MIRA
INFORM REPORT
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Report Date : |
04.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
TOYOTA TSUSHO (MALAYSIA) SDN BHD |
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Formerly Known As : |
TOYODA (MALAYSIA) SDN BHD |
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Registered Office : |
Room 1404, Wisma Lim Foo Yong, 86 Jalan Raja Chulan, 50200 Kuala Lumpur, Wilayah Persekutuan |
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Country : |
Malaysia |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06/07/1970 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trading in Automotive Parts, Plastic, Metal, Electrical and Others |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
* Adopted abbreviations : SC - Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 9710-W
COMPANY NAME : TOYOTA TSUSHO (MALAYSIA) SDN BHD
FORMER NAME : TOYODA (MALAYSIA) SDN BHD (25-08-1987)
INCORPORATION DATE : 06/07/1970
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : ROOM 1404, WISMA LIM FOO YONG, 86 JALAN RAJA
CHULAN, 50200 KUALA LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
BUSINESS ADDRESS : WISMA LIM FOO YONG, 14TH FLOOR, ROOM 1404, 86
JALAN RAJA CHULAN, 50200 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
TEL NO : 03 - 21423366
FAX NO : 03 - 21425809
CONTACT PERSON : ATSUSHI OTSUKA (MANAGING DIRECTOR)
INDUSTRY CODE : 50302 51420 51499
PRINCIPAL ACTIVITY : TRADING IN AUTOMOTIVE PARTS, PLASTIC, METAL,
ELECTRICAL AND OTHERS
AUTHORISED CAPITAL : MYR1,500,000.00 DIVIDED INTO ORDINARY SHARE
1,500,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR1,428,572.00 DIVIDED INTO ORDINARY SHARE
1,428,572 CASH OF MYR1.00 EACH.
SALES : MYR590,614,436 [2006]
NET WORTH : MYR33,544,266 [2006]
M1000 OVERALL RANKING : 619 [2005]
M1000 INDUSTRY RANKING : 13 [2005]
STAFF STRENGTH : 100 [2007]
BANKER (S) : BANK OF TOKYO-MITSUBISHI (MALAYSIA) BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : LIMITED
PAYMENT : AVERAGE
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : GOOD
INDUSTRY OUTLOOK : DECLINING
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) trading in automotive parts, plastic, metal, electrical and others.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is 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.
According to the Malaysia 1000 publication, the SC's ranking are as follows :
YEAR 2005 2004
OVERALL RANKING 619 954
INDUSTRY RANKING 13 19
The immediate holding company of the SC is TOYOTA TSUSHO CORPORATION, a company incorporated in JAPAN.
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
TOYOTA TSUSHO 7-23,
MEIEKI 4 CHOME, NAKAMURA KU, 728,572
CORPORATION NAGOYA
450, JAPAN.
SYARIKAT SRI TIMANG SDN UNIT 50-6-1, WISMA UOA DAMANSARA, 50 29201 499,500
BHD JALAN
DUNGUN, DAMANSARA HEIGHTS, 6TH
FLOOR,
50490 KUALA LUMPUR, WILAYAH
PERSEKUTUAN,
MALAYSIA.
PUAN SRI TUNKU AZIZAH BTE 5 JALAN GEMILANG, TAMAN DUTA, 50480 0616166 200,000
TUNKU PETRA + KUALA
LUMPUR, WILAYAH PERSEKUTUAN, 161113-05-5014
MALAYSIA.
TUNKU MOHAMED BIN TUNKU 5 JALAN GEMILANG, TAMAN DUTA, 50480 500
BESAR BURHANUDDIN KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
[D'CED] MALAYSIA.
--------------------
1,428,572
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : PUAN SRI TUNKU AZIZAH BTE TUNKU PETRA
Address : 5 JALAN GEMILANG, TAMAN DUTA, 50480 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No. : 0616166
New IC No : 161113-05-5014
Date of Birth : 13/11/1916
Nationality : MALAYSIAN MALAY
Date of Appointment : 31/03/1990
DIRECTOR 2
Name of Subject : MR. TUNKU MU'TAMIR BIN TUNKU TAN SRI MOHAMED
Address : 5 JALAN GEMILANG, TAMAN DUTA, 50480 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No. : 1697824
New IC No : 441229-05-5215
Date of Birth : 29/12/1944
Nationality : MALAYSIAN MALAY
Date of Appointment : 31/03/1990
DIRECTOR 3
Name of Subject : ATSUSHI OTSUKA
Address : UNIT 307, VILLA AMAN CONDO, 3 JALAN RITCHIE, OFF JALAN
AMPANG, 55000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No. : TE7513749
Nationality : JAPANESE
Date of Appointment : 22/07/2003
DIRECTOR 4
Name of Subject : YOSHIMI TAKAI
Address : 508 YAGOTOYAMA 373, TEMPAKU KU, NAGOYA CITY, AICHI, JAPAN.
IC / PP No. : TZ0020690
Nationality : JAPANESE
MANAGEMENT
1) Name of Subject : ATSUSHI OTSUKA
Position : MANAGING DIRECTOR
2) Name of Subject : ALLAN TAN TOAN SANG
Position :
3) Name of Subject : LEE MENG HUI
Position :
AUDITOR
Auditor : PRICEWATERHOUSECOOPERS
Auditors' Address : WISMA SIME DARBY, JALAN RAJA LAUT, 11TH FLOOR, 50706 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MDM. NURULUYUN BTE ABDUL JABAR
IC / PP No. : A0160499
New IC No. : 650606-02-5662
Address : 2A-3-2, DESA BISTARI CONDO, JALAN SETIA BISTARI, 50490
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Date of Appointment : 30/09/2004
BANKING
Banking relations are maintained principally with :
1) Banker Name : BANK OF TOKYO-MITSUBISHI (MALAYSIA) 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 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
Import Countries : ASIA, EUROPE.
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 : 60%
Domestic Markets : MALAYSIA.
Overseas : YES Percentage : 40%
Export Market : ASIA , SINGAPORE.
Credit Term : 30 - 60 DAYS.
Payment Mode : CHEQUES.
Type of Customer : MANUFACTURING INDUSTRIES , DISTRIBUTORS , AGENTS .
CUSTOMER (S) : 1) NIPPO MECHATRONICS (M) SDN BHD
OPERATIONS
Goods Traded : AUTOMOTIVE PARTS & ACCESSORIES, PLASTIC, METAL, ELECTRICAL AND
OTHERS
Competitor(s) : ALL TRADE RESOURCES (MALAYSIA) SDN BHD
PADU SEDIA SDN BHD
TAMPOI AUTO SUPPLY SDN BHD
TRUCKMASTER (M) SDN BHD
YAP SWEE LEONG SDN BHD
Total Number of Employees :
YEAR 2007
GROUP N/A
COMPANY 100
Branch : NO
Other Information :
The SC is principally engaged in the (as a / as an) trading in automotive parts, plastic, metal, electrical and others.
The SC is involve in the following business operations:
1) Commission agent
2) Commodity trading
The SC offers its customers a full array of goods and services through our Automotive Project, Metal, Electrical and Electronics and General Merchandise Department.
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 : 03-21423366
Match : N/A
Address Provided By Client : WISMA LIM FOO YONG, ROOM 1404, 14TH FLOOR,
86 JALAN RAJA CHULAN, 50200, KUALA LUMPUR,
WILAYAH PERSEKUTUAN.
Current Address : WISMA LIM FOO YONG,14TH FLOOR,ROOM 1404,86
JALAN RAJA CHULAN, 50200 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
Match : YES
Latest Financial Accounts : YES
Other Investigations
We contacted one of the Senior staff from the Customer Service Department. She provided some information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Decreased [ 33.20% ]
Profit / ( Loss ) before tax : Increased [ 31.83% ]
Return on Shareholder Funds : Acceptable [ 22.95% ]
Return on Net Assets : Favourable [ 37.61% ]
The shrinking turnover could be the result of more entrants into the market which eroded the SC's market share. The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.
Working Capital Control :
Stocks Ratio : Favourable [ 18 Days ]
Debtors Ratio : Acceptable [ 55 Days ]
Creditors Ratio : Favourable [ 12 Days ]
The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The SC's management was quite efficient in handling its debtors. The SC's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. 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 [ 0.80 Times ]
Current Ratio : Unfavourable [ 1.01 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 : Acceptable [ 5.58 Times ]
Gearing Ratio : Unfavourable [ 2.15 Times ]
The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. The SC was highly geared, thus it had a high financial risk. The SC was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the SC will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the SC has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the SC's turnover and the interest it needs to pay.
Overall Assessment :
Due to the efficient control of its operating costs, the SC was able to remain profitable despite lower turnover achieved during the year. 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. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. The SC's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the SC: LIMITED
ECONOMIC /
INDUSTRY OUTLOOK
Major Economic Indicators : 2004 2005 2006 2007* 2008**
Population
( Million ) 25.58 26.13 26.64 27.17 27.73
Gross
Domestic Products ( % ) 7.1 5.3 5.8 6.0 6.5
Domestic
Demand ( % ) 7.5 7.3 7.0 9.0 6.8
Private
Expenditure ( % ) 13.1 9.5 7.0 8.6 8.2
Consumption
( % ) 10.5 9.2 7.1 9.0 7.9
Investment
( % ) 25.8 8.5 7.0 7.1 9.5
Public
Expenditure ( % ) <2.1> 3.6 6.8 10.1 3.2
Consumption
( % ) 6.0 5.4 5.0 10.8 5.5
Investment
( % ) <8.7> 1.9 8.9 9.3 0.5
Balance of Trade ( RM Million
) 80,663 99,760 108,192 99,965 99,599
Government
Finance ( RM Million ) <19,419> <18,684> <19,109> <19,948> <20,933>
Government
Finance to GDP / Fiscal Deficit ( % ) <4.3> <3.8> <3.3> <3.2> <3.1>
Inflation
( % Change in Composite CPI ) 1.4 3.1 3.9 4.0 4.0
Unemployment
Rate ( % ) 3.5 3.5 3.4 3.5 3.3
Net International Reserves (
RM Billion ) 254 266 290 - -
Average 6
Months of Non-performing Loans ( % ) 13.84 13.63 12.91 - -
Average
Risk-Weigthted Capital Adequacy Ratio ( % ) 8.46 6.74 5.41 - -
Average
Base Lending Rate ( % ) 5.99 6.00 6.61 - -
Business
Loans Disbursed ( % ) 10.5 8.7 <2.5> - -
Foreign
Investment ( MYR Million ) 13,143.9 17,882.9 20,228.0 - -
Registration of New Companies
( No.) 38,580 37,474 38,293 - -
Registration
of New Companies ( % ) 6.8 <2.9> 2.2 - -
Liquidation
of Companies ( No. ) 3,334 3,069 8,647 - -
Liquidation
of Companies ( % ) <15.8> <7.9> 181.8 - -
Registration of New Business (
No. ) 189,206 193,095 216,147 - -
Registration
of New Business ( % ) 4.6 2.1 11.9 - -
Business
Dissolved ( No.) 51,301 73,355 52,879 - -
Business
Dissolved ( % ) 7.0 43.0 <27.9> - -
Sales of New Passenger Cars (
'000 Unit ) 380.6 400.8 374.1 - -
Cellular
Phone Subscribers ( Million ) 14.6 18.5 19.5 21.3 -
Tourist
Arrival ( Million Persons ) 15.7 16.7 17.5 20.1 -
Hotel
Occupancy Rate ( % ) 60.8 63.6 64.8 - -
Credit Cards Spending ( % ) 19.3 13.9 15.4 - -
Bad
Cheque Offenders ( No.) 70,465.0 57,316.0 36,555.0 - -
Individual
Bankruptcy ( No.) 16,251.0 15,868.0 13,596.0 - -
Individual
Bankruptcy ( % ) 31.6 <2.4> <14.3> - -
INDUSTRIES
( % of Growth ) : 2004 2005 2006 2007* 2008**
Agriculture 5.0 2.5 5.3 3.1 3.5
Palm Oil 3.9 7.1 5.8 <0.6> -
Rubber 16.5 <2.9> 12.6 1.0 -
Forestry
& Logging 4.3 2.0 <0.4> 2.8 -
Fishing 5.5 <0.4> 9.3 5.2 -
Other
Agriculture 2.4 3.2 5.3 7.0 -
Industry
Non-Performing Loans ( RM Million ) 620.3 563.7 516.5 487.3 -
% of
Industry Non-Performing Loans 1.4 1.2 1.1 1.1 -
Mining 3.9 0.8 <0.4> 3.3 4.0
Oil &
Gas 4.5 1.6 4.6 - -
Other
Mining <8.0> <1.0> 5.1 - -
Industry
Non-Performing Loans ( RM Million ) 62.6 68.8 55.4 42.2 -
% of
Industry Non-Performing Loans 0.1 0.1 0.1 0.1 -
Manufacturing # 9.8 5.1 7.3 3.1 3.8
Export-oriented
Industries 15.5 3.0 11.1 <1.9> -
Electrical
& Electronics 17.8 3.6 13.4 3.0 -
Rubber
Products 14.8 2.4 0.4 8.0 -
Wood
Products 12.7 0.9 0.7 3.3 -
Textiles
& Apparel <11.7> <4.4> 12.6 <10.1> -
Domestic-oriented
Industries 9.7 6.9 5.0 5.3 -
Food,
Beverages & Tobacco 3.8 7.7 4.8 5.6 -
Chemical
& Chemical Products 14.6 6.9 1.7 9.2 -
Plastic
Products 13.5 18.6 21.3 <3.6> -
Iron
& Steel 2.7 <6.7> <6.9> 17.5 -
Fabricated
Metal Products 29.2 <7.5> 20.0 26.2 -
Non-metallic
Mineral <4.8> <6.0> <1.9> 6.6 -
Transport
Equipment 8.6 10.4 5.3 <19.0> -
Paper
& Paper Products 2.3 4.6 4.1 14.9 -
Crude Oil
Refineries <2.4> 8.2 12.1 8.6 -
Industry
Non-Performing Loans ( RM Million ) 7,765.4 6,035.6 6,181.3 6,366.2 -
% of
Industry Non-Performing Loans 17.3 12.7 12.7 14.1 -
Construction <1.5> <1.6> <0.5> 5.2 6.3
Industry
Non-Performing Loans ( RM Million ) 5,547.7 5,172.7 5,527.3 5,116.7 -
% of
Industry Non-Performing Loans 12.4 10.9 11.4 11.3 -
Services 6.8 6.6 7.2 9.0 8.6
Electicity,
Gas & Water 8.1 5.5 5.2 4.6 5.0
Transport,
Storage & Communication 8.5 6.3 5.2 7.6 7.8
Wholesale,
Retail, Hotel & Restaurant 7.1 8.0 7.1 11.6 10.0
Finance,
Insurance & Real Estate 6.3 7.0 7.7 10.7 9.2
Government
Services 6.5 7.6 9.8 4.6 8.6
Other
Services 4.9 5.0 4.7 5.0 5.9
Industry
Non-Performing Loans ( RM Million ) 8,913.7 8,716.8 11,593.2 10,207.8 -
% of
Industry Non-Performing Loans 19.9 18.4 23.9 22.6 -
* Estimate
/ Preliminary
** Forecast
# Based On Manufacturing Production Index
( Source : Department of
Statistics / Economic Report / Bank
Negara Report )
INDUSTRY COMMENTS
MSIC CODE
50302 : Wholesale of parts and accessories for
industrial and commercial vehicle
51420 : Wholesale of metals, metal ores and fabricated
metals
51499 : Wholesale of other intermediate products,
waste and scrap n.e.c.
INDUSTRY : MOTOR VECHICLE
New car sales declined with September total industry volume
(TIV) easing to 45.0k units, after the previous high of 47.6k unit in August
2007 (mainly due to Hari Raya's festival sales). It was up 4.9% a year ago but down 5.5% month on month (mom)
compared to +0.8% year of year (yoy) and +5.9% mom in August and a low of
-16.8% yoy and -12.8% in April (i.e 33.7k units). The better performance in
September on yoy basis was due to : a) improvement in consumer confidence in
big ticket spending given the civil servant salary hike of 7.5-35% effective 1
July; b) improvement in hire purchase environment; and c) launch of proton
Persona.
September 2007 sales stood at 44,984 units or 2,601 units lower
than in August 2007. The figure is slightly higher than the 42,884 units
registered in the same month in 2006. According to MAA 40,892 passengers cars
were sold in September 2007, slightly higher than the 38,818 units sold in the
same month in 2006. Sales of commercial vehicles rose to 4,092 units from 4,066
units in 2006. So far in 2007, total sales were 358,234 units, including
325,542 passenger cars.
In the first nine months of 2006, 382,403 vehicles were sold,
including 347,855 passenger cars. A total of 40,660 vehicles were produced in
September 2007, compared with 39,874 units in the same month 2006. Total
industry output for the first nine months was 327,340 units, including 298,521
passenger cars,
against 400,024 units in the previous year.
Proton's sales volume rose 10.7% mom, driven largely by
Persona. However, Perodua's sales volume contracted 9.1% mom probably due to weaker Viva sales. Perodua's overall
market share declined further to 32.0% in September (August:33.3), whilst Proton's market
share increased to 29.7% (August:25.4%).
Despite MAA's cautious view on the industry (recall that in
September 2007 MAA trimmed its TIV forecast by 6.3% to 460k in 2007 from 490.8k
in 2006), the forecast of 489.5k which translates into average monthly sales of 43.8k (for the
balance three months of 2007) is achievable given: a) improvement in consumer
confidence; b) sales of newly released Proton Persona and the new Toyota Vios
picking up momentum after its October launch.
Car companies indicated that sales had been rising and expected
to remain robust for the year. Sales of Perusahaan Otomobil Kedua Sdn Bhd
(Perodua)'s top selling model, Myvi, had bounced back to between 8,000 and
9,000 cars a month. Proton is enjoying brisk sales, with orders for newly
introduced Persona
having reached 20,000 units since its launch in mid-August.
According to MAA new car sales expected to be slower in
October, largely due to the shorter number of working days as the country celebrated the
Hari Raya holidays.
OVERALL INDUSTRY OUTLOOK : DECLINING
COMMENTS
Incorporated in 1970, the SC is principally engaged in the
trading of automotive parts, plastic, metal, electrical and others. Being in the industry
for almost four decades, the Sc has maintain a good relationship with its
clients and we believe this will provide greater momentum to its future
business operation. With a large issued and paid up capital of RM1.43 million
and strong backing from its well-established holding company, the SC enjoys
timely financial assistance should the needs arise.
Besides catering to the local market, the SC also exports to neighboring
countries among Asia and also Singapore. As it concentrates in both local and
overseas markets, we believe that the SC has the ability to lower its business
risk to meet any uncertainties in the local economy. The SC is considered as a
large entity with a work force of 100. Its business operation is considered
stable. Overall the management capability of the SC is average.
During the financial year under review, the SC's turnover stands at
RM590.61 million, a reduction of 33.2% over the previous year. Nevertheless,
the SC recorded an increase of its pre-tax profit by 31.83% from RM8.14 million
in year 2005 to RM10.73 million in year 2006. The SC has generated a favourable
return on its shareholders' funds of 22.95%. However, the SC possesses a weak
liquidity position and we believe that the SC may face some difficulties in
meeting its short term financial obligations.
Moreover, the SC has a high gearing ratio of 2.15 times which has placed
the SC at high financial risk. Nevertheless, the SC maintain a positive net
worth standing at RM33.54 million. Thus, we believe the SC is able to enhance
its business in the near term.
Investigation revealed that the SC imports its products from
both local and overseas market. Thus it is affected by foreign currency fluctuation.
Having been in the industry for almost four decades, the SC has built up its
rapport with its suppliers. As a result, the SC has reduced its risk in facing
shortage of raw materials.
Based on our financial historical data, the SC overall payment habit is
regarded as average.
The industry demonstrate downward trend. The immediate outlook for the
industry is unfavourable. With this unconductive industry environment, it might
pressure down the SC's performance.
In view of above and base on our assessment, we recommend credit be granted to the SC normally.
THE FINANCIAL STATEMENTS WERE
PREPARED
IN ACCORDANCE WITH MALAYSIA
ACCOUNTING
STANDARD.
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-March-2006
TOYOTA
TSUSHO (MALAYSIA) SDN BHD
15
month
2006 2005
MYR MYR
TURNOVER 590,614,436 884,155,936
=========== ===========
PROFIT/(LOSS) FROM OPERATIONS 10,733,243 8,141,493
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 10,733,243 8,141,493
Taxation <3,035,161> <2,364,991>
------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 7,698,082 5,776,502
------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 7,698,082 5,776,502
------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 7,698,082 5,776,502
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported 24,417,612 18,641,110
------------------- -------------------
As restated 24,417,612 18,641,110
------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 32,115,694 24,417,612
------------------- -------------------
RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 32,115,694 24,417,612
=========== ===========
RETAINED BY: The Company 32,115,694 24,417,612
------------------- -------------------
32,115,694 24,417,612
=========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Other
interest expenses 2,344,304 2,100,390
------------------- -------------------
2,344,304 2,100,390
=========== ===========
BALANCE SHEET
As
At 31-March-2006
15
month
2006 2005
MYR MYR
ASSETS
EMPLOYED:
FIXED ASSETS 3,951,901 4,762,329
LONG
TERM INVESTMENTS/OTHER ASSETS
Associated
companies 14,771,186 14,641,186
Investments 11,766,615 15,157,615
Deferred
assets 2,717,249 434,296
------------------- -------------------
TOTAL LONG
TERM INVESTMENTS/OTHER ASSETS 29,255,050 30,233,097
INTANGIBLE
ASSETS
------------------- -------------------
------------------- -------------------
TOTAL LONG
TERM ASSETS 33,206,951 34,995,426
CURRENT
ASSETS
Stocks 29,148,048 30,443,712
Trade debtors 89,526,412 42,319,394
Other
debtors, deposits & prepayments 482,120 10,966,776
Items in
transit between head office & branches
Amount due
from subsidiary companies 1,426,373 6,196,834
Amount due from
associated companies 8,745,822 10,753,204
Cash &
bank balances 9,178,309 10,142,138
------------------- -------------------
TOTAL CURRENT
ASSETS 138,507,084 110,822,058
CURRENT
LIABILITIES
Trade
creditors 19,564,113 18,867,274
Other
creditors & accruals 3,059,981 10,695,865
Bank
overdraft - 162,286
Other
borrowings 72,000,000 33,000,000
Bill &
acceptances payable - 35,702,000
Amounts owing
to holding company 8,235,847 6,626,637
Amounts owing
to subsidiary companies 30,446,911 11,646,984
Amounts owing
to associated companies 723,835 1,236,460
Provision for
taxation 2,544,350 732,094
Provision for
liabilities 369,660 369,660
------------------- -------------------
TOTAL CURRENT
LIABILITIES 136,944,697 119,039,260
------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) 1,562,387 <8,217,202>
------------------- -------------------
TOTAL NET
ASSETS 34,769,338 26,778,224
=========== ===========
FINANCED BY:
SHARE CAPITAL
Ordinary
share capital 1,428,572 1,428,572
------------------- -------------------
TOTAL SHARE
CAPITAL 1,428,572 1,428,572
RESERVES
Retained
profit/(Accumulated loss) carried
forward 32,115,694 24,417,612
------------------- -------------------
TOTAL
RESERVES 32,115,694 24,417,612
------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 33,544,266 25,846,184
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Retirement
benefits provision 1,225,072 932,040
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 1,225,072 932,040
------------------- -------------------
34,769,338 26,778,224
=========== ===========
FINANCIAL RATIOS
As
At 31-March-2006
TOYOTA
TSUSHO (MALAYSIA) SDN BHD
15
month
2006 2005
MYR MYR
TYPES OF
FUNDS
Cash 9,178,309 10,142,138
Net Liquid
Funds 9,178,309 9,979,852
Net Liquid
Assets <27,585,661> <38,660,914>
Net Current
Assets/(Liabilities) 1,562,387 <8,217,202>
Net Tangible
Assets 34,769,338 26,778,224
Net Monetary
Assets <28,810,733> <39,592,954>
BALANCE
SHEET ITEMS
Total
Borrowings 72,000,000 33,162,286
Total
Liabilities 138,169,769 119,971,300
Total Assets 171,714,035 145,817,484
Net Assets 34,769,338 26,778,224
Net Assets
Backing 33,544,266 25,846,184
Shareholders''
Funds 33,544,266 25,846,184
Total Share
Capital 1,428,572 1,428,572
Total
Reserves 32,115,694 24,417,612
LIQUIDITY
(Times)
Cash Ratio 0.07 0.09
Liquid Ratio 0.80 0.68
Current Ratio 1.01 0.93
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 18 13
Debtors Ratio 55 17
Creditors
Ratio 12 8
SOLVENCY
RATIOS (Times)
Gearing Ratio 2.15 1.28
Liabilities
Ratio 4.12 4.64
Times
Interest Earned Ratio 5.58 4.88
PERFORMANCE
RATIO (%)
Operating
Profit Margin 1.82 0.92
Net Profit
Margin 1.30 0.65
Return On Net
Assets 37.61 38.25
Return On Capital
Employed 37.61 38.02
Return On
Shareholders'' Funds/Equity 22.95 22.35
Dividend Pay
Out Ratio (Times) 0 0
NOTES
TO ACCOUNTS
Contingent
Liabilities 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%)