Here is a compilation of terms that you are likely to encounter frequently while managing your business and reviewing CRIF Reports. For help with any uncertain report details, reach out to CRIF's customer service.
| Alphabet | Title | Description |
| A | Assets | The resources that a company owns or controls, which can be used to generate revenue. Assets can include tangible items such as property, equipment, and inventory, as well as intangible items such as patents, trademarks, and goodwill. |
| A | Assets Turnover Ratio | A financial ratio that measures how efficiently a company is using its assets to generate revenue. The ratio is calculated by dividing a company's net sales by its total assets. A higher assets turnover ratio indicates that the company is generating more revenue per ringgit of assets it owns or controls. |
| A | Auditors | Professionals who are responsible for reviewing a company's financial statements and ensuring that they are accurate and comply with relevant accounting standards. Auditors can be internal (i.e., employed by the company) or external (i.e., hired by the company to provide an independent review). |
| A | Annual Returns | A document that companies are required to file with the relevant government agency each year. The annual return typically includes information about the company's directors, shareholders, registered office address, and other basic information. |
| A | Activities | The operations that a company engages in as part of its core business to generate revenue. |
| A | Arbitration Initiation Summons (Commercial) | A legal document that initiates an arbitration proceeding between two commercial entities. It is used when there is a dispute between two companies that they want to resolve through arbitration rather than going to court. |
| B | Business Entity | The legal structure under which a business operates. Common types of business entities include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each type of business entity has different legal and tax implications, as well as different requirements for formation and operation. |
| B | Business Identification Number | A unique identifier assigned to businesses by the government or other regulatory agencies. In Malaysia, businesses are assigned a Business Registration Number (BRN) by the Companies Commission of Malaysia (SSM). The BRN serves as the primary identifier for businesses in Malaysia and is used for various purposes such as tax registration, licensing, and compliance reporting. |
| B | Balance Sheet | A financial statement that provides a snapshot of a company's financial position at a specific point in time. The balance sheet lists the company's assets, liabilities, and equity, and shows how these items are related to each other. The balance sheet is an important tool for evaluating a company's financial health and can be used to calculate various financial ratios. |
| B | Bankruptcy | A legal process in which an individual or company declares that they are unable to pay their debts. The process involves liquidating assets to pay off creditors or creating a repayment plan. Bankruptcy can be initiated voluntarily by the debtor or involuntarily by creditors who are owed money. |
| B | Business Registration Extracts | Official documents that provide information about a company's registration with the relevant government agency. In Malaysia, companies are registered with the Companies Commission of Malaysia (SSM), and business registration extracts can be obtained from the SSM website or office. |
| C | Capital Structure | The way in which a company finances its operations through various types of capital such as equity or debt. A company's capital structure can have significant implications for its financial health and growth potential. |
| C | Current Assets | Assets that are expected to be converted into cash within one year or one operating cycle (whichever is longer). Examples of current assets include cash and cash equivalents, accounts receivable, inventory, and prepaid expenses. |
| C | Current Liabilities | Liabilities that are due within one year or one operating cycle (whichever is longer). Examples of current liabilities include accounts payable, short-term loans, accrued expenses, and taxes payable. |
| C | Creditor | A person or entity that is owed money by another person or entity. In the context of business, creditors can include suppliers, lenders, and other parties who have extended credit to the company. |
| C | Charges | Any claims or liens that are placed on a company's assets as collateral for a debt or other obligation. Charges can be registered with the relevant government agency and can affect a company's ability to borrow or obtain credit in the future. |
| C | Creditworthiness | A person or entity's ability to repay debts. Creditworthiness is often evaluated by lenders and other creditors when deciding whether to extend credit. |
| C | Consolidated | Financial statements that combine the financial results of multiple entities into a single set of financial statements. Consolidated financial statements are typically used when one entity has control over another entity, such as in the case of a parent company and its subsidiaries. |
| C | Changes in Retained Earnings | Changes in the amount of earnings that a company has retained over time. Retained earnings are profits that a company has earned but not distributed as dividends. |
| C | Current Ratio | Financial ratio that measures a company's ability to pay its short-term obligations using its current assets. The current ratio is calculated by dividing current assets by current liabilities. |
| C | Current Liabilities to Equity Ratio | A financial ratio that measures the proportion of a company's total liabilities that are financed by equity. The current liabilities to equity ratio is calculated by dividing total current liabilities by total equity. |
| C | Capital | The funds or resources that a company uses to finance its operations and growth. Capital can come from various sources such as equity, debt, and retained earnings. |
| C | Capital Structure Ratios | Financial ratios that measure how a company finances its operations and growth using different types of capital such as equity or debt. Examples of capital structure ratios include debt-to-equity ratio, debt-to-assets ratio, and fixed assets to equity ratio. |
| C | Case Type | The specific category or type of legal case that is being pursued. It provides information about the nature of the legal dispute and can be useful for understanding the legal history of a person or entity. |
| C | Civil Interlocutory Appeal of Construction Case from Sessions Court | This is a specific type of case in which one party appeals a decision made by a lower court (in this case, the Sessions Court) regarding a construction-related dispute. An interlocutory appeal is an appeal made during the course of litigation, rather than after a final judgment has been made. |
| C | Civil Interlocutory Appeal from the Magistrate's Court (General) | This is another type of interlocutory appeal, but in this case, it is from a decision made by the Magistrate's Court. The Magistrate's Court is a lower court that deals with less serious criminal cases and civil disputes. |
| C | Companies Act 2016 | An act passed by the Malaysian government that governs how companies are formed, managed, and dissolved in Malaysia. It sets out rules and regulations for companies operating in Malaysia, including requirements for registration, corporate governance, and financial reporting. |
| C | Company Objectives | The goals or targets that a company sets for itself in order to achieve its mission and vision. Company objectives can be short-term or long-term, and can include financial targets such as revenue growth or profitability, as well as non-financial targets such as customer satisfaction or employee engagement. |
| D | Date of Tabling | The date on which a company's financial statements are presented to its board of directors or shareholders for review and approval. |
| D | Debt to Assets Ratio | A financial ratio that measures the proportion of a company's assets that are financed by debt. The debt to assets ratio is calculated by dividing total debt by total assets. A higher ratio indicates that a larger portion of the company's assets are financed by debt, which suggests that the company may be more reliant on debt financing. |
| D | Debt to Equity Ratio | A financial ratio that measures the proportion of a company's total liabilities that are financed by equity. The debt to equity ratio is calculated by dividing total debt by total equity. A higher ratio indicates that a larger portion of the company's liabilities are financed by debt, which suggests that the company may be more reliant on debt financing. |
| D | Defendant | The person or entity that is being accused or sued by the plaintiff. The defendant is responsible for defending themselves against the allegations made by the plaintiff. |
| D | Due Diligence | The process of conducting a thorough investigation or review of a person, company, or investment opportunity before making a decision. It involves gathering information and assessing potential risks and benefits to ensure that all relevant factors have been considered. |
| E | Equity | Ownership in a company or property. It represents the value of an asset after all debts and liabilities have been paid off. Eequity can also refer to stocks or other securities that represent ownership in a company. |
| E | Exempt Company Status | A type of company that is exempt from certain legal and regulatory requirements, such as the requirement to file audited financial statements or hold annual general meetings. Exempt companies are typically smaller or privately held companies that do not have a large number of shareholders or operate in highly regulated industries. |
| E | Expenses | Costs incurred by an individual or company in order to carry out business activities. This can include costs such as salaries, rent, utilities, supplies, and other expenses necessary for running a business. |
| E | Equity Ownership | Ownership interest that shareholders have in a company. Equity ownership represents the residual value of a company's assets after all liabilities have been paid off, and can be expressed as a percentage of total equity. Equity ownership gives shareholders the right to vote on important company decisions, such as the election of board members or major corporate transactions. |
| E | Efficency Ratios | Financial ratios that measure how effectively a company is using its resources to generate revenue and profits. Examples of efficiency ratios include asset turnover ratio, inventory turnover ratio, and accounts receivable turnover ratio. Efficiency ratios can provide insights into a company's operational efficiency and effectiveness, as well as help investors evaluate potential investment opportunities. |
| E | Environmental Offense Suit Case (General) | An environmental offense suit case (general) is a type of legal case that involves a violation of environmental laws or regulations. This can include cases related to pollution, waste disposal, and other environmental issues. The term "general" indicates that the case is not specific to any particular type of environmental offense. |
| E | Environmental Offense Suit Case (Specific) | An environmental offense suit case (specific) is a type of legal case that involves a specific type of environmental offense. For example, it could be a case related to illegal dumping of hazardous waste or failure to comply with air quality regulations. The term "specific" indicates that the case is focused on a particular type of environmental offense rather than being more general in nature. |
| F | Financial Performance | How well a company is doing financially, typically measured by metrics such as revenue, profit, and return on investment. Financial performance can be evaluated over different time periods, such as quarterly or annually, and can be compared to industry benchmarks or competitors. |
| F | Financial Health | The overall financial well-being of a company, taking into account factors such as liquidity, solvency, and profitability. A company with good financial health is able to meet its financial obligations in a timely manner and has the resources to invest in future growth opportunities. |
| F | Financial Status | Current financial position of a company at a specific point in time. Financial status can be evaluated by looking at a company's balance sheet, which shows its assets, liabilities, and equity. |
| F | Financial Year End | The end of a company's fiscal year, which is typically 12 months long. The financial year end is an important date for companies as it marks the end of one reporting period and the beginning of another. |
| F | Financial Obligation | Any legal or contractual obligation that a company has to pay money or provide goods or services in the future. Examples of financial obligations include loans, leases, and accounts payable. |
| F | Fixed Assets | Long-term assets that are used in a company's operations and are not intended for sale. Examples of fixed assets include property, plant, and equipment (PP&E), vehicles, and machinery. |
| F | Financial Statements | Formal reports that show a company's financial performance over a specific period of time. Financial statements provide important information about a company's revenue sources, expenses, assets, and liabilities. |
| F | Fully Satisfied | A situation where all financial obligations of a company have been met in full and on time. This can include payments to suppliers, lenders, and other creditors. |
| F | Full Company Name | The complete legal name of a company, including any suffixes such as "Sdn. Bhd." or "Bhd." The full company name is important for legal and regulatory purposes, as well as for identifying the company in public records. |
| F | Future Financial Stress Outlook | An assessment of a company's ability to meet its financial obligations in the future, taking into account potential risks and uncertainties. A negative outlook may indicate that a company is at risk of defaulting on its financial obligations or experiencing financial distress. |
| F | Financial Ratios | Calculations that compare different financial metrics to provide insights into a company's financial health and performance. Financial ratios can be used by investors, analysts, and other stakeholders to evaluate a company's profitability, liquidity, solvency, and efficiency. |
| F | Financial Information | Any data or reports related to a company's finances. This can include financial statements, balance sheets, income statements, cash flow statements, and other documents that provide insights into a company's revenue sources, expenses, assets, and liabilities. |
| F | Fixed Assets to Equity | A financial ratio that compares the value of fixed assets (such as property or equipment) with the amount of equity held by shareholders. This ratio can provide insights into how much capital is being invested in long-term assets relative to shareholder equity. |
| I | Issued Capital | The total amount of capital that a company has raised by issuing shares to investors. This includes both common and preferred shares, and represents the amount of money that shareholders have invested in the company. |
| I | Income Statement | A financial statement that shows a company's revenue, expenses, and net income over a specific period of time. The income statement provides insights into a company's profitability by showing how much money it is making (revenue) and how much it is spending (expenses). |
| I | Investment | The act of putting money into something with the expectation of earning a return on that investment. |
| I | Initiating Summons (Trade) | An initiating summons (trade) is a legal document that initiates a civil lawsuit between two commercial entities. It is used when there is a dispute between two companies that they want to resolve through the court system. |
| I | Interlocutory Appeal of Commercial Cases from Magistrates | This is a specific type of case in which one party appeals a decision made by a lower court (in this case, the Magistrate's Court) regarding a commercial dispute. An interlocutory appeal is an appeal made during the course of litigation, rather than after a final judgment has been made. |
| I | Immigration Applications | The process of applying for permission to enter or reside in a foreign country. This can include applications for visas, work permits, and permanent residency. |
| I | Investors | Individuals or entities that provide capital to a company or organization with the expectation of receiving a return on their investment. They can include individuals, venture capitalists, private equity firms, and institutional investors such as pension funds and mutual funds. |
| J | Jurisdiction/Division | The geographic area or legal authority in which a court has the power to hear and decide cases. Different courts have different jurisdictions and divisions based on factors such as location, subject matter, and level of authority. |
| L | Liquidity | The ability of an individual or company to convert assets into cash quickly without losing value. It is an important measure of financial health and stability. |
| L | Legal Form | The structure or type of legal entity that a business takes on. This can include sole proprietorships, partnerships, corporations, and other types of legal entities. |
| L | Liquidity Ratios | Financial ratios that measure a company's ability to meet its short-term obligations using its current assets. These ratios are used by investors and analysts to assess a company's financial health and stability. |
| L | Legal Disputes | Disagreements or conflicts between two or more parties that are resolved through the legal system. |
| L | Litigations | The process of resolving a dispute through the court system. It involves filing a lawsuit, presenting evidence and arguments in court, and obtaining a judgment or settlement. |
| L | Line of Business | The specific industry or sector in which a company operates and registered in SSM. |
| L | Liabilities | Debts or obligations that an individual or company owes to others. This can include loans, accounts payable, taxes owed, and other financial obligations. |
| L | Legal Cases | Disputes that are resolved through the legal system. This can include civil lawsuits, criminal cases, and other types of legal proceedings. |
| L | Legal Documents | Any written materials that are used in legal proceedings. This can include contracts, agreements, court filings, and other types of documents. |
| L | Legal Requirement | Any law or regulation that must be followed by individuals or companies. Failure to comply with these requirements can result in penalties or other consequences. |
| L | Legal Issues | Any problems or challenges related to laws or regulations. This can include disputes, compliance issues, and other legal concerns. |
| L | Legal Proceedings | The formal process of resolving a legal dispute through the court system or other legal channels. |
| L | Legal Consequences | The outcomes or penalties that result from violating laws or regulations. This can include fines, imprisonment, loss of licenses or permits, and other legal sanctions. Legal consequences can also include civil penalties such as damages awarded in a lawsuit. |
| M | Management | Individuals responsible for overseeing the operations of a company or organization. This can include executives, managers, and supervisors who are responsible for making decisions about strategy, operations, and personnel. |
| N | Non-current Assets | Assets that a company expects to hold for more than one year. Examples of non-current assets include property, plant, and equipment, long-term investments, and intangible assets such as patents or trademarks. |
| N | Non-current Liabilities | Liabilities that a company expects to pay off over a period of more than one year. Examples of non-current liabilities include long-term debt and deferred tax liabilities. |
| N | Net Dividends | The amount of money paid out to shareholders after deducting any taxes or fees. Net dividends are calculated by subtracting any taxes or fees from the total amount of dividends paid out. |
| N | Net Income | The amount of money that a company earns after deducting all expenses from its revenue. Net income is also known as profit or earnings. |
| O | Ownership | The legal rights and responsibilities associated with owning shares in a company. Shareholders who own a significant portion of a company's shares may have voting rights and may be entitled to receive dividends or other benefits. |
| O | Ordinary Shares | Shares in a company that carry no special privileges or restrictions. Ordinary shares typically represent ownership in the company and entitle shareholders to vote on important matters such as electing board members or approving major business decisions. |
| O | Operating Profit | The profit that a company earns from its core business operations before deducting interest and taxes. Operating profit provides insights into how much money a company is making from its primary business activities. |
| O | Other Assets | Any assets that do not fit into other categories such as current assets or non-current assets. Examples of other assets may include deferred tax assets, prepaid expenses, or goodwill. |
| P | Partnership | A type of business structure in which two or more individuals share ownership of the company. There are 2 types of partnership in Malaysia, the conventional partnership and the limited liability partnership (LLP). |
| P | Profits | The amount of money that a company earns after deducting all expenses from its revenue. Profits are also known as earnings or net income. |
| P | Profitability | A company's ability to generate profits over time. A profitable company is one that is able to earn more money than it spends on operating expenses and other costs. |
| P | Paid-up Capital | The amount of money that has been received from shareholders for the issue of shares. |
| P | Profit Before Tax | The profit that a company earns from its core business operations before deducting taxes. Profit before tax provides insights into how much money a company is making from its primary business activities. |
| P | Profit After Tax | The profit that a company earns from its core business operations after deducting taxes. Profit after tax provides insights into how much money a company is making from its primary business activities, taking into account any tax obligations. |
| P | Profit and Loss | A financial statement that shows a company's revenue, expenses, and net income over a specific period of time. The profit and loss statement provides insights into a company's profitability by showing how much money it is making (revenue) and how much it is spending (expenses). |
| P | Profitability Ratios | Financial ratios used to measure a company's profitability relative to various factors such as sales, assets, or equity. Examples of profitability ratios include return on investment (ROI), return on assets (ROA), and return on equity (ROE). |
| P | Plaintiff | A person or entity that initiates a legal action by filing a complaint or petition against another party. In a legal dispute, the plaintiff is the party that claims to have been wronged and seeks relief or compensation from the defendant. |
| P | Penalties | The consequences or punishments imposed for violating laws, regulations, or rules. Penalties can include fines, imprisonment, community service, probation, and other forms of punishment. |
| R | Return on Assets | A financial ratio that measures a company's profitability relative to its total assets. ROA is calculated by dividing a company's net income by its total assets. |
| R | Return on Equity | A financial ratio that measures a company's profitability relative to its shareholders' equity. ROE is calculated by dividing a company's net income by its shareholders' equity. |
| R | Return on Sales | A financial ratio that measures a company's profitability relative to its revenue. ROS is calculated by dividing a company's net income by its revenue. |
| R | Revenues | The total amount of money that a company earns from selling goods or services over a specific period of time. Revenues are also known as sales or turnover. |
| R | Retained Earnings | The portion of a company's profits that are kept in the business rather than paid out as dividends to shareholders. Retained earnings can be used for reinvestment in the business, debt repayment, or other purposes. |
| R | Retained Earnings b/f | The balance of retained earnings at the beginning of an accounting period. |
| R | Retained Earnings c/f | The balance of retained earnings at the end of an accounting period. |
| R | Return on Capital Employed | A financial ratio that measures how efficiently a company uses its capital to generate profits. ROCE is calculated by dividing operating profit by capital employed, which includes both equity and debt financing. |
| R | Risk Evaluation | A process to assess the level of risk associated with a particular company. The Risk Evaluation process involves analyzing a variety of factors, including the company's financial statements, payment history, industry trends, and other relevant data. This information is then used to generate a score that reflects the level of risk associated with the company. The score is divided into five categories (Score Tranche), ranging from A (Very Low Risk) to E (Very High Risk), |
| R | Regulatory Authorities | Government agencies or bodies responsible for overseeing and enforcing laws and regulations related to a particular industry or sector. |
| R | Return for Allotment of Shares | A legal document that companies in Malaysia are required to submit to the Companies Commission of Malaysia (SSM) when they issue new shares. This document provides details about the newly issued shares, such as the number and type of shares, and any supporting documents related to the issuance. |
| S | Short-term Liabilities | Debts or obligations that a company owes and is expected to pay off within a year or less. Examples of short-term liabilities include accounts payable, short-term loans, and accrued expenses. |
| S | Shareholders | Individuals or entities that own shares in a company. Shareholders can be either common shareholders, who have voting rights and receive dividends, or preferred shareholders, who have priority over common shareholders in receiving dividends but do not have voting rights. |
| S | Suruhanjaya Syarikat Malaysia (SSM) | The regulatory body responsible for overseeing companies and businesses in Malaysia. SSM is responsible for registering new companies, maintaining company records, and enforcing compliance with relevant laws and regulations. |
| S | Shareholders' Equity | The portion of a company's assets that belong to its shareholders after all liabilities have been paid off. Shareholders' equity includes common stock, retained earnings, and other reserves. |
| S | Shareholder Profit | The portion of a company's profits that are distributed to its shareholders as dividends. Shareholder profit is calculated by subtracting all expenses from revenue and then distributing the remaining profits among shareholders according to their ownership stake in the company. |
| S | Statement of Accounts of a Company | A financial statement that shows a company's financial position over a specific period of time. The statement of accounts typically includes information on revenues, expenses, assets, liabilities, equity, and cash flows. The statement of accounts provides insights into how well a company is performing financially and how it is managing its resources. |
| S | Score Tranche | The different levels of risk associated with a company's credit score. The Score Tranche is divided into five categories, ranging from A (Very Low Risk) to E (Very High Risk). Each category represents a range of credit scores that correspond to a particular level of risk. |
| S | Summary of Financial Information | A condensed version of a company's financial statements that provides an overview of its financial performance. The summary typically includes information on revenues, expenses, assets, liabilities, and equity. |
| S | Short-term Obligations | Debts or obligations that a company owes and is expected to pay off within a year or less. Examples of short-term obligations include accounts payable, short-term loans, and accrued expenses. |
| S | Share Capital | The total amount of money that a company has raised by issuing shares to investors. Share capital represents the ownership stake that shareholders have in the company and is typically recorded in the company's balance sheet as part of shareholders' equity. |
| T | Tort (Professional Negligence) | A type of legal case in which a plaintiff (usually an individual or a company) sues a defendant (usually a professional service provider) for damages resulting from the defendant's failure to provide services that meet the expected standard of care. |
| U | Unqualified (Y/N) | The auditor's opinion on a company's financial statements. An unqualified opinion means that the auditor has reviewed the financial statements and found them to be free from material misstatements or errors. |
| W | Writ of Summons (Trade) | A legal document used in Malaysia to initiate civil proceedings in court. It is typically used in cases related to trade disputes between parties such as individuals or companies. The writ sets out the details of the claim being made by the plaintiff against the defendant and must be served on the defendant within a specified time frame. |