MIRA INFORM REPORT

 

 

Report Date :

19.07.2014

 

IDENTIFICATION DETAILS

 

Name :

GULFRICH CORPORATION SDN. BHD.

 

 

Registered Office :

Lot 4213, Batu 20, Jalan Batu Arang, 48000 Rawang, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

07.06.1991

 

 

Com. Reg. No.:

218360-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading, Renting and Servicing of Machinery

 

 

No. of Employees :

40 [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 :

Slow but correct

Litigation :

Clear

 

NOTES :

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

 

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Malaysia

A2

A2

           

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately 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 sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara 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 earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

 

Source : CIA

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

218360-M

COMPANY NAME

:

GULFRICH CORPORATION SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/06/1991

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LOT 4213, BATU 20, JALAN BATU ARANG, 48000 RAWANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 4213, BATU 20, JALAN BATU ARANG, SUNGAI BAKAU, 48000 RAWANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-60933300

FAX.NO.

:

03-60931300

EMAIL

:

INFO@GULFRICH.COM.MY

WEB SITE

:

WWW.GULFRICH.COM.MY

CONTACT PERSON

:

KARSI RAO APPARAO KASY ( MANAGING DIRECTOR )

INDUSTRY CODE

:

465

PRINCIPAL ACTIVITY

:

TRADING, RENTING AND SERVICING OF MACHINERY

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,500,000.00 DIVIDED INTO
ORDINARY SHARES 1,500,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 9,433,255 [2012]

NET WORTH

:

MYR 3,319,402 [2012]

STAFF STRENGTH

:

40 [2014]

BANKER (S)

:

RHB 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

:

HIGH

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) trading, renting and servicing of machinery.

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 5,000,000.00

MYR 1,500,000.00

08/11/2000

MYR 1,000,000.00

MYR 1,000,000.00

08/10/1997

MYR 1,000,000.00

MYR 500,000.00

12/06/1997

MYR 500,000.00

MYR 300,000.00

02/05/1997

MYR 500,000.00

MYR 200,000.00

07/06/1991

MYR 50,000.00

MYR 2.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. KARSI RAO APPARAO KASY +

5, LORONG 14/37C, 46100 PETALING JAYA, SELANGOR, MALAYSIA.

571226-10-5243

1,350,000.00

90.00

MS. CHONG YIT HENG +

5, LORONG 14/37C, 46100 PETALING JAYA, SELANGOR, MALAYSIA.

631117-07-5438 7205909

50,000.00

3.33

MR. RAMARAO A/L LETCHUMANEN

22, JALAN PJS 10/11C, TAMAN DATO HORMAT, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

601030-08-5281 6070126

100,000.00

6.67

 

 

 

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

------

 

 

 

1,500,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MR. TING KAM PENG

Address

:

13, JALAN 13, UNITED GARDEN, OFF JALAN KLANG LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

1450359

New IC No

:

500414-08-5173

Date of Birth

:

14/04/1950

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

28/07/2010

Remark

:

ALTERNATE DIRECTOR TO CHONG YIT HENG

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. CHONG YIT HENG

Address

:

5, LORONG 14/37C, 46100 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

7205909

New IC No

:

631117-07-5438

Date of Birth

:

17/11/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

05/08/2002

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. KARSI RAO APPARAO KASY

Address

:

5, LORONG 14/37C, 46100 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

571226-10-5243

Date of Birth

:

26/12/1957

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

07/06/1991

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHONG YIT HENG

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

KARSI RAO APPARAO KASY

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

VANI GONGUNAIDU

 

Position

:

ADMIN MANAGER

 

 

 

 

 

4)

Name of Subject

:

WONG YOOK CHIN

 

Position

:

FINANCE MANAGER

 

 

AUDITOR

 

Auditor

:

CHING & ASSOCIATES.

Auditor' Address

:

915, BLOCK A, KELANA CENTRE POINT, 3, JALAN SS7/19, KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LAU SAW HONG

 

IC / PP No

:

A3441832

 

New IC No

:

760908-14-5392

 

Address

:

36, JALAN RIMBUNAN MELATI 1, LAMAN RIMBUNAN, KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

RHB BANK BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

UNITED OVERSEAS BANK (MALAYSIA) BHD

 

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

14/05/2001

NATIONAL LAND CODE

BANK UTAMA (MALAYSIA) BERHAD

MYR 600,000.00

Unsatisfied

2

13/10/2003

NATIONAL LAND CODE

RHB BANK BHD

MYR 150,000.00

Unsatisfied

3

07/10/2009

FIRST PARTY CHARGE

RHB BANK BHD

MYR 1,100,000.00

Unsatisfied

4

30/05/2011

FIRST PARTY LEGAL CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 150,000.00

Unsatisfied

5

30/05/2011

SECOND LEGAL CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 560,000.00

Unsatisfied

6

30/05/2011

THIRD LEGAL CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD

MYR 2,290,000.00

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

:

NO

Percentage

:

0%

Overseas

:

YES

Percentage

:

100%

Import Countries

:

ITALY,JAPAN,INDIA


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

:

CASH ON DELIVERY (COD)

 

 

 

 

 

 

Payment Mode

:

TELEGRAPHIC TRANSFER (TT)
CHEQUES

Type of Customer

:

END USERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

MACHINERY

 

 

 

 

Product Brand Name

:

FARMTRAC, BITELLI, VOGELI

 

 

 

 

Total Number of Employees:

YEAR

2014

 

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

40

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading, renting and servicing of machinery.


The Subject is engaged in the trading of new & used equipment, rentals refurbished and maintenance of construction equipment.


The Subject has acquired expertise in repairing and refurbish equipments of various brands in construction machinery such as Dynapac, Bomag, ABG, Sumitomo, Vogele, Ingersoll-Rand, Vibromax, Sakai, Komatsu, Hitachi, Caterpillar, which are compactor machines, paver, excavator, motor graders, backhoe.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0360933300

Current Telephone Number

:

03-60933300

Match

:

YES

 

 

 

Address Provided by Client

:

LOT 4213, BATU 20, JALAN BATU ARANG, SUNGAI BAKAU,48000,RAWANG,SELANGOR.

Current Address

:

LOT 4213, BATU 20, JALAN BATU ARANG, SUNGAI BAKAU, 48000 RAWANG, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 18th July 2014, we contacted one of the staff from the Subject and she provided some information regarding the Subject.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

2.00%

]

 

Return on Net Assets

:

Unfavourable

[

8.18%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. 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

[

136 Days

]

 

Debtor Ratio

:

Favourable

[

7 Days

]

 

Creditors Ratio

:

Favourable

[

10 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

[

0.08 Times

]

 

Current Ratio

:

Unfavourable

[

1.13 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

[

1.46 Times

]

 

Gearing Ratio

:

Acceptable

[

0.92 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's gearing was slightly high. The Subject is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the Subject. It will be more vulnerable in times of economy downturn.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject's turnover showed a volatile trend but its losses were lower when compared to the previous corresponding period. This could suggest that the Subject was more efficient in its operating cost control and was more competitive. 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 was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the Subject's performance may deteriorate in the coming year.

 

 

 

 

 

 

 

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

465 : Wholesale of machinery, equipment and supplies

 

 

INDUSTRY :

MACHINERY

 

 

 

Malaysia is presently the leading manufacturer of automation machinery and equipment (M&E) for the electrical and electronics (E&E) industry in the ASEAN region with a total of 22 companies in production. The machinery and equipment industry has expanded and produce a diverse range of machinery which give importance to the overall industrial development of the country, due to its cross cutting linkages with all industrial sectors.

 

Malaysia implemented Industrial Master Plan 3 (IMP3, 2006-2020), which the machinery and equipment industry has been established as one of the key areas for growth and development. The implementation focused on the manufacture of high value-added and high technology machinery and equipment (M&E). Under this plan, M&E will positioned Malaysia as the regional production hub for high technology and specialized M&E in the ASEAN region for 2012.

 

Furthemore for the year 2012, Malaysia is the largest manufacturing hub of boilers in the Southeast Asia region. The exports are mainly directed to the neighboring countries such as Indonesia, Philippines, Thailand and Cambodia. Exports of machinery and equipment registered a double-digit growth of 12.6% in the frst seven month of 2012 mainly driven by general industrial machinery and equipment as well as specialised machinery for specific industries.

 

For enhance the machinery and equipment (M&E), the government has introduced two major tax incentives for companies investing in the manufacturing sector where the pioneer status and the investment tax allowance. The tax incentives would remain to be a competitive industry within ASEAN.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1991, the Subject is a Private Limited company, focusing on trading, renting and servicing of machinery. 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. 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. The Subject is operating on a medium scale and it has approximately 40 employees in its business operations. 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. 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 gearing level of the Subject is slightly high, therefore it faces moderate financial risk. Given a positive net worth standing at MYR 3,319,402, the Subject should be able to maintain its business in the near terms.


Investigation revealed that the Subject's supplies are 100% sourced from overseas countries. As an imported oriented company, its forex exposure is high. The Subject faces foreign currency fluctuation which may affect its overall operating costs.


We regard that the Subject's overall payment habit is average


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

2012-12-31

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

9,433,255

7,774,453

7,862,185

4,877,749

4,375,751

 

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

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

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

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

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

Total Turnover

9,433,255

7,774,453

7,862,185

4,877,749

4,375,751

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

104,970

(209,505)

121,219

55,744

156,295

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

104,970

(209,505)

121,219

55,744

156,295

Taxation

(38,618)

(4,967)

(25,867)

(258)

-

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

66,352

(214,472)

95,352

55,486

156,295

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

192,010

406,482

311,130

255,644

99,349

 

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

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

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

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

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

As restated

192,010

406,482

311,130

255,644

99,349

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

258,362

192,010

406,482

311,130

255,644

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

258,362

192,010

406,482

311,130

255,644

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

228,217

171,316

-

-

-

 

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

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

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

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

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

 

228,217

171,316

-

-

-

 

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

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

 

 

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

3,645,215

3,561,517

1,975,965

1,976,955

2,202,513

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

3,645,215

3,561,517

1,975,965

1,976,955

2,202,513

 

 

 

 

 

 

Stocks

3,519,926

3,579,929

-

-

-

Trade debtors

186,544

1,506,932

-

-

-

Other debtors, deposits & prepayments

39,675

7,699

-

-

-

Cash & bank balances

35,746

64,900

-

-

-

Others

-

7,033

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

3,781,891

5,166,493

5,985,601

3,476,471

2,436,352

 

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

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

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

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

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

TOTAL ASSET

7,427,106

8,728,010

7,961,566

5,453,426

4,638,865

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

258,622

1,683,956

-

-

-

Other creditors & accruals

150,742

127,592

-

-

-

Hire purchase & lease creditors

86,394

93,851

-

-

-

Bank overdraft

430,161

236,791

-

-

-

Short term borrowings/Term loans

244,319

243,851

-

-

-

Bill & acceptances payable

1,525,119

1,697,690

-

-

-

Amounts owing to director

631,116

486,140

-

-

-

Provision for taxation

27,341

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

3,353,814

4,569,871

5,284,030

2,734,498

2,201,582

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

428,077

596,622

701,571

741,973

234,770

 

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

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

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

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

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

TOTAL NET ASSETS

4,073,292

4,158,139

2,677,536

2,718,928

2,437,283

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

 

 

 

 

 

 

Revaluation reserve

1,561,040

1,561,040

-

-

-

Retained profit/(loss) carried forward

258,362

192,010

406,482

311,130

255,644

 

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

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

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

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

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

TOTAL RESERVES

1,819,402

1,753,050

406,482

311,130

255,644

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,319,402

3,253,050

1,906,482

1,811,130

1,755,644

 

 

 

 

 

 

Long term loans

289,609

517,119

-

-

-

Hire purchase creditors

464,281

387,970

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

753,890

905,089

771,054

907,798

681,639

 

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

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

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

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

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

 

4,073,292

4,158,139

2,677,536

2,718,928

2,437,283

 

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

 

 

 

Cash

35,746

64,900

-

-

-

Net Liquid Funds

(1,919,534)

(1,869,581)

-

-

-

Net Liquid Assets

(3,091,849)

(2,983,307)

701,571

741,973

234,770

Net Current Assets/(Liabilities)

428,077

596,622

701,571

741,973

234,770

Net Tangible Assets

4,073,292

4,158,139

2,677,536

2,718,928

2,437,283

Net Monetary Assets

(3,845,739)

(3,888,396)

(69,483)

(165,825)

(446,869)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

3,039,883

3,177,272

-

-

-

Total Liabilities

4,107,704

5,474,960

6,055,084

3,642,296

2,883,221

Total Assets

7,427,106

8,728,010

7,961,566

5,453,426

4,638,865

Net Assets

4,073,292

4,158,139

2,677,536

2,718,928

2,437,283

Net Assets Backing

3,319,402

3,253,050

1,906,482

1,811,130

1,755,644

Shareholders' Funds

3,319,402

3,253,050

1,906,482

1,811,130

1,755,644

Total Share Capital

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

Total Reserves

1,819,402

1,753,050

406,482

311,130

255,644

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.01

0.01

-

-

-

Liquid Ratio

0.08

0.35

-

-

-

Current Ratio

1.13

1.13

1.13

1.27

1.11

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

136

168

-

-

-

Debtors Ratio

7

71

-

-

-

Creditors Ratio

10

79

-

-

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.92

0.98

-

-

-

Liabilities Ratio

1.24

1.68

3.18

2.01

1.64

Times Interest Earned Ratio

1.46

(0.22)

-

-

-

Assets Backing Ratio

2.72

2.77

1.79

1.81

1.62

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.11

(2.69)

1.54

1.14

3.57

Net Profit Margin

0.70

(2.76)

1.21

1.14

3.57

Return On Net Assets

8.18

(0.92)

4.53

2.05

6.41

Return On Capital Employed

7.26

(0.85)

4.53

2.05

6.41

Return On Shareholders' Funds/Equity

2.00

(6.59)

5.00

3.06

8.90

Dividend Pay Out Ratio (Times)

0.00

0.00

-

-

-

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

 

 

 




FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.33

UK Pound

1

Rs.103.18

Euro

1

Rs.81.58

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.