MIRA INFORM REPORT

 

 

Report Date :

03.05.2014

 

IDENTIFICATION DETAILS

 

Name :

DHEDHI PAK SDN. BHD.

 

 

Formerly Known As :

ORION FACTOR SDN BHD (23/05/2011)

 

 

Registered Office :

1609, Semua House, 6, Jalan Bunus, Level 16, 50100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.05.2012

 

 

Date of Incorporation :

06.06.2007

 

 

Com. Reg. No.:

776158-M

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Trading of textiles

 

 

No. of Employees :

5 [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 :

No complaints

Litigation :

Clear

 

NOTES :

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

 

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 


 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

 

Source : CIA

 

 

 

 


EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

776158-M

COMPANY NAME

:

DHEDHI PAK SDN. BHD.

FORMER NAME

:

ORION FACTOR SDN BHD (23/05/2011)

INCORPORATION DATE

:

06/06/2007

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

1609, SEMUA HOUSE, 6, JALAN BUNUS, LEVEL 16, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LG 44 BASEMENT FLOOR, WILAYAH COMPLEX, JALAN DANG WANGI, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

N/A

FAX.NO.

:

N/A

HP.NO.

:

0162477431

CONTACT PERSON

:

MUHAMMAD FAROOQ DHEDHI ( DIRECTOR )

INDUSTRY CODE

:

47510

PRINCIPAL ACTIVITY

:

TRADING OF TEXTILES

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,950,000.00 DIVIDED INTO
ORDINARY SHARES 1,950,004 CASH AND 999,996 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 992,702 [2012]

NET WORTH

:

MYR 1,012,152 [2012]

STAFF STRENGTH

:

5 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

HIGH

CURRENCY EXPOSURE

:

LOW

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 


HISTORY / BACKGROUND

 

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

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

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

18/04/2014

MYR 5,000,000.00

MYR 2,950,000.00

01/07/2013

MYR 5,000,000.00

MYR 2,100,000.00

15/02/2013

MYR 1,000,000.00

MYR 1,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MS. NURMAINA BINTI SHAMSUDIN +

14, JALAN AU5C/7C, LEMBAH KERAMAT, ULU KELANG, 54200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

541224-05-5484

600,000.00

20.34

MUHAMMAD SHAKEEL MARFANI +

16B3, PELANGI INDAH CONDOMINIUM, BATU 4 1/2 JALAN IPOH, 51000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

AB0981392

500,000.00

16.95

IRFAN MUHAMMAD +

16B3, PELANGI INDAH CONDOMINIUM, BATU 4 1/2 JALAN IPOH, 51000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

CB1989633

500,000.00

16.95

MUHAMMAD FAROOQ DHEDHI +

16B3, PELANGI INDAH CONDOMINIUM, BATU 4 1/2, JALAN IPOH, 51000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

AA7171454

500,000.00

16.95

NAVEED

A-13-6, PLAZA CITY ONE, JALAN MUNSHI ABDULLAH, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

AM 9679062

399,999.00

13.56

MR. MOHAMED NAS BIN MOHAMED ZAH

AKADEMI AUDIT NEGARA, VILLA JATI 2, PERSIARAN TIMUR 3, BANDAR ENSTEK, 71760 BANDAR ENSTEK, NEGERI SEMBILAN, MALAYSIA.

570317-02-5703

299,999.00

10.17

NAS

A-13-6 PLAZA CITY ONE, JALAN MUNSHI ABDULLAH, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

AD 9828451

149,999.00

5.08

HASEEB-UL-MAQSOOD AWAN

21, AIR BERSIH 2, AIR PANAS, SETAPAK, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

AC1604701

1.00

0.00

HUSSAIN BAKHSH AWAN S/O NOOR AHMED AWAN

21, AIR BERSIH 2, AIR PANAS, SETAPAK, 53300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

KD266909

1.00

0.00

MS. SITI RABI'AH BINTI AB MAJID

182, KAMPUNG SEMARAK, JALAN SEMARAK, 54100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

840104-14-5274

1.00

0.00

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

------

2,950,000.00

100.00

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

=====

+ Also Director



DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MUHAMMAD SHAKEEL MARFANI

Address

:

16B3, PELANGI INDAH CONDOMINIUM, BATU 4 1/2 JALAN IPOH, 51000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

AB0981392

Date of Appointment

:

19/02/2013

 

DIRECTOR 2

 

Name Of Subject

:

MUHAMMAD FAROOQ DHEDHI

Address

:

16B3, PELANGI INDAH CONDOMINIUM, BATU 4 1/2, JALAN IPOH, 51000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

AA7171454

Date of Appointment

:

06/06/2007

 

DIRECTOR 3

 

Name Of Subject

:

IRFAN MUHAMMAD

Address

:

16B3, PELANGI INDAH CONDOMINIUM, BATU 4 1/2 JALAN IPOH, 51000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

CB1989633

Date of Appointment

:

13/01/2014

DIRECTOR 4

 

Name Of Subject

:

MS. NURMAINA BINTI SHAMSUDIN

Address

:

14, JALAN AU5C/7C, LEMBAH KERAMAT, ULU KELANG, 54200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

541224-05-5484

Date of Birth

:

24/12/1954

Nationality

:

MALAYSIAN

Date of Appointment

:

21/04/2011



MANAGEMENT

 

 

1)

Name of Subject

:

MUHAMMAD FAROOQ DHEDHI

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

WSJ & CO

Auditor' Address

:

6-7-3, BLOCK 6, QUEEN'S AVENUE, JALAN BAYAM, LEVEL 7, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. SHARON ANN FERNANDEZ

New IC No

:

670317-10-6050

Address

:

27, JALAN AUR KS 4, TAMAN AUR, 42000 PELABUHAN 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

:

YES

Percentage

:

100%

Overseas

:

NO

Percentage

:

0%


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

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 


CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

N/A

Payment Mode

:

CHEQUES

 

 

OPERATIONS

 

Goods Traded

:

TEXTILES

 

Total Number of Employees:

YEAR

2014


GROUP

N/A

COMPANY

5

 

Branch

:

NO

Other Information:


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


The Subject sells bath towels, textiles and others.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0060162477431

Current Telephone Number

:

0162477431

Match

:

YES

Address Provided by Client

:

LG 56/58, KOLAMPURE

Current Address

:

LG 44 BASEMENT FLOOR, WILAYAH COMPLEX, JALAN DANG WANGI, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


The Subject can only be contacted via the Director Mr Farooq mobile at 0162477431.


He refused to disclose the Subject's fax number.


He is not aware of the address provided as it is incomplete.



FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2008 - 2012

]

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

Return on Shareholder Funds

:

Unfavourable

[

1.00%

]

Return on Net Assets

:

Unfavourable

[

1.25%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Liquidity

Current Ratio

:

Favourable

[

36.04 Times

]

The Subject was in good 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

:

Favourable

[

0.03 Times

]

A low liabilities ratio has minimised the Subject's financial risk.

Overall Assessment :

Generally, the Subject's performance has improved with higher turnover and profit. 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 has a low liabilities ratio. It's liabilities were low and was not vulnerable to the financial risk.

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

# Based On Manufacturing Production Index



INDUSTRY ANALYSIS

 

MSIC CODE

47510 : Retail sale of textiles in specialized stores

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 2007, the Subject is a Private Limited company, focusing on trading of textiles. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.


Over the years, the Subject should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. Being a small company, the Subject's business operation is supported by 5 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.


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 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. A low liabilities ratio has minimised the Subject's financial risk. Given a positive net worth standing at MYR 1,012,152, the Subject should be able to maintain its business in the near terms


Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth . We noted that the Subject's supplies are solely sourced from local market. Being highly dependent on a limited number of suppliers could lead to delays, lost of revenue and increased costs if such resources become unavailable or shortage


Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors


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)

 

Financial Year End

2012-05-31

2011-05-31

2010-05-31

2009-05-31

2008-05-31

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

SUMMARY

SUMMARY

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

992,702

902,456

747,305

-

-

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

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

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

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

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

Total Turnover

992,702

902,456

747,305

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

12,605

7,454

3,209

(2,692)

(3,770)

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

12,605

7,454

3,209

(2,692)

(3,770)

Taxation

(2,521)

(1,491)

(642)

-

-

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

10,084

5,963

2,567

(2,692)

(3,770)

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

2,068

(3,895)

(6,462)

(3,770)

-

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

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

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

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

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

As restated

2,068

(3,895)

(6,462)

(3,770)

-

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

12,152

2,068

(3,895)

(6,462)

(3,770)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

12,152

2,068

(3,895)

(6,462)

(3,770)

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

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

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

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

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

BALANCE SHEET

 

 

 

TOTAL CURRENT ASSETS

1,041,040

1,063,087

1,039,085

996,930

4

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

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

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

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

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

TOTAL ASSET

1,041,040

1,063,087

1,039,085

996,930

4

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

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

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

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

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

TOTAL CURRENT LIABILITIES

28,888

61,019

42,980

3,392

3,770

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,012,152

1,002,068

996,105

993,538

(3,766)

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

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

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

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

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

TOTAL NET ASSETS

1,012,152

1,002,068

996,105

993,538

(3,766)

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

1,000,000

1,000,000

1,000,000

1,000,000

4

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

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

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

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

1,000,000

1,000,000

4

Retained profit/(loss) carried forward

12,152

2,068

(3,895)

(6,462)

(3,770)

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

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

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

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

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

TOTAL RESERVES

12,152

2,068

(3,895)

(6,462)

(3,770)

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,012,152

1,002,068

996,105

993,538

(3,766)

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

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

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

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

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

1,012,152

1,002,068

996,105

993,538

(3,766)

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

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

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

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

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

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Net Liquid Assets

1,012,152

1,002,068

996,105

993,538

(3,766)

Net Current Assets/(Liabilities)

1,012,152

1,002,068

996,105

993,538

(3,766)

Net Tangible Assets

1,012,152

1,002,068

996,105

993,538

(3,766)

Net Monetary Assets

1,012,152

1,002,068

996,105

993,538

(3,766)

BALANCE SHEET ITEMS

Total Liabilities

28,888

61,019

42,980

3,392

3,770

Total Assets

1,041,040

1,063,087

1,039,085

996,930

4

Net Assets

1,012,152

1,002,068

996,105

993,538

(3,766)

Net Assets Backing

1,012,152

1,002,068

996,105

993,538

(3,766)

Shareholders' Funds

1,012,152

1,002,068

996,105

993,538

(3,766)

Total Share Capital

1,000,000

1,000,000

1,000,000

1,000,000

4

Total Reserves

12,152

2,068

(3,895)

(6,462)

(3,770)

LIQUIDITY (Times)

Current Ratio

36.04

17.42

24.18

293.91

0.00

SOLVENCY RATIOS (Times)

Liabilities Ratio

0.03

0.06

0.04

0.00

(1.00)

Assets Backing Ratio

1.01

1.00

1.00

0.99

(941.50)

PERFORMANCE RATIO (%)

Operating Profit Margin

1.27

0.83

0.43

-

-

Net Profit Margin

1.02

0.66

0.34

-

-

Return On Net Assets

1.25

0.74

0.32

(0.27)

100.11

Return On Capital Employed

1.25

0.74

0.32

(0.27)

100.11

Return On Shareholders' Funds/Equity

1.00

0.60

0.26

(0.27)

100.11



FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.23

UK Pound

1

Rs.101.68

Euro

1

Rs.83.46

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.