MIRA INFORM REPORT

 

 

Report No. :

320871

Report Date :

07.05.2015

           

IDENTIFICATION DETAILS

 

Name :

PM STEEL AND ALLOYS INDUSTRIES SDN. BHD.

 

 

Formerly Known As :

PM FUTURE VISIONS SDN BHD

 

 

Registered Office :

177 A, Jalan Batu Tiga Lama, 41300 Klang, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

10.03.2003

 

 

Com. Reg. No.:

608386-A

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Dealer in all kinds of scrap metals.

 

 

No. of Employees :

Not Available

 

 

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.

:

608386-A

COMPANY NAME

:

PM STEEL AND ALLOYS INDUSTRIES SDN. BHD.

FORMER NAME

:

PM FUTURE VISIONS SDN BHD (18/03/2005)

INCORPORATION DATE

:

10/03/2003

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

177A, JALAN BATU TIGA LAMA, 41300 KLANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

1, LENGKOK KELULI 2, KAWASAN PERUSAHAAN BUKIT RAJAH, 41050 KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-33423093

FAX.NO.

:

03-33423152

CONTACT PERSON

:

SHANMUGANATHAN A/L V.VELUCHETTY ( DIRECTOR )

INDUSTRY CODE

:

46698

PRINCIPAL ACTIVITY

:

DEALER IN ALL KINDS OF SCRAP METALS

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 3,000,000.00 DIVIDED INTO
ORDINARY SHARES 3,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 110,268,663 [2013]

NET WORTH

:

MYR 7,952,933 [2013]

STAFF STRENGTH

:

N/A

BANKER (S)

 

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

SLOW BUT CORRECT

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) dealer in all kinds of scrap metals.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

15/02/2012

MYR 5,000,000.00

MYR 3,000,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. SHANMUGANATHAN A/L V.VELUCHETTY +

2, JALAN MAHKOTA 1, BANDAR BARU KLANG, 41150 KLANG, SELANGOR, MALAYSIA.

611120-71-5063 8210040

1,301,500.00

43.38

MS. PUSHPAVALLI A/P PUNUSAMY +

2, JALAN MAHKOTA 1, BANDAR BARU KLANG, SELANGOR, MALAYSIA.

661211-02-5004 A0540196

773,000.00

25.77

RAJESHKUMAR DHANMAL JAIN +

726-14A, JALAN SUNGAI RASA, PADANG JAWA, 41300 KLANG, SELANGOR, MALAYSIA.

F8310318

417,000.00

13.90

SAPANA RAJESHKUMAR JAIN

2, JLN MAHKOTA 1, BDR BARU KLANG, 41150 KLANG, SELANGOR, MALAYSIA.

G 3911790

508,500.00

16.95

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

------

3,000,000.00

100.00

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

=====

+ Also Director



DIRECTORS

DIRECTOR 1

 

Name Of Subject

:

RAJESHKUMAR DHANMAL JAIN

Address

:

726-14A, JALAN SUNGAI RASA, PADANG JAWA, 41300 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

F8310318

Date of Appointment

:

12/02/2007

 

DIRECTOR 2

 

Name Of Subject

:

MS. PUSHPAVALLI A/P PUNUSAMY

Address

:

2, JALAN MAHKOTA 1, BANDAR BARU KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

A0540196

New IC No

:

661211-02-5004

Date of Birth

:

11/12/1966

Nationality

:

MALAYSIAN

Date of Appointment

:

10/03/2003

 

DIRECTOR 3

 

Name Of Subject

:

MR. SHANMUGANATHAN A/L V.VELUCHETTY

Address

:

2, JALAN MAHKOTA 1, BANDAR BARU KLANG, 41150 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

8210040

New IC No

:

611120-71-5063

Date of Birth

:

20/11/1961

Nationality

:

MALAYSIAN

Date of Appointment

:

10/03/2003



MANAGEMENT

 

 

 

1)

Name of Subject

:

SHANMUGANATHAN A/L V.VELUCHETTY

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

C T ANG & COMPANY

Auditor' Address

:

12A-02-2, LORONG BATU NILAM 4A, BANDAR BUKIT TINGGI, KLANG, SELANGOR, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. S.RAVICHANDER A/L V.SUPPIAH

IC / PP No

:

6753601

New IC No

:

620226-10-5671

Address

:

41, JALAN BATAI LAUT 2, TAMAN BUKIT CEMERLANG, 41300 KLANG, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

 

1)

Name

:

MALAYAN BANKING BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

09/08/2011

N/A

STANDARD CHARTERED BANK MALAYSIA BHD

-

Unsatisfied

2

08/10/2012

N/A

HONG LEONG BANK BERHAD

-

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

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

N/A

Payment Mode

:

CHEQUES

 

 

OPERATIONS

 

Goods Traded

:

ALL KINDS OF SCRAP METALS

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) dealer in all kinds of scrap metals.

The Subject refused to disclose its operation.

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-33423093

Match

:

N/A

Address Provided by Client

:

NO 1 LENGKOK KELULI 2, KAWASAN PEPUAHAN BUKIT RAJ A 41050 KLANG SELANGOR DARUL EHSAN

Current Address

:

1, LENGKOK KELULI 2, KAWASAN PERUSAHAAN BUKIT RAJAH, 41050 KLANG, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 6th May 2015 we contacted one of the staff from the Subject and he provided some information.

The Subject refused to disclose its number of employees.



FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

Return on Shareholder Funds

:

Acceptable

[

10.52%

]

Return on Net Assets

:

Unfavourable

[

8.43%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

Liquidity

Current Ratio

:

Acceptable

[

1.09 Times

]

The Subject has an adequate liquidity position with its current liabilities well covered by its current assets. With its net current assets, the Subject should be able to repay its short term obligations.

Solvency

Liability Ratio

:

Unfavourable

[

3.01 Times

]

The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

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. The Subject's liabilities 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 : 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

46698 : Wholesale of metal and non-metal waste and scrap and materials for recycling

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 2003, the Subject is a Private Limited company, focusing on dealer in all kinds of scrap metals. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. A paid up capital of MYR 3,000,000 allows the Subject to expand its business more comfortably. We considered that the Subject's business position in the market is much dependent on the efforts of its directors.

Over the years, the Subject 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. 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. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 7,952,933, 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 industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

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

 



PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

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

SUMMARY

SUMMARY

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

110,268,663

79,440,908

73,334,646

68,999,209

39,583,820

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

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

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

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

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

Total Turnover

110,268,663

79,440,908

73,334,646

68,999,209

39,583,820

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

1,392,846

980,917

1,604,126

1,014,090

613,952

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,392,846

980,917

1,604,126

1,014,090

613,952

Taxation

(556,349)

(453,808)

(540,276)

(240,455)

(96,247)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

836,497

527,109

1,063,850

773,635

517,705

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

4,116,436

3,589,327

2,525,477

1,751,842

1,667,037

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

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

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

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

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

As restated

4,116,436

3,589,327

2,525,477

1,751,842

1,667,037

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

4,952,933

4,116,436

3,589,327

2,525,477

2,184,742

DIVIDENDS - Ordinary (paid & proposed)

-

-

-

-

(432,900)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

4,952,933

4,116,436

3,589,327

2,525,477

1,751,842

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

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

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

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

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

 

 

BALANCE SHEET

 

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

14,942,903

15,483,665

14,676,266

758,090

458,664

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

190,236

108,229

42,289

-

247,811

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

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

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

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

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

TOTAL LONG TERM ASSETS

15,133,139

15,591,894

14,718,555

758,090

706,475

TOTAL CURRENT ASSETS

16,783,394

15,539,965

7,476,473

10,426,194

7,100,964

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

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

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

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

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

TOTAL ASSET

31,916,533

31,131,859

22,195,028

11,184,284

7,807,439

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

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

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

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

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

TOTAL CURRENT LIABILITIES

15,387,242

-

6,253,472

6,678,722

4,087,859

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,396,152

15,539,965

1,223,001

3,747,472

3,013,105

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

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

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

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

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

TOTAL NET ASSETS

16,529,291

31,131,859

15,941,556

4,505,562

3,719,580

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

3,000,000

3,000,000

3,000,000

1,950,000

1,950,000

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

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

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

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

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

TOTAL SHARE CAPITAL

3,000,000

3,000,000

3,000,000

1,950,000

1,950,000

Retained profit/(loss) carried forward

4,952,933

4,116,436

3,589,327

2,525,477

1,751,842

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

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

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

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

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

TOTAL RESERVES

4,952,933

4,116,436

3,589,327

2,525,477

1,751,842

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

7,952,933

7,116,436

6,589,327

4,475,477

3,701,842

TOTAL LONG TERM LIABILITIES

8,576,358

24,015,423

9,352,229

30,085

17,738

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

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

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

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

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

16,529,291

31,131,859

15,941,556

4,505,562

3,719,580

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

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

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

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

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

 

 

FINANCIAL RATIO

 

 

 

 

TYPES OF FUNDS

Net Liquid Assets

1,396,152

15,539,965

1,223,001

3,747,472

3,013,105

Net Current Assets/(Liabilities)

1,396,152

15,539,965

1,223,001

3,747,472

3,013,105

Net Tangible Assets

16,529,291

31,131,859

15,941,556

4,505,562

3,719,580

Net Monetary Assets

(7,180,206)

(8,475,458)

(8,129,228)

3,717,387

2,995,367

BALANCE SHEET ITEMS

Total Liabilities

23,963,600

24,015,423

15,605,701

6,708,807

4,105,597

Total Assets

31,916,533

31,131,859

22,195,028

11,184,284

7,807,439

Net Assets

16,529,291

31,131,859

15,941,556

4,505,562

3,719,580

Net Assets Backing

7,952,933

7,116,436

6,589,327

4,475,477

3,701,842

Shareholders' Funds

7,952,933

7,116,436

6,589,327

4,475,477

3,701,842

Total Share Capital

3,000,000

3,000,000

3,000,000

1,950,000

1,950,000

Total Reserves

4,952,933

4,116,436

3,589,327

2,525,477

1,751,842

LIQUIDITY (Times)

Current Ratio

1.09

-

1.20

1.56

1.74

SOLVENCY RATIOS (Times)

Liabilities Ratio

3.01

3.37

2.37

1.50

1.11

Assets Backing Ratio

5.51

10.38

5.31

2.31

1.91

PERFORMANCE RATIO (%)

Operating Profit Margin

1.26

1.23

2.19

1.47

1.55

Net Profit Margin

0.76

0.66

1.45

1.12

1.31

Return On Net Assets

8.43

3.15

10.06

22.51

16.51

Return On Capital Employed

8.43

3.15

10.06

22.51

16.51

Return On Shareholders' Funds/Equity

10.52

7.41

16.15

17.29

13.99

Dividend Pay Out Ratio (Times)

-

-

-

-

0.84

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.64

UK Pound

1

Rs.96.81

Euro

1

Rs.71.51

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

VNT

 

               

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.