MIRA INFORM REPORT

 

 

Report No. :

325446

Report Date :

08.06.2015

 

IDENTIFICATION DETAILS

 

Name :

ASIA GLOBAL EXIM SDN. BHD.

 

 

Registered Office :

7711, Jalan Teluk Batu 1, Batu 4, Off Jalan Kebun, Seksyen 36, 1st Floor, 40460 Shah Alam, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

24.04.2007

 

 

Com. Reg. No.:

770800-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of stainless steel pipes, plates, coils & hardware

 

 

No of Employees :

15 [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 Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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.

:

770800-M

COMPANY NAME

:

ASIA GLOBAL EXIM SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

24/04/2007

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

7711, JALAN TELUK BATU 1, BATU 4, OFF JALAN KEBUN, SEKSYEN 36, 1ST FLOOR, 40460 SHAH ALAM, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 1238/1, BATU 7 1/2, JALAN BUKIT KEMUNING, 42450 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-51219470

FAX.NO.

:

03-51219480

CONTACT PERSON

:

VIJAY GHEWARCHANG JAIN ( EXECUTIVE DIRECTOR )

INDUSTRY CODE

:

46621

PRINCIPAL ACTIVITY

:

TRADING OF STAINLESS STEEL PIPES, PLATES, COILS & HARDWARE

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,000,000.00 DIVIDED INTO
ORDINARY SHARES 2,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 33,380,289 [2013]

NET WORTH

:

MYR 2,607,822 [2013]

STAFF STRENGTH

:

15 [2015]

BANKER (S)

:

HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

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

 

The Subject is principally engaged in the (as a / as an) trading of stainless steel pipes, plates, coils & hardware.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/06/2014

MYR 5,000,000.00

MYR 2,000,000.00

20/08/2007

MYR 1,000,000.00

MYR 1,000,000.00

24/04/2007

MYR 1,000,000.00

MYR 3.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

VIJAY GHEWARCHAND JAIN +

LOT 1238/1, JALAN BUKIT KEMUNING, BATU 7 1/2, 42450 SHAH ALAM, SELANGOR, MALAYSIA.

Z2209440

1,799,998.00

90.00

REKHA VIJAY JAIN +

LOT 1238/1, JALAN BKUIT KEMUNING, BATU 7 1/2, 42450 SHAH ALAM, SELANGOR, MALAYSIA.

H2764316

200,002.00

10.00

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

------

2,000,000.00

100.00

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

=====

+ Also Director




DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

REKHA VIJAY JAIN

Address

:

LOT 1238/1, JALAN BKUIT KEMUNING, BATU 7 1/2, 42450 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

H2764316

Nationality

:

INDIAN

Date of Appointment

:

30/11/2009

 

DIRECTOR 2

 

Name Of Subject

:

VIJAY GHEWARCHAND JAIN

Address

:

LOT 1238/1, JALAN BUKIT KEMUNING, BATU 7 1/2, 42450 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

Z2209440

Nationality

:

INDIAN

Date of Appointment

:

24/04/2007



MANAGEMENT

 

1)

Name of Subject

:

VIJAY GHEWARCHANG JAIN

Position

:

EXECUTIVE DIRECTOR

 

AUDITOR

 

Auditor

:

WSJ & CO

Auditor' Address

:

6-7-3, BLOCK 6, QUEEN'S AVENUE, JALAN BAYAM, OFF JALAN PEEL, LEVEL 7, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. VASANTHI A/P VITHALINGAM

IC / PP No

:

5680372

New IC No

:

590516-10-6248

Address

:

5, SS5C/1, KELANA JAYA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Charge Name

Total Charge

Status

1

06/11/2013

2RD PARTY CHARGE

AIA BHD

-

Unsatisfied

2

19/09/2014

GENERAL AGREEMENT

HSBC BANK MALAYSIA BHD

-

Unsatisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank against 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

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

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

INDIA

Credit Term

:

AS AGREED

Payment Mode

:

TELEGRAPHIC TRANSFER (TT)
LETTER OF CREDIT (LC)
CHEQUES

Type of Customer

:

END USERS,DISTRIBUTORS

 

OPERATIONS

 

Goods Traded

:

FERROUS AND NON FERROUS METAL, STEEL AND OTHERS

 

Total Number of Employees:

 

YEAR

2015

2013

2012


GROUP

N/A

N/A

N/A

COMPANY

15

10

10

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of stainless steel pipes, plates, coils & hardware.

The Subject also specialises in Stainless Steel / Secondary & Scrap, Moly Scrap, Nickel Scrap, Ti Scrap, Cobalt Scrap and others.


The Subject is also able to import from overseas companies for the local customers.


The Subject's products are used for construction, furniture making, engineering as well as for others.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-51219470

Match

:

N/A

Address Provided by Client

:

LOT 1238/1, BATU 7 1/2, JALAN BUKIT KEMUNING,42450,KLANG,SELANGOR.

Current Address

:

LOT 1238/1, BATU 7 1/2, JALAN BUKIT KEMUNING, 42450 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


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

FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

Return on Shareholder Funds

:

Unfavourable

[

6.15%

]

Return on Net Assets

:

Unfavourable

[

5.21%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years. The Subject's management have been efficient in controlling its operating costs. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

14 Days

]

Debtor Ratio

:

Favourable

[

22 Days

]

Creditors Ratio

:

Favourable

[

19 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Favourable

[

1.01 Times

]

Current Ratio

:

Unfavourable

[

1.53 Times

]

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

Solvency

Interest Cover

:

Favourable

[

17.32 Times

]

Gearing Ratio

:

Favourable

[

0.54 Times

]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

Overall Assessment :

Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

Overall financial condition of the Subject : FAIR

 

 

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.3

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

46621 : Wholesale of ferrous and non-ferrous metal ores and metals

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 2007, the Subject is a Private Limited company, focusing on trading of stainless steel pipes, plates, coils & hardware. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. With a paid up capital of MYR 2,000,000, the Subject has greater opportunities to expand its business when the needs arise. Under the control of its directors, we considered that the Subject's business position in the market is much dependent on their abilities.

Investigation revealed, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a small company, the Subject's business operation is supported by 15 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.

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. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 2,607,822, the Subject should be able to maintain its business in the near terms.


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.


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


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


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

 



PROFIT AND LOSS ACCOUNT

 

 

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

ASIA GLOBAL EXIM 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

33,380,289

30,183,127

30,010,000

25,997,126

20,498,394

Other Income

141

-

-

-

-

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

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

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

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

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

Total Turnover

33,380,430

30,183,127

30,010,000

25,997,126

20,498,394

Costs of Goods Sold

(32,353,830)

(29,296,474)

(29,309,352)

(25,417,235)

(20,031,960)

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

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

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

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

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

Gross Profit

1,026,600

886,653

700,648

579,891

466,434

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

195,175

166,656

191,909

64,437

70,709

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

195,175

166,656

191,909

64,437

70,709

Taxation

(34,779)

(62,571)

(34,328)

(20,786)

(4,412)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

160,396

104,085

157,581

43,651

66,297

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

447,426

343,341

185,760

142,109

75,812

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

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

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

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

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

As restated

447,426

343,341

185,760

142,109

75,812

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

607,822

447,426

343,341

185,760

142,109

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

607,822

447,426

343,341

185,760

142,109

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Hire purchase

2,250

3,098

-

-

-

Others

9,709

-

-

-

-

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

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

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

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

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

11,959

3,098

-

-

-

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

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

-

-

-

DEPRECIATION (as per notes to P&L)

62,629

49,137

24,479

26,109

24,613

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

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

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

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

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

62,629

49,137

24,479

26,109

24,613

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

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

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

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

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

 

 

 

 

BALANCE SHEET

 

 

ASIA GLOBAL EXIM SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

2,700,579

689,949

98,503

118,853

133,732

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

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

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

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

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

TOTAL LONG TERM ASSETS

2,700,579

689,949

98,503

118,853

133,732

Stocks

1,256,577

871,538

1,021,943

1,316,416

1,411,101

Trade debtors

2,015,532

3,070,179

3,050,630

2,445,478

1,611,853

Other debtors, deposits & prepayments

72,950

135,743

613,541

176,825

414,291

Cash & bank balances

324,180

462,569

250,685

137,563

33,634

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

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

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

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

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

TOTAL CURRENT ASSETS

3,669,239

4,540,029

4,936,799

4,076,282

3,470,879

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

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

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

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

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

TOTAL ASSET

6,369,818

5,229,978

5,035,302

4,195,135

3,604,611

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

1,708,884

2,735,214

3,299,753

2,402,675

1,783,813

Other creditors & accruals

142,944

791,211

28,358

28,006

16,933

Hire purchase & lease creditors

54,880

79,594

-

-

-

Amounts owing to director

475,142

125,663

339,157

561,660

650,484

Provision for taxation

9,479

40,658

11,757

4,006

4,024

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

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

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

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

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

TOTAL CURRENT LIABILITIES

2,391,329

3,772,340

3,679,025

2,996,347

2,455,254

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,277,910

767,689

1,257,774

1,079,935

1,015,625

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

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

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

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

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

TOTAL NET ASSETS

3,978,489

1,457,638

1,356,277

1,198,788

1,149,357

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

2,000,000

1,000,000

1,000,000

1,000,000

1,000,000

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

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

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

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

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

TOTAL SHARE CAPITAL

2,000,000

1,000,000

1,000,000

1,000,000

1,000,000

Retained profit/(loss) carried forward

607,822

447,426

343,341

185,760

142,109

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

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

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

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

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

TOTAL RESERVES

607,822

447,426

343,341

185,760

142,109

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

2,607,822

1,447,426

1,343,341

1,185,760

1,142,109

Long term loans

1,360,455

-

-

-

-

Deferred taxation

10,212

10,212

12,936

13,028

7,248

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

1,370,667

10,212

12,936

13,028

7,248

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

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

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

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

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

3,978,489

1,457,638

1,356,277

1,198,788

1,149,357

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

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

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

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

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

 

 

 

 

FINANCIAL RATIO

 

 

ASIA GLOBAL EXIM SDN. BHD.

 

TYPES OF FUNDS

Cash

324,180

462,569

250,685

137,563

33,634

Net Liquid Funds

324,180

462,569

250,685

137,563

33,634

Net Liquid Assets

21,333

(103,849)

235,831

(236,481)

(395,476)

Net Current Assets/(Liabilities)

1,277,910

767,689

1,257,774

1,079,935

1,015,625

Net Tangible Assets

3,978,489

1,457,638

1,356,277

1,198,788

1,149,357

Net Monetary Assets

(1,349,334)

(114,061)

222,895

(249,509)

(402,724)

BALANCE SHEET ITEMS

Total Borrowings

1,415,335

79,594

0

0

0

Total Liabilities

3,761,996

3,782,552

3,691,961

3,009,375

2,462,502

Total Assets

6,369,818

5,229,978

5,035,302

4,195,135

3,604,611

Net Assets

3,978,489

1,457,638

1,356,277

1,198,788

1,149,357

Net Assets Backing

2,607,822

1,447,426

1,343,341

1,185,760

1,142,109

Shareholders' Funds

2,607,822

1,447,426

1,343,341

1,185,760

1,142,109

Total Share Capital

2,000,000

1,000,000

1,000,000

1,000,000

1,000,000

Total Reserves

607,822

447,426

343,341

185,760

142,109

LIQUIDITY (Times)

Cash Ratio

0.14

0.12

0.07

0.05

0.01

Liquid Ratio

1.01

0.97

1.06

0.92

0.84

Current Ratio

1.53

1.20

1.34

1.36

1.41

WORKING CAPITAL CONTROL (Days)

Stock Ratio

14

11

12

18

25

Debtors Ratio

22

37

37

34

29

Creditors Ratio

19

34

41

35

33

SOLVENCY RATIOS (Times)

Gearing Ratio

0.54

0.05

0.00

0.00

0.00

Liabilities Ratio

1.44

2.61

2.75

2.54

2.16

Times Interest Earned Ratio

17.32

54.79

0.00

0.00

0.00

Assets Backing Ratio

1.99

1.46

1.36

1.20

1.15

PERFORMANCE RATIO (%)

Operating Profit Margin

0.58

0.55

0.64

0.25

0.34

Net Profit Margin

0.48

0.34

0.53

0.17

0.32

Return On Net Assets

5.21

11.65

14.15

5.38

6.15

Return On Capital Employed

5.14

11.04

14.15

5.38

6.15

Return On Shareholders' Funds/Equity

6.15

7.19

11.73

3.68

5.80

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. 63.89

UK Pound

1

Rs. 97.97

Euro

1

Rs. 71.81

 

INFORMATION DETAILS

 

Analysis Done by :

RSM

 

 

Report Prepared by :

DPT

 

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.