MIRA INFORM REPORT

 

 

Report No. :

350554

Report Date :

20.11.2015

 

IDENTIFICATION DETAILS

 

Name :

MERLINHAWK ASIA PACIFIC SDN. BHD.

 

 

Registered Office :

Suite 1606, Plaza Pengkalan, Jalan Tiong, 3rd Mile, Jalan Ipoh, 51100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

03.05.1999

 

 

Com. Reg. No.:

482386-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the trading of aviation products , aircraft vibration control equipment.

 

 

No. of Employees :

4 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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.

:

482386-M

COMPANY NAME

:

MERLINHAWK ASIA PACIFIC SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

03/05/1999

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 1606, PLAZA PENGKALAN, JALAN TIONG, 3RD MILE, JALAN IPOH, 51100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

8-1, JALAN USJ 1/1B, UEP SUBANG JAYA, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-80248450

FAX.NO.

:

03-80248470

CONTACT PERSON

:

ALAHAKONE STEVE ( DIRECTOR )

INDUSTRY CODE

:

46594

PRINCIPAL ACTIVITY

:

TRADING OF AVIATION PRODUCTS , AIRCRAFT VIBRATION CONTROL EQUIPMENT

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 150,000.00 DIVIDED INTO 
ORDINARY SHARES 30,000 CASH AND 120,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 14,053,097 [2014]

NET WORTH

:

MYR 1,714,800 [2014]

STAFF STRENGTH

:

4 [2015]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

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 aviation products , aircraft vibration control equipment.

 

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/09/2014

MYR 500,000.00

MYR 150,000.00

23/08/1999

MYR 100,000.00

MYR 30,000.00

03/05/1999

MYR 100,000.00

MYR 2.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. ALAHAKONE STEVE +

21, TAMAN SRI REKO, 43000 KAJANG, SELANGOR, MALAYSIA.

540314-01-5043 8086926

37,500.00

25.00

MERLINHAWK AEROSPACE PRIVATE LIMITED

-

U73100KA2002PTC03114

112,500.00

75.00

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

------

150,000.00

100.00

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

=====

 

+ Also Director

 

Former Shareholder(s) :

Name

Country

IC/PP/Loc No

Shareholding

Last Updated

MERLINHAWK ASSOCIATES PVT.LTD

N/A

XLZ000015174

45,000.00

09/11/2011

 

 

 

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

RAMINENI RAMACHANDRA RAO

Address

:

2B, ELGIN COURT EAGLES STREET, LANGFORD TOWN, BANGALORE, 560025, INDIA.

IC / PP No

:

Z1865162

Date of Birth

:

18/07/1959

Nationality

:

INDIAN

Date of Appointment

:

03/05/1999

 

DIRECTOR 2

 

Name Of Subject

:

MS. RAFIDAH BINTI IBRAHIM

Address

:

0.03, BLOK F, PINGGIRAN BATU CAVES, 68100 BATU CAVES, SELANGOR, MALAYSIA.

IC / PP No

:

A 1221554

New IC No

:

690101-10-9410

Date of Birth

:

01/01/1969

Nationality

:

MALAYSIAN

Date of Appointment

:

18/06/2004

 

DIRECTOR 3

 

Name Of Subject

:

ARNI GOPALASWAMY KRISHNASWAMY

Address

:

201, 'A' CROSS, GOPALASWAMY PUT LAYOUT, J.P. NAGAR, II PHASE, BANGALORE, 560078, INDIA.

IC / PP No

:

K2691519

 

DIRECTOR 4

 

Name Of Subject

:

MR. ALAHAKONE STEVE

Address

:

21, TAMAN SRI REKO, 43000 KAJANG, SELANGOR, MALAYSIA.

IC / PP No

:

8086926

New IC No

:

540314-01-5043

Date of Birth

:

14/03/1954

Nationality

:

MALAYSIAN

Date of Appointment

:

03/05/1999



MANAGEMENT

 

 

1)

Name of Subject

:

ALAHAKONE STEVE

Position

:

DIRECTOR

 

2)

Name of Subject

:

THILAGAM

Position

:

ACCOUNT MANAGER

 

AUDITOR

 

Auditor

:

VELOO & CO

Auditor' Address

:

BLOK A, WISMA YAKIN, JALAN MISJID INDIA, TINGKAT 4, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. VEERAKUMAR A/L V SARAVANAMUTHU

IC / PP No

:

3031067

New IC No

:

490729-02-5435

Address

:

23, JALAN 3/18C, JALAN IPOH BATU 8 1/2, TAMAN MASTIARA, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

2)

Company Secretary

:

MS. RAFIDAH BINTI IBRAHIM

IC / PP No

:

A 1221554

New IC No

:

690101-10-9410

Address

:

0.03, BLOK F, PINGGIRAN BATU CAVES, 68100 BATU CAVES, 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

17/12/2003

FACILITY AGREEMENT

PUBLIC BANK BERHAD

MYR 346,500.00

Unsatisfied

 

LITIGATION CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SUBJECT


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

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

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A


The Subject refused to disclosed its supplier. 

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

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

SINGAPORE

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES

 

OPERATIONS

 

Goods Traded

:

AVIATION PRODUCTS , AIRCRAFT VIBRATION CONTROL EQUIPMENT

 

Total Number of Employees:

YEAR

2015

GROUP

N/A

COMPANY

4

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of aviation products , aircraft vibration control equipment. 

The Subject works closely with leading global manufacturers of Test & Measurement equipment. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-80248450

Match

:

N/A

Address Provided by Client

:

8-1 JALAN USJ 1/1B UEP SUBANG JAYA 47620 SELANGOR MALAYSIA

Current Address

:

8-1, JALAN USJ 1/1B, UEP SUBANG JAYA, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


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

The address provided is incomplete.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Increased

[

2010 - 2014

]

Return on Shareholder Funds

:

Acceptable

[

11.63%

]

Return on Net Assets

:

Acceptable

[

14.69%

]

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.

Working Capital Control

Stock Ratio

:

Favourable

[

53 Days

]

Debtor Ratio

:

Favourable

[

47 Days

]

Creditors Ratio

:

Unfavourable

[

72 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 unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

Liquidity

Liquid Ratio

:

Unfavourable

[

0.77 Times

]

Current Ratio

:

Unfavourable

[

1.55 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

:

Favourable

[

53.05 Times

]

Gearing Ratio

:

Favourable

[

0.02 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. 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. 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

3.2

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

46594 : Wholesale of industrial machinery, equipment and supplies

INDUSTRY :

MACHINERY

Malaysia is presently the leading manufacturer of automation machinery and equipment (M&E) in the ASEAN region with a total of 22 companies in production. The machinery and equipment industry has expanded and produce a diverse range of machinery which give importance to the overall industrial development of the country, due to its cross cutting linkages with all industrial sectors.

Growth of the domestic-oriented industries such as machinery and transportation equipment is expected to remain favourable in 2014, in line with resilient domestic consumption and robust private investment. However, the output of general-purpose machinery decreased 8.8% in the first seven moths of 2014 (January - July 2013: -1.8%) due to the decline in manufacture of air-conditioning machine (-17.9%) as well as lifting and handling equipment (-8.2%).

Besides, shipments of machinery, appliances and parts continued to expand rapidly by 12.5% in the first seven months of 2014 (January - July 2013: 1.4%) with stronger demand from Singapore, the US, China and Australia. Growth was mainly contributed by specialized machinery for specific industries (16.3%), particularly for civil engineering and manufacture of semiconductors as well as general industrial machinery and equipment (9.2%) such as heating and cooling equipment and parts as well as mechanical handling equipment and parts.

According to the World Bank's Doing Business 2014 Report, Malaysia improved to 15th from 25th position in the 2014 Foreign Direct Investment Confidence Index, with highlighted Malaysia's efforts in building its competitive position in electronics, automotive, and machinery manufacturing to move up the value chain into high technology and skill-intensive segments.

The Government has identified the M&E industry to be one of the key areas for growth and development. The growth will focus on the manufacture of high value-added and high technology M&E. For the further development of the M&E industry, six strategic thrusts have been set during the Third Industrial Master Plan (IMP3), 2006 - 2020 period:-

- Promoting Malaysia as a regional production, trading and distribution centre for M&E

- Rising the development and promotion of selected specialized and high technology M&E

- Strengthening the engineering support industries and support services

- Developing Malaysian Standards for machinery and equipment

- Developing sufficient highly skilled workforce

- Strengthening the institutional support for the further development of the industry

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1999, the Subject is a Private Limited company, focusing on trading of aviation products , aircraft vibration control equipment. 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. Presently, the issued and paid up capital of the Subject stands at MYR 150,000. However, with a strong backing from its shareholder, the Subject enjoys timely financial assistance should the needs arise. 

Over the years, 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 4 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. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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 1,714,800, the Subject should be able to maintain its business in the near terms. 

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. 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 promptly.

 

 

PROFIT AND LOSS ACCOUNT

 

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

MERLINHAWK ASIA PACIFIC SDN. BHD.

 

Financial Year End

2014-03-31

2013-03-31

2012-03-31

2011-03-31

2010-03-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

NO

YES

Financial Type

FULL

FULL

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

14,053,097

9,222,597

7,131,667

7,206,659

11,417,774

Other Income

-

10,695

-

-

-

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

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

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

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

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

Total Turnover

14,053,097

9,233,292

7,131,667

7,206,659

11,417,774

Costs of Goods Sold

(12,240,222)

(8,435,947)

-

-

-

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

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

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

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

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

Gross Profit

1,812,875

797,345

-

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

248,890

137,147

83,883

987,482

117,153

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

248,890

137,147

83,883

987,482

117,153

Taxation

(49,543)

(40,885)

-

(212,944)

(46,675)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

199,347

96,262

83,883

774,538

70,478

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

1,365,453

1,269,191

1,185,308

410,770

340,292

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

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

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

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

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

As restated

1,365,453

1,269,191

1,185,308

410,770

340,292

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,564,800

1,365,453

1,269,191

1,185,308

410,770

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,564,800

1,365,453

1,269,191

1,185,308

410,770

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Hire purchase

2,182

2,436

-

-

-

Term loan / Borrowing

2,600

8,656

-

-

-

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

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

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

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

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

4,782

11,092

-

-

-

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

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

-

-

-

DEPRECIATION (as per notes to P&L)

26,420

26,519

-

-

-

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

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

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

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

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

26,420

26,519

-

-

-

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

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

 

 

 

 

 

 

 

BALANCE SHEET

 

MERLINHAWK ASIA PACIFIC SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

287,048

304,697

257,033

266,645

289,808

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

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

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

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

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

TOTAL LONG TERM ASSETS

287,048

304,697

257,033

266,645

289,808

Stocks

2,053,144

5,128,499

-

-

-

Trade debtors

1,792,805

1,309,456

-

-

-

Other debtors, deposits & prepayments

16,096

8,035

-

-

-

Cash & bank balances

208,338

224,304

-

-

-

Others

-

107,462

-

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

4,070,383

6,777,756

3,826,470

3,887,278

3,873,862

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

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

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

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

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

TOTAL ASSET

4,357,431

7,082,453

4,083,503

4,153,923

4,163,670

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

2,424,221

5,139,752

-

-

-

Other creditors & accruals

36,788

144,530

-

-

-

Hire purchase & lease creditors

21,920

20,702

-

-

-

Short term borrowings/Term loans

-

33,912

-

-

-

Amounts owing to director

116,470

160,775

-

-

-

Provision for taxation

31,507

14,954

-

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

2,630,906

5,514,625

2,621,782

2,751,590

3,510,703

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,439,477

1,263,131

1,204,688

1,135,688

363,159

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

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

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

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

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

TOTAL NET ASSETS

1,726,525

1,567,828

1,461,721

1,402,333

652,967

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

150,000

150,000

150,000

150,000

150,000

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

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

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

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

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

TOTAL SHARE CAPITAL

150,000

150,000

150,000

150,000

150,000

Retained profit/(loss) carried forward

1,564,800

1,365,453

1,269,191

1,185,308

410,770

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

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

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

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

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

TOTAL RESERVES

1,564,800

1,365,453

1,269,191

1,185,308

410,770

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,714,800

1,515,453

1,419,191

1,335,308

560,770

Long term loans

-

15,766

-

-

-

Hire purchase creditors

5,650

27,570

-

-

-

Deferred taxation

6,075

9,039

-

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

11,725

52,375

42,530

67,025

92,197

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

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

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

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

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

1,726,525

1,567,828

1,461,721

1,402,333

652,967

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

MERLINHAWK ASIA PACIFIC SDN. BHD.

 

TYPES OF FUNDS

Cash

208,338

224,304

-

-

-

Net Liquid Funds

208,338

224,304

-

-

-

Net Liquid Assets

(613,667)

(3,865,368)

1,204,688

1,135,688

363,159

Net Current Assets/(Liabilities)

1,439,477

1,263,131

1,204,688

1,135,688

363,159

Net Tangible Assets

1,726,525

1,567,828

1,461,721

1,402,333

652,967

Net Monetary Assets

(625,392)

(3,917,743)

1,162,158

1,068,663

270,962

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

253,672

148,239

-

-

-

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

280,092

174,758

-

-

-

BALANCE SHEET ITEMS

Total Borrowings

27,570

97,950

-

-

-

Total Liabilities

2,642,631

5,567,000

2,664,312

2,818,615

3,602,900

Total Assets

4,357,431

7,082,453

4,083,503

4,153,923

4,163,670

Net Assets

1,726,525

1,567,828

1,461,721

1,402,333

652,967

Net Assets Backing

1,714,800

1,515,453

1,419,191

1,335,308

560,770

Shareholders' Funds

1,714,800

1,515,453

1,419,191

1,335,308

560,770

Total Share Capital

150,000

150,000

150,000

150,000

150,000

Total Reserves

1,564,800

1,365,453

1,269,191

1,185,308

410,770

LIQUIDITY (Times)

Cash Ratio

0.08

0.04

-

-

-

Liquid Ratio

0.77

0.30

-

-

-

Current Ratio

1.55

1.23

1.46

1.41

1.10

WORKING CAPITAL CONTROL (Days)

Stock Ratio

53

203

-

-

-

Debtors Ratio

47

52

-

-

-

Creditors Ratio

72

222

-

-

-

SOLVENCY RATIOS (Times)

Gearing Ratio

0.02

0.06

-

-

-

Liabilities Ratio

1.54

3.67

1.88

2.11

6.42

Times Interest Earned Ratio

53.05

13.36

-

-

-

Assets Backing Ratio

11.51

10.45

9.74

9.35

4.35

PERFORMANCE RATIO (%)

Operating Profit Margin

1.77

1.49

1.18

13.70

1.03

Net Profit Margin

1.42

1.04

1.18

10.75

0.62

Return On Net Assets

14.69

9.46

5.74

70.42

17.94

Return On Capital Employed

14.51

9.33

5.74

70.42

17.94

Return On Shareholders' Funds/Equity

11.63

6.35

5.91

58.00

12.57




FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.11

UK Pound

1

Rs.101.03

Euro

1

Rs.70.77

 

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

Report Prepared by :

TPT

 

               

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.