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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

485024

Report Date :

12.01.2018

 

IDENTIFICATION DETAILS

 

Name :

GALAXY POLYMERS SDN. BHD.

 

 

Registered Office :

47-A, 1st Floor, Jalan Bayu Tinggi 2b/Ks6, 41200 Klang, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.08.2016

 

 

Date of Incorporation :

28.08.2014

 

 

Com. Reg. No.:

1106953-U

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

The Subject is engaged in the wholesale of metal and non metal waste.

 

 

No. of Employees :

Not Available

 

 

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 :

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

 

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

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 2015. The ringgit rebounded in early 2016, but 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.

:

1106953-U

COMPANY NAME

:

GALAXY POLYMERS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

28/08/2014

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

47-A, 1ST FLOOR, JALAN BAYU TINGGI 2B/KS6, 41200 KLANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

SUITE NO 20/12 LEVEL 20, CENTRO NO 8, JALAN BATU TIGA LAMA, 41300 KLANG, SELANGOR, MALAYSIA.

TEL.NO.

:

N/A

FAX.NO.

:

N/A

MOBILE NO.

:

0172151024

CONTACT PERSON

:

SELVAM AYYAVU ( DIRECTOR )

INDUSTRY CODE

:

46698

PRINCIPAL ACTIVITY

:

WHOLESALE OF METAL AND NON METAL WASTE

ISSUED AND PAID UP CAPITAL

:

1,000,000.00 ORDINARY SHARE, OF A VALUE OF MYR 1,000,000.00

SALES

:

MYR 3,869,340 [2016]

NET WORTH

:

MYR 522,103 [2016]

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

SLOW BUT CORRECT

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) wholesale of metal and non metal waste.

 

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

31/03/2017

N/A

MYR 1,000,000.00

28/08/2014

MYR 500,000.00

MYR 500,000.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

SELVAM AYYAVU +

28, JALAN SUNGAI BATU 8/KU6, TAMAN PERINDUSTRIAN KLANG UTAMA, 42100 KLANG, SELANGOR, MALAYSIA.

Z3692987

900,000.00

90.00

MR. DEVENDRAN A/L PERUMAL +

21, JALAN HAMZAH ALANG 25, TAMAN INTAN 6, 42200 KAPAR, SELANGOR, MALAYSIA.

760201-08-5701 A3295290

100,000.00

10.00

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

------

1,000,000.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. DEVENDRAN A/L PERUMAL

Address

:

21, JALAN HAMZAH ALANG 25, TAMAN INTAN 6, 42200 KAPAR, SELANGOR, MALAYSIA.

IC / PP No

:

A3295290

New IC No

:

760201-08-5701

Date of Birth

:

01/02/1976

Nationality

:

MALAYSIAN

Date of Appointment

:

28/08/2014


INTEREST CHECK

Interest in companies

:

see below

Interest in business

:

see below

Former interest

:

none in our databank

INTEREST IN COMPANY

No

Local No

Company

Designation

App Date

Shareholding

Profit/(loss) After Tax

Financial Year

Status

As At

No.

%

1

1066134D

DMP RECYCLING SDN. BHD.

Director

11/10/2013

100,000.00

33.33

MYR63,122.00

2016

-

26/12/2017

2

1106953U

GALAXY POLYMERS SDN. BHD.

Director

28/08/2014

100,000.00

10.00

MYR9,532.00

2016

-

26/12/2017


INTEREST IN BUSINESS

No

Local No

Business

Designation

App Date

Shareholding (%)

Status

As At

1

001503528T

FANTASTIC TELECOMMUNICATION

PARTNERSHIP

03/08/2004

25.00

-

26/12/2017

 

DIRECTOR 2

 

Name Of Subject

:

SELVAM AYYAVU

Address

:

28, JALAN SUNGAI BATU 8/KU6, TAMAN PERINDUSTRIAN KLANG UTAMA, 42100 KLANG, SELANGOR, MALAYSIA.

IC / PP No

:

Z3692987

Date of Birth

:

01/06/1981

Date of Appointment

:

28/08/2014



INTEREST CHECK

Interest in companies

:

see below

Interest in business

:

none in our databank

Former interest

:

none in our databank

INTEREST IN COMPANY

No

Local No

Company

Designation

App Date

Shareholding

Profit/(loss) After Tax

Financial Year

Status

As At

No.

%

1

1106953U

GALAXY POLYMERS SDN. BHD.

Director

28/08/2014

900,000.00

90.00

MYR9,532.00

2016

-

26/12/2017

 

FORMER DIRECTOR(S)

 

Name

Address

IC/PP No

Appointed Date

Withdrawn Date

DEVANANDAN KUDUWAN SURENDRAN

NO. 28, JALAN SUNGAI BATU 8/KU6,, TAMAN PERINDUSTRIAN KLANG UTAMA,, KLANG, SELANGOR, MALAYSIA

M3133462

28/08/2014

01/09/2015

 

Note : The above information was generated from our database.



MANAGEMENT

 

 

 

1)

Name of Subject

:

SELVAM AYYAVU

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

JAYASANGAR & CO.

Auditor' Address

:

L11-1, MENARA SENTRAL VISTA, JALAN SULTAN ABDUL SAMAD, BRICKFIELDS, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. NAGARAJAH A/L SINNIAH

IC / PP No

:

A2734194

New IC No

:

740425-10-5021

Address

:

73, JALAN 13, PANDAMARAN JAYA, 42000 PELABUHAN KLANG, SELANGOR, MALAYSIA.

 

2)

Company Secretary

:

MS. MARIAMAH BINTI MHMAD TAHAR

New IC No

:

820705-01-5952

Address

:

64, JALAN KARYAWAN U2/3, TAMAN TTDI JAYA, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

BANKING


No Banker found in our databank.

 

ENCUMBRANCE (S)


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

 

 

LITIGATION CHECK - SUBJECT COMPANY AS A DEFENDANT


* 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

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

INDIA

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

METAL AND NON METAL WASTE

Competitor(s)

:

DAIKI ALUMINIUM INDUSTRY (MALAYSIA) SDN. BHD.

HUA QING ENTERPRISE SDN. BHD.

MUTIARA IMPEX METAL SDN. BHD.

SUISSE QUEST SDN. BHD.

TAIKO METALS SDN. BHD.

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) wholesale of metal and non metal waste.

The Subject is engaged in the metal recycling and trading business.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

60333411871

Current Telephone Number

:

0172151024

Match

:

NO

Address Provided by Client

:

SUITE 20-12 LEVEL 20 CENTRO MALL JALAN BATU TIGA LAMA KLANG

Current Address

:

SUITE NO 20/12 LEVEL 20, CENTRO NO 8, JALAN BATU TIGA LAMA, 41300 KLANG, SELANGOR, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted the Director Mr Selvam and he provided some information.

The Subject refused to provide its number of employees and the banker information.

The Subject does not utilize fax facility. The contact number provided is not answered.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Decreased

[

37.87%

]

Profit/(Loss) Before Tax

:

Decreased

[

22.38%

]

Return on Shareholder Funds

:

Unfavourable

[

1.83%

]

Return on Net Assets

:

Unfavourable

[

2.42%

]

The shrinking turnover could be the result of more entrants into the market which eroded the Subject's market share.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

:

Favourable

[

14 Days

]

Debtor Ratio

:

Favourable

[

7 Days

]

Creditors Ratio

:

Favourable

[

0 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The 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

[

18.22 Times

]

Current Ratio

:

Favourable

[

25.30 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 Subject's performance deteriorated over the years with lower turnover and profit. 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:

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

5.5

5.3

Domestic Demand ( % )

6.4

6.2

6.3

-

-

Private Expenditure ( % )

7.9

6.9

7.8

10.6

10.0

Consumption ( % )

6.5

6.1

5.1

-

-

Investment ( % )

12.0

8.1

10.0

12.0

-

Public Expenditure ( % )

2.3

4.2

3.3

-

-

Consumption ( % )

2.1

4.3

2.0

-

-

Investment ( % )

2.6

(1.0)

1.1

-

-

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

-

-

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

8.2

-

-

Rubber

(10.4)

(11.0)

(12.3)

-

-

Forestry & Logging

(4.2)

(7.2)

(4.8)

-

-

Fishing

2.7

2.1

2.9

-

-

Other Agriculture

6.2

6.0

6.8

-

-

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

3.3

21.1

-

Electrical & Electronics

11.8

9.2

7.0

-

-

Rubber Products

(1.3)

5.1

3.9

-

-

Wood Products

7.8

7.0

7.0

-

-

Textiles & Apparel

10.8

7.5

6.7

-

-

Domestic-oriented Industries

7.7

4.7

3.0

-

-

Food, Beverages & Tobacco

6.1

8.9

7.5

-

-

Chemical & Chemical Products

1.4

3.5

5.1

-

-

Plastic Products

2.7

3.9

5.1

-

-

Iron & Steel

2.8

1.6

2.2

-

-

Fabricated Metal Products

2.8

4.6

5.1

-

-

Non-metallic Mineral

6.9

6.8

5.5

-

-

Transport Equipment

14.4

5.2

(3.1)

-

-

Paper & Paper Products

4.7

3.2

3.9

-

-

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

46698 : Wholesale of metal and non-metal waste and scrap and materials for recycling

INDUSTRY :

TRADING

Malaysia's retail sales will likely grow 3.7% in 2017, slower than previously estimated 3.9%, as consumer sentiment remains weak amid rising cost of living in Southeast Asia's third largest economy.

The cut in forecast was the second of such revision by Retail Group Malaysia, a retail consulting firm, from an initial target of 5% retail sales expansion pace in 2017. The estimate follows a survey of members of Malaysia Retailers Association on their second quarter performance and outlook for the year. Retail sales grew 1.7% in 2016.

According to Retail Group Malaysia (RGM), Malaysian retailers have seen the sales expanded 4.9 % from April to June 2017, reversing a dismal performance in first three months 2017. For the first six months 2016, the retail sale growth rate was 2.5 %. However, the businesses in the next three months are not optimistic, estimating an average growth rate of 2.9 %. The department stores cum supermarket operators are expecting to return to red with a contraction of 2.5 %. Similarly, the department store operators expect their businesses to dip with a negative 1.5 %.

The rise of purchasing power will continue to fall behind the increase in prices of retail goods. More retail goods are expected to raise prices because of higher fuel prices in recent months.

The wholesale trade sub-sector index increased 5.9 % to 165.9 points year-on-year (y-o-y) driven mainly by other specialised wholesale (7.5 %), wholesale of agricultural raw materials and livestock (7.3 %) and wholesale of machinery, equipment and supplies (6.2 %).

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 : Marginal Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2014, the Subject is a Private Limited company, focusing on wholesale of metal and non metal waste. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. A paid up capital of MYR 1,000,000 allows the Subject to expand its business more comfortably. We considered that the Subject's business position in the market is much dependent on the efforts of its directors.

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.

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. 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. Given a positive net worth standing at MYR 522,103, the Subject should be able to maintain its business in the near terms.

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

The industry 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.

 


FINANCIAL

 

PROFIT AND LOSS ACCOUNT

 

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

GALAXY POLYMERS SDN. BHD.

 

Financial Year End

2016-08-31

2015-08-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

TURNOVER

3,869,340

6,227,911

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

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

Total Turnover

3,869,340

6,227,911

Costs of Goods Sold

(3,727,073)

(6,148,949)

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

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

Gross Profit

142,267

78,962

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

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

PROFIT/(LOSS) FROM OPERATIONS

12,648

16,295

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

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

PROFIT/(LOSS) BEFORE TAXATION

12,648

16,295

Taxation

(3,116)

(3,724)

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

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

PROFIT/(LOSS) AFTER TAXATION

9,532

12,571

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

12,571

-

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

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

As restated

12,571

-

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

22,103

12,571

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

22,103

12,571

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

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

INTEREST EXPENSE (as per notes to P&L)

DEPRECIATION (as per notes to P&L)

2,112

1,133

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

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

Total Amortization And Depreciation

2,112

1,133

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

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

 

BALANCE SHEET

 

GALAXY POLYMERS SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

3,093

2,267

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

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

TOTAL LONG TERM ASSETS

3,093

2,267

Stocks

151,351

-

Trade debtors

78,226

757,977

Other debtors, deposits & prepayments

265,227

142,125

Cash & bank balances

45,955

13,971

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

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

TOTAL CURRENT ASSETS

540,759

914,073

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

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

TOTAL ASSET

543,852

916,340

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

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

CURRENT LIABILITIES

Trade creditors

-

386,663

Other creditors & accruals

8,027

13,382

Amounts owing to director

10,425

-

Provision for taxation

2,924

3,543

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

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

TOTAL CURRENT LIABILITIES

21,376

403,588

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

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

NET CURRENT ASSETS/(LIABILITIES)

519,383

510,485

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

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

TOTAL NET ASSETS

522,476

512,752

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

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

SHARE CAPITAL

Ordinary share capital

500,000

500,000

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

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

TOTAL SHARE CAPITAL

500,000

500,000

Retained profit/(loss) carried forward

22,103

12,571

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

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

TOTAL RESERVES

22,103

12,571

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

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

SHAREHOLDERS' FUNDS/EQUITY

522,103

512,571

Deferred taxation

373

181

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

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

TOTAL LONG TERM LIABILITIES

373

181

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

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

522,476

512,752

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

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

 

FINANCIAL RATIO

 

GALAXY POLYMERS SDN. BHD.

 

TYPES OF FUNDS

Cash

45,955

13,971

Net Liquid Funds

45,955

13,971

Net Liquid Assets

368,032

510,485

Net Current Assets/(Liabilities)

519,383

510,485

Net Tangible Assets

522,476

512,752

Net Monetary Assets

367,659

510,304

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

12,648

16,295

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

14,760

17,428

BALANCE SHEET ITEMS

Total Borrowings

0

0

Total Liabilities

21,749

403,769

Total Assets

543,852

916,340

Net Assets

522,476

512,752

Net Assets Backing

522,103

512,571

Shareholders' Funds

522,103

512,571

Total Share Capital

500,000

500,000

Total Reserves

22,103

12,571

GROWTH RATIOS (Year on Year)

Revenue

(37.87)

-

Proft/(Loss) Before Tax

(22.38)

-

Proft/(Loss) After Tax

(24.17)

-

Total Assets

(40.65)

-

Total Liabilities

(94.61)

-

LIQUIDITY (Times)

Cash Ratio

2.15

0.03

Liquid Ratio

18.22

2.26

Current Ratio

25.30

2.26

WORKING CAPITAL CONTROL (Days)

Stock Ratio

14

0

Debtors Ratio

7

44

Creditors Ratio

0

23

SOLVENCY RATIOS (Times)

Gearing Ratio

0

0

Liabilities Ratio

0.04

0.79

Times Interest Earned Ratio

0

0

Assets Backing Ratio

1.04

1.03

PERFORMANCE RATIO (%)

Operating Profit Margin

0.33

0.26

Net Profit Margin

0.25

0.20

Return On Net Assets

2.42

3.18

Return On Capital Employed

2.42

3.18

Return On Shareholders' Funds/Equity

1.83

2.45

Dividend Pay Out Ratio (Times)

0

0

NOTES TO ACCOUNTS

Contingent Liabilities

0

0





 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 63.74

UK Pound

1

INR 86.01

Euro

1

INR 76.14

MYR

1

INR 16.02

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

VIV

 

 

Report Prepared by :

KET

                                                


 

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.