MIRA INFORM REPORT

 

 

Report Date :

19.06.2014  

 

IDENTIFICATION DETAILS

 

Name :

WINBRIGHT (M) SDN. BHD.

 

 

Registered Office :

Lot 5193 to 5197, 6th Milestone, Jalan Mengkibol, 86000 Kluang, Johor,

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

11.06.1990

 

 

Com. Reg. No.:

199084-T

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of knitted fabrics

 

 

No. of Employees

200 [2014]

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

Litigation :

Clear

 

NOTES :

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

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Malaysia

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

 

 

 

Company name and address

 

 

REGISTRATION NO.

:

199084-T

COMPANY NAME

:

WINBRIGHT (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

11/06/1990

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LOT 5193 TO 5197, 6TH MILESTONE, JALAN MENGKIBOL, 86000 KLUANG, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 5193 TO 5197, 6TH MILESTONE, JALAN MENGKIBOL,, 86000 KLUANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-7738966

FAX.NO.

:

07-7743397

CONTACT PERSON

:

CHEN TZU WEI ( DIRECTOR )

INDUSTRY CODE

:

13132

PRINCIPAL ACTIVITY

:

MANUFACTURING OF KNITTED FABRICS

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARES 10,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 35,530,743 [2013]

NET WORTH

:

MYR 11,611,691 [2013]

STAFF STRENGTH

:

200 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

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

The Subject is principally engaged in the (as a / as an) manufacturing of knitted fabrics.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 10,000,000.00

MYR 10,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

WILLIAM CHEN TZU WEI +

NO.62,JALAN 1, TAMAN DELIMA, 86000 KLUANG, JOHOR, MALAYSIA.

711686080

2,600,000.00

26.00

MDM. CHIN SHEAU NING

116, NEYTHAL ROAD, 628603, SINGAPORE.

MFA698403

2,500,000.00

25.00

CHEN OLAMEAN @ CHEN ALFRED

19, GRANGE ROAD, #09-21, 239697, SINGAPORE.

S2180315D

1,249,833.00

12.50

CHRISTOPHER CHEN TZU KAUNG +

NO. 62, JALAN 1, TAMAN DELIMA, 86000 KLUANG, JOHOR, MALAYSIA.

422099792

808,419.00

8.08

JENNY CHEN TZUJANE

LOT 5193-5197, 6TH MILESTONE, JALAN MENGKIBOL, 86000 KLUANG, JOHOR, MALAYSIA.

421092990

808,416.00

8.08

CHEN LYNELLE TZU

LOT 5193-5197, 6TH MILESTONE, JALAN MENGKIBOL, 86000 KLUANG, JOHOR, MALAYSIA.

501154733

808,416.00

8.08

JOSEPH CHEN TZUYANG

LOT 5193-5197, 6TH MILESTONE, JALAN MENGKIBOL, 86000 KLUANG, JOHOR, MALAYSIA.

508531971

808,416.00

8.08

YEH MIN JENN

19, GRANGE ROAD, 09-21, GRANGE HEIGHTS, 239697, SINGAPORE.

S2195912Z

416,500.00

4.17

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

------

10,000,000.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

CHEN ERN CHENG

Address

:

116, NEYTHAL ROAD, 628603, SINGAPORE.

IC / PP No

:

BA514350

Nationality

:

CANADIAN

Date of Appointment

:

12/06/1990

 

DIRECTOR 2

 

Name Of Subject

:

XUE LIAN

Address

:

NO. 62, JALAN 1, TAMAN DELIMA, 86000 KLUANG, JOHOR, MALAYSIA.

IC / PP No

:

GI 974894 I

Date of Appointment

:

28/08/2007

 

DIRECTOR 3

 

Name Of Subject

:

CHRISTOPHER CHEN TZU KAUNG

Address

:

NO. 62, JALAN 1, TAMAN DELIMA, 86000 KLUANG, JOHOR, MALAYSIA.

IC / PP No

:

422099792

Nationality

:

MALAYSIAN

Date of Appointment

:

09/11/2009

 

DIRECTOR 4

 

Name Of Subject

:

WILLIAM CHEN TZU WEI

Address

:

NO.62,JALAN 1, TAMAN DELIMA, 86000 KLUANG, JOHOR, MALAYSIA.

IC / PP No

:

711686080

Date of Appointment

:

15/11/2005

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

CHEN TZU WEI

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

GOW & TAN

Auditor' Address

:

SUITE 1308, LEVEL 13, CITY PLAZA, JALAN TEBRAU, 80300 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LIANG SIEW CHING

IC / PP No

:

6987538

New IC No

:

630208-01-5380

Address

:

4-C, JALAN ISMAIL, 80100 JOHOR BAHRU, JOHOR, 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

11/02/1991

N/A

BANK BUMIPUTRA M BHD

MYR 5,300,000.00

Satisfied

2

11/02/1991

N/A

BANK BUMIPUTRA M BHD

MYR 5,300,000.00

Satisfied

3

06/06/1993

DEBENTURE

MALAYAN BANKING BHD

MYR 5,400,000.00

Unsatisfied

4

06/06/1993

DEBENTURE

MALAYAN BANKING BHD

MYR 4,300,000.00

Unsatisfied

5

06/06/1993

CHARGE

MALAYAN BANKING BHD

MYR 5,400,000.00

Unsatisfied

6

06/06/1993

CHARGE

MALAYAN BANKING BHD

MYR 4,300,000.00

Unsatisfied

7

27/12/1994

CHARGE

MALAYAN BANKING BERHAD

MYR 3,000,000.00

Unsatisfied

8

27/12/1994

4TH DEBENTURE

MALAYAN BANKING BERHAD

MYR 3,000,000.00

Unsatisfied

9

04/04/1996

4TH DEBENTURE

MALAYAN BANKING BERHAD

MYR 3,000,000.00

Unsatisfied

10

04/04/1996

4TH CHARGE

MALAYAN BANKING BERHAD

MYR 3,000,000.00

Unsatisfied

11

06/02/2013

MEMORANDUM OF DEPOSIT & LETTER OF SET-OFF

MALAYAN BANKING BHD

-

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

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

DYING OF YARN AND FABRIC

Competitor(s)

:

PENFABRIC SDN BHD
RAMATEX TEXTILES INDUSTRIAL SDN BHD

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

200

200

200

161

159

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of knitted fabrics.

The Subject's main business in textiles and garments.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

07-7738966

Match

:

N/A

Address Provided by Client

:

LOT 5193 TO 5197, 6TH MILES, JALAN MENGKIBOL,,86000,KLUANG,JOHOR.

Current Address

:

LOT 5193 TO 5197, 6TH MILESTONE, JALAN MENGKIBOL,, 86000 KLUANG, JOHOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


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



FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2013

]

Return on Shareholder Funds

:

Unfavourable

[

9.83%

]

Return on Net Assets

:

Acceptable

[

11.00%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Liquidity

Current Ratio

:

Acceptable

[

1.24 Times

]

The Subject has an adequate liquidity position with its current liabilities well covered by its current assets. With its net current assets, the Subject should be able to repay its short term obligations.

Solvency

Liability Ratio

:

Unfavourable

[

1.33 Times

]

The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

Overall Assessment :

The Subject's turnover showed a volatile trend but its losses were lower when compared to the previous corresponding period. This could suggest that the Subject was more efficient in its operating cost control and was more competitive. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : FAIR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-




 

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

* Estimate / Preliminary

** Forecast



INDUSTRY ANALYSIS

 

MSIC CODE

13132 : Dyeing, bleaching, printing and finishing of yarns and fabrics

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 1990, the Subject is a Private Limited company, focusing on manufacturing of knitted fabrics. With over 2 decades of experience in the business, the Subject has fairly rich experiences in the business and has achieved a certain market share. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 200 staff in its operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 11,611,691, the Subject should be able to maintain its business in the near terms.

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 normally.

 




 

PROFIT AND LOSS ACCOUNT

 

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

WINBRIGHT (M) SDN. BHD.

 

Financial Year End

2013-06-30

2012-06-30

2011-06-30

2010-06-30

2009-06-30

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

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

35,530,743

35,385,202

40,148,504

32,223,011

29,220,471

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

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

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

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

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

Total Turnover

35,530,743

35,385,202

40,148,504

32,223,011

29,220,471

Costs of Goods Sold

-

(33,265,946)

(38,571,939)

(30,910,633)

(26,913,603)

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

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

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

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

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

Gross Profit

-

2,119,256

1,576,565

1,312,378

2,306,868

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

1,330,744

(2,010,739)

814,519

(186,532)

159,663

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,330,744

(2,010,739)

814,519

(186,532)

159,663

Taxation

(189,000)

(94,000)

(272,000)

(38,025)

(259,495)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

1,141,744

(2,104,739)

542,519

(224,557)

(99,832)

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

469,947

2,574,686

2,032,167

2,256,724

2,356,556

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

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

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

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

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

As restated

469,947

2,574,686

2,032,167

2,256,724

2,356,556

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,611,691

469,947

2,574,686

2,032,167

2,256,724

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,611,691

469,947

2,574,686

2,032,167

2,256,724

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

-

-

-

195

19,167

Hire purchase

-

13,729

17,841

12,191

14,555

Term loan / Borrowing

-

7,851

13,560

16,658

1,750

Trust receipts

-

20,436

21,582

15,750

90,046

Others

-

14

-

-

2

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

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

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

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

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

-

42,030

52,983

44,794

125,520

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

WINBRIGHT (M) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

8,548,245

8,562,113

9,324,872

9,976,079

8,769,537

Deferred assets

-

-

-

166,000

204,000

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

-

166,000

204,000

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

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

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

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

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

TOTAL LONG TERM ASSETS

8,548,245

8,562,113

9,324,872

10,142,079

8,973,537

Stocks

-

5,354,214

5,460,380

6,256,038

4,789,924

Trade debtors

-

11,179,298

10,703,826

17,906,069

16,289,425

Other debtors, deposits & prepayments

-

84,039

52,966

83,965

100,406

Cash & bank balances

-

1,322,424

209,056

733,747

444,351

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

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

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

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

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

TOTAL CURRENT ASSETS

18,521,036

17,939,975

16,426,228

24,979,819

21,624,106

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

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

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

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

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

TOTAL ASSET

27,069,281

26,502,088

25,751,100

35,121,898

30,597,643

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

-

5,356,758

2,637,898

9,690,996

9,628,762

Other creditors & accruals

-

2,056,453

2,304,075

4,388,356

4,763,539

Hire purchase & lease creditors

-

57,003

65,866

41,630

39,265

Bank overdraft

-

-

-

-

181,532

Bill & acceptances payable

-

3,314,384

2,583,206

3,899,661

1,457,314

Amounts owing to director

-

3,909,745

3,953,240

3,419,590

447,506

Other liabilities

-

975,744

1,307,240

1,478,670

1,610,543

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

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

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

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

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

TOTAL CURRENT LIABILITIES

14,970,720

15,670,087

12,851,525

22,918,903

18,128,461

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

3,550,316

2,269,888

3,574,703

2,060,916

3,495,645

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

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

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

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

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

TOTAL NET ASSETS

12,098,561

10,832,001

12,899,575

12,202,995

12,469,182

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

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

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

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

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

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

TOTAL SHARE CAPITAL

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

Retained profit/(loss) carried forward

1,611,691

469,947

2,574,686

2,032,167

2,256,724

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

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

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

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

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

TOTAL RESERVES

1,611,691

469,947

2,574,686

2,032,167

2,256,724

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

11,611,691

10,469,947

12,574,686

12,032,167

12,256,724

Hire purchase creditors

-

162,054

218,889

170,828

212,458

Deferred taxation

-

200,000

106,000

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

486,870

362,054

324,889

170,828

212,458

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

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

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

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

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

12,098,561

10,832,001

12,899,575

12,202,995

12,469,182

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

WINBRIGHT (M) SDN. BHD.

 

TYPES OF FUNDS

Cash

-

1,322,424

209,056

733,747

444,351

Net Liquid Funds

-

(1,991,960)

(2,374,150)

(3,165,914)

(1,194,495)

Net Liquid Assets

3,550,316

(3,084,326)

(1,885,677)

(4,195,122)

(1,294,279)

Net Current Assets/(Liabilities)

3,550,316

2,269,888

3,574,703

2,060,916

3,495,645

Net Tangible Assets

12,098,561

10,832,001

12,899,575

12,202,995

12,469,182

Net Monetary Assets

3,063,446

(3,446,380)

(2,210,566)

(4,365,950)

(1,506,737)

BALANCE SHEET ITEMS

Total Borrowings

-

3,533,441

2,867,961

4,112,119

1,890,569

Total Liabilities

15,457,590

16,032,141

13,176,414

23,089,731

18,340,919

Total Assets

27,069,281

26,502,088

25,751,100

35,121,898

30,597,643

Net Assets

12,098,561

10,832,001

12,899,575

12,202,995

12,469,182

Net Assets Backing

11,611,691

10,469,947

12,574,686

12,032,167

12,256,724

Shareholders' Funds

11,611,691

10,469,947

12,574,686

12,032,167

12,256,724

Total Share Capital

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

Total Reserves

1,611,691

469,947

2,574,686

2,032,167

2,256,724

LIQUIDITY (Times)

Cash Ratio

-

0.08

0.02

0.03

0.02

Liquid Ratio

-

0.80

0.85

0.82

0.93

Current Ratio

1.24

1.14

1.28

1.09

1.19

WORKING CAPITAL CONTROL (Days)

Stock Ratio

-

55

50

71

60

Debtors Ratio

-

115

97

203

203

Creditors Ratio

-

59

25

114

131

SOLVENCY RATIOS (Times)

Gearing Ratio

-

0.34

0.23

0.34

0.15

Liabilities Ratio

1.33

1.53

1.05

1.92

1.50

Times Interest Earned Ratio

-

(46.84)

16.37

(3.16)

2.27

Assets Backing Ratio

1.21

1.08

1.29

1.22

1.25

PERFORMANCE RATIO (%)

Operating Profit Margin

3.75

(5.68)

2.03

(0.58)

0.55

Net Profit Margin

3.21

(5.95)

1.35

(0.70)

(0.34)

Return On Net Assets

11.00

(18.17)

6.73

(1.16)

2.29

Return On Capital Employed

11.00

(18.08)

6.69

(1.16)

2.25

Return On Shareholders' Funds/Equity

9.83

(20.10)

4.31

(1.87)

(0.81)

Dividend Pay Out Ratio (Times)

-

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

-

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.12

UK Pound

1

Rs.102.00

Euro

1

Rs.81.43

 

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.