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MY CRIF Premium Report: Financial Analysis & Litigation Insights Guide

28/07/2023 - 09:01

Key Takeaways

  • This article provides a step-by-step guide to interpreting a MY CRIF Premium Report.
  • Learn how to analyze important information such as a company's financial performance, capital structure, shareholder information, and more.
  • Understand the key ratios used to evaluate a company's financial health, including return on assets, return on equity, return on sales, and liquidity ratios.
  • Understand the legal history of the company and its involvement in any ongoing legal disputes through litigations.
  • By following this walkthrough, you will gain a better understanding of how to evaluate a company's financial status and make informed decisions about potential business partnerships or investments.
Download the full sample here.

INTRODUCTION

In MY CRIF Premium Report, we will explore the litigation and financial statements of a sample company. Litigations and financial performance are two important aspects of a company's operations that provide valuable insights into its performance and risk profile. Litigations involve legal proceedings that can have significant consequences for individuals and companies alike, while financial performance provides a snapshot of a company's financial health and statements over a specific period.

ABOUT COMPANY

The "ABOUT COMPANY" section provides some basic information about SAMPLE SDN. BHD., including:
  1. Company Name: This is the name of the company this profile is about.
  2. Registration Number: This is a unique number assigned to the company by Suruhanjaya Syarikat Malaysia (SSM) when it was registered.
  3. Legal Form: This tells us what type of business entity SAMPLE SDN. BHD. is.
  4. Incorporation Date: This is the date that SAMPLE SDN. BHD. was officially registered with SSM.
  5. Company Status: This section shows the company’s current standing or condition, as recognized by the relevant regulatory authorities.
  6. Registered Address: This is the official address of SAMPLE SDN. BHD., as registered with SSM.
  7. Source: This is the source of the document including the time and date it was extracted.
  8. Financial Highlights: This section provides some key financial information about SAMPLE SDN. BHD
  9. ADDRESS & CONTACTS: This is the official Business Address of the company.
  10. Line of Business: This tells us what industry SAMPLE SDN. BHD. operates in.

ACTIVITIES

The "ACTIVITIES" section provides information about the line of business that SAMPLE SDN. BHD. is engaged in.

CAPITAL AND EQUITIES

The "CAPITAL AND EQUITIES" section provides some information about SAMPLE SDN. BHD.'s capital structure and equity ownership. Here are the details:
  1. Capital: Capital refers to the total amount of money or assets that a company has available to invest in its business. In this case, the company’s Capital Typel is “Issued Capital”
  2. Equities: This refers to the different types of equity (i.e., ownership) that investors can hold in SAMPLE SDN. BHD. In this case, the only type of equity listed is "Ordinary Shares."

SHAREHOLDERS & MANAGEMENT

The "SHAREHOLDERS AND MANAGEMENT" section provides some information about SAMPLE SDN. BHD.'s shareholders and management. Here are the details:
  1. SHAREHOLDERS: This section lists some basic information about SAMPLE SDN. BHD.'s shareholders, including their names and identification numbers (IC/Passport/Reg No.), as well as how many shares they own and what percentage of total shares they represent.
  2. MANAGEMENT: This section lists some basic information about SAMPLE SDN. BHD.'s management team, including their names and identification numbers (IC/Passport/Reg No.). In general, a company's management team is responsible for overseeing its day-to-day operations and making strategic decisions to help it achieve its goals

FINANCIAL INFORMATION

The "FINANCIAL INFORMATION" section provides some basic information about SAMPLE SDN. BHD.'s financial performance and reporting. Here are the details:

  1. Summary of Financial Information

This section provides a brief overview of SAMPLE SDN. BHD.'s financial information related to exempt company status, financial year end, date of tabling, and auditors in charge.

  1. Balance Sheet

The "Balance Sheet" section provides some information about SAMPLE SDN. BHD.'s assets, liabilities, and equity as of a certain date. Here are the details:
Assets: This section lists SAMPLE SDN. BHD.'s total assets as of the balance sheet date. The amounts listed represent the total value of all assets owned by the company, including both current and non-current assets.
Liabilities: This section lists SAMPLE SDN. BHD.'s total liabilities as of the balance sheet date. Liabilities represent any debts or obligations that the company owes to others, including both current and non-current liabilities.
Liabilities and Equities: This section represents the sum of all debts, both short-term and long-term, that the company owes to its creditors, as well as the value of the investments made by shareholders. This value represents the company's financial obligations and its ownership structure at the end of the period.

  1. Profit and Loss

The "Profit and Loss" section provides some information about SAMPLE SDN. BHD.'s revenue, expenses, and profits for each of the past five years. Here are the details:
Income statement: This section lists SAMPLE SDN. BHD.'s revenue, expenses, and profits for each of the past five years. The income statement table provides a more detailed breakdown of SAMPLE SDN. BHD.'s revenues, expenses, and profits for each year.
Changes in Retained Earnings: This section provides some information about SAMPLE SDN. BHD.'s retained earnings and net dividends for each of the past five years.

  1. Financial Ratios

The "Financial Ratios" section provides some information about SAMPLE SDN. BHD.'s financial performance for each of the past five years. These are a set of calculations that provide insight into SAMPLE SDN. BHD.'s financial performance and health. The ratios are calculated using various financial data points, such as revenue, profit, assets, and equity.
Here are the details:
Profitability ratios: The ratios listed include return on assets (ROA), return on equity (ROE), return on sales (ROS), and return on capital employed (ROCE).
  • ROA measures how efficiently SAMPLE SDN. BHD. is using its assets to generate profits. It is calculated by dividing a company's net income by its total assets.
  • ROE measures how much profit the company is generating relative to its shareholders' equity. It is calculated by dividing a company's net income by its shareholder’s equity.
  • ROS measures the company's profitability relative to its revenue. These ratios can help investors and analysts evaluate SAMPLE SDN. BHD.'s financial performance and compare it to other companies in the same industry. It is calculated by dividing a company's operating profit by its revenue.
  • ROCE measures how much profit a company generates for every dollar of capital it employs (i.e., its total assets minus its current liabilities). ROCE is calculated by dividing a company's earnings before interest and taxes (EBIT) by its total capital employed.
Liquidity ratios: This section lists SAMPLE SDN. BHD.'s liquidity ratios for each of the past five years. Liquidity ratios measure a company's ability to meet its short-term obligations (i.e., those due within one year) using its current assets.
  • Current ratio: This ratio measures a company's ability to pay off its short-term liabilities using its current assets. A higher current ratio indicates that a company is more capable of meeting its short-term obligations. It is calculated by dividing a company's current assets by its current liabilities.
  • Current liabilities to equity ratio: This ratio measures the extent to which a company's short-term liabilities are covered by shareholder equity. The "Current liabilities to equity ratio" is calculated by dividing the company's total current liabilities by its shareholders' equity. This ratio measures the extent to which SAMPLE SDN. BHD.'s short-term obligations are covered by shareholder equity. A lower ratio is generally considered better, as it indicates that the company has a lower level of debt relative to equity.
Capital structure ratios: Capital structure ratios are a set of financial ratios that measure SAMPLE SDN. BHD.'s capital structure refers to the way the company finances its operations and growth. These ratios provide insight into the company's debt and equity levels, as well as its ability to meet its financial obligations.
  • Fixed assets to equity: This ratio is calculated by dividing the company's fixed assets by its shareholders' equity. This ratio measures how much SAMPLE SDN. BHD.'s assets are financed by equity versus fixed assets. A lower ratio indicates that the company has a lower level of fixed assets relative to equity.
  • Debt to assets ratio: This ratio is calculated by dividing the company's total debt by its shareholders' equity. It indicates how much of SAMPLE SDN. BHD.'s financing comes from debt versus equity. A higher ratio indicates that the company has a higher level of debt relative to equity.
  • Debt to equity ratio: This ratio is calculated by dividing the company's total debt by its shareholders' equity. This ratio measures the extent to which SAMPLE SDN. BHD.'s financing comes from debt versus equity. A higher ratio indicates that the company has a higher level of debt relative to equity.
Efficiency ratios: These ratios are a set of financial ratios that measure SAMPLE SDN. BHD.'s ability to use its assets and resources efficiently to generate revenue and profits. These ratios provide insight into the company's operational efficiency and effectiveness.
  • Asset turnover ratio: This ratio is calculated by dividing the company's total revenue by its total assets. This ratio measures how efficiently SAMPLE SDN. BHD. is using its assets to generate revenue. A higher ratio indicates that the company is generating more revenue per unit of assets, which suggests that it is using its assets more efficiently.

  1. Auditors

The "AUDITORS" section provides information about the auditors who have reviewed SAMPLE SDN. BHD.'s financial statements for each of the past five years. This information can be useful for investors who want to know more about who has reviewed SAMPLE SDN. BHD.'s financial statements and whether they are qualified to do so.

OTHER FINANCIAL INFORMATION

The “OTHER FINANCIAL INFORMATION” section provides information about charges made against SAMPLE SDN. BHD., which can be useful for evaluating its financial health and creditworthiness. The entries in the table include the total amount of each charge, the date it was made, and whether it has been fully satisfied or is still unsatisfied.

DOCUMENT LODGE

The "DOCUMENT LODGE" section refers to the process of submitting a document for registration or filing with a government agency or authority. It indicates the documents that have been lodged with Suruhanjaya Syarikat Malaysia (SSM), which is the Companies Commission of Malaysia. When a company lodges a document with SSM, it means that they have submitted the document for registration or filing in accordance with Malaysian laws and regulations. This could include documents such as annual returns, financial statements, and other filings required by SSM.

LITIGATIONS

The "LITIGATIONS" section provides information about the legal cases that the company has been involved in as either a plaintiff or defendant in the last two years. The table provides details about each case, including the case type, case number, parties involved (plaintiff and defendant), number of hearings, court house, jurisdiction/division, last hearing result, and note.
Three different case types were mentioned: Civil Interlocutory Appeal of Construction Case from Sessions Court, Writ of Summons (Trade), and Initiating Summons (Trade). Each case type represents a different type of legal dispute that the company was involved in.
There are also different case types mentioned such as Bankruptcy. The case type provides important information about the nature of the legal dispute and can be useful for anyone who wants to understand the legal history of the company and its involvement in any ongoing legal disputes.

APPENDIX

The “APPENDIX” section provides additional information about CRIF, as follows:
Customer Service: This section provides information about how to contact CRIF OMESTI SDN BHD's customer service team. Here are some details about this subsection:
  • Contact information: The subsection provides contact information for CRIF OMESTI SDN BHD's customer service team, including the company's address, email address, and phone number.
  • Minimum details required for inquiries: The subsection also specifies that any inquiries should contain the following minimum details: Full Company Name, Telephone Number, Business Identification Number, Contact Name, Reference, and Order Date. This is likely to ensure that the customer service team can quickly and accurately respond to inquiries.

CONCLUSION

Litigations and financial statements are critical components of a company's operations that must be managed effectively to ensure long-term success and sustainability. Litigations can have significant consequences, making it important to manage risks effectively and comply with relevant laws and regulations. Meanwhile, the financial statement provides valuable information about the company's financial health and performance over the past year, which can be used by investors and other stakeholders to make informed decisions about investing or lending money. Companies must manage both effectively to ensure they remain competitive in today's business environment.