MIRA INFORM REPORT

 

 

Report No. :

332072

Report Date :

23.07.2015

           

IDENTIFICATION DETAILS

 

Name :

SENG ELECTRIC CO. (M) SDN. BHD.

 

 

Registered Office :

44-2-2, Jalan 2/101c, Cheras Business Centre, 56100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

16.08.1976

 

 

Com. Reg. No.:

28825-K

 

 

Legal Form :

Exempt Private (Limited By Share)

 

 

Line of Business :

Trading Of Electrical Appliances And Apparatus.

 

 

No. of Employee :

10 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

MALAYSIA ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has previously profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplied about 29% of government revenue in 2014. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays. Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

28825-K

COMPANY NAME

:

SENG ELECTRIC CO. (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

16/08/1976

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

44-2-2, JALAN 2/101C, CHERAS BUSINESS CENTRE, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

6, LORONG YAP HIN, OFF JALAN PASAR, PUDU, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-21418222

FAX.NO.

:

03-21419412

CONTACT PERSON

:

CHENG ONN ( MANAGING DIRECTOR )

INDUSTRY CODE

:

46496

PRINCIPAL ACTIVITY

:

TRADING OF ELECTRICAL APPLIANCES AND APPARATUS

AUTHORISED CAPITAL

:

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

ISSUED AND PAID UP CAPITAL

:

MYR 400,000.00 DIVIDED INTO
ORDINARY SHARES 400,000 CASH OF MYR 1.00 EACH.

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

10 [2015]

BANKER (S)

:

PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

HIGH

CURRENCY EXPOSURE

:

NIL

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

 

HISTORY / BACKGROUND

 


The Subject is an exempt private company which is allowed to have a minimum of two and a maximum of twenty shareholders and all the shareholders must be individuals. An exempt company is a type of private limited company. 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, suing or be sued by other companies. The Subject is governed by the Companies Act, 1965 and must file in its annual return. The Subject need not file in its financial statements but it has to file in a document duly signed by its director in charge of its finance, the secretary and its auditor stating that the Subject is able to meet all its obligations as and when they fall due. Although the Subject is not required to file in its financial statements, it also has to prepare its financial account which must be presented at the Annual General Meeting.

The Subject is principally engaged in the (as a / as an) trading of electrical appliances and apparatus.

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


 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2013

MYR 1,000,000.00

MYR 400,000.00

 


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

 


Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. CHENG ONN +

LOT PT 37132, 2, JALAN BAYU 2A, BUKIT GITA BAYU,

43300 SERI KEMBANGAN, SELANGOR, MALAYSIA.

551122-10-6489 4840762

219,999.00

55.00

CHENG WONG, TRUST OF BENEFICIARY CHENG HAN YANG

34 JALAN TR 8/2, TROPICANA COURT & COUNTRY RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

00018873

45,000.00

11.25

CHENG WONG TRUST OF CHENG YEE LIAN

34 JLN TR 8/2, TROPICANA COURT & COUNTRY RESORT, 47410 PETALING JAYA, SELANGOR, MALAYSIA.

00018060

45,000.00

11.25

MS. KHOR AI SOOK

47 JALAN 7/149J, BANDAR BARU SRI PETALING, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

690312-02-5890 A1207254

45,000.00

11.25

MS. LOOI LIN

2, JALAN BAYU 2A, BUKIT GITA BAYU, 43300 SERI KEMBANGAN, SELANGOR, MALAYSIA.

210407-71-5194 1478775

22,500.00

5.63

CHENG AH TIANG BENEFICIARY CHENG YEE LIAN

6 LORONG YAP HIN, OFF JALAN PASAR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

00020292

11,250.00

2.81

MS. CHENG SIEW FONG +

19, JALAN PANGLIMA AWANG 35/118A, ALAM IMPIAN, 40470 SHAH ALAM, SELANGOR, MALAYSIA.

820803-10-5898

1.00

0.00

ESTATE OF ROSNA BINTI KASSIM

27 JALAN CAHAYA 7, TAMAN CAHAYA, 68000 AMPANG, SELANGOR, MALAYSIA.

00020293

11,250.00

2.81

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

------

400,000.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. CHENG SIEW FONG

Address

:

19, JALAN PANGLIMA AWANG 35/118A, ALAM IMPIAN, 40470 SHAH ALAM, SELANGOR, MALAYSIA.

New IC No

:

820803-10-5898

Date of Birth

:

03/08/1982

Nationality

:

MALAYSIAN

Date of Appointment

:

26/06/2007

 

DIRECTOR 2

 

Name Of Subject

:

MR. CHENG ONN

Address

:

LOT PT 37132, 2, JALAN BAYU 2A, BUKIT GITA BAYU, 43300 SERI KEMBANGAN, SELANGOR, MALAYSIA.

IC / PP No

:

4840762

New IC No

:

551122-10-6489

Date of Birth

:

22/11/1955

Nationality

:

MALAYSIAN

Date of Appointment

:

16/06/1981




MANAGEMENT

 

 

 

1)

Name of Subject

:

CHENG ONN

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

PHANG & CO

Auditor' Address

:

46-2-2, JALAN 2/101C, CHERAS BUS.CENTRE, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. PANG CHIN CHONG

IC / PP No

:

5434078

New IC No

:

580210-01-5571

Address

:

67, JALAN SAGA 27, TAMAN SAGA, 68000 AMPANG, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

PUBLIC BANK BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

2

08/03/1979

N/A

THE CHARTERED BANK

MYR 1.00

Satisfied

3

24/10/1979

N/A

THE PACIFIC BANK BHD

MYR 420,000.00

Unsatisfied

3(BK 87/76)

24/10/1979

CHARGE

THE PACIFIC BANK BHD

$ 420,000.00

Unsatisfied

4

28/12/1981

N/A

PUBLIC BANK BHD

MYR 340,000.00

Unsatisfied

4 (BK 87/76)

28/12/1981

CHARGE

PUBLIC BANK BHD

$ 340,000.00

Unsatisfied

5

28/12/1981

N/A

PUBLIC BANK BERHAD

MYR 240,000.00

Unsatisfied

5 (BK 87/76)

28/12/1981

CHARGE

THE CHARTERED BANK

$ 240,000.00

Unsatisfied

6

20/04/1983

N/A

PUBLIK BANK BHD

MYR 200,000.00

Unsatisfied

6 (BK 208/32)

20/04/1983

CHARGE

PUBLIC BANK BHD

$ 200,000.00

Unsatisfied

7

27/02/1985

N/A

PUBLIK BANK BHD

MYR 100,000.00

Unsatisfied

7 (BK 208/32)

27/02/1985

CHARGE

PUBLIC BANK BHD

$ 100,000.00

Unsatisfied

8

06/12/1985

N/A

PUBLIK BANK BHD

MYR 100,000.00

Unsatisfied

8 (BK 208/32)

06/12/1985

CHARGE

PUBLIC BANK BHD

$ 100,000.00

Unsatisfied

9

03/10/1990

N/A

PUBLIC BANK BERHAD

MYR 1,200,000.00

Satisfied

10

01/09/1992

N/A

PUBLIC BANK BHD

MYR 150,000.00

Satisfied

11

01/09/1992

CHARGE

PUBLIC BANK BHD

MYR 150,000.00

Unsatisfied

12

28/09/1994

DEBENTURE & CHARGE

PUBLIC BANK BERHAD

MYR 300,000.00

Unsatisfied

13

04/12/1995

N/A

PUBLIC BANK BERHAD

MYR 500,000.00

Unsatisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


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

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

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

100%

Overseas

:

NO

Percentage

:

0%

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

120 DAYS

Payment Mode

:

CHEQUES

 

 

OPERATIONS

 

Goods Traded

:

ELECTRICAL APPLIANCES AND APPARATUS

Member(s) / Affiliate(s)

:

THE ELECTRICAL AND ELECTRONICS ASSOCIATION OF MALAYSIA (TEEAM)

 

Total Number of Employees:

YEAR

2015

2013

GROUP

N/A

N/A

COMPANY

10

8

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of electrical appliances and apparatus.

The Subject is involved in trading of electrical and electronic appliances and apparatus.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0321418222

Current Telephone Number

:

03-21418222

Match

:

YES

Address Provided by Client

:

6, LORONG YAP HIN, OFF JALAN PASAR, PUDU,55100,KUALA LUMPUR,WILAYAH PERSEKUTUAN.

Current Address

:

6, LORONG YAP HIN, OFF JALAN PASAR, PUDU, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

NO


We have contacted the SC's Accountant and its Company Secretary for the latest financial accounts. However they have rejected our request in view of the confidentiality of the documents.

 

Other Investigations


On 21st July 2015 we contacted one of the staff from the Subject and he provided some information.


FINANCIAL ANALYSIS

 

 

The Subject is a private exempt company which does not need to file in its accounts with the Registrar of Companies for the information of the public. Therefore, we are not able to comment on the Subject's financial performance.

Overall financial condition of the Subject : N/A

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.3

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 



INDUSTRY ANALYSIS

 

MSIC CODE

46496 : Wholesale of electrical and electronic goods

INDUSTRY :

ELECTRICAL & ELECTRONIC

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

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

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

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

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

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

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1976, the Subject is an Exempt Private company, focusing on trading of electrical appliances and apparatus. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. With an issued and paid up capital of MYR 400,000 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. 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.

As the Subject is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health.

We noted that the Subject's supplies are solely sourced from local market. Being highly dependent on a limited number of suppliers could lead to delays, lost of revenue and increased costs if such resources become unavailable or shortage.

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

In view of the above, we only recommend credit be proceeded to the Subject with guarantee.

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2006-12-31

2005-12-31

2004-12-31

Months

12

12

12

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

NO

Financial Type

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

TURNOVER

7,336,965

6,469,427

5,970,858

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

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

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

Total Turnover

7,336,965

6,469,427

5,970,858

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

169,018

96,687

54,852

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

169,018

96,687

54,852

Taxation

(39,872)

(25,532)

(16,944)

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

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

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

PROFIT/(LOSS) AFTER TAXATION

129,146

71,155

37,908

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

129,146

71,155

37,908

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

129,146

71,155

37,908

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

478,233

407,078

369,170

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

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

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

As restated

478,233

407,078

369,170

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

607,379

478,233

407,078

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

607,379

478,233

407,078

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

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

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

 

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

509,341

539,646

532,102

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

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

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

TOTAL LONG TERM ASSETS

509,341

539,646

532,102

TOTAL CURRENT ASSETS

4,266,103

3,475,401

3,381,272

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

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

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

TOTAL ASSET

4,775,444

4,015,047

3,913,374

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

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

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

TOTAL CURRENT LIABILITIES

3,756,083

3,110,825

3,092,696

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

510,020

364,576

288,576

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

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

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

TOTAL NET ASSETS

1,019,361

904,222

820,678

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

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

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

SHARE CAPITAL

Ordinary share capital

400,000

400,000

400,000

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

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

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

TOTAL SHARE CAPITAL

400,000

400,000

400,000

Retained profit/(loss) carried forward

607,378

478,233

407,078

Others

-

(1)

-

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

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

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

TOTAL RESERVES

607,378

478,232

407,078

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,007,378

878,232

807,078

TOTAL LONG TERM LIABILITIES

11,983

25,990

13,600

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

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

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

1,019,361

904,222

820,678

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

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

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

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Net Liquid Assets

510,020

364,576

288,576

Net Current Assets/(Liabilities)

510,020

364,576

288,576

Net Tangible Assets

1,019,361

904,222

820,678

Net Monetary Assets

498,037

338,586

274,976

BALANCE SHEET ITEMS

Total Liabilities

3,768,066

3,136,815

3,106,296

Total Assets

4,775,444

4,015,047

3,913,374

Net Assets

1,019,361

904,222

820,678

Net Assets Backing

1,007,378

878,232

807,078

Shareholders' Funds

1,007,378

878,233

807,078

Total Share Capital

400,000

400,000

400,000

Total Reserves

607,378

478,233

407,078

LIQUIDITY (Times)

Current Ratio

1.14

1.12

1.09

SOLVENCY RATIOS (Times)

Liabilities Ratio

3.74

3.57

3.85

Assets Backing Ratio

2.55

2.26

2.05

PERFORMANCE RATIO (%)

Operating Profit Margin

2.30

1.49

0.92

Net Profit Margin

1.76

1.10

0.63

Return On Net Assets

16.58

10.69

6.68

Return On Capital Employed

16.58

10.69

6.68

Return On Shareholders' Funds/Equity

12.82

8.10

4.70

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.53

UK Pound

1

Rs.99.19

Euro

1

Rs.69.60

 

 

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.