|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
560270-K
|
|
COMPANY NAME
|
:
|
JAL DIAM SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
29/09/2001
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
CP 5-01, MENARA CITY ONE, 3 JALAN MUNSHI ABDULLAH, LEVEL 5, 50100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
109, 23-3, JALAN PUTRA, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
TEL.NO.
|
:
|
03-40472768
|
|
FAX.NO.
|
:
|
03-40472769
|
|
CONTACT PERSON
|
:
|
JIGNESH RAMESH KUMAR JHAVERI ( EXECUTIVE DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
52392
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING AND
PRECIOUS STONES AND SHAPE OF DIAMONDS
|
|
AUTHORISED CAPITAL
|
:
|
MYR 500,000.00
DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 350,000.00
DIVIDED INTO
ORDINARY SHARES 350,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 6,693,086 [2006]
|
|
NET WORTH
|
:
|
MYR 442,192 [2006]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
1 [2008]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
FAIR
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
HIGH
|
|
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 and precious
stones and shape of diamonds.
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
|
|
MS. A MAHESWARY D/O S ARJUNA +
|
85, LORONG JAYA 9, BANDAR TUN RAZAK, CHERAS, 56000 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
660818-10-6180
|
122,500.00
|
|
JIGNESH RAMESHKUMAR JHAVERI +
[OLD PP:Z1477237]
|
109-23-3, 1/64D, OFF JALAN PUTRA, BISTARI CONDOMINIUM, 50350 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
Z012926
|
105,000.00
|
|
MS. SITI SUHANA BTE MOHAMED OTHMAN
|
3432, JALAN 18/60B, TAMAN SRI SERDANG, 43400 SERDANG, SELANGOR,
MALAYSIA.
|
790710-01-5098
|
122,500.00
|
|
|
|
|
---------------
|
|
|
|
|
350,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. INDRA DEVI D/O JAGASUNDARA BOSE
|
|
Address
|
:
|
15, JALAN PERDANA 9/5, PANDAN PERDANA, CHERAS, 55300 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
A2235281
|
|
New IC No
|
:
|
720501-14-5810
|
|
Date of Birth
|
:
|
01/05/1972
|
|
Nationality
|
:
|
MALAYSIAN INDIAN
|
|
Date of Appointment
|
:
|
25/10/2004
|
DIRECTOR 2
|
Name Of Subject
|
:
|
JIGNESH RAMESHKUMAR JHAVERI
|
|
Address
|
:
|
109-23-3, 1/64D, OFF JALAN PUTRA, BISTARI CONDOMINIUM, 50350 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
Z012926
|
|
Date of Birth
|
:
|
06/01/1973
|
|
Nationality
|
:
|
INDIAN
|
|
Remark
|
:
|
OLD PP:Z1477237
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MS. A MAHESWARY D/O S ARJUNA
|
|
Address
|
:
|
85, LORONG JAYA 9, BANDAR TUN RAZAK, CHERAS, 56000 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
New IC No
|
:
|
660818-10-6180
|
|
Date of Birth
|
:
|
18/08/1966
|
|
Nationality
|
:
|
MALAYSIAN INDIAN
|
|
Date of Appointment
|
:
|
29/09/2001
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
JIGNESH RAMESH KUMAR JHAVERI
|
|
|
Position
|
:
|
EXECUTIVE DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
CHS TAN & CO
|
|
Auditor' Address
|
:
|
PUSAT DAGANGAN PHILEO DAMANSARA 2, BLOCK A, UNIT A8-08, JALAN 16/11,
OFF JALAN DAMANSARA, 8TH FLOOR, 46350 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. M RAMANATHAN S/O S M MEYYAPPAN
|
|
|
IC / PP No
|
:
|
6057502
|
|
|
New IC No
|
:
|
600923-10-6815
|
|
|
Address
|
:
|
15, JALAN DATO ABDUL AZIZ 14/29, 46100 PETALING JAYA, SELANGOR,
MALAYSIA.
|
|
|
Date of Appointment
|
:
|
29/09/2001
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
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 SC
* A check has been conducted in our databank againt 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 databank.
PAYMENT
RECORD
|
|
|
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
20%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
80%
|
|
Import Countries
|
:
|
INDIA,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
|
[
|
|
]
|
|
|
Fair
|
[
|
X
|
]
|
|
Poor
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,CASH
|
|
Type of Customer
|
:
|
END USERS
|
OPERATIONS
|
Goods Traded
|
:
|
|
PRECIOUS STONES, SHAPE OF DIAMONDS
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
LUXURYCONCEPTS WATCHES AND JEWELLERY SDN. BHD.
|
|
PAJAK GADAI THYE FOH SDN BHD
|
|
POH KONG JEWELLERS SDN BHD
|
|
TOMEI CONSOLIDATED BHD
|
|
WOO HING BROTHERS (MALAYA) BHD
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2008
|
2007
|
2006
|
|
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
COMPANY
|
1
|
2
|
1
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading and precious
stones and shape of diamonds.
According to the SC, the SC mainly sells color and decorative stones.
The SC only sells limited quantity diamonds normally based on its customers'
requirements.
The SC concentrates mostly on the attractive color stones.
PROJECTS
No projects found in our databank
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
|
:
|
03-40472768
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
109, 23-3, JALAN PUTRA, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN.
|
|
Current Address
|
:
|
109, 23-3, JALAN PUTRA, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted Mr Jignesh, the SC's Executive Director. He provided us some information
on the SC.
FINANCIAL
COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
2004 - 2006
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2004 - 2006
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
7.76%
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
9.81%
|
]
|
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 management
have been efficient in controlling its operating costs. The unfavourable
return on shareholders' funds and net assets could indicate that the SC's
management was inefficient in utilising its assets to generate returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
55 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
183 Days
|
]
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
198 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 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
|
:
|
Acceptable
|
[
|
0.86 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.10 Times
|
]
|
The SC's liquid ratio was slightly low. This could indicate that the SC's
working capital was slightly deficient. The SC will have to improve its
liquidity position either by obtaining short term financing or increase its paid
up capital so that it can 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 Accessment:
Generally, the
SC's performance has improved with higher turnover and profit. The SC's
liquidity was at an acceptable range. If the SC is able to obtain further
short term financing, it should be able to meet all 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 : FAIR
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 ( MYR Million )
|
80,663
|
99,760
|
108,192
|
99,965
|
99,599
|
|
Government Finance ( MYR 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 ( MYR Billion )
|
254
|
266
|
290
|
-
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
13.84
|
13.63
|
12.91
|
-
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
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
|
-
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
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
|
57,316
|
36,555
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
16,251
|
15,868
|
13,596
|
-
|
-
|
|
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 ( MYR Million )
|
620.3
|
563.7
|
516.5
|
487.3
|
0
|
|
% of Industry Non-Performing Loans
|
1.38
|
1.19
|
1.06
|
1.08
|
0
|
|
|
|
|
|
|
|
|
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 ( MYR 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
|
|
Exported-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 ( MYR 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 ( MYR 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
|
|
Electric, 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 ( MYR 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
|
|
52392 : Retail sale of watches, clocks, jewellery and silverware
|
|
|
|
|
INDUSTRY :
|
TRADING
|
|
|
|
|
|
|
Retail sales in Malaysia are expected to rise by 6.7% in the first half of 2008
to RM40.5million due to the strong consumer confident sentiment. According
to the Retail Group Malaysia, retail sales were up 8.2% in the first half
of 2007 compared to the same period in 2006. The strong retail growth is
attributed to a strong performing economy, urban migration, stable
employment, an expanding population as well as increasing tourist arrivals.
Besides, increased attention by the government on development reforms and
infrastructure would aid economic activity, despite Malaysia's real gross
domestic products (GDP) growth would slow to 4.8% this year.
|
|
It is undeniable that the Visit Malaysia Year is a success by any measure
as the government has extended the VMT to Aug 31, 2008. The opening of new
mega shopping complexes has spurred domestic retail spending and attracted
greater tourist arrivals.
|
|
Malaysian retailers in the country can look forward to another two years of
robust growth, ringing up sales to the tune of RM69.3 billion in 2008 and RM74.88
billion in 2009. In 2008, RGM projects another eight per cent growth due to
the uncertain US economy, which makes it too early to reduce or increase
the projection as the situation is still being observed.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS
|
Incorporated in 2001, as a private limited company, the SC is principally
engaged in the trading and precious stones. The SC also involved in shape of
diamonds. Over the years, the SC has started to stabilise itself in the
market. It should have a moderate clientele base in competing in this
market. With a small paid up capital of RM350,000, the SC may face
difficulties in expanding its business when the needs arise.
|
|
The SC's business operations are predominantly in Malaysia. As such, any
adverse developments in the economic environment and uncertainties in the
local market could adversely affect the business prospects of the SC. As
the SC's products are recognised as luxury products, its business risk in
the market is regarded as high. The SC is a small entity with only 1
employees in the operation. It is led by its executive director and its
management capability is considered average.
|
|
During the financial year 2006, the SC registered a turnover of RM6.69
million, an increase of 26.24% over the previous year. Its pre-tax profit
increased from RM34,775 to RM43,372. However, return on shareholders' funds
of the SC is low, indicating that the SC failed to generate an acceptable
amount of profit based on its shareholders' funds. However, the SC managed
to maintain an adequate liquidity level, indicating that the SC has the
ability to meet its financial obligations. Being a zero geared company, the
SC virtually has no financial risk. The overall financial performance of
the SC is fair.
|
|
We noted that only 20% of the SC's products are sourced locally whilst the
rest are import from overseas market. As an import-oriented company, the SC
faces foreign exchange risk.
|
|
Based on its financial historical data, the SC's payment record is fair.
This may jeopardized the relationship with its suppliers if the SC is
unable to pay them on time. The SC is clear of litigation.
|
|
The industry continues to be attractive with encouraging global and
domestic demand for its products. With the promising outlook of the
industry, the SC should be able to further enhance its business. As a small
entity, the SC is required to adopt more competitive strategies to
strengthen its position in the market.
|
|
In view of the above, we recommend credit be granted to the SC with close
monitoring.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL STATEMENTS
WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
JAL DIAM SDN
BHD
|
|
For The Year
Ended 31-December-2006
|
|
|
|
|
|
|
|
2006
|
2005
|
2004
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
TURNOVER
|
6,693,086
|
5,301,980
|
4,975,033
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
43,372
|
34,775
|
25,354
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
43,372
|
34,775
|
25,354
|
|
Taxation
|
<9,063>
|
<7,036>
|
<5,307>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
34,309
|
------------
27,739
|
------------
20,047
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
34,309
|
------------
27,739
|
------------
20,047
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
34,309
|
------------
27,739
|
------------
20,047
|
|
As previous reported
|
57,883
|
30,144
|
10,097
|
|
|
|
|
|
|
As restated
|
------------
57,883
|
------------
30,144
|
------------
10,097
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
92,192
|
57,883
|
30,144
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
92,192
==========
|
------------
57,883
==========
|
------------
30,144
==========
|
|
RETAINED BY: The Company
|
92,192
|
57,883
|
30,144
|
|
|
|
|
|
|
|
------------
92,192
==========
|
------------
57,883
==========
|
------------
30,144
==========
|
|
|
|
|
|
BALANCE SHEET
|
JAL DIAM SDN
BHD
|
|
As At
31-December-2006
|
|
|
|
|
|
|
|
2006
|
2005
|
2004
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
24,493
|
26,652
|
24,909
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
24,493
|
------------
26,652
|
------------
24,909
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
1,001,497
|
1,044,960
|
1,032,971
|
|
|
|
|
|
|
Trade debtors
|
3,364,024
|
2,331,832
|
1,836,920
|
|
Other debtors, deposits &
prepayments
|
3,750
|
3,750
|
3,750
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
165,828
|
50,138
|
142,101
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
4,535,099
|
------------
3,430,680
|
------------
3,015,742
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
3,628,952
|
2,218,473
|
1,898,085
|
|
Other creditors & accruals
|
22,085
|
17,425
|
13,803
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to director
|
457,300
|
806,515
|
744,724
|
|
Provision for taxation
|
9,063
|
7,036
|
3,895
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
4,117,400
|
------------
3,049,449
|
------------
2,660,507
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
417,699
|
------------
381,231
|
------------
355,235
|
|
TOTAL NET ASSETS
|
------------
442,192
==========
|
------------
407,883
==========
|
------------
380,144
==========
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
350,000
|
350,000
|
350,000
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
350,000
|
------------
350,000
|
------------
350,000
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward
|
92,192
|
57,883
|
30,144
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
92,192
|
------------
57,883
|
------------
30,144
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
442,192
|
------------
407,883
|
------------
380,144
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
|
442,192
|
407,883
|
380,144
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
FINANCIAL RATIOS
|
JAL DIAM SDN
BHD
|
|
As At
31-December-2006
|
|
|
|
|
|
|
|
2006
|
2005
|
2004
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
165,828
|
50,138
|
142,101
|
|
Net Liquid Funds
|
165,828
|
50,138
|
142,101
|
|
Net Liquid Assets
|
<583,798>
|
<663,729>
|
<677,736>
|
|
Net Current Assets/(Liabilities)
|
417,699
|
381,231
|
355,235
|
|
Net Tangible Assets
|
442,192
|
407,883
|
380,144
|
|
Net Monetary Assets
|
<583,798>
|
<663,729>
|
<677,736>
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
0
|
0
|
0
|
|
Total Liabilities
|
4,117,400
|
3,049,449
|
2,660,507
|
|
Total Assets
|
4,559,592
|
3,457,332
|
3,040,651
|
|
Net Assets
|
442,192
|
407,883
|
380,144
|
|
Net Assets Backing
|
442,192
|
407,883
|
380,144
|
|
Shareholders" Funds
|
442,192
|
407,883
|
380,144
|
|
Total Share Capital
|
350,000
|
350,000
|
350,000
|
|
Total Reserves
|
92,192
|
57,883
|
30,144
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0.04
|
0.02
|
0.05
|
|
Liquid Ratio
|
0.86
|
0.78
|
0.75
|
|
Current Ratio
|
1.10
|
1.13
|
1.13
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
55
|
72
|
76
|
|
Debtors Ratio
|
183
|
161
|
135
|
|
Creditors Ratio
|
198
|
153
|
139
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
0
|
|
Liabilities Ratio
|
9.31
|
7.48
|
7.00
|
|
Times Interest Earned Ratio
|
0
|
0
|
0
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
0.65
|
0.66
|
0.51
|
|
Net Profit Margin
|
0.51
|
0.52
|
0.40
|
|
Return On Net Assets
|
9.81
|
8.53
|
6.67
|
|
Return On Capital Employed
|
9.81
|
8.53
|
6.67
|
|
Return On Shareholders'
Funds/Equity
|
7.76
|
6.80
|
5.27
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
