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MIRA
INFORM REPORT
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Report Date : |
13.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
H H WONG (M) SDN BHD |
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Registered Office : |
Unit B3-10, Block B, Plaza Dwitasik, 21 Jalan 5/106, Bandar Sri Permaisuri,
56000 Kuala Lumpur, Wilayah Persekutuan |
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Country : |
Malaysia |
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Financials (as on) : |
30.09.2006 |
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Date of Incorporation : |
16.04.2002 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Wholesalers of Footwear |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
EXECUTIVE SUMMARY
LOCAL NO : 577333-D
COMPANY NAME : H H WONG (M) SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 16/04/2002
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : UNIT B3-10, BLOCK B, PLAZA DWITASIK, 21 JALAN 5/106,
BANDAR
SRI PERMAISURI, 56000 KUALA LUMPUR, WILAYAH
PERSEKUTUAN,
MALAYSIA.
BUSINESS ADDRESS : 51-1 & 2, JALAN SP2 / 2, TMN SERDANG
PERDANA, 43300 SERI
KEMBANGAN,
SELANGOR, MALAYSIA.
TEL NO : 03 - 89437773
FAX NO : 03 - 89410600
CONTACT PERSON : HON HUEI WONG (MANAGING DIRECTOR)
INDUSTRY CODE : 51312
PRINCIPAL ACTIVITY : WHOLESALE OF FOOTWEAR
AUTHORISED CAPITAL : MYR500, 000.00 DIVIDED INTO
ORDINARY
SHARE 500,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR250, 000.00 DIVIDED INTO
ORDINARY
SHARE 250,000 CASH OF MYR1.00 EACH.
SALES : MYR5, 253,486 [2006]
NET WORTH : MYR484, 275 [2006]
STAFF STRENGTH : 6
[2007]
BANKER (S) : CIMB BANK BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : STRONG
PAYMENT : GOOD
MANAGEMENT CAPABILITY : GOOD
COMMERCIAL RISK : LOW
CURRENCY EXPOSURE : MODERATE
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) wholesale of footwear. The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange). The SC is not qualified to be one of the Top Corporate Performers in the Malaysia 1000 (M1000) publication, a directory jointly published by Companies Commission of Malaysia (The Registrar Office), Minister of Domestic Trade and Consumer Affairs and our publication arm, BASIS Publications House Sdn Bhd.
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc No: Shareholding
MR. WONG HON HUEI + 51-1
& 2, JALAN SP 2/2, TAMAN SERDANG 7 40312-14-5393 200,000
PERDANA,
SECTION 2, SERI KEMBANGAN,
43300
SERI KEMBANGAN, SELANGOR,
MALAYSIA.
MS. LIEW CHIT MOY + C11-19,
SOUTH CITY CONDO, TAMAN A1676207 50,000
SERDANG
PERDANA, 43300 SERI 701128-10-5920
KEMBANGAN,
SELANGOR, MALAYSIA.
--------------------
250,000
===========
+ Also Director
DIRECTORS
DIRECTOR
1
Name of Subject : MR. WONG HON HUEI
Address : 51-1 & 2, JALAN SP 2/2, TAMAN SERDANG
PERDANA, SECTION 2,
SERI
KEMBANGAN, 43300 SERI KEMBANGAN, SELANGOR,MALAYSIA.
IC / PP No. : N/A
New IC No : 740312-14-5393
Date of Birth : 12/03/1974
Nationality : MALAYSIAN CHINESE
DIRECTOR 2
Name of Subject : MS. LIEW CHIT MOY
Address : C11-19, SOUTH CITY CONDO, TAMAN SERDANG
PERDANA,
43300
SERI KEMBANGAN, SELANGOR, MALAYSIA.
IC / PP No. : A1676207
New IC No : 701128-10-5920
Date of Birth : 28/11/1970
Nationality : MALAYSIAN CHINESE
MANAGEMENT
1) Name of Subject : HON HUEI WONG
Position : MANAGING DIRECTOR
AUDITOR
Auditor : SI CHAY BENG & CO
Auditors' Address : 3A11 BLOCK A, DAMANSARA INTAN, 1 JALAN SS 20/27, 3ATH FLOOR, 47400 PETALING JAYA, SELANGOR, MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MS. LEONG POOI WAH
IC / PP No. : A0796859
New IC No. : 670917-10-6118
Address : UNIT B3-10, BLOK B, PLAZA DWISTATIK, 21 JALAN 5/106,
BANDAR SRI PERMAISURI, 56000 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
BANKING
Banking relations are maintained principally with :
1) Banker Name : CIMB BANK BHD
The SC enjoys normal banking routine with above mentioned banker(s).
The SC has bank charges with above mentioned banker(s).
ENCUMBRANCE (S)
ENCUMBRANCE 1
Date of Creation : 03 May 2006
Description of Charge : FACILITY AGREEMENT, MEMO OF DEPOSIT & LETTER OF
AUTHORIZATION
Amount Secured : RM 870,000.00
Description of Property Affected : PLACEMENT OF FIXED DEPOSIT RECEIPT OF RM 452,000.00
Name & Address of Chargee : CIMB BANK BHD
1485, JALAN BESAR, 43300 SERI KEMBANGAN, SELANGOR, MALAYSIA.
Form 40 Dated 22 May 2006
Registered and Numbered 1 In The Register of Charges
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 Malaysia 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
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 [ X ] Average [ ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES
Domestic Markets : MALAYSIA.
Overseas : YES
Export Market : SOUTHEAST ASIA, EUROPE, AFRICA, MIDDLE EAST, ASIA, NORTH AMERICA.
Credit Term : AS AGREED.
Payment Mode : CHEQUES, CASH.
Type of Customer : SHOPPING MALL, HYPERMARKETS, RETAIL.
The SC concentrates on both local and overseas markets.
OPERATIONS
Products Manufactured :
Goods Traded : LADIES AND MEN SHOES, LADIES SANDALS AND ETC
Competitor(s) : BANDAR AKADEMIA SDN BHD
NGIU KEE (MIRI) SDN BHD
M-POL PRECISION PRODUCTS SDN BHD
KRIS SAFETY FOOTWEAR SDN BHD
FILA SPORT (MALAYSIA) SDN BHD
Ownership of premises : LEASED/RENTED
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 6 7 7
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 : 03-89437773
Match : N/A
Address Provided By Client : UNIT NO B3-10 BLOCK B PLAZA DWITASIK NO 21
JALAN 5/106 BANDER SRI PERMAISURI KUALA LIMPUR 56000 MALAYSIA
Current Address : 51-1 & 2, JALAN SP2 / 2, TMN SERDANG PERDANA,
43300 SERI KEMBANGAN, SELANGOR, MALAYSIA.
Match : NO
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with one of the SC's Sales staff. He revealed some relevant information on the SC.
We have verified and confirmed that the address provided is the SC's registered office address as stated in your enquiry.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 126.92% ]
Profit / ( Loss ) before tax : Increased [ 50.45% ]
Return on Shareholder Funds : Favourable [ 46.05% ]
Return on Net Assets : Favourable [ 34.88% ]
The increase in turnover could be due to the SC adopting an aggressive marketing strategy. The higher profit could be attributed to the increase in turnover. Generally the SC was profitable. The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.
Working Capital Control :
Stocks Ratio : Favourable [ 23 Days ]
Debtors Ratio : Favourable [ 38 Days ]
Creditors Ratio : Favourable [ 3 Days ]
The SC'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 SC. 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 : Favourable [ 1.41 Times ]
Current Ratio : Unfavourable [ 1.74 Times ]
A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.
Solvency :
Interest Cover : Favourable [ 29.18 Times ]
Gearing Ratio : Favourable [ 0.63 Times ]
The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. 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 :
Generally, the SC's performance has improved with higher turnover and profit.The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations.With the favourable interest cover, the
SC could be able to service all the accrued interest without facing any difficulties.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: STRONG
COMMENTS
Incorporated in 2002, the SC is a private limited company with core business in the wholesale of footwear. Throughout its years of establishment, the SC has slowly been building up contacts with its clients and competing in the industry. Presently, the SC's issued and paid up capital stands at RM250,000.
Apart from local market, the SC also has business operations in other countries such as Europe, Africa, Asia and etc. The wider range of its market segments has benefited the SC in terms of higher earnings and minimized its business risk. The SC's business operations is overseen by its managing director,
Hon Huei Wong and assisted by 6 employees in the operations. Overall, its management capability is good.
As at 30 September 2006, its turnover continued on an upward momentum, reaching RM5.25 million.
Correspondingly, its pre-tax profit rose by 50.45% from RM182,801 in year 2005 to RM275,025. Return on shareholders' funds of the SC was high indicating that the SC was efficient in utilising its shareholders' funds to generate favourable returns. The SC was in good liquidity position with its current liabilities well covered by its current assets. With its net current assets, the SC should be able to repay its short term obligations. A low gearing ratio has minimised the SC's financial risk. The SC should be able to maintain its business in the near term, given a positive net worth standing at RM484,275.
Investigation revealed that the SC's raw materials are sourced from both local and overseas suppliers.
Hence, the SC is subjected to currency fluctuation risk and high operating costs.
Based on our financial historical data, we concluded that the SC overall payment habit is good and it is clear from any litigation.
The industry remains robust with continuing strong global demand for its products. The steady growth in the country's economy will further enhance the industries activities and we believe the will be more business opportunities available for SC.
In view of above and based on our assessment, we recommend credit be granted to the SC promptly.
THE FINANCIAL STATEMENTS
WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 30-September-2006
H
H WONG (M) SDN BHD
2006 2005
MYR MYR
TURNOVER 5,253,486 2,315,101
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PROFIT/(LOSS) FROM OPERATIONS 275,025 182,801
SHARE
OF PROFITS/(LOSSES) OF ASSOCIATED
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PROFIT/(LOSS)
BEFORE TAXATION 275,025 182,801
Taxation <52,012> <36,774>
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PROFIT/(LOSS)
AFTER TAXATION 223,013 146,027
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 223,013 146,027
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PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 223,013 146,027
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As
previously reported 161,262 15,235
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As
restated 161,262 15,235
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PROFIT
AVAILABLE FOR APPROPRIATIONS 384,275 161,262
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RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 384,275 161,262
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RETAINED BY:
The Company 384,275 161,262
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384,275 161,262
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INTEREST
EXPENSE (as per notes to P&L)
Bank
overdraft 5,632 -
Hire
purchase 4,128 -
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9,760 -
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BALANCE SHEET
As At 30-September-2006
H H WONG (M) SDN BHD
2006 2005
MYR MYR
ASSETS
EMPLOYED:
FIXED
ASSETS 77,652 94,616
LONG
TERM INVESTMENTS/OTHER ASSETS
Deferred
assets 560 702
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TOTAL
LONG TERM INVESTMENTS/OTHER ASSETS 560 702
INTANGIBLE
ASSETS
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TOTAL
LONG TERM ASSETS 78,212 95,318
CURRENT
ASSETS
Stocks 332,430 46,350
Trade
debtors 544,021 468,032
Other
debtors, deposits & prepayments 69,826 10,000
Short
term deposits 604,496 -
Items
in transit between head office & branches
Cash
& bank balances 185,066 195,610
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TOTAL
CURRENT ASSETS 1,735,839 719,992
CURRENT
LIABILITIES
Trade
creditors 50,341 340,212
Other
creditors & accruals 20,403 27,661
Hire
purchase & lease creditors 17,045 16,377
Bank
overdraft 246,671 -
Provision
for taxation 64,405 44,714
trust
receipts 598,750 -
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TOTAL
CURRENT LIABILITIES 997,615 428,964
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NET
CURRENT ASSETS/(LIABILITIES) 738,224 291,028
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TOTAL
NET ASSETS 816,436 386,346
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FINANCED
BY:
SHARE
CAPITAL
Ordinary
share capital 100,000 100,000
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TOTAL
SHARE CAPITAL 100,000 100,000
RESERVES
Retained
profit/(Accumulated loss) carried
forward 384,275 161,262
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TOTAL
RESERVES 384,275 161,262
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SHAREHOLDERS'
FUNDS/EQUITY 484,275 261,262
LONG
TERM & DEFERRED LIABILITIES & PROVISIONS
Hire
purchase creditors 39,099 55,814
amount
due to director 293,062 69,270
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TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 332,161 125,084
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816,436 386,346
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FINANCIAL RATIOS
As At 30-September-2006
H H WONG (M) SDN BHD
2006 2005
MYR MYR
TYPES
OF FUNDS
Cash 789,562 195,610
Net
Liquid Funds 542,891 195,610
Net
Liquid Assets 405,794 244,678
Net Current
Assets/(Liabilities) 738,224 291,028
Net
Tangible Assets 816,436 386,346
Net
Monetary Assets 73,633 119,594
BALANCE
SHEET ITEMS
Total
Borrowings 302,815 72,191
Total
Liabilities 1,329,776 554,048
Total
Assets 1,814,051 815,310
Net
Assets 816,436 386,346
Net
Assets Backing 484,275 261,262
Shareholders''
Funds 484,275 261,262
Total
Share Capital 100,000 100,000
Total
Reserves 384,275 161,262
LIQUIDITY
(Times)
Cash
Ratio 0.79 0.46
Liquid
Ratio 1.41 1.57
Current
Ratio 1.74 1.68
WORKING
CAPITAL CONTROL (Days)
Stock
Ratio 23 7
Debtors
Ratio 38 74
Creditors
Ratio 3 54
SOLVENCY
RATIOS (Times)
Gearing
Ratio 0.63 0.28
Liabilities
Ratio 2.75 2.12
Times
Interest Earned Ratio 29.18 0
PERFORMANCE
RATIO (%)
Operating
Profit Margin 5.24 7.90
Net
Profit Margin 4.25 6.31
Return
On Net Assets 34.88 47.32
Return
On Capital Employed 26.37 45.39
Return
On Shareholders'' Funds/Equity 46.05 55.89
Dividend
Pay Out Ratio (Times) 0 0
NOTES
TO ACCOUNTS
Contingent
Liabilities 0 0
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)