|
Report No. : |
307123 |
|
Report Date : |
13.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
RECRON ( |
|
|
|
|
Formerly Known As : |
REAL AIM DEVELOPMENT SDN BHD |
|
|
|
|
Registered Office : |
Suite 7.01 - 7.03, Wisma Goldhill, 67 Jalan Raja Chulan, Level 7, 50200 Kuala Lumpur, Wilayah Persekutuan |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
20.07.2007 |
|
|
|
|
Com. Reg. No.: |
781769-K |
|
|
|
|
Legal Form : |
Private Limited (Limited by Share) |
|
|
|
|
Line of Business : |
Manufacturing of Textiles and Fibre Products. |
|
|
|
|
No. of Employees : |
7500 [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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Malaysia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
MALAYSIA - ECONOMIC
OVERVIEW
Malaysia, a middle-income
country, has transformed itself since the 1970s from a producer of raw
materials into an emerging multi-sector economy. Under current Prime Minister NAJIB,
Malaysia is attempting to achieve high-income status by 2020 and to move
farther up the value-added production chain by attracting investments in
Islamic finance, high technology industries, biotechnology, and services.
NAJIB's Economic Transformation Program (ETP) is a series of projects and
policy measures intended to accelerate the country's economic growth. The
government has also taken steps to liberalize some services sub-sectors. The
NAJIB administration also is continuing efforts to boost domestic demand and
reduce the economy's dependence on exports. Nevertheless, exports -
particularly of electronics, oil and gas, palm oil and rubber - remain a
significant driver of the economy. As an oil and gas exporter, Malaysia has
profited from higher world energy prices, although the rising cost of domestic
gasoline and diesel fuel, combined with sustained budget deficits, has forced
Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions
in energy and sugar subsidies and the announcement of the 2015 implementation
of a 6% goods and services tax. The government is also trying to lessen its
dependence on state oil producer Petronas. The oil and gas sector supplies
about 32% of government revenue in 2013. Bank Negara Malaysia (central bank)
maintains healthy foreign exchange reserves, and a well-developed regulatory
regime has limited Malaysia's exposure to riskier financial instruments and the
global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall
in commodity prices or a general slowdown in global economic activity because
exports are a major component of GDP. In order to attract increased investment,
NAJIB earlier raised possible revisions to the special economic and social
preferences accorded to ethnic Malays under the New Economic Policy of 1970,
but retreated in 2013 after he encountered significant opposition from Malay
nationalists and other vested interests. In September 2013 NAJIB launched the
new Bumiputra Economic Empowerment Program (BEEP), policies that favor and
advance the economic condition of ethnic Malays.
|
Source
: CIA |
|
REGISTRATION NO. |
: |
781769-K |
||||
|
COMPANY NAME |
: |
RECRON (MALAYSIA) SDN. BHD. |
||||
|
FORMER NAME |
: |
REAL AIM DEVELOPMENT SDN BHD (20/08/2007) |
||||
|
INCORPORATION DATE |
: |
20/07/2007 |
||||
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|
|
|
||||
|
|
|
|
||||
|
COMPANY STATUS |
: |
EXIST |
||||
|
LEGAL FORM |
: |
PRIVATE LIMITED (LIMITED BY SHARE) |
||||
|
LISTED STATUS |
: |
NO |
||||
|
|
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|
||||
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|
|
|
||||
|
REGISTERED ADDRESS |
: |
SUITE 7.01 - 7.03, WISMA GOLDHILL, 67 JALAN RAJA CHULAN, LEVEL 7,
50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
||||
|
BUSINESS ADDRESS |
: |
WISMA GOLDHILL, 67, JALAN RAJA CHULAN, LEVEL 7, LEVEL 8 & LEVEL 9,
50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
||||
|
TEL.NO. |
: |
03-20316000 |
||||
|
FAX.NO. |
: |
03-20315000 |
||||
|
WEB SITE |
: |
WWW.RECRONMALAYSIA.COM |
||||
|
CONTACT PERSON |
: |
KULKARNI VINAY RAMCHANDRA ( CEO ) |
||||
|
|
|
|
||||
|
INDUSTRY CODE |
: |
13990 |
||||
|
PRINCIPAL ACTIVITY |
: |
MANUFACTURING OF TEXTILES AND FIBRE
PRODUCTS |
||||
|
AUTHORISED CAPITAL |
: |
MYR 350,000,000.00 DIVIDED INTO |
||||
|
ISSUED AND PAID UP CAPITAL |
: |
MYR 113,187,500.00 DIVIDED INTO |
||||
|
|
|
|
||||
|
SALES |
: |
MYR 3,561,050,000 [2013] |
||||
|
NET WORTH |
: |
MYR 816,860,000 [2013] |
||||
|
M1000 OVERALL RANKING |
: |
135[2011] |
||||
|
M1000 INDUSTRY RANKING |
: |
1[2011] |
||||
|
|
|
|
||||
|
STAFF STRENGTH |
: |
7500 [2015] |
||||
|
||||||
|
LITIGATION |
: |
CLEAR |
||||
|
DEFAULTER CHECK |
: |
CLEAR |
||||
|
FINANCIAL CONDITION |
: |
POOR |
||||
|
PAYMENT |
: |
GOOD |
||||
|
MANAGEMENT CAPABILITY |
: |
AVERAGE |
||||
|
|
|
|
||||
|
COMMERCIAL RISK |
: |
LOW |
||||
|
CURRENCY EXPOSURE |
: |
MODERATE |
||||
|
GENERAL REPUTATION |
: |
SATISFACTORY |
||||
|
INDUSTRY OUTLOOK |
: |
AVERAGE GROWTH |
||||
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
of textiles and fibre products.
The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).
|
According to the Malaysia 1000 publication, the Subject's ranking are
as follows: |
|||
|
|
|
|
|
|
YEAR |
2011 |
|
|
|
OVERALL RANKING |
135 |
|
|
|
INDUSTRY RANKING |
1 |
|
|
Share Capital History
|
Date |
Authorised Shared Capital |
Issue & Paid Up Capital |
|
15/11/2013 |
MYR 350,000,000.00 |
MYR 113,187,500.00 |
|
24/09/2013 |
MYR 200,000,000.00 |
MYR 113,187,500.00 |
|
20/09/2013 |
MYR 200,000,000.00 |
MYR 2,500,000.00 |
|
22/03/2008 |
MYR 50,000,000.00 |
MYR 2,500,000.00 |
|
28/08/2007 |
MYR 100,000.00 |
MYR 100,000.00 |
|
20/07/2007 |
MYR 100,000.00 |
MYR 2.00 |
The major shareholder(s) of the Subject are shown as follows :
|
Name |
Address |
IC/PP/Loc No |
Shareholding |
(%) |
|
RELIANCE GLOBAL BUSINESS B.V. |
CLAUDE DEBUSSYLAAN 18, 1082 MD AMSTERDAM, NETHERLANDS |
XLZ00213422 |
113,187,500.00 |
100.00 |
|
|
|
|
--------------- |
------ |
|
|
|
|
113,187,500.00 |
100.00 |
|
|
|
|
============ |
===== |
+ Also Director
DIRECTOR 1
|
Name Of Subject |
: |
UDESHI RAJEN DWARKADAS |
|
Address |
: |
502 SHANTI APARTMENTS, 98 WALKESHWAR ROAD, BOMBAY - 400 006, INDIA,
INDIA. |
|
IC / PP No |
: |
Z21705096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality |
: |
INDIAN |
|
Date of Appointment |
: |
22/08/2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject |
: |
PATIL VASANT KRISHNAJI |
|
Address |
: |
PT 4309, JALAN TS 1/16, TAMAN SEMARAK, 71800 NILAI, NEGERI SEMBILAN,
MALAYSIA. |
|
IC / PP No |
: |
H6748797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of Appointment |
: |
10/04/2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject |
: |
KULKARNI VINAY RAMCHANDRA |
|
Address |
: |
N-8-1, SURIA STONOR CONDOMINIUM, 2, LORONG STONOR, 50450 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA. |
|
IC / PP No |
: |
501336910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality |
: |
BRITISH |
|
Date of Appointment |
: |
26/04/2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject |
: |
ANIL KUMAR RAJBANSHI |
|
Address |
: |
A-402, CHAITANYA TOWERS, APPASAHAB MARATHE, MARG, PRABHADEVI, MUMBAI-40002,
INDIA, INDIA. |
|
IC / PP No |
: |
Z1877333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality |
: |
INDIAN |
|
Date of Appointment |
: |
05/02/2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 5
|
Name Of Subject |
: |
PENDSE SHREE MUKUND |
|
Address |
: |
A-13-08, SUASANA SENTRAL CONDOMINIUM, JALAN STESEN SENTRAL 5, KL
SENTRAL, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
IC / PP No |
: |
G9958726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of Appointment |
: |
10/04/2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Name of Subject |
: |
KULKARNI VINAY RAMCHANDRA |
|
|
Position |
: |
CEO |
|
Auditor |
: |
PRICEWATERHOUSECOOPERS |
|
Auditor' Address |
: |
1 SENTRAL, JALAN TRAVERS, K.L. CENTRAL, P.O.BOX 10192, LEVEL 15, 50706
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
|
|
|
|
1) |
Company Secretary |
: |
MS. SHAHNIZA ANOM BINTI ELIAS |
|
|
IC / PP No |
: |
A1172646 |
|
|
New IC No |
: |
680929-01-5802 |
|
|
Address |
: |
26 JALAN UNGU U9/35, SUNWAY KAYANGAN, SEKSYEN U9, 40150 SHAH ALAM,
SELANGOR, MALAYSIA. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2) |
Company Secretary |
: |
MS. TIA HWEI PING |
|
|
|
|
|
|
|
New IC No |
: |
820813-10-5728 |
|
|
Address |
: |
118, JALAN SENTOSA 63, KAW 19, 41050 KLANG, SELANGOR, MALAYSIA. |
|
|
|
|
|
|
|
|
|
|
Banking relations are maintained principally with :
|
1) |
Name |
: |
ICICI BANK LTD |
|
|
|
|
|
|
Charge No |
Creation Date |
Charge Description |
Chargee Name |
Total Charge |
Status |
|
1 |
25/10/2010 |
DEBENTURE |
ICICI BANK LIMITED, SINGAPORE BRANCH |
USD 25,000,000.00 |
Unsatisfied |
|
2 |
25/10/2010 |
MEMORANDUM OF CHARGE OVER DEPOSITS |
ICICI BANK LIMITED, SINGAPORE BRANCH |
- |
Unsatisfied |
|
3 |
11/10/2011 |
THE CHARGE MADE BETWEEN THE COMPANY AND MALAYAN BANKING BERHAD |
MALAYAN BANKING BHD |
USD 30,000,000.00 |
Unsatisfied |
|
4 |
07/12/2012 |
THE CHARGE MADE BETWEEN THE COMPANY AND MALAYAN BANKING BERHAD |
MALAYAN BANKING BHD |
USD 10,625,000.00 |
Unsatisfied |
* 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.
* 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.
|
SOURCES OF RAW MATERIALS: |
||
|
Local |
: |
YES |
|
Overseas |
: |
YES |
|
Import Countries |
: |
ASIA |
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 |
[ |
|
] |
|
|
|
|
|
|
|
Local |
: |
YES |
|||
|
Domestic Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
YES |
|
|
|
|
Export Market |
: |
SOUTHEAST ASIA |
|||
|
Credit Term |
: |
30 - 90 DAYS |
|||
|
|
|
|
|
|
|
|
Payment Mode |
: |
CHEQUES |
|||
|
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|
Products manufactured |
: |
|
|
|
|
|
|
|
|
Ownership of premises |
: |
OWNED
|
|
Total Number of Employees: |
|
||||||||
|
YEAR |
2015 |
2014 |
2013 |
2012 |
2011 |
2010 |
|
|
|
|
|
|||||||||
|
GROUP |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
COMPANY |
7500 |
7,500 |
7,500 |
7,500 |
7,500 |
7,350 |
|
|
|
|
Branch |
: |
YES
|
|
|
No of Branches |
: |
2
|
|
|
|
|
|
|
|
Branch(es) |
: |
LOT 2322, TANGGA BATU INDUSTRIAL ESTATE, 76400 TANJONG KLING, MELAKA,
MALAYSIA. Tel No: 06-3511190 Fax No: 06-3511176 PT 1886, 1891, 1892, 7927, 7928, KAWASAN PERINDUSTRIAN NILAI, 71800
NILAI, NEGERI SEMBILAN, MALAYSIA. Tel No: 06-7992855 Fax No: 06-7992872
|
Other Information:
The Subject is principally engaged in the (as a / as an) manufacturing of textiles
and fibre products.
The Subject is one of largest intergrated polyester and Textile Company with
world class manufacturing facilities at Nilai and Melaka in Malaysia.
The Subject's products ranges are as follows:
1) Polyester Polymer Production
2) Nylon Polymer Production
3) Polyester Staple Fibre
4) Spun Yarns
5) Polyester Filament Yarns
6) PET bottle grade Resins
7) Fabrics
The Subject produces annually over 500,000 tons of Polyester Products, 36,000
tons of Nylon Products and 500 million meters of Fabrics.
The products are used for making ready made garments, home furnishings, curtain
materials and others.
The Subject's vertically integrated production units have state of art machines
and equipment. Its biggest asset is its highly skilled and dedicated work
force.
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
Latest fresh investigations carried out on the Subject indicated that :
|
Telephone Number Provided By Client |
: |
0320316000 |
|
Current Telephone Number |
: |
03-20316000 |
|
Match |
: |
YES |
|
|
|
|
|
Address Provided by Client |
: |
WISMA GOLDHILL, 67, JALAN RAJA CHULAN, LEVEL 7, LEVEL 8 & LEVEL 9,50200,KUALA
LUMPUR,WILAYAH PERSEKUTUAN. |
|
Current Address |
: |
WISMA GOLDHILL, 67, JALAN RAJA CHULAN, LEVEL 7, LEVEL 8 & LEVEL 9,
50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
Match |
: |
YES |
|
|
|
|
|
Latest Financial Accounts |
: |
YES |
Other Investigations
We contacted we contacted one of the staff from the Subject and she provided
some information.
|
Profitability |
|
|
|
|
|
|
|
Turnover |
: |
Erratic |
[ |
2009 - 2013 |
] |
|
|
Profit/(Loss) Before Tax |
: |
Increased |
[ |
2009 - 2013 |
] |
|
|
Return on Shareholder Funds |
: |
Unfavourable |
[ |
(10.42%) |
] |
|
|
Return on Net Assets |
: |
Unfavourable |
[ |
(10.26%) |
] |
|
|
|
|
|
|
|
|
|
|
The fluctuating turnover reflects the fierce competition among the
existing and new market players.Higher losses before tax during the year
could be due to the higher operating costs incurred. The Subject's
unfavourable returns on shareholders' funds indicate the management's
inefficiency in utilising its assets to generate returns. |
||||||
|
|
|
|
|
|
|
|
|
Working Capital Control |
|
|
|
|
|
|
|
Stock Ratio |
: |
Acceptable |
[ |
56 Days |
] |
|
|
Debtor Ratio |
: |
Favourable |
[ |
12 Days |
] |
|
|
Creditors Ratio |
: |
Favourable |
[ |
11 Days |
] |
|
|
|
|
|
|
|
|
|
|
The Subject kept adequate stocks to meet its normal business
transactions without incurring excessive storage costs. The favourable debtors'
days could be due to the good credit control measures implemented by the
Subject. The Subject had a favourable creditors' ratio where the Subject
could be taking advantage of the cash discounts and also wanting to maintain
goodwill with its creditors. |
||||||
|
|
|
|
|
|
|
|
|
Liquidity |
|
|
|
|
|
|
|
Liquid Ratio |
: |
Unfavourable |
[ |
0.19 Times |
] |
|
|
Current Ratio |
: |
Unfavourable |
[ |
0.72 Times |
] |
|
|
|
|
|
|
|
|
|
|
A low liquid ratio means that the Subject may be facing working capital
deficiency. If the Subject cannot obtain additional financing or injection of
fresh capital, it may face difficulties in meeting its short term
obligations. |
||||||
|
|
|
|
|
|
|
|
|
Solvency |
|
|
|
|
|
|
|
Interest Cover |
: |
Unfavourable |
[ |
(6.38 Times) |
] |
|
|
Gearing Ratio |
: |
Acceptable |
[ |
0.89 Times |
] |
|
|
|
|
|
|
|
|
|
|
The Subject incurred losses in the year. It did not generate
sufficient income to service its interest. If the situation does not
improve, the Subject may be vulnerable to default in servicing the interest.
The Subject's gearing was slightly high. The Subject is utilising the
leverage concept to fund its expansion. However, the high gearing has added
financial risks to the Subject. It will be more vulnerable in times of
economy downturn. |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment : |
|
|
|
|
|
|
|
The Subject's losses increased but its turnover showed a
fluctuating trend. This indicate the Subject was slowly losing its market
share due to its competitors. Due to its weak liquidity position, the Subject
will be faced with problems in meeting all its short term obligations if no
short term loan is obtained or additional capital injected into the Subject.
The Subject's interest cover was negative, indicating that it did not
generate sufficient income to service its interest. If its result does not
show impressive improvements or succeed obtaining short term financing or
capital injection, it may not be able to service its interest and repay the
loans. The Subject's gearing was slightly high and its financial risk was
also high. If no plans are made to reduce its gearing, the Subject's
performance may deteriorate in the coming year. |
||||||
|
|
|
|
|
|
|
|
|
Overall financial condition of the Subject : POOR |
||||||
|
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 |
3.3 |
4.0 |
|
Unemployment Rate |
3.3 |
3.2 |
3.0 |
3.0 |
3.0 |
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion ) |
415 |
427 |
- |
417 |
- |
|
Average Risk-Weighted Capital Adequacy Ratio ( % ) |
3.50 |
2.20 |
- |
- |
- |
|
Average 3 Months of Non-performing Loans ( % ) |
14.80 |
14.70 |
- |
- |
- |
|
Average Base Lending Rate ( % ) |
6.60 |
6.53 |
6.53 |
- |
- |
|
Business Loans Disbursed( % ) |
15.3 |
32.2 |
- |
- |
- |
|
Foreign Investment ( MYR Million ) |
23,546.1 |
26,230.4 |
38,238.0 |
- |
- |
|
Consumer Loans ( % ) |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
Registration of New Companies ( No. ) |
45,455 |
45,441 |
46,321 |
- |
- |
|
Registration of New Companies ( % ) |
3.0 |
(0.0) |
1.9 |
- |
- |
|
Liquidation of Companies ( No. ) |
132,485 |
17,092 |
26,430 |
- |
- |
|
Liquidation of Companies ( % ) |
417.8 |
(87.1) |
54.6 |
- |
- |
|
|
|
|
|
|
|
|
Registration of New Business ( No. ) |
284,598 |
324,761 |
329,895 |
- |
- |
|
Registration of New Business ( % ) |
5.0 |
14.0 |
2.0 |
- |
- |
|
Business Dissolved ( No. ) |
20,121 |
20,380 |
18,161 |
- |
- |
|
Business Dissolved ( % ) |
1.9 |
1.3 |
(10.9) |
- |
- |
|
|
|
|
|
|
|
|
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 |
- |
- |
|
|
|
|
|
|
|
|
Credit Cards Spending ( % ) |
15.6 |
12.6 |
- |
- |
- |
|
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) |
- |
- |
- |
- |
|
Other Mining |
- |
- |
- |
- |
- |
|
Industry Non-performing Loans ( MYR Million ) |
46.5 |
- |
- |
- |
- |
|
% of Industry Non-performing Loans |
0.1 |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
Manufacturing # |
4.7 |
4.8 |
3.4 |
6.6 |
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 |
- |
- |
|
Plastic Products |
3.8 |
- |
- |
- |
- |
|
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 |
- |
- |
- |
- |
|
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 |
|||||
|
MSIC CODE |
|
|
13990 : Manufacture of other textiles n.e.c. |
|
|
|
|
|
INDUSTRY : |
MANUFACTURING |
|
|
|
|
|
|
|
The manufacturing sector is expected to grow by 5.5% in 2015. It will
be bolstered by strong domestic and export-oriented industries in line with
growing investment activities and favorable external demand. Moreover, in
2014, the manufacturing sectors have spearheading growth. The manufacturing
sector is estimated to grow at a faster pace in 2014 on higher exports of
electronics and electrical (E&E) products as external demand improves. |
|
|
|
|
|
The manufacturing sector expanded strongly during the first half of
2014, the highest growth in three years, spurred by higher global
semiconductor sales. Value-added of the manufacturing sector expanded 7.1%
during the first half of 2014. Production of the sector rose 6.6% in the
first seven months of 2014 supported by resilient domestic demand and
recovery in the external sector during the first seven months of the years.
The sales value of manufactured products rebounded by 7.7% in the first seven
months of 2014. The strong performance of the sector was on account of higher
output at 9.4% from the domestic-oriented industries, particularly transport
equipment, food and beverage. |
|
|
|
|
|
The manufacturing sector continued to attract domestic and foreign investment
with investment approved by Malaysian Investment Development Authority (MIDA)
totaling RM47.4 billion during the first six months of 2014, mainly from
Japan, China and Germany. Meanwhile, the capacity utilization rate remained
steady at 80.4% during the second quarter of 2014 while average wage per
employee and productivity improved to RM2,772 per month and 5.9%,
respectively during the first seven months of 2014. Boosted by favorable
domestic economic activity and recovery in the external sector, the
manufacturing sector is expected to record a better performance with growth
of 6.4% in 2014. |
|
|
|
|
|
In the meantime, production of wood products rebounded by 5.1% largely
supported by higher output in the saw-milling and planning of wood segment at
25.9% during the first seven months of 2014. The positive performance was
attributed to vibrant residential and commercial construction activities
which contributed to increased use of timber frame and glued laminated timber
for cost savings compared to the use of concrete and steel. Increased demand
from major export destination such as the US, Japan and Australia for
Malaysian made furniture contributed to the higher output, particularly
wooden and cane furniture which rebounded by 2.2%. |
|
|
|
|
|
Production of rubber products contracted 0.3% in the first seven
months of 2014 on account of slower demand for rubber gloves and rubber
tyres. The decline in rubber tyres for vehicles was due to the weaker
external demand from the automotive industry, particularly from China. Output
of other rubber products contracted 3.8% following the product shift from
rubber-based to plastics, silicones and metal alloys in the manufacture of
medical devices. |
|
|
|
|
|
Besides, exports of manufactured products are expected to grow 6.1% in
2014 boosted by the growing demand from advanced economies. However, during
the first seven months of 2014, manufactured exports surged 11.4%. The robust
growth was buoyed by strengthening demand in the US and EU, reflecting
significant exposure of Malaysian exports to the economic performance in the
advance economies. The strength in export was broad-based with robust growth
in both E&E and non- E&E subsectors. |
|
|
|
|
|
Under budget 2015, the Government will provide incentive in the form of
capital allowance on automation expenditure to encourage automation in the
manufacturing sector, which may help in the manufacturing sector. |
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth |
|
|
Incorporated in 2007, the Subject is a
Private Limited company, focusing on manufacturing of textiles and fibre
products. 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. The Subject is a large entity with strong capital position of MYR
113,187,500. We are confident with the Subject's business and its future
growth prospect. Having strong support from its holding company has enabled
the Subject to remain competitive despite the challenging business
environment. |
|
|
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL
REPORTING STANDARDS(FRS) |
|
RECRON (MALAYSIA) SDN. BHD. |
|
Financial Year End |
2013-12-31 |
2012-12-31 |
2011-12-31 |
2010-12-31 |
2009-12-31 |
|
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 |
3,561,050,000 |
3,106,020,000 |
3,807,050,000 |
3,192,020,000 |
2,888,960,000 |
|
Other Income |
56,170,000 |
1,260,000 |
5,430,000 |
88,430,000 |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
Total Turnover |
3,617,220,000 |
3,107,280,000 |
3,812,480,000 |
3,280,450,000 |
2,888,960,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS |
(130,320,000) |
(115,700,000) |
44,290,000 |
144,620,000 |
11,710,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT/(LOSS) BEFORE TAXATION |
(130,320,000) |
(115,700,000) |
44,290,000 |
144,620,000 |
11,710,000 |
|
Taxation |
45,210,000 |
47,940,000 |
(8,250,000) |
(21,810,000) |
4,700,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT/(LOSS) AFTER TAXATION |
(85,110,000) |
(67,760,000) |
36,040,000 |
122,810,000 |
16,410,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD |
|
|
|
|
|
|
As previously reported |
153,200,000 |
220,960,000 |
184,920,000 |
62,110,000 |
45,700,000 |
|
Prior year adjustment |
230,000 |
- |
- |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
As restated |
153,430,000 |
220,960,000 |
184,920,000 |
62,110,000 |
45,700,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
68,320,000 |
153,200,000 |
220,960,000 |
184,920,000 |
62,110,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
68,320,000 |
153,200,000 |
220,960,000 |
184,920,000 |
62,110,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L) |
|
|
|
|
|
|
Bank overdraft |
10,920,000 |
10,570,000 |
8,260,000 |
11,160,000 |
11,410,000 |
|
Term loan / Borrowing |
6,750,000 |
8,270,000 |
8,130,000 |
9,020,000 |
19,910,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
17,670,000 |
18,840,000 |
16,390,000 |
20,180,000 |
31,320,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
RECRON (MALAYSIA) SDN. BHD. |
|
ASSETS EMPLOYED: |
|
|
|
|
|
|
FIXED ASSETS |
1,389,860,000 |
1,478,190,000 |
1,547,530,000 |
1,481,940,000 |
1,579,120,000 |
|
|
|
|
|
|
|
|
LONG TERM INVESTMENTS/OTHER ASSETS |
|
|
|
|
|
|
Subsidiary companies |
330,000 |
- |
- |
- |
- |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS |
330,000 |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL LONG TERM ASSETS |
1,390,190,000 |
1,478,190,000 |
1,547,530,000 |
1,481,940,000 |
1,579,120,000 |
|
|
|
|
|
|
|
|
Stocks |
546,950,000 |
381,210,000 |
465,570,000 |
452,260,000 |
449,240,000 |
|
Trade debtors |
116,790,000 |
78,470,000 |
136,750,000 |
136,800,000 |
142,430,000 |
|
Other debtors, deposits & prepayments |
77,250,000 |
15,870,000 |
15,560,000 |
48,500,000 |
7,480,000 |
|
Short term deposits |
- |
3,820,000 |
3,970,000 |
3,870,000 |
- |
|
Cash & bank balances |
490,000 |
400,000 |
120,000 |
1,400,000 |
70,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL CURRENT ASSETS |
741,480,000 |
479,770,000 |
621,970,000 |
642,830,000 |
599,220,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL ASSET |
2,131,670,000 |
1,957,960,000 |
2,169,500,000 |
2,124,770,000 |
2,178,340,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Trade creditors |
103,060,000 |
140,930,000 |
117,000,000 |
132,460,000 |
111,700,000 |
|
Other creditors & accruals |
64,410,000 |
55,920,000 |
45,840,000 |
48,130,000 |
48,370,000 |
|
Bank overdraft |
222,550,000 |
204,910,000 |
183,460,000 |
128,540,000 |
235,080,000 |
|
Short term borrowings/Term loans |
98,440,000 |
91,750,000 |
95,310,000 |
661,610,000 |
654,000,000 |
|
Other borrowings |
123,230,000 |
121,090,000 |
103,950,000 |
100,000,000 |
165,000,000 |
|
Amounts owing to holding company |
171,100,000 |
7,830,000 |
- |
- |
- |
|
Amounts owing to related companies |
129,620,000 |
2,270,000 |
- |
- |
- |
|
Other liabilities |
121,320,000 |
97,220,000 |
117,320,000 |
6,450,000 |
15,300,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL CURRENT LIABILITIES |
1,033,730,000 |
721,920,000 |
662,880,000 |
1,077,190,000 |
1,229,450,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
NET CURRENT ASSETS/(LIABILITIES) |
(292,250,000) |
(242,150,000) |
(40,910,000) |
(434,360,000) |
(630,230,000) |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL NET ASSETS |
1,097,940,000 |
1,236,040,000 |
1,506,620,000 |
1,047,580,000 |
948,890,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
|
|
|
|
|
|
SHARE CAPITAL |
|
|
|
|
|
|
Ordinary share capital |
113,190,000 |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL SHARE CAPITAL |
113,190,000 |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
|
|
|
|
|
|
|
|
Capital reserve |
635,350,000 |
681,270,000 |
727,190,000 |
773,110,000 |
819,040,000 |
|
Retained profit/(loss) carried forward |
68,320,000 |
153,200,000 |
220,960,000 |
184,920,000 |
62,110,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL RESERVES |
703,670,000 |
834,470,000 |
948,150,000 |
958,030,000 |
881,150,000 |
|
|
|
|
|
|
|
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
SHAREHOLDERS' FUNDS/EQUITY |
816,860,000 |
836,970,000 |
950,650,000 |
960,530,000 |
883,650,000 |
|
|
|
|
|
|
|
|
Long term loans |
278,930,000 |
351,710,000 |
460,670,000 |
- |
- |
|
Deferred taxation |
2,150,000 |
47,360,000 |
95,300,000 |
87,050,000 |
65,240,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
TOTAL LONG TERM LIABILITIES |
281,080,000 |
399,070,000 |
555,970,000 |
87,050,000 |
65,240,000 |
|
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
1,097,940,000 |
1,236,040,000 |
1,506,620,000 |
1,047,580,000 |
948,890,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
|
|
|
|
|
|
RECRON (MALAYSIA) SDN. BHD. |
|
TYPES OF FUNDS |
|
|
|
|
|
|
Cash |
490,000 |
4,220,000 |
4,090,000 |
5,270,000 |
70,000 |
|
Net Liquid Funds |
(222,060,000) |
(200,690,000) |
(179,370,000) |
(123,270,000) |
(235,010,000) |
|
Net Liquid Assets |
(839,200,000) |
(623,360,000) |
(506,480,000) |
(886,620,000) |
(1,079,470,000) |
|
Net Current Assets/(Liabilities) |
(292,250,000) |
(242,150,000) |
(40,910,000) |
(434,360,000) |
(630,230,000) |
|
Net Tangible Assets |
1,097,940,000 |
1,236,040,000 |
1,506,620,000 |
1,047,580,000 |
948,890,000 |
|
Net Monetary Assets |
(1,120,280,000) |
(1,022,430,000) |
(1,062,450,000) |
(973,670,000) |
(1,144,710,000) |
|
BALANCE SHEET ITEMS |
|
|
|
|
|
|
Total Borrowings |
723,150,000 |
769,460,000 |
843,390,000 |
890,150,000 |
1,054,080,000 |
|
Total Liabilities |
1,314,810,000 |
1,120,990,000 |
1,218,850,000 |
1,164,240,000 |
1,294,690,000 |
|
Total Assets |
2,131,670,000 |
1,957,960,000 |
2,169,500,000 |
2,124,770,000 |
2,178,340,000 |
|
Net Assets |
1,097,940,000 |
1,236,040,000 |
1,506,620,000 |
1,047,580,000 |
948,890,000 |
|
Net Assets Backing |
816,860,000 |
836,970,000 |
950,650,000 |
960,530,000 |
883,650,000 |
|
Shareholders' Funds |
816,860,000 |
836,970,000 |
950,650,000 |
960,530,000 |
883,650,000 |
|
Total Share Capital |
113,190,000 |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
|
Total Reserves |
703,670,000 |
834,470,000 |
948,150,000 |
958,030,000 |
881,150,000 |
|
LIQUIDITY (Times) |
|
|
|
|
|
|
Cash Ratio |
0.00 |
0.01 |
0.01 |
0.00 |
0.00 |
|
Liquid Ratio |
0.19 |
0.14 |
0.24 |
0.18 |
0.12 |
|
Current Ratio |
0.72 |
0.66 |
0.94 |
0.60 |
0.49 |
|
WORKING CAPITAL CONTROL (Days) |
|
|
|
|
|
|
Stock Ratio |
56 |
45 |
45 |
52 |
57 |
|
Debtors Ratio |
12 |
9 |
13 |
16 |
18 |
|
Creditors Ratio |
11 |
17 |
11 |
15 |
14 |
|
SOLVENCY RATIOS (Times) |
|
|
|
|
|
|
Gearing Ratio |
0.89 |
0.92 |
0.89 |
0.93 |
1.19 |
|
Liabilities Ratio |
1.61 |
1.34 |
1.28 |
1.21 |
1.47 |
|
Times Interest Earned Ratio |
(6.38) |
(5.14) |
3.70 |
8.17 |
1.37 |
|
Assets Backing Ratio |
9.70 |
494.42 |
602.65 |
419.03 |
379.56 |
|
PERFORMANCE RATIO (%) |
|
|
|
|
|
|
Operating Profit Margin |
(3.66) |
(3.73) |
1.16 |
4.53 |
0.41 |
|
Net Profit Margin |
(2.39) |
(2.18) |
0.95 |
3.85 |
0.57 |
|
Return On Net Assets |
(10.26) |
(7.84) |
4.03 |
15.73 |
4.53 |
|
Return On Capital Employed |
(8.53) |
(6.72) |
3.59 |
14.01 |
3.63 |
|
Return On Shareholders' Funds/Equity |
(10.42) |
(8.10) |
3.79 |
12.79 |
1.86 |
|
Dividend Pay Out Ratio (Times) |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
NOTES TO ACCOUNTS |
|
|
|
|
|
|
Contingent Liabilities |
0 |
0 |
0 |
0 |
0 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.96 |
|
|
1 |
Rs.94.41 |
|
Euro |
1 |
Rs.70.20 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NIT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.