MIRA INFORM REPORT

 

 

Report Date :

20.05.2014

 

IDENTIFICATION DETAILS

 

Name :

SM BIOMED SDN. BHD.

 

 

Registered Office :

Lot 90, Sungai Petani Industrial Estate, 08000 Sungai Petani, Kedah

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

18.05.1991

 

 

Com. Reg. No.:

217323-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturer and Trader of Pharmaceutical Raw Materials, Fine Chemicals and Industrial Laboratory Chemicals

 

 

No of Employees :

100

 

 

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 :

Exist

 

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

(30.09.2013)

Current Rating

(01.12.2013)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

D

 


 

MALAYSIA - ECONOMIC OVERVIEW

 

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

 

Source : CIA

 

 


 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

217323-M

COMPANY NAME

:

SM BIOMED SDN. BHD.

FORMER NAME

:

SM CHEMICALS SDN BHD (06/02/2004)

INCORPORATION DATE

:

18/05/1991

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

LOT 90, SUNGAI PETANI INDUSTRIAL ESTATE, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

BUSINESS ADDRESS

:

LOT 90, SUNGAI PETANI INDUSTRIAL ESTATE, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

TEL.NO.

:

04-4411801

FAX.NO.

:

04-4411341

WEB SITE

:

WWW.SMBIOMED.COM

CONTACT PERSON

:

SHARAT KUMAR KRISHNA NAIK ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

21001

PRINCIPAL ACTIVITY

:

MANUFACTURING AND TRADING OF PHARMACEUTICAL RAW MATERIALS, FINE CHEMICALS AND INDUSTRIAL LABORATORY CHEMICALS

AUTHORISED CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 30,400,000.00 DIVIDED INTO
ORDINARY SHARES 28,949,688 CASH AND 1,450,312 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 70,820,374 [2012]

NET WORTH

:

MYR 46,470,354 [2012]

 

 

 

STAFF STRENGTH

:

100 [2014]

BANKER (S)

:

CIMB BANK BHD
EON BANK BHD
EXPORT-IMPORT BANK OF MALAYSIA BHD

LITIGATION

:

TRACED

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

GOOD

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 and trading of pharmaceutical raw materials, fine chemicals and industrial laboratory chemicals.

 

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

 

The immediate and ultimate holding company of the Subject is SCOCROFT LIMITED, a company incorporated in VIRGIN ISLANDS, BRITISH.

 

Share Capital History

 

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 50,000,000.00

MYR 30,400,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

SCOCROFT LIMITED

34, NORTH QUAY DOUGLAS, ISLE OF MAN, IMI 4LB, MALAYSIA.

341977P

18,345,702.00

60.35

SAI GANESH PROPERTIES PVT. LTD.

561, SRINIDHI, WATER TANK ROAD, BSK III STAGE, KATRIGUPPE, BANGALORE, 560065, INDIA.

027309

5,624,000.00

18.50

GEETHA MOHAN SHEETY

12, HATKESH CO-OPERATIVE HOUSING SOC ROAD 5, JUHU, MUMBAI 400056, INDIA.

G2629799

2,435,401.00

8.01

VAISHALI SHETTY

GEETHA, 12, HATKESH CO-OPERATIVE HOUSING SOC ROAD 5, JUHU, MUMBAI 400 056, INDIA.

E0128700

1,047,440.00

3.45

NEUTRAL MASTER (M) SDN. BHD.

17, JALAN SRI SEMANTAN SATU, DAMANSARA HEIGHTS, 3RD FLOOR WISMA PRIMA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

219018D

813,479.00

2.68

MR. DIONG SING PENG

49, JALAN TR8/2, TROPICANA, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

691228-10-5569 A1448355

759,748.00

2.50

BAVAGUTHU RAGHURAM SHETTY +

BAVAGUTHU KAUP, UDUPI, KARNATAKA, FOREIGN, INDIA.

T526456

495,932.00

1.63

DR SHARAT KUMAR KRISHNA NAIK +

49, LORONG 5, TAMAN PETANI JAYA, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

9530671

348,810.00

1.15

MR. TAMIL MANI S/O M.KATHIRESAN CHETTIAR

90C, JALAN PERGAM, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

550220-02-6189 4842124

230,596.00

0.76

MS. HASIAH BINTI ABDULLAH

LOT 2007, TAMAN SARI, JALAN HOSPITAL, 15200 KOTA BHARU, KELANTAN, MALAYSIA.

490418-03-5214 2828171

92,974.00

0.31

ZULHISHAM BIN AHMAD

JALAN SATU, KAMPONG MELAYU MAJEDEE I, TANJONG PUTERI, 80500 JOHOR BAHRU, JOHOR, MALAYSIA.

590128-01-6195 5564309

86,156.00

0.28

RAMESHA SHEENA SUVARNA +
[ALTERNATE TO VYNA SHETTY]

7, LORONG 11, TAMAN PETANI JAYA, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

A9007674

47,381.00

0.16

DR KISHNAMOORTHY A/L APPALANAIDU +

76, TAMAN ZAABA, TAMAN TUN DR.ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

461129-08-5749 4014680

20,000.00

0.07

SUNIL KUMAR SHETTY

25, LORONG 23, TAMAN SUNGAI PETANI, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

K986037

52,381.00

0.17

 

 

 

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

------

 

 

 

30,400,000.00

100.00

 

 

 

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

=====

+ Also Director

 

The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Country

Company

(%)

As At

218620M

MALAYSIA

SM PHARMACEUTICALS SDN. BHD.

100.00

18/12/2013

 

 

 

 

 



DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

VYNA SHETTY

Address

:

GEETHA HOUSE 12, HATKESH CHS 5TH ROAD, JUHU, MUMBAI 56, MS, FOREIGN, INDIA.

IC / PP No

:

E7852374

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

09/08/2004

 

DIRECTOR 2

 

Name Of Subject

:

SUNIL KUMAR SHETTY

Address

:

25, LORONG 23, TAMAN SUNGAI PETANI, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

K986037

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

08/08/1996

Remark

:

ALTERNATE DIRECTOR TO BAVAGUTHU RAGHURAM SHETTY

 

DIRECTOR 3

 

Name Of Subject

:

DR KISHNAMOORTHY A/L APPALANAIDU

Address

:

76, TAMAN ZAABA, TAMAN TUN DR.ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

4014680

New IC No

:

461129-08-5749

Date of Birth

:

29/11/1946

 

 

 

Nationality

:

MALAYSIAN INDIAN

Date of Appointment

:

18/05/1991

 

 

 

Qualification

:

MBBS(SRI V'TESWARA)1974

 

DIRECTOR 4

 

Name Of Subject

:

RAMESHA SHEENA SUVARNA

Address

:

7, LORONG 11, TAMAN PETANI JAYA, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

A9007674

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

09/08/2004

Remark

:

ALTERNATE TO VYNA SHETTY

 

DIRECTOR 5

 

Name Of Subject

:

DR SHARAT KUMAR KRISHNA NAIK

Address

:

49, LORONG 5, TAMAN PETANI JAYA, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

9530671

 

 

 

 

 

 

 

 

 

Nationality

:

MALAWIAN

Date of Appointment

:

12/11/1991

 

DIRECTOR 6

 

Name Of Subject

:

BAVAGUTHU RAGHURAM SHETTY

Address

:

BAVAGUTHU KAUP, UDUPI, KARNATAKA, FOREIGN, INDIA.

IC / PP No

:

T526456

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

09/07/1995



MANAGEMENT

 

 

 

1)

Name of Subject

:

SHARAT KUMAR KRISHNA NAIK

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

RAMESHA SHEENA SUVARNA

 

Position

:

FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

LOQMAN

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

4)

Name of Subject

:

BIRADAR CHANDARASEGAR

 

Position

:

PRODUCTION MANAGER

 

 

 

 

AUDITOR

 

Auditor

:

GRANT THORNTON

Auditor' Address

:

51-8-A, MENARA BHL BANK, JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. P'NG CHIEW KEEM

 

IC / PP No

:

A2095490

 

New IC No

:

720225-07-5130

 

Address

:

BUKIT KECIL 2, TAMAN SRI NIBONG, 19 TINGKAT, 11900 BAYAN LEPAS, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MR. LEE PENG LOON

 

IC / PP No

:

4092111

 

New IC No

:

501110-07-5149

 

Address

:

53, JALAN DEVA PADA, 10400 GEORGETOWN, PULAU PINANG, MALAYSIA.

 

 

 

 

BANKING


Banking relations are maintained principally with :

 

1)

Name

:

CIMB BANK BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

EON BANK BHD

 

 

 

 

 

 

 

 

 

3)

Name

:

EXPORT-IMPORT BANK OF MALAYSIA BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

18/05/1992

N/A

BANK OF COMMERCE M BHD

MYR 4,700,000.00

Unsatisfied

2

05/03/1994

N/A

BANK OF COMMERCE M BERHAD

MYR 300,000.00

Unsatisfied

3

19/03/1995

N/A

BANK OF COMMERCE M BERHAD

MYR 5,000,000.00

Unsatisfied

4

19/03/1995

N/A

BANK OF COMMERCE M BERHAD

MYR 1,258,000.00

Unsatisfied

5

19/03/1995

N/A

BANK OF COMMERCE M BERHAD

MYR 1,258,000.00

Unsatisfied

6

06/10/1996

N/A

BANK OF COMMERCE M BERHAD

MYR 2,032,000.00

Unsatisfied

7

06/10/1996

N/A

BANK OF COMMERCE M BERHAD

MYR 2,032,000.00

Unsatisfied

8

06/10/1996

N/A

BANK OF COMMERCE M BERHAD

MYR 2,032,000.00

Unsatisfied

9

28/05/1997

N/A

EXPORTIMPORT BANK OF MALAYSIA BERHAD

MYR 2,600,000.00

Unsatisfied

10

18/09/1997

N/A

BANK OF COMMERCE M BERHAD

MYR 4,000,000.00

Unsatisfied

11

18/09/1997

N/A

BANK OF COMMERCE M BERHAD

MYR 4,000,000.00

Unsatisfied

12

27/01/1999

N/A

BANK OF COMMERCE M BERHAD

MYR 4,600,000.00

Unsatisfied

13

08/05/2008

N/A

EON BANK BHD

MYR 4,000,000.00

Unsatisfied

14

08/05/2008

N/A

EON BANK BHD

MYR 4,000,000.00

Unsatisfied

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank against the Subject whether the subject has been involved in any litigation.

 

LEGAL ACTION

 

 

 

Code No

:

99

Case No

:

18382

 

 

 

 

 

Year

:

2004

Place

:

KUALA LUMPUR

 

 

 

 

 

Court

:

SESSIONS COURT

 

 

 

 

 

 

 

 

Solicitor

:

KERK & CO

 

 

 

 

 

 

 

 

Solicitor Tel. No.

:

03-21626366

 

 

 

 

 

 

 

 

Plaintiff

:

KUALITI ALAM SDN BHD

 

 

 

Defendants

:

SM BIOMED SDN BHD (217323)

LOT 90, SG PETANI INDUSTRIAL ESTATE, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

 

 

 

 

Amount Claimed

:

27799

 

 

 

 

 

 

 

 

Nature of Claim

:

GDS SOLD & DELIVERED

 

 

 

 

 

 

 

 

Remark

:

LIST

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE:

Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed. The person wo has been sued has the same name as the subject. However, we are unable to determine whether the person sued is the one and the same person.

 

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

 

Import Countries

:

CHINA,INDIA,JAPAN,UNITED STATES



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

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

2%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

98%

Export Market

:

ASIA
MIDDLE EAST

EUROPE

Credit Term

:

30 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
LETTER OF CREDIT (LC)

TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

MANUFACTURING INDUSTRIES,MINISTRIES

No of Customer

:

30

CUSTOMER(S)

:

1) HOVID BHD

 

OPERATIONS

 

Products manufactured

:

PHARMACEUTICAL RAW MATERIALS, FINE CHEMICALS, INDUSTRIAL AND LABORATORY CHEMICALS

 

 

 

Competitor(s)

:

AIN MEDICARE SDN BHD

ALPHA BIOLOGICS SDN BHD

KOTRA PHARMA (M) SDN BHD

SM PHARMACEUTICALS SDN BHD

Y.S.P. INDUSTRIES (M) SDN BHD

 

 

 

 

 

 

 

 

Ownership of premises

:

OWNED

 

Production Capacity

:

BASED ON ITS CUSTOMERS' ORDERS AND REQUIREMENTS

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

2009

 

 

 


GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

100

85

85

85

180

295

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing and trading of pharmaceutical raw materials, fine chemicals and industrial laboratory chemicals.

The Subject's product portfolio is as follows:-

* MACROLIDES - Erythromycin - COS Available, Erythromycin Propionate, Erythromycin Estolate - COS Filed , Azithromycin

* Steroidal Products - Beclomethasone Dipropionate, Triamcinolone Acetonide, Clobetasol Propionate

* Cardiovascular - Atenolol, Metoprolol Tartrate, Furosemide

* Anti - Viral, Bacterial, Fungal - Acyclovir, Fluconazole, Stavudine

According to the Subject, it produces about 40 to 50 types of raw materials for the formulation of pharmaceuticals.

Besides that the Subject provides high quality customized products and services with shorter delivery time to its customers, particularly in Macroliderange of antibiotics.

The Subject is also packs its products in steel or plastic drums and containers.

We were informed that the Subject is equipped with the state-of-the-art technology coupled with highly automated production facilities, backed by an excellent team of well-trained technical staff ensures the smooth production process and the consistently high quality of the finished products.

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

04-4411801

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 90, SUNGAI PETANI INDUSTRIAL ESTATE SUNGAI PETANI KEDAH

Current Address

:

LOT 90, SUNGAI PETANI INDUSTRIAL ESTATE, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


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


The address provided is incomplete.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Unfavourable

[

1.58%

]

 

Return on Net Assets

:

Unfavourable

[

5.03%

]

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

44 Days

]

 

Debtor Ratio

:

Unfavourable

[

103 Days

]

 

Creditors Ratio

:

Favourable

[

28 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. 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

:

Acceptable

[

0.94 Times

]

 

Current Ratio

:

Unfavourable

[

1.29 Times

]

 

 

 

 

 

 

 

 

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

1.97 Times

]

 

Gearing Ratio

:

Favourable

[

0.40 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the Subject's performance has improved with higher turnover and profit. The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the Subject : LIMITED

 

 

 

 

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

 

21001 : Manufacture of medicinal active substances to be used for their pharmacological properties in the manufacture of medicaments

 

 

INDUSTRY :

MANUFACTURING

 

 

 

The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domestic oriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand.

 

Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first seven months of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domestic oriented industries continued to expand 8.6% while export-oriented industries grew 4.1%.

 

According to the Department of Statistics, the sales value of the Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion) to record RM52.4 billion as compared to RM48.8 billion reported in year 2012. Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2 billion) as compared with the preceding month. The sales value in December 2012 has been revised positive 7.5% year-on-year to record RM52.6 billion.

 

Output of rubber products increased 3.6% in the first seven month of 2012 mainly supported by continuous demand for rubber gloves. Output of rubber gloves grew 5.9% on account of the expansion in the global healthcare industry and wider usage of gloves in other sectors. Similarly, output of catheters, especially for use in medical appliances, also registered a strong growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in tandem with slowing external demand from the automotive industry, especially China.

 

Meanwhile, production of wood and wood products rebounded 4.6% largely supported by higher demand for wooden and cane furniture (33.5%). The positive performance was attributed to vibrant higher demand from major export destinations such as China and the United States (US) for Malaysian-made furniture. Demand from China accelerated further following the country’s rising income level and the implementation of zero import duty on Malaysian made-furniture. Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.

 

The output of chemicals and chemical products rose 9.9% in the first seven month of year 2012 on account of increasing demand for plastic products (11.8%) and basic chemicals (11.1%). External demand for plastic packaging materials surged during the early part of the year 2012, particularly from Japan and Thailand, as manufacturers resumed operations, which were interrupted by natural calamities and power outages. Chemical production are expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.

 

Tax and non-tax incentives provided by government encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by government in the manufacturing sector such assolar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1991, the Subject is a Private Limited company, focusing on manufacturing and trading of pharmaceutical raw materials, fine chemicals and industrial laboratory chemicals. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. 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 established an extensive clientele base in the market. Besides catering to the local market, the Subject has penetrated into other countries. With the contribution of both local and overseas customers, the Subject is likely to be exposed to lower commercial risk. Hence, we believe that the Subject has better business expansion opportunities in the future. The Subject has a total workforce of 100 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.


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 however managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 46,470,354, 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)

SM BIOMED SDN. BHD.

 

Financial Year End

2012-06-30

2011-06-30

2010-06-30

2009-06-30

2008-06-30

Months

12

12

12

12

12

Consolidated Account

GROUP

GROUP

GROUP

GROUP

GROUP

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

70,820,374

65,611,076

57,313,323

65,749,214

40,738,369

Other Income

245,619

172,047

38,342

472,322

354,693

 

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

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

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

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

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

Total Turnover

71,065,993

65,783,123

57,351,665

66,221,536

41,093,062

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

1,230,151

588,246

315,961

2,194,211

338,993

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,230,151

588,246

315,961

2,194,211

338,993

Taxation

(494,000)

(433,000)

(140,119)

(452,000)

-

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

736,151

155,246

175,842

1,742,211

338,993

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

15,334,203

15,178,957

15,003,115

13,260,904

12,921,911

 

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

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

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

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

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

As restated

15,334,203

15,178,957

15,003,115

13,260,904

12,921,911

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

16,070,354

15,334,203

15,178,957

15,003,115

13,260,904

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

16,070,354

15,334,203

15,178,957

15,003,115

13,260,904

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

122,568

117,195

-

-

-

Bankers' acceptance

185,766

397,480

-

-

-

Hire purchase

30,680

49,654

-

-

-

Term loan / Borrowing

291,821

291,330

-

-

-

Trust receipts

635,262

333,886

-

-

-

Others

-

-

1,350,094

1,514,426

1,648,155

 

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

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

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

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

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

 

1,266,097

1,189,545

1,350,094

1,514,426

1,648,155

 

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

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

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

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

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

 

 

 

 

BALANCE SHEET

 

 

SM BIOMED SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

33,477,091

36,030,713

33,642,462

33,326,232

11,971,108

 

 

 

 

 

 

INTANGIBLE ASSETS

 

 

 

 

 

Deferred/Expenditure carried forward

6,429,921

8,960,587

11,301,667

13,619,511

15,923,625

Goodwill on consolidation

2,686,170

2,930,368

3,174,566

3,418,764

3,662,962

 

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

9,116,091

11,890,955

14,476,233

17,038,275

19,586,587

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

42,593,182

47,921,668

48,118,695

50,364,507

31,557,695

 

 

 

 

 

 

Stocks

8,512,334

7,093,326

7,354,836

6,253,305

6,249,318

Trade debtors

20,066,146

17,377,991

13,915,307

13,285,174

18,825,441

Other debtors, deposits & prepayments

608,519

555,202

196,792

539,183

411,043

Short term deposits

-

-

-

30,000

102,000

Cash & bank balances

1,837,563

306,171

377,709

1,312,597

235,691

 

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

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

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

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

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

TOTAL CURRENT ASSETS

31,024,562

25,332,690

21,844,644

21,420,259

25,823,493

 

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

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

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

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

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

TOTAL ASSET

73,617,744

73,254,358

69,963,339

71,784,766

57,381,188

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

5,404,128

4,164,821

4,280,445

6,216,406

2,170,905

Other creditors & accruals

1,681,876

8,027,498

5,070,812

2,556,940

5,242,383

Hire purchase & lease creditors

234,098

308,257

288,698

483,855

489,467

Bank overdraft

2,979,977

1,476,710

1,291,353

1,685,277

1,711,748

Short term borrowings/Term loans

1,161,984

1,058,976

1,058,511

1,682,073

1,109,615

Other borrowings

9,749,000

7,105,840

782,943

2,454,905

21,780

Bill & acceptances payable

2,613,000

6,556,000

10,380,000

5,759,000

5,765,000

Amounts owing to holding company

13,266

13,266

13,266

13,266

886,566

Amounts owing to director

122,196

151,235

164,669

221,118

107,647

Provision for taxation

2,969

2,969

2,969

8,996

13,087

Other liabilities

-

-

2,394,421

4,420,872

6,426,336

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

23,962,494

28,865,572

25,728,087

25,502,708

23,944,534

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

7,062,068

(3,532,882)

(3,883,443)

(4,082,449)

1,878,959

 

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

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

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

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

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

TOTAL NET ASSETS

49,655,250

44,388,786

44,235,252

46,282,058

33,436,654

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

30,400,000

25,000,000

25,000,000

25,000,000

16,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

30,400,000

25,000,000

25,000,000

25,000,000

16,000,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

16,070,354

15,334,203

15,178,957

15,003,115

13,260,904

 

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

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

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

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

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

TOTAL RESERVES

16,070,354

15,334,203

15,178,957

15,003,115

13,260,904

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

46,470,354

40,334,203

40,178,957

40,003,115

29,260,904

 

 

 

 

 

 

Long term loans

1,466,560

2,713,313

2,943,201

5,237,003

3,551,721

Hire purchase creditors

199,336

316,270

521,094

589,940

624,029

Deferred taxation

1,519,000

1,025,000

592,000

452,000

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

3,184,896

4,054,583

4,056,295

6,278,943

4,175,750

 

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

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

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

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

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

 

49,655,250

44,388,786

44,235,252

46,282,058

33,436,654

 

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

SM BIOMED SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

1,837,563

306,171

377,709

1,342,597

337,691

Net Liquid Funds

(3,755,414)

(7,726,539)

(11,293,644)

(6,101,680)

(7,139,057)

Net Liquid Assets

(1,450,266)

(10,626,208)

(11,238,279)

(10,335,754)

(4,370,359)

Net Current Assets/(Liabilities)

7,062,068

(3,532,882)

(3,883,443)

(4,082,449)

1,878,959

Net Tangible Assets

40,539,159

32,497,831

29,759,019

29,243,783

13,850,067

Net Monetary Assets

(4,635,162)

(14,680,791)

(15,294,574)

(16,614,697)

(8,546,109)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

18,403,955

19,535,366

17,265,800

17,892,053

13,273,360

Total Liabilities

27,147,390

32,920,155

29,784,382

31,781,651

28,120,284

Total Assets

73,617,744

73,254,358

69,963,339

71,784,766

57,381,188

Net Assets

49,655,250

44,388,786

44,235,252

46,282,058

33,436,654

Net Assets Backing

46,470,354

40,334,203

40,178,957

40,003,115

29,260,904

Shareholders' Funds

46,470,354

40,334,203

40,178,957

40,003,115

29,260,904

Total Share Capital

30,400,000

25,000,000

25,000,000

25,000,000

16,000,000

Total Reserves

16,070,354

15,334,203

15,178,957

15,003,115

13,260,904

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.08

0.01

0.01

0.05

0.01

Liquid Ratio

0.94

0.63

0.56

0.59

0.82

Current Ratio

1.29

0.88

0.85

0.84

1.08

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

44

39

47

35

56

Debtors Ratio

103

97

89

74

169

Creditors Ratio

28

23

27

35

19

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.40

0.48

0.43

0.45

0.45

Liabilities Ratio

0.58

0.82

0.74

0.79

0.96

Times Interest Earned Ratio

1.97

1.49

1.23

2.45

1.21

Assets Backing Ratio

1.33

1.30

1.19

1.17

0.87

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

1.74

0.90

0.55

3.34

0.83

Net Profit Margin

1.04

0.24

0.31

2.65

0.83

Return On Net Assets

5.03

4.01

3.77

8.01

5.94

Return On Capital Employed

4.03

3.06

2.76

5.66

3.60

Return On Shareholders' Funds/Equity

1.58

0.38

0.44

4.36

1.16

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. 58.42

UK Pound

1

Rs. 98.28

Euro

1

Rs. 80.12

 

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.