MIRA INFORM REPORT

Report No. :	348118
Report Date :	07.11.2015

IDENTIFICATION DETAILS

Name :	RAVIRAJ SDN. BHD.
Registered Office :	Suite C, 1311, Jalan Baru, Taman Chai Leng, 1st Floor, 13700 Perai, Pulau Pinang
Country :	Malaysia
Financials (as on) :	30.06.2014
Date of Incorporation :	08.07.1991
Com. Reg. No.:	220400-A
Legal Form :	Private Limited
Line of Business :	Subject is engaged in trading of food & beverages product.
No. of Employees :	45

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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Malaysia	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

MALAYSIA - ECONOMIC OVERVIEW

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration 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. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. As an oil and gas exporter, Malaysia has previously profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is trying to lessen its dependence on state oil producer Petronas.

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB 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.

:

220400-A

COMPANY NAME

:

RAVIRAJ SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

08/07/1991

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE C, 1311, JALAN BARU, TAMAN CHAI LENG, 1ST FLOOR, 13700 PERAI, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

15 (LOT 1159), MUKIM 15, JALAN SELADANG ALMA, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-5525845

FAX.NO.

:

04-5521745

EMAIL

:

ENRICO@STREAMYX.COM

WEB SITE

:

WWW.ENRICO.COM.MY

CONTACT PERSON

:

V.RAJENAN A/L VELAYUDHAN NA ( DIRECTOR )

INDUSTRY CODE

:

46329

PRINCIPAL ACTIVITY

:

TRADING OF FOOD & BEVERAGES PRODUCT

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 4,940,210.00 DIVIDED INTO 
ORDINARY SHARES 270,002 CASH AND 4,670,208 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 93,135,079 [2014]

NET WORTH

:

MYR 7,418,172 [2014]

STAFF STRENGTH

:

45 [2015]

BANKER (S)

:

BANK MUAMALAT MALAYSIA BHD MALAYAN BANKING BHD PUBLIC BANK BHD RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

SLOW BUT CORRECT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

HIGH

CURRENCY EXPOSURE

:

HIGH

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 food & beverages product.

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

Former Address(es)

Address	As At Date
15,LOT 1159,MK.15, JALAN SELADANG ALMA, BUKIT MERTAJAM,PENANG, 14000, PULAU PINANG, MALAYSIA	15/02/2013

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
31/12/2014	MYR 5,000,000.00	MYR 4,940,210.00
22/10/2007	MYR 5,000,000.00	MYR 3,908,117.00
28/04/2004	MYR 5,000,000.00	MYR 2,397,618.00
29/01/2001	MYR 5,000,000.00	MYR 1,296,010.00

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

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
MR. V. RAJENAN A/L VELAYUDHAN NAIR +	15, LEBUH PASAR, 10200 GEORGE TOWN, PULAU PINANG, MALAYSIA.	650213-01-5439 A0075442	4,298,864.00	87.02
MR. RAVINDRAN A/L RAMALINGAM +	76, TAMAN PELANGI, 32400 AYER TAWAR, PERAK, MALAYSIA.	620826-08-6101 7038402	641,346.00	12.98
			---------------	------
			4,940,210.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MR. RAVINDRAN A/L RAMALINGAM
Address	:	76, TAMAN PELANGI, 32400 AYER TAWAR, PERAK, MALAYSIA.
IC / PP No	:	7038402
New IC No	:	620826-08-6101
Date of Birth	:	26/08/1962
Nationality	:	MALAYSIAN
Date of Appointment	:	08/07/1991

DIRECTOR 2

Name Of Subject	:	MR. V. RAJENAN A/L VELAYUDHAN NAIR
Address	:	15, LEBUH PASAR, 10200 GEORGE TOWN, PULAU PINANG, MALAYSIA.
IC / PP No	:	A0075442
New IC No	:	650213-01-5439
Date of Birth	:	13/02/1965
Nationality	:	MALAYSIAN
Date of Appointment	:	08/07/1991

MANAGEMENT

1)	Name of Subject	:	V.RAJENAN A/L VELAYUDHAN NA
	Position	:	DIRECTOR

AUDITOR

Auditor	:	NORHASHIMAH & PARTNERS
Auditor' Address	:	24 B, LEBUH BUCKINGHAM, 10200 GEORGE TOWN, PULAU PINANG, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MR. ARVIND A/L U GOPI KUMAR
	New IC No	:	850128-02-5663
	Address	:	10, LORONG 4, TAMAN MELATI, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

BANK MUAMALAT MALAYSIA BHD

2)

Name

:

MALAYAN BANKING BHD

3)

Name

:

PUBLIC BANK BHD

4)

Name

:

RHB BANK BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	22/06/2000	CHARGE	PUBLIC BANK BERHAD	MYR 300,000.00	Satisfied
2	22/06/2000	CHARGE	PUBLIC BANK BERHAD	MYR 300,000.00	Satisfied
3	02/07/2001	N/A	BANK MUAMALAT MALAYSIA BERHAD	MYR 2,500,000.00	Satisfied
4	26/02/2002	CHARGE	PUBLIC BANK BERHAD	MYR 110,000.00	Satisfied
5	26/02/2002	CHARGE	PUBLIC BANK BERHAD	MYR 540,000.00	Satisfied
6	01/10/2002	N/A	BANK MUAMALAT MALAYSIA BERHAD	MYR 4,650,000.00	Satisfied
7	05/06/2003	AGREEMENT & 1ST CHARGE	PUBLIC BANK BERHAD	MYR 1.00	Satisfied
8	24/03/2004	AGREEMENT & 1ST PARTY 2ND CHARGE	PUBLIC BANK BERHAD	MYR 1.00	Satisfied
11	06/10/2004	FACILITIES AGREEMENT	PUBLIC BANK BERHAD	-	Unsatisfied
9	15/10/2004	1ST PARTY	MALAYAN BANKING BHD	MYR 7,100,000.00	Unsatisfied
10	15/10/2004	1ST PARTY 2ND CHARGE	MALAYAN BANKING BHD	MYR 3,200,000.00	Unsatisfied
12	28/02/2008	FACILITY AGREEMENT	PUBLIC BANK BHD	MYR 2,500,000.00	Unsatisfied
13	26/09/2008	MEMO OF DEPOSIT, LETTER OF SETOFF, LC-I FACILITY AGREEMENT & SG-I FACILITY AGREEMENT	AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BERHAD	-	Satisfied
14	14/10/2011	FACILITY AGREEMENT	MALAYAN BANKING BERHAD	MYR 2,000,000.00	Unsatisfied
15	09/05/2012	LETTER OF SET-OFF	RHB BANK BERHAD	-	Unsatisfied
16	27/07/2012	FIRST PARTY CHARGE	RHB BANK BERHAD	-	Unsatisfied
17	19/06/2013	LETTER OF SET-OFF	RHB BANK BHD	-	Unsatisfied
18	12/01/2014	FACILITY AGREEMENT AND MEMORANDUM OF DEPOSIT	BANK MUAMALAT MALAYSIA BERHAD	MYR 4,600,000.00	Unsatisfied
19	12/03/2014	FACILITY AGREEMENT AND FIRST PARTY FOURTH LEGAL CHARGE	MALAYAN BANKING BERHAD	MYR 2,000,000.00	Unsatisfied
20	23/07/2015	FIRST PARTY LEGAL CHARGE	MALAYAN BANKING 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	Percentage	:	40%
Overseas	:	YES	Percentage	:	60%
Import Countries	:	INDIA,NEW ZEALAND

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	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES	Percentage	:	100%
Domestic Markets	:	MALAYSIA
Overseas	:	NO
Credit Term	:	AS AGREED
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)
Type of Customer	:	RETAIL,SUPERMARKETS,DEALERS

OPERATIONS

Goods Traded

:

FOOD PRODUCTS,HOUSEHOLD PRODUCT

Services

:

PACKAGING SERVICES

Award

:

1 ) GOLDEN BULL AWARD Year :2007

Member(s) / Affiliate(s)

:

MALAYSIA FOOD & BEVERAGE INDUSTRY

Ownership of premises

:

OWNED

Total Number of Employees:
YEAR	2015	2014	2011
GROUP	N/A	N/A	N/A
COMPANY	45	40	40

Branch

:

YES

Other Information:

The Subject is principally engaged in the (as a / as an) trading of food & beverages product. 

The Subject offers a wide range of consumer goods includes dairy products, tea, textured vegetarian products, Indian spices, lentils and prayer items.

The Subject acts as the Headquarters and it has branch offices in Pulau Pinang, Perak, Selangor and Johor.

The Subject's products conform to Food Safety Policies and Good Manufacturing Practise to ensure that product quality and customer satisfaction is not compromised. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	04-5525845
Match	:	N/A
Address Provided by Client	:	15 (LOT 1159), MUKIM 15, JALAN SELADANG ALMA,14000,BUKIT TENGAH,PULAU PINANG.
Current Address	:	15 (LOT 1159), MUKIM 15, JALAN SELADANG ALMA, 14000 BUKIT MERTAJAM, PULAU PINANG, 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	[	2010 - 2014	]
Profit/(Loss) Before Tax	:	Increased	[	2010 - 2014	]
Return on Shareholder Funds	:	Unfavourable	[	8.85%	]
Return on Net Assets	:	Favourable	[	33.07%	]
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	[	34 Days	]
Debtor Ratio	:	Favourable	[	49 Days	]
Creditors Ratio	:	Favourable	[	7 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	:	Unfavourable	[	0.74 Times	]
Current Ratio	:	Unfavourable	[	1.05 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	[	1.48 Times	]
Gearing Ratio	:	Unfavourable	[	3.51 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 :
Generally, the Subject's performance has improved with higher turnover and profit. 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	3.2	4.0
Unemployment Rate	3.3	3.2	3.0	2.9	3.0
Net International Reserves ( MYR Billion )	415	427	-	417	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	3.50	2.20	-	4.00	-
Average 3 Months of Non-performing Loans ( % )	14.80	14.70	-	-	-
Average Base Lending Rate ( % )	6.60	6.53	6.53	6.85	-
Business Loans Disbursed( % )	15.3	32.2	-	56.0	-
Foreign Investment ( MYR Million )	23,546.1	26,230.4	38,238.0	43,486.6	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	45,455	45,441	46,321	49,144	-
Registration of New Companies ( % )	3.0	(0.0)	1.9	6.1	-
Liquidation of Companies ( No. )	132,485	17,092	26,430	21,753	-
Liquidation of Companies ( % )	417.8	(87.1)	54.6	(17.7)	-
Registration of New Business ( No. )	284,598	324,761	329,895	332,723	-
Registration of New Business ( % )	5.0	14.0	2.0	1.0	-
Business Dissolved ( No. )	20,121	20,380	18,161	21,436	-
Business Dissolved ( % )	1.9	1.3	(10.9)	18.0	-
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	63.2	-
Credit Cards Spending ( % )	15.6	12.6	-	13.5	-
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)	-	-	3.0	-
Other Mining	-	-	-	46.6	-
Industry Non-performing Loans ( MYR Million )	46.5	-	-	-	-
% of Industry Non-performing Loans	0.1	-	-	-	-
Manufacturing #	4.7	4.8	3.4	6.4	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	1.4	-
Plastic Products	3.8	-	-	2.7	-
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	-	-	13.0	-
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
46329 : Wholesale of other foodstuffs
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 1991, the Subject is a Private Limited company, focusing on trading of food & beverages product. 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. A paid up capital of MYR 4,940,210 allows the Subject to expand its business more comfortably. However, the Subject does not have strong shareholders’ backing. Without a strong shareholders' backing, the opportunity of the Subject to expand its business is limited.

Investigation revealed that the Subject concentrates only on the local market. This narrow market segment has placed the Subject at high business risk and limits its business expansion opportunities. Any adverse changes to the local economy might have a negative impact on the Subject's business performance. The Subject is operating on a medium scale and it has approximately 45 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. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to 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. 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 7,418,172, 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. 

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms.

In view of the above, we recommend credit be granted to the Subject with close monitoring.

PROFIT AND LOSS ACCOUNT

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

RAVIRAJ SDN. BHD.

Financial Year End	2014-06-30	2013-06-30	2012-06-30	2011-06-30	2010-06-30
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	SUMMARY	SUMMARY	SUMMARY
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	93,135,079	82,341,552	74,448,462	71,920,654	68,177,178
	----------------	----------------	----------------	----------------	----------------
Total Turnover	93,135,079	82,341,552	74,448,462	71,920,654	68,177,178
Costs of Goods Sold	(83,983,838)	(73,899,888)	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	9,151,241	8,441,664	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	913,942	810,187	736,628	666,339	608,823
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	913,942	810,187	736,628	666,339	608,823
Taxation	(257,585)	(325,443)	(196,590)	(127,540)	(448,995)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	656,357	484,744	540,038	538,799	159,828
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	1,821,605	1,336,861	1,828,916	1,290,117	1,130,289
	----------------	----------------	----------------	----------------	----------------
As restated	1,821,605	1,336,861	1,828,916	1,290,117	1,130,289
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	2,477,962	1,821,605	2,368,954	1,828,916	1,290,117
TRANSFER TO RESERVES - General	-	-	(1,032,093)	-	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	2,477,962	1,821,605	1,336,861	1,828,916	1,290,117
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Hire purchase	72,912	53,135	-	-	-
Term loan / Borrowing	1,825,252	1,853,471	-	-	-
	----------------	----------------	----------------	----------------	----------------
	1,898,164	1,906,606	-	-	-
	=============	=============	-	-	-
DEPRECIATION (as per notes to P&L)	669,639	534,342	-	-	-
	----------------	----------------	----------------	----------------	----------------
	669,639	534,342	-	-	-
	=============	=============

BALANCE SHEET

RAVIRAJ SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	6,918,296	6,423,115	6,171,815	5,663,170	5,821,125
Others	91,657	113,384	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	91,657	113,384	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	7,009,953	6,536,499	6,171,815	5,663,170	5,821,125
Stocks	8,778,251	4,258,158	-	-	-
Trade debtors	12,575,073	12,580,923	-	-	-
Other debtors, deposits & prepayments	1,249,629	1,044,552	-	-	-
Short term deposits	6,280,802	6,402,941	-	-	-
Cash & bank balances	811,646	363,600	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	29,695,401	24,650,174	23,817,587	23,808,760	22,420,799
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	36,705,354	31,186,673	29,989,402	29,471,930	28,241,924
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	1,610,973	1,336,041	-	-	-
Other creditors & accruals	1,578,990	1,168,940	-	-	-
Hire purchase & lease creditors	449,373	290,380	-	-	-
Short term borrowings/Term loans	-	70,063	-	-	-
Bill & acceptances payable	24,504,414	20,504,133	-	-	-
Amounts owing to director	12,413	12,413	-	-	-
Provision for taxation	46,459	203,961	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	28,202,622	23,585,931	23,074,092	23,116,732	21,884,882
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	1,492,779	1,064,243	743,495	692,028	535,917
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	8,502,732	7,600,742	6,915,310	6,355,198	6,357,042
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	4,940,210	4,940,210	4,940,210	3,908,117	3,908,117
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	4,940,210	4,940,210	4,940,210	3,908,117	3,908,117
Retained profit/(loss) carried forward	2,477,962	1,821,605	1,336,861	1,828,916	1,290,117
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	2,477,962	1,821,605	1,336,861	1,828,916	1,290,117
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	7,418,172	6,761,815	6,277,071	5,737,033	5,198,234
Hire purchase creditors	1,084,560	838,927	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	1,084,560	838,927	638,239	618,165	1,158,808
	----------------	----------------	----------------	----------------	----------------
	8,502,732	7,600,742	6,915,310	6,355,198	6,357,042
	=============	=============	=============	=============	=============

FINANCIAL RATIO

RAVIRAJ SDN. BHD.

TYPES OF FUNDS
Cash	7,092,448	6,766,541	-	-	-
Net Liquid Funds	(17,411,966)	(13,737,592)	-	-	-
Net Liquid Assets	(7,285,472)	(3,193,915)	743,495	692,028	535,917
Net Current Assets/(Liabilities)	1,492,779	1,064,243	743,495	692,028	535,917
Net Tangible Assets	8,502,732	7,600,742	6,915,310	6,355,198	6,357,042
Net Monetary Assets	(8,370,032)	(4,032,842)	105,256	73,863	(622,891)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	2,812,106	2,716,793	-	-	-
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	3,481,745	3,251,135	-	-	-
BALANCE SHEET ITEMS
Total Borrowings	26,038,347	21,703,503	-	-	-
Total Liabilities	29,287,182	24,424,858	23,712,331	23,734,897	23,043,690
Total Assets	36,705,354	31,186,673	29,989,402	29,471,930	28,241,924
Net Assets	8,502,732	7,600,742	6,915,310	6,355,198	6,357,042
Net Assets Backing	7,418,172	6,761,815	6,277,071	5,737,033	5,198,234
Shareholders' Funds	7,418,172	6,761,815	6,277,071	5,737,033	5,198,234
Total Share Capital	4,940,210	4,940,210	4,940,210	3,908,117	3,908,117
Total Reserves	2,477,962	1,821,605	1,336,861	1,828,916	1,290,117
LIQUIDITY (Times)
Cash Ratio	0.25	0.29	-	-	-
Liquid Ratio	0.74	0.86	-	-	-
Current Ratio	1.05	1.05	1.03	1.03	1.02
WORKING CAPITAL CONTROL (Days)
Stock Ratio	34	19	-	-	-
Debtors Ratio	49	56	-	-	-
Creditors Ratio	7	7	-	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	3.51	3.21	-	-	-
Liabilities Ratio	3.95	3.61	3.78	4.14	4.43
Times Interest Earned Ratio	1.48	1.42	-	-	-
Assets Backing Ratio	1.72	1.54	1.40	1.63	1.63
PERFORMANCE RATIO (%)
Operating Profit Margin	0.98	0.98	0.99	0.93	0.89
Net Profit Margin	0.70	0.59	0.73	0.75	0.23
Return On Net Assets	33.07	35.74	10.65	10.48	9.58
Return On Capital Employed	31.41	34.43	10.65	10.48	9.58
Return On Shareholders' Funds/Equity	8.85	7.17	8.60	9.39	3.07
Dividend Pay Out Ratio (Times)	0	0	-	-	-
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.79
UK Pound	1	Rs.99.95
Euro	1	Rs.71.55

INFORMATION DETAILS

Analysis Done by :	HEE
Report Prepared by :	TRU

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.