MIRA INFORM REPORT

 

 

Report Date :

07.06.2014

 

IDENTIFICATION DETAILS

 

Name :

PROMAT (MALAYSIA) SDN. BHD.

 

 

Registered Office :

10-2B, Jalan Puteri 2/3, Bandar Puteri, 47100 Puchong, Selangor,

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

12.09.1998

 

 

Com. Reg. No.:

20 [2014]

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of passive protection and high thermal insulation building materials

 

 

No. of Employees

20 [2014]

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

Clear

 

NOTES :

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

 

ECGC Country Risk Classification List – 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

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

 

MALAYSIA ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with 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.

:

468842-A

COMPANY NAME

:

PROMAT (MALAYSIA) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

12/09/1998

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

10-2B, JALAN PUTERI 2/3, BANDAR PUTERI, 47100 PUCHONG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

UNIT 19-02-01 LEVEL 2, PNB DAMANSARA, NO. 19, LORONG DUNGUN DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-20958555

FAX.NO.

:

03-20952111

WEB SITE

:

WWW.PROMAT-AP.COM

CONTACT PERSON

:

RAJARATHNAM ( DIRECTOR )

INDUSTRY CODE

:

47520

PRINCIPAL ACTIVITY

:

TRADING OF PASSIVE PROTECTION AND HIGH THERMAL INSULATION BUILDING MATERIALS

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH AND 400,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 8,320,566 [2012]

NET WORTH

:

MYR 6,020,698 [2012]

STAFF STRENGTH

:

20 [2014]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

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) trading of passive protection and high thermal insulation building materials.

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

 

The immediate holding company of the Subject is PROMAT INTERNATIONAL (ASIA PACIFIC) LTD, a company incorporated in HONG KONG.

The ultimate holding company of the Subject is ETEX GROUP S.A., a company incorporated in BELGIUM.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

29/01/2013

MYR 500,000.00

MYR 500,000.00

31/12/2011

MYR 100,000.00

MYR 100,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

PROMAT INTERNATIONAL (ASIA PACIFIC) LTD

ROOM 1010, CC WU BUILDING, 302-308 HENNESSY ROAD WANCHAI, HONG KONG.

1362701900003

499,000.00

99.80

PROMAT BUILDING SYSTEM PTE LTD

10, SCIENCE PARK ROAD, 03-14, THE ALPHA, SINGAPORE SCIENCEPARK II, 117684, SINGAPORE.

199002185G

1,000.00

0.20

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

------

500,000.00

100.00

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

=====

+ Also Director




DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

OLIVIER REGINALD CHRISTIAN FRANCOIS MARIE DE BIOLLEY

Address

:

25, JALAN SERI BERINGIN 4, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

EH957331

Nationality

:

BELGIAN

Date of Appointment

:

05/04/2012

 

DIRECTOR 2

 

Name Of Subject

:

MR. RAJARATHNAM A/L KRISHNAN

Address

:

5, JALAN SHAHBANDAR 26/6, BANDAR MAHKOTA CHERAS, 43200 CHERAS, SELANGOR, MALAYSIA.

IC / PP No

:

6945404

New IC No

:

621208-01-5327

Date of Birth

:

08/12/1962

Nationality

:

MALAYSIAN

Date of Appointment

:

07/02/2011

 

DIRECTOR 3

 

Name Of Subject

:

HO KIN FUNG SAMSON

Address

:

B-10-8, PANGSAPURI MELUR, 72A, JALAN 2/48A, SENTUL PERDANA, 51000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

K01235292

Nationality

:

CHINESE

Date of Appointment

:

01/06/2011




 

MANAGEMENT

 

 

 

1)

Name of Subject

:

CHUA SWEE HOCK

Position

:

REGIONAL MANAGER

 

2)

Name of Subject

:

RAJARATHNAM

Position

:

DIRECTOR

 

3)

Name of Subject

:

LILIAN KHOO. S. S.

Position

:

ADMIN MANAGER

 

4)

Name of Subject

:

HO KIN FUNG SAMSON

Position

:

MANAGER

 

 

 

AUDITOR

 

Auditor

:

A.K.WOO & ASSOCIATES

Auditor' Address

:

10-2A, JALAN PUTERI 2/3, BANDAR PUTERI, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. WONG KIM YOONG

New IC No

:

710113-10-6431

Address

:

80, JALAN PUTERI 8/9, BANDAR PUTERI, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

2)

Company Secretary

:

MS. LEONG MAI YEEN

IC / PP No

:

A1367301

New IC No

:

691006-08-5224

Address

:

16, JALAN TK 2/16, TAMAN KINRARA, BATU 7 1/2, JALAN PUCHONG, 47180 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

BANKING


No Banker found in our databank.

 

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 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

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
CASH

 

 

OPERATIONS

 

Goods Traded

:

PASSIVE PROTECTION AND HIGH THERMAL INSULATION BUILDING MATERIALS

Competitor(s)

:

AALBORG PORTLAND MALAYSIA SDN BHD
LAFARGE CEMENT SDN BHD

Ownership of premises

:

LEASED/RENTED

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

2009

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

COMPANY

20

20

25

20

7

6

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of passive protection and high thermal insulation building materials.

Some of the Subject's product are:

- fire protection equipment for building, marine, tunnels, spray
- industrial insulation- high temperature insulation.



 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-20958555

Match

:

N/A

Address Provided by Client

:

UNIT 19-02-01 LEVEL 2, TNB DAMANSARA, NO. 19, LORONG DUNGUN DAMANSARA HEIGHTS,50490,KUALA LUMPUR,WILAYAH PERSEKUTUAN.

Current Address

:

UNIT 19-02-01 LEVEL 2, PNB DAMANSARA, NO. 19, LORONG DUNGUN DAMANSARA HEIGHTS, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


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

The building name provided is incorrect.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

2008 - 2012

]

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

Return on Shareholder Funds

:

Acceptable

[

16.32%

]

Return on Net Assets

:

Acceptable

[

23.88%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Favourable

[

14 Days

]

Debtor Ratio

:

Unfavourable

[

90 Days

]

Creditors Ratio

:

Favourable

[

12 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in 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

[

1.70 Times

]

Current Ratio

:

Unfavourable

[

1.79 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

:

Favourable

[

351.63 Times

]

Gearing Ratio

:

Favourable

[

0.03 Times

]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

Overall Assessment :

Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

Overall financial condition of the Subject : STRONG

 

 

 

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



INDUSTRY ANALYSIS

 

MSIC CODE

47520 : Retail sale of construction materials, hardware, paints and glass

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 1998, the Subject is a Private Limited company, focusing on trading of passive protection and high thermal insulation building materials. 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 should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. Being a small company, the Subject's business operation is supported by 20 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

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. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 6,020,698, 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)

PROMAT (MALAYSIA) SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

8,320,566

8,137,704

6,774,662

10,234,165

6,784,152

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

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

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

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

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

Total Turnover

8,320,566

8,137,704

6,774,662

10,234,165

6,784,152

Costs of Goods Sold

(4,635,361)

(4,478,067)

(3,800,448)

-

-

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

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

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

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

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

Gross Profit

3,685,205

3,659,637

2,974,214

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

1,469,834

1,649,490

2,756,820

1,911,033

1,429,970

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,469,834

1,649,490

2,756,820

1,911,033

1,429,970

Taxation

(487,432)

(350,904)

(781,824)

(418,994)

(349,460)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

982,402

1,298,586

1,974,996

1,492,039

1,080,510

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

4,538,296

5,239,710

3,264,714

1,772,675

692,165

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

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

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

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

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

As restated

4,538,296

5,239,710

3,264,714

1,772,675

692,165

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,520,698

6,538,296

5,239,710

3,264,714

1,772,675

DIVIDENDS - Ordinary (paid & proposed)

-

(2,000,000)

-

-

-

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

5,520,698

4,538,296

5,239,710

3,264,714

1,772,675

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

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

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

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

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

Hire purchase

4,192

274

-

-

-

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

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

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

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

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

4,192

274

-

-

-

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

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

 

BALANCE SHEET

 

PROMAT (MALAYSIA) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

3,304,924

310,362

68,221

75,467

74,659

Deferred assets

-

32,361

-

-

-

Others

-

-

-

24,149

-

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

32,361

-

24,149

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

3,304,924

342,723

68,221

99,616

74,659

Stocks

311,624

393,093

295,571

438,608

533,431

Trade debtors

2,056,315

690,022

1,038,253

713,774

312,269

Other debtors, deposits & prepayments

178,336

127,706

248,641

11,448

25,853

Deposits with financial institutions

-

-

-

81,795

81,795

Amount due from holding company

1,436,698

1,372,299

3,994

59,768

-

Amount due from related companies

4,873

-

-

-

-

Cash & bank balances

2,512,838

1,802,317

3,814,080

2,780,065

1,144,286

Others

-

334,602

170,585

11,327

92,152

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

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

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

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

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

TOTAL CURRENT ASSETS

6,500,684

4,720,039

5,571,124

4,096,785

2,189,786

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

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

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

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

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

TOTAL ASSET

9,805,608

5,062,762

5,639,345

4,196,401

2,264,445

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

151,536

43,938

16,947

207,958

3,739

Other creditors & accruals

535,698

98,602

189,193

196,267

175,736

Hire purchase & lease creditors

59,760

32,256

-

-

-

Amounts owing to holding company

2,369,121

-

-

-

79,629

Amounts owing to related companies

474,819

155,614

6,587

427,462

119,634

Provision for taxation

41,329

-

-

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

3,632,263

330,410

212,727

831,687

378,738

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

2,868,421

4,389,629

5,358,397

3,265,098

1,811,048

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

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

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

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

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

TOTAL NET ASSETS

6,173,345

4,732,352

5,426,618

3,364,714

1,885,707

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

500,000

100,000

100,000

100,000

100,000

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

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

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

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

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

TOTAL SHARE CAPITAL

500,000

100,000

100,000

100,000

100,000

Retained profit/(loss) carried forward

5,520,698

4,538,296

5,239,710

3,264,714

1,772,675

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

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

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

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

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

TOTAL RESERVES

5,520,698

4,538,296

5,239,710

3,264,714

1,772,675

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

6,020,698

4,638,296

5,339,710

3,364,714

1,872,675

Hire purchase creditors

135,128

94,056

-

-

-

Deferred taxation

17,519

-

86,908

-

13,032

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

152,647

94,056

86,908

-

13,032

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

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

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

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

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

6,173,345

4,732,352

5,426,618

3,364,714

1,885,707

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

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

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

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

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

 

FINANCIAL RATIO

 

 

PROMAT (MALAYSIA) SDN. BHD.

 

TYPES OF FUNDS

Cash

2,512,838

1,802,317

3,814,080

2,780,065

1,144,286

Net Liquid Funds

2,512,838

1,802,317

3,814,080

2,780,065

1,144,286

Net Liquid Assets

2,556,797

3,996,536

5,062,826

2,826,490

1,277,617

Net Current Assets/(Liabilities)

2,868,421

4,389,629

5,358,397

3,265,098

1,811,048

Net Tangible Assets

6,173,345

4,732,352

5,426,618

3,364,714

1,885,707

Net Monetary Assets

2,404,150

3,902,480

4,975,918

2,826,490

1,264,585

BALANCE SHEET ITEMS

Total Borrowings

194,888

126,312

0

0

0

Total Liabilities

3,784,910

424,466

299,635

831,687

391,770

Total Assets

9,805,608

5,062,762

5,639,345

4,196,401

2,264,445

Net Assets

6,173,345

4,732,352

5,426,618

3,364,714

1,885,707

Net Assets Backing

6,020,698

4,638,296

5,339,710

3,364,714

1,872,675

Shareholders' Funds

6,020,698

4,638,296

5,339,710

3,364,714

1,872,675

Total Share Capital

500,000

100,000

100,000

100,000

100,000

Total Reserves

5,520,698

4,538,296

5,239,710

3,264,714

1,772,675

LIQUIDITY (Times)

Cash Ratio

0.69

5.45

17.93

3.34

3.02

Liquid Ratio

1.70

13.10

24.80

4.40

4.37

Current Ratio

1.79

14.29

26.19

4.93

5.78

WORKING CAPITAL CONTROL (Days)

Stock Ratio

14

18

16

16

29

Debtors Ratio

90

31

56

25

17

Creditors Ratio

12

4

2

7

0

SOLVENCY RATIOS (Times)

Gearing Ratio

0.03

0.03

0.00

0.00

0.00

Liabilities Ratio

0.63

0.09

0.06

0.25

0.21

Times Interest Earned Ratio

351.63

6,021.04

0.00

0.00

0.00

Assets Backing Ratio

12.35

47.32

54.27

33.65

18.86

PERFORMANCE RATIO (%)

Operating Profit Margin

17.67

20.27

40.69

18.67

21.08

Net Profit Margin

11.81

15.96

29.15

14.58

15.93

Return On Net Assets

23.88

34.86

50.80

56.80

75.83

Return On Capital Employed

23.65

34.63

50.80

56.80

75.83

Return On Shareholders' Funds/Equity

16.32

28.00

36.99

44.34

57.70

Dividend Pay Out Ratio (Times)

0.00

1.54

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.59.20

UK Pound

1

Rs.99.52

Euro

1

Rs.80.83

 

INFORMATION DETAILS

 

Analysis Done by :

SUB DIV RAS SUM KAR

 

 

Report Prepared by :

NIS

 

               

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.