MIRA INFORM REPORT

 

 

Report No. :

352378

Report Date :

03.12.2015

 

IDENTIFICATION DETAILS

 

Name :

LEOCH ACCUPOWER (M) SDN. BHD.

 

 

Registered Office :

29-3, Jalan 1/116b, Kuchai Entrepreneurs Park, Off Jalan Kuchai Lama, 58200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

21.07.2011

 

 

Com. Reg. No.:

953816-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing and trading in batteries.

 

 

No. of Employee :

300 [2015]

 

 

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 :

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. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration 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. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. 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 trying to lessen its dependence on state oil producer Petronas.

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB 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.

:

953816-K

COMPANY NAME

:

LEOCH ACCUPOWER (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

21/07/2011

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

29-3, JALAN 1/116B, KUCHAI ENTREPRENEURS PARK, OFF JALAN KUCHAI LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 13338 & 2493, JALAN SUKEPI, KAWASAN PERINDUSTRIAN JENJAROM, 42600 JENJAROM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-31916133

FAX.NO.

:

03-31913533

WEB SITE

:

WWW.LEOCH-ACCUPOWER.COM

CONTACT PERSON

:

TAN CHIN SIEA ( DIRECTOR )

INDUSTRY CODE

:

27200

PRINCIPAL ACTIVITY

:

MANUFACTURING AND TRADING IN BATTERIES

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 30,000,000.00 DIVIDED INTO
ORDINARY SHARES 30,000,000 CASH OF MYR 1.00 EACH.

SALES

:

N/A

NET WORTH

:

MYR 17,259,799 [2014]

STAFF STRENGTH

:

300 [2015]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

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) manufacturing and trading in batteries.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

23/07/2015

MYR 50,000,000.00

MYR 30,000,000.00

28/05/2015

MYR 50,000,000.00

MYR 25,000,000.00

20/05/2013

MYR 25,000,000.00

MYR 20,000,000.00

15/02/2013

MYR 25,000,000.00

MYR 13,000,000.00

20/01/2012

MYR 5,000,000.00

MYR 5,000,000.00

03/10/2011

MYR 1,000,000.00

MYR 1,000,000.00

21/07/2011

MYR 100,000.00

MYR 2.00

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

ACCUPRO SDN. BHD.

27A, JALAN BPU 8, 14TH MILE JALAN PUCHONG, BANDAR PUCHONG UTAMA, 47100 PUCHONG, SELANGOR, MALAYSIA.

197181V

18,000,000.00

60.00

LEOCH INTERNATIONAL HOLDING PTE. LTD.

53, UBI AVENUE 1, 03-21 PAYA UBI INDUSTRIAL PARK, 47100 PUCHONG, SELANGOR, MALAYSIA.

201109715D

12,000,000.00

40.00

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

------

30,000,000.00

100.00

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

YAO MINGWANG

Address

:

20-1, HUILONG ROAD, HUAYANG TOWN, WANGJIANG COUNTY, ANQING CITY, ANHUI PROVINCE, CHINA.

IC / PP No

:

G25744303

Date of Appointment

:

13/09/2011

 

DIRECTOR 2

 

Name Of Subject

:

MR. TAN CHIN SIEA

Address

:

LOT 8831, JALAN POKOK SAKAT, KAWASAN 6, 41000 KLANG, SELANGOR, MALAYSIA.

Other Address(es)

:

- JLN TOKONG, SIMPANG TUJUH, KOTA ALAM SHAH, 41000 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

6148602

New IC No

:

610105-10-6687

Date of Birth

:

05/01/1961

Nationality

:

MALAYSIAN

Date of Appointment

:

21/07/2011

 

DIRECTOR 3

 

Name Of Subject

:

MS. TAN KAI LIN

Address

:

LOT 8831, JALAN POKOK SAKAT, KAWASAN 6, 41200 KLANG, SELANGOR, MALAYSIA.

New IC No

:

930715-10-5190

Date of Birth

:

15/07/1993

Nationality

:

MALAYSIAN

Date of Appointment

:

13/09/2011

 

DIRECTOR 4

 

Name Of Subject

:

LI JIANGUANG

Address

:

2, SIXTH BUILDING XIANGXU VILLAGE, YANGGUTANG TOWN YUHU DISTRICT, XIANGTAN CITY, HUNAN PROVINCE, CHINA.

IC / PP No

:

G22179874

Date of Appointment

:

13/09/2011

 

DIRECTOR 5

 

Name Of Subject

:

MS. LEE LEY HOON

Address

:

LOT 8831, JALAN POKOK SAKAT, KAWASAN 6, 41200 KLANG, SELANGOR, MALAYSIA.

Other Address(es)

:

- JLN MASTIKA, SIMPANG TUJUH, KOTA ALAM SHAH, 41000 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

A1054691

New IC No

:

680731-10-5060

Date of Birth

:

31/07/1968

Nationality

:

MALAYSIAN

Date of Appointment

:

21/07/2011

MANAGEMENT

 

 

 

1)

Name of Subject

:

TAN CHIN SIEA

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

MELISSA YEE & CO

Auditor' Address

:

29-2, JALAN 1/116B, KUCHAI ENTREPRENEURS' PARK, OFF JALAN KUCHAI LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. TAY POOI HOON

IC / PP No

:

A0250758

New IC No

:

651029-10-5818

Address

:

5, JALAN CEMPAKA 29, TAMAN CEMPAKA, 68000 AMPANG, 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

28/12/2011

FIRST LEGAL CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD.

-

Unsatisfied

2

28/12/2011

FIRST LEGAL CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD.

-

Unsatisfied

3

27/09/2013

SPECIFIC DEBENTURE

UNITED OVERSEAS BANK (MALAYSIA) BHD.

-

Unsatisfied

4

11/02/2014

SPECIFIC DEBENTURE

UNITED OVERSEAS BANK (MALAYSIA) BHD.

-

Unsatisfied

5

11/03/2014

THIRD LEGAL CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BHD.

-

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

:

YES

Overseas

:

YES



CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA

MIDDLE EAST

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

BATTERIES

 

Total Number of Employees:

YEAR

2015

GROUP

N/A

COMPANY

300

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing and trading in batteries.

The Subject was established in 2011 as a specialist in sealed lead acid batteries (SLA) and valve regulated lead acid batteries (VRLA).

The Subject's main plant which is strategically located at Jenjarom, Selangor is equipped with a wide array of sophisticated and cutting edge machineries and facilities. Occupying a build-up area of 24,280m2, the plant is capable of producing 18,000 MT per year.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-31916133

Match

:

N/A

Address Provided by Client

:

LOT 13338 & 2493, JALAN SUKEPI, KAWASAN PERINDUSTRIAN JENJAROM, 42600 JENJAROM, KUALA LANGAT, SELANGOR, MALAYSIA.,

Current Address

:

LOT 13338 & 2493, JALAN SUKEPI, KAWASAN PERINDUSTRIAN JENJAROM, 42600 JENJAROM, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 27th November 2015 we contacted one of the staff from the Subject and he provided some information.

The Subject only commenced its business operation in end of 2014.


FINANCIAL ANALYSIS

 

 

The Subject's turnover was nil during the year indicate that it was inactive. As a result, we are unable to comment on its financial performance.

Overall financial condition of the Subject : N/A

 

 

 

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

27200 : Manufacture of batteries and accumulators

INDUSTRY :

ELECTRICAL & ELECTRONIC

The electrical & electronics (E&E) industry is the leading subsector in Malaysia's manufacturing sector, contributing significantly to the country's exports (32.8 %) and employment (27.2 %) in 2013. E&E products have been the largest traded items for Malaysia for several decades since the industry inception in the 1960s. The E&E industry in Malaysia is focused on strengthening the three major ecosystems of semiconductors, solar and LED technologies.

In the E&E subsector, production grew more strongly by 13.3% during the first seven months of 2014 mainly driven by electronic components, communication equipment and domestic appliances. The output of printed circuit boards and semiconductor devices rose in line with the growing demand for consumer electronics, particularly mobile devices, as well as improving global PC sales. Early in 2014, global PC sales rose on a moderating trend due to the replacement of PCs with a new operating system. Prices of PCs are also falling, narrowing the price differential with tablets. In contrast, the output of general-purpose machinery decreased 8.8% on account of the decline in manufacture of air-conditioning machine as well as lifting and handling equipment.

Malaysia being a part of the global E&E production network that stands to gain from the stronger growth in worldwide semiconductor sales. In 2015, the export-oriented industries, particularly the E&E subsector will benefit from the improvement in external conditions in line with improving global growth. The E&E subsector is expected to grow further driven by higher demand of semiconductors, electronic components, communication and computer peripherals with the upswing of global electronics demand.

Receipts from E&E products grew at an impressive 10.6% in the first seven months of 2014, rebounding from a contraction of 2.9% in the corresponding period last year. The steady improvement in the global economy, coupled with a pickup in the ICT industry led a surge of 20.1% in export of semiconductor devices. In addition, the robust demand for mid- to low-end smartphones and tablets, notably in emerging markets has driven higher shipments of telecommunication equipment and parts, which turned around with a stronger growth of 30.9% to the US, Netherlands, Singapore and Mexico.

According to Ministry of International Trade and Industry, the healthy growth in the E&E sector will help boost the country's economy. The E&E sector is important to Malaysia. Exports of manufactured goods for September 2014 rose by 2.2 % to RM49.14 billion compared with September 2013, driven by higher exports of E&E products. Hence, gross exports are expected to grow 3.2% in 2015 mainly supported by E&E.

The growth of semiconductor will continue to spearhead the growth of the E&E industry in Malaysia and has benefited from the global demand in the usage of mobile devices, storage devices, and optoelectronics (photonics, fibre optics, LEDs) and embedded technology integrated circuits, PCBs, LEDs. The E&E industry is targeted under the National Key Economic Areas (NKEA) to gear the nation towards high-income economy by focusing on high-value and high-growth manufacturing activities.

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 2011, the Subject is a Private Limited company, focusing on manufacturing and trading in batteries. 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 30,000,000. The Subject have a strong support from its shareholder.

We found that, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 300 staff in its 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.

The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at MYR 17,259,799, 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 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.

In view of the above, we recommend credit be granted to the Subject with close monitoring.

 



PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2014-06-30

2013-06-30

2012-06-30

Months

12

12

12

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

Currency

MYR

MYR

MYR

PROFIT/(LOSS) FROM OPERATIONS

(1,733,100)

(586,271)

(420,830)

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

(1,733,100)

(586,271)

(420,830)

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(1,733,100)

(586,271)

(420,830)

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(1,007,101)

(420,830)

-

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

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

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

As restated

(1,007,101)

(420,830)

-

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(2,740,201)

(1,007,101)

(420,830)

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(2,740,201)

(1,007,101)

(420,830)

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Hire purchase

3,881

2,098

-

Term loan / Borrowing

987,257

208,711

-

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

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

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

991,138

210,809

-

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

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

-

DEPRECIATION (as per notes to P&L)

22,783

12,721

-

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

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

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

22,783

12,721

-

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

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

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

33,930,342

13,216,186

4,967,692

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

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

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

TOTAL LONG TERM ASSETS

33,930,342

13,216,186

4,967,692

Other debtors, deposits & prepayments

548,105

13,169,869

-

Amount due from holding company

3,411,418

-

-

Cash & bank balances

80,478

76,097

-

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

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

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

TOTAL CURRENT ASSETS

4,040,001

13,245,966

2,761,346

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

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

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

TOTAL ASSET

37,970,343

26,462,152

7,729,038

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

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

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

Other creditors & accruals

62,177

1,948

-

Hire purchase & lease creditors

56,658

7,577

-

Short term borrowings/Term loans

2,323,995

1,420,139

-

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

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

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

TOTAL CURRENT LIABILITIES

2,442,830

1,429,664

241,791

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,597,171

11,816,302

2,519,555

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

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

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

TOTAL NET ASSETS

35,527,513

25,032,488

7,487,247

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

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

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

SHARE CAPITAL

Ordinary share capital

20,000,000

20,000,000

5,000,000

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

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

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

TOTAL SHARE CAPITAL

20,000,000

20,000,000

5,000,000

Retained profit/(loss) carried forward

(2,740,201)

(1,007,101)

(420,830)

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

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

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

TOTAL RESERVES

(2,740,201)

(1,007,101)

(420,830)

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

17,259,799

18,992,899

4,579,170

Long term loans

18,040,990

6,014,843

-

Hire purchase creditors

226,724

24,746

-

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

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

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

TOTAL LONG TERM LIABILITIES

18,267,714

6,039,589

2,908,077

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

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

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

35,527,513

25,032,488

7,487,247

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

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

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

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

80,478

76,097

-

Net Liquid Funds

80,478

76,097

-

Net Liquid Assets

1,597,171

11,816,302

2,519,555

Net Current Assets/(Liabilities)

1,597,171

11,816,302

2,519,555

Net Tangible Assets

35,527,513

25,032,488

7,487,247

Net Monetary Assets

(16,670,543)

5,776,713

(388,522)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

(741,962)

(375,462)

-

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

(719,179)

(362,741)

-

BALANCE SHEET ITEMS

Total Borrowings

20,648,367

7,467,305

-

Total Liabilities

20,710,544

7,469,253

3,149,868

Total Assets

37,970,343

26,462,152

7,729,038

Net Assets

35,527,513

25,032,488

7,487,247

Net Assets Backing

17,259,799

18,992,899

4,579,170

Shareholders' Funds

17,259,799

18,992,899

4,579,170

Total Share Capital

20,000,000

20,000,000

5,000,000

Total Reserves

(2,740,201)

(1,007,101)

(420,830)

LIQUIDITY (Times)

Cash Ratio

0.03

0.05

-

Liquid Ratio

1.65

9.27

-

Current Ratio

1.65

9.27

11.42

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

-

Debtors Ratio

0

0

-

Creditors Ratio

0

0

-

SOLVENCY RATIOS (Times)

Gearing Ratio

1.20

0.39

-

Liabilities Ratio

1.20

0.39

0.69

Times Interest Earned Ratio

(0.75)

(1.78)

-

Assets Backing Ratio

1.78

1.25

1.50

PERFORMANCE RATIO (%)

Operating Profit Margin

0

0

-

Net Profit Margin

0

0

-

Return On Net Assets

(2.09)

(1.50)

(5.62)

Return On Capital Employed

(2.09)

(1.50)

(5.62)

Return On Shareholders' Funds/Equity

(10.04)

(3.09)

(9.19)

Dividend Pay Out Ratio (Times)

0

0

-

NOTES TO ACCOUNTS

Contingent Liabilities

0

0



FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.62

UK Pound

1

Rs.100.34

Euro

1

Rs.70.67

MYR

1

Rs.15.79

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ANK

 


 

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.