MIRA INFORM REPORT

 

 

Report Date :

29.07.2014

 

IDENTIFICATION DETAILS

 

Name :

INTEGRO TECHNOLOGIES SDN. BHD.

 

 

Formerly Known As :

ADV INTEGRO SDN BHD (08/04/2002)
SOFTCHAT.COM SDN BHD (11/11/2000)

 

 

Registered Office :

Wisma Goshen, 60 & 62, Jalan Ss 22/21, Damansara Jaya, 2nd Floor, 47400 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

19.09.2000

 

 

Com. Reg. No.:

526623-U

 

 

Legal Form :

Private Limited

 

 

Line of Business :

The Subject is principally engaged in the (as a / as an) it solution provider for banks.

 

 

No. of Employees

Not Available

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 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.

:

526623-U

COMPANY NAME

:

INTEGRO TECHNOLOGIES SDN. BHD.

FORMER NAME

:

ADV INTEGRO SDN BHD (08/04/2002)
SOFTCHAT.COM SDN BHD (11/11/2000)

INCORPORATION DATE

:

19/09/2000

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

WISMA GOSHEN, 60 & 62, JALAN SS 22/21, DAMANSARA JAYA, 2ND FLOOR, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

SUITE 3, LEVEL 21, BLOCK 2B, PLAZA SENTRAL, JALAN STESEN SENTRAL 5, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-22614079

FAX.NO.

:

03-22614078

WEB SITE

:

WWW.INTEGROSYS.COM

CONTACT PERSON

:

WONG LEE SIN ( MANAGING DIRECTOR )

INDUSTRY CODE

:

62091

PRINCIPAL ACTIVITY

:

IT SOLUTION PROVIDER FOR BANKS

AUTHORISED CAPITAL

:

MYR 100,000.00 DIVIDED INTO
ORDINARY SHARE 100,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 100,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 4,813,214 [2013]

NET WORTH

:

MYR 701,025 [2013]

BANKER (S)

 

MALAYAN BANKING BHD

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

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) it solution provider for banks.

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

 

The immediate holding company of the Subject is INTEGRO TECHNOLOGIES PTE LTD, a company incorporated in SINGAPORE.

The ultimate holding company of the Subject is AURIONPRO SOLUTIONS LIMITED, a company incorporated in INDIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 100,000.00

MYR 100,000.00

19/09/2000

MYR 100,000.00

MYR 2.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

INTEGRO TECHNOLOGIES PTE LTD

438B, ALEXANDRA ROAD, 05-11, ALEXANDRA TECHNOPARK, 119968, SINGAPORE.

200005556C

100,000.00

100.00

 

 

 

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

------

 

 

 

100,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

SHEKHAR MULLATTI

Address

:

1, JALAN KUALA, 07-01, SINGAPORE, 239639, SINGAPORE.

IC / PP No

:

Z2077342

Nationality

:

INDIAN

Date of Appointment

:

26/01/2011

 

DIRECTOR 2

 

Name Of Subject

:

PARESH CHANDULAL ZAVERI

Address

:

3, SIGLAP ROAD, 06-23, MANDARIN GARDENS, 448907, SINGAPORE.

IC / PP No

:

Z1787499

Nationality

:

INDIAN

Date of Appointment

:

26/01/2011

 

DIRECTOR 3

 

Name Of Subject

:

MR. WONG LEE SIN

Address

:

26, JALAN BS 3/4, SEKSYEN 3, TAMAN BUKIT SERDANG, 43300 SERI KEMBANGAN, SELANGOR, MALAYSIA.

New IC No

:

810227-04-5049

Date of Birth

:

27/02/1981

Nationality

:

MALAYSIAN

Date of Appointment

:

06/12/2011

 

DIRECTOR 4

 

Name Of Subject

:

MR. GAN YONG HAO

Address

:

23, JALAN JASA 24B, TAMAN MEDAN PEJASA, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

New IC No

:

870119-06-5581

Date of Birth

:

19/01/1987

Nationality

:

MALAYSIAN

Date of Appointment

:

01/11/2013



MANAGEMENT

 

 

 

1)

Name of Subject

:

WONG LEE SIN

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

GANE

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

KENNY

 

Position

:

ADMIN & HUMAN RESOURCE MANAGER

 

 

 

AUDITOR

 

Auditor

:

ROGER YUE, TAN & ASSOCIATES

Auditor' Address

:

WISMA GOSHEN , 60 & 62, JALAN SS 22/21, DAMANSARA JAYA, GROUND & 1ST FLOOR, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LAM LEE SAN

 

IC / PP No

:

A2855638

 

New IC No

:

740810-14-5740

 

Address

:

B-02-17, SRI CAMELLIA APT., JALAN PUTERI 7/15, BANDAR PUTERI PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

2)

Company Secretary

:

MS. ERICIA TAN YOKE KUAN

 

 

 

 

 

New IC No

:

820603-14-6214

 

Address

:

C-17-06, AMPANG PRIMA CONDOMINIUM, JALAN WAWASAN AMPANG 2/5, BANDAR BARU AMPANG, 68000 AMPANG, SELANGOR, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

ENCUMBRANCE (S)


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

 

 

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


The Subject refused to disclose its suppliers country.

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

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

THAILAND

PHILIPPINES

SINGAPORE

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

N/A

Type of Customer

:

BANKS

 

OPERATIONS

 

Services

:

IT SOLUTION PROVIDER FOR BANKS

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2013

2011

2010

2009

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

80

65

40

34

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) it solution provider for banks.

The Subject's headquarters is situated in Singapore.

The Subject develops large-scale J2EE-based solutions for the financial industry.

The Subject's group of employees is led by ex- Bankers who have good knowledge about banking services and how the Subject's product can be improved to assist the banks.

The product suite consists of two main categories:

* The SmartLender suite
* The Internet Banking suite

Each product is further sub-divided into modules, to cater to the needs and requirements of different banks and countries. The bank enjoys the flexibility of implementing the various modules in phases, in accordance with the bank’s requirements and available budget.

The SmartLender suite comprises of the SmartLender Retail and SmartLender Corporate products. Within each of these products are standalone modules - e.g. Credit Processing System, Credit Control System, Credit Administration System, Collateral Management System, SmartLender Data Warehouse, and etc - which may be implemented in stages.

The Internet Banking suite consists of Retail Internet Banking and Corporate Internet Banking. The latter is further sub-divided into two main products, i.e. Cash Management and Trade Finance. Similarly, these products are made up of further standalone modules, which again can be implemented in stages.

Integro’s applications are developed on a common platform, the Open Finance Architecture (OFA).


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-22614079

Match

:

N/A

 

 

 

Address Provided by Client

:

UNIT 16.09 16TH FLOOR KENANGA I INTERNATIONAL JALAN SULTAN ISMAIL 50250 MALAYSIA

Current Address

:

SUITE 3, LEVEL 21, BLOCK 2B, PLAZA SENTRAL, JALAN STESEN SENTRAL 5, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 25th July 2014, we contacted one of the staff from the Subject and she provided some information about the Subject.

The Subject had shifted from the address provided.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Unfavourable

[

5.15%

]

 

Return on Net Assets

:

Acceptable

[

11.35%

]

 

 

 

 

 

 

 

 

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject's management have been efficient in controlling its operating costs. 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

:

Nil

[

0 Days

]

 

Debtor Ratio

:

Unfavourable

[

126 Days

]

 

Creditors Ratio

:

Favourable

[

0 Days

]

 

 

 

 

 

 

 

 

As the Subject is a service oriented company, the Subject does not need to keep stocks. 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

:

Favourable

[

1.40 Times

]

 

Current Ratio

:

Unfavourable

[

1.40 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Nil

[

0.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.04 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was nil as it did not pay any interest during the year. 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 :

 

 

 

 

 

 

Due to the efficient control of its operating costs, the Subject was able to remain profitable despite lower turnover achieved during the year. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the Subject : FAIR

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

 

 

 

 

 



INDUSTRY ANALYSIS

 

MSIC CODE

62091 : Information Communication Technology (ICT) system security

 

 

INDUSTRY :

INFORMATION TECHNOLOGY

 

 

 

Malaysian IT spending is expected to reach US$5.6bn in 2013, up 7%, although economic activity is expected to slow over the coming quarters. Demand for IT products and services is forecast to stay resilient overall, even as economic growth moderates. There should be several areas of opportunity, particularly in key spending verticals such as telecoms, and a new government Digital Malaysia Plan was unveiled in 2012. Spending on IT products and services should be boosted by growing enterprise and government interest in cloud computing, and ICT-friendly budget measures, but much will depend on confidence in a sustainable economic recovery.

 

Malaysia's Information Technology Industry is expected to continue perform well in 2013, despite the possible constraints of the global economy. This is especially in light of the global ICT industry forecast, which is expected to grow by 3% in 2013 with global ICT spending estimated to reach US$3.7 trillion, in spite of earlier estimation pegging global growth to only be in the region of 2.5%.

 

At the global level, demand for personal computers (PCs) remains weak with declining orders notably from advanced economies. In addition, the growing popularity of smartphones and media tablets has also affected the sales of PCs despite the introduction of the Ultrabook, which provides better mobile computing solutions. Consequently, output of the office, accounting and machinery segment in Malaysia contracted further by 6.9% during the first seven months of 2012.

 

Moreover, the computer hardware sales had reach US$2.7billion in year 2012 and it expected to growth to US$2.9billion in year 2013. Where else, the sales of software had reach US$876million in 2012 and it expected to continue growth to US$952million in 2013.

 

The IT services sales had reached US$1.6billion in 2012 and forcasted to growth US$1.8billion in 2013. Moreover, in IT services, 83 companies were granted the Multimedia Super Corridor Malaysia (MSC Malaysia) status with total estimated investment of RM1,465.3 million and 7,891 employment opportunities during the first eight months of 2012. The ICT industry in Malaysia estimated to provide 50,000 total jobs and RM5.5billion investments by 2015 since the ICT services sector is expected to continue to play a crucial role in contributing to Malaysia’s aim of achieving high income status by 2020.

 

Government introduced lower interest rates and government import tax exemptions for broadband equipment, including notebooks as a steps to increase ICT market value. 2012 Malaysian PC sales supported by the government will encourage to the greater broadband penetration. Besides, in 2012 the government announced its latest Digital Malaysia Masterplan to drive the next stageof development of Malaysia's ICT sector. The plan will propose a number of measures to strengthen Malaysia's ICT ecosystem, including talent development, as well as stimulatingdemand by consumers and businesses for ICT products and services. Encouraging the creation ofmore local applications for cloud computing is expected to be one focus of the Digital Malaysiaplan. The government's plan to develop a national cloud computing programme should also driveopportunities in this key emerging area for vendors.

 

The rapid growth of digital information in Malaysia has been inevitable with several national initiatives of the government, including the Digital Malaysia programme which aims to advance our country towards a developed digital economy by 2020. It is expected that the growth of digital information will continue moving towards into 2013. While organisations in the digital economy could leverage on the information they generate everyday to better serve customers and increase productivity, the same information can be a major liability if not properly protected and managed.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 2000, the Subject is a Private Limited company, focusing on IT solution provider for banks. 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. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. 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.


Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject however is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 701,025, 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.

We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days.


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 promptly.

 



 

PROFIT AND LOSS ACCOUNT

 

 

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

INTEGRO TECHNOLOGIES SDN. BHD.

 

Financial Year End

2013-03-31

2012-03-31

2011-03-31

2010-03-31

2009-06-30

Months

12

12

12

9

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

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

4,813,214

6,914,972

9,722,464

5,881,522

12,135,904

 

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

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

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

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

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

Total Turnover

4,813,214

6,914,972

9,722,464

5,881,522

12,135,904

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

79,535

43,315

7,938

230,486

86,305

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

79,535

43,315

7,938

230,486

86,305

Taxation

(43,415)

(49,936)

(28,000)

(52,041)

(12,783)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

36,120

(6,621)

(20,062)

178,445

73,522

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

564,905

571,526

591,588

413,143

339,621

 

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

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

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

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

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

As restated

564,905

571,526

591,588

413,143

339,621

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

601,025

564,905

571,526

591,588

413,143

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

601,025

564,905

571,526

591,588

413,143

 

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

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

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

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

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

 

 

 

 

 

 

 

 

BALANCE SHEET

 

INTEGRO TECHNOLOGIES SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

94,547

119,815

169,127

56,015

109,904

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

94,547

119,815

169,127

56,015

109,904

 

 

 

 

 

 

Trade debtors

1,665,708

2,179,535

2,723,791

3,255,979

3,466,669

Other debtors, deposits & prepayments

103,465

110,388

48,540

39,206

113,647

Amount due from holding company

345,134

-

-

-

-

Cash & bank balances

12,170

401,806

113,286

954,421

1,383,205

Others

-

13,395

40,000

15,000

31,826

 

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

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

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

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

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

TOTAL CURRENT ASSETS

2,126,477

2,705,124

2,925,617

4,264,606

4,995,347

 

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

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

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

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

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

TOTAL ASSET

2,221,024

2,824,939

3,094,744

4,320,621

5,105,251

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

-

352,646

415,661

1,042,937

771,240

Other creditors & accruals

1,487,322

976,313

1,752,931

999,430

778,672

Bank overdraft

27,673

-

-

-

-

Amounts owing to holding company

-

831,075

254,626

1,586,666

3,042,196

Provision for taxation

5,004

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

1,519,999

2,160,034

2,423,218

3,629,033

4,592,108

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

606,478

545,090

502,399

635,573

403,239

 

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

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

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

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

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

TOTAL NET ASSETS

701,025

664,905

671,526

691,588

513,143

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

100,000

100,000

100,000

100,000

100,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

100,000

100,000

100,000

100,000

100,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

601,025

564,905

571,526

591,588

413,143

 

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

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

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

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

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

TOTAL RESERVES

601,025

564,905

571,526

591,588

413,143

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

701,025

664,905

671,526

691,588

513,143

 

 

 

 

 

 

 

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

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

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

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

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

 

701,025

664,905

671,526

691,588

513,143

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

INTEGRO TECHNOLOGIES SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

12,170

401,806

113,286

954,421

1,383,205

Net Liquid Funds

(15,503)

401,806

113,286

954,421

1,383,205

Net Liquid Assets

606,478

545,090

502,399

635,573

403,239

Net Current Assets/(Liabilities)

606,478

545,090

502,399

635,573

403,239

Net Tangible Assets

701,025

664,905

671,526

691,588

513,143

Net Monetary Assets

606,478

545,090

502,399

635,573

403,239

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

27,673

0

0

0

0

Total Liabilities

1,519,999

2,160,034

2,423,218

3,629,033

4,592,108

Total Assets

2,221,024

2,824,939

3,094,744

4,320,621

5,105,251

Net Assets

701,025

664,905

671,526

691,588

513,143

Net Assets Backing

701,025

664,905

671,526

691,588

513,143

Shareholders' Funds

701,025

664,905

671,526

691,588

513,143

Total Share Capital

100,000

100,000

100,000

100,000

100,000

Total Reserves

601,025

564,905

571,526

591,588

413,143

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.01

0.19

0.05

0.26

0.30

Liquid Ratio

1.40

1.25

1.21

1.18

1.09

Current Ratio

1.40

1.25

1.21

1.18

1.09

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

0

0

0

0

0

Debtors Ratio

126

115

102

202

104

Creditors Ratio

0

19

16

65

23

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.04

0.00

0.00

0.00

0.00

Liabilities Ratio

2.17

3.25

3.61

5.25

8.95

Times Interest Earned Ratio

0.00

0.00

0.00

0.00

0.00

Assets Backing Ratio

7.01

6.65

6.72

6.92

5.13

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.65

0.63

0.08

3.92

0.71

Net Profit Margin

0.75

(0.10)

(0.21)

3.03

0.61

Return On Net Assets

11.35

6.51

1.18

33.33

16.82

Return On Capital Employed

10.91

6.51

1.18

33.33

16.82

Return On Shareholders' Funds/Equity

5.15

(1.00)

(2.99)

25.80

14.33

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.14

UK Pound

1

Rs.102.22

Euro

1

Rs.81.02

                

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SDA

               

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.