MIRA INFORM REPORT

Report No. :	325636
Report Date :	06.06.2015

IDENTIFICATION DETAILS

Name :	UNIMED SDN. BHD.
Registered Office :	30-1, Jalan Kuchai Maju 8, Off Jalan Kuchai Lama, 58200 Kuala Lumpur, Wilayah Persekutuan
Country :	Malaysia
Financials (as on) :	31.03.2014
Date of Incorporation :	08.04.1981
Com. Reg. No.:	69359-V
Legal Form :	Private Limited
Line of Business :	Trading of Pharmaceutical Products.
No. of Employees :	60 [2015]

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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. Falling global oil prices in the second half of 2014 have 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 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. 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.

:

69359-V

COMPANY NAME

:

UNIMED SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

08/04/1981

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

30-1, JALAN KUCHAI MAJU 8, OFF JALAN KUCHAI LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

53, JALAN TEMBAGA SD 5/2B, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-62721853

FAX.NO.

:

03-62721893

EMAIL

:

UNIMED81@TM.NET.MY

WEB SITE

:

WWW.UNIMED.COM.MY.

CONTACT PERSON

:

MOHD AMIRUDDIN ARUMUGAM BIN ABDULLAH (MANAGING DIRECTOR)

INDUSTRY CODE

:

46421

PRINCIPAL ACTIVITY

:

TRADING OF PHARMACEUTICAL PRODUCTS

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 788,000.00 DIVIDED INTO
ORDINARY SHARES 759,285 CASH AND 28,715 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 29,328,458 [2014]

NET WORTH

:

MYR 3,803,445 [2014]

STAFF STRENGTH

:

60 [2015]

BANKER (S)

:

CIMB BANK BHD PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

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 pharmaceutical products.

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

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
30/09/2014	MYR 1,000,000.00	MYR 788,000.00
06/11/2002	MYR 500,000.00	MYR 350,000.00
31/03/1997	MYR 500,000.00	MYR 266,652.00
29/04/1987	MYR 200,000.00	MYR 133,326.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. LOUIS A/L R SAVARIMUTHU	711, DESA DAMANSARA KONDO, 99, JALAN SETIAKASIH, BUKIT DAMANSARA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	480708-07-5311 1665305	340,362.00	43.19
MR. MOHD AMIRUDDIN ARUMUGAM BIN ABDULLAH +	A, 10/2/1, JALAN KAMPUNG PANDAN, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	470306-10-5451 7970817	221,669.00	28.13
MR. RAYAR A/L SOWRIMUTHU +	32, JALAN ARA SD 7/1, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	591128-07-5595 5741071	137,281.00	17.42
KOLANDAHMMAL A/P SAVARIMUTHU	378, TAMAN USAHA EHSAN, DESA JAYA, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	451221-07-5464 3710413	32,029.00	4.06
MR. SUBRAMANIAM A/L GOVINDASAMY	8, LORONG MASRIA 4, TAMAN BUNGA RAYA, SETAPAK, 53000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	590701-10-6637 5700396	18,011.00	2.29
LOURTHU MARY A/P SAVARIMUTHU	162, JALAN BUNGGOR, OFF JALAN KASTAM, SELANGOR, MALAYSIA.	500821-07-5482 3781923	15,044.00	1.91
MR. THIRUMALAI @ MUNUSWAMY +	30, LORONG BATU NILAM 15B, BANDAR BUKIT TINGGI, 41000 KLANG, SELANGOR, MALAYSIA.	491007-71-5041 7797664	12,932.00	1.64
IRUDAYMARY A/P SAVARIMUTHU	378, TAMAN USAHA EHSAN, DESA JAYA, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	2384075	5,336.00	0.68
GEETHA A/P C R NARASIMHARAJ	7, JALAN TELOK BATU, OFF TAMAN SEPUTEH, JALAN KELANG, 58000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	560119-10-5690 4912360	5,336.00	0.68
			---------------	------
			788,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. THIRUMALAI @ MUNUSWAMY
Address	:	30, LORONG BATU NILAM 15B, BANDAR BUKIT TINGGI, 41000 KLANG, SELANGOR, MALAYSIA.
IC / PP No	:	7797664
New IC No	:	491007-71-5041
Date of Birth	:	07/10/1949
Nationality	:	MALAYSIAN
Date of Appointment	:	03/10/1987

DIRECTOR 2

Name Of Subject	:	MR. RAYAR A/L SOWRIMUTHU
Address	:	32, JALAN ARA SD 7/1, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	5741071
New IC No	:	591128-07-5595
Date of Birth	:	28/11/1959
Nationality	:	MALAYSIAN
Date of Appointment	:	12/11/2002

DIRECTOR 3

Name Of Subject	:	MR. MOHD AMIRUDDIN ARUMUGAM BIN ABDULLAH
Address	:	A, 10/2/1, JALAN KAMPUNG PANDAN, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	7970817
New IC No	:	470306-10-5451
Date of Birth	:	06/03/1947
Nationality	:	MALAYSIAN
Date of Appointment	:	25/09/1982

MANAGEMENT

1)	Name of Subject	:	MOHD AMIRUDDIN ARUMUGAM BIN ABDULLAH
	Position	:	MANAGING DIRECTOR

AUDITOR

Auditor	:	INPANA & ASSOCIATES
Auditor' Address	:	568-9-21, KOMPLEKS MUTIARA, 3 1/2, JALAN IPOH, 9TH FLOOR, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MR. EDWARD OPHIR LEE
	IC / PP No	:	A2330002
	New IC No	:	721228-04-5089
	Address	:	12A, JALAN KHOO TEIK EE, OFF JALAN IMBI, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BANKING

Banking relations are maintained principally with:

1)

Name

:

CIMB BANK BHD

2)

Name

:

PUBLIC BANK BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	22/02/1984	DEBENTURE: HYPOTHECATION OF STOCKS	UNITED ASIAN BANK BERHAD	MYR 80,000.00	Satisfied
2	23/03/1994	DEED OF ASSIGNMENT	BANK OF COMMERCE (M) BERHAD	MYR 150,000.00	Unsatisfied
4	13/12/1996	LOAN AGREEMENT	PUBLIC BANK BERHAD	MYR 90,000.00	Unsatisfied
3	18/11/1997	FIRST PARTY SECOND LEGAL CHARGE	BANK OF COMMERCE (M) BERHAD	MYR 150,000.00	Unsatisfied
5	22/02/2002	FIRST LEGAL CHARGE (FIXED LOAN) & SECOND LEGAL CHARGE (LETTER OF CREDIT/TRUST RECEIPT/SHIPPING GUARANTEE)	PUBLIC BANK BERHAD	MYR 366,000.00	Unsatisfied
6	23/01/2003	OPEN ALL MONIES FIRST LEGAL REGISTERED CHARGE	PUBLIC BANK BERHAD	-	Unsatisfied
7	22/12/2004	3RD LEGAL CHARGE	BUMIPUTRA-COMMERCE BANK BERHAD	MYR 250,000.00	Unsatisfied
8	12/07/2005	DEED OF ASSIGNMENT AND POWER OF ATTORNEY	BUMIPUTRA-COMMERCE BNK BERHAD	MYR 200,000.00	Unsatisfied
9	26/06/2006	MEMORANDUM OF FIXED DEPOSIT OF FIXED DEPOSIT RECEIPT	BUMIPUTRA-COMMERCE BANK BERHAD	-	Unsatisfied
10	18/11/2008	1ST PARTY 1ST LEGAL CHARGE UNDER THE NATIONAL LAND CODE	PUBLIC BANK BERHAD	MYR 3,600,000.00	Unsatisfied
11	05/06/2012	1ST PARTY ASSIGNMENT UNDER THE NATIONAL LAND CODE AND BASIC DEBENTURE	PUBLIC BANK BERHAD	-	Unsatisfied
12	14/09/2012	SECURED OVER THE EXISTING 1ST PARTY DEED OF ASSIGNMENT AND SECURED OVER A FIRST PARTY CHARGE	PUBLIC BANK BERHAD	MYR 1,000.00	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
Overseas	:	YES

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

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	]	Good 31-60 Days	[		]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[	X	]

CLIENTELE

Local	:	YES	Percentage	:	100%
Domestic Markets	:	MALAYSIA
Overseas	:	NO
Credit Term	:	N/A
Payment Mode	:	CHEQUES

OPERATIONS

Goods Traded

:

PHARMACEUTICALS

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

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	60	60	70	50	40	50

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading of pharmaceutical products.

The Subject is engaged in the promoting and marketing specialized pharmaceutical finished formulations.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	03-62721853
Match	:	N/A
Address Provided by Client	:	NO 53, JALAN TEMBAGA SD 5/2B, BANDAR SRI DAMANSARA,52200,KUALA LUMPUR,WILAYAH PERSEKUTUAN.
Current Address	:	53, JALAN TEMBAGA SD 5/2B, BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

We contacted one of the staff from the Subject and she provided some information.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2010 - 2014	]
Profit/(Loss) Before Tax	:	Increased	[	2010 - 2014	]
Return on Shareholder Funds	:	Acceptable	[	15.86%	]
Return on Net Assets	:	Acceptable	[	11.35%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.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	:	Favourable	[	47 Days	]
Debtor Ratio	:	Unfavourable	[	211 Days	]
Creditors Ratio	:	Unfavourable	[	446 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.
Liquidity
Liquid Ratio	:	Unfavourable	[	0.78 Times	]
Current Ratio	:	Unfavourable	[	0.91 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	[	2.82 Times	]
Gearing Ratio	:	Unfavourable	[	2.38 Times	]
The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.
Overall Assessment :
Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. 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. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the Subject : LIMITED

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
46421 : Wholesale of pharmaceutical and medical goods
INDUSTRY :	TRADING
The wholesale and retail trade is expected to increase 7.1% in 2015 (2014: 7.7%) driven by strong domestic consumption and higher tourist arrivals following the Malaysia Year of Festivals 2015. Besides, in 2014, the wholesale and retail trade subsector is expected to increase 7.7% (2013: 6.4%) supported by strong domestic consumption.
According to Retail Group Malaysia (RGM), the pharmacy and personal care sub-sector had slow growth rate of 2.6% for the first quarter of 2014, while "other specialty stores" grew at a rate of 3.5%. During the first quarter of 2014, fashion and fashion accessories recorded a sustainable growth of 6.3% as compared with the same period last year (3.6%).
The retail segment increased 10.1% (January - June 2013: 7.1%) attributed to brisk sales in retail outlets such as hypermarkets and large-scale superstores. Since the launch of the Small Retailer Transformation programme (TUKAR) in January 2011 up to end-July 2014, 1,761 small retailer stores (end-July 2013: 1,381) have been modernized to improve their competitiveness. In addition, the strong growth of the retail segment was supported by 1Malaysia Unified Sales held from 29 June 2014 to 1 September 2014 to attract foreign and local tourists to shop in Malaysia. Meanwhile, the wholesale segment expanded 8.2% (January - June 2013: 4.9%) due to higher sales of non-agricultural intermediate products, such as petrol, diesel, lubricants and household goods. Furthermore, food and beverage outlets, laundry outlets, car wash centres, abd health and beauty outlets took a hit from the water rationing in the Klang Valley since February this year.
On the other hand, in 2014, Malaysia's total trade is expected to grow 5.2% to RM1.44 trillion (2013: 4.5%; RM1.37 trillion) underpinned by recovery in key advanced economies, resilient regional demand, and partly due to the base effect arising from sluggish exports in the corresponding period last year. Gross exports are anticipated to expand 6% to RM762.8 billion while import decreased 4.3% to RM677.2 billion (2013: 2.4%; RM719.8 billion; 7%; RM 649.1 billion). Consequently, the trade surplus is expected to be higher at RM85.6 billion or 7.9% of GDP in 2014 (2013: RM70.7 billion; 7.2%).
Furthermore, gross exports rebounded by 10.7% to RM441.3 billion during the first seven months of 2014 (January - July 2013: -2.8%; RM398.5 billion), with manufactured and mining exports rising at a double digit pace of 11.4% and 12.5%. Shipment of agriculture products grew at a slower pace of 2.7%, primarily due to lower receipts of crude rubber (-24.6%) while export growth of other commodities remained steady. Consequently, exports of manufactured and mining products are expected to grow 6.1% and 6.4% in 2014 (2013: 5.1%; 3.3%). Meanwhile, agriculture exports are expected to rebound sharply by 4.5% in 2014 (2013: -14.4%) despite moderating commodity prices. Malaysia's top 3 trading partners are China, Singapore, and Japan.
Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption. Therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1981, the Subject is a Private Limited company, focusing on trading of pharmaceutical products. 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. We noted that the issued and paid up capital of the Subject stands at MYR 788,000. Under the control of its directors, we considered that the Subject's business position in the market is much dependent on their abilities.

Over the years, the Subject should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. Being a moderate size company, the Subject has a total workforce of 60 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. 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. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at MYR 3,803,445, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

The poor payment habit may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

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)

UNIMED SDN. BHD.

Financial Year End	2014-03-31	2013-03-31	2012-03-31	2011-03-31	2010-03-31
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	SUMMARY	SUMMARY
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	29,328,458	28,900,092	30,404,653	22,215,901	14,050,163
Other Income	548,263	731,548	493,588	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	29,876,721	29,631,640	30,898,241	22,215,901	14,050,163
Costs of Goods Sold	(21,569,684)	(22,266,541)	(24,256,612)	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	8,307,037	7,365,099	6,641,629	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	886,958	782,809	814,301	471,734	236,601
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	886,958	782,809	814,301	471,734	236,601
Taxation	(283,757)	(245,616)	(245,020)	(125,238)	(102,084)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	603,201	537,193	569,281	346,496	134,517
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	2,412,244	1,875,051	1,305,770	959,274	824,757
	----------------	----------------	----------------	----------------	----------------
As restated	2,412,244	1,875,051	1,305,770	959,274	824,757
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	3,015,445	2,412,244	1,875,051	1,305,770	959,274
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	3,015,445	2,412,244	1,875,051	1,305,770	959,274
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	9,719	30,129	34,828	-	-
Hire purchase	20,861	23,360	20,895	-	-
Term loan / Borrowing	455,466	421,675	278,802	-	-
	----------------	----------------	----------------	----------------	----------------
	486,046	475,164	334,525	-	-
	=============	=============	=============	-	-
DEPRECIATION (as per notes to P&L)	402,991	396,292	353,478	-	-
	----------------	----------------	----------------	----------------	----------------
	402,991	396,292	353,478	-	-
	=============	=============	=============

BALANCE SHEET

UNIMED SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	14,857,011	14,466,747	8,899,895	8,579,182	8,374,451
Investments	8,750	8,750	8,750	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	8,750	8,750	8,750	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	14,865,761	14,475,497	8,908,645	8,579,182	8,374,451
Stocks	3,750,004	3,308,037	3,035,274	-	-
Trade debtors	16,987,875	17,147,389	14,277,147	-	-
Other debtors, deposits & prepayments	204,545	112,557	209,786	-	-
Short term deposits	3,735,265	4,064,015	3,473,175	-	-
Loans & advances - current portion	1,152,000	-	-	-	-
Cash & bank balances	850,056	957,616	460,207	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	26,679,745	25,589,614	21,455,589	14,431,790	8,522,656
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	41,545,506	40,065,111	30,364,234	23,010,972	16,897,107
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	26,334,045	24,764,598	19,167,259	-	-
Other creditors & accruals	849,460	1,116,756	1,399,912	-	-
Hire purchase & lease creditors	86,229	109,131	112,362	-	-
Bank overdraft	-	486,750	464,714	-	-
Short term borrowings/Term loans	678,300	678,300	453,300	-	-
Amounts owing to director	1,443,739	1,037,267	1,300,841	-	-
Provision for taxation	51,606	33,116	104,022	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	29,443,379	28,225,918	23,002,410	16,038,982	10,088,508
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	(2,763,634)	(2,636,304)	(1,546,821)	(1,607,192)	(1,565,852)
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	12,102,127	11,839,193	7,361,824	6,971,990	6,808,599
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	788,000	788,000	788,000	788,000	788,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	788,000	788,000	788,000	788,000	788,000
Retained profit/(loss) carried forward	3,015,445	2,412,244	1,875,051	1,305,770	959,274
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	3,015,445	2,412,244	1,875,051	1,305,770	959,274
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	3,803,445	3,200,244	2,663,051	2,093,770	1,747,274
Long term loans	8,148,776	8,449,374	4,450,014	-	-
Hire purchase creditors	149,906	189,575	248,759	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	8,298,682	8,638,949	4,698,773	4,878,220	5,061,325
	----------------	----------------	----------------	----------------	----------------
	12,102,127	11,839,193	7,361,824	6,971,990	6,808,599
	=============	=============	=============	=============	=============

FINANCIAL RATIO

UNIMED SDN. BHD.

TYPES OF FUNDS
Cash	4,585,321	5,021,631	3,933,382	-	-
Net Liquid Funds	4,585,321	4,534,881	3,468,668	-	-
Net Liquid Assets	(6,513,638)	(5,944,341)	(4,582,095)	(1,607,192)	(1,565,852)
Net Current Assets/(Liabilities)	(2,763,634)	(2,636,304)	(1,546,821)	(1,607,192)	(1,565,852)
Net Tangible Assets	12,102,127	11,839,193	7,361,824	6,971,990	6,808,599
Net Monetary Assets	(14,812,320)	(14,583,290)	(9,280,868)	(6,485,412)	(6,627,177)
BALANCE SHEET ITEMS
Total Borrowings	9,063,211	9,913,130	5,729,149	-	-
Total Liabilities	37,742,061	36,864,867	27,701,183	20,917,202	15,149,833
Total Assets	41,545,506	40,065,111	30,364,234	23,010,972	16,897,107
Net Assets	12,102,127	11,839,193	7,361,824	6,971,990	6,808,599
Net Assets Backing	3,803,445	3,200,244	2,663,051	2,093,770	1,747,274
Shareholders' Funds	3,803,445	3,200,244	2,663,051	2,093,770	1,747,274
Total Share Capital	788,000	788,000	788,000	788,000	788,000
Total Reserves	3,015,445	2,412,244	1,875,051	1,305,770	959,274
LIQUIDITY (Times)
Cash Ratio	0.16	0.18	0.17	-	-
Liquid Ratio	0.78	0.79	0.80	-	-
Current Ratio	0.91	0.91	0.93	0.90	0.84
WORKING CAPITAL CONTROL (Days)
Stock Ratio	47	42	36	-	-
Debtors Ratio	211	217	171	-	-
Creditors Ratio	446	406	288	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	2.38	3.10	2.15	-	-
Liabilities Ratio	9.92	11.52	10.40	9.99	8.67
Times Interest Earned Ratio	2.82	2.65	3.43	-	-
Assets Backing Ratio	15.36	15.02	9.34	8.85	8.64
PERFORMANCE RATIO (%)
Operating Profit Margin	3.02	2.71	2.68	2.12	1.68
Net Profit Margin	2.06	1.86	1.87	1.56	0.96
Return On Net Assets	11.35	10.63	15.61	6.77	3.48
Return On Capital Employed	11.26	10.12	14.47	6.77	3.48
Return On Shareholders' Funds/Equity	15.86	16.79	21.38	16.55	7.70
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00	-	-
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.90
UK Pound	1	Rs.97.98
Euro	1	Rs.71.82

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%)

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