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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

502766

Report Date :

12.04.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

DESA K.L. ENTERPRISE SDN. BHD.

 

 

Registered Office :

24-3, Jalan Medan Putra 4, Medan Putra Business Centre, Bandar Menjalara, Kepong, 52200 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.05.2017

 

 

Date of Incorporation :

18.01.1988

 

 

Com. Reg. No.:

167863-M

 

 

Legal Form :

Private Limited (Limited by Share)

 

 

Line of Business :

Subject is principally engaged in the manufacturing of timber door and frames. 

 

 

No. of Employees :

100

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, an upper middle-income country, has transformed itself since the 1970s from a producer of raw materials into a multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move further up the value-added production chain by attracting investments in high technology, knowledge-based industries and services. NAJIB's Economic Transformation Program 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. Domestic demand continues to anchor economic growth, supported mainly by private consumption, which accounts for 53% of GDP. Nevertheless, exports - particularly of electronics, oil and gas, and palm oil - remain a significant driver of the economy. In 2015, gross exports of goods and services were equivalent to 73% of GDP. The oil and gas sector supplied about 22% of government revenue in 2015, down significantly from prior years amid a decline in commodity prices and diversification of government revenues. Malaysia has embarked on a fiscal reform program aimed at achieving a balanced budget by 2020, including rationalization of subsidies and the 2015 introduction of a 6% value added tax. Sustained low commodity prices throughout the period not only strained government finances, but also shrunk Malaysia’s current account surplus and weighed heavily on the Malaysian ringgit, which was among the region’s worst performing currencies during 2013-17. The ringgit hit new lows following the US presidential election amid a broader selloff of emerging market assets.

 

Bank Negara Malaysia (the central bank) maintains adequate foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments, although it remains vulnerable to volatile global capital flows. In order to increase Malaysia’s competitiveness, Prime Minister 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, policies that favor and advance the economic condition of ethnic Malays.

 

Malaysia signed the 12-nation Trans-Pacific Partnership (TPP) free trade agreement in February 2016, although the future of the TPP remains unclear following the US withdrawal from the agreement. Along with nine other ASEAN members, Malaysia established the ASEAN Economic Community in 2015, which aims to advance regional economic integration.

 

Source : CIA

 

 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

167863-M

GST NO.

:

001423331328

COMPANY NAME

:

DESA K.L. ENTERPRISE SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

18/01/1988

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

24-3, JALAN MEDAN PUTRA 4, MEDAN PUTRA BUSINESS CENTRE, BANDAR MENJALARA, KEPONG, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

2B, JALAN SG 3/2, TAMAN SERI GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.

TEL.NO.

:

03-61894364

FAX.NO.

:

03-61884163

WEB SITE

:

WWW.DESAKL.COM.MY

CONTACT PERSON

:

KNEW MAY CHIN ( DIRECTOR )

INDUSTRY CODE

:

16292

PRINCIPAL ACTIVITY

:

MANUFACTURING OF TIMBER DOOR AND FRAMES

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 5,000,000.00 DIVIDED INTO 
ORDINARY SHARES 1,000,000 CASH AND 4,000,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 31,450,971 [2017]

NET WORTH

:

MYR 17,416,150 [2017]

STAFF STRENGTH

:

100 [2018]

BANKER (S)

:

PUBLIC BANK BHD
SOUTHERN BANK BERHAD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

No Complaints

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL 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 shall have a minimum one director. 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) manufacturing of timber door and frames.

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

 

Former Address(es)

Address

As At Date

LOT 1D, 1ST FLOOR, LEE WAH BANK BUILDING, JALAN TENGAH, 46200, SELANGOR, MALAYSIA

14/07/1989

6TH FLOOR, SECONDARY TOWER BLOCK, WISMA MCIS, JALAN BARAT, 46200, SELANGOR, MALAYSIA

28/02/1991

865-B, TAMAN KOK LIAN, BATU 5, JALAN IPOH, 51200, WILAYAH PERSEKUTUAN, MALAYSIA

29/04/1988

LOT 2188 JALAN TAMING DUA, OFF TAMING JAYA INDUSTRIAL ESTATE, 43000, SELANGOR, MALAYSIA

N/A

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

06/05/1994

MYR 5,000,000.00

MYR 5,000,000.00

15/11/1993

MYR 1,000,000.00

MYR 1,000,000.00

16/03/1992

MYR 600,000.00

MYR 600,000.00

05/07/1988

MYR 300,000.00

MYR 300,000.00

18/01/1988

MYR 300,000.00

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. KNEW SEE CHUA +

43, JALAN BURUNG CENUK, TAMAN BUKIT MALURI KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

501207-10-5391 4170796

4,316,000.00

86.32

MR. KNEW JING SIONG

2C, JALAN SG 3/2, TAMAN SRI GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.

811102-14-5323

684,000.00

13.68

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

------

5,000,000.00

100.00

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

=====

+ Also Director


Former Shareholder(s) :

Name

Country

IC/PP/Loc No

Shareholding

Last Updated

LEE BOON KEOW

MALAYSIA

600113-11-5090

N/A

24/01/2017



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. KNEW MAY CHIN

Address

:

43, JALAN BURUNG CENUK, TAMAN BUKIT MALURI, KEPONG, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A2818127

New IC No

:

740523-14-5748

Date of Birth

:

23/05/1974

Nationality

:

MALAYSIAN

Date of Appointment

:

15/10/2003



INTEREST CHECK

Interest in companies

:

see below

Interest in business

:

none in our databank

Former interest

:

see below

INTEREST IN COMPANY

No

Local No

Company

Designation

App Date

Shareholding

Profit/(loss) After Tax

Financial Year

Status

As At

No.

%

1

167863M

DESA K.L. ENTERPRISE SDN. BHD.

Director

15/10/2003

0.00

-

MYR132,283.00

2017

-

26/03/2018

2

161702U

DESA SELATAN SDN. BHD.

Director

15/10/2003

0.00

-

MYR48,713.00

2016

-

26/03/2018

3

187310T

DESAJUTA INDUSTRIES SDN. BHD.

Director

15/10/2003

248,000.00

24.80

MYR85,884.00

2016

-

26/03/2018


FORMER INTEREST

No

Local No

Company

Designation

App Date

Withdrawn Date

Shareholding

Status

1

496010V

DESA K.L. MARKETING SDN. BHD.

Director

11/10/1999

15/10/2003

-

-

2

496010V

DESA K.L. MARKETING SDN. BHD.

Shareholder

-

-

-

-

3

172251D

SYARIKAT LENSING (MENTAKAB) SDN. BHD.

Shareholder

-

-

-

-

 

DIRECTOR 2

 

Name Of Subject

:

MR. KNEW SEE CHUA

Address

:

43, JALAN BURUNG CENUK, TAMAN BUKIT MALURI KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

4170796

New IC No

:

501207-10-5391

Date of Birth

:

07/12/1950

Nationality

:

MALAYSIAN

Date of Appointment

:

18/01/1988



INTEREST CHECK

Interest in companies

:

see below

Interest in business

:

none in our databank

Former interest

:

see below

INTEREST IN COMPANY

No

Local No

Company

Designation

App Date

Shareholding

Profit/(loss) After Tax

Financial Year

Status

As At

No.

%

1

167863M

DESA K.L. ENTERPRISE SDN. BHD.

Director

18/01/1988

4,316,000.00

86.32

MYR132,283.00

2017

-

26/03/2018

2

265825M

DESA KL REALTY SDN. BHD.

Director

29/05/1993

449,999.00

100.00

MYR(8,128.00)

2017

-

26/03/2018

3

161702U

DESA SELATAN SDN. BHD.

Director

25/08/1987

472,500.00

94.50

MYR48,713.00

2016

-

26/03/2018

4

187310T

DESAJUTA INDUSTRIES SDN. BHD.

Director

28/09/1989

552,000.00

55.20

MYR85,884.00

2016

-

26/03/2018

5

1168980X

KILANG PAPAN DKL SDN. BHD.

Director

11/12/2015

25.00

25.00

MYR(6,174.00)

2017

-

26/03/2018

6

14342W

SYARIKAT NAM LEONG TRADING SDN. BHD.

Shareholder

-

5,000.00

1.04

MYR16,913.00

2016

-

26/03/2018

7

38010T

YAYASAN ANN KOAI SELANGOR

Director

23/06/2002

0.00

-

N/A

2015

-

26/03/2018


FORMER INTEREST

No

Local No

Company

Designation

App Date

Withdrawn Date

Shareholding

Status

1

172251D

SYARIKAT LENSING (MENTAKAB) SDN. BHD.

Director

21/07/1988

15/07/1999

-

-

2

000384711K

SYARIKAT WAH LONG

PARTNERSHIP

18/06/2004

15/11/2014

-

-

3

47735D

WAHLONG INDUSTRIES SDN. BHD.

Director

28/05/1979

10/04/2007

-

-

4

47735D

WAHLONG INDUSTRIES SDN. BHD.

Shareholder

-

-

8332.00

-



FORMER DIRECTOR(S)

 

Name

Address

IC/PP No

Appointed Date

Withdrawn Date

TAN HEE CHOY

36A,JALAN BERHALA, BRICKFIELDS, KUALA LUMPUR., KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA

6358949

30/04/1988

02/05/2002

KNEW JING SIONG

2C, JALAN SG 3/2, TAMAN SRI GOMBAK, BATU CAVES, SELANGOR, MALAYSIA

811102-14-5323

24/02/2003

15/10/2003

LIM KIAN HING

30,JALAN SG 9/3, TAMAN SRI GOMBAK, BATU CAVES,SELANGOR, BATU CAVES, WILAYAH PERSEKUTUAN, MALAYSIA

610510-10-5813

18/01/1988

02/10/2003

LIM KIAN SOON

9,JALAN BRP 5/7, BKT.RAHMAN PUTRA, SG.BULOH,SELANGOR, SUNGAI BULOH, SELANGOR, MALAYSIA

561015-14-5043

18/01/1988

25/03/1998



Note : The above information was generated from our database.

MANAGEMENT

 

 

1)

Name of Subject

:

KNEW MAY CHIN

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

K.Y. HO & CO.

Auditor' Address

:

FIRST SUBANG, UNIT S12-06, JALAN SS 15/4G, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. WONG WAI MENG

IC / PP No

:

A1320657

New IC No

:

690727-06-5106

Address

:

12, JALAN KIARA SD 11/3A, BANDAR BARU SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

PUBLIC BANK BHD

 

2)

Name

:

SOUTHERN BANK BERHAD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

20/10/1988

N/A

HONGKONG BANK MALAYSIA BERAHD

MYR 190,000.00

Satisfied

2

02/02/1990

N/A

HONGKONG BANK MALAYSIA BERAHD

MYR 180,000.00

Satisfied

3

26/03/1991

N/A

HONGKONG BANK MALAYSIA BERAHD

MYR 390,000.00

Satisfied

4

02/05/1991

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 300,000.00

Satisfied

5

26/08/1991

N/A

SOUTHERN BANK BERHAD

MYR 120,000.00

Satisfied

6

13/03/1992

N/A

SOUTHERN BANK BERHAD

MYR 80,000.00

Satisfied

7

16/08/1993

N/A

SOUTHERN BANK BERHAD

MYR 240,000.00

Satisfied

8

26/01/1994

N/A

MALAYAN BANKING BERHAD

MYR 245,000.00

Satisfied

9

17/02/1994

N/A

HONGKONG BANK MALAYSIA BERHAD

-

Satisfied

10

17/02/1994

N/A

HONGKONG BANK MALAYSIA BERHAD

-

Satisfied

11

05/09/1994

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 318,000.00

Satisfied

12

30/09/1994

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 158,000.00

Satisfied

13

10/10/1994

N/A

MALAYAN BANKING BERHAD

MYR 174,000.00

Satisfied

14

03/11/1994

N/A

PUBLIC BANK BERHAD

MYR 340,000.00

Satisfied

15

30/11/1994

N/A

MALAYAN BANKING BERHAD

MYR 500,000.00

Satisfied

16

21/03/1995

N/A

PUBLIC BANK BERHAD

MYR 490,000.00

Satisfied

17

22/06/1995

N/A

PUBLIC BANK BERHAD

MYR 470,000.00

Satisfied

18

28/07/1995

N/A

HONG LEONG BANK BERHAD

MYR 380,000.00

Satisfied

19

14/03/1996

N/A

PUBLIC BANK BERHAD

MYR 128,000.00

Satisfied

20

17/06/1996

N/A

HONGKONG BANK MALAYSIA BERHAD

-

Satisfied

21

12/07/1996

N/A

MALAYAN BANKING BERHAD

MYR 700,000.00

Satisfied

22

06/12/1996

N/A

THE PACIFIC BANK BERHAD

MYR 340,000.00

Satisfied

23

06/12/1996

N/A

THE PACIFIC BANK BERHAD

MYR 500,000.00

Satisfied

24

31/12/1996

N/A

HONGKONG BANK MALAYSIA BERHAD

-

Satisfied

25

21/03/1997

N/A

HONGKONG BANK MALAYSIA BERHAD

-

Satisfied

26

03/09/1997

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 360,000.00

Satisfied

27

24/12/1997

N/A

HSBC BANK MALAYSIA BERHAD

-

Satisfied

28

25/05/1998

N/A

PUBLIC BANK BERHAD

MYR 70,000.00

Satisfied

29

10/12/2001

N/A

PUBLIC BANK BERHAD

MYR 1,500,000.00

Satisfied

30

10/12/2001

N/A

PUBLIC BANK BERHAD

MYR 1,500,000.00

Satisfied

31

10/12/2001

N/A

PUBLIC BANK BERHAD

MYR 3,900,000.00

Satisfied

32

10/12/2001

N/A

PUBLIC BANK BERHAD

MYR 4,600,000.00

Satisfied

33

10/12/2001

N/A

PUBLIC BANK BERHAD

MYR 2,000,000.00

Satisfied

34

10/12/2001

N/A

PUBLIC BANK BERHAD

MYR 2,000,000.00

Satisfied

35

06/08/2004

N/A

RHB BANK BERHAD

MYR 500,000.00

Satisfied

36

05/08/2005

N/A

PUBLIC BANK BERHAD

MYR 1,250,000.00

Satisfied

37

04/01/2006

N/A

AMBANK (M) BERHAD

MYR 450,000.00

Satisfied

38

13/07/2007

A REGISTERED OPEN ALL MONIES 1ST PARTY CHARGE UNDER THE NATIONAL LAND CODE

PUBLIC BANK BERHAD

-

Satisfied

39

23/09/2010

N/A

PUBLIC BANK BERHAD

-

Satisfied

40

18/01/2011

LEGAL CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BERHAD.

MYR 3,541,000.00

Unsatisfied

41

18/01/2011

LEGAL CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BERHAD.

MYR 10,000,000.00

Unsatisfied

42

12/08/2013

LEGAL CHARGE

UNITED OVERSEAS BANK (MALAYSIA) BERHAD.

MYR 1,000,000.00

Unsatisfied

43

28/01/2015

LEGAL CHARGE

PUBLIC BANK BERHAD

-

Satisfied

44

03/05/2017

MEMORANDUM OF DEPOSIT

AMBANK (M) BERHAD

-

Unsatisfied

45

03/05/2017

DEBENTURE

AMBANK (M) BERHAD

-

Unsatisfied

46

13/06/2017

1ST FIXED CHARGE

AMBANK (M) BERHAD

-

Unsatisfied

 

 

CIVIL LITIGATION CHECK - SUBJECT COMPANY AS A DEFENDANT


* A check has been conducted in our databank against 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.


CRIMINAL CHECK - SUBJECT COMPANY AS A DEFENDANT


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

No criminal record was found in our databank.


CIVIL LITIGATION CHECK - SUBJECT COMPANY AS A PLAINTIFF


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

No plaintiff record was found in our databank.


CRIMINAL RECORDS CHECK - SUBJECT COMPANY AS A PLAINTIFF


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

No plaintiff record 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 listed by our customers and debtors that have been placed or assigned to us for collection. 

No defaulter 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

EUROPE

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Products manufactured

:

TIMBER DOOR AND FRAMES

Ownership of premises

:

LEASED/RENTED

 

Total Number of Employees:

 

YEAR

2018

2017

2016

GROUP

N/A

N/A

N/A

COMPANY

100

100

70

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of timber door and frames. 

The Subject offers sawn timber and other timber related products and timber preservations.

The Subject is a Malaysia wooden doors manufacturer and timber doors manufacturer.

The Subject is also a comprehensive source of reliable wooden doors, decorative doors, fire resistance doors, joinery products and timber moulding products manufacturer.

The products are as follows;

Wooden Doors
Fire Resistent Doors
Decorative Doors

Solid Decorative Door
Solid Decorative Door with Glass Panel
Solid Decorative Door with Panel & Glass
Solid Decorative Door & Security Designer Door
Designer Door
Wave Panel Solid Door 


RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA) database, but no recent development was noted during the time of inspection.

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-61894364

Match

:

N/A

Address Provided by Client

:

NO 2A JALAN SG3/2 TAMAN SRI GOMAK 68100 BATU CAVES SELANGOR DARUL EHSAN

Current Address

:

2B, JALAN SG 3/2, TAMAN SERI GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


On 10th April 2018 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 is as per stated in the report.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2013 - 2017

]

Profit/(Loss) Before Tax

:

Decreased

[

2013 - 2017

]

Return on Shareholder Funds

:

Unfavourable

[

0.76%

]

Return on Net Assets

:

Unfavourable

[

9.11%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.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.

Working Capital Control

Stock Ratio

:

Unfavourable

[

122 Days

]

Debtor Ratio

:

Unfavourable

[

135 Days

]

Creditors Ratio

:

Unfavourable

[

100 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. 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

[

0.50 Times

]

Current Ratio

:

Unfavourable

[

0.93 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

[

1.21 Times

]

Gearing Ratio

:

Unfavourable

[

1.03 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:

2014

2015

2016

2017*

2018**

Population ( Million)

30.0

31.0

31.6

32.1

32.9

Gross Domestic Products ( % )

6.0

4.6

4.2

5.3

5.4

Domestic Demand ( % )

6.4

6.2

4.3

6.3

6.4

Private Expenditure ( % )

7.9

6.9

7.8

7.4

7.3

Consumption ( % )

6.5

6.1

5.1

6.9

6.8

Investment ( % )

12.0

8.1

10.0

9.3

8.9

Public Expenditure ( % )

2.3

4.2

3.3

5.3

5.5

Consumption ( % )

2.1

4.3

2.0

2.7

1.3

Investment ( % )

2.6

(1.0)

1.1

3.4

3.8

Balance of Trade ( MYR Million )

82,480

91,577

88,145

94,593

96,993

Government Finance ( MYR Million )

(37,414)

(37,194)

(38,401)

(39,887)

(39,790)

Government Finance to GDP / Fiscal Deficit ( % )

(3.4)

(3.2)

(3.1)

(3.0)

(2.8)

Inflation ( % Change in Composite CPI)

3.2

4.0

2.1

3.5

3.0

Unemployment Rate

2.9

3.1

3.4

3.4

3.3

Net International Reserves ( MYR Billion )

417

390

391

-

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

4.00

3.50

-

-

-

Average 3 Months of Non-performing Loans ( % )

2.10

2.00

1.90

-

-

Average Base Lending Rate ( % )

6.85

6.79

6.81

6.73

-

Business Loans Disbursed( % )

18.6

2.2

-

-

-

Foreign Investment ( MYR Million )

43,486.6

43,435.0

-

-

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

49,203

45,658

43,255

-

-

Registration of New Companies ( % )

6.1

(7.2)

(5.3)

-

-

Liquidation of Companies ( No. )

11,099

7,066

-

-

-

Liquidation of Companies ( % )

(19.5)

(36.3)

-

-

-

Registration of New Business ( No. )

332,723

364,230

376,720

-

-

Registration of New Business ( % )

1.0

9.0

3.0

-

-

Business Dissolved ( No. )

21,436

-

-

-

-

Business Dissolved ( % )

18.0

-

-

-

-

Sales of New Passenger Cars (' 000 Unit )

588.3

591.3

514.6

527.8

-

Cellular Phone Subscribers ( Million )

44.0

44.2

44.0

-

-

Tourist Arrival ( Million Persons )

27.4

25.7

30.2

30.1

-

Hotel Occupancy Rate ( % )

63.6

58.8

61.2

-

-

Credit Cards Spending ( % )

5.8

6.8

6.3

-

-

Bad Cheque Offenders (No.)

-

-

-

-

-

Individual Bankruptcy ( No.)

22,351

18,457

-

-

-

Individual Bankruptcy ( % )

1.7

(17.4)

-

-

-

 

INDUSTRIES ( % of Growth ):

2014

2015

2016

2017*

2018**

Agriculture

2.0

1.3

(5.1)

5.6

2.4

Palm Oil

6.7

7.0

(12.7)

11.8

-

Rubber

(10.4)

(11.0)

(6.3)

10.8

-

Forestry & Logging

(4.2)

(7.2)

(3.0)

(15.0)

-

Fishing

2.7

2.1

2.2

0.2

-

Other Agriculture

6.2

6.0

5.1

2.4

-

Industry Non-Performing Loans ( MYR Million )

303.8

343.7

420.3

-

-

% of Industry Non-Performing Loans

1.4

1.5

1.8

-

-

Mining

3.3

5.3

2.2

0.5

0.9

Oil & Gas

3.0

3.5

4.5

-

-

Other Mining

46.6

47.1

42.6

-

-

Industry Non-performing Loans ( MYR Million )

63.5

180.1

190.0

-

-

% of Industry Non-performing Loans

0.3

0.8

0.8

-

-

Manufacturing #

6.1

4.9

4.4

5.5

5.3

Exported-oriented Industries

7.1

6.5

4.3

6.5

-

Electrical & Electronics

11.8

9.2

6.8

9.3

-

Rubber Products

(1.3)

5.1

5.0

6.9

-

Wood Products

7.8

7.0

7.8

7.3

-

Textiles & Apparel

10.8

7.5

7.5

7.4

-

Domestic-oriented Industries

7.7

4.7

3.4

6.2

-

Food, Beverages & Tobacco

6.1

8.9

7.5

11.0

-

Chemical & Chemical Products

1.4

3.5

4.5

3.5

-

Plastic Products

2.7

3.9

5.1

-

-

Iron & Steel

2.8

1.6

2.2

-

-

Fabricated Metal Products

2.8

4.6

5.6

4.6

-

Non-metallic Mineral

6.9

6.8

6.3

5.4

-

Transport Equipment

14.4

5.2

(3.1)

4.7

-

Paper & Paper Products

4.7

3.2

5.4

5.8

-

Crude Oil Refineries

13.0

14.3

13.7

-

-

Industry Non-Performing Loans ( MYR Million )

5,730.8

4,243.7

4,214.1

-

-

% of Industry Non-Performing Loans

25.6

19.0

18.5

-

-

Construction

11.7

8.2

7.4

7.6

7.5

Industry Non-Performing Loans ( MYR Million )

1,666.4

1,638.0

1,793.9

-

-

% of Industry Non-Performing Loans

7.5

7.3

7.9

-

-

Services

6.6

5.1

5.6

5.9

5.8

Electric, Gas & Water

3.8

3.6

5.4

2.5

2.6

Transport, Storage & Communication

7.70

7.55

6.85

7.35

7.30

Wholesale, Retail, Hotel & Restaurant

7.70

6.65

6.65

7.05

6.65

Finance, Insurance & Real Estate

5.15

2.90

4.70

5.70

5.90

Government Services

6.3

4.0

4.9

4.4

4.5

Other Services

4.8

4.7

4.8

5.3

5.3

Industry Non-Performing Loans ( MYR Million )

5,373.5

6,806.6

7,190.6

-

-

% of Industry Non-Performing Loans

24.1

30.5

31.5

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

16292 : Manufacture of other products of wood, cane, articles of cork, straw and plaiting materials

INDUSTRY :

MANUFACTURING

The manufacturing sector is forecast to increase 5.3% in year 2018 (2017: 5.5%). Output of export-oriented industries is projected to expand on account of sustained demand for E&E, refined petroleum and woods products. Growth in the domestic-oriented industries is anticipated to remain resilient supported by ongoing construction of infrastructure projects as well as strong demand for consumer products, especially food and transport equipment.

Value added of the manufacturing sector expanded further by 5.8% during the first half of 2017 (January – June 2016: 4.4%) with expansion across a wide range of outputs in both the export- and domestic-oriented industries. During the first eight months, production increased 6.4%, while sales rebounded significantly by 15.6% to RM500.2 billion (January – August 2016: 4%; -0.7%; RM432.8 billion). Output of export-oriented industries rose 6.5% (January – August 2016: 4.3%) led by an upturn in global electronics cycle and further enhanced by strong demand for resource-based products. Meanwhile, domestic-oriented industries expanded 6.2% (January – August 2016: 3.4%) benefiting from vibrant consumption and construction activities. 

Within the export-oriented industries, E&E output expanded 9.3% while sales surged 16.3% to RM169.5 billion (January – August 2016: 6.8%; 9%; RM145.8 billion). Growth emanated mainly from the expansion in output of printed circuit boards, semiconductor devices and electronic integrated circuits which strengthened further by 24.4%, 11.9% and 16.9% (January – August 2016: 11.9%; 5.9%; 15%), respectively. This is in line with the trend in global semiconductor sales which is expected to expand 11.5% in 2017, the highest level since 2010. On the contrary, the output of computers and peripheral equipment contracted 7.7% (January – August 2016: 3.1%) as a result of lower demand for notebooks and personal computers following rising preferences for smartphones and tablets. Meanwhile, consumer electronics grew at a moderate pace of 2.6% (January – August 2016: 5.3%) partly due to lower demand for in-car entertainment, portable media players and digital cameras.

Output of wood and wood products grew 7.3% (January – August 2016: 7.8%). The growth was primarily supported by output of sawmilling and planning of wood which expanded 14.7% (January – August 2016: 16.8%) in response to strong demand from Australia, Japan and the US. Meanwhile, production of wooden and cane furniture remained steady at 10.9% (January – August 2016: 10.9%), benefiting from greater adoption of technology and diversification of export markets.

Manufacture of food products rose 11.2%, largely attributed to a significant increase in refined palm oil at 26.1% (January – August 2016: 6.3%; -3.3%), following higher production of CPO. Meanwhile, output of other food products grew 7% supported by production of bread, cakes and other bakery (15.6%) as well as biscuits and cookies (12%) to meet the rising demand from households (January – August 2016: 11.1%; 19.2%; 19.1%).

For the year, the manufacturing sector is projected to expand further by 5.5% (2016: 4.4%) mainly attributed to an upturn in global semiconductor sales as well as higher demand for consumer products and construction materials. 

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1988, the Subject is a Private Limited company, focusing on manufacturing of timber door and frames. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. With MYR 5,000,000 in issued and paid up capital, the Subject has the potential of capturing a higher market shares as it is competing aggressively in the market. 

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a moderate size company, the Subject has a total workforce of 100 employees in its business operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 


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 17,416,150, the Subject should be able to maintain its business in the near terms.

 
The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

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


The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market. 


Based on the above condition, we recommend credit be granted to the Subject normally.



PROFIT AND LOSS ACCOUNT

 

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

DESA K.L. ENTERPRISE SDN. BHD.

 

Financial Year End

2017-05-31

2016-05-31

2015-05-31

2014-05-31

2013-05-31

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

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

31,450,971

33,430,776

29,329,181

29,627,353

27,795,703

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

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

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

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

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

Total Turnover

31,450,971

33,430,776

29,329,181

29,627,353

27,795,703

Costs of Goods Sold

(26,989,491)

(28,938,166)

(25,621,265)

(25,948,465)

(24,048,479)

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

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

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

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

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

Gross Profit

4,461,480

4,492,610

3,707,916

3,678,888

3,747,224

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

275,086

341,450

313,473

256,490

203,326

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

275,086

341,450

313,473

256,490

203,326

Taxation

(142,803)

(164,523)

(114,875)

(105,948)

(70,520)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

132,283

176,927

198,598

150,542

132,806

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

2,543,843

2,366,916

2,168,318

2,017,776

1,884,970

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

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

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

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

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

As restated

2,543,843

2,366,916

2,168,318

2,017,776

1,884,970

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

2,676,126

2,543,843

2,366,916

2,168,318

2,017,776

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,676,126

2,543,843

2,366,916

2,168,318

2,017,776

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bankers' acceptance

667,669

693,579

671,166

602,212

569,453

Hire purchase

297,089

243,617

211,483

193,767

178,415

Term loan / Borrowing

232,370

250,062

220,087

210,174

220,984

Others

114,060

110,251

84,653

87,371

82,175

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

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

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

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

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

1,311,188

1,297,509

1,187,389

1,093,524

1,051,027

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

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

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

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

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

DEPRECIATION (as per notes to P&L)

1,268,831

1,200,235

931,447

822,572

888,814

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

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

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

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

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

Total Amortization And Depreciation

1,268,831

1,200,235

931,447

822,572

888,814

 

 

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

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

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

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

 

BALANCE SHEET

 

DESA K.L. ENTERPRISE SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

23,946,160

24,092,531

20,358,058

20,068,168

19,821,291

LONG TERM INVESTMENTS/OTHER ASSETS

Development properties/expenditure

-

-

1,863,228

-

-

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

1,863,228

-

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

23,946,160

24,092,531

22,221,286

20,068,168

19,821,291

CURRENT ASSETS

Stocks

10,499,929

9,758,709

9,921,438

9,600,677

7,941,455

Trade debtors

11,596,837

12,405,592

13,101,242

12,963,692

12,874,007

Other debtors, deposits & prepayments

548,220

587,251

508,036

251,665

209,672

Cash & bank balances

184,070

105,604

38,413

654,726

537,846

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

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

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

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

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

TOTAL CURRENT ASSETS

22,829,056

22,857,156

23,569,129

23,470,760

21,562,980

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

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

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

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

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

TOTAL ASSET

46,775,216

46,949,687

45,790,415

43,538,928

41,384,271

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

7,362,849

7,003,576

5,894,715

5,738,150

4,707,257

Other creditors & accruals

3,204,364

2,893,691

3,546,082

4,910,356

4,092,669

Hire purchase & lease creditors

1,819,162

1,943,344

1,359,189

1,238,221

1,148,873

Bank overdraft

4,640,904

4,854,382

4,569,377

2,692,852

4,160,936

Short term borrowings/Term loans

677,217

605,781

576,908

567,244

489,903

Bill & acceptances payable

6,297,000

6,297,000

6,299,000

6,298,000

5,300,000

Amounts owing to director

457,572

138,562

670,233

660,861

844,919

Provision for taxation

84,559

123,917

67,623

77,882

56,944

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

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

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

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

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

TOTAL CURRENT LIABILITIES

24,543,627

23,860,253

22,983,127

22,183,566

20,801,501

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

(1,714,571)

(1,003,097)

586,002

1,287,194

761,479

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

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

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

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

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

LONG TERM LIABILITIES

Long term loans

2,447,508

2,722,600

3,362,920

2,689,773

2,579,872

Hire purchase creditors

2,031,556

2,756,189

2,038,955

1,492,263

999,128

Deferred taxation

336,375

326,778

298,473

264,984

245,970

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

4,815,439

5,805,567

5,700,348

4,447,020

3,824,970

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

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

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

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

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

TOTAL NET ASSETS

17,416,150

17,283,867

17,106,940

16,908,342

16,757,800

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

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

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

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

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

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

TOTAL SHARE CAPITAL

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

RESERVES

Revaluation reserve

9,740,024

9,740,024

9,740,024

9,740,024

9,740,024

Retained profit/(loss) carried forward

2,676,126

2,543,843

2,366,916

2,168,318

2,017,776

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

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

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

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

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

TOTAL RESERVES

12,416,150

12,283,867

12,106,940

11,908,342

11,757,800

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

17,416,150

17,283,867

17,106,940

16,908,342

16,757,800

 

 

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

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

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

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

 

FINANCIAL RATIO

 

DESA K.L. ENTERPRISE SDN. BHD.

 

TYPES OF FUNDS

Cash

184,070

105,604

38,413

654,726

537,846

Net Liquid Funds

(10,753,834)

(11,045,778)

(10,829,964)

(8,336,126)

(8,923,090)

Net Liquid Assets

(12,214,500)

(10,761,806)

(9,335,436)

(8,313,483)

(7,179,976)

Net Current Assets/(Liabilities)

(1,714,571)

(1,003,097)

586,002

1,287,194

761,479

Net Tangible Assets

17,416,150

17,283,867

17,106,940

16,908,342

16,757,800

Net Monetary Assets

(17,029,939)

(16,567,373)

(15,035,784)

(12,760,503)

(11,004,946)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

1,586,274

1,638,959

1,500,862

1,350,014

1,254,353

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

2,855,105

2,839,194

2,432,309

2,172,586

2,143,167

BALANCE SHEET ITEMS

Total Borrowings

17,913,347

19,179,296

18,206,349

14,978,353

14,678,712

Total Liabilities

29,359,066

29,665,820

28,683,475

26,630,586

24,626,471

Total Assets

46,775,216

46,949,687

45,790,415

43,538,928

41,384,271

Net Assets

17,416,150

17,283,867

17,106,940

16,908,342

16,757,800

Net Assets Backing

17,416,150

17,283,867

17,106,940

16,908,342

16,757,800

Shareholders' Funds

17,416,150

17,283,867

17,106,940

16,908,342

16,757,800

Total Share Capital

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

Total Reserves

12,416,150

12,283,867

12,106,940

11,908,342

11,757,800

GROWTH RATIOS (Year on Year) (%)

Revenue

(5.92)

13.98

(1.01)

6.59

12.54

Proft/(Loss) Before Tax

(19.44)

8.92

22.22

26.15

40.68

Proft/(Loss) After Tax

(25.23)

(10.91)

31.92

13.35

39.53

Total Assets

(0.37)

2.53

5.17

5.21

5.68

Total Liabilities

(1.03)

3.42

7.71

8.14

9.29

LIQUIDITY (Times)

Cash Ratio

0.01

0

0

0.03

0.03

Liquid Ratio

0.50

0.55

0.59

0.63

0.65

Current Ratio

0.93

0.96

1.03

1.06

1.04

WORKING CAPITAL CONTROL (Days)

Stock Ratio

122

107

147

118

104

Debtors Ratio

135

135

163

160

169

Creditors Ratio

100

88

84

81

71

SOLVENCY RATIOS (Times)

Gearing Ratio

1.03

1.11

1.06

0.89

0.88

Liabilities Ratio

1.69

1.72

1.68

1.57

1.47

Times Interest Earned Ratio

1.21

1.26

1.26

1.23

1.19

Assets Backing Ratio

3.48

3.46

3.42

3.38

3.35

PERFORMANCE RATIO (%)

Operating Profit Margin

0.87

1.02

1.07

0.87

0.73

Net Profit Margin

0.42

0.53

0.68

0.51

0.48

Return On Net Assets

9.11

9.48

8.77

7.98

7.49

Return On Capital Employed

5.53

5.48

5.22

5.34

4.84

Return On Shareholders' Funds/Equity

0.76

1.02

1.16

0.89

0.79

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 65.12

UK Pound

1

INR 92.51

Euro

1

INR 80.51

MYR

1

INR 16.85

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

VIV

 

 

Report Prepared by :

DNS

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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.