MIRA INFORM REPORT

 

 

Report No. :

353036

Report Date :

09.12.2015

 

IDENTIFICATION DETAILS

 

Name :

CONCEPT LAB SDN. BHD.

 

 

Registered Office :

38d-2a, Jalan Radin Anum, Bandar Baru Seri Petaling, 57000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.04.2014

 

 

Date of Incorporation :

16.04.2009

 

 

Com. Reg. No.:

853823-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the trading of garment, leather goods, stockings, fabric and textiles.

 

 

No. of Employees :

Not Available

 

 

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.

:

853823-M

COMPANY NAME

:

CONCEPT LAB SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

16/04/2009

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

38D-2A, JALAN RADIN ANUM, BANDAR BARU SERI PETALING, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

69-2, JALAN JEJAKA 7, TAMAN MALURI, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-92853129

FAX.NO.

:

N/A

CONTACT PERSON

:

CHEAH BIAN KOOI ( DIRECTOR )

INDUSTRY CODE

:

47820

PRINCIPAL ACTIVITY

:

TRADING OF GARMENT, LEATHER GOODS, STOCKINGS, FABRIC AND TEXTILES

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 250,000.00 DIVIDED INTO 
ORDINARY SHARES 250,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 18,204,675 [2014]

NET WORTH

:

MYR 643,045 [2014]

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

HIGH

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

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

 

The Subject is principally engaged in the (as a / as an) trading of garment, leather goods, stockings, fabric and textiles.

 

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

31/10/2014

MYR 500,000.00

MYR 250,000.00

28/12/2011

MYR 500,000.00

MYR 200,000.00

08/02/2010

MYR 500,000.00

MYR 100,000.00

21/04/2009

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

(%)

MR. CHEAH BIAN KOOI +

32-2-3A, CONDOMINIUM BUKIT DESA, JALAN BUKIT DESA 3/109B, TAMAN DESA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

730822-14-5335

200,000.00

80.00

MS. CHEW LEE SA +

32-2-3A, CONDOMINIUM BUKIT DESA, JALAN BUKIT DESA 3/109B, TAMAN DESA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

790703-14-5580

50,000.00

20.00

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

------

250,000.00

100.00

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

=====

 

+ Also Director

 

Former Shareholder(s) :

Name

Country

IC/PP/Loc No

Shareholding

Last Updated

HOR KAM KEONG

MALAYSIA

630210-08-6399

N/A

N/A

LOW HON LAI

MALAYSIA

550831-09-5175

N/A

N/A

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. CHEW LEE SA

Address

:

32-2-3A, CONDOMINIUM BUKIT DESA, JALAN BUKIT DESA 3/109B, TAMAN DESA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Other Address(es)

:

JLN BUNGA KEMBOJA 3 TM, TAMAN MUDA BARAT, TERATAI, PANDAN, MALAYSIA.

New IC No

:

790703-14-5580

Date of Birth

:

03/07/1979

Nationality

:

MALAYSIAN

Date of Appointment

:

04/01/2013

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHEAH BIAN KOOI

Address

:

32-2-3A, CONDOMINIUM BUKIT DESA, JALAN BUKIT DESA 3/109B, TAMAN DESA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Other Address(es)

:

127 KG.MUHIBBAH, BATU 6 1/2,JALAN PUCHONG, 58200 K.LUMPUR, MALAYSIA.

New IC No

:

730822-14-5335

Date of Birth

:

22/08/1973

Nationality

:

MALAYSIAN

Date of Appointment

:

16/04/2009

 

MANAGEMENT

 

 

1)

Name of Subject

:

CHEAH BIAN KOOI

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

OK YAU & HOWYONG

Auditor' Address

:

38D-2, JALAN RADIN ANUM, BANDAR BARU SERI PETALING, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LOW KUAN WEI

IC / PP No

:

A1982844

New IC No

:

720108-06-5136

Address

:

10, JALAN PUJ 4/13, TAMAN PUNCAK JALIL, BANDAR PUTRA PERMAI, 43300 SERI KEMBANGAN, SELANGOR, MALAYSIA.

 

2)

Company Secretary

:

MR. LAI KIN YOONG

New IC No

:

791012-14-5949

Address

:

726, JALAN 30, SALAK SELATAN BARU, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

BANKING


No Banker found in our databank. 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

10/07/2013

LETTER OF SET OFF

RHB BANK BERHAD

-

Unsatisfied

2

10/09/2013

MEMORANDUM OF DEPOSIT & LETTER OF SET OFF

ALLIANCE BANK MALAYSIA BERHAD

-

Unsatisfied

3

20/01/2014

FIXED CHARGE

PUBLIC BANK BERHAD

-

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 refused to disclose its suppliers. 

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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

N/A

Payment Mode

:

CHEQUES

 

OPERATIONS

 

Goods Traded

:

GARMENT, LEATHER GOODS, STOCKINGS, FABRIC AND TEXTILES

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading of garment, leather goods, stockings, fabric and textiles. 

The Subject refused to disclose its operation. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-92853129

Match

:

N/A

Address Provided by Client

:

NO 69-2, JALAN JEJAKA 7, TAMAN MALURI, CHERAS, 55100, KUALA LUMPUR, 55100, MALAYSIA

Current Address

:

69-2, JALAN JEJAKA 7, TAMAN MALURI, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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, fax number and bankers.



FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2014

]

Return on Shareholder Funds

:

Unfavourable

[

(18.13%)

]

Return on Net Assets

:

Unfavourable

[

3.79%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject incurred losses during the year due to the inefficient control of its operating costs. 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

[

50 Days

]

Creditors Ratio

:

Favourable

[

27 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

:

Favourable

[

1.42 Times

]

Current Ratio

:

Unfavourable

[

1.42 Times

]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Unfavourable

[

0.69 Times

]

Gearing Ratio

:

Unfavourable

[

5.19 Times

]

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

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 was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

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

30.0

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

4.7

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

82,480

85,258

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

3.2

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

44.0

44.2

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

27.4

29.4

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

63.6

58.8

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)

1.0

0.7

0.7

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

5.3

Electrical & Electronics

(4.0)

12.7

6.9

13.3

7.9

Rubber Products

20.7

3.0

11.7

(0.3)

3.4

Wood Products

(5.1)

8.7

(2.7)

5.1

7.1

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

7.2

Domestic-oriented Industries

10.7

1.7

6.8

9.4

3.3

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

8.90

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

3.6

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

7.2

Transport Equipment

12.0

3.4

13.8

22.9

7.6

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

47820 : Retail sale of textiles, clothing and footwear via stalls or markets

INDUSTRY :

TRADING

The wholesale and retail trade is expected to increase 7.1% in 2015 (2014: 7.7%) driven by strong domestic consumption and higher tourist arrivals following the Malaysia Year of Festivals 2015. Besides, in 2014, the wholesale and retail trade subsector is expected to increase 7.7% (2013: 6.4%) supported by strong domestic consumption.

According to Retail Group Malaysia (RGM), the pharmacy and personal care sub-sector had slow growth rate of 2.6% for the first quarter of 2014, while "other specialty stores" grew at a rate of 3.5%. During the first quarter of 2014, fashion and fashion accessories recorded a sustainable growth of 6.3% as compared with the same period last year (3.6%).

The retail segment increased 10.1% (January - June 2013: 7.1%) attributed to brisk sales in retail outlets such as hypermarkets and large-scale superstores. Since the launch of the Small Retailer Transformation programme (TUKAR) in January 2011 up to end-July 2014, 1,761 small retailer stores (end-July 2013: 1,381) have been modernized to improve their competitiveness. In addition, the strong growth of the retail segment was supported by 1Malaysia Unified Sales held from 29 June 2014 to 1 September 2014 to attract foreign and local tourists to shop in Malaysia. Meanwhile, the wholesale segment expanded 8.2% (January - June 2013: 4.9%) due to higher sales of non-agricultural intermediate products, such as petrol, diesel, lubricants and household goods. Furthermore, food and beverage outlets, laundry outlets, car wash centres, abd health and beauty outlets took a hit from the water rationing in the Klang Valley since February this year.

On the other hand, in 2014, Malaysia's total trade is expected to grow 5.2% to RM1.44 trillion (2013: 4.5%; RM1.37 trillion) underpinned by recovery in key advanced economies, resilient regional demand, and partly due to the base effect arising from sluggish exports in the corresponding period last year. Gross exports are anticipated to expand 6% to RM762.8 billion while import decreased 4.3% to RM677.2 billion (2013: 2.4%; RM719.8 billion; 7%; RM 649.1 billion). Consequently, the trade surplus is expected to be higher at RM85.6 billion or 7.9% of GDP in 2014 (2013: RM70.7 billion; 7.2%).

Furthermore, gross exports rebounded by 10.7% to RM441.3 billion during the first seven months of 2014 (January - July 2013: -2.8%; RM398.5 billion), with manufactured and mining exports rising at a double digit pace of 11.4% and 12.5%. Shipment of agriculture products grew at a slower pace of 2.7%, primarily due to lower receipts of crude rubber (-24.6%) while export growth of other commodities remained steady. Consequently, exports of manufactured and mining products are expected to grow 6.1% and 6.4% in 2014 (2013: 5.1%; 3.3%). Meanwhile, agriculture exports are expected to rebound sharply by 4.5% in 2014 (2013: -14.4%) despite moderating commodity prices. Malaysia's top 3 trading partners are China, Singapore, and Japan. 

Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption. Therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2009, the Subject is a Private Limited company, focusing on trading of garment, leather goods, stockings, fabric and textiles. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. With an issued and paid up capital of MYR 250,000 contributed by individual shareholders, the Subject may face difficulties in its attempt to further expand its business in the future. Thus, the Subject should put more efforts on its business to gain higher market share while competing aggressively in the market. 

Investigation revealed that the Subject concentrates only on the local market. This narrow market segment has placed the Subject at high business risk and limits its business expansion opportunities. Any adverse changes to the local economy might have a negative impact on the Subject's business performance.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. 

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 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. 

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. 

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)

CONCEPT LAB SDN. BHD.

 

Financial Year End

2014-04-30

2013-04-30

2012-04-30

2011-04-30

2010-04-30

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

18,204,675

11,028,477

9,749,942

10,638,379

5,926,018

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

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

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

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

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

Total Turnover

18,204,675

11,028,477

9,749,942

10,638,379

5,926,018

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

(53,059)

145,626

171,143

217,847

144,219

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

(53,059)

145,626

171,143

217,847

144,219

Taxation

(63,535)

(51,448)

(41,775)

(44,973)

(31,000)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

(116,594)

94,178

129,368

172,874

113,219

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

509,639

415,461

286,093

113,219

-

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

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

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

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

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

As restated

509,639

415,461

286,093

113,219

-

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

393,045

509,639

415,461

286,093

113,219

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

393,045

509,639

415,461

286,093

113,219

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

46,044

-

-

-

-

Hire purchase

23,202

5,400

-

-

-

Term loan / Borrowing

97,879

-

-

-

-

Others

4,443

-

-

-

-

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

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

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

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

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

171,568

5,400

-

-

-

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

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

-

-

-

DEPRECIATION (as per notes to P&L)

216,900

78,863

-

-

-

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

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

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

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

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

216,900

78,863

-

-

-

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

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

 

 

 

 

 

 

 

BALANCE SHEET

 

CONCEPT LAB SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

808,476

290,051

348,506

189,079

188,294

Investment properties

1,346,010

-

-

-

-

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

1,346,010

-

-

-

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

2,154,486

290,051

348,506

189,079

188,294

Trade debtors

2,480,281

2,209,992

-

-

-

Other debtors, deposits & prepayments

57,113

632,040

-

-

-

Short term deposits

650,000

-

-

-

-

Cash & bank balances

70,522

14,183

-

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

3,257,916

2,856,215

2,090,337

4,185,502

2,684,021

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

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

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

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

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

TOTAL ASSET

5,412,402

3,146,266

2,438,843

4,374,581

2,872,315

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

1,332,745

1,112,461

-

-

-

Other creditors & accruals

31,180

17,617

-

-

-

Hire purchase & lease creditors

88,471

40,008

-

-

-

Bank overdraft

284,891

-

-

-

-

Short term borrowings/Term loans

196,330

-

-

-

-

Other borrowings

300,000

-

-

-

-

Amounts owing to director

34,790

1,110,115

-

-

-

Provision for taxation

19,525

8,702

-

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

2,287,932

2,288,903

1,643,396

3,951,010

2,571,607

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

969,984

567,312

446,941

234,492

112,414

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

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

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

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

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

TOTAL NET ASSETS

3,124,470

857,363

795,447

423,571

300,708

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

250,000

250,000

250,000

100,000

100,000

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

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

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

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

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

TOTAL SHARE CAPITAL

250,000

250,000

250,000

100,000

100,000

Retained profit/(loss) carried forward

393,045

509,639

415,461

286,093

113,219

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

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

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

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

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

TOTAL RESERVES

393,045

509,639

415,461

286,093

113,219

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

643,045

759,639

665,461

386,093

213,219

Long term loans

2,001,363

-

-

-

-

Hire purchase creditors

464,870

89,978

-

-

-

Deferred taxation

15,192

7,746

-

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

2,481,425

97,724

129,986

37,478

87,489

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

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

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

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

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

3,124,470

857,363

795,447

423,571

300,708

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

CONCEPT LAB SDN. BHD.

 

TYPES OF FUNDS

Cash

720,522

14,183

-

-

-

Net Liquid Funds

435,631

14,183

-

-

-

Net Liquid Assets

969,984

567,312

446,941

234,492

112,414

Net Current Assets/(Liabilities)

969,984

567,312

446,941

234,492

112,414

Net Tangible Assets

3,124,470

857,363

795,447

423,571

300,708

Net Monetary Assets

(1,511,441)

469,588

316,955

197,014

24,925

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

118,509

151,026

-

-

-

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

335,409

229,889

-

-

-

BALANCE SHEET ITEMS

Total Borrowings

3,335,925

129,986

-

-

-

Total Liabilities

4,769,357

2,386,627

1,773,382

3,988,488

2,659,096

Total Assets

5,412,402

3,146,266

2,438,843

4,374,581

2,872,315

Net Assets

3,124,470

857,363

795,447

423,571

300,708

Net Assets Backing

643,045

759,639

665,461

386,093

213,219

Shareholders' Funds

643,045

759,639

665,461

386,093

213,219

Total Share Capital

250,000

250,000

250,000

100,000

100,000

Total Reserves

393,045

509,639

415,461

286,093

113,219

LIQUIDITY (Times)

Cash Ratio

0.31

0.01

-

-

-

Liquid Ratio

1.42

1.25

-

-

-

Current Ratio

1.42

1.25

1.27

1.06

1.04

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

-

-

-

Debtors Ratio

50

73

-

-

-

Creditors Ratio

27

37

-

-

-

SOLVENCY RATIOS (Times)

Gearing Ratio

5.19

0.17

-

-

-

Liabilities Ratio

7.42

3.14

2.66

10.33

12.47

Times Interest Earned Ratio

0.69

27.97

-

-

-

Assets Backing Ratio

12.50

3.43

3.18

4.24

3.01

PERFORMANCE RATIO (%)

Operating Profit Margin

(0.29)

1.32

1.76

2.05

2.43

Net Profit Margin

(0.64)

0.85

1.33

1.63

1.91

Return On Net Assets

3.79

17.62

21.52

51.43

47.96

Return On Capital Employed

3.39

16.83

21.52

51.43

47.96

Return On Shareholders' Funds/Equity

(18.13)

12.40

19.44

44.78

53.10

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.66.80

UK Pound

1

Rs.100.49

Euro

1

Rs.72.52.

MYR

1

Rs.15.64

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.