MIRA INFORM REPORT

 

 

Report No. :

334835

Report Date :

04.08.2015

 

IDENTIFICATION DETAILS

 

Name :

MALINDO AIRWAYS SDN. BHD.

 

 

Registered Office :

Unit 733, Block B, Mentari Business Park, Jalan Pjs 8/5, Bandar Sunway, 46150 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

27.09.2012

 

 

Com. Reg. No.:

1018546-W

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the Air Transport Services.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Slow and Delayed

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 previously 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. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplied about 29% of government revenue in 2014. 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. Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 


 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

1018546-W

COMPANY NAME

:

MALINDO AIRWAYS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

27/09/2012

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

UNIT 733, BLOCK B, MENTARI BUSINESS PARK, JALAN PJS 8/5, BANDAR SUNWAY, 46150 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

C-5-05, BLOCK C, OASIS ARA DAMANSARA, JALAN PJU 1A/7A, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-78415388

FAX.NO.

:

N/A

WEB SITE

:

WWW.MALINDOAIR.COM

CONTACT PERSON

:

CHANDRAN A/L RAMA MUTHY ( CEO )

INDUSTRY CODE

:

51

PRINCIPAL ACTIVITY

:

AIR TRANSPORT SERVICES

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 1,000,000.00 DIVIDED INTO 
ORDINARY SHARES 1,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 167,126,000 [2013]

NET WORTH

:

MYR (66,917,000) [2013]

STAFF STRENGTH

:

N/A

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

WEAK

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL 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) air transport services.

 

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

03/12/2014

MYR 5,000,000.00

MYR 1,000,000.00

27/09/2012

MYR 5,000,000.00

MYR 2.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

PT LION GRUP

LION AIR TOWER, JALAN AM SANSAJI 19, JAKARTA PUSAT, 10130, INDONESIA.

AHU-17817.AH.01.01

490,000.00

49.00

SKY ONE INVESTORS SDN. BHD.

33A, SS18/1B, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

1016453H

460,000.00

46.00

NATIONAL AEROSPACE & DEFENCE INDUSTRIES SDN. BHD.

MALAYSIA

112324V

50,000.00

5.00

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

------

1,000,000.00

100.00

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

=====

 

+ Also Director

 

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



Local No

Country

Company

(%)

As At

1077567V

MALAYSIA

MALINDO HOLIDAYS SDN. BHD.

99.00

26/11/2014

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

RUSDI KIRANA

Address

:

TAMAN MERUYA ILIR D-5/3RT/RW 001/002, MERUYA UTARA, KEMBANGAN JAKARTA BARAT, JAKARTA, INDONESIA.

IC / PP No

:

A5115612

Date of Appointment

:

27/09/2012

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHANDRAN A/L RAMA MUTHY

Address

:

15, JALAN SP 2/11B, TAMAN SUBANG PERDANA, SEKSYEN 2, SUBANG PERDANA, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

New IC No

:

791206-05-5175

Date of Birth

:

06/12/1979

Nationality

:

MALAYSIAN

Date of Appointment

:

08/10/2012

 

DIRECTOR 3

 

Name Of Subject

:

ANDI BURHAN DWI ARMEIN

Address

:

JALAN MAMPANG PRAPATAN, VIII 8, JAKARTA, INDONESIA, 12790, MALAYSIA.

IC / PP No

:

A7294594

Date of Appointment

:

05/04/2013

 

DIRECTOR 4

 

Name Of Subject

:

MS. TAN CHOOI KHENG

Address

:

56, JALAN PUJ 5/9, TAMAN PUNCAK JALIL, PUTRA PERMAI, 43300 SERI KEMBANGAN, SELANGOR, MALAYSIA.

IC / PP No

:

A3911880

New IC No

:

780206-10-5706

Date of Birth

:

06/02/1978

Nationality

:

MALAYSIAN

Date of Appointment

:

30/01/2015

 

MANAGEMENT

 

 

1)

Name of Subject

:

CHANDRAN A/L RAMA MUTHY

Position

:

CEO

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

KPMG TOWER, 8 FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. RITHAVUDIN AHAMED BIN BADRUDIN

New IC No

:

780710-71-5001

Address

:

34, JALAN PJS 5/5, TAMAN DESA RIA, 46150 PETALING JAYA, SELANGOR, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

13/03/2013

AIRCRAFT

WILMINGTO TRUST COMPANY, NOT IN ITS INDIVIDUAL CAPACITY, BUT SOLELY AS SECURITY TRUSTEE

USD 82,000,000.00

Unsatisfied

2

19/03/2013

ASSIGNMENT OF INSURANCE

WILMINGTO TRUST COMPANY, NOT IN ITS INDIVIDUAL CAPACITY, BUT SOLELY AS SECURITY TRUSTEE

USD 82,000,000.00

Unsatisfied

3

07/06/2013

ASSIGNMENT OF INSURANCES

WILMINGTO TRUST COMPANY, NOT IN ITS INDIVIDUAL CAPACITY, BUT SOLELY AS SECURITY TRUSTEE

USD 885,211,000.00

Unsatisfied

8

20/03/2014

ASSIGNMENT OF INSURANCE

ATLANTIC AVIATION 18 (L) BHD

-

Unsatisfied

10

21/03/2014

ASSIGNMENT OF INSURANCE

ATLANTIC AVIATION 18 (L) BHD.

-

Unsatisfied

11

25/03/2014

ASSIGNMENT OF INSURANCES

ATLANTIC AVIATION 18 (L) BHD.

-

Unsatisfied

12

26/03/2014

ASSIGNMENT OF INSURANCES

ATLANTIC AVIATION 18 (L) BHD.

-

Unsatisfied

13

19/05/2014

ASSIGNMENT OF INSURANCE

ATLANTIC AVIATION 20 (L) BHD.

-

Unsatisfied

14

30/05/2014

ASSIGNMENT OF INSURANCES

ATLANTIC AVIATION 20 (L) BHD.

-

Unsatisfied

15

18/07/2014

ASSIGNMENT OF INSURANCES

ATLANTIC AVIATION 21 (L) BHD.

-

Unsatisfied

16

22/09/2014

ASSIGNMENT OF INSURANCE

ATLANTIC AVIATION 21 (L) BHD.

-

17

23/10/2014

ASSIGNMENT OF INSURANCES

ATLANTIC AVIATION 21 (L) BHD.

-

Unsatisfied

19

11/12/2014

ASSIGNMENT OF INSURANCE

BOC AVIATION (LABUAN) PTE. LTD

-

Unsatisfied

 

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

:

N/A

Overseas

:

N/A


The Subject is a service provider. 

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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

N/A

Payment Mode

:

CHEQUES

 

OPERATIONS

 

Services

:

AIR TRANSPORT SERVICES

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) air transport services. 

Malindo Air is an up-and-coming airline based in Malaysia with headquarters in Petaling Jaya, Selangor.

The Subject has a way of giving low air fare with premium in-flight services included. That means baggage allowance and in-flight entertainment are taken care of. Fuss-free and no hidden costs. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

603 2035 6699

Current Telephone Number

:

03-78415388

Match

:

NO

Address Provided by Client

:

C-5-05, BLOCK C, OASIS AREA DAMANSARA 2 JALAN PJU 1A/71 47301 PETALING JAYA SELANGOR

Current Address

:

C-5-05, BLOCK C, OASIS ARA DAMANSARA, JALAN PJU 1A/7A, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


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

The Subject refused to disclose its number of employees and fax number.

FINANCIAL ANALYSIS

 

Profitability

Return on Shareholder Funds

:

Unfavourable

[

101.49%

]

Return on Net Assets

:

Unfavourable

[

101.49%

]

Although the Subject's returns showed positive figures it is not reflective of the true situation. The Subject incurred losses during the year and its shareholders' funds have turned red. The positive returns on shareholders' funds is the result of losses divided by negative shareholders' funds. The Subject's management was inefficient in utilising the assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

3 Days

]

Debtor Ratio

:

Favourable

[

7 Days

]

Creditors Ratio

:

Favourable

[

40 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in 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

:

Unfavourable

[

0.39 Times

]

Current Ratio

:

Unfavourable

[

0.40 Times

]

A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

Interest Cover

:

Unfavourable

[

(13,582.40 Times)

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. 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 :

Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. The Subject's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. 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 : POOR

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.2

4.0

Unemployment Rate

3.3

3.2

3.0

2.9

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

4.00

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

6.85

-

Business Loans Disbursed( % )

15.3

32.2

-

56.0

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

43,486.6

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

49,144

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

6.1

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

21,753

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

(17.7)

-

Registration of New Business ( No. )

284,598

324,761

329,895

332,723

-

Registration of New Business ( % )

5.0

14.0

2.0

1.0

-

Business Dissolved ( No. )

20,121

20,380

18,161

21,436

-

Business Dissolved ( % )

1.9

1.3

(10.9)

18.0

-

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

63.2

-

Credit Cards Spending ( % )

15.6

12.6

-

13.5

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-



INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

3.0

-

Other Mining

-

-

-

46.6

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.4

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

1.4

-

Plastic Products

3.8

-

-

2.7

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

13.0

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

51 : AIR TRANSPORT

INDUSTRY :

TRANSPORTATION

In 2015, the transport and storage subsector is expected to growth by 4.7% due to the implementation of Government Transformation Programme (GTP) and the Economic Transformation Programme (ETP). On the other hand, for 2014, due to resilient domestic economic activity and improving global trade, the transport and storage subsector is expected to grow 5%.

Moreover, the land transport segment continued to record positive growth of 6.2% during the first half of 2014 supported by higher freight transported by road in line with improvement in trade-related activity. The opening of Penang Second Bridge in March 2014 saw a healthy number of vehicles using it to avoid traffic congestion. However, the increase in passenger volume for bus services was only 1.9% over the first six months in 2014 (January - July 2013: 6%).

Meanwhile, total rail ridership in the Klang Valley increased 5.9% passengers due to improved service efficiency and increased frequencies. The 2.14KM extension of Express Rail Link (ERL) from KLIA to KLIA2 will also increase rail ridership. However, KTM Intercity Service contracted 18% because of the fewer number of coaches in operation due to maintenance issues. Other than that, The Electric Train Service (ETS) ridership on the Kuala Lumpur - Ipoh route increased 11.7% supported by higher demand.

During the first half in 2014, the air transport segment expanded 4.9% supported by higher tourist arrivals and domestic passengers amid continuous promotion of travel packages with competitive fares by airlines. The air passenger segment continued to record positive with total passenger traffic at airports nationwide increasing 10.3% during the first seven moths of 2014.

According to Budget 2015, to improve the public transport system, the Government will introduce the programmes included providing intercity bus services to those residing outside Kuala Lumpur (KL) but work in KL, provide Electric Train Service (ETS) for Ipoh-Butterworth route starting April 2015, and upgrade stage bus services in several states (Kuching, Ipoh, Seremban, Kuala Terengganu and Kangar) through a contracting system with existing bus companies. The budget 2015 for transportation sector includes RM9 billion development allocation for a LRT extension project from Bandar Utama to Shah Alam and Klang, and RM23 billion for a second MRT line from Selayang to Putrajaya. Government also will allocate RM5.3 billion for the construction of Sungai Besi - Ulu Klang Expressway (SUKE), RM5 billion for West Coast Expressway from Taiping to Banting, RM4.2 billion for construction of Damansara - Shah Alam Highway (DASH), and RM1.6 billion for construction of Eastern Klang Valley Expressway (EKVE).

Additionally, improving urban public transport (UPT) is one of the National Key Result Areas (NKRAs) under the Government Transformation Programme (GTP). The aim is to improve the overall availability and efficiency of UPT, including enhancing connectivity, providing an integrated system and ensuring adequate facilities. Because of the improvement to UPT in the Klang Valley, the public transport modal share has increased from 17% in 2010 to 21% in 2013. The programme covers improvement for Bus Services (RapidKL, Bus Expressway Transit (BET), Bus Rapid Transit (BRT), bus stops), Rail System (KTM, LRT, KL Monorail, Express Rail Link (ERL), MRT, Park n' Ride), and Taxi Services.

The Klang Valley Mass Transit Project (KVMRT) is one of the improvements to do for UPT and it may boost the growth of transportation sector. The Sungai Buloh - Kajang (SBK) line has started construction in 2012. The first phase of SBK Line from Sungai Buloh to Semantan will be operational on 31 December 2016, while the second phase from Semantan to Kajang will be operational on 31 July 2017.

Furthermore, the Bus Rapid Transit (BRT) aims to create a dedicated bus right-of-way at main corridors and is a specialized form of bus priority services to meet the high level of passenger demand by incorporating aspects of mass transit. One of the BRT corridors is the Kuala Lumpur - Klang corridor, covering a distance of 34KM, and will pass through Federal Highway, Jalan Syed Putra, and Jalan Tun Sambanthan. The KL-Klang BRT is estimated to save more than one hour of daily travelling time for 600,000 passengers, and is expected to be completed in 2017.

In order to improve taxi services, the Centralized Taxi Services System (CTSS) will be launched in 2015. It is a technology infrastructure to monitor taxi services. It integrates and enhances the existing booking system. It is targeted to raise the success rate of meeting passenger bookings. Besides, a new business model for taxis has been introduced to increase the take-home income for taxi drivers by reducing their operating cost. Under the Taxi 1Malaysia project, licenses will be offered to individual drivers. The Land Public Transport Commission (SPAD) has launched a fleet of new taxis known as Teksi 1Malaysia (TEKS1M). Through the TEKS1M initiative, 1,000 new Proton Exora will be deployed in 2014.

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2012, the Subject is a Private Limited company, focusing on air transport services. 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 yet to enjoy a stable market shares as it need to compete many well established players in the same field. Presently, the issued and paid up capital of the Subject stands at MYR 1,000,000. The Subject have a strong support from its shareholder. 

Investigation revealed, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Overall, we regard that the Subject's management capability is weak. Without capable management, the Subject is unlikely to be successful and often contribute to unacceptable levels of accountability. Weak management can affect productivity, profitability, sales growth and ultimately can result in the failure of a business. 

The Subject has generated its turnover of MYR 167,126,000 and its pre tax loss of MYR -67,917,000. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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. The Subject's unfavourable financial performance over the years has wiped out its shareholders' funds to a deficit of MYR -66,917,000. Therefore, the Subject as a going concern is much dependent on its ability to generate sufficient cash flow and obtain additional financing to meet its future obligations. 

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 has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market. 

Based on the above unfavourable condition, we regard granting credit to the Subject to be quite risky. Hence, credit is not recommended.

 



PROFIT AND LOSS ACCOUNT

 

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

MALINDO AIRWAYS SDN. BHD.

 

Financial Year End

2013-12-31

Months

12

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

FULL

Currency

MYR

TURNOVER

167,126,000

Other Income

4,343,000

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

Total Turnover

171,469,000

Costs of Goods Sold

(179,756,000)

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

Gross Profit

(8,287,000)

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

PROFIT/(LOSS) FROM OPERATIONS

(67,917,000)

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

PROFIT/(LOSS) BEFORE TAXATION

(67,917,000)

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

PROFIT/(LOSS) AFTER TAXATION

(67,917,000)

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(67,917,000)

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(67,917,000)

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

INTEREST EXPENSE (as per notes to P&L)

Others

5,000

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

5,000

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

DEPRECIATION (as per notes to P&L)

362,000

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

362,000

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

 

 

 

BALANCE SHEET

 

MALINDO AIRWAYS SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

3,005,000

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

TOTAL LONG TERM ASSETS

3,005,000

Stocks

1,252,000

Trade debtors

3,167,000

Other debtors, deposits & prepayments

12,714,000

Amount due from related companies

19,755,000

Cash & bank balances

9,126,000

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

TOTAL CURRENT ASSETS

46,014,000

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

TOTAL ASSET

49,019,000

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

CURRENT LIABILITIES

Trade creditors

19,558,000

Other creditors & accruals

23,513,000

Amounts owing to holding company

53,231,000

Amounts owing to related companies

19,634,000

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

TOTAL CURRENT LIABILITIES

115,936,000

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

NET CURRENT ASSETS/(LIABILITIES)

(69,922,000)

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

TOTAL NET ASSETS

(66,917,000)

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

SHARE CAPITAL

Ordinary share capital

1,000,000

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

TOTAL SHARE CAPITAL

1,000,000

Retained profit/(loss) carried forward

(67,917,000)

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

TOTAL RESERVES

(67,917,000)

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

SHAREHOLDERS' FUNDS/EQUITY

(66,917,000)

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

(66,917,000)

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

 

 

 

FINANCIAL RATIO

 

MALINDO AIRWAYS SDN. BHD.

 

TYPES OF FUNDS

Cash

9,126,000

Net Liquid Funds

9,126,000

Net Liquid Assets

(71,174,000)

Net Current Assets/(Liabilities)

(69,922,000)

Net Tangible Assets

(66,917,000)

Net Monetary Assets

(71,174,000)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

0

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

(67,550,000)

BALANCE SHEET ITEMS

Total Borrowings

0

Total Liabilities

115,936,000

Total Assets

49,019,000

Net Assets

(66,917,000)

Net Assets Backing

(66,917,000)

Shareholders' Funds

(66,917,000)

Total Share Capital

1,000,000

Total Reserves

(67,917,000)

LIQUIDITY (Times)

Cash Ratio

0.08

Liquid Ratio

0.39

Current Ratio

0.40

WORKING CAPITAL CONTROL (Days)

Stock Ratio

3

Debtors Ratio

7

Creditors Ratio

40

SOLVENCY RATIOS (Times)

Gearing Ratio

0

Liabilities Ratio

(1.73)

Times Interest Earned Ratio

(13,582.40)

Assets Backing Ratio

(66.92)

PERFORMANCE RATIO (%)

Operating Profit Margin

(40.64)

Net Profit Margin

(40.64)

Return On Net Assets

101.49

Return On Capital Employed

101.49

Return On Shareholders' Funds/Equity

101.49

Dividend Pay Out Ratio (Times)

0

NOTES TO ACCOUNTS

Contingent Liabilities

0



FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.96

UK Pound

1

Rs.99.93

Euro

1

Rs.70.16

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

               

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.