MIRA INFORM REPORT

 

 

Report No. :

341030

Report Date :

16.09.2015

 

IDENTIFICATION DETAILS

 

Name :

INDUSTRIAL TRADE WELL SDN. BHD.

 

 

Registered Office :

139, Jalan Bunus, Off Jalan Masjid India, 2nd Floor, 50100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

03.07.2009

 

 

Com. Reg. No.:

863033-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is supplying industrial equipment to oil and gas petrochemical industries

 

 

No. of Employee :

8 (2014)

 

 

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.

:

863033-K

COMPANY NAME

:

INDUSTRIAL TRADE WELL SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

03/07/2009

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

139, JALAN BUNUS, OFF JALAN MASJID INDIA, 2ND FLOOR, 50100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

S2.27, SOUTH CITY PLAZA, 2ND FLOOR, PERSIARAN SERDANG PERDANA, 43300 BALAKONG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-89416671

FAX.NO.

:

03-89415742

WEB SITE

:

WWW.ITW.COM.MY

CONTACT PERSON

:

GHORBAN RAHIMI GHOLAMALI ( MANAGING DIRECTOR )

INDUSTRY CODE

:

46594

PRINCIPAL ACTIVITY

:

SUPPLYING INDUSTRIAL EQUIPMENT TO OIL AND GAS PETROCHEMICAL INDUSTRIES

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO
ORDINARY SHARES 1,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 6,465,538 [2013]

NET WORTH

:

MYR 376,535 [2013]     

STAFF STRENGTH

:

N/A

BANKER (S)

:

RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

MODERATE

PAYMENT

:

SLOW BUT CORRECT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 


 

HISTORY / BACKGROUND

 

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

The Subject is principally engaged in the (as a / as an) supplying industrial equipment to oil and gas petrochemical industries.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

28/11/2014

MYR 1,000,000.00

MYR 1,000,000.00

29/07/2010

MYR 500,000.00

MYR 500,000.00

03/07/2009

MYR 100,000.00

MYR 3.00

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. HISHAM BIN BABA +

475, JALAN B10, TAMAN MELAWATI, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

640301-04-5743 7249211

700,000.00

70.00

GHORBAN RAHIMI GHOLAMALI +

4-7-7A, TRIVOLI VILLAS CONDOMINIUM, JALAN MEDANG TANDUK, BUKIT BANDARAYA, KUALA LUMPUR, 49100, MALAYSIA.

Z26704872

200,000.00

20.00

ZAHRA DAVOODI ASADOLLAH +

4-7-7A, TRIVOLI VILLAS CONDOMINIUM, JALAN MEDANG TANDUK, BUKIT BANDARAYA, KUALA LUMPUR, 49100, MALAYSIA.

Z26706847

100,000.00

10.00

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

------

1,000,000.00

100.00

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

ZAHRA DAVOODI ASADOLLAH

Address

:

4-7-7A, TRIVOLI VILLAS CONDOMINIUM, JALAN MEDANG TANDUK, BUKIT BANDARAYA, KUALA LUMPUR, 49100, MALAYSIA.

IC / PP No

:

Z26706847

Date of Appointment

:

03/07/2009

 

DIRECTOR 2

 

Name Of Subject

:

GHORBAN RAHIMI GHOLAMALI

Address

:

4-7-7A, TRIVOLI VILLAS CONDOMINIUM, JALAN MEDANG TANDUK, BUKIT BANDARAYA, KUALA LUMPUR, 49100, MALAYSIA.

IC / PP No

:

Z26704872

Date of Appointment

:

03/07/2009

 

DIRECTOR 3

 

Name Of Subject

:

MR. HISHAM BIN BABA

Address

:

475, JALAN B10, TAMAN MELAWATI, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

7249211

New IC No

:

640301-04-5743

Date of Birth

:

01/03/1964

Nationality

:

MALAYSIAN

Date of Appointment

:

03/07/2009



MANAGEMENT

 

 

1)

Name of Subject

:

GHORBAN RAHIMI GHOLAMALI

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

STEVEN LIM & ASSOCIATES

Auditor' Address

:

33-2, JALAN 4/93, TAMAN MIHARJA, LEVEL 2, 55200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 


 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. HISHAM BIN BABA

IC / PP No

:

7249211

New IC No

:

640301-04-5743

Address

:

475, JALAN B10, TAMAN MELAWATI, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

RHB BANK BHD

 

 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

LITIGATION CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


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

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

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES



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

:

ASIA

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

INDUSTRIAL EQUIPMENT TO OIL AND GAS PETROCHEMICAL INDUSTRIES

Competitor(s)

:

DAIFUKU (MALAYSIA) SDN BHD
MUSHTARI MAINTENANCE SERVICES SDN BHD
REAL POWER EXCEL SDN BHD
SNFOR SDN BHD
TUNE MONEY SDN BHD

 

Total Number of Employees:

YEAR

2014

2012

GROUP

N/A

N/A

COMPANY

8

10

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) supplying industrial equipment to oil and gas petrochemical industries.

The Subject is specialised and individual core area of expertise, ranging from mechanical, electrical and instrumentation installation to full system integration.

The Subject is proud to service Malaysia industry leaders, multinational corporations from diverse industries such as oil & gas, chemical & petrochemical, construction materials and other industries as well.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-89416671

Match

:

N/A

Address Provided by Client

:

S 2.27, SOUTH CITY PLAZA, PERSIARAN SERDANG PERDANA, 43300 KUALA LUMPUR

Current Address

:

S2.27, SOUTH CITY PLAZA, 2ND FLOOR, PERSIARAN SERDANG PERDANA, 43300 BALAKONG, SELANGOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


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

The Subject refused to disclose its number of employees.

The address provided is incomplete.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2013

]

Return on Shareholder Funds

:

Unfavourable

[

4.46%

]

Return on Net Assets

:

Unfavourable

[

6.32%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. 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

:

Nil

[

0 Days

]

Debtor Ratio

:

Favourable

[

0 Days

]

Creditors Ratio

:

Favourable

[

15 Days

]

As the Subject is a service oriented company, the Subject does not need to keep stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Favourable

[

1.45 Times

]

Current Ratio

:

Unfavourable

[

1.45 Times

]

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

Solvency

Interest Cover

:

Nil

[

0.00 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

Overall Assessment :

The higher turnover had helped to reduce the Subject's losses. 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 did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

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 2009, the Subject is a Private Limited company, focusing on supplying industrial equipment to oil and gas petrochemical industries. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. A paid up capital of MYR 1,000,000 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.

Investigation revealed, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business.

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)

INDUSTRIAL TRADE WELL SDN. BHD.

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

2009-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

SUMMARY

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

6,465,538

5,996,722

5,308,301

1,334,295

-

Other Income

-

-

-

5,494

-

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

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

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

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

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

Total Turnover

6,465,538

5,996,722

5,308,301

1,339,789

-

Costs of Goods Sold

(6,122,533)

(5,517,386)

-

(1,702,342)

-

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

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

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

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

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

Gross Profit

343,005

479,336

-

(362,553)

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

23,805

(80,546)

(114,072)

(441,652)

(4,000)

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

23,805

(80,546)

(114,072)

(441,652)

(4,000)

Taxation

(7,000)

-

-

-

-

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

16,805

(80,546)

(114,072)

(441,652)

(4,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(640,270)

(559,724)

(445,652)

(4,000)

-

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

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

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

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

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

As restated

(640,270)

(559,724)

(445,652)

(4,000)

-

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(623,465)

(640,270)

(559,724)

(445,652)

(4,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(623,465)

(640,270)

(559,724)

(445,652)

(4,000)

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

DEPRECIATION (as per notes to P&L)

6,802

5,434

-

3,200

-

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

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

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

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

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

6,802

5,434

-

3,200

-

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

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

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

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

 

 

 

BALANCE SHEET

 

INDUSTRIAL TRADE WELL SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

18,232

18,197

21,581

17,483

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

18,232

18,197

21,581

17,483

-

Other debtors, deposits & prepayments

720,688

11,211

-

507,208

4,159

Amount due from director

154,998

214,998

-

-

-

Cash & bank balances

276,371

425,783

-

32,076

43,585

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

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

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

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

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

TOTAL CURRENT ASSETS

1,152,057

651,992

309,823

539,284

47,744

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

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

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

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

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

TOTAL ASSET

1,170,289

670,189

331,404

556,767

47,744

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

250,851

-

-

-

-

Other creditors & accruals

13,575

92,673

-

14,035

882

Amounts owing to director

522,328

217,786

-

488,384

50,859

Provision for taxation

7,000

-

-

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

793,754

310,459

391,128

502,419

51,741

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

358,303

341,533

(81,305)

36,865

(3,997)

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

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

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

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

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

TOTAL NET ASSETS

376,535

359,730

(59,724)

54,348

(3,997)

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

1,000,000

1,000,000

500,000

500,000

3

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

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

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

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

500,000

500,000

3

Retained profit/(loss) carried forward

(623,465)

(640,270)

(559,724)

(445,652)

(4,000)

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

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

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

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

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

TOTAL RESERVES

(623,465)

(640,270)

(559,724)

(445,652)

(4,000)

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

376,535

359,730

(59,724)

54,348

(3,997)

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

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

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

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

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

376,535

359,730

(59,724)

54,348

(3,997)

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

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

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

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

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

 

FINANCIAL RATIO

 

INDUSTRIAL TRADE WELL SDN. BHD.

 

TYPES OF FUNDS

Cash

276,371

425,783

-

32,076

43,585

Net Liquid Funds

276,371

425,783

-

32,076

43,585

Net Liquid Assets

358,303

341,533

(81,305)

36,865

(3,997)

Net Current Assets/(Liabilities)

358,303

341,533

(81,305)

36,865

(3,997)

Net Tangible Assets

376,535

359,730

(59,724)

54,348

(3,997)

Net Monetary Assets

358,303

341,533

(81,305)

36,865

(3,997)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

23,805

(80,546)

-

(441,652)

(4,000)

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

30,607

(75,112)

-

(438,452)

(4,000)

BALANCE SHEET ITEMS

Total Borrowings

0

0

-

0

0

Total Liabilities

793,754

310,459

391,128

502,419

51,741

Total Assets

1,170,289

670,189

331,404

556,767

47,744

Net Assets

376,535

359,730

(59,724)

54,348

(3,997)

Net Assets Backing

376,535

359,730

(59,724)

54,348

(3,997)

Shareholders' Funds

376,535

359,730

(59,724)

54,348

(3,997)

Total Share Capital

1,000,000

1,000,000

500,000

500,000

3

Total Reserves

(623,465)

(640,270)

(559,724)

(445,652)

(4,000)

LIQUIDITY (Times)

Cash Ratio

0.35

1.37

-

0.06

0.84

Liquid Ratio

1.45

2.10

-

1.07

0.92

Current Ratio

1.45

2.10

0.79

1.07

0.92

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

-

0

0

Debtors Ratio

0

0

-

0

0

Creditors Ratio

15

0

-

0

0

SOLVENCY RATIOS (Times)

Gearing Ratio

0

0

-

0

0

Liabilities Ratio

2.11

0.86

(6.55)

9.24

(12.94)

Times Interest Earned Ratio

0

0

-

0

0

Assets Backing Ratio

0.38

0.36

(0.12)

0.11

(1,332.33)

PERFORMANCE RATIO (%)

Operating Profit Margin

0.37

(1.34)

(2.15)

(33.10)

0

Net Profit Margin

0.26

(1.34)

(2.15)

(33.10)

0

Return On Net Assets

6.32

(22.39)

191.00

(812.64)

100.08

Return On Capital Employed

6.32

(22.39)

191.00

(812.64)

100.08

Return On Shareholders' Funds/Equity

4.46

(22.39)

191.00

(812.64)

100.08

Dividend Pay Out Ratio (Times)

0

0

-

0

0

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

-

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.44

UK Pound

1

Rs.102.41

Euro

1

Rs.75.05

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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.