MIRA
INFORM REPORT
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Report Date : |
25th
January, 2007 |
IDENTIFICATION
DETAILS
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Name : |
INTICRAFT
SDN BHD |
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Registered Office : |
23, Jalan Ss 2/30, 1st Floor, 47300 Petaling Jaya, Malaysia. |
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Country : |
Malaysia |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
17.11.1997 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufactured
of Gold & Jewellery |
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 : |
Regular |
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Litigation : |
Clear |
EXECUTIVE SUMMARY
LOCAL NO : 453119-W
COMPANY NAME : INTICRAFT SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 17/11/1997
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : 23, JALAN SS 2/30, 1ST FLOOR, 47300 PETALING JAYA,
MALAYSIA.
BUSINESS ADDRESS : 40-46, JALAN MAAROF, BANGSAR BARU, 59100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
TEL NO : 03 - 22823618
FAX NO : 03 - 22871936
CONTACT PERSON : CHOONG KAI SOON (DIRECTOR)
INDUSTRY CODE : 36910
PRINCIPAL ACTIVITY : MANUFACTURING AND TRADING IN GOLD & JEWELLERY
AUTHORISED CAPITAL : MYR500,000.00 DIVIDED INTO
ORDINARY SHARE 500,000 OF MYR1.00 EACH.
ISSUED & PAID UP CAPITAL : MYR500,000.00 DIVIDED INTO
ORDINARY SHARE 500,000 CASH OF MYR1.00 EACH.
SALES : MYR46,623,176 [2005]
NET WORTH : MYR19,937,491 [2005]
STAFF STRENGTH : 60 [2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : FAIR
PAYMENT : AVERAGE
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
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) manufacturing and trading in gold & jewellery.
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 immediate holding company of the SC is PYT JEWEL & TIME SDN BHD, a company incorporated in
MALAYSIA.
The ultimate holding company of the SC is LEGION MASTER SDN BHD, a company incorporated in MALAYSIA.
The penultimate holding company of the SC is DEGEM BERHAD, a company incorporated in MALAYSIA.
The major shareholder(s) of the SC are shown as follows :
|
Name |
Address |
IC/PP/Loc No: |
Shareholding |
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P.Y.T. JEWEL & TIME SDN BHD |
49, JALAN SS 2/55, 2ND FLOOR, 47300 PETALING JAYA, SELANGOR, MALAYSIA. |
92171 |
500,000 |
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500,000 |
+ Also
Director
DIRECTORS
We have
conducted the following 2 essential checks on all the directors of the SC in
our database:
*INTEREST
CHECK This refers to a check in
our databank whether the said person has any interest
companies
and businesses.
*CREDIT
HISTORY CHECK : This refers to a
check in our databank whether the said person has been involved in any legal
suites, bankruptcy, liquidated/wound up companies in Malaysia and as well as
any other default information related to him/her which were contributed by our valued subscribers.
Our information on bankruptcy and wound up companies date back to 1900.
DIRECTOR 1
Name of Subject : MR. CHOONG KHOI ONN
Address : 40, JALAN SS 24/24, TAMAN MEGAH, 47301 PETALING JAYA, SELANGOR,
MALAYSIA.
IC / PP No : 8191380
New IC No : 560810-08-6519
Date of Birth : 10/08/1956
Nationality : MALAYSIAN CHINESE
INTEREST CHECK
Interest in other companies : see below
Interest in business : none in our databank
INTEREST IN COMPANY
|
Company |
Designation |
Shareholding |
Court As At |
|
INTICRAFT SDN BHD |
Director |
0 |
12/01/2007 |
CREDIT HISTORY CHECK
Legal action : none in our databank
Bankruptcy action : none in our databank
Secretary/director/ shareholder of would up company : none in our databank
Contributing subscriber default information : none in our databank
DIRECTOR 2
Name of Subject : MR. CHOONG KAI SOON
Address : 17, JALAN SS 22/34, TAMAN DAMANSARA JAYA, 47400 PETALING
JAYA, SELANGOR, MALAYSIA.
IC / PP No : 5783480
New IC No : 591022-08-5453
Date of Birth : 22/10/1959
Nationality : MALAYSIAN CHINESE
Working Experience : HE WAS A DIRECTOR OF P.Y.T., P-JEWELLER, P-AMPANG, DIAMOND &
PLATINUM, INTICRAFT, P-MANUFACTURING, TONG YEK, DIAMOND
MART AND TELENAGA. HE STARTED HIS CAREER WORKING AS A
GOLDSMITH AND RESPONSIBLE FOR THE MANUFACTURING DIVISIONS
OF THE GROUP AS WELL AS IN ENFORCING QUALITY CONTROL
DURING MANUFACTRUING AND ON-THE-JOB TRAINING TO CRAFTMEN
IN THE GROUP
INTEREST CHECK
Interest in other companies : see below
Interest in business : none in our databank
INTEREST IN COMPANY
|
Company |
Designation |
Shareholding |
Court As At |
|
INTICRAFT SDN BHD |
Director |
0 |
12/01/2007 |
CREDIT HISTORY CHECK
Legal action : none in our databank
Bankruptcy action : none in our databank
Secretary/director/ shareholder of would up company : none in our databank
Contributing subscriber default information : none in our databank
DIRECTOR 3
Name of Subject : MR. CHOONG KAI FATT
Address : 51, JALAN 24/24, TAMAN MEGAH, 47301 PETALING JAYA,
SELANGOR, MALAYSIA.
IC / PP No : 6099642
New IC No : 610103-08-5501
Date of Birth : 03/01/1961
Nationality : MALAYSIAN CHINESE
Qualification :
HE STUDIED GEMOLOGY FROM THE GEMOLOGICAL INSTITUTE IN
AMERICA
Working Experience : HE WAS A DIRECTOR OF P.Y.T., P-JEWELLERS, P-AMPANG, DIAMOND &
PLATINUM, INTICRAFT, P-MEDAL, DIAMOND MART AND TELENAGA HE
HAS MORE THAN 20 YEARS' EXPERIENCED IN THE JEWELLERY
BUSINESS HE JOINED P.Y.T. IN 1983 HE QUALIFIED GEMOLOGIST
SINCE 1989
INTEREST CHECK
Interest in other companies : see below
Interest in business : none in our databank
INTEREST IN COMPANY
|
Company |
Designation |
Shareholding |
Court As At |
|
INTICRAFT SDN BHD |
Director |
0 |
12/01/2007 |
CREDIT HISTORY CHECK
Legal action : none in our databank
Bankruptcy action : none in our databank
Secretary/director/ shareholder of would up company : none in our databank
Contributing subscriber default information : none in our databank
MANAGEMENT
1) Name of Subject : CHOONG KAI SOON
Position : DIRECTOR
2) Name of Subject : ADELINE CHONG
Position : HUMAN RESOURCE MANAGER
AUDITOR
Auditor : ERNST & YOUNG
Auditors' Address : MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, LEVEL 23A, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MS. LIM AY JU
IC / PP No. : A1546670
New IC No. : 700530-04-5124
Address : BLOCK 10-3-D, SD APARTMENT, PERSIARAN MERANTI, BANDAR
SRI DAMANSARA, 52200 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
2) Company Secretary : MS. WONG TIEW PENG
IC / PP No. : A2643484
New IC No. : 740115-05-5348
Address : 46, JALAN BU 12/9, BANDAR UTAMA, 47800 PETALING JAYA,
SELANGOR, MALAYSIA.
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)
ENCUMBRANCE 1
Date of Creation : 12 May 2004
Description of Charge : DEED OF ASSIGNMENT
Amount Secured : RM 50,000,000.00
Description of Property Affected : ALL COMPANY'S PRESENT, FUTURE RIGHTS, TITLE & INTEREST
Name & Address of Chargee : BUMIPUTRA-COMMERCE TRUSTEE BHD
BUMIPUTRA-COMMERCE BANK BHD, 6 JALAN TUN PERAK,
21ST FLOOR, 50050 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
Form 40 Dated 19 May 2004
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
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 [ ] Average [ X ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES
Domestic Markets : MALAYSIA.
Overseas : YES
Export Market : BRUNEI DARUSSALAM.
Credit Term : AS AGREED.
OPERATIONS
Products Manufactured : GOLD & JEWELLERY
Competitor(s) : HABIB CORPORATION BHD
HITECH DISPLAYS SDN BHD
HABIB JEWELRY MANUFACTURING SDN BHD
MALAYSIAN INDUSTRIAL DIAMOND & SYNTHESIZING SDN BHD
RM ASSAY OFFICE (MALAYSIA) 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 60 65 74 80
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 : 03-22823618
Match : N/A
Address Provided By Client : 40-46, JALAN MAAROF, BANGSAR BARU, 59150 KUALA
LUMPUR
Current Address : 40-46, JALAN MAAROF, BANGSAR BARU, 59100
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Match : YES
Latest Financial Accounts : YES
Other Investigations
On 23rd January 2007, we conducted an interview with one of the staff from the SC's Admin Department. She furnished some information pertaining to the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Decreased [ 49.47% ]
Profit / ( Loss ) before tax : Decreased [ 54.35% ]
Return on Shareholder Funds : Acceptable [ 15.66% ]
Return on Net Assets : Acceptable [ 26.68% ]
The shrinking turnover could be the result of more entrants into the market which eroded the SC's market share. 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 : Unfavourable [ 126 Days ]
Debtors Ratio : Favourable [ 20 Days ]
Creditors Ratio : Favourable [ 48 Days ]
The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. 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 [ 1.05 Times ]
Current Ratio : Unfavourable [ 1.56 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 : Acceptable [ 5.20 Times ]
Gearing Ratio : Favourable [ 0.00 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 had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
The SC's performance deteriorated over the years with lower 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.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 was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.
Overall financial condition of the SC:
FAIR
BASIS COMMENTS
Incorporated in 1997 as a private limited company, the SC is principally engaged in the manufacturing and trading of gold & jewellery. Backed by a well-established holding company with issued and paid up capital of RM500,000, the SC is expected to enjoy timely financial assistance should the needs arise.
Over the years, the SC has built up a good reputation and a stable clientele base. It designs and supplies most of the finished jewellery for the group's retail outlets marketed under PYT, Diamond & Platinum and Degem Diamond Collection brand, which caters for different market segments and demand. With a diversified customers' base, the SC's market risk is mitigated. Moreover, the SC's ability to penetrate into the global market has minimised its business risk. Currently, the SC has a workforce of 60 employees and its management capability is considered average.
During the financial year 2005, the SC's performance shows a reverse trend as both its turnover and pre-tax profit has decreased compared to previous year. Its turnover dropped significantly by 49.47% from RM92,268,528 to RM46,623,176 whilst its pre-tax profit saw a drop of 54.35% to RM4,318,854, in view of decline in margin as a result of a challenging and competitive business environment. However, the SC managed to generate an acceptable return of 15.66% for its shareholders' which indicated that the management was efficient in utilising its funds to generate income. The SC's liquidity position was at an cceptable range and it should be able to meet its short term financial obligations. Being a zero eared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to inance its business needs. Overall, the SC's financial standing is fair.
Investigation revealed that the SC's raw materials are sourced locally and from overseas countries.
Hence, it is subjected to the currency fluctuation risk which in turn may affect its profitability.
Based on the historical financial data, we concluded that the SC's payment record is average. The SC is
clear of litigation.
At present, the market trend was moving towards platinum and white gold jewellery and the demand are
on the rise, especially among youngster. This younger generation between 18 to 35 years of age had
already demonstrated a preference for jewellery of contemporary design set in platinum and white gold,
as opposed to yellow gold. Since over 90% of the SC's jewellery products are diamonds set in platinum
(Pt 950) or 18-karat white gold (750W), we believe that the encouraging demand for the SC's products
would present more business opportunities for the SC.
In view of the above, 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-December-2005
2005 2004
MYR MYR
TURNOVER 46,623,176 92,268,528
=========== ===========
PROFIT/(LOSS) FROM OPERATIONS 4,318,854 9,460,509
SHARE OF PROFITS/(LOSSES) OF ASSOCIATED
------------------- -------------------
PROFIT/(LOSS) BEFORE TAXATION 4,318,854 9,460,509
Taxation <1,196,046> <1,115,381>
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PROFIT/(LOSS) AFTER TAXATION 3,122,808 8,345,128
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PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS 3,122,808 8,345,128
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PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS 3,122,808 8,345,128
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously reported 19,214,683 14,794,555
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As restated 19,214,683 14,794,555
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PROFIT AVAILABLE FOR APPROPRIATIONS 22,337,491 23,139,683
DIVIDENDS - Ordinary (paid & proposed) <2,900,000> <3,925,000>
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RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 19,437,491 19,214,683
=========== ===========
RETAINED BY:
The Company 19,437,491 19,214,683
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19,437,491 19,214,683
=========== ===========
INTEREST EXPENSE (as per notes to P&L)
amount owing to penultimate holding company 1,027,975 850,074
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1,027,975 850,074
=========== ===========
BALANCE SHEET
As At 31-December-2005
2005 2004
MYR MYR
ASSETS
EMPLOYED:
FIXED
ASSETS 2,221,738 2,333,176
LONG
TERM INVESTMENTS/OTHER ASSETS
------------------- -------------------
INTANGIBLE
ASSETS
------------------- -------------------
------------------- -------------------
TOTAL
LONG TERM ASSETS 2,221,738 2,333,176
CURRENT
ASSETS
Stocks 16,144,596 13,190,422
Trade
debtors 2,586,711 1,496,432
Other
debtors, deposits & prepayments 36,192 17,495
Items
in transit between head office & branches
Amount
due from holding company 7,192,100 8,168,235
Amount
due from related companies 23,110,237 33,093,473
Cash
& bank balances 616,096 1,562,555
------------------- -------------------
TOTAL
CURRENT ASSETS 49,685,932 57,528,612
CURRENT
LIABILITIES
Trade creditors 6,085,376 19,013,974
Other
creditors & accruals 272,065 288,619
Amounts
owing to related companies 1,400,480 1,905,617
Provision
for taxation 261,373 104,749
amount
due to penultimate holding company 23,846,885 18,730,146
------------------- -------------------
TOTAL
CURRENT LIABILITIES 31,866,179 40,043,105
------------------- -------------------
NET
CURRENT ASSETS/(LIABILITIES) 17,819,753 17,485,507
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TOTAL
NET ASSETS 20,041,491 19,818,683
=========== ===========
FINANCED BY:
SHARE
CAPITAL
Ordinary
share capital 500,000 500,000
------------------- -------------------
TOTAL
SHARE CAPITAL 500,000 500,000
RESERVES
Retained
profit/(Accumulated loss) carried
forward 19,437,491 19,214,683
------------------- -------------------
TOTAL
RESERVES 19,437,491 19,214,683
------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 19,937,491 19,714,683
LONG
TERM & DEFERRED LIABILITIES & PROVISIONS
Deferred
taxation 104,000 104,000
------------------- -------------------
TOTAL LONG TERM & DEFERRED LIABILITIES
&
PROVISIONS 104,000 104,000
------------------- -------------------
20,041,491 19,818,683
=========== ===========
FINANCIAL RATIOS
As At 31-December-2005
2005 2004
MYR MYR
TYPES OF
FUNDS
Cash 616,096 1,562,555
Net
Liquid Funds 616,096 1,562,555
Net
Liquid Assets 1,675,157 4,295,085
Net
Current Assets/(Liabilities) 17,819,753 17,485,507
Net
Tangible Assets 20,041,491 19,818,683
Net
Monetary Assets 1,571,157 4,191,085
BALANCE
SHEET ITEMS
Total
Borrowings 0 0
Total
Liabilities 31,970,179 40,147,105
Total
Assets 51,907,670 59,861,788
Net
Assets 20,041,491 19,818,683
Net
Assets Backing 19,937,491 19,714,683
Shareholders''
Funds 19,937,491 19,714,683
Total
Share Capital 500,000 500,000
Total
Reserves 19,437,491 19,214,683
LIQUIDITY
(Times)
Cash
Ratio 0.02 0.04
Liquid
Ratio 1.05 1.11
Current
Ratio 1.56 1.44
WORKING
CAPITAL CONTROL (Days)
Stock
Ratio 126 52
Debtors
Ratio 20 6
Creditors
Ratio 48 75
SOLVENCY
RATIOS (Times)
Gearing
Ratio 0 0
Liabilities
Ratio 1.60 2.04
Times
Interest Earned Ratio 5.20 12.13
PERFORMANCE
RATIO (%)
Operating
Profit Margin 9.26 10.25
Net
Profit Margin 6.70 9.04
Return
On Net Assets 26.68 52.02
Return
On Capital Employed 26.68 52.02
Return
On Shareholders'' Funds/Equity 15.66 42.33
Dividend
Pay Out Ratio (Times) 0.93 0.47
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/normal. |
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 |
|