MIRA INFORM REPORT

 

 

Report No. :

356622

Report Date :

29.12.2015

 

IDENTIFICATION DETAILS

 

Name :

HEVEALAND SDN. BHD.

 

 

Registered Office :

69-1a, Og Business Park, Taman Datuk Tan Yew Lai, Jalan Datun Tan Yew Lai, 58200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

10.12.2009

 

 

Com. Reg. No.:

882229-U

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of natural and synthetic rubber.

 

 

No. of Employee :

10 [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 :

Small company

 

 

Payment Behaviour :

No complaints

 

 

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.

:

882229-U

COMPANY NAME

:

HEVEALAND SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

10/12/2009

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

69-1A, OG BUSINESS PARK, TAMAN DATUK TAN YEW LAI, JALAN DATUN TAN YEW LAI, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

A-12-2, TOWER A, MENARA UOA BANGSAR 5, JALAN BANGSAR UTAMA 1, LEVEL 12, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-22848815

FAX.NO.

:

03-22828817

CONTACT PERSON

:

SUBRAMANIAM A/L VELLAYUTHAM ( DIRECTOR )

INDUSTRY CODE

:

46201

PRINCIPAL ACTIVITY

:

TRADING OF NATURAL AND SYNTHETIC RUBBER

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 500,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH AND 400,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 58,528,484 [2014]

NET WORTH

:

MYR 1,193,341 [2014]

STAFF STRENGTH

:

10 [2015]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

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

The Subject is principally engaged in the (as a / as an) trading of natural and synthetic rubber.

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

 

Former Address(es)

Address

As At Date

67 & 69, JALAN 7/132, GASING INDAH, 59300, MALAYSIA, MALAYSIA

01/03/2010

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/06/2015

MYR 500,000.00

MYR 500,000.00

10/02/2010

MYR 100,000.00

MYR 100,000.00

10/12/2009

MYR 100,000.00

MYR 1,000.00

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. SUBRAMANIAM A/L VELLAYUTHAM +

28, JALAN LIMAU KASTURI, BANGSAR PARK, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

470522-05-5065 4000160

225,000.00

45.00

MS. PATHMA DEVI A/P K. CUMARAVELU +

28, JALAN LIMAU KASTURI, BANGSAR PARK, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

470810-10-5338 0662119

225,000.00

45.00

MR. SIMON @ FLAM FERNANDEZ +

49-3-12, BANGSAR PUTRI, JALAN MEDAN SERAI, BUKIT BANDARAYA, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

520524-10-5743

50,000.00

10.00

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

------

500,000.00

100.00

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. SIMON @ FLAM FERNANDEZ

Address

:

49-3-12, BANGSAR PUTRI, JALAN MEDAN SERAI, BUKIT BANDARAYA, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

520524-10-5743

Date of Birth

:

24/05/1952

Nationality

:

MALAYSIAN

Date of Appointment

:

10/02/2010

 

DIRECTOR 2

 

Name Of Subject

:

MS. PATHMA DEVI A/P K. CUMARAVELU

Address

:

28, JALAN LIMAU KASTURI, BANGSAR PARK, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

0662119

New IC No

:

470810-10-5338

Date of Birth

:

10/08/1947

Nationality

:

MALAYSIAN

Date of Appointment

:

10/12/2009

 

DIRECTOR 3

 

Name Of Subject

:

MR. SUBRAMANIAM A/L VELLAYUTHAM

Address

:

28, JALAN LIMAU KASTURI, BANGSAR PARK, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

4000160

New IC No

:

470522-05-5065

Date of Birth

:

22/05/1947

Nationality

:

MALAYSIAN

Date of Appointment

:

10/12/2009



MANAGEMENT

 

 

 

1)

Name of Subject

:

SUBRAMANIAM A/L VELLAYUTHAM

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

SELVA & ASSOCIATES

Auditor' Address

:

SUITE 301, BLOCK A4, LEISURE COMMERCIAL SQUARE, 9, JALAN PJS 8/9, 3RD FLOOR, 46150 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. KAMALA DEVI A/P RAJA GOPAL

IC / PP No

:

A2191293

New IC No

:

720614-05-5272

Address

:

39, JALAN SP 9/4, BANDAR SAUJANA PUCHONG, 43300 BALAKONG, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

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

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

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

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA

EUROPE

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

NATURAL AND SYNTHETIC RUBBER

 

Total Number of Employees:

YEAR

2015

2012

GROUP

N/A

N/A

COMPANY

10

5

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of natural and synthetic rubber.

The Subject sells rubber.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-22848815

Match

:

N/A

Address Provided by Client

:

A-12-2, TOWER A, MENARA UOA BANGSAR 5, JALAN BANGSAR UTAMA 1, LEVEL 12,59000,KUALA LUMPUR,WILAYAH PERSEKUTUAN.

Current Address

:

A-12-2, TOWER A, MENARA UOA BANGSAR 5, JALAN BANGSAR UTAMA 1, LEVEL 12, 59000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 22nd December 2015 we contacted one of the staff from the Subject and he provided some information.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Decreased

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

Return on Shareholder Funds

:

Acceptable

[

11.24%

]

Return on Net Assets

:

Acceptable

[

27.66%

]

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Nil

[

0 Days

]

Debtor Ratio

:

Favourable

[

23 Days

]

Creditors Ratio

:

Favourable

[

12 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

[

1.32 Times

]

Current Ratio

:

Unfavourable

[

1.32 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

[

2.10 Times

]

Gearing Ratio

:

Favourable

[

0.00 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 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 the efficient control of its operating costs, the Subject was able to remain profitable despite lower turnover achieved during the year. 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 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 : FAIR

 

 

 

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

49,203

-

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

46201 : Wholesale of rubber

INDUSTRY :

TRADING

According to Business Monitor International, the retail market will begin to bounce back in 2016 after a rough year during 2015. The short-term outlook is bearish and it will take a number of years to alter spending habits away from saving and paying down high levels of debt. The local retail sector is expected to register subdued year-on-year growth in the first quarter of 2016, mainly due to the implementation of the goods and services tax (GST) and cautious consumer sentiment.

Growth in the first quarter of 2016 will be boosted by Chinese New Year. However, everything will be subjected to GST. In first quarter of 2015, retail sector grew 4.6% due to rush in purchases from customers that were looking to avoid GST, which was implemented on April 1 2015. In 2016, the wholesale and retail trade as well as food, beverage and accommodation sectors are expected to increase by 6.5% and 6%. The wholesale and retail trade sector continued to grow by 7.9% during the first half of 2015 supported by higher consumer spending, particularly prior to the implementation of GST.

Moreover, the wholesale segment expanded further to 9.2% supported by wholesale of petrol, diesel and construction materials as well as wholesale of agricultural raw materials which include rubber, palm oil and livestock. The retail segment increased by 7.4% backed by sales at specialized and non-specialized stores of household, information and communication equipment, as well as food, beverage and tobacco.

In addition, the 1Malaysia Mega Sales carnival, aimed at promoting the country as a preferred shopping destination and the expansion of retail outlets such as hypermarkets, large-scale superstores as well as departmental stores contributed to the segment’s growth. As at end-July 2015, there were 189 foreign owned hypermarkets, superstores and departmental stores operating nationwide. Meanwhile, the motor vehicle segment moderated to 4.8% due to slower sales of parts and accessories as well as new and used vehicles. In 2015, the wholesale and retail trade sector is expected to increase by 7.6% supported by steady domestic consumption. The food, beverage and accommodation sector expanded by 7% during the first half of 2015 on account of higher spending during the school holidays and festivities as well as tourism related activities.

Under budget 2016, a total of 4,215 brands of medicine and medical gases in the National Essential Medicines List (NEML) issued by the Ministry of Health and approved by the Minister of Finance and put up in measured doses or in the form of packaging for retail sale are subject to GST at zero rate. These include 321 chemical entities for treatment of over 30 diseases including heart disease, diabetes, hypertension, cancer, hepatitis and fertility treatment.

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 natural and synthetic rubber. 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. Presently, the issued and paid up capital of the Subject stands at MYR 500,000. We considered that the Subject's business position in the market is much dependent on the efforts of its directors.

Over the years, 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. Being a small company, the Subject's business operation is supported by 10 employees. 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 lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. 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. 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. Given a positive net worth standing at MYR 1,193,341, the Subject should be able to maintain its business in the near terms.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

Based on the above condition, we recommend credit be granted to the Subject normally.

 



PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2014-12-31

2013-12-31

2012-12-31

2011-12-31

2010-12-31

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

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

58,528,484

64,237,739

71,438,146

80,220,950

44,438,747

Other Income

134,625

80,373

-

-

2,008

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

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

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

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

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

Total Turnover

58,663,109

64,318,112

71,438,146

80,220,950

44,440,755

Costs of Goods Sold

(57,391,380)

(63,142,762)

(70,329,493)

(78,974,061)

(43,878,672)

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

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

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

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

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

Gross Profit

1,271,729

1,175,350

1,108,653

1,246,889

562,083

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

172,948

58,408

165,477

470,497

14,547

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

172,948

58,408

165,477

470,497

14,547

Taxation

(38,759)

(16,074)

(36,925)

(94,009)

(2,769)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

134,189

42,334

128,552

376,488

11,778

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

559,152

516,818

388,266

11,778

-

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

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

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

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

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

As restated

559,152

516,818

388,266

11,778

-

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

693,341

559,152

516,818

388,266

11,778

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

693,341

559,152

516,818

388,266

11,778

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Others

157,186

142,249

128,660

51,002

46,297

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

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

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

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

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

157,186

142,249

128,660

51,002

46,297

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

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

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

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

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

DEPRECIATION (as per notes to P&L)

43,646

43,646

43,646

43,646

70,232

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

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

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

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

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

43,646

43,646

43,646

43,646

70,232

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

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

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

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

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

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

30,517

74,163

117,809

161,455

52,482

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

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

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

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

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

TOTAL LONG TERM ASSETS

30,517

74,163

117,809

161,455

52,482

Trade debtors

3,764,385

3,206,658

5,043,750

10,018,397

1,442,704

Other debtors, deposits & prepayments

617,889

101,035

99,756

20,831

20,831

Cash & bank balances

410,479

736,801

31,695

235,140

108,674

Others

39,042

37,001

5,075

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

4,831,795

4,081,495

5,180,276

10,274,368

1,572,209

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

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

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

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

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

TOTAL ASSET

4,862,312

4,155,658

5,298,085

10,435,823

1,624,691

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

1,898,710

1,450,491

3,056,687

8,349,555

258,698

Other creditors & accruals

306,662

182,416

90,981

285,526

91,023

Amounts owing to director

1,463,599

1,463,599

1,133,599

905,467

760,423

Provision for taxation

-

-

-

7,009

2,769

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

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

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

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

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

TOTAL CURRENT LIABILITIES

3,668,971

3,096,506

4,281,267

9,547,557

1,112,913

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,162,824

984,989

899,009

726,811

459,296

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

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

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

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

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

TOTAL NET ASSETS

1,193,341

1,059,152

1,016,818

888,266

511,778

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

500,000

500,000

500,000

500,000

500,000

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

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

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

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

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

TOTAL SHARE CAPITAL

500,000

500,000

500,000

500,000

500,000

Retained profit/(loss) carried forward

693,341

559,152

516,818

388,266

11,778

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

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

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

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

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

TOTAL RESERVES

693,341

559,152

516,818

388,266

11,778

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,193,341

1,059,152

1,016,818

888,266

511,778

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

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

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

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

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

1,193,341

1,059,152

1,016,818

888,266

511,778

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

410,479

736,801

31,695

235,140

108,674

Net Liquid Funds

410,479

736,801

31,695

235,140

108,674

Net Liquid Assets

1,162,824

984,989

899,009

726,811

459,296

Net Current Assets/(Liabilities)

1,162,824

984,989

899,009

726,811

459,296

Net Tangible Assets

1,193,341

1,059,152

1,016,818

888,266

511,778

Net Monetary Assets

1,162,824

984,989

899,009

726,811

459,296

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

330,134

200,657

294,137

521,499

60,844

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

373,780

244,303

337,783

565,145

131,076

BALANCE SHEET ITEMS

Total Borrowings

0

0

0

0

0

Total Liabilities

3,668,971

3,096,506

4,281,267

9,547,557

1,112,913

Total Assets

4,862,312

4,155,658

5,298,085

10,435,823

1,624,691

Net Assets

1,193,341

1,059,152

1,016,818

888,266

511,778

Net Assets Backing

1,193,341

1,059,152

1,016,818

888,266

511,778

Shareholders' Funds

1,193,341

1,059,152

1,016,818

888,266

511,778

Total Share Capital

500,000

500,000

500,000

500,000

500,000

Total Reserves

693,341

559,152

516,818

388,266

11,778

LIQUIDITY (Times)

Cash Ratio

0.11

0.24

0.01

0.02

0.10

Liquid Ratio

1.32

1.32

1.21

1.08

1.41

Current Ratio

1.32

1.32

1.21

1.08

1.41

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

0

0

0

Debtors Ratio

23

18

26

46

12

Creditors Ratio

12

8

16

39

2

SOLVENCY RATIOS (Times)

Gearing Ratio

0

0

0

0

0

Liabilities Ratio

3.07

2.92

4.21

10.75

2.17

Times Interest Earned Ratio

2.10

1.41

2.29

10.23

1.31

Assets Backing Ratio

2.39

2.12

2.03

1.78

1.02

PERFORMANCE RATIO (%)

Operating Profit Margin

0.30

0.09

0.23

0.59

0.03

Net Profit Margin

0.23

0.07

0.18

0.47

0.03

Return On Net Assets

27.66

18.95

28.93

58.71

11.89

Return On Capital Employed

27.66

18.95

28.93

58.71

11.89

Return On Shareholders' Funds/Equity

11.24

4.00

12.64

42.38

2.30

Dividend Pay Out Ratio (Times)

0

0

0

0

0

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.14

UK Pound

1

Rs.98.69

Euro

1

Rs.72.55

MYR

1

Rs.15.44

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.