MIRA INFORM REPORT

 

 

Report Date :

25.01.2014

 

IDENTIFICATION DETAILS

 

Name :

BLUSH FASHION SDN. BHD.

 

 

Registered Office :

25-6-1, Jalan 3/50, Diamond Square, Off Jalan Gombak, 6th Floor, 53000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

01.12.2003

 

 

Com. Reg. No.:

635562-T

 

 

Legal Form :

Private Limited (Limited by Share)

 

 

Line of Business :

Wholesalers of Textiles and Garments

 

 

No. of Employees :

5 [2014]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

No complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

635562-T

COMPANY NAME

:

BLUSH FASHION SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

01/12/2003

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

25-6-1, JALAN 3/50, DIAMOND SQUARE, OFF JALAN GOMBAK, 6TH FLOOR, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

7 JALAN APOLLO U5/194, BANDAR PINGGIRAN SUBANG,, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78425250

FAX.NO.

:

03-78425260

CONTACT PERSON

:

MANEETA KAUR KATARI ( MANAGING DIRECTOR )

INDUSTRY CODE

:

47711

PRINCIPAL ACTIVITY

:

WHOLESALERS OF TEXTILES AND GARMENTS

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 700,000.00 DIVIDED INTO
ORDINARY SHARES 700,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 13,592,338 [2012]

NET WORTH

:

MYR 2,723,380 [2012]

STAFF STRENGTH

:

5 [2014]

BANKER (S)

:

OCBC BANK (MALAYSIA) BHD

PUBLIC BANK BHD

UNITED OVERSEAS BANK (MALAYSIA) BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

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) wholesalers of textiles and garments.

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 1,000,000.00

MYR 700,000.00

 

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

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. JASDEEP SINGH KATARI A/L JASPAL SINGH +

A-12-3, LA GRANDE KIARA, 11, JALAN DUTA KIARA, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

760422-14-5587

350,000.00

50.00

MS. MANEETA KAUR KATARI A/P JASPAL SINGH +

26, JALAN MERAH PELANGI U9/19, MONTEREZ GOLF & COUNYTRY RESORT , 40000 SHAH ALAM, SELANGOR, MALAYSIA.

731110-07-5660

350,000.00

50.00

 

 

 

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

------

 

 

 

700,000.00

100.00

 

 

 

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

=====

+ Also Director

 

 

DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MR. JASDEEP SINGH KATARI A/L JASPAL SINGH

Address

:

A-12-3, LA GRANDE KIARA, 11, JALAN DUTA KIARA, BUKIT KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

New IC No

:

760422-14-5587

Date of Birth

:

22/04/1976

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/12/2003

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. MANEETA KAUR KATARI A/P JASPAL SINGH

Address

:

26, JALAN MERAH PELANGI U9/19, MONTEREZ GOLF & COUNYTRY RESORT , 40000 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

731110-07-5660

Date of Birth

:

10/11/1973

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/12/2003

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

MANEETA KAUR KATARI

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

 

AUDITOR

 

Auditor

:

TCMK ASSOCIATED

Auditor' Address

:

102C, JALAN TUN H.S.LEE, 3RD FLOOR, 50000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. PALANIAPPAN A/L KASIVISVANATHAN

 

 

 

 

 

New IC No

:

470531-71-5125

 

Address

:

196, JALAN A4, TAMAN MELAWATI, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. THAVY @ DEVI A/P GOPAL

 

 

 

 

 

New IC No

:

650301-05-5692

 

Address

:

BLOCK C-5-4, PERTIWI INDAH CONDO, JALAN PERTIWI TAMAN MALURI, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

OCBC BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

PUBLIC BANK BHD

 

 

 

 

 

 

 

 

 

3)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

19/05/2006

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 140,000.00

Satisfied

2

19/05/2006

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 140,000.00

Satisfied

3

19/05/2006

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 140,000.00

Satisfied

4

19/05/2006

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 745,000.00

Satisfied

5

05/07/2007

N/A

OCBC BANK (MALAYSIA) BHD

-

Satisfied

6

05/07/2007

N/A

OCBC BANK (MALAYSIA) BHD

-

Satisfied

7

03/01/2008

FACILITIES AGREEMENT, DEED OF ASSIGNMENT & POWER OF ATTORNEY ALL DATED 3RD JAN 2008

PUBLIC BANK BHD

-

Unsatisfied

8

08/10/2008

1ST LEGAL CHARGE UNDER NATIONAL CODE DATED 22.09.2008

PUBLIC BANK BHD

-

Unsatisfied

9

10/11/2009

N/A

ALLIANCE BANK MALAYSIA BHD

-

Unsatisfied

10

10/11/2009

N/A

ALLIANCE BANK MALAYSIA BHD

-

Unsatisfied

11

10/11/2009

FACILITY AGREEMENT

ALLIANCE BANK MALAYSIA BHD

-

Unsatisfied

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt 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

 

Import Countries

:

INDIA,PAKISTAN



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

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

 

 

 

 

 

 

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CASH
CHEQUES

Type of Customer

:

AGENTS,WALK IN CUSTOMERS,END USERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

GARMENTS

 

 

 

 

Total Number of Employees:

 

YEAR

2014

2012

2011

2010

2009

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

5

5

5

5

3

 

 

 

 

 

Branch

:

NO

Other Information:


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


The Subject offers a wide range of ready-made garments including indian tradisional dress such as punjabi dress, silk saree, wedding saree, dinner saree, chudithar, lenga, salwar kameez


We were informed that the Subject has various designs, types, materials, colours of garments.


The Subject has its own show room located at the same premises to display the garments.


The Subject is equipped with more than 200 types of garments.



RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA) database, but no latest development was noted in our investigation.

 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0378425250

Current Telephone Number

:

03-78425250

Match

:

YES

 

 

 

Address Provided by Client

:

7 JALAN APOLLO U5/194 BANDAR PINGGIRAN SUBAN, 40150 SHAH ALAM SELANGOR DARUL EHSAN

Current Address

:

7 JALAN APOLLO U5/194, BANDAR PINGGIRAN SUBANG,, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 21st January 2014 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

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

4.41%

]

 

Return on Net Assets

:

Acceptable

[

10.37%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

73 Days

]

 

Debtor Ratio

:

Unfavourable

[

101 Days

]

 

Creditors Ratio

:

Favourable

[

37 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. 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

[

0.60 Times

]

 

Current Ratio

:

Unfavourable

[

1.03 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

:

Unfavourable

[

1.93 Times

]

 

Gearing Ratio

:

Unfavourable

[

1.54 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. 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. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the Subject : POOR

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index



INDUSTRY ANALYSIS

 

MSIC CODE

47711 : Retail sale of articles of clothing, articles of fur and clothing accessories

 

 

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, handphone 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 2003, the Subject is a Private Limited company, focusing on wholesalers of textiles and garments. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The Subject is considered as a medium size company with issued and paid up capital standing at MYR 700,000.

 
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. The Subject's business operation is supported by 5 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.

 
Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. The Subject 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 Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Nevertheless, given a positive net worth standing at MYR 2,723,380, 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 payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

 
The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the 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)

 

Financial Year End

2012-03-31

2011-03-31

2010-03-31

2009-03-31

2008-03-31

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

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

13,592,338

13,218,909

15,299,210

12,793,361

11,920,559

Other Income

235,462

259,649

-

-

-

 

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

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

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

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

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

Total Turnover

13,827,800

13,478,558

15,299,210

12,793,361

11,920,559

Costs of Goods Sold

(11,431,472)

(10,869,011)

-

-

-

 

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

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

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

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

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

Gross Profit

2,396,328

2,609,547

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

216,349

245,181

397,532

288,110

308,393

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

216,349

245,181

397,532

288,110

308,393

Taxation

(96,140)

(148,888)

(139,188)

(89,929)

(95,713)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

120,209

96,293

258,344

198,181

212,680

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

120,209

96,293

258,344

198,181

212,680

Extraordinary items

-

696,311

-

-

-

 

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

120,209

792,604

258,344

198,181

212,680

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

1,903,171

1,110,567

852,223

654,042

437,862

Prior year adjustment

-

-

-

-

3,500

 

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

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

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

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

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

As restated

1,903,171

1,110,567

852,223

654,042

441,362

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

2,023,380

1,903,171

1,110,567

852,223

654,042

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,023,380

1,903,171

1,110,567

852,223

654,042

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

6,312

12,866

-

10,540

16,398

Hire purchase

14,518

14,518

-

18,397

12,372

Term loan / Borrowing

74,043

170,288

-

47,336

18,543

Trust receipts

138,098

182,929

-

103,552

98,856

Others

-

-

-

44,076

18,148

 

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

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

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

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

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

 

232,971

380,601

-

223,901

164,317

 

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

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

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

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

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

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

4,168,289

4,368,379

6,342,678

6,206,044

2,698,261

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

4,168,289

4,368,379

6,342,678

6,206,044

2,698,261

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

2,734,382

2,637,751

-

1,681,496

873,105

Trade debtors

3,770,127

5,569,794

-

4,875,284

5,074,596

Other debtors, deposits & prepayments

43,714

54,156

-

223,459

318,491

Amount due from director

66,873

7,867

-

3,911

-

Cash & bank balances

2,413

122,528

-

150,380

83,612

 

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

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

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

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

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

TOTAL CURRENT ASSETS

6,617,509

8,392,096

7,513,576

6,934,530

6,349,804

 

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

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

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

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

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

TOTAL ASSET

10,785,798

12,760,475

13,856,254

13,140,574

9,048,065

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

1,159,455

1,618,773

-

1,064,815

1,828,484

Other creditors & accruals

2,695,306

3,189,550

-

3,578,299

2,828,494

Hire purchase & lease creditors

91,386

97,417

-

90,982

85,594

Bank overdraft

414,512

-

-

204,143

110,154

Short term borrowings/Term loans

165,516

165,516

-

224,347

58,171

Bill & acceptances payable

1,910,250

3,199,877

-

2,998,138

1,876,823

Amounts owing to director

-

74,571

-

83,363

133,814

Provision for taxation

16,140

18,888

-

37,397

44,797

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

6,452,565

8,364,592

9,017,831

8,281,484

6,966,331

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

164,944

27,504

(1,504,255)

(1,346,954)

(616,527)

 

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

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

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

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

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

TOTAL NET ASSETS

4,333,233

4,395,883

4,838,423

4,859,090

2,081,734

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

700,000

700,000

700,000

700,000

400,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

700,000

700,000

700,000

700,000

400,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

2,023,380

1,903,171

1,110,567

852,223

654,042

 

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

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

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

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

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

TOTAL RESERVES

2,023,380

1,903,171

1,110,567

852,223

654,042

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

2,723,380

2,603,171

1,810,567

1,552,223

1,054,042

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

1,546,279

1,637,752

-

3,072,581

838,802

Hire purchase creditors

63,574

154,960

-

236,574

172,558

Deferred taxation

-

-

-

(2,288)

16,332

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,609,853

1,792,712

3,027,856

3,306,867

1,027,692

 

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

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

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

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

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

 

4,333,233

4,395,883

4,838,423

4,859,090

2,081,734

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

 

 

 

Cash

2,413

122,528

-

150,380

83,612

Net Liquid Funds

(2,322,349)

(3,077,349)

-

(3,051,901)

(1,903,365)

Net Liquid Assets

(2,569,438)

(2,610,247)

(1,504,255)

(3,028,450)

(1,489,632)

Net Current Assets/(Liabilities)

164,944

27,504

(1,504,255)

(1,346,954)

(616,527)

Net Tangible Assets

4,333,233

4,395,883

4,838,423

4,859,090

2,081,734

Net Monetary Assets

(4,179,291)

(4,402,959)

(4,532,111)

(6,335,317)

(2,517,324)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

4,191,517

5,255,522

-

6,826,765

3,142,102

Total Liabilities

8,062,418

10,157,304

12,045,687

11,588,351

7,994,023

Total Assets

10,785,798

12,760,475

13,856,254

13,140,574

9,048,065

Net Assets

4,333,233

4,395,883

4,838,423

4,859,090

2,081,734

Net Assets Backing

2,723,380

2,603,171

1,810,567

1,552,223

1,054,042

Shareholders' Funds

2,723,380

2,603,171

1,810,567

1,552,223

1,054,042

Total Share Capital

700,000

700,000

700,000

700,000

400,000

Total Reserves

2,023,380

1,903,171

1,110,567

852,223

654,042

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.00

0.01

-

0.02

0.01

Liquid Ratio

0.60

0.69

-

0.63

0.79

Current Ratio

1.03

1.00

0.83

0.84

0.91

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

73

73

-

48

27

Debtors Ratio

101

154

-

139

155

Creditors Ratio

37

54

-

30

56

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

1.54

2.02

-

4.40

2.98

Liabilities Ratio

2.96

3.90

6.65

7.47

7.58

Times Interest Earned Ratio

1.93

1.64

-

2.29

2.88

Assets Backing Ratio

6.19

6.28

6.91

6.94

5.20

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.59

1.85

2.60

2.25

2.59

Net Profit Margin

0.88

0.73

1.69

1.55

1.78

Return On Net Assets

10.37

14.24

8.22

10.54

22.71

Return On Capital Employed

9.29

13.93

8.22

9.93

20.76

Return On Shareholders' Funds/Equity

4.41

3.70

14.27

12.77

20.18

Dividend Pay Out Ratio (Times)

0.00

0.00

-

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

-

0

0




FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.18

UK Pound

1

Rs.103.38

Euro

1

Rs.85.09

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.