Key Takeaways
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CRIF reports offer a full picture of Malaysia company's financial and non-financial information.
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It can help users assess financial health, spot risks and make informed decisions on creditworthiness, investment and partnerships.
Check if the company you are dealing with has a winding-up status
Checking the winding-up status of a company is important for customers, suppliers, lenders, and investors as it provides insights into the company's legal and financial situation. Here are some key reasons why it's important to check the winding up status of a company:
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Legal compliance - Checking the winding up status of a company can help stakeholders ensure that they are dealing with a legally compliant company. If a company is in winding-up status, it may be unable to fulfill its legal and financial obligations, which can create legal and financial risks for stakeholders.
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Managing risks - By checking the winding up status of a company, stakeholders can manage their own risks more effectively. For example, suppliers may decide to limit their exposure to a company that is in winding-up status to avoid non-payment. Lenders and investors may also avoid providing loans or investing in a company that is in winding-up status.
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Protecting financial interests - Checking the winding up status of a company can help stakeholders protect their financial interests. For example, if a company is in winding-up status, its assets may be sold to pay off its debts. By checking the winding up status of a company, stakeholders can assess their position in the priority of payment and take appropriate actions to protect their financial interests.
By assessing a company's winding up status, stakeholders can manage their risks more effectively, protect their financial interests, and ensure that they are dealing with a legally compliant company.
Where can I see the information in the report?
You can use the CRIF report to check if a company is currently in winding up status by examining its legal status information. The legal status information section of the report will provide details on the company's current legal status, including whether it is currently undergoing winding-up proceedings.
To access this information, follow these steps:
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Go to the CRIF website at https://company-report.crif.com.my/en/products/
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Search for the company you want information about, and select the appropriate report type.
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This information may be found in the section labelled "Company Status."
Check if the company you are dealing with has a paid-up capital of RM1
Checking the paid-up capital status of a company is important for customers, suppliers, lenders, and investors as it provides insights into the financial strength and stability of the company. Here are some key reasons why it's important to check the paid-up capital status of a company:
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Financial strength and stability - Paid-up capital is the amount of capital a company has paid to its shareholders, representing the company's financial strength and stability. A higher paid-up capital indicates that the company has more financial resources available to support its operations, which can increase its credibility and ability to fulfil its financial obligations.
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Creditworthiness - The paid-up capital status of a company is a key factor that lenders and investors consider when assessing its creditworthiness. A higher paid-up capital indicates that the company is financially stable and has a lower risk of defaulting on its financial obligations, which can increase its ability to obtain credit or investment.
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Risk management - Suppliers may check the paid-up capital status of a company before entering into a business relationship with them to assess the company's financial stability and risk level. A low paid-up capital may indicate that the company has limited financial resources and may be at higher risk of defaulting on its obligations, which can impact the supplier's own financial stability and reputation.
By assessing the paid-up capital status of a company, stakeholders can make informed decisions and manage their risks effectively.
Where can I see the information in the report?
You can use the CRIF report to check the paid-up capital of a company that you are dealing with. The paid-up capital information will be included in the financial information section of the report.
To access this information, follow these steps:
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Go to the CRIF website at https://company-report.crif.com.my/en/products/
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Search for the company you want information about, and select the appropriate report type.
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This information can be found in the "Balance Sheet"
If the company's paid-up capital is RM1, this information should be indicated in the report.
Check if the company you are dealing with has liquidity issue?
Liquidity refers to the ability of an individual, company, or market to meet its short-term financial obligations. It is the degree to which an asset or security can be quickly and easily converted into cash without causing a significant change in its market value. Liquidity is essential for financial stability and business operations, as it allows entities to pay their debts and expenses as they come due. In the context of a company, liquidity is often measured using metrics such as the current ratio, quick ratio, and cash conversion cycle. A high level of liquidity is generally viewed as a positive sign, as it indicates that the company is able to meet its financial obligations and can invest in growth opportunities. On the other hand, low liquidity can be a sign of financial distress, as it may indicate that the company is unable to pay its debts and expenses on time.
Checking the liquidity status of a company is important for customers, suppliers, lenders, and investors as it provides insights into the company's ability to meet its financial obligations in the short term. Here are some key reasons why it's important to check the liquidity status of a company:
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Assessing financial health - A company's liquidity status is a key indicator of its financial health. It indicates whether the company has enough cash and liquid assets to cover its short-term obligations, such as debts and accounts payable. By assessing a company's liquidity status, stakeholders can gauge its financial strength and stability.
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Managing risks - By checking the liquidity status of a company, stakeholders can manage their own risks more effectively. For example, suppliers may check a company's liquidity status before offering credit terms to ensure that they will be paid on time. Lenders and investors may also assess a company's liquidity status before providing loans or investing in the company.
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Making informed decisions - Knowing a company's liquidity status can help stakeholders make informed decisions about their business relationships with the company. For example, a customer may decide to place smaller orders with a company that is experiencing liquidity issues to reduce the risk of non-payment. Alternatively, an investor may decide to invest in a company that has a strong liquidity position, which indicates that the company is well-positioned to manage short-term financial challenges.
By assessing a company's liquidity status, stakeholders can manage their risks more effectively and make informed decisions about their business relationships with the company.
Where can I see the information in the report?
By examining its financial information, you can use the CRIF report to check if a company you are dealing with has liquidity issues. The financial information section of the report will provide details on the company's financial health, including its liquidity status.
To access this information, follow these steps:
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Go to the CRIF website at https://company-report.crif.com.my/en/products/
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Search for the company you want information about, and select the appropriate report type.
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This information may be found in the "Financial Ratios"
Check the company's revenue and profit margin
Revenue refers to the total amount of money a company earns from its business activities, such as selling products or services, renting out property, or licensing intellectual property. It is the top line of a company's income statement and is calculated by multiplying the quantity of goods sold or services rendered by the price at which they were sold.
Revenue is an essential indicator of a company's financial health and growth potential, as it represents the money a company can use to fund its operations, pay its expenses, invest in new projects, and distribute to its shareholders as dividends. Revenue is often used to compare the performance of companies within the same industry or sector, and can be analyzed over time to identify trends and patterns in a company's business activities.
Profit margin is a financial metric that represents the amount of profit a company makes from its revenue. It is calculated as the ratio of net profit to revenue, expressed as a percentage. In other words, profit margin measures how efficiently a company generates profits from its sales. A high profit margin indicates that the company is generating a significant amount of profit relative to its revenue, while a low profit margin suggests that the company is struggling to generate profits or is operating with slim margins.
There are different types of profit margins, including gross profit margin, operating profit margin, and net profit margin. Gross profit margin measures the profitability of a company's products or services, by subtracting the cost of goods sold from the revenue. Operating profit margin reflects the profitability of a company's operations, by subtracting operating expenses from revenue. Net profit margin represents the overall profitability of a company, by subtracting all expenses, including taxes and interest, from revenue.
Profit margin is an important metric for investors, as it helps to assess a company's financial health, efficiency, and growth potential. A company with a consistently high profit margin is generally considered to be more attractive to investors than one with a low profit margin.
Where can I see the information in the report?
To access this information, follow these steps:
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Go to the CRIF website at https://company-report.crif.com.my/en/products/
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Search for the company you want information about, and select the appropriate report type.
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This information may be found in the "Profit and Loss"
Check the company's debt-to-equity ratio
The debt-to-equity (D/E) ratio is a financial metric that measures the proportion of debt and equity financing used by a company to fund its operations. It is calculated by dividing a company's total debt by its total equity. Debt refers to the amount of money a company has borrowed, typically through loans or bonds, while equity represents the amount of money invested in the company by shareholders.
A high D/E ratio indicates that a company has a higher level of debt relative to equity, which means that the company may be taking on more financial risk. This is because a higher level of debt can increase a company's interest expenses and decrease its financial flexibility. On the other hand, a low D/E ratio indicates that a company is using more equity financing, which may be seen as a positive sign by investors, as it indicates that the company is less reliant on debt and may be more financially stable.
The ideal D/E ratio varies depending on the industry and the company's business model. For example, companies in industries with stable and predictable cash flows, such as utilities, may have higher D/E ratios than companies in more volatile industries, such as technology or biotechnology. In general, a D/E ratio of 1 or less is considered healthy, while a ratio above 2 may indicate that a company is taking on too much debt.
Where can I see the information in the report?
To access this information, follow these steps:
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Go to the CRIF website at https://company-report.crif.com.my/en/products/
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Search for the company you want information about, and select the appropriate report type.
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This information may be found in the "Financial Ratios"
Check the company's cash flow and cash flow trends
Cash flow refers to the movement of cash in and out of a company over a specific period, usually a month, quarter, or year. It is an important financial metric that helps to measure a company's ability to generate cash from its operations, investments, and financing activities. Positive cash flow means that the company has more cash coming in than going out, while negative cash flow indicates that the company is spending more than it is earning.
Cash flow trends refer to the direction and magnitude of changes in a company's cash flow over time. Analyzing cash flow trends can provide insights into a company's financial health, as well as its growth potential and risk exposure. Positive cash flow trends may indicate that a company is generating more cash from its operations, investing in new projects, or paying down debt. Negative cash flow trends, on the other hand, may signal that a company is facing financial challenges, such as declining sales, rising expenses, or poor investment decisions.
Where can I see the information in the report?
To access this information, follow these steps:
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Go to the CRIF website at https://company-report.crif.com.my/en/products/
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Search for the company you want information about, and select the appropriate report type.
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This information may be found in the "Balance Sheet" under "Current Assets". Current Assets are cash and other assets that are expected to be converted to cash within a year.
Check the company's credit rating
A company's credit rating is a measure of its creditworthiness, which is the likelihood that the company will be able to repay its debts on time and in full. Credit rating agencies, such as CRIF, assign credit ratings to companies based on their financial strength, business risk, and credit history. A higher credit rating indicates that the company is less risky and more likely to repay its debts, while a lower credit rating suggests that the company may have a higher risk of defaulting on its debt obligations.
Investors, lenders, and other stakeholders use credit ratings to assess the risk of investing in or lending money to a company. A higher credit rating may enable a company to obtain lower interest rates on its debt, as lenders are more willing to lend money to a financially stable and creditworthy company. On the other hand, a lower credit rating may make it more difficult and expensive for a company to borrow money or issue bonds.
How does CRIF evaluate a company's credit rating?
CRIF uses Score and Score Tranches to evaluate a company's credit worthiness. The CRIF methodology is designed to provide a quantitative estimate of the future financial stress outlook of a company. Financial stress primarily refers to a decline in revenues and profit margin of the company.
The CRIF Score delivers the following outcomes :
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Score Tranche: Range A = Very Low Risk of financial stress, to E = Very High Risk of financial stress
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Score: from 300 to 900 (the lower the Score, the higher the Risk). The score precisely indicates the risk profile of the company by showing how the company is positioned compared to the average risk score within the Score Tranche.
Where can I see the information in the report?
To access this information, follow these steps:
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Go to the CRIF website at https://company-report.crif.com.my/en/products/
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Search for the company you want information about, and select MY CRIF Report.
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This information may be found in the "Risk Evaluation."
Check the company's shareholder structure and ownership
A company's shareholder structure and ownership refer to the distribution of ownership among the company's shareholders or owners. The shareholder structure may include information about the number of shareholders, the percentage of ownership held by each shareholder, and the types of shares or securities issued by the company.
The ownership structure of a company is a crucial aspect of its governance and decision-making processes. It can provide insights into the level of control and influence of individual shareholders or groups of shareholders over the company's strategic direction, management, and operations. For example, a company with a concentrated ownership structure, where a small number of shareholders hold a significant percentage of ownership, may be more susceptible to conflicts of interest or undue influence.
CRIF report may include information on a company's shareholder structure and ownership, such as the number of shareholders, the percentage of ownership held by each shareholder, and the types of shares or securities issued by the company. This information can be useful for investors, analysts, and other stakeholders in assessing a company's governance, risk management, and growth potential. It can also help investors identify potential conflicts of interest or shareholder activism that may affect the company's performance or value.
Check the company's ultimate beneficial owner
It is important to examine its ownership and shareholder structure, as well as its ultimate beneficial owner (UBO). The shareholder structure of a company refers to the distribution of ownership among its shareholders or owners, including information on the number of shareholders, the percentage of ownership held by each shareholder, and the types of shares or securities issued by the company. Meanwhile, the ownership structure of a company can provide insights into the level of control and influence of individual shareholders or groups of shareholders over the company's strategic direction, management, and operations.
An ultimate beneficial owner (UBO) is an individual or entity that ultimately owns or controls a company or asset. UBOs may be natural persons or legal entities, and they are typically not listed as direct owners in official records or public filings. Instead, they may be hidden behind layers of ownership structures, intermediaries, or nominee shareholders. UBOs are important for several reasons, including their potential influence over a company's strategic direction, management, and operations, and their impact on the company's financial performance or reputation.
When examining a company, CRIF reports may provide information on its shareholder structure, ownership structure, and UBO. This information can be useful for investors, analysts, and other stakeholders in assessing the company's governance, risk management, and growth potential. It can also help identify potential conflicts of interest, related-party transactions, or shareholder activism that may affect the company's performance or value.
Where can I see the information in the report?
To access this information, follow these steps:
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Go to the CRIF website at https://company-report.crif.com.my/en/products/
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Search for the company you want information about, and select the appropriate report type.
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This information may be found in the "Shareholders"
Support
For help with any uncertain report details, reach out to CRIF's customer service. Check out Malaysia Company Profile Report, MY CRIF Report and MY CRIF Premium Report walkthrough articles for more insights.