MIRA INFORM REPORT

 

 

Report Date :

17.06.2014

 

IDENTIFICATION DETAILS

 

Name :

GLOBAL WORLDLINK SDN. BHD.

 

 

Registered Office :

32A-2, Lorong Batu Nilam 3a, Bandar Bukit Tinggi, 41200 Klang, Selangor,

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.10.2012

 

 

Date of Incorporation :

10.10.2011

 

 

Com. Reg. No.:

963429-P

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is principally engaged in the logistics and forwarding services and other related services.

 

 

No. of Employees

05 [2014]

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Slow

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

A1

A1

 

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.

:

963429-P

COMPANY NAME

:

GLOBAL WORLDLINK SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

10/10/2011

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

32A-2, LORONG BATU NILAM 3A, BANDAR BUKIT TINGGI, 41200 KLANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

BANGUNAN PENTADBIRAN SOUTH POINT, NORTH PORT (M) BHD, PERSIARAN RAJA MUDA MUSA, TINGAKAT 1, 41200 KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31669808

FAX.NO.

:

03-31679809

CONTACT PERSON

:

LOW MING CHIAN ( DIRECTOR )

INDUSTRY CODE

:

52291

PRINCIPAL ACTIVITY

:

LOGISTICS AND FORWARDING SERVICES AND OTHER RELATED SERVICES

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 2.00 DIVIDED INTO
ORDINARY SHARES 2 CASH OF MYR 1.00 EACH.

SALES

:

MYR 3,926,124 [2012]

NET WORTH

:

MYR (75,892) [2012]

STAFF STRENGTH

:

5 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

WEAK

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) logistics and forwarding services and other related services.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

09/04/2013

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

(%)

MS. TAN GEAK HOE +

39, JALAN JENARIS 6, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.

720717-10-5578 A2239294

1.00

50.00

MR. LOW MING CHIAN +

39, JALAN JENARIS 6, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.

690910-10-5751 A1344789

1.00

50.00

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

------

2.00

100.00

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. TAN GEAK HOE

Address

:

39, JALAN JENARIS 6, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

A2239294

New IC No

:

720717-10-5578

Date of Birth

:

17/07/1972

Nationality

:

MALAYSIAN

Date of Appointment

:

19/12/2011

 

DIRECTOR 2

 

Name Of Subject

:

MR. LOW MING CHIAN

Address

:

39, JALAN JENARIS 6, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

A1344789

New IC No

:

690910-10-5751

Date of Birth

:

10/09/1969

Nationality

:

MALAYSIAN

Date of Appointment

:

10/10/2011



MANAGEMENT

 

 

 

1)

Name of Subject

:

LOW MING CHIAN

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

HENRY TEE & CO

Auditor' Address

:

32A-1, LORONG BATU NILAM 3A, BANDAR BUKIT TINGGI, 41200 KLANG, SELANGOR, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHOK KON KHYUN

IC / PP No

:

H0712047

New IC No

:

680912-12-5028

Address

:

12, JALAN DELIMA 2/KS 6, BANDAR BOTANIC, 41200 KLANG, 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

:

N/A

Overseas

:

N/A


The Subject refused to disclose its suppliers.

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

[

]

Fair 91-120 Days

[

X

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Services

:

LOGISTICS AND FORWARDING SERVICES AND OTHER RELATED SERVICES

 

Total Number of Employees:

 

YEAR

2014

2013

2012

GROUP

N/A

N/A

N/A

COMPANY

5

5

5

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) logistics and forwarding services and other related services.

The Subject is engaged in the forwarding and logistic services.

The Subject however refused to disclose further information on its operation.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

603 33249808

Current Telephone Number

:

03-31669808

Match

:

NO

Address Provided by Client

:

NO 65C, PERSIARAN PEGAGA, TAMAN BAYU PERDANA, 41200 KLANG, SELANGOR DARUL EHSAN

Current Address

:

BANGUNAN PENTADBIRAN SOUTH POINT, NORTH PORT (M) BHD, PERSIARAN RAJA MUDA MUSA, TINGAKAT 1, 41200 KLANG, SELANGOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


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

The Subject had shifted from the address provided.


FINANCIAL ANALYSIS

 

 

Profitability

Return on Shareholder Funds

:

Unfavourable

[

100.00%

]

Return on Net Assets

:

Unfavourable

[

(71.87%)

]

Although the Subject's returns showed positive figures it is not reflective of the true situation. The Subject incurred losses during the year and its shareholders' funds have turned red. The positive returns on shareholders' funds is the result of losses divided by negative shareholders' funds. The Subject's management was inefficient in utilising the assets to generate returns.

Working Capital Control

Stock Ratio

:

Nil

[

0 Days

]

Debtor Ratio

:

Favourable

[

26 Days

]

Creditors Ratio

:

Favourable

[

53 Days

]

As the Subject is a service oriented company, the Subject does not need to keep stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Unfavourable

[

0.74 Times

]

Current Ratio

:

Unfavourable

[

0.74 Times

]

A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

Interest Cover

:

Unfavourable

[

(14.75 Times)

]

Gearing Ratio

:

Unfavourable

[

(2.70 Times)

]

The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject's gearing was negative during the year as its shareholders' funds was in the red. This means the Subject is running its business using borrowed money. We consider the Subject as facing high financial risks.

Overall Assessment :

Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. The Subject's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The Subject has high financial risks. If its shareholders do not inject more capital into the company or if its business performance does not improve, its going concern may be in question.

Overall financial condition of the Subject : POOR

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

* Estimate / Preliminary

** Forecast



INDUSTRY ANALYSIS

 

MSIC CODE

52291 : Forwarding of freight

INDUSTRY :

TRANSPORTATION

The Malaysian transportation industry is forecast to grow at a compound annual growth rate of 11.6% to reach RM203.71 billion in 2016.

In 2013, the transportation industry is expected to have a growth of 6.7% due to the implementation of Government Transformation Programme and the Economic Transformation Programme (ETP). According to Budget 2013, RM9.4 billion is allocated for the transportation sector, including RM4.2 billion for improving access and connectivity in urban public transport. Substantial provision is also made for the construction, maintenance and upgrading of roads and bridges, railways, airports, ports and jetties as well as rural infrastructure major ongoing transport projects include the East Coast Highway (LPT) Phase II from Jabor to Kuala Terengganu and the Central Spine Federal Road (Package 3). New projects slated for the year include upgrading of roadworks between Donggongan to Simpang Jalan Papar Spur (Package 1) (Sabah), Pekan-Nenasi-Endau (Pahang); and Batu Maung to Pulau Pinang Second Bridge (Bayan Lepas Expressway) as well as upgrading of rail infrastructure in Lembah Klang (Phase 1). Construction of the West Coast Highway from Taiping to Banting is also expected to commence in 2013.

During the first half of 2012, the transport and storage sector grew 5.9% due to sustained passenger travel and moderate trade activities. Growth was also supported by initiatives to modernise the transport infrastructure, particularly ports, airports and public transport. In 2012, the sector had increased to 5.2% as domestic economic activities remain resilient amid a moderate trade expansion. In addition, Malaysia ranked seventh in the Liner Shipping Connectivity Index (LSCI) by the United Nations Conference on Trade and Development (UNCTAD), underscoring the growing importance of Malaysia as a regional logistics hub. The changing dynamics of the global shipping environment have, however, affected the domestic maritime industry. The introduction of ultra-large ships with a higher carrying capacity has lowered the charter rates due to economies of scale. This has prompted domestic ports to purchase new cranes andbuild new wharfs to cater for the berth of ultra-large ships in efforts to remain competitive.

The performance of the land transport segment is expected to remain steady supported by initiatives to upgrade roads and public transport infrastructure to ensure a seamless movement of goods and services. During the first six months of 2012, the number of vehicles on tolled highways increased 4.5% to 761.4 million. In urban public transport, total ridership on RapidKL and RapidPenang bus services rose 3.8% to 67.5 million passengers during the first six months of 2012.

The air transport market plays an active role in Malaysia's economic development by supporting the country's trade and tourism. The Malaysia's car rental market developing into one of the most mature kind in the Asia-Pacific region. Malaysia's rail network only covers 1,849km and transports 4-4.5 million passengers per year. As such, the rail transportmarket accounts for a small share on the total passanger transportation industry. Malaysia also emerging as an important cruise destination in the Asia-Pacific regoin. During the first half of 2012, growth in the air transport segment was moderate despite sustained demand for passenger travel. Total passenger traffic in airports nationwide expanded 4.1% to 33.2 million partly attributed to increased connectivity following the entry of new airlines to Malaysia such as Mandala Airlines and Bangkok Airways.

A world-class public transport system is imperative as the nation moves towards a high-income and developed economy. The Sungai Buloh-Kajang Line MY Rapid Transit (SBK-MRT) service, which is expected to be operational by 2017, will transform the urban public transport infrastructure in the Klang Valley. Similarly, there is a need to improve the public transport system in major cities outside Klang Valley to facilitate a seamless and efficient movement of people, goods and services.

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2011, the Subject is a Private Limited company, focusing on logistics and forwarding services and other related services. The Subject has been in business for 3 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. With a weak shareholders' backing, the Subject's capital position is weak. Inadequate capital may be a constraint to the Subject as it limits its ability to expand its business in future. We noted that the Subject's issued and paid up capital stands at only MYR 2. This means that its creditors are only able to recover a limited amount. Hence, caution is advised.

Our investigation revealed that the Subject serves both local and overseas clients. Penetrating into the overseas countries has well diversified its business risk. However, being a loss making company indicates that the Subject faces difficulties in the market. Being a small company, the Subject's business operation is supported by 5 employees. Overall, we regard that the Subject's management capability is weak. Without capable management, the Subject is unlikely to be successful and often contribute to unacceptable levels of accountability. Weak management can affect productivity, profitability, sales growth and ultimately can result in the failure of a business.

The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The Subject has generated an unfavourable gearing ratio indicated that the Subject is in high financial risk. The Subject's unfavourable financial performance over the years has wiped out its shareholders' funds to a deficit of MYR 75,892. Therefore, the Subject as a going concern is much dependent on its ability to generate sufficient cash flow and obtain additional financing to meet its future obligations.

The Subject's payment record regarded as fair. With poor financial condition, the Subject may unable to pay its creditors on the given period of time.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. However, we are of the opinion that there are a large number of other companies in the same industry. In another word, we believe that the Subject faces stiff competitions from other local players.

Based on the above unfavourable condition, we regard granting credit to the Subject to be quite risky. Hence, credit is not recommended.

 



PROFIT AND LOSS ACCOUNT

 

 

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

GLOBAL WORLDLINK SDN. BHD.

 

Financial Year End

2012-10-31

Months

12

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

FULL

Currency

MYR

TURNOVER

3,926,124

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

Total Turnover

3,926,124

Costs of Goods Sold

(3,575,178)

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

Gross Profit

350,946

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

PROFIT/(LOSS) FROM OPERATIONS

(75,894)

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

PROFIT/(LOSS) BEFORE TAXATION

(75,894)

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

PROFIT/(LOSS) AFTER TAXATION

(75,894)

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(75,894)

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(75,894)

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

Lease interest

4,819

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

4,819

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

 

 

BALANCE SHEET

 

 

GLOBAL WORLDLINK SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

267,343

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

TOTAL LONG TERM ASSETS

267,343

Trade debtors

276,562

Other debtors, deposits & prepayments

8,448

Amount due from director

19,663

Cash & bank balances

174,731

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

TOTAL CURRENT ASSETS

479,404

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

TOTAL ASSET

746,747

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

CURRENT LIABILITIES

Trade creditors

523,673

Other creditors & accruals

93,816

Hire purchase & lease creditors

30,358

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

TOTAL CURRENT LIABILITIES

647,847

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

NET CURRENT ASSETS/(LIABILITIES)

(168,443)

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

TOTAL NET ASSETS

98,900

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

SHARE CAPITAL

Ordinary share capital

2

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

TOTAL SHARE CAPITAL

2

Retained profit/(loss) carried forward

(75,894)

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

TOTAL RESERVES

(75,894)

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

SHAREHOLDERS' FUNDS/EQUITY

(75,892)

Hire purchase creditors

174,792

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

TOTAL LONG TERM LIABILITIES

174,792

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

98,900

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

 

 

 

FINANCIAL RATIO

 

 

GLOBAL WORLDLINK SDN. BHD.

 

TYPES OF FUNDS

Cash

174,731

Net Liquid Funds

174,731

Net Liquid Assets

(168,443)

Net Current Assets/(Liabilities)

(168,443)

Net Tangible Assets

98,900

Net Monetary Assets

(343,235)

BALANCE SHEET ITEMS

Total Borrowings

205,150

Total Liabilities

822,639

Total Assets

746,747

Net Assets

98,900

Net Assets Backing

(75,892)

Shareholders' Funds

(75,892)

Total Share Capital

2

Total Reserves

(75,894)

LIQUIDITY (Times)

Cash Ratio

0.27

Liquid Ratio

0.74

Current Ratio

0.74

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

Debtors Ratio

26

Creditors Ratio

53

SOLVENCY RATIOS (Times)

Gearing Ratio

(2.70)

Liabilities Ratio

(10.84)

Times Interest Earned Ratio

(14.75)

Assets Backing Ratio

49,450.00

PERFORMANCE RATIO (%)

Operating Profit Margin

(1.93)

Net Profit Margin

(1.93)

Return On Net Assets

(71.87)

Return On Capital Employed

(54.99)

Return On Shareholders' Funds/Equity

100.00

Dividend Pay Out Ratio (Times)

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.01

UK Pound

1

Rs.101.99

Euro

1

Rs.81.25

 

INFORMATION DETAILS

 

Analysis Done by :

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.