MIRA INFORM REPORT

 

 

Report Date :

13.06.2014

 

IDENTIFICATION DETAILS

 

Name :

PASTRY PRO SDN. BHD.

 

 

Registered Office :

Menara Hap Seng, 1 & 3, Jalan P. Ramlee, 10th Floor, 50250 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

18.08.1993

 

 

Com. Reg. No.:

273494-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Confectionery Products

 

 

No. of Employees :

55 [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

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.

:

273494-K

COMPANY NAME

:

PASTRY PRO SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

18/08/1993

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

MENARA HAP SENG, 1 & 3, JALAN P. RAMLEE, 10TH FLOOR, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

8 JALAN 3/37A, INDUSTRIAL AREA TAMAN BUKIT MALURI, KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-62721155/62723199

FAX.NO.

:

03-62721158

WEB SITE

:

WWW.PASTRYPRO.COM.MY

CONTACT PERSON

:

ONG HOCK LAI ( MANAGING DIRECTOR )

INDUSTRY CODE

:

46323

PRINCIPAL ACTIVITY

:

TRADING OF CONFECTIONERY PRODUCTS

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 500,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 25,752,128 [2012]

NET WORTH

:

MYR 5,975,217 [2012]

STAFF STRENGTH

:

55 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 


HISTORY / BACKGROUND

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) trading of confectionery products.

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

The immediate holding company of the Subject is GROWTH CONCEPT SDN. BHD., a company incorporated in MALAYSIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 500,000.00

MYR 500,000.00

08/09/1994

MYR 500,000.00

MYR 400,000.00

04/02/1994

MYR 500,000.00

MYR 100,002.00

18/08/1993

MYR 500,000.00

MYR 2.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

GROWTH CONCEPT SDN. BHD.

MENARA HAP SENG, 1 & 3, JALAN P.RAMLEE, 10TH FLOOR, 50250 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

95767D

500,000.00

100.00

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

------

500,000.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. LEOW POY TWEE

Address

:

52, JALAN JEMERLANG KUNING, SIERRAMAS, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

IC / PP No

:

4208521

New IC No

:

520119-04-5038

Date of Birth

:

19/01/1952

Nationality

:

MALAYSIAN

Date of Appointment

:

18/08/1993

 

DIRECTOR 2

 

Name Of Subject

:

MR. ONG HOCK LAI

Address

:

52, JALAN JEMERLANG KUNING, SEIRRAMAS, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

IC / PP No

:

1576243

New IC No

:

480821-01-5177

Date of Birth

:

21/08/1948

Nationality

:

MALAYSIAN

Date of Appointment

:

10/06/2001


MANAGEMENT

 

 

1)

Name of Subject

:

ONG HOCK LAI

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

CROWE HORWATH

Auditor' Address

:

16, TOWER C, MEGAN AVENUE II, 12, JALAN YAP KWAN SENG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SOO SHIOW FANG

IC / PP No

:

A3271329

New IC No

:

751106-10-5538

Address

:

23, JALAN PU 8/5A, TAMAN PUCHONG UTAMA, 47100 PUCHONG, SELANGOR, MALAYSIA.

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

21/03/1996

MEMORANDUM OF DEPOSIT OF FIXED DEPOSIT RECEIPT

MAYBANK BERHAD

MYR 200,000.00

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

:

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

[

]

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

:

30 DAYS

Payment Mode

:

CHEQUES

 

 

OPERATIONS

 

Goods Traded

:

CONFECTIONERY PRODUCTS

Competitor(s)

:

HUP SENG HOON YONG BROTHERS SDN BHD
INBISCO (MALAYSIA) SDN BHD
MARIS PROPERTY MANAGEMENT SDN BHD
NETWORK FOODS (MALAYSIA) SDN BHD
SYARIKAT PERNIAGAAN CHONG MAH SDN BHD

Member(s) / Affiliate(s)

:

MALAYSIA FOOD & BEVERAGE INDUSTRY

 

Total Number of Employees:

 

YEAR

2014

2012

2011

2010

2009


GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

55

50

50

50

50

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of confectionery products.


The Subject is trading of confectionaries foods and decorative items.

 

The Subject supplies its products to the bakeries shops,hotels and estaurants.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0362721155

Current Telephone Number

:

03-62721155/62723199

Match

:

YES

Address Provided by Client

:

8 JALAN 3/37A, INDUSTRIAL AREA TAMAN BUKIT MALURI, KEPONG,52100,KUALA LUMPUR,WILAYAH PERSEKUTUAN.

Current Address

:

8 JALAN 3/37A, INDUSTRIAL AREA TAMAN BUKIT MALURI, KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 11th June 2014 we contacted one of the staff from the Subject and she provided some information.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Erratic

[

2008 - 2012

]

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

Return on Shareholder Funds

:

Favourable

[

54.00%

]

Return on Net Assets

:

Favourable

[

45.79%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's management have been efficient in controlling its operating costs. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.

Working Capital Control

Stock Ratio

:

Unfavourable

[

86 Days

]

Debtor Ratio

:

Unfavourable

[

71 Days

]

Creditors Ratio

:

Unfavourable

[

71 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

Liquidity

Liquid Ratio

:

Favourable

[

1.55 Times

]

Current Ratio

:

Favourable

[

3.06 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

[

19.54 Times

]

Gearing Ratio

:

Favourable

[

0.62 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 turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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

# Based On Manufacturing Production Index



INDUSTRY ANALYSIS

 

MSIC CODE

46323 : Wholesale of confectionary

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 1993, the Subject is a Private Limited company, focusing on trading of confectionery products. 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. 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 moderate size company, the Subject has a total workforce of 55 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.


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. Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds 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 5,975,217, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.


The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry


Based on the above condition, we recommend credit be granted to the Subject promptly.

 



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

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

25,752,128

25,896,463

22,842,881

19,343,791

23,786,962

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

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

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

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

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

Total Turnover

25,752,128

25,896,463

22,842,881

19,343,791

23,786,962

Costs of Goods Sold

(15,819,240)

(16,224,437)

(14,291,677)

(12,989,148)

-

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

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

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

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

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

Gross Profit

9,932,888

9,672,026

8,551,204

6,354,643

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

4,073,426

3,848,046

3,213,788

1,229,361

2,252,866

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

4,073,426

3,848,046

3,213,788

1,229,361

2,252,866

Taxation

(846,641)

(997,769)

(816,257)

(320,613)

(641,911)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

3,226,785

2,850,277

2,397,531

908,748

1,610,955

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

5,048,432

4,698,155

4,300,624

3,791,876

9,680,921

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

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

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

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

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

As restated

5,048,432

4,698,155

4,300,624

3,791,876

9,680,921

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

8,275,217

7,548,432

6,698,155

4,700,624

11,291,876

DIVIDENDS - Ordinary (paid & proposed)

(2,800,000)

(2,500,000)

(2,000,000)

(400,000)

(7,500,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

5,475,217

5,048,432

4,698,155

4,300,624

3,791,876

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

-

-

43,743

41,134

53,833

Bankers' acceptance

-

-

5,445

3,000

-

Hire purchase

-

-

458

5,500

5,500

Term loan / Borrowing

-

-

184,874

160,325

135,520

Others

219,662

236,027

-

-

6,796

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

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

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

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

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

219,662

236,027

234,520

209,959

201,649

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

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

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

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

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

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

1,117,284

739,897

859,573

1,052,599

1,437,455

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

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

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

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

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

TOTAL LONG TERM ASSETS

1,117,284

739,897

859,573

1,052,599

1,437,455

Stocks

6,039,918

4,548,016

4,623,668

3,743,394

4,799,555

Trade debtors

4,988,213

6,099,601

5,583,808

5,125,328

4,471,319

Other debtors, deposits & prepayments

171,128

486,386

543,560

599,444

549,618

Amount due from holding company

13,099

-

-

-

-

Amount due from related companies

735,958

584,446

295,604

642,832

767,201

Cash & bank balances

324,448

30,883

109,755

55,559

10,890

Others

-

-

-

9,159

-

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

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

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

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

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

TOTAL CURRENT ASSETS

12,272,764

11,749,332

11,156,395

10,175,716

10,598,583

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

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

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

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

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

TOTAL ASSET

13,390,048

12,489,229

12,015,968

11,228,315

12,036,038

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

3,069,286

1,912,726

1,812,384

1,212,433

1,804,365

Other creditors & accruals

480,629

373,109

322,194

117,762

136,091

Hire purchase & lease creditors

-

-

-

6,092

73,340

Bank overdraft

-

314,399

606,385

1,256,583

915,941

Short term borrowings/Term loans

300,965

286,744

215,520

234,776

185,551

Bill & acceptances payable

-

-

293,000

116,000

709,000

Amounts owing to holding company

-

86,067

111,871

107,488

255,076

Provision for taxation

163,600

291,000

246,000

-

43,000

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

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

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

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

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

TOTAL CURRENT LIABILITIES

4,014,480

3,264,045

3,607,354

3,051,134

4,122,364

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

8,258,284

8,485,287

7,549,041

7,124,582

6,476,219

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

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

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

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

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

TOTAL NET ASSETS

9,375,568

9,225,184

8,408,614

8,177,181

7,913,674

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

500,000

500,000

500,000

500,000

500,000

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

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

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

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

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

TOTAL SHARE CAPITAL

500,000

500,000

500,000

500,000

500,000

Retained profit/(loss) carried forward

5,475,217

5,048,432

4,698,155

4,300,624

3,791,876

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

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

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

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

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

TOTAL RESERVES

5,475,217

5,048,432

4,698,155

4,300,624

3,791,876

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

5,975,217

5,548,432

5,198,155

4,800,624

4,291,876

Long term loans

3,400,351

3,676,752

3,210,459

3,376,557

3,615,706

Hire purchase creditors

-

-

-

-

6,092

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

3,400,351

3,676,752

3,210,459

3,376,557

3,621,798

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

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

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

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

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

9,375,568

9,225,184

8,408,614

8,177,181

7,913,674

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

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

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

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

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

 


FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

324,448

30,883

109,755

55,559

10,890

Net Liquid Funds

324,448

(283,516)

(789,630)

(1,317,024)

(1,614,051)

Net Liquid Assets

2,218,366

3,937,271

2,925,373

3,381,188

1,676,664

Net Current Assets/(Liabilities)

8,258,284

8,485,287

7,549,041

7,124,582

6,476,219

Net Tangible Assets

9,375,568

9,225,184

8,408,614

8,177,181

7,913,674

Net Monetary Assets

(1,181,985)

260,519

(285,086)

4,631

(1,945,134)

BALANCE SHEET ITEMS

Total Borrowings

3,701,316

4,277,895

4,325,364

4,990,008

5,505,630

Total Liabilities

7,414,831

6,940,797

6,817,813

6,427,691

7,744,162

Total Assets

13,390,048

12,489,229

12,015,968

11,228,315

12,036,038

Net Assets

9,375,568

9,225,184

8,408,614

8,177,181

7,913,674

Net Assets Backing

5,975,217

5,548,432

5,198,155

4,800,624

4,291,876

Shareholders' Funds

5,975,217

5,548,432

5,198,155

4,800,624

4,291,876

Total Share Capital

500,000

500,000

500,000

500,000

500,000

Total Reserves

5,475,217

5,048,432

4,698,155

4,300,624

3,791,876

LIQUIDITY (Times)

Cash Ratio

0.08

0.01

0.03

0.02

0.00

Liquid Ratio

1.55

2.21

1.81

2.11

1.41

Current Ratio

3.06

3.60

3.09

3.34

2.57

WORKING CAPITAL CONTROL (Days)

Stock Ratio

86

64

74

71

74

Debtors Ratio

71

86

89

97

69

Creditors Ratio

71

43

46

34

28

SOLVENCY RATIOS (Times)

Gearing Ratio

0.62

0.77

0.83

1.04

1.28

Liabilities Ratio

1.24

1.25

1.31

1.34

1.80

Times Interest Earned Ratio

19.54

17.30

14.70

6.86

12.17

Assets Backing Ratio

18.75

18.45

16.82

16.35

15.83

PERFORMANCE RATIO (%)

Operating Profit Margin

15.82

14.86

14.07

6.36

9.47

Net Profit Margin

12.53

11.01

10.50

4.70

6.77

Return On Net Assets

45.79

44.27

41.01

17.60

31.02

Return On Capital Employed

45.79

42.81

38.25

15.25

27.57

Return On Shareholders' Funds/Equity

54.00

51.37

46.12

18.93

37.53

Dividend Pay Out Ratio (Times)

0.87

0.88

0.83

0.44

4.66

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0





 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.33

UK Pound

1

Rs.99.68

Euro

1

Rs.80.30

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.