MIRA INFORM REPORT

 

 

Report Date :

12.03.2014

 

IDENTIFICATION DETAILS

 

Name :

DELL GLOBAL BUSINESS CENTER SDN. BHD.

 

 

Registered Office :

Suite 21.01, The Gardens South Tower, Mid Valley City, Lingkaran Syed Putra, Level 21, 59200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.01.2013

 

 

Date of Incorporation :

28.07.2006

 

 

Com. Reg. No.:

742481-H

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the global business support center.

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 


 

Status :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

Clear

 

NOTES :

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

 

 

ECGC Country Risk Classification List – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 35% of government revenue in 2011. Bank Negera 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 has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

 

 

 


 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

742481-H

COMPANY NAME

:

DELL GLOBAL BUSINESS CENTER SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

28/07/2006

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 21.01, THE GARDENS SOUTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA, LEVEL 21, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

PLOT P27, BAYAN LEPAS INDUSTRIAL ZONE, PHASE IV, 11900 BAYAN LEPAS, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-6334888

FAX.NO.

:

04-6330505

WEB SITE

:

WWW.DELL.COM.MY

CONTACT PERSON

:

CHAN SOON TAT ( DIRECTOR )

INDUSTRY CODE

:

62091

PRINCIPAL ACTIVITY

:

GLOBAL BUSINESS SUPPORT CENTER

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 549,816,058 [2013]

NET WORTH

:

MYR 130,583,809 [2013]

STAFF STRENGTH

:

N/A

BANKER (S)

:

CIMB BANK BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

GOOD

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) global business support center.

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

 

The immediate holding company of the Subject is DELL GLOBAL B. V, a company incorporated in NETHERLANDS.

The ultimate holding company of the Subject is DELL INC.,, a company incorporated in UNITED STATES.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

31/07/2012

MYR 500,000.00

MYR 500,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

DELL GLOBAL B. V

TRANSFORMATORWEG 38-72, 1014 AK AMSTERDAM, NETHERLANDS.

NL33238739

500,000.00

100.00

 

 

 

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

------

 

 

 

500,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

JANET BAWCOM WRIGHT

Address

:

1314, SHANNON OAKS TRAIL, AUSTIN, TEXAS , 78746, UNITED STATES.

IC / PP No

:

455939644

 

 

 

 

 

 

 

 

 

Nationality

:

AMERICAN

Date of Appointment

:

30/04/2008

 

 

 

 

 

 

 

 

 

 

 

 

 


DIRECTOR 2

 

Name Of Subject

:

MR. CHAN SOON TAT

Address

:

552-9-2, SKYHOME, JALAN TANJUNG BUNGAH, 11200 TANJONG TOKONG, PULAU PINANG, MALAYSIA.

IC / PP No

:

5112426

New IC No

:

570220-07-5819

Date of Birth

:

20/02/1957

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

16/03/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. GOH THENG LAI

Address

:

2, LINTANG SUNGAI ARA 1, SUNGAI ARA, 11900 BAYAN LEPAS, PULAU PINANG, MALAYSIA.

IC / PP No

:

8213626

New IC No

:

560226-02-5493

Date of Birth

:

26/02/1956

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

20/08/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. LAWRENCE WONG YOW KHAN

Address

:

163B-031C, PERSIARAN GURNEY, 10250 GEORGETOWN, PULAU PINANG, MALAYSIA.

IC / PP No

:

A0899495

New IC No

:

680423-10-5093

Date of Birth

:

23/04/1968

 

 

 

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

30/07/2013

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHAN SOON TAT

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

SHANKAR

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

BANGUNAN KWSP, JALAN SULTAN AHMAD SHAH, P.O.BOX 856, 16TH FLOOR, 10810 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. LIM POH SENG

 

IC / PP No

:

A1846175

 

New IC No

:

710228-10-5519

 

Address

:

22, JALAN SS 3/22, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

 

 

 

 

2)

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 does not have trade supplier as it is a service provider company.


The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

X

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

EUROPE

ASIA

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

INFORMATION TECHNOLOGY INDUSTRY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Services

:

VARIOUS OUTSOURCED SERVICES GLOBALLY INCLUDING INFORMATION TECHNOLOGY, CUSTOMER CONTRACT CENTER SUPPORT, GLOBAL FINANCIAL SERVICES AND OTHER RELATED SERVICES

 

 

 

 

Ownership of premises

:

LEASED/RENTED

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

 

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

 

 

 

 

 

COMPANY

3678

3827

3388

3310

 

 

 

 

 

 

Branch

:

YES

 

Other Information:


The Subject is principally engaged in the (as a / as an) global business support center.


The Subject acts a Global Business Support Centre to provide various outsourced services to other Dell entitities globally.

The services includes Information Technology, customer contact centre support, global financial services and other related services.


We were informed that the Subject is the Headquarters and it has another branch based in Cyberjaya.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

04-6334888

Match

:

N/A

 

 

 

Address Provided by Client

:

PLOT P27, BAYAN LEPAS PENANG

Current Address

:

PLOT P27, BAYAN LEPAS INDUSTRIAL ZONE, PHASE IV, 11900 BAYAN LEPAS, PULAU PINANG, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 6th March 2014 we contacted one of the staff from the Subject and she provided some information.


The Subject refused to disclose its number of employees.


The address provided is incomplete.

 

 

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2009 - 2013

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2013

]

 

Return on Shareholder Funds

:

Acceptable

[

21.91%

]

 

Return on Net Assets

:

Acceptable

[

16.64%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Nil

[

0 Days

]

 

Debtor Ratio

:

Favourable

[

0 Days

]

 

Creditors Ratio

:

Favourable

[

0 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

:

Favourable

[

1.97 Times

]

 

Current Ratio

:

Unfavourable

[

1.97 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

[

41.16 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 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 had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. 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 was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

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

62091 : Information Communication Technology (ICT) system security

 

 

INDUSTRY :

INFORMATION TECHNOLOGY

 

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2006, the Subject is a Private Limited company, focusing on global business support center. Having been in business for 8 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment


Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject has a good management capability. Its capable management team has enabled the Subject to keep its business on going. Hence, the future prospect of the Subject is bright.


The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 130,583,809, 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.


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


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


In view of the above favourable condition, we recommend credit be proceeded to the Subject with favourable term.

 



PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2013-01-31

2012-01-31

2011-01-31

2010-01-31

2009-01-31

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

549,816,058

607,097,859

570,531,011

522,777,377

108,900,210

 

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

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

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

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

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

Total Turnover

549,816,058

607,097,859

570,531,011

522,777,377

108,900,210

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

28,711,696

30,897,666

31,272,863

31,225,386

7,348,927

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

28,711,696

30,897,666

31,272,863

31,225,386

7,348,927

Taxation

(103,499)

(111,563)

(57,225)

(80,787)

(65,147)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

28,608,197

30,786,103

31,215,638

31,144,599

7,283,780

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

101,475,612

70,689,509

39,473,871

8,329,272

1,045,492

 

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

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

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

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

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

As restated

101,475,612

70,689,509

39,473,871

8,329,272

1,045,492

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

130,083,809

101,475,612

70,689,509

39,473,871

8,329,272

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

130,083,809

101,475,612

70,689,509

39,473,871

8,329,272

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

714,876

578,921

-

-

-

 

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

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

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

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

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

 

714,876

578,921

-

-

-

 

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

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

 

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

45,755,004

53,224,802

84,626,872

116,428,999

128,283,238

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

45,755,004

53,224,802

84,626,872

116,428,999

128,283,238

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Trade debtors

181,657

50,052

31,808

-

-

Other debtors, deposits & prepayments

46,195,592

31,375,824

11,416,572

6,269,728

7,626,679

Short term deposits

-

11,898,442

-

29,578,135

-

Deposits with financial institutions

-

-

10,825,605

-

-

Amount due from holding company

76,752,643

162,777,692

-

-

-

Amount due from related companies

18,109,679

16,381,561

12,077,866

11,896,404

118,891

Cash & bank balances

125,482,274

19,765,923

23,531,324

8,201,902

22,883,746

Others

-

50,870

116,952,646

56,450,936

43,912,886

 

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

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

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

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

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

TOTAL CURRENT ASSETS

266,721,845

242,300,364

174,835,821

112,397,105

74,542,202

 

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

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

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

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

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

TOTAL ASSET

312,476,849

295,525,166

259,462,693

228,826,104

202,825,440

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Other creditors & accruals

58,720,068

72,546,767

78,265,891

66,295,993

54,023,209

Amounts owing to holding company

75,062,653

12,000,933

-

-

-

Amounts owing to related companies

1,855,320

1,901,854

3,015,793

3,578,150

67,572,959

Provision for taxation

5,499

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

135,643,540

86,449,554

81,281,684

69,874,143

121,596,168

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

131,078,305

155,850,810

93,554,137

42,522,962

(47,053,966)

 

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

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

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

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

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

TOTAL NET ASSETS

176,833,309

209,075,612

178,181,009

158,951,961

81,229,272

 

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

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

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

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

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

 

 

 

 

 

 

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

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

130,083,809

101,475,612

70,689,509

39,473,871

8,329,272

 

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

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

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

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

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

TOTAL RESERVES

130,083,809

101,475,612

70,689,509

39,473,871

8,329,272

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

130,583,809

101,975,612

71,189,509

39,973,871

8,829,272

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Others

46,249,500

107,100,000

106,991,500

118,978,090

72,400,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

46,249,500

107,100,000

106,991,500

118,978,090

72,400,000

 

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

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

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

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

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

 

176,833,309

209,075,612

178,181,009

158,951,961

81,229,272

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

 

 

 

Cash

125,482,274

31,664,365

23,531,324

37,780,037

22,883,746

Net Liquid Funds

125,482,274

31,664,365

23,531,324

37,780,037

22,883,746

Net Liquid Assets

131,078,305

155,850,810

93,554,137

42,522,962

(47,053,966)

Net Current Assets/(Liabilities)

131,078,305

155,850,810

93,554,137

42,522,962

(47,053,966)

Net Tangible Assets

176,833,309

209,075,612

178,181,009

158,951,961

81,229,272

Net Monetary Assets

84,828,805

48,750,810

(13,437,363)

(76,455,128)

(119,453,966)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

0

0

0

Total Liabilities

181,893,040

193,549,554

188,273,184

188,852,233

193,996,168

Total Assets

312,476,849

295,525,166

259,462,693

228,826,104

202,825,440

Net Assets

176,833,309

209,075,612

178,181,009

158,951,961

81,229,272

Net Assets Backing

130,583,809

101,975,612

71,189,509

39,973,871

8,829,272

Shareholders' Funds

130,583,809

101,975,612

71,189,509

39,973,871

8,829,272

Total Share Capital

500,000

500,000

500,000

500,000

500,000

Total Reserves

130,083,809

101,475,612

70,689,509

39,473,871

8,329,272

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.93

0.37

0.29

0.54

0.19

Liquid Ratio

1.97

2.80

2.15

1.61

0.61

Current Ratio

1.97

2.80

2.15

1.61

0.61

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

0

0

0

0

0

Debtors Ratio

0

0

0

0

0

Creditors Ratio

0

0

0

0

0

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

0.00

Liabilities Ratio

1.39

1.90

2.64

4.72

21.97

Times Interest Earned Ratio

41.16

54.37

0.00

0.00

0.00

Assets Backing Ratio

353.67

418.15

356.36

317.90

162.46

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

5.22

5.09

5.48

5.97

6.75

Net Profit Margin

5.20

5.07

5.47

5.96

6.69

Return On Net Assets

16.64

15.06

17.55

19.64

9.05

Return On Capital Employed

16.64

15.06

17.55

19.64

9.05

Return On Shareholders' Funds/Equity

21.91

30.19

43.85

77.91

82.50

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0




 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.70

UK Pound

1

Rs.100.97

Euro

1

Rs.84.16

 

 

INFORMATION DETAILS

 

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.