MIRA INFORM REPORT

 

 

Report No. :

346694

Report Date :

28.10.2015

 

IDENTIFICATION DETAILS

 

Name :

MUTIARA IMPEX METAL SDN. BHD.

 

 

Registered Office :

8-Lg-10, Menara Mutiara Bangsar, Jalan Liku, Off Jalan Riong, Bangsar, 59100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

17.01.2000

 

 

Com. Reg. No.:

503064-W

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

The Subject is principally engaged in the trading of scrap metal.

 

 

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 – 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.

:

503064-W

COMPANY NAME

:

MUTIARA IMPEX METAL SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

17/01/2000

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

8-LG-10, MENARA MUTIARA BANGSAR, JALAN LIKU, OFF JALAN RIONG, BANGSAR, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 349, JALAN 1 OFF JALAN CHAN SOW LIN,, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-92224897

FAX.NO.

:

03-92225897

CONTACT PERSON

:

MURUGESAN A/L GOPAL CHETTIAR ( DIRECTOR )

INDUSTRY CODE

:

46698

PRINCIPAL ACTIVITY

:

TRADING OF SCRAP METAL

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 363,603,038 [2013]

NET WORTH

:

MYR 8,129,109 [2013]

STAFF STRENGTH

:

n/a [2015]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

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 scrap metal.

 

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

 

Former Address(es)

Address

As At Date

2338, JLN SG BESI, BATU 4 1/2, SALAK SOUTH, KUALA LUMPUR, 57100, WILAYAH PERSEKUTUAN, MALAYSIA

N/A

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

29/01/2013

MYR 5,000,000.00

MYR 3,000,000.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

ANIMUTHU MANICKAM +

BLOK 16 WINNER COURT B,16-8-9, TAMAN DESA PETALING, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Z1807766

1,200,000.00

40.00

MR. MURUGESAN A/L GOPAL CHETTIAR +

BLOK 16, WINNER COURT B, 16-3-1, TAMAN DESA PETALING, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

690902-07-5177 A1362093

1,050,000.00

35.00

MR. LOGANATHAN A/L CHINDAMBARAM +

714,JALAN LORONG,, OFF JALAN SUNGAI BESI, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

660422-08-6531 A0757257

750,000.00

25.00

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

------

3,000,000.00

100.00

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

=====

 

+ Also Director

 

Former Shareholder(s) :

Name

Country

IC/PP/Loc No

Shareholding

Last Updated

ANIMUTHU MANICKAM

MALAYSIA

L3899439

1,200,000.00

02/10/2014

GOPAL CHETTIAR A/L THANUKODI

MALAYSIA

340903-71-5025

N/A

N/A

 

 

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. LOGANATHAN A/L CHINDAMBARAM

Address

:

714,JALAN LORONG,, OFF JALAN SUNGAI BESI, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A0757257

New IC No

:

660422-08-6531

Date of Birth

:

22/04/1966

Nationality

:

MALAYSIAN

Date of Appointment

:

17/01/2000

 

DIRECTOR 2

 

Name Of Subject

:

MR. MURUGESAN A/L GOPAL CHETTIAR

Address

:

BLOK 16, WINNER COURT B, 16-3-1, TAMAN DESA PETALING, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A1362093

New IC No

:

690902-07-5177

Date of Birth

:

02/09/1969

Nationality

:

MALAYSIAN

Date of Appointment

:

17/01/2000

 

DIRECTOR 3

 

Name Of Subject

:

ANIMUTHU MANICKAM

Address

:

BLOK 16 WINNER COURT B,16-8-9, TAMAN DESA PETALING, 57100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

Z1807766

Date of Appointment

:

09/07/2002



MANAGEMENT

 

 

1)

Name of Subject

:

MURUGESAN A/L GOPAL CHETTIAR

Position

:

DIRECTOR

 

AUDITOR


No Auditor found in our databank 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. BALAMURUGAN A/L TANGA RAJOO

New IC No

:

831207-01-5873

Address

:

1059, JALAN TERATAI 36/35, BANDAR INDAHPURA, 81000 KULAI, JOHOR, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

2)

Name

:

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

18/04/2001

N/A

BUMIPUTRACOMMERCE BANK BERHAD

MYR 100,000.00

Unsatisfied

2

17/01/2003

N/A

BUMIPUTRACOMMERCE BANK BERHAD

MYR 300,000.00

Unsatisfied

3

09/10/2003

N/A

BUMIPUTRACOMMERCE BANK BERHAD

MYR 254,000.00

Unsatisfied

4

05/11/2004

N/A

BUMIPUTRA COMMERCE BANK BERHAD

MYR 600,000.00

Unsatisfied

5

07/03/2007

N/A

AFFIN ISLAMIC BANK BERHAD

-

Satisfied

6

05/04/2007

N/A

AFFIN ISLAMIC BANK BERHAD

-

Satisfied

7

05/04/2007

N/A

AFFIN ISLAMIC BANK BERHAD

-

Satisfied

8

13/04/2007

N/A

AFFIN ISLAMIC BANK BERHAD

-

Satisfied

9

13/04/2007

N/A

AFFIN ISLAMIC BANK BERHAD

-

Satisfied

10

28/07/2008

N/A

CIMB BANK BERHAD

-

Unsatisfied

11

04/02/2010

N/A

RHB ISLAMIC BANK BERHAD

-

Unsatisfied

12

04/02/2010

N/A

RHB ISLAMIC BANK BERHAD

-

Unsatisfied

13

17/07/2012

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD.

-

Unsatisfied

14

06/08/2012

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD.

-

Unsatisfied

15

06/08/2012

N/A

UNITED OVERSEAS BANK (MALAYSIA) BHD.

-

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 disclose its suppliers, 

 

CLIENTELE

 

Local

:

N/A

Overseas

:

N/A


The Subject refused to disclose its clientele. 

 

OPERATIONS

 

Goods Traded

:

SCRAP METAL

 

Total Number of Employees:

YEAR

2015

COMPANY

n/a

 

Branch

:

NO

 

Other Information:


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

The Subject deals scrap metals. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-92224897

Match

:

N/A

Address Provided by Client

:

LOT 349 JALAN 1 OFF JALAN CHAN, SOW LIN 55200 KUALA LUMPUR

Current Address

:

LOT 349, JALAN 1 OFF JALAN CHAN SOW LIN,, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


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

The Subject refused to disclose its number of employees and bankers.

FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

9.51%

]

Profit/(Loss) Before Tax

:

Decreased

[

27.30%

]

Return on Shareholder Funds

:

Unfavourable

[

6.55%

]

Return on Net Assets

:

Unfavourable

[

7.47%

]

The higher turnover could be attributed to the favourable market condition.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Liquidity

Current Ratio

:

Acceptable

[

1.29 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

[

1.99 Times

]

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

Overall Assessment :

Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. 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

3.2

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

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 2000, the Subject is a Private Limited company, focusing on trading of scrap metal. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. A paid up capital of MYR 3,000,000 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. 

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. 

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject 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 8,129,109, the Subject should be able to maintain its business in the near terms. 

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)

MUTIARA IMPEX METAL SDN. BHD.

 

Financial Year End

2013-12-31

2012-12-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

SUMMARY

SUMMARY

Currency

MYR

MYR

TURNOVER

363,603,038

332,032,500

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

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

Total Turnover

363,603,038

332,032,500

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

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

PROFIT/(LOSS) FROM OPERATIONS

748,927

1,030,198

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

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

PROFIT/(LOSS) BEFORE TAXATION

748,927

1,030,198

Taxation

(216,782)

(295,540)

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

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

PROFIT/(LOSS) AFTER TAXATION

532,145

734,658

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

4,596,964

3,862,306

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

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

As restated

4,596,964

3,862,306

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,129,109

4,596,964

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

5,129,109

4,596,964

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

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

 

BALANCE SHEET

 

MUTIARA IMPEX METAL SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

5,934,082

6,156,237

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

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

TOTAL LONG TERM ASSETS

5,934,082

6,156,237

TOTAL CURRENT ASSETS

18,369,799

18,730,781

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

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

TOTAL ASSET

24,303,881

24,887,018

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

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

TOTAL CURRENT LIABILITIES

14,278,582

15,037,121

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

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

NET CURRENT ASSETS/(LIABILITIES)

4,091,217

3,693,660

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

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

TOTAL NET ASSETS

10,025,299

9,849,897

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

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

SHARE CAPITAL

Ordinary share capital

3,000,000

3,000,000

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

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

TOTAL SHARE CAPITAL

3,000,000

3,000,000

Retained profit/(loss) carried forward

5,129,109

4,596,964

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

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

TOTAL RESERVES

5,129,109

4,596,964

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

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

SHAREHOLDERS' FUNDS/EQUITY

8,129,109

7,596,964

TOTAL LONG TERM LIABILITIES

1,896,190

2,252,933

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

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

10,025,299

9,849,897

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

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

 

 

 

 

FINANCIAL RATIO

 

MUTIARA IMPEX METAL SDN. BHD.

 

TYPES OF FUNDS

Net Liquid Assets

4,091,217

3,693,660

Net Current Assets/(Liabilities)

4,091,217

3,693,660

Net Tangible Assets

10,025,299

9,849,897

Net Monetary Assets

2,195,027

1,440,727

BALANCE SHEET ITEMS

Total Liabilities

16,174,772

17,290,054

Total Assets

24,303,881

24,887,018

Net Assets

10,025,299

9,849,897

Net Assets Backing

8,129,109

7,596,964

Shareholders' Funds

8,129,109

7,596,964

Total Share Capital

3,000,000

3,000,000

Total Reserves

5,129,109

4,596,964

LIQUIDITY (Times)

Current Ratio

1.29

1.25

SOLVENCY RATIOS (Times)

Liabilities Ratio

1.99

2.28

Assets Backing Ratio

3.34

3.28

PERFORMANCE RATIO (%)

Operating Profit Margin

0.21

0.31

Net Profit Margin

0.15

0.22

Return On Net Assets

7.47

10.46

Return On Capital Employed

7.47

10.46

Return On Shareholders' Funds/Equity

6.55

9.67

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.95

UK Pound

1

Rs.99.73

Euro

1

Rs.71.84

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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.