MIRA INFORM REPORT

 

 

Report Date :

17.10.2014

 

IDENTIFICATION DETAILS

 

Name :

VJIKKS ENGG POWER (M) SDN. BHD.

 

 

Registered Office :

Suite 1705A, Menara Landmark, 12, Jalan Ngee Heng, Level 17, 80000 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

07.01.2010

 

 

Com. Reg. No.:

885284-H

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is principally engaged in the designing, engineering, development & fabrication of products made out precious, noble & exotic metals.

 

 

No of Employees :

15

 

 

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 :

Unknown

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 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.

:

885284-H

COMPANY NAME

:

VJIKKS ENGG POWER (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/01/2010

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 1705A, MENARA LANDMARK, 12, JALAN NGEE HENG, LEVEL 17, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

21, JALAN KETAPANG 18, TAMAN RINTING, 81750 MASAI, JOHOR, MALAYSIA.

TEL.NO.

:

07-3881323/3873821

FAX.NO.

:

07-3873321

HP.NO.

:

0197993204

WEB SITE

:

WWW.VJIKKSENGGPOWER.COM

CONTACT PERSON

:

ROBERT JAMES A/L SAVARIMUTHU ( DIRECTOR )

INDUSTRY CODE

:

71102

PRINCIPAL ACTIVITY

:

DESIGNING, ENGINEERING, DEVELOPMENT & FABRICATION OF PRODUCTS MADE OUT PRECIOUS, NOBLE & EXOTIC METALS

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 100,000.00 DIVIDED INTO ORDINARY SHARES 50,000 CASH AND 50,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 204,145 [2012]

NET WORTH

:

MYR 15,399 [2012]

STAFF STRENGTH

:

15 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 


 

HISTORY / BACKGROUND

 

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

The Subject is principally engaged in the (as a / as an) designing, engineering, development & fabrication of products made out precious, noble & exotic metals.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

22/01/2014

MYR 100,000.00

MYR 100,000.00

15/02/2013

MYR 100,000.00

MYR 50,000.00

07/01/2010

MYR 100,000.00

MYR 2.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. NORAHIMAN BIN ABD. RAHIM

12, LORONG LAYANG LAYANG 2, TAMAN LAYANG LAYANG, SEBERANG TASEK, 14120 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

771114-07-6325 A3708346

50,000.00

50.00

MR. ROBERT JAMES A/L SAVARIMUTHU +

1367, JALAN E4/19, TAMAN EHSAN KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

690103-10-6109 A1144124

7,500.00

7.50

MS. IRENE A/P ANTONE +

21, JALAN KETAPANG 18, TAMAN RINTING, 81750 MASAI, JOHOR, MALAYSIA.

710706-08-5082 A2771500

7,500.00

7.50

MR. ABD. RAHIM BIN HAJI MAN

28-C, PERUMAHAN TNB, JALAN BARU, 13800 BUTTERWORTH, PULAU PINANG, MALAYSIA.

491127-07-5333 0983893

35,000.00

35.00

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

------

100,000.00

100.00

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

=====

+ Also Director

 


 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. IRENE A/P ANTONE

Address

:

21, JALAN KETAPANG 18, TAMAN RINTING, 81750 MASAI, JOHOR, MALAYSIA.

IC / PP No

:

A2771500

New IC No

:

710706-08-5082

Date of Birth

:

06/07/1971

Nationality

:

MALAYSIAN

Date of Appointment

:

07/01/2010

 

DIRECTOR 2

 

Name Of Subject

:

MR. ROBERT JAMES A/L SAVARIMUTHU

Address

:

1367, JALAN E4/19, TAMAN EHSAN KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A1144124

New IC No

:

690103-10-6109

Date of Birth

:

03/01/1969

Nationality

:

MALAYSIAN

Date of Appointment

:

07/01/2010



MANAGEMENT

 

 

1)

Name of Subject

:

ROBERT JAMES A/L SAVARIMUTHU

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

AHMAD ABDULLAH & GOH

Auditor' Address

:

SUITE 1705, MENARA LANDMARK, 12, JALAN NGEE HENG, LEVEL 17, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. AHMAD SHAH BIN MOHD HASHIM

IC / PP No

:

A3128888

New IC No

:

750814-01-6937

Address

:

BLOK 14, 0405, TAMAN UNGKU TUN AMINAH, 81300 SKUDAI, JOHOR, MALAYSIA.

 

2)

Company Secretary

:

MS. WONG KHANG LIN

IC / PP No

:

5602885

New IC No

:

590705-01-5134

Address

:

11, JALAN BAKAWALI 89, TAMAN JOHOR JAYA, 81100 JOHOR BAHRU, JOHOR, 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.

 

 

LITIGATION 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


No blacklisted record & debt collection case was found in our defaulters' databank.

 


 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Services

:

DESIGNING, ENGINEERING, DEVELOPMENT & FABRICATION OF PRODUCTS MADE OUT PRECIOUS, NOBLE & EXOTIC METALS

 

Total Number of Employees:

YEAR

2014

 

GROUP

N/A

COMPANY

15

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) designing, engineering, development & fabrication of products made out precious, noble & exotic metals.


The Subject is a budding Engineering Solution company, incorporated in Malaysia can do designing ,engineering and development and fabrication of any product made out of precious exotic and noble metals TITANIUM, TANTALUM, NIOBIUM, ZIRCONIUM, NICKEL, HASTELLOY, MONEL, INCONEL, X-750, PLATINUM, RUTHENIUM, IRIDIUM, PALLADIUM and its alloys.


The products are as follows:


Electrochlorinators, Chlorate Cells, Membrane cells, MMO coated Titanium anodes, Platinised Anodes, Cathodic Protection Anodes, Heat Exchanger coils, Heat Exchangers, Columns, Trays, Pumps, Valves, Thermowells, Orifices, Sensors, Nozzles, sleeves, discs, Pipes, Elbows, Tees, Fasteners. Pumps & Other Products


AODD Pumps, Barrel/Drum Pump, Centrifugal Pump in Investment casting, Metering /Dosing Pump, Peristaltic/Hose Pump, Polypropylene Pumps, Portable Submersible Sewage Pump, Sealless Magnetic Driven Pump, Self Priming SS Centrifugal Pump.

Sacrificial Anodes, HEA Igniters, Cyclone Filters.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

607 3881323

Current Telephone Number

:

07-3881323/3873821

Match

:

YES

Address Provided by Client

:

21 JALAN KETAPANG 18, TAMAN RINTING B1750 MASAI JOHOR

Current Address

:

21, JALAN KETAPANG 18, TAMAN RINTING, 81750 MASAI, JOHOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 14th October 2014 we contacted one of the staff from the Subject and she provided some information.



FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

97.86%

]

Profit/(Loss) Before Tax

:

Increased

[

(77.66%)

]

Return on Shareholder Funds

:

Unfavourable

[

(143.11%)

]

Return on Net Assets

:

Unfavourable

[

(185.32%)

]

The increase in turnover could be due to the Subject adopting an aggressive marketing strategy.Higher losses before tax during the year could be due to the higher operating costs incurred. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

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

:

Acceptable

[

0.99 Times

]

Current Ratio

:

Unfavourable

[

0.99 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

:

Nil

[

0.00 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject's interest cover was nil as it did not pay any interest during the year. 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 :

Although the Subject's turnover increased its profits however showed a reverse trend. The losses could be due to the management's failure to maintain its competitiveness in the market. 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. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. 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 : 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

28,876

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

21,984

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

12.3

 

 

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012

2013

Agriculture

0.1

2.4

5.8

1.3

2.1

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

(6.5)

(0.3)

(5.4)

1.0

0.7

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 #

(9.0)

11.9

4.7

4.8

3.5

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.0)

12.7

18.6

Rubber Products

(10.1)

25.3

20.7

3.0

8.2

Wood Products

(24.1)

20.1

(5.1)

8.7

(3.1)

Textiles & Apparel

(19.5)

(0.4)

13.2

(7.1)

(2.6)

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.8

2.7

3.6

Chemical & Chemical Products

(7.7)

16.2

10.0

10.8

(0.7)

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.2

(6.6)

3.4

Fabricated Metal Products

(2.5)

14.9

21.8

13.8

12.2

Non-metallic Mineral

(15.5)

20.2

12.1

2.9

(0.4)

Transport Equipment

(13.5)

36.5

12.0

3.4

13.8

Paper & Paper Products

(5.0)

18.7

9.5

3.1

2.3

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

6.2

11.4

4.7

18.6

10.9

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

2.9

7.4

7.1

6.4

5.9

Electric, Gas & Water

1.4

7.8

3.5

4.4

4.2

Transport, Storage & Communication

1.6

7.7

6.5

7.1

7.3

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

4.7

5.9

Finance, Insurance & Real Estate

3.8

6.1

6.9

9.7

3.7

Government Services

3.4

5.9

12.4

9.4

8.3

Other Services

3.8

4.4

5.1

3.9

5.1

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

71102 : Engineering services

INDUSTRY :

CONSTRUCTION

The construction sector consists of four subsectors: residential, non-residential, civil engineering and special trade works. During a period of rapid economic expansion, the sector generally outperforms Gross Domestic Product (GDP) growth.

Construction's contribution to gross domestic product (GDP) is expected to fall to 11.2% in 2013 from 15 % in 2012, with all subsectors registering steady growth. The sector is expected to benefit from the acceleration of ongoing construction activities, particularly from the Economic Transformation Programme (ETP) and Second Rolling Plan (RP2) construction-related projects. Of significance, exploration activities in O&G industries and major projects such as the electrified double-tracking between lpoh -Padang Besar, LPT2 Jabur - Kuala Terengganu, MRT and the River of Life are expected to drive the growth of the civil engineering subsector. The non-residential subsector is expected to expand spurred by the industrial building segment and the commencement of construction of the Tun Razak Exchange (TRX). The residential subsector is also projected to expand, albeit at a moderate pace, after recording several years of strong growth. Key housing development projects, particularly in Sungai Buloh and Bandar Malaysia in Sungai Besi, which are expected to commence in 2013, will support residential construction activities. According to the Minister of Finance, the domestic demand is expected to grow at 5.6% and will remain the main driver of growth in 2013 underpinned by strong private sector expenditure.

The industry is set to receive a further boost from a wave of new developments earmarked for 2013, including rail projects worth an estimated $52 billion that should be launched in the coming year. It was predicted that the growth in other sectors will largely drive Malaysia's economy but the construction sector's contribution to GDP could still remain stable. However, while the construction sector is expected to have a solid 2013, it remains hampered by a shortage of skilled labourers, with rapid growth in recent years triggering a drain on its workforce. In late November of 2012, the Builders Association Malaysia (MBAM) request the government to do more to facilitate the training of building workers or run the risk of supplyside bottlenecks delaying new projects.

OVERALL INDUSTRY OUTLOOK : Average Growth

 

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


The Subject, incorporated in 2010 as a Private Limited company, focusing on designing, engineering, development & fabrication of products made out precious, noble & exotic metals. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. However, it has built up a satisfactory reputation in the market. We considered that the Subject has a small paid up capital of MYR 100,000. Without a strong capital, the business expansion opportunities of the Subject is limited. The Subject does not have strong shareholders’ backing due to the Subject's business position in the market is much dependent on the efforts of its directors.


Based on our investigation, the Subject has penetrated into both the local and overseas market. So, we believe that the Subject has the ability to lower its business risk to meet any uncertainties in the local economy. In this regard, the Subject's commercial risk is moderate. Being a small company, the Subject's business operation is supported by 15 employees. Overall, we regard that the Subject's management capability is average.


Despite the higher turnover, the Subject suffered pre-tax losses which reflected a highly competitive business environment. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. 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.


We noted that 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. Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth.

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, we only recommend credit be proceeded to the Subject with guarantee.

 


 

PROFIT AND LOSS ACCOUNT

 

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

VJIKKS ENGG POWER (M) SDN. BHD.

 

Financial Year End

2012-03-31

2011-03-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

TURNOVER

204,145

103,178

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

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

Total Turnover

204,145

103,178

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

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

PROFIT/(LOSS) FROM OPERATIONS

(28,538)

(16,063)

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

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

PROFIT/(LOSS) BEFORE TAXATION

(28,538)

(16,063)

Taxation

6,500

3,500

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

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

PROFIT/(LOSS) AFTER TAXATION

(22,038)

(12,563)

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(12,563)

-

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

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

As restated

(12,563)

-

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(34,601)

(12,563)

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(34,601)

(12,563)

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

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

 


 

 

BALANCE SHEET

 

VJIKKS ENGG POWER (M) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

7,217

8,097

Deferred assets

10,000

3,500

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

10,000

3,500

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

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

TOTAL LONG TERM ASSETS

17,217

11,597

Cash & bank balances

164,451

108,163

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

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

TOTAL CURRENT ASSETS

164,451

108,163

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

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

TOTAL ASSET

181,668

119,760

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

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

Other creditors & accruals

3,502

23,500

Amounts owing to director

162,767

58,823

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

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

TOTAL CURRENT LIABILITIES

166,269

82,323

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

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

NET CURRENT ASSETS/(LIABILITIES)

(1,818)

25,840

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

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

TOTAL NET ASSETS

15,399

37,437

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

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

SHARE CAPITAL

Ordinary share capital

50,000

50,000

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

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

TOTAL SHARE CAPITAL

50,000

50,000

Retained profit/(loss) carried forward

(34,601)

(12,563)

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

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

TOTAL RESERVES

(34,601)

(12,563)

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

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

SHAREHOLDERS' FUNDS/EQUITY

15,399

37,437

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

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

15,399

37,437

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

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

 


 

 

FINANCIAL RATIO

 

VJIKKS ENGG POWER (M) SDN. BHD.

 

TYPES OF FUNDS

Cash

164,451

108,163

Net Liquid Funds

164,451

108,163

Net Liquid Assets

(1,818)

25,840

Net Current Assets/(Liabilities)

(1,818)

25,840

Net Tangible Assets

15,399

37,437

Net Monetary Assets

(1,818)

25,840

BALANCE SHEET ITEMS

Total Borrowings

0

0

Total Liabilities

166,269

82,323

Total Assets

181,668

119,760

Net Assets

15,399

37,437

Net Assets Backing

15,399

37,437

Shareholders' Funds

15,399

37,437

Total Share Capital

50,000

50,000

Total Reserves

(34,601)

(12,563)

LIQUIDITY (Times)

Cash Ratio

0.99

1.31

Liquid Ratio

0.99

1.31

Current Ratio

0.99

1.31

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

Debtors Ratio

0

0

Creditors Ratio

0

0

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

Liabilities Ratio

10.80

2.20

Times Interest Earned Ratio

0.00

0.00

Assets Backing Ratio

0.31

0.75

PERFORMANCE RATIO (%)

Operating Profit Margin

(13.98)

(15.57)

Net Profit Margin

(10.80)

(12.18)

Return On Net Assets

(185.32)

(42.91)

Return On Capital Employed

(185.32)

(42.91)

Return On Shareholders' Funds/Equity

(143.11)

(33.56)

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.48

UK Pound

1

Rs.98.24

Euro

1

Rs.78.66      

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SMN

 

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.