MIRA
INFORM REPORT
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Report Date : |
15.06.2007 |
IDENTIFICATION DETAILS
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Name : |
TROPICAL ACHIEVEMENT SDN BHD |
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Registered Office : |
70-3-1, Jalan 3/62d, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
27/05/1998 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trading in Palm Oil Products & Other related Products. |
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 |
* Adopted abbreviations : SC - Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 463065-X
COMPANY NAME : TROPICAL ACHIEVEMENT SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 27/05/1998
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : 70-3-1, JALAN 3/62D,
OFF
JALAN DAMANASARA, 52200
BUSINESS ADDRESS : NO 69 LORONG BATU MILAM 28C, BUKIT TINGGI 2, 41200
KLANG,
TEL NO : 03 - 51612544
FAX NO : 03 - 51612580
CONTACT PERSON : ELANGO RAMASAMY (MANAGING DIRECTOR)
INDUSTRY CODE : 5191
PRINCIPAL ACTIVITY : TRADING IN PALM OIL PRODUCTS & OTHER RELATED
PRODUCTS
AUTHORISED CAPITAL : MYR100,000.00 DIVIDED INTO ORDINARY SHARE 100,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR100,000.00 DIVIDED INTO ORDINARY SHARE 100,000
CASH OF MYR1.00 EACH.
SALES : MYR5,889,221 [2005]
NET WORTH : MYR198,840 [2005]
STAFF STRENGTH : 5 [2007]
BANKER (S) : PUBLIC BANK BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : STABLE
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) trading in palm oil products & other related products.
The SC is not listed on
The SC is not qualified to be one of the Top Corporate
Performers in the
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No:
Shareholding
MR. ELANGO A/L G.RAMASAMY 34, JALAN 11, PANDAMARAN JAYA, 600609-07-5053 50,000
+
MR. MURALIGANAN A/L 107A,
LORONG SUTERA 9,
M.MAYANDI +
--------------------
100,000
===========
+
Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. ELANGO A/L G.RAMASAMY
Address : 34, JALAN 11, PANDAMARAN JAYA,
IC / PP No. : N/A
New IC No : 600609-07-5053
Date of Birth : 09/06/1960
Nationality : MALAYSIAN INDIAN
Date of Appointment : 17/06/1998
DIRECTOR 2
Name of Subject : MR. MURALIGANAN A/L M.MAYANDI
Address : 107A, LORONG SUTERA 9, TAMAN MAZNAH,
IC / PP No. : A0264421
New IC No : 650821-07-5099
Date of Birth : 21/08/1965
Nationality : MALAYSIAN INDIAN
Date of Appointment : 14/04/2000
MANAGEMENT
1) Name of Subject : ELANGO RAMASAMY
Position : MANAGING DIRECTOR
2) Name of Subject : THANGARAJU
Position : ACCOUNTANT
AUDITOR
Auditor : FKL & ASSOCIATES
Auditors' Address : 27-4, JALAN PJU 1/42A, DATARAN PRIMA, LEVEL 4 PETALING JAYA,
COMPANY SECRETARY
1) Company Secretary : MS. TUNG MUN YING
IC / PP No. : 5648427
New IC No. : 581031-10-6528
Address : 70-3-2, JALAN 3/62D,
52200
Date of Appointment : 17/06/1998
BANKING
Banking relations are maintained principally with :
1) Banker Name : PUBLIC 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 : 24 Mar 2006
Description of Charge : N/A
Amount Secured : RM 390,000.00
Description of Property Affected : N/A
Name & Address of Chargee : PUBLIC BANK BHD
Form 40 Dated
Registered and Numbered 1 In The Register of Charges
ENCUMBRANCE 2
Date of Creation : 28 Jul 2006
Description of Charge : N/A
Amount Secured : RM 508,500.00
Description of Property Affected : N/A
Name & Address of Chargee : PUBLIC BANK BHD
Form 40 Dated
Registered and Numbered 2 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
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 [ ] Average [ X ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES Percentage : 100%
Domestic Markets :
Overseas : NO Percentage : 0 %
Credit Term : AS AGREED.
Payment Mode : CHEQUES.
OPERATIONS
Goods Traded : PALM OIL PRODUCTS
Competitor(s) : VARITRONIX (
FUNG
KEONG RUBBER MANUFACTORY (
GUNUNG RESOURCES SDN BHD
ETOWA CORPORATION (M) SDN BHD
NILAI NYALA SDN BHD
Total Number of Employees :
YEAR 2007
GROUP N/A
COMPANY 5
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 : 03-51612544
Match : N/A
Address Provided By Client : NO 69 LORONG BATU MILAM 28C, BUKIT TINGGI 2,
41200 KLANG SEALNGOR
Current Address : NO 69 LORONG BATU MILAM 28C, BUKIT TINGGI 2,
41200
KLANG,
Match : YES
Latest Financial Accounts : YES
Other Investigations
On 14th June 2007, we conducted an interview with Ms Marry from the SC's Admin Department. She revealed some information pertaining to the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Decreased [ 63.71% ]
Profit / ( Loss ) before tax : Increased [ 39.58% ]
Return on Shareholder Funds : Acceptable [ 23.50% ]
Return on Net Assets : Favourable [ 31.07% ]
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 : Nil [ 0 Days ]
Debtors Ratio : Unfavourable [ 165 Days ]
Creditors Ratio : Unfavourable [ 175 Days ]
As the SC is a service oriented company, the SC does not need to keep stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.
Liquidity :
Liquid Ratio : Favourable [ 1.04 Times ]
Current Ratio : Unfavourable [ 1.04 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 : Nil [ 0.00 Times ]
Gearing Ratio : Favourable [ 0.00 Times ]
The SC's interest cover was nil as it did not pay any interest during the year. 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 :
Due to the efficient control of its operating costs, the SC was able to remain profitable despite lower turnover achieved during the year. 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 did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. 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: STABLE
COMMENTS
The SC started its corporation in 1998 as a Private Limited company.
Basically, the SC is engaged in the trading in palm oil products and other
related products as well. Due to its long presence in the business, the SC should have built up a
satisfactory reputation in the market. Besides that, we found that the issued and paid up capital
stands at RM100,000 and the shares are equally held by two shareholders.
Currently, the SC is overseen by the Managing Director, Elango Ramasamy supported by 5 employees in its business operation. Throughout its years of establishment, the SC has slowly been building up contacts with its clients and competing in the industry. Information revealed that the SC serves only the local market. With the full concentration in the domestic market, the SC is likely to be exposed to higher business risk if there is a downturn in the local economy. However, the SC has a moderate range of products in its corporation. Thus, this will minimize its market risk should there be any unfavourable events.
The financial summary of the SC in Year 2005 showed that it was financially STABLE. Compared to the previous year, the SC's turnover has decreased about 60% to RM6million. However, the SC was still able to generate a higher pre-tax profit of RM63,339 in 2005. Return on shareholders' funds of the SC is relatively high, which demonstrated that the SC was efficient in utilising its shareholders' fund to generate favourable returns in 2005. Besides that, the SC was in good liquidity position with its current liabilities well covered by its current assets. Thus, the SC will not face any problems in meeting all its short term obligations. Being a lowly geared company, the SC's financial risk can be minimised due to the low liabilities ratio. In 2005, the shareholders' funds increased to RM198,840.
The SC might be exposed to forex risk as some suppliers are from overseas. As the SC has been operating for about 10 years in the industry, it should be able to develop a stable supplier and clientele base. The SC might not face any problems of shortage raw materials in future as the suppliers are both local and from overseas .
Based on the historical financial data, the SC's overall payment habit is average.
The industry as a whole, the SC is expected to enjoy average growth in the future. The palm oil industry seems to be an important component of the national economy and especially the agricultural sector. There are many competitors exist in the competitive market and perhaps that the SC should be able to gain certain market shares due to its reputation and long establishment.
In view of the above, we recommend the credit be granted to the SC normally.
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-December-2005
TROPICAL
ACHIEVEMENT SDN BHD
2005 2004
MYR MYR
TURNOVER 5,889,221 16,228,448
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PROFIT/(LOSS) FROM OPERATIONS 63,339 45,377
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
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PROFIT/(LOSS)
BEFORE TAXATION 63,339 45,377
Taxation <16,619> <1,920>
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PROFIT/(LOSS)
AFTER TAXATION 46,720 43,457
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PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 46,720 43,457
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PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 46,720 43,457
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported 52,120 8,663
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As restated 52,120 8,663
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PROFIT
AVAILABLE FOR APPROPRIATIONS 98,840 52,120
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RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 98,840 52,120
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RETAINED BY: The Company 98,840 52,120
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98,840 52,120
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INTEREST
EXPENSE (as per notes to P&L)
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BALANCE SHEET
As At 31-December-2005
TROPICAL ACHIEVEMENT SDN BHD
2005 2004
MYR MYR
ASSETS
EMPLOYED:
FIXED ASSETS 92,015 75,579
LONG
TERM INVESTMENTS/OTHER ASSETS
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INTANGIBLE
ASSETS
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TOTAL LONG
TERM ASSETS 92,015 75,579
CURRENT
ASSETS
Trade debtors 2,668,350 1,068,279
Other
debtors, deposits & prepayments 419,132 488,984
Items in
transit between head office & branches
Cash &
bank balances 79,225 423,642
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TOTAL CURRENT
ASSETS 3,166,707 1,980,905
CURRENT
LIABILITIES
Trade
creditors 2,830,524 865,212
Other
creditors & accruals 21,524 11,552
Provision for
taxation 569 1,450
amount due to
enterprise which certain directors has 202,265 -
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TOTAL CURRENT
LIABILITIES 3,054,882 878,214
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NET CURRENT
ASSETS/(LIABILITIES) 111,825 1,102,691
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TOTAL NET ASSETS 203,840 1,178,270
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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 98,840 52,120
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TOTAL
RESERVES 98,840 52,120
SHAREHOLDERS' FUNDS/EQUITY 198,840 152,120
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
advances from
directors 5,000 1,026,150
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TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 5,000 1,026,150
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203,840 1,178,270
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FINANCIAL RATIOS
As At 31-December-2005
TROPICAL ACHIEVEMENT SDN BHD
2005 2004
MYR MYR
TYPES OF
FUNDS
Cash 79,225 423,642
Net Liquid
Funds 79,225 423,642
Net Liquid
Assets 111,825 1,102,691
Net Current
Assets/(Liabilities) 111,825 1,102,691
Net Tangible
Assets 203,840 1,178,270
Net Monetary
Assets 106,825 76,541
BALANCE
SHEET ITEMS
Total
Borrowings 0 0
Total
Liabilities 3,059,882 1,904,364
Total Assets 3,258,722 2,056,484
Net Assets 203,840 1,178,270
Net Assets
Backing 198,840 152,120
Shareholders''
Funds 198,840 152,120
Total Share
Capital 100,000 100,000
Total
Reserves 98,840 52,120
LIQUIDITY
(Times)
Cash Ratio 0.03 0.48
Liquid Ratio 1.04 2.26
Current Ratio 1.04 2.26
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 0 0
Debtors Ratio 165 24
Creditors
Ratio 175 19
SOLVENCY
RATIOS (Times)
Gearing Ratio 0 0
Liabilities
Ratio 15.39 12.52
Times
Interest Earned Ratio 0 0
PERFORMANCE
RATIO (%)
Operating
Profit Margin 1.08 0.28
Net Profit
Margin 0.79 0.27
Return On Net
Assets 31.07 3.85
Return On
Capital Employed 31.07 3.85
Return On
Shareholders'' Funds/Equity 23.50 28.57
Dividend Pay
Out Ratio (Times) 0 0
NOTES
TO ACCOUNTS
Contingent
Liabilities 0 0
RATING EXPLANATIONS
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
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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 |
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<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%)