MIRA INFORM REPORT

 

 

Report No. :

341070

Report Date :

18.09.2015

 

IDENTIFICATION DETAILS

 

Name :

ORLANDO CORPORATION SDN.BHD.

 

 

Formerly Known As :

ORLANDO PERNIAGAAN SDN BHD

 

CHAP YICK PERNIAGAAN SDN BHD

 

 

Registered Office :

13a, Jalan Ss 21/56b, Damansara Utama, 47400 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

13.11.1978

 

 

Com. Reg. No.:

43139-H

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the wholesale and retail of readymade menswear and related accessories.

 

 

No. of Employees :

Not Available

 

 

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.

:

43139-H

COMPANY NAME

:

ORLANDO CORPORATION SDN.BHD.

FORMER NAME

:

ORLANDO PERNIAGAAN SDN BHD (11/09/1981)
CHAP YICK PERNIAGAAN SDN BHD (27/05/1981)

INCORPORATION DATE

:

13/11/1978

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

13A, JALAN SS 21/56B, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

M3, JALAN M16, ML 16, INDUSTRIAL PARK, 43300 BALAKONG, SELANGOR, MALAYSIA.

TEL.NO.

:

03-89644323

FAX.NO.

:

03-89644383

WEB SITE

:

WWW.ORLANDO.COM.MY

CONTACT PERSON

:

NG CHEE LEONG ( DIRECTOR )

INDUSTRY CODE

:

47510

PRINCIPAL ACTIVITY

:

WHOLESALE AND RETAIL OF READY MADE MENSWEAR AND RELATED ACCESSORIES

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO 
ORDINARY SHARE 6,500,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 3,500,000.00 OF MYR 0.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 5,578,104.00 DIVIDED INTO 
ORDINARY SHARES 4,650,000 CASH AND 928,104 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 27,159,391 [2014]

NET WORTH

:

MYR 5,607,029 [2014]

STAFF STRENGTH

:

N/A

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

HIGH

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) wholesale and retail of ready made menswear and related accessories.

 

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

 

The ultimate holding company of the Subject is GRACIOUS TRENDS SDN. BHD., a company incorporated in MALAYSIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

25/09/2014

MYR 10,000,000.00

MYR 5,578,104.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

GRACIOUS TRENDS SDN. BHD.

7, JALAN SHAMELIN NIAGA 1, SHAMELIN HEIGHTS BUSINESS PARK, TAMAN SHAMELIN PERKASA, 56100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

888625X

5,578,104.00

100.00

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

------

5,578,104.00

100.00

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

=====

 

+ Also Director

 

Former Shareholder(s) :

Name

Country

IC/PP/Loc No

Shareholding

Last Updated

PERDUREN (M) BERHAD

MALAYSIA

236800T

750,000.00

24/10/2007

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. TEH CIAW LONG

Address

:

20B, JALAN MAS UTAMA, TAMAN LAGENDA MAS, 43200 BALAKONG, SELANGOR, MALAYSIA.

IC / PP No

:

A3371877

New IC No

:

760710-01-6667

Date of Birth

:

10/07/1976

Nationality

:

MALAYSIAN

Date of Appointment

:

15/04/2010

 

DIRECTOR 2

 

Name Of Subject

:

MR. NG CHEE LEONG

Address

:

92, JALAN TAMING INDAH 3, TAMAN TAMING INDAH, BANDAR SUNGAI LONG, 43000 KAJANG, SELANGOR, MALAYSIA.

IC / PP No

:

7256519

New IC No

:

640111-08-5373

Date of Birth

:

11/01/1964

Nationality

:

MALAYSIAN

Date of Appointment

:

03/07/2012

 

DIRECTOR 3

 

Name Of Subject

:

MS. KANG MOOI HONG

Address

:

MENTARI CONDOMINIUM, A-8-4, 4, JALAN TASIK PERMAISURI 3, BANDAR TUN RAZAK, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

721114-02-5354

Date of Birth

:

14/11/1972

Nationality

:

MALAYSIAN

Date of Appointment

:

15/04/2010



MANAGEMENT

 

 

1)

Name of Subject

:

NG CHEE LEONG

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

JB LAU

Auditor' Address

:

9-1, JALAN KUCHAI MAJU 8, KUCHAI ENTREPRENEURS PARK, OFF JALAN KUCHAI LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. FOO LI LING

New IC No

:

701111-07-5286

Address

:

67, JALAN BUNGA ANGGERIK 2, DATARAN UKAY, 68000 AMPANG, 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

3

30/10/1981

N/A

ARABMALAYSIA DEVELOPMENT BANK BHD

MYR 750,000.00

Satisfied

4

26/02/1982

N/A

DEVELOPMENT COMMERCIAL BANK LTD BHD

-

Satisfied

5

16/03/1982

N/A

DEVELOPMENT COMMERCIAL BANKLTD BHD

MYR 189,000.00

Satisfied

6

24/06/1982

N/A

UNITED MALAYAN BANKING CORPBHD

MYR 700,000.00

Satisfied

7

24/06/1982

N/A

UNITED MALAYAN BANKING CORP BHD

MYR 700,000.00

Satisfied

8

24/06/1982

N/A

UNITED MALAYAN BANKING CORPBHD

MYR 90,000.00

Satisfied

9

28/03/1984

N/A

DEVELOPMENT COMMERCIAL BANK BHD

MYR 175,000.00

Satisfied

10

28/03/1984

N/A

DEVELOPMENT COMMERCIAL BANK BHD

MYR 200,000.00

Satisfied

11

17/08/1984

N/A

UNITED MALAYAN BANKING CORP

MYR 90,000.00

Satisfied

12

17/08/1984

N/A

UNITED MALAYAN BANKING CORP

MYR 300,000.00

Satisfied

13

02/01/1985

N/A

PUBLIC BANK BHD

MYR 1,300,000.00

Satisfied

14

12/12/1985

N/A

PUBLIC BANK BHD

MYR 150,000.00

Satisfied

15

14/09/1987

N/A

PUBLIC BANK BHD

MYR 1,450,000.00

Satisfied

16

26/10/1989

N/A

UNITED MALAYAN BANKING CORPORATION BERHAD

MYR 1,000,000.00

Satisfied

17

29/11/1989

N/A

DEVELOPMENT COMMERCIAL BANK BERHAD

-

Satisfied

18

18/01/1990

N/A

PUBLIC BANK BERHAD

MYR 500,000.00

Satisfied

19

08/08/1990

N/A

UNITED MALAYAN BANKING CORPORATION BERHAD

MYR 1,000,000.00

Satisfied

20

08/08/1990

N/A

UNITED MALAYAN BANKING CORPORATION BERHAD

MYR 100,000.00

Satisfied

21

16/11/1990

N/A

PUBLIC BANK BERHAD

MYR 1,550,000.00

Satisfied

22

01/08/1991

N/A

PUBLIC BANK BERHAD

MYR 350,000.00

Satisfied

23

01/08/1991

N/A

PUBLIC BANK BERHAD

MYR 1,000,000.00

Satisfied

24

10/10/1991

N/A

PUBLIC BANK BERHAD

MYR 3,000,000.00

Satisfied

25

20/08/1992

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

-

Satisfied

26

20/08/1992

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

-

Satisfied

27

20/08/1992

N/A

UNITED OVERSEAS BANK MALAYSIA BHD

-

Satisfied

28

22/10/1993

DEED NEGATIVE PLEDGE

MALAYSIAN INTERNATIONAL MERCHANT BANKERS BERHAD

MYR 5,000,000.00

Satisfied

29

14/11/1994

N/A

MALAYAN BANKING BERHAD

MYR 8,000,000.00

Satisfied

30

24/01/1997

DEPOSIT

MALAYSIAN INTERNATIONAL MERCHANT BANKERS BERHAD

MYR 12,000,000.00

Satisfied

31

19/08/2009

N/A

CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD

MYR 850,000.00

Satisfied

32

19/08/2009

N/A

CIMB BANK BERHAD

MYR 850,000.00

Satisfied

33

11/08/2011

N/A

STANDARD CHARTERED 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. 

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

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

X

]

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

N/A

Payment Mode

:

CHEQUES

 

OPERATIONS

 

Goods Traded

:

READY MADE MENSWEAR AND RELATED ACCESSORIES

 

Branch

:

YES

Other Information:


The Subject is principally engaged in the (as a / as an) wholesale and retail of ready made menswear and related accessories. 

The Subject sells clothings. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

0389644323

Current Telephone Number

:

03-89644323

Match

:

YES

Address Provided by Client

:

M3, JALAN M16, ML 16, INDUSTRIAL PARK,43300,SERI KEMBANGAN,SELANGOR.

Current Address

:

M3, JALAN M16, ML 16, INDUSTRIAL PARK, 43300 BALAKONG, SELANGOR, MALAYSIA.

Match

:

YES

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.

FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2014

]

Return on Shareholder Funds

:

Unfavourable

[

9.24%

]

Return on Net Assets

:

Acceptable

[

11.72%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's profit fell sharply because of the high operating costs incurred. 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

:

Unfavourable

[

135 Days

]

Debtor Ratio

:

Favourable

[

50 Days

]

Creditors Ratio

:

Unfavourable

[

159 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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

[

0.54 Times

]

Current Ratio

:

Unfavourable

[

1.18 Times

]

A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

Interest Cover

:

Unfavourable

[

1.94 Times

]

Gearing Ratio

:

Unfavourable

[

2.03 Times

]

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

Overall Assessment :

The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : POOR

 

 

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

47510 : Retail sale of textiles in specialized stores

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 1978, the Subject is a Private Limited company, focusing on wholesale and retail of ready made menswear and related accessories. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. We noted that the issued and paid up capital of the Subject stands at MYR 5,578,104 and having strong backing from its holding company. 

Investigation revealed that the Subject concentrates only on the local market. This narrow market segment has placed the Subject at high business risk and limits its business expansion opportunities. Any adverse changes to the local economy might have a negative impact on the Subject's business performance. 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. 

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at MYR 5,607,029, the Subject should be able to maintain its business in the near terms. 

The poor payment habit may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies. 

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)

ORLANDO CORPORATION 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

YES

YES

Financial Type

FULL

FULL

SUMMARY

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

27,159,391

27,653,906

25,048,611

18,916,793

12,377,731

Other Income

200,239

160,732

-

-

-

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

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

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

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

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

Total Turnover

27,359,630

27,814,638

25,048,611

18,916,793

12,377,731

Costs of Goods Sold

(10,675,375)

(10,694,182)

-

-

-

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

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

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

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

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

Gross Profit

16,684,255

17,120,456

-

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

542,605

966,569

1,434,487

1,211,231

(4,456,460)

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

542,605

966,569

1,434,487

1,211,231

(4,456,460)

Taxation

(24,715)

(20,877)

(6,726)

-

-

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

517,890

945,692

1,427,761

1,211,231

(4,456,460)

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(572,675)

(1,518,367)

(2,946,128)

(4,157,359)

299,101

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

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

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

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

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

As restated

(572,675)

(1,518,367)

(2,946,128)

(4,157,359)

299,101

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(54,785)

(572,675)

(1,518,367)

(2,946,128)

(4,157,359)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(54,785)

(572,675)

(1,518,367)

(2,946,128)

(4,157,359)

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Others

578,757

355,631

-

-

-

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

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

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

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

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

578,757

355,631

-

-

-

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

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

-

-

-

DEPRECIATION (as per notes to P&L)

583,942

472,610

-

-

-

AMORTIZATION

4,785

3,618

-

-

-

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

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

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

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

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

588,727

476,228

-

-

-

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

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

 

BALANCE SHEET

 

ORLANDO CORPORATION SDN.BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

6,703,073

5,973,190

1,618,513

1,184,881

1,175,398

Others

28,476

25,699

-

-

-

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

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

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

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

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

TOTAL INTANGIBLE ASSETS

28,476

25,699

-

-

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

6,731,549

5,998,889

1,618,513

1,184,881

1,175,398

Stocks

10,081,984

9,443,086

-

-

-

Trade debtors

3,715,297

4,117,360

-

-

-

Other debtors, deposits & prepayments

267,618

321,738

-

-

-

Short term deposits

4,484,815

3,195,181

-

-

-

Amount due from holding company

159,752

152,484

-

-

-

Cash & bank balances

36,159

362,152

-

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

18,745,625

17,592,001

16,749,625

14,776,925

5,476,597

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

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

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

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

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

TOTAL ASSET

25,477,174

23,590,890

18,368,138

15,961,806

6,651,995

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

4,663,968

4,492,030

-

-

-

Other creditors & accruals

3,807,729

4,083,691

-

-

-

Hire purchase & lease creditors

44,697

-

-

-

-

Bank overdraft

1,491,414

-

-

-

-

Short term borrowings/Term loans

200,381

159,414

-

-

-

Other borrowings

619,570

-

-

-

-

Bill & acceptances payable

5,066,000

6,214,000

-

-

-

Amounts owing to director

8,000

413,020

-

-

-

Provision for taxation

6,000

2,962

-

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

15,907,759

15,365,117

14,758,028

11,821,120

9,134,872

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

2,837,866

2,226,884

1,991,597

2,955,805

(3,658,275)

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

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

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

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

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

TOTAL NET ASSETS

9,569,415

8,225,773

3,610,110

4,140,686

(2,482,877)

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

5,578,104

5,578,104

4,878,104

4,878,104

1,250,000

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

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

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

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

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

TOTAL SHARE CAPITAL

5,578,104

5,578,104

4,878,104

4,878,104

1,250,000

RESERVES

Share premium

83,710

83,710

83,710

83,710

83,710

Retained profit/(loss) carried forward

(54,785)

(572,675)

(1,518,367)

(2,946,128)

(4,157,359)

Others

-

-

166,663

-

-

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

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

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

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

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

TOTAL RESERVES

28,925

(488,965)

(1,267,994)

(2,862,418)

(4,073,649)

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

5,607,029

5,089,139

3,610,110

2,015,686

(2,823,649)

Long term loans

3,962,386

3,136,634

-

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

3,962,386

3,136,634

-

2,125,000

340,772

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

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

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

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

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

9,569,415

8,225,773

3,610,110

4,140,686

(2,482,877)

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

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

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

ORLANDO CORPORATION SDN.BHD.

 

TYPES OF FUNDS

Cash

4,520,974

3,557,333

-

-

-

Net Liquid Funds

(2,036,440)

(2,656,667)

-

-

-

Net Liquid Assets

(7,244,118)

(7,216,202)

1,991,597

2,955,805

(3,658,275)

Net Current Assets/(Liabilities)

2,837,866

2,226,884

1,991,597

2,955,805

(3,658,275)

Net Tangible Assets

9,540,939

8,200,074

3,610,110

4,140,686

(2,482,877)

Net Monetary Assets

(11,206,504)

(10,352,836)

1,991,597

830,805

(3,999,047)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

1,121,362

1,322,200

-

-

-

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

1,710,089

1,798,428

-

-

-

BALANCE SHEET ITEMS

Total Borrowings

11,384,448

9,510,048

-

-

-

Total Liabilities

19,870,145

18,501,751

14,758,028

13,946,120

9,475,644

Total Assets

25,477,174

23,590,890

18,368,138

15,961,806

6,651,995

Net Assets

9,569,415

8,225,773

3,610,110

4,140,686

(2,482,877)

Net Assets Backing

5,607,029

5,089,139

3,610,110

2,015,686

(2,823,649)

Shareholders' Funds

5,607,029

5,089,139

3,610,110

2,015,686

(2,823,649)

Total Share Capital

5,578,104

5,578,104

4,878,104

4,878,104

1,250,000

Total Reserves

28,925

(488,965)

(1,267,994)

(2,862,418)

(4,073,649)

LIQUIDITY (Times)

Cash Ratio

0.28

0.23

-

-

-

Liquid Ratio

0.54

0.53

-

-

-

Current Ratio

1.18

1.14

1.13

1.25

0.60

WORKING CAPITAL CONTROL (Days)

Stock Ratio

135

125

-

-

-

Debtors Ratio

50

54

-

-

-

Creditors Ratio

159

153

-

-

-

SOLVENCY RATIOS (Times)

Gearing Ratio

2.03

1.87

-

-

-

Liabilities Ratio

3.54

3.64

4.09

6.92

(3.36)

Times Interest Earned Ratio

1.94

3.72

-

-

-

Assets Backing Ratio

1.71

1.47

0.74

0.85

(1.99)

PERFORMANCE RATIO (%)

Operating Profit Margin

2.00

3.50

5.73

6.40

(36.00)

Net Profit Margin

1.91

3.42

5.70

6.40

(36.00)

Return On Net Assets

11.72

16.07

39.74

29.25

179.49

Return On Capital Employed

10.07

16.02

39.74

29.25

179.49

Return On Shareholders' Funds/Equity

9.24

18.58

39.55

60.09

157.83

Dividend Pay Out Ratio (Times)

0

0

-

-

-

NOTES TO ACCOUNTS

Contingent Liabilities

0

0



FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.50

UK Pound

1

Rs.102.00

Euro

1

Rs.75.03

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.