05/2011

 

DIRECTOR 2

 

Name Of Subject

:

MR. RAJNIKANT A/L B.M KAMDAR

Address

:

A-6-3, LA GRANDE CONDOMINIUM, MONT KIARA, JALAN DUTA, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

0621838

New IC No

:

481225-08-5093

Date of Birth

:

25/12/1948

Nationality

:

MALAYSIAN INDIAN

Date of Appointment

:

31/03/1993

 

DIRECTOR 3

 

Name Of Subject

:

MR. HAMENDRA A/L B.M. KAMDAR

Address

:

28-35-A, GURNEY BEACH RESORT, PERSIARAN GURNEY, 10250 GEORGETOWN, PULAU PINANG, MALAYSIA.

IC / PP No

:

4326703

New IC No

:

520819-08-5073

Date of Birth

:

19/08/1952

Nationality

:

MALAYSIAN INDIAN

Date of Appointment

:

30/10/1984




MANAGEMENT

 

 

1)

Name of Subject

:

KAMAL KUMAR KISHORCHANA KAMDAR

Position

:

DIRECTOR

 

 

 

 

AUDITOR

 

Auditor

:

SJ GRANT THORNTON

Auditor' Address

:

FABER IMPERIAL COURT, JALAN SULTAN ISMAIL, LEVEL 11-1, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LIM HOOI CHIN

IC / PP No

:

A1513020

New IC No

:

700416-07-5290

Address

:

C3-14, BLOCK C, JALAN MAJU 2/1, TAMAN LEMBAH MAJU, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

2)

Company Secretary

:

MR. TAI KEAT CHAI

IC / PP No

:

4645593

New IC No

:

540730-08-5841

Address

:

17, JALAN SS 20/22, 47400 PETALING JAYA, SELANGOR, 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

09/04/1982

N/A

UNITED ASIAN BANK

MYR 1,480,000.00

Satisfied

2

11/04/1983

N/A

UNITED ASIAN BANK

MYR 800,000.00

Satisfied

3

21/12/1993

LOAN AGREEMENT & CHARGE

MALAYAN BANKING BERHAD

MYR 4,500,000.00

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.

 

 

LEGAL ACTION

 

Code No

:

22

Case No

:

1171

Year

:

2004

Place

:

KUALA LUMPUR

Court

:

HIGH COURT

Solicitor

:

LEE HISHAMMUDDIN ALLEN & GLEDHILL

Plaintiff

:

NEWFIELDS ADVISORS SDN BHD

Defendants

:

KAMDAR SDN BHD (12300)

SUITE 1603, WISMA LIM FOO YONG, 86 JLN RAJA CHULAN, 16TH FLR, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Amount Claimed

:

630000.00

Nature of Claim

:

GDS SOLD & DELIVERED

Remark

:

LIST

Code No

:

22

Case No

:

933

Year

:

2005

Place

:

KUALA LUMPUR

Court

:

HIGH COURT

Solicitor

:

LEE HISHAMMUDDIN ALLEN & GLEDHILL

Plaintiff

:

NEWFIELDS ADVISORS SDN BHD

Defendants

:

KAMDAR SDN BHD (12300)

SUITE 1603, WISMA LIM FOO YONG, 86 JLN RAJA CHULAN, 16TH FLR, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Amount Claimed

:

500000

Nature of Claim

:

GDS SOLD & DELIVERED

Remark

:

LIST

 

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person who has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.

 

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 disclose the name of trade supplier.


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

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

N/A

Payment Mode

:

CASH
CREDIT CARD

Type of Customer

:

WALK IN CUSTOMERS

 

OPERATIONS

 

Goods Traded

:

TEXTILES AND GARMENTS

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2014

2010

2009

GROUP

N/A

N/A

N/A

COMPANY

1500

1,550

1,500

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) retail of textile and garments.


The Subject specializes in textile fabric, furnishing fabric, in-house designed garments for ladies, men and children’s clothes, Indian clothing and school uniforms.


We were informed that the Subject has outlets throughout East and Peninsular Malaysia.


The Subject has achieved a dominant position in the garment and textile departmental store industry and Kamdar brand name has been well known for several generations.



 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

0326938988

Current Telephone Number

:

03-26938988

Match

:

YES

Address Provided by Client

:

113 JALAN TUANKU ABDUL REHMAN 50100 KULALUMPUR

Current Address

:

113, JALAN TUANKU ABDUL RAHMAN, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


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


The address provided is incorrect.



FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2008 - 2012

]

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

Return on Shareholder Funds

:

Acceptable

[

13.75%

]

Return on Net Assets

:

Acceptable

[

19.66%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years. The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Unfavourable

[

202 Days

]

Debtor Ratio

:

Favourable

[

3 Days

]

Creditors Ratio

:

Favourable

[

16 Days

]

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

Liquidity

Liquid Ratio

:

Unfavourable

[

0.50 Times

]

Current Ratio

:

Unfavourable

[

1.86 Times

]

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

Solvency

Interest Cover

:

Favourable

[

65.37 Times

]

Gearing Ratio

:

Favourable

[

0.37 Times

]

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

Generally, the Subject's performance has improved with higher turnover and profit. Due to its weak liquidity position, the Subject 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 Subject. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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



INDUSTRY ANALYSIS

 

MSIC CODE

46411 : Wholesale of yarn and fabrics

INDUSTRY :

TRADING

According to the Retail Group Malaysia (RGM), the wholesale and retail trade sector forecast to grow to 6% in year 2013. During the first quarter of year 2013, RGM is estimating the retail industry to grow 6.9%. Many retailers have been enjoying better sales since the government handed out cash from mid-January of 2013 under the second round of Bantuan Rakyat 1Malaysia to more than 12 million Malaysians. Bookstores and related retail stores have also started enjoying rising sales since the RM250 1Malaysia Book Voucher was distributed to 1.3 million private and public university students. Besides, since early February 2013, hand phone traders and retailers selling smartphone accessories have started to benefit from the RM200 rebate on smartphones for 1.5 million young adults aged between 21 and 30 years with a monthly income of not more than RM3,000.

The wholesale and retail trade sector grew 6.1% in the first half of the year 2012 driven by strong domestic consumption and the increasing number of large format stores operating in Malaysia, including 180 foreign hypermarkets, superstores and departmental stores as at end of August 2012. In addition, other indicators such as imports of consumption goods were higher by 15.2%.

In 2012, the wholesale and retail trade sector growth to 5.5% driven by higher consumption which benefited from Government initiatives under the 2012 Budget such as BR1M, Baucar Buku 1Malaysia (BB1M) and the RM100 assistance for all primary and secondary school students. The performance of the sector will also be supported by ongoing efforts to modernise the retail segment under the ETP. In 2012, 500 retail shops and 50 workshops are targeted to be modernised under the Retail Shop Transformation (TUKAR) and Automotive Workshop Modernisation (ATOM) programmes, respectively. As at end of July 2012, 95 workshops have been modernised, surpassing the yearly target, while 393 retail shops have been modernised.

Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.

Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption, therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1972, the Subject is a Private Limited company, focusing on retail of textile and garments. The Subject has been in business for four decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. The Subject is well backed by a listed company shareholders which would stimulate further growth for the Subject. Hence, the potential growth of the Subject is positive. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.


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 large entity, the Subject has a steady workforce of 1500 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. 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. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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 83,031,320, 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's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


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.


In view of the above, we recommend credit be granted to the Subject promptly.

 



PROFIT AND LOSS ACCOUNT

 

 

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

KAMDAR SDN. BERHAD

 

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

198,428,060

164,858,445

163,635,527

169,655,003

159,998,207

Other Income

1,399,475

1,054,164

-

-

-

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

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

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

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

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

Total Turnover

199,827,535

165,912,609

163,635,527

169,655,003

159,998,207

Costs of Goods Sold

(119,391,221)

(108,399,165)

-

(164,936,705)

-

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

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

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

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

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

Gross Profit

80,436,314

57,513,444

-

4,718,298

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

16,443,664

8,586,903

9,048,747

9,106,163

4,554,181

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

16,443,664

8,586,903

9,048,747

9,106,163

4,554,181

Taxation

(5,027,321)

(2,517,144)

(2,452,629)

(2,095,854)

(1,687,233)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

11,416,343

6,069,759

6,596,118

7,010,309

2,866,948

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

62,754,977

61,767,218

63,091,100

56,080,791

53,213,843

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

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

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

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

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

As restated

62,754,977

61,767,218

63,091,100

56,080,791

53,213,843

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

74,171,320

67,836,977

69,687,218

63,091,100

56,080,791

DIVIDENDS - Ordinary (paid & proposed)

-

(5,082,000)

(7,920,000)

-

-

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

74,171,320

62,754,977

61,767,218

63,091,100

56,080,791

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

225,019

277,144

-

-

-

Hire purchase

30,445

43,208

-

-

-

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

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

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

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

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

255,464

320,352

-

-

-

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

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

 

 

 

 

BALANCE SHEET

 

 

KAMDAR SDN. BERHAD

 

ASSETS EMPLOYED:

FIXED ASSETS

15,667,387

11,422,602

12,483,037

12,122,302

12,589,173

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

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

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

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

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

TOTAL LONG TERM ASSETS

15,667,387

11,422,602

12,483,037

12,122,302

12,589,173

Stocks

109,618,931

64,061,066

-

-

-

Trade debtors

1,499,145

1,605,903

-

-

-

Other debtors, deposits & prepayments

5,524,884

4,563,017

-

-

-

Short term deposits

500,000

750,000

-

-

-

Amount due from holding company

19,598,000

11,227,000

-

-

-

Amount due from related companies

4,243,289

22,051,815

-

-

-

Cash & bank balances

8,527,096

6,813,700

-

-

-

Others

-

7,367

-

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

149,511,345

111,079,868

112,991,435

105,953,187

89,643,756

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

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

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

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

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

TOTAL ASSET

165,178,732

122,502,470

125,474,472

118,075,489

102,232,929

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

5,218,786

4,462,279

-

-

-

Other creditors & accruals

3,236,852

3,214,686

-

-

-

Hire purchase & lease creditors

228,169

204,755

-

-

-

Bank overdraft

4,405,692

1,482,143

-

-

-

Other borrowings

-

41,116

-

-

-

Bill & acceptances payable

26,082,000

20,861,000

-

-

-

Amounts owing to related companies

40,568,602

18,427,667

-

-

-

Provision for taxation

495,633

-

-

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

80,235,734

48,693,646

52,663,800

44,401,894

35,616,979

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

69,275,611

62,386,222

60,327,635

61,551,293

54,026,777

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

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

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

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

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

TOTAL NET ASSETS

84,942,998

73,808,824

72,810,672

73,673,595

66,615,950

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

8,800,000

8,800,000

8,800,000

8,800,000

8,800,000

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

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

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

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

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

TOTAL SHARE CAPITAL

8,800,000

8,800,000

8,800,000

8,800,000

8,800,000

RESERVES

Share premium

60,000

60,000

60,000

60,000

60,000

Retained profit/(loss) carried forward

74,171,320

62,754,977

61,767,218

63,091,100

56,080,791

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

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

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

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

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

TOTAL RESERVES

74,231,320

62,814,977

61,827,218

63,151,100

56,140,791

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

83,031,320

71,614,977

70,627,218

71,951,100

64,940,791

Lease obligations

230,678

408,847

-

-

-

Deferred taxation

1,681,000

1,785,000

-

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,911,678

2,193,847

2,183,454

1,722,495

1,675,159

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

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

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

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

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

84,942,998

73,808,824

72,810,672

73,673,595

66,615,950

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

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

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

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

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

 

 

 

 

FINANCIAL RATIO

 

 

KAMDAR SDN. BERHAD

 

TYPES OF FUNDS

Cash

9,027,096

7,563,700

-

-

-

Net Liquid Funds

(21,460,596)

(14,779,443)

-

-

-

Net Liquid Assets

(40,343,320)

(1,674,844)

60,327,635

61,551,293

54,026,777

Net Current Assets/(Liabilities)

69,275,611

62,386,222

60,327,635

61,551,293

54,026,777

Net Tangible Assets

84,942,998

73,808,824

72,810,672

73,673,595

66,615,950

Net Monetary Assets

(42,254,998)

(3,868,691)

58,144,181

59,828,798

52,351,618

BALANCE SHEET ITEMS

Total Borrowings

30,946,539

22,997,861

-

-

-

Total Liabilities

82,147,412

50,887,493

54,847,254

46,124,389

37,292,138

Total Assets

165,178,732

122,502,470

125,474,472

118,075,489

102,232,929

Net Assets

84,942,998

73,808,824

72,810,672

73,673,595

66,615,950

Net Assets Backing

83,031,320

71,614,977

70,627,218

71,951,100

64,940,791

Shareholders' Funds

83,031,320

71,614,977

70,627,218

71,951,100

64,940,791

Total Share Capital

8,800,000

8,800,000

8,800,000

8,800,000

8,800,000

Total Reserves

74,231,320

62,814,977

61,827,218

63,151,100

56,140,791

LIQUIDITY (Times)

Cash Ratio

0.11

0.16

-

-

-

Liquid Ratio

0.50

0.97

-

-

-

Current Ratio

1.86

2.28

2.15

2.39

2.52

WORKING CAPITAL CONTROL (Days)

Stock Ratio

202

142

-

-

-

Debtors Ratio

3

4

-

-

-

Creditors Ratio

16

15

-

-

-

SOLVENCY RATIOS (Times)

Gearing Ratio

0.37

0.32

-

-

-

Liabilities Ratio

0.99

0.71

0.78

0.64

0.57

Times Interest Earned Ratio

65.37

27.80

-

-

-

Assets Backing Ratio

9.65

8.39

8.27

8.37

7.57

PERFORMANCE RATIO (%)

Operating Profit Margin

8.29

5.21

5.53

5.37

2.85

Net Profit Margin

5.75

3.68

4.03

4.13

1.79

Return On Net Assets

19.66

12.07

12.43

12.36

6.84

Return On Capital Employed

18.64

11.80

12.43

12.36

6.84

Return On Shareholders' Funds/Equity

13.75

8.48

9.34

9.74

4.41

Dividend Pay Out Ratio (Times)

0.00

0.84

1.20

-

-

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 60.52

UK Pound

1

Rs. 101.77

Euro

1

Rs. 83.91

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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.