MIRA
INFORM REPORT
|
Report Date : |
24.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
N.T. HUAT KEE FISHERIES SDN BHD |
|
|
|
|
Registered Office : |
57-2, Persiaran
Bayan Indah, Bayan Bay, Sungai Nibong, 11900 Bayan Lepas, Pulau Pinang |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
30.09.2005 |
|
|
|
|
Date of Incorporation : |
17/10/1987 |
|
|
|
|
Legal Form : |
Private Limited
Company |
|
|
|
|
Line of Business : |
Processing, Exporting,
Wholesaling in Fresh, Frozen Prawn, Fish and Other Marine Product |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
* Adopted abbreviations : SC - Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 165391-W
COMPANY NAME : N.T. HUAT KEE FISHERIES SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 17/10/1987
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : 57-2, PERSIARAN BAYAN INDAH,
NIBONG,
11900 BAYAN LEPAS, PULAU
BUSINESS ADDRESS : 2235 JALAN DATO KERAMAT, 14300 NIBONG
TEBAL, PULAU
TEL NO : 04 - 5935868
FAX NO : 04 - 5933352
CONTACT PERSON : KHOR KIAT WAH (MARKETING DIRECTOR)
INDUSTRY CODE : 15120
51222
PRINCIPAL ACTIVITY : PROCESSING, EXPORTING, WHOLESALING IN
FRESH,
FROZEN
PRAWN, FISH AND OTHER MARINE PRODUCT
AUTHORISED CAPITAL : MYR5,000,000.00
DIVIDED INTO ORDINARY SHARE
5,000,000
OF MYR1.00 EACH.
ISSUED AND PAID UP
CAPITAL : MYR3,000,000.00 DIVIDED INTO ORDINARY
SHARE 600,000
CASH AND 2,400,000
OTHERWISE OF MYR1.00 EACH.
SALES : MYR61,324,333 [2005]
NET WORTH : MYR9,141,521 [2005]
STAFF STRENGTH : 100
[2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : POOR
PAYMENT : AVERAGE
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : HIGH
GENERAL REPUTATION : SATISFACTORY
INDUSTRY OUTLOOK : AVERAGE GROWTH
HISTORY / BACKGROUND
The SC 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 SC must have at least two directors. A private limited
company is a separate legal entity from its shareholders. As a separate legal
entity, the SC 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 SC is insolvent. The SC 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 SC is
principally engaged in the (as a / as an) processing, exporting, wholesaling in
fresh, frozen prawn, fish and other marine product.
The SC is not listed
on
The SC is not
qualified to be one of the Top Corporate Performers in the
The immediate and
ultimate holding company of the SC is CAB CAKARAN CORPORATION BERHAD, a company
in incorporated in
The major
shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
CAB CAKARAN CORPORATION57-2, PERSIARAN BAYAN INDAH,
BHD SUNGAI
NIBONG, 11900 BAYAN LEPAS, PULAU
MR. KHOR BOON THENG + 590, SUNGAI UDANG, 14310 NIBONG TEBAL, 0980270 150,000
PULAU
MR. KHOR BOON CHYE @ 2056 SUNGAI NIBONG, 14310 NIBONG TEBAL, 0312229 150,000
KOOH BOON CHAI PULAU
MR. KHOR SOOI LEH @ KHOR 20
BOON HUN NIBONG
TEBAL, PULAU
MR. KHOR AH BAH 590,
SUNGAI UDANG, 14310 NIBONG TEBAL, 1560833 150,000
PULAU
KBH CORPORATION SDN BHD 2235, JALAN DATO'' KRAMAT, 14300 NIBONG 452580 150,000
TEBAL,
PULAU
--------------------
3,000,000
===========
+
Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR.
KHOR BOON THENG
Address : 590, SUNGAI UDANG, 14310 NIBONG TEBAL, PULAU
IC / PP No. : 0980270
New IC No : 451011-07-5095
Date of Birth : 11/10/1945
Nationality : MALAYSIAN CHINESE
DIRECTOR 2
Name of Subject : MR.
KHOR KIAT WAH
Address : 359 SUNGAI UDANG, 14310 NIBONG TEBAL, PULAU
IC / PP No. : 6879247
New IC No : 620524-07-5749
Date of Birth : 24/05/1962
Nationality : MALAYSIAN CHINESE
DIRECTOR 3
Name of Subject : MR.
CHUAH AH BEE
Address : 1663 BUKIT KECHIL, 14000 BUKIT MERTAJAM, PULAU
IC / PP No. : 3878958
New IC No : 510815-07-5207
Date of Birth : 15/08/1951
Nationality : MALAYSIAN CHINESE
DIRECTOR 4
Name of Subject : MR.
TAN SWEE SEONG
Address : NO 156 TAMAN JAYA, 14000 BUKIT MERTAJAM, PULAU
IC / PP No. : 5431991
New IC No : 580821-08-5595
Date of Birth : 21/08/1958
Nationality : MALAYSIAN CHINESE
DIRECTOR 5
Name of Subject : MR.
LEOW CHAN KHIANG
Address : 84 JALAN BAGAN 19,
PULAU
IC / PP No. : A0561210
New IC No : 661029-07-5291
Date of Birth : 29/10/1966
Nationality : MALAYSIAN CHINESE
DIRECTOR 6
Name of Subject : MR.
CHUAH HOON PHONG
Address : 1663 BUKIT KECHIL, 14000 BUKIT MERTAJAM, PULAU
IC / PP No. : N/A
New IC No : 791020-07-5135
Date of Birth : 20/10/1979
Nationality : MALAYSIAN CHINESE
DIRECTOR 7
Name of Subject : MR.
KHOR HONG HANG
Address : 10, LORONG PANCHOR INDAH 6,
14300
NIBONG TEBAL, PULAU
IC / PP No. : 7261936
New IC No : 640306-07-5423
Date of Birth : 06/03/1964
Nationality : MALAYSIAN CHINESE
MANAGEMENT
1) Name of Subject : KHOR
KIAT WAH
Position : MARKETING
DIRECTOR
2) Name of Subject : CELINE
LOH
Position : ACCOUNTANT
AUDITOR
Auditor : DELOITTE KASSIMCHAN
Auditors' Address : WISMA
WANG, 251-A, JALAN
PINANG,
PULAU
COMPANY SECRETARY
1) Company Secretary : MR.
KHOO LAY TATT
IC / PP No. : A2549906
New IC No. : 730702-07-5141
Address : 107-17-3,
11700
GELUGOR, PULAU
BANKING
Banking relations
are maintained principally with :
1) Banker Name : MALAYAN BANKING
BHD
The SC enjoys normal
banking routine with above mentioned banker(s).
No adverse record
was found during our investigation.
ENCUMBRANCE (S)
No encumbrance was
found in our databank at the time of investigation.
LEGAL CHECK AGAINST THE SC
* A check has been conducted in our
databank against the SC whether the subject has been
involved in any litigation. Our
databank consists of 99% of the wound up companies in
back dated since 1900.
No legal action was
found in our databank.
No winding up
petition was found in our data bank
PAYMENT RECORD
SOURCES OF RAW
MATERIALS :
Local : YES
Overseas : YES
Import Countries :
The SC 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 [ ] Good [ ] Average [ X ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES Percentage : 10%
Domestic Markets :
Overseas : YES Percentage : 90%
Export Market :
Credit Term : 30 - 60 DAYS.
Payment Mode : CHEQUES,
TELEGRAPHIC TRANSFER (TT), LETTER OF CREDIT (LC).
Type of Customer : DEALERS,
DISTRIBUTORS, HOTELS, RESTAURANTS.
OPERATIONS
Products
Manufactured : PROCESSING OF FROZEN & FRESH SEAFOOD
Competitor(s) : GP OCEAN FOOD SDN BHD
HOOM
XIANG INDUSTRIES SDN BHD
PERIKANAN
LKPP FORT SDN BHD
BUTTERWORTH
ICEWORKS SDN BHD
MAJUIKAN
SDN BHD
Ownership of
premises : OWNED
Total Number of
Employees :
YEAR 2007 2006 2005 2004
GROUP N/A N/A N/A N/A
COMPANY 100 110 118 97
Branch : NO
RECENT DEVELOPMENT
We have checked with
the Malaysian National News Agency's
(BERNAMA) database, but no latest development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
Telephone Number
Provided By Client : N/A
Current Telephone
Number : 04-5935868
Match : N/A
Address Provided By
Client : 2235 JLN DATO KERAMAT, 14300 NIBONG
TEBAL,
Current Address : 2235 JALAN DATO KERAMAT, 14300 NIBONG
TEBAL,
PULAU
Match : YES
Latest Financial
Accounts : YES
Other
Investigations
We contacted Ms
Celine Loh, the SC's Accountant. She provided some information on the SC. Later
we contacted one of the Senior staff from the Sales Department for more
information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 2003-2005 ]
Profit / ( Loss )
before tax : Decreased [ 2003-2005 ]
Return on
Shareholder Funds : Acceptable [ 11.89% ]
Return on Net Assets : Unfavourable [ 7.80% ]
The SC's turnover
increased steadily as the demand for its products / services increased due to
the goodwill built up over the years. The SC's profit fell sharply because of
the high operating costs incurred. The SC's management had generated acceptable
return for its shareholders using its assets.
Working Capital
Control :
Stocks Ratio : Acceptable [ 63
Days ]
Debtors Ratio : Unfavourable [ 125
Days ]
Creditors Ratio : Favourable [ 25
Days ]
The SC kept adequate
stocks to meet its normal business transactions without incurring excessive
storage costs. The SC's debtors ratio was high. The SC should tighten its
credit control and improve its collection period. The SC had a favourable
creditors' ratio as evidenced by its favourable collection days. The SC could
be taking advantage of the cash discounts and also wanting to maintain goodwill
with its creditors.
Liquidity :
Liquid Ratio : Unfavourable [ 0.71
Times ]
Current Ratio : Unfavourable [ 1.04
Times ]
A low liquid ratio means
that the SC may be facing working capital deficiency. If the SC cannot obtain
additional financing or injection of fresh capital, it may face difficulties in
meeting its short term obligations.
Solvency :
Interest Cover : Unfavourable [ 2.12
Times ]
Gearing Ratio : Favourable [ 0.56
Times ]
The SC's interest
cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest
payment. The SC was lowly geared thus it had a low financial risk. The SC was
mainly financed by its shareholders' funds and internally generated funds. In
times of economic slowdown / downturn, the SC being a lowly geared company,
will be able to compete better than those companies which are highly geared in
the same industry.
Overall Assessment
:
Although the SC's
turnover had increased, its profits had declined over the same corresponding
period. This could be due to the stiffer
market competition and / or higher operating costs which lowered the SC's profit
margin.Due to its weak liquidity position, the SC will be faced with problems
in meeting all its short term obligations if no short term loan is obtained or
additional capital injected into the SC.If there is a fall in the SC's profit
or any increase in interest rate, the SC may not be able to generate sufficient
cash-flow to service its interest.The SC as a lowly geared company, will be
more secured compared to those highly geared companies. It has the ability to
meet all its long term obligations.
Overall financial
condition of the SC: POOR
COMMENTS
Incorporated in
1987, the SC is principally engaged in the processing, exporting, wholesaling
of fresh and frozen seafood. The SC's products are of high quality and this is
well supported by the SC's team of laboratorists and microbiologists to conduct
testing on all its products. With a history coming to 20 years, the SC has
built up its reputation and image in the market. In addition, we believe that
the SC will be able to enjoy timely financial assistance from its holding
company, CAB CAKARAN CORPORATION BHD, should the needs arise.
Our investigation
revealed that the SC exports most of its products to overseas, indicating that
the SC is an export-oriented company, besides catering to the local market.
Being an export-oriented company, the SC will be able to diversified its
business risk. On the other hand, the SC will be faced with currency
fluctuation risk as well as stiff competitions from the international market.
The management of the SC is assisted by 100 employees in the operations.
Overall, its management capability is average.
With reference to
the SC's financial accounts as at 30th September 2005, the SC's turnover had
increased to RM61.32 million whilst its pre-tax profit had dropped to
RM444,641. The SC has generated an acceptable amount of profit based on its
shareholders' funds. However, it has a weak liquid ratio of 0.56 times and it
indicate that the SC may face working capital deficiency. A low gearing ratio
has placed the SC at low financial risk. Overall financial condition of the SC
is poor.
We noted that the
SC's supplies are from both local and overseas market. As it is involved in
import and export activities, the SC is subjected to foreign exchange risk.
Based on its financial
historical data, the SC's payment habit pattern is average and it is clear of
any litigation.
The food industry
has continued to show positive signs. This is reasonable as food is necessity
to every human being. However, the SC faces stiff competition from other well
established players in the same field.
In view of the
above, we recommend that credit be granted to the SC with close monitoring.
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 30-September-2005
13
month
2005 2004 2003
MYR MYR MYR
TURNOVER 61,324,333 42,265,071 27,577,338
=========== =========== ===========
PROFIT/(LOSS) FROM OPERATIONS 444,641 2,224,396 317,345
SHARE OF PROFITS/(LOSSES)
OF ASSOCIATED
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 444,641 2,224,396 317,345
Taxation 642,320 <225,794> <72,305>
------------------- ------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 1,086,961 1,998,602 245,040
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 1,086,961 1,998,602 245,040
------------------- ------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 1,086,961 1,998,602 245,040
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported 3,434,571 1,435,969 1,288,613
------------------- ------------------- -------------------
As restated 3,434,571 1,435,969 1,288,613
------------------- ------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 4,521,532 3,434,571 1,533,653
TRANSFER TO
RESERVES - Statutory 348,624 - -
------------------- ------------------- -------------------
RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 4,870,156 3,434,571 1,533,653
=========== =========== ===========
RETAINED BY:
The Company 4,870,156 3,434,571 1,533,653
------------------- ------------------- -------------------
4,870,156 3,434,571 1,533,653
=========== =========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Term loan 43,671 158,117 151,726
Bank
overdraft 35,657 51,513 57,671
Revolving
loans 136,738 - -
Hire purchase 6,956 15,828 9,584
Bankers'
acceptance 172,570 134,072 82,669
------------------- ------------------- -------------------
395,592 359,530 301,650
=========== =========== ===========
BALANCE SHEET
As At
30-September-2005
N.T.
HUAT KEE FISHERIES SDN BHD
13
month
2005 2004 2003
MYR MYR MYR
ASSETS
EMPLOYED:
FIXED ASSETS 9,384,174 5,300,331 5,031,478
LONG
TERM INVESTMENTS/OTHER ASSETS
------------------- ------------------- -------------------
INTANGIBLE
ASSETS
------------------- ------------------- -------------------
------------------- ------------------- -------------------
TOTAL LONG
TERM ASSETS 9,384,174 5,300,331 5,031,478
CURRENT
ASSETS
Stocks 10,564,246 8,322,327 7,824,126
Trade debtors 20,949,801 15,389,765 4,897,358
Other
debtors, deposits & prepayments 159,165 140,115 121,365
Short term
deposits - 3,000 3,000
Items in
transit between head office & branches
Amount due
from holding company - - 71,561
Amount due
from related companies 410,406 432,878 1,470,286
Cash &
bank balances 547,767 255,733 88,840
------------------- ------------------- -------------------
TOTAL CURRENT
ASSETS 32,631,385 24,543,818 14,476,536
CURRENT
LIABILITIES
Trade
creditors 4,128,900 2,964,150 2,784,167
Other
creditors & accruals 1,050,905 1,052,397 1,251,110
Hire purchase
& lease creditors 44,188 78,126 267,283
Bank
overdraft 483,558 985,993 780,185
Short term
borrowings/Term loans 3,528,214 3,837,933 4,327,051
Bill &
acceptances payable 6,303,000 4,498,000 3,760,000
Amounts owing
to holding company 65,000 5,000 5,000
Amounts owing
to related companies 15,593,571 9,111,375 1,196,054
Amounts owing
to director 16,687 - -
Provision for
taxation 23,405 416,787 160,905
------------------- ------------------- -------------------
TOTAL CURRENT
LIABILITIES 31,237,428 22,949,761 14,531,755
------------------- ------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) 1,393,957 1,594,057 <55,219>
------------------- ------------------- -------------------
TOTAL NET
ASSETS 10,778,131 6,894,388 4,976,259
=========== =========== ===========
FINANCED
BY:
SHARE CAPITAL
Ordinary
share capital 3,000,000 3,000,000 3,000,000
------------------- ------------------- -------------------
TOTAL SHARE
CAPITAL 3,000,000 3,000,000 3,000,000
RESERVES
Capital
reserve - - 10,311
Revaluation
reserve 1,271,365 - -
Retained profit/(Accumulated loss)
carried
forward 4,870,156 3,434,571 1,533,653
------------------- ------------------- -------------------
TOTAL
RESERVES 6,141,521 3,434,571 1,543,964
------------------- ------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 9,141,521 6,434,571 4,543,964
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Long term
loans 1,024,855 - -
Hire purchase
creditors 39,683 15,312 65,697
Deferred
taxation 572,072 444,505 366,598
------------------- ------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 1,636,610 459,817 432,295
------------------- ------------------- -------------------
10,778,131 6,894,388 4,976,259
=========== =========== ===========
FINANCIAL RATIOS
As At
30-September-2005
N.T.
HUAT KEE FISHERIES SDN BHD
13
month
2005 2004 2003
MYR MYR MYR
TYPES OF
FUNDS
Cash 547,767 258,733 91,840
Net Liquid
Funds <3,464,005> <4,565,193> <5,015,396>
Net Liquid
Assets <9,170,289> <6,728,270> <7,879,345>
Net Current
Assets/(Liabilities) 1,393,957 1,594,057 <55,219>
Net Tangible
Assets 10,778,131 6,894,388 4,976,259
Net Monetary
Assets <10,806,899> <7,188,087> <8,311,640>
BALANCE
SHEET ITEMS
Total
Borrowings 5,120,498 4,917,364 5,440,216
Total
Liabilities 32,874,038 23,409,578 14,964,050
Total Assets 42,015,559 29,844,149 19,508,014
Net Assets 10,778,131 6,894,388 4,976,259
Net Assets
Backing 9,141,521 6,434,571 4,543,964
Shareholders''
Funds 9,141,521 6,434,571 4,543,964
Total Share
Capital 3,000,000 3,000,000 3,000,000
Total
Reserves 6,141,521 3,434,571 1,543,964
LIQUIDITY
(Times)
Cash Ratio 0.02 0.01 0.01
Liquid Ratio 0.71 0.71 0.46
Current Ratio 1.04 1.07 1.00
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 63 72 104
Debtors Ratio 125 133 65
Creditors
Ratio 25 26 37
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.56 0.76 1.20
Liabilities
Ratio 3.60 3.64 3.29
Times
Interest Earned Ratio 2.12 7.19 2.05
PERFORMANCE
RATIO (%)
Operating
Profit Margin 0.73 5.26 1.15
Net Profit
Margin 1.77 4.73 0.89
Return On Net
Assets 7.80 37.48 12.44
Return On
Capital Employed 5.66 21.90 5.98
Return On
Shareholders'' Funds/Equity 11.89 31.06 5.39
Dividend Pay
Out Ratio (Times) 0 0 0
NOTES
TO ACCOUNTS
Contingent
Liabilities 0 0 0
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)